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Marriott Newport Coast - OC Tax Auction Sept '19

JoelyTheBear

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Have any of you bought at timeshare at a tax auction? If so, did you hit a surprise snag?

At Marriott's Newport Coast Villas there are 20 weeks that will be auctioned off this September at minimum bids of between $900 and $2,400. These sell for around $8,000-$9,000 on the secondary market. According to the local records, at last year's auction only around 10% of the timeshares attracted any bids at all. So this looks like a great opportunity, except that folks are voting with their feet that it's not.

Looking for the catch, I called Marriott Vacation Club and was told that the winning bidder would be presented with a bill for the prior owner's past due maintenance fees. And no, they wouldn't tell me how much those are for any property I don't already own. Their bill will almost certainly be illegal, because, as the County's site explains, by state law the winning bidder gets a clean new deed from the county, clear of any mortgages or private liens. Still, if Marriott refuses to let me reserve a week until I pay the former owner's debt, I would be looking at needing to win litigation before I could use my "bargain."

What was your experience with a tax lien sale?
 

sfwilshire

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I bought multiple units in the state of TN in my early timeshare years. All past due maintenance fees were waved in those auctions, so I just paid the bid price and reasonable closing costs. All costs were revealed before the auction. I would have to REALLY want one of the units mentioned if there was no way to know what kind of fees I might be ask to pay after the auction.

Sheila
 

sjsharkie

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I've tried buying Disney in FL in the past, so I know HOA liens and other junior liens are not enforceable to the new owner (in most cases ... I would never say "ALL" because there may be corner cases). I'd suspect this would also be the case in CA, but recommend you consult someone more knowledgeable with state law.

Did you clarify as to what mfs these referred to? I could see Marriott stating that they were due 2019 maintenance fees if you were to acquire the property today and it was say deeded for a week 50. Of course, you should be eligible to reserve a similar week per the floating rules of Newport Coast.

As you point out, you may have to get an attorney involved if Marriott insists on trying to collect before allowing usage. I'd suspect this would be relatively small if it can be cleared up with a sternly worded letter, (as compared to the amount you would save), but you should budget for that.

I also will add that you might want to check on who won those auctions. Sometimes Marriott will send a representative to overbid prospective buyers. They would gladly pay off a tax lien for $100 if it means getting the property back at a cheap price, and the remaining bid price goes back to the mortgage lien holder (likely them) and the HOA if they filed a lien. This is what Disney would do at the FL auctions so I gave up.

Good luck.

-ryan
 

emoneybug

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Why do you think the prices vary on the Newport Coast Villas? Isn't there only 2 kinds since it's all 2 bedrooms. It's either Platinum weeks or Gold weeks right? ...Annual MFs will vary but I wonder if they will say how much is each they are auctioning? I'd be interested in picking 1 up in a lower cost tax auction.
 

easyrider

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We have bought two bankruptcy auction timeshares with no problem. I haven't seen a timeshare being auctioned off for taxes so I'm curious who auctions these off. I thought the taxes were part of the mf.

Bill
 

SteelerGal

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Often, the TS Company will pay the past due taxes to buyback the TS. So I doubt that there will be inventory. Last year, there was a discussion regarding SD Auction. TS company or brokers purchased all of the inventory.
 

emoneybug

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I was able to download the TS list from the OC website. Over 50 at DanaPoint/San Clemente, most of those probably better off finding a $1 giveaway with free closing, etc. The Marriott Newport Coast section is $900-$3100. The minimum bid is supposed to be back taxes so at ~$100 per year and all these listings owe 5-7 years worth, not sure how they come up with the various price points??? Wish we had an OC Tax insider. I may bid on 1 just to see if I get outbid on everything. Although I really do want a platinum week vs gold :)
 

emoneybug

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OC Timeshare Auction is today
 

emoneybug

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I'm sure it's Marriott Corp buying back from OC Timeshare auction but if there are normal "joes" bidding, I'm thinking they are crazy. The 1st batch of about 8 Newport Coast went for $8K Each. You can't tell if it's Gold or Platinum!!!

Next batch of about 10 is heading towards $8k as well, with 4 currently at around $4k.

Not sure what these buyers are thinking if you wind up getting a Gold floating week, which last ebay closed at $2900. SMH.
 

BocaBoy

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Not in CA. They are separate bill you get each year from the county.
Thy are not part of the maintenance fee anywhere, but in all states except California the taxes are billed to the owner in a combined bill with the amount of the taxes clearly spelled out. We all speak of the combined bill as the maintenance fee, but that is not technically correct.
 
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