Special Assessment of $14,498.45!

[TUGBrian]

thank you for digging into this as an owner, I too look forward to their answers to your questions!

 

[DA_*]

I'm an owner at the Reno Spa Resort also. I purchased a 1 BR unit in 1993 and have always exchanged through RCI. My family has enjoyed many wonderful vacations over the years.
When I received/read the letter I thought this was some sort of scam. I called Legacy Vacations and was informed it was not a scam. And then the person attempted to tell me all about the options. When I stated I wanted to speak to my attorney first I was informed that I had until May 15, to either pay the fee or choose one of the alternatives or the account would be turned over to collections. WHAT???!!! I have filed a complaint with Nevada Attorney General Real Estate Division and waiting for a response.
I e-mailed Legacy Vacation Resorts this morning to request details to the alternatives offered - I want something in writing - and received a e-mail back stating my "request would be responded to in the order it was received but if I needed immediate assistance call... "
I consulted an attorney and was advised to call the developer and "be sympathetic" to the delima but firmly demand detailed accounting for the special assessment fee with an explanation of how the bad debt has gone from $2,461,928 to $58,121,437 in just 8 months! And try to negotiate a reasonable solution. Make notes of the conversation and follow up with an e-mail outlining the conversation and request confirmation within 24 hours that my understanding of the accounting and alternatives offered is correct.
I also messaged ARDA-ROC and advised them of this situation.
I plan to call Legacy in the morning. Wish me luck. Will let you all know how that goes...

 

[TUGBrian]

just took a gander at google maps for this resort and while im no land developer, this property and location dont appear to be ultra desirable from a "sell it to turn into a casino" point of view? nor does it sit on a large sprawling lot that would be worth more as bare dirt to turn into housing than a resort?

 

[bnoble]

Two things can be true at the same time:

1: The developer-controlled Board is pulling a fast one to get as many deeds into their hands as possible to simplify closing the resort and selling the plot off to someone who is going to build a bunch of apartments or condos.

2: This is a gold-plated gift to owners of a failing resort, where the timeshare weeks are less-than-worthless. $500 is probably the cheapest way to get out of this, and it is probably not close.

I would pay the $500 and not look back. You'll spend (much) more than that on lawyer time to contest it. Even though it is not "fair", taking the deed back option is almost certainly the best one in front of you.

 

[bizaro86]

I actually think $14k might be a reasonable guess at how much needs to be paid per paying owner here.

Once you have a few thousand per remaining owner of bad debt, you've entered a death spiral.

This TS was already worth $0 per unit. If you made a more reasonable special assessment to deal with the bad debt, say like $2000 per unit, almost nobody would pay it. Then the remaining owners who do pay it get another bill to cover the new humungous bad debt. You can reasonably estimate that most will not pay and so the amount needs to be larger.

Now, I agree with everyone who says insiders are probably going to shut down the resort and sell it once everyone leaves. But they'll need to pay the $14k on their units to remain in good standing.

Personally I don't think putting in $14k to maybe get slightly more at some indeterminate future time is a good bet. I'd pay the $500 to be out and be happy.

If you still want a TS for trading you can get a better one than this for free - look at the $500 as an upgrade fee and be happy. This isn't oceanfront land or something like that where the underlying property is hugely valuable.

 

[DA_*]

I'm an owner at the Reno Spa Resort also. I purchased a 1 BR unit in 1993 and have always exchanged through RCI. My family has enjoyed many wonderful vacations over the years.
When I received/read the letter I thought this was some sort of scam. I called Legacy Vacations and was informed it was not a scam. And then the person attempted to tell me all about the options. When I stated I wanted to speak to my attorney first I was informed that I had until May 15, to either pay the fee or choose one of the alternatives or the account would be turned over to collections. WHAT???!!! I have filed a complaint with Nevada Attorney General Real Estate Division and waiting for a response.
I e-mailed Legacy Vacation Resorts this morning to request details to the alternatives offered - I want something in writing - and received a e-mail back stating my "request would be responded to in the order it was received but if I needed immediate assistance call... "
I consulted an attorney and was advised to call the developer and "be sympathetic" to the delima but firmly demand detailed accounting for the special assessment fee with an explanation of how the bad debt has gone from $2,461,928 to $58,121,437 in just 8 months! And try to negotiate a reasonable solution. Make notes of the conversation and follow up with an e-mail outlining the conversation and request confirmation within 24 hours that my understanding of the accounting and alternatives offered is correct.
I also messaged ARDA-ROC and advised them of this situation.
I plan to call Legacy in the morning. Wish me luck. Will let you all know how that goes...

