Foreclosure question

[frostyflorida]

Has anyone heard of HGV filing a foreclosure on a paid off timeshare simply based on unpaid dues?

 

[Tamaradarann]

Has anyone heard of HGV filing a foreclosure on a paid off timeshare simply based on unpaid dues?

First of all lets make clear what you mean by unpaid dues. Do you mean unpaid annual maintenance on the unit(s) that are owned or do you just mean the club annual dues? Assuming you mean the unpaid annual maintenance let understand what the implications are for an owner not paying their maintenance. The annual maintenance is the timeshare units share of the cost of running the timeshare resort. When an owner does not pay their annual maintenance the other timeshare owners of that resort that are paying their maintenance must make up gor the shortfall with higher maintenance costs.

Now to answer your question. The Developer or the HOA of the resort now must do something to stop that from happening year after year. Foreclosure is one of the ways that the Developer or HOA can do that. I have suggested, as HGVC has been doing, that the Developer or HOA of all timeshares do Voluntary Deedbacks to allow owners to give back their timeshare ownership rather than stop paying their maintenance to avoid having the other maintenance paying owners having their maintenance go up do to the delinquent owners. However, ultimately if timeshare owners continues to own the timshare and stops paying their maintenance the developer or HOA must go the foreclosure route if nothing else works for the good of the other owners.

 

[frostyflorida]

First of all lets make clear what you mean by unpaid dues. Do you mean unpaid annual maintenance on the unit(s) that are owned or do you just mean the club annual dues? Assuming you mean the unpaid annual maintenance let understand what the implications are for an owner not paying their maintenance. The annual maintenance is the timeshare units share of the cost of running the timeshare resort. When an owner does not pay their annual maintenance the other timeshare owners of that resort that are paying their maintenance must make up gor the shortfall with higher maintenance costs.

Now to answer your question. The Developer or the HOA of the resort now must do something to stop that from happening year after year. Foreclosure is one of the ways that the Developer or HOA can do that. I have suggested, as HGVC has been doing, that the Developer or HOA of all timeshares do Voluntary Deedbacks to allow owners to give back their timeshare ownership rather than stop paying their maintenance to avoid having the other maintenance paying owners having their maintenance go up do to the delinquent owners. However, ultimately if timeshare owners continues to own the timshare and stops paying their maintenance the developer or HOA must go the foreclosure route if nothing else works for the good of the other owners.

So does anyone know of an instance where HGV filed a foreclosure on someone for being $1000. behind on their timeshare?

 

[1Kflyerguy]

I don't have any direct experience, but since there is effort and expense involved with filing a foreclosure, I am highly doubtful that the resort HOA would foreclose if you only behind by $1000. I am guessing that is a single year of maintenance fees? They will begin sending notices, perhaps even threatening notices but I would expect it to be months and possibly several years before they actually foreclose.

Do you have a loan on the timeshare, are you current on that? The lender might move faster than an HOA.

 

[dblezard]

There are various fees that they will tack on if annual maintenance charges are not paid by whatever deadlines. I have seen late fees, lockout fees, collection fees, and finance charges on an estoppel.

 

[Tamaradarann]

So does anyone know of an instance where HGV filed a foreclosure on someone for being $1000. behind on their timeshare?

I don't know of an instance and most probably HGV would not foreclose on someone for being just $1000 behind on their timeshare. Is that it? After being $1000 behind then all future fees and maintenance are being paid?

My previous answer, which you didn't address, explained the bigger picture that effects all owners of timeshares. This answer addresses your specific question. A $1000 delinquency is relatively minor and can be absorbed by the Timeshare Association Budget. However, numbers of thousands of dollars over many years is the real issue that needs to be addressed.

 

[SmithOp]

We know they block your ability to make reservations if you fail to pay annual dues, then they turn the debt over to collections before foreclosure.

Is this for dues not paid last January 2024 or are you considering it for 2025?