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Forbes article re: Wyndham timeshare problems

dioxide45

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Much like the mortgage market I am sure that the secondary market for TS loans dried up due to the higher risk involved.
 

BocaBum99

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Here is my favorite line:

She said growing Wyndham's hotel business, particularly internationally, will also help balance. Wilson said customers continue to buy timeshares, despite the struggling economy, though "they have to be coaxed a little bit."
I wonder how much more "coaxing" they do than normal. I am currently at the Wyndham Royal Vista in Pompano Beach and I get a note on my door every day to attend an owner update for $75. I guess they feel a need to do that since I don't answer the phone in the unit.
 

x3 skier

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I wonder if the Coaxing involves the use of firearms. :p

Cheers
 

Aussiedog

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This is the line that I love.....when she is talking about how to continue to access the asset-backed securities market for liquidity.

"pledging a mortgage as collateral for a loan - known as hypothecation."

So, seems to me that the savvy purchaser would require her to place a true market value on that mortgaged timeshare.....maybe she should check TUG classifieds?

Ann
 

dioxide45

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This is the line that I love.....when she is talking about how to continue to access the asset-backed securities market for liquidity.

"pledging a mortgage as collateral for a loan - known as hypothecation."

So, seems to me that the savvy purchaser would require her to place a true market value on that mortgaged timeshare.....maybe she should check TUG classifieds?

Ann
I think it would be rare that a TS mortgagee would be upside down in their TS at least from a developer reselling that unit. If the developer takes a unit in forclosure and resells it they should get back more than the loan amount. However I would think they would buy the unit back at auction and only pay 10% of what it is worth and leave the holder of the mortgage on the hook for the rest. I am sure a holder of those mortgages wouldn't be happy with this arrangment?
 

hunkyleebo

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I was surprised that she 2/3 of their buyers are using their financing. I wonder what interest rates they're paying.

I prefer to buy resale timeshares that are cheap enough that I don't need to finance them!
 

Timeshare Von

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I was surprised that she 2/3 of their buyers are using their financing. I wonder what interest rates they're paying.

I prefer to buy resale timeshares that are cheap enough that I don't need to finance them!
Last TS presentation we did that got that far into the financing discussion, it was 19% . . . that was about 18 mos ago.
 

Cathyb

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Careful Jim :) They may put a trap outside your door to catch you as you leave.
 

vacationhopeful

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Let me call Barbara (the mature lady) and Lisa (the blonde) at the Guest Services for you, Jim.:wave: :wave:
 

massvacationer

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paragraph from the article

interesting article. What does the paragraph (below) from the article mean? That Wyndham might consider spinning-off or selling the timeshare business?

"Wilson said Wyndham is focused on educating the public about the value of its timeshare business. But she said the company would not rule out alternative ownership structures for the segment if shareholder value continues to sink."
 

MaryH

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Well, I think Wyndham has a number of timeshare in places where real estate value are dropping significantly and foreclosure are up. Also if so high a percentage of people are using financing, and maybe got talked into purchase they cannot afford, lots of implications.

In this cycle of dropping real estate prices, tight financing, high forclosures, CC going amok, there must be a significant portion of people that need to let their TS go, get foreclosed on their TS or even declare bankrupcy. All this is not good if Wyndham is using ABCP to offload some of their "mortgages" to unspecting investors in the past who are either losing their shirt or no longer willing to take the risk in this frozen capital market.

I think what they meant is that they might split off their TS into a separate company so that share price would tank on 1 sub/company rather than the whole thing. I think Wyndham is the new umbrella where they put RCI, the Wyndham hotels they purchased, and the Fairfield TSs. The hotels are probably still doing well and RCI is trying to squeeze more $ out of the exchanges and membership fees (full disclosure, I let my RCI membership elapse in Sept and keeping II and SFX Platinum). I think hotel would be the next shoe to drop sometime next year since I know some companies are starting to cut business travel.
 

acesneights

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Not upside down!!!

A WYN FSP points purchase is at the bottom of the Marianas Trench as soon as you can't rescind.

A mortgage holder has worthless collateral that isn't even worth foreclosing on. FSP points are going to PC companies for disposal.

People are paying to rid of the MF obligation.

With the credit markets seized up WYN is probably having to hold the paper on their $200/K sales themselves. When a buyer defaults, they have to write off the paper and then pay to resell the points all over again.

No wonder they want to spin this off.

Auto sales are down 1/3 because buyers can't get financing.

Stan
 
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