delima = dilemma Sheesh how did I miss that? Anyway, just came back here to get some of the questions asked by another poster, colmfmurphy, to add to my question list. Psyching myself up to make the call.

 

[TUGBrian]

have now received confirmation that the surrender fee is $1500, vs the originally reported $500

Legacy Vacation Resort ("LVR") has no obligation to accept the ownership back and only accepts it if the HOA terms and conditions are fully met. The terms and conditions are approval of a one-time termination payment (via credit card), and a fully executed Deed drafted and recorded solely by LVR. Please note that LVR does not accept third-party terminations as the request only pertains to an agreement between your HOA and title holder(s). The termination process can take approximately 2 to 3 weeks.

The termination fee is $1,500.00 and is valid until 05/15/2025. After May 15, 2025, the termination fee is subject to change without notice, and your account may be subject to being placed with a third-party collection agency for the Special Assessment.

If you have additional questions or would like to proceed with the release request, please contact Legacy Vacation Resorts-Title Services at 1-866-905-8808.

 

[theo]

have now received confirmation that the surrender fee is $1500, vs the originally reported $500

The $1.5k figure is still less money than fellow bandits Westgate and Capital Vacations routinely charge to accept deedbacks. Pricey, but maybe something to at least consider in order to quickly, cleanly and legally escape a situation that is plainly already “circling the drain”.

On the other hand, just telling Legacy Vacation Club to “go pound sand” is also an option and frankly, the option that I would choose if I found myself in this situation. Foreclosure will inevitably follow, but the place is clearly going down the drain anyhow. No really good choices remain for Reno Spa / LVC owners.

 

[ATriplett1983]

Reno Spa Owner here. Most incredible thing I have ever seen. Bought my timeshare as a foreclosure 15 years ago. I currently get 200k pts a year with RCI. I travel multiple times a year with this timeshare. I also received the letter about special assessment. I called Legacy and they originally said $500 for deedback. I got an email from them with all the details and now its $1500
They also give you the option to convert to club points but only offering me 50k pts. Why the hell would I go from 200k pts a year to 50k and pay more.
This is criminal activity. I want to keep my yearly pts. No way I pay that special assessment.

 

[DA_*]

just took a gander at google maps for this resort and while im no land developer, this property and location dont appear to be ultra desirable from a "sell it to turn into a casino" point of view? nor does it sit on a large sprawling lot that would be worth more as bare dirt to turn into housing than a resort?

I live in Reno - this property is actually very close to downtown about two blocks and the Truckee River about one block away. The lot the property sits is as you say not so desirable. However, the entire block would be - there are several old refurbished apartments, a few small bars, a couple of old houses and an empty lot. There is a hotel/casino resort nearby that is expanding and while Reno Spa is about four blocks away, one of the artists' rendering for this resort looks very much like the Reno Spa property. I have not found anything specific, but the rendering looked so familiar that I tried looking for a connection.
A little back history - in August 2024 I paid the $806 annual maintenance fee (interesting that the original poster also has a 1 bedroom unit and their mf was $783) and I spacebanked the week with RCI. About two weeks later I received a notice from RCI saying they are refunding me the week because Reno spa no longer met their quality standards. I called/e-mailed Legacy Vacations several times and was given a week from one of their other properties to spacebank and was assured that they were working with Reno Spa to correct the deficiencies. I guess I should have seen this "Special" assessment coming. UGG!

 

[bnoble]

have now received confirmation that the surrender fee is $1500, vs the originally reported $500

That's getting close to "you'll have to take it by foreclosure" territory for me.

