Susan2
TUG Member
- Joined
- Jun 30, 2009
- Messages
- 95
- Reaction score
- 16
- Location
- Buffalo, New York
- Resorts Owned
- Sailfish Yacht Club, Summer Bay Resort, The Houses at Summer Bay, The Jockey Club, Island Links Resort, Grand Palms, Sandy Square (RTU)
Brian, I am NOT surprised that the resort won't take the deed back.
The HOAs are not the developers. They have not developed any way to market the weeks they would take back.
It's much easier just to use strong-arm collection tactics than it is to develop new systems -- and to keep the resort in such condition that it is desirable for new owners to purchase. Renting is one option, but in Florida, I believe a resort might need a real estate license to rent units.
That's legacy resorts, though.
If we're talking about someplace like OLCC, which is in active sales, I find it abhorrent that the resort will not take back weeks. Basically, that means that they are charging tens of thousands of dollars for weeks that they wouldn't take back FOR FREE. I think this is something that should be investigated, frankly.
Furthermore, it wouldn't even be so bad if the resort WOULD foreclose. That would resolve the problem. But many won't foreclose because they don't really want the week back. They have plenty of unsold units. They'd rather use strong-arm collection tactics to get as much in maintenance fees as they can. If they ever run out of new units, THEN they can offer deeds back or foreclose on non-performing units.
IMO it's one of the reasons timeshares are in such trouble.
The HOAs are not the developers. They have not developed any way to market the weeks they would take back.
It's much easier just to use strong-arm collection tactics than it is to develop new systems -- and to keep the resort in such condition that it is desirable for new owners to purchase. Renting is one option, but in Florida, I believe a resort might need a real estate license to rent units.
That's legacy resorts, though.
If we're talking about someplace like OLCC, which is in active sales, I find it abhorrent that the resort will not take back weeks. Basically, that means that they are charging tens of thousands of dollars for weeks that they wouldn't take back FOR FREE. I think this is something that should be investigated, frankly.
Furthermore, it wouldn't even be so bad if the resort WOULD foreclose. That would resolve the problem. But many won't foreclose because they don't really want the week back. They have plenty of unsold units. They'd rather use strong-arm collection tactics to get as much in maintenance fees as they can. If they ever run out of new units, THEN they can offer deeds back or foreclose on non-performing units.
IMO it's one of the reasons timeshares are in such trouble.
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