Resorts take owner to court after 9 years of non payment

[Fredflintstone]

Instead of trying to figure out how someone can walk away from a timeshare without ruining their credit, or weasel on the amount owed due to statutes, how about the owner just contact the Association and negotiate a deed back for a fee to cover the cost of preparation and recordation. Geez, when a timeshare owner defaults, the other owners have to cover the delinquency and eventually the cost of foreclosure by the Association. After owning 2 timeshares for 20 years, is it right to recommend she just default and stick her fellow owners with the cost?

Not knowing her entire situation, I suspect she has already defaulted after 9 years of non payment. My guess is this unit has already been rented out and the rental income was pocketed by the Association.

Lawsuit after 9 years? I’m guessing there is more to this story that was not shared to us.

1. Perhaps this person received a threatening letter from a law firm?
2. Could this suit be from a debt buyer? If that’s the case, she should research the laws pertaining to FDCPA and seek legal advice.

Either way, legal advice is highly recommended. I find sometimes folks come here wanting us to tell them what they should do with selective details. IMO, that’s not what TUG is about. Sometimes, we do share general legal information that may or may not apply to their situation...and each situation is unique.




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[Fredflintstone]

Instead of trying to figure out how someone can walk away from a timeshare without ruining their credit, or weasel on the amount owed due to statutes, how about the owner just contact the Association and negotiate a deed back for a fee to cover the cost of preparation and recordation. Geez, when a timeshare owner defaults, the other owners have to cover the delinquency and eventually the cost of foreclosure by the Association. After owning 2 timeshares for 20 years, is it right to recommend she just default and stick her fellow owners with the cost?

I can share my personal situation that may or may not be helpful. I had 9 timeshares with 9 different resorts. On 8 of them, I was able to resell them for a dollar and I paid the closing costs.

On the 9th timeshare, I could not sell it. I tried for 2 years. The timeshare was in Florida. I contacted the resort to negotiate a deed back and they refused. So, I stop payment. For 2 years they wrote threatening letters demanding payment. After 2 years, I received a certified letter from a law firm stating they will exercise non judicial, anti deficiency judgement foreclosure. I did not reply as that was what I wanted to happen. So, I, in no way disputed what the law firm was going to do. Within 4 months, the non judicial foreclosure happened with anti deficiency judgement. I should say I owed nothing on the timeshare except MF. There was no effect on my credit and that could have been because I do not have a US Credit file.

Did I want to foreclose? It was the last option.

Did I try hard to rid the timeshare through other methods? Absolutely.

If there would have been a deed back program, I would have certainly taken that option.

Was I prepared to fight for my legal rights if needed? Yes.

Were the resorts trying to get me to forfeit my right to non judicial, anti deficiency judgement by objecting? Their letters certainly indicated that.

What’s the chances of me being sued in the future? Zero.

This is because I look before I leap.




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[skimeup]

I owna week at the Hyatt Residence Club ts in Carmel. Does California law apply or is it different with points based timeshares that are incorporated - well, who knows where? Depends on the ts company? E.g., I own with Royal Holiday and I'm pretty sure they are actually incorporated in Mexico... Hyatt is now managed by Marriott "Bon Voy". How does this sort out? Not that I want to get out, but I'm curious for when I do...

 

[CalGalTraveler]

Is it deeded? If so Calif law applies. IMHO you will be able to sell or give Carmel away as that property is valued.

 

[SueDonJ]

I owna week at the Hyatt Residence Club ts in Carmel. Does California law apply or is it different with points based timeshares that are incorporated - well, who knows where? Depends on the ts company? E.g., I own with Royal Holiday and I'm pretty sure they are actually incorporated in Mexico... Hyatt is now managed by Marriott "Bon Voy". How does this sort out? Not that I want to get out, but I'm curious for when I do...

This might be a useless post because it doesn't answer your question about which laws will apply to your situation, but just in case the matter of management does come into play ...

It's very confusing after so many acquisitions between the various companies but, no timeshare can be managed by Marriott Bonvoy. Bonvoy is the new name for the Marriott, Int'l hotel company's loyalty program (formerly Marriott Rewards) through which the timeshares that come under the Marriott Vacations Worldwide timeshare company umbrella can be affiliated. Following MVW's acquisition of Interval Leisure Group, Hyatt is one of the timeshare companies under the MVW umbrella. (For what it's worth, of all the timeshare brands that come under it Hyatt is the one that's been least impacted in day-to-day operations so far. It's assumed that's because there are legal issues of branding, etc rights that are apparently difficult to work through.)

