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Maintenance Fee Question

00don

newbie
Joined
Oct 17, 2008
Messages
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Location
Fremont, CA
I just recieved my yearly maintenance fee invoice and the amount has gone up 6% (Grandview, Las Vegas, NV). When I called, I was told the information I anticipated (higher costs of water, utilities, etc.) but then the woman explained that one of the biggest drivers was loan defaults. She explained that it takes about three years to foreclose and that the costs continue to rise.

I have gone through my paperwork (again) and can find nothing about having to cover bad underwriting by the developer/seller of units although there is a generally broad statement about "fees."

I'm guessing that I'm stuck but has anyone ever researched whether or not the developer can pass along their bad loan decisions to the various owners of the timeshares? In the current economy, I can see numerous defaults in the future and, if allowed to continue, we end up subsidizing poor lending decisions by the developer/builder.
 

AwayWeGo

TUG Review Crew: Expert
TUG Member
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Jun 6, 2005
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Location
McLean (Fairfax County), Virginia, USA.
Resorts Owned
Grandview At Las Vegas

[triennial - points]
Collecting Every Dollar Owed Is Essential To The Timeshare's Financial Health.

The defaults that are raising your timeshare fees might well be other owners' delinquent maintenance fee payments that are owed to the timeshare homeowner association. That is, not all defaults are people walking away from the loans they took out to buy their timeshare units in the 1st place, which are owed to the timeshare company rather than to the HOA -- although if people are stiffing the timeshare company on loan payments then it's safe to assume they're also stiffing the homeowner association on annual fees.

I shed no tears for the timeshare companies' financial struggles. The financial well-being of my timeshare HOA, however, is a matter of personal concern.

Some timeshare resort HOAs are controlled by the timeshare company. Others are managed independently by owner-controlled HOAs, which look out strictly for the interests of us regular walking-around timeshare owners rather than looking out for the bottom line of the timeshare company.

Click here for a recent TUG-BBS rant on the subject of timeshare collections, foreclosures, etc.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​
 

Jya-Ning

TUG Member
Joined
Jul 15, 2005
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Location
DC Suburban
No, they can not pass it. However, when it default, it means there will be one less owner pays MF, so the exiting owner has to cover it. Ask resort or your HOA what kind of method they plan to recoup some of these lossing money. Maybe you can have all these foreclosed week into a drawing for those who paid.

Jya-Ning
 
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