Mel
TUG Member
If creditors end up taking over some of the bigger projects, we might finally see a change in the way timeshares are sold. Those creditors are not in the business of selling timeshares, and will need to liquidate them quickly - they are not developer, but will have to register as such, or use agents of some sort who are registered to sell those weeks.
Just as banks don't really want to be in the business of renting and selling homes, they also don't want to be in the business of selling timeshares, particularly if they are to be held responsible for the maintenance fees of weeks that remain unsold. It's one thing for the bank to be responsible for the property taxes of a home they forclosed on, a whole other thing to have property taxes plus maintenance fees. While the Banks may want to offer whatever they can to "move" their inventory, they are also not likely to play the same games the developer do regarding "new" weeks being better than resale - the reality is that their inventory is the same as the resale weeks, and perhaps resales will finally compete on an even level.
I suspect we won't see the same types of financing for purchases (the banks don't want to weeks back when the new owners default), and we might see timeshares marketed to those who truly can afford them, rather than developer convincing people they can afford them when they're already stretched to the limit.
Another benefit might come to resorts where most units are sold, but control has not been handed over to the owners. The creditors will not have a vested interest in controling the HOA boards the way some developer do.
I think we are headed into a very promising era in timeshare ownership.
Just as banks don't really want to be in the business of renting and selling homes, they also don't want to be in the business of selling timeshares, particularly if they are to be held responsible for the maintenance fees of weeks that remain unsold. It's one thing for the bank to be responsible for the property taxes of a home they forclosed on, a whole other thing to have property taxes plus maintenance fees. While the Banks may want to offer whatever they can to "move" their inventory, they are also not likely to play the same games the developer do regarding "new" weeks being better than resale - the reality is that their inventory is the same as the resale weeks, and perhaps resales will finally compete on an even level.
I suspect we won't see the same types of financing for purchases (the banks don't want to weeks back when the new owners default), and we might see timeshares marketed to those who truly can afford them, rather than developer convincing people they can afford them when they're already stretched to the limit.
Another benefit might come to resorts where most units are sold, but control has not been handed over to the owners. The creditors will not have a vested interest in controling the HOA boards the way some developer do.
I think we are headed into a very promising era in timeshare ownership.