Foreclosure experience - summer 2020

[boraxo]

I thought I would post our experience as it may be helpful to others.

In August 2020 we contacted a broker to represent us at foreclosure auction for a number of HHS units including numerous Bronze, Silver and Gold weeks. Would have attended in person but the prospect of waiting on the courthouse steps in Reno inhaling smoke from nearby forest fires was not appealing. The process is a bit of a PITA as you have to use cashier's cheques for everything.

Anyway, when the auction commenced, Marriott proceeded to outbid everyone for the Gold weeks and also for the sole Platinum week. There is no point in trying to compete with Marriott so we didn't even try. What was even worse was that Marriott did not bid on any of the Bronze or Silver weeks, so they revert to the HOA which is now saddled with units that are not paying annual fees. Very sleazy IMO for Marriott to buy the good weeks (presumably to remove from trade inventory and add to the points program) but pass on the undesirable weeks.

Anyway, we proceeded to buy another unit in a private sale through our broker, which ended up costing about $2k more. However I delayed this post as I did not want to tip Marriott to exercise ROFR on the resale unit (they declined). Apparently prime foreclosures are too good for Marriott to pass up, but not resales.

 

[geist1223]

Marriott is a business not a charity.

 

[bogey21]

Very sleazy IMO for Marriott to buy the good weeks (presumably to remove from trade inventory and add to the points program) but pass on the undesirable weeks.

I have my issues with Marriott but this is not one of them. I don't consider what the did sleazy at all. They have a business to run and an obligation to run it to benefit their stockholders...

George

 

[simpsontruckdriver]

That is also how the deed give-back programs benefit the timeshare. They take back the week from one owner for nothing, they turn around and sell it to an unsuspecting buyer for tens-of-thousands in pure profit. In Marriott's case, they buy high-demand weeks for cheap and sell for enormous profit.

TS

 

[bdh]

Marriott to buy the good weeks (presumably to remove from trade inventory and add to the points program) but pass on the undesirable weeks.

Since Hyatt no longer sells weeks, every deeded week that Hyatt/Marriott buys via the foreclosure or ROFR process will be transferred to the Hyatt Trust and deposited into the Points Program.

Depending on the property/location, Hyatt/Marriott will buy non-prime weeks. IE: The more desirable the location, the more they'll buy the non-prime weeks. FWIW: At select Hyatt properties, Hyatt/Marriott extended a proposal in late 2019 to buy all of the select HOA's foreclosed units.

 

[boraxo]

I am updating this post to note another foreclosure sale at this property that will occur this week in Reno. As with the last sale, the bulk of the list are Silver and Bronze weeks though there are a couple of Plat summer weeks. I did not bother to go through the considerable trouble for our broker to place bids given the outcome last time where Hyatt bought back all of the Gold and Plat weeks. Will update.

 

[PerryKing]

So did Marriott show up to get just the few available units? and did they ?