 

[Ima Timesharer]

I will be as brief as possible. My sister has a unit at Ocean Villas Beach & Racquet Club in Myrtle Beach. I gave her the unit over 20 years ago. She decided she didn't want to travel there anymore because of the condition of the condo, so she stopped paying the fees in 2009. She is now being sued for non payment of the fees. She also has the same problem with Shawnee in the Poconos, which she got on Ebay for $1 about 20 years ago as well. Is there a statue of limitation when it comes to non payment of the fees? She thought everything was ok all these years, but now this is not the case. Both of these places have gone down tremendously over the years. My sister thinks that she can submit a Quit Claim Deed now and be free of both resorts. Is this information correct?

Are you SURE she's being sued. Have someone very knowledgeable take a look at what she has received. My guess is that the timeshare company, having received nothing for nine years, has SOLD the dept to a collection agency for pennies on the dollar. These collection agencies can buy millions of dollars of debt for a few thousand dollars. That way the timeshare get something -- not much, but something, and they can get the debt off their books. Then the collection agency just sends out thousands of threatening letters to the delinquent folks, which costs them another couple thousand dollars. Then if 1 or 2 percent of the scared, delinquent folks cave in and pay the debt, the collection agency has made their costs back, plus a tidy profit. If the timeshare company was serious about collecting this debt, they'd have taken action years ago.

 

[bogey21]

Either way, legal advice is highly recommended.

Why pay a lawyer. Just do nothing and let the chips fall where they may...

George

 

[Resort Guy]

From a resort or management perspective I have to take exception to the part where she simply stopped paying and "thought everything was fine." If I were to simply stop paying any of my bills I know that that surely will not end without consequence. In the end she left the other owners in good standing to pay her portion of the commitment she made to pay annual dues when she purchased. I can guarantee that the resort probably spent countless hours trying to contact her and she obviously just ignored them until the threat of some type of legal action finally got her attention. She, and anyone else in this position, should try to contact the resort FIRST to resolve the situation. Good management knows that if she can't (or won't) pay they are better off bringing the interval in and trying to resell or rent it out. Until it is returned to the association, any rental proceeds should be credited to her delinquent balance. After such a long time, good management should also do everything to reconcile their ownership roster (especially if it is deeded property) and sometimes it takes a strong armed approach to get someone to simply respond to their communications. At my resort, we would offer the option of simply signing the deed back to the association at no cost rather than prolonging this any more. I would suggest that she contact the resort and offer to simply return the interval and fade off into the sunset. If the resort doesn't want to play ball so be it.

 

[Fredflintstone]

From a resort or management perspective I have to take exception to the part where she simply stopped paying and "thought everything was fine." If I were to simply stop paying any of my bills I know that that surely will not end without consequence. In the end she left the other owners in good standing to pay her portion of the commitment she made to pay annual dues when she purchased. I can guarantee that the resort probably spent countless hours trying to contact her and she obviously just ignored them until the threat of some type of legal action finally got her attention. She, and anyone else in this position, should try to contact the resort FIRST to resolve the situation. Good management knows that if she can't (or won't) pay they are better off bringing the interval in and trying to resell or rent it out. Until it is returned to the association, any rental proceeds should be credited to her delinquent balance. After such a long time, good management should also do everything to reconcile their ownership roster (especially if it is deeded property) and sometimes it takes a strong armed approach to get someone to simply respond to their communications. At my resort, we would offer the option of simply signing the deed back to the association at no cost rather than prolonging this any more. I would suggest that she contact the resort and offer to simply return the interval and fade off into the sunset. If the resort doesn't want to play ball so be it.

I must applaud your resort for offering deedbacks. You folks are certainly part of the solution by offering that.


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[keith]

Thanks for all the details, Grammarhero.

Would you have any info for properties which are not paid maintenance fees in Tenerife (Canary Islands) for extended periods? I think ownership is in Island of Manx, EU based. Maintenance fees for Colonial Village and Island Village Heights in Tenerife haven't paid for almost 10 years, as well.

 

[LannyPC]

At my resort, we would offer the option of simply signing the deed back to the association at no cost rather than prolonging this any more. I would suggest that she contact the resort and offer to simply return the interval and fade off into the sunset.

Yes, that is a very prudent move. That's good that the association is offering to deed back at no cost. Some resorts and TS companies are charging closing costs, the next MF, and/or a fee (eg., Diamond about $250 when I last checked). This saves the resort and association the troubles and expense of foreclosing which is what eventually happens when they stubbornly refuse to take back intervals from disgruntled owners.

 

[DrQ]

The big question is if her sister is being sued, WHO is the plaintiff? If it is an original creditor, then you need to proceed carefully. If it is a junk debt buyer, you still have to react, but the task is much easier to prevail as they are usually looking for a default judgement.

Tell the sister to search with the county clerk to see if a petition has been filed. If so, that will name the players. If it is a junk debt buyer, find a pit bull attorney that has experience confronting these bottom feeders in court.

This is based on my experience and should not be considered legal advice. Please consult a qualified representative before proceeding.