 

[TUGBrian]

agreed, if it were me in this situation id respond saying they could take it for free, but id not be interested in paying 1500, or 15000.

 

[sithrebel15]

I live in Reno - this property is actually very close to downtown about two blocks and the Truckee River about one block away. The lot the property sits is as you say not so desirable. However, the entire block would be - there are several old refurbished apartments, a few small bars, a couple of old houses and an empty lot. There is a hotel/casino resort nearby that is expanding and while Reno Spa is about four blocks away, one of the artists' rendering for this resort looks very much like the Reno Spa property. I have not found anything specific, but the rendering looked so familiar that I tried looking for a connection.
A little back history - in August 2024 I paid the $806 annual maintenance fee (interesting that the original poster also has a 1 bedroom unit and their mf was $783) and I spacebanked the week with RCI. About two weeks later I received a notice from RCI saying they are refunding me the week because Reno spa no longer met their quality standards. I called/e-mailed Legacy Vacations several times and was given a week from one of their other properties to spacebank and was assured that they were working with Reno Spa to correct the deficiencies. I guess I should have seen this "Special" assessment coming. UGG!

I can't really see the J expanding across the river, they have a ton of unused land still. My best guess would be a slapdash coat of paint, cheap LVP and fake granite, then renting it as "luxury" apartments for twice what they're actually worth.

 

[colmfmurphy]

agreed, if it were me in this situation id respond saying they could take it for free, but id not be interested in paying 1500, or 15000.

That might mean they'd probably go the collections route... That's a major pain to deal with...

 

[wswanliz]

I spoke to a Reno Legacy representative today and I received this followup response. You can also convert to a RCI points option for about $1250/year where you receive so many RCI points per year.

Written response:
In our conversation we spoke regarding terminating the account for the Termination fee of $1,500.00 valid until May 15, 2025. If no decision is made by the deadline the account will be outsourced to a 3rd party collection agency.

For your request of the meeting minutes and other information regarding the assessment please send a written signed request to this address: ATT: Legal Dept. PO BOX 690999, ORLANDO FL 32869-0999.

 

[Fido Chuckwagon]

have now received confirmation that the surrender fee is $1500, vs the originally reported $500

lol, greedy and dumb. Most owners will just do nothing and force the HOA to pay for foreclosure. $500 and most owners probably would have paid, and the $500 certainly would have covered the deed prep etc. costs.

 

[gravityrules]

I spoke to a Reno Legacy representative today and I received this followup response. You can also convert to a RCI points option for about $1250/year where you receive so many RCI points per year.

Written response:
In our conversation we spoke regarding terminating the account for the Termination fee of $1,500.00 valid until May 15, 2025. If no decision is made by the deadline the account will be outsourced to a 3rd party collection agency.

For your request of the meeting minutes and other information regarding the assessment please send a written signed request to this address: ATT: Legal Dept. PO BOX 690999, ORLANDO FL 32869-0999.

I assume the RCI points account would be for some other Legacy property? Don't see how it could be tied to this property. And how many RCI points, associated with what property for $1250/yr? Going to be tough to be competitive with give away Grandview ownerships in the RCI points world.

 

[wswanliz]

I have asked Legacy for more information. The RCI points option would be:
$1229 for 35K Legacy points or 42K RCI points
$1281 for $45K Legacy points or 54K RCI points
RCI membership is included in price

 

[HappyRon]

The irony is that they call it a "special" assessment. Nothing special about it.

 

[colmfmurphy]

I have asked Legacy for more information. The RCI points option would be:
$1229 for 35K Legacy points or 42K RCI points
$1281 for $45K Legacy points or 54K RCI points
RCI membership is included in price

I have asked Legacy for more information. The RCI points option would be:
$1229 for 35K Legacy points or 42K RCI points
$1281 for $45K Legacy points or 54K RCI points
RCI membership is included in price

I wonder what are they offering for the week(s) we already own?
I'll also look into what I can get at Vidanta for those points...

I'm debating ignoring everything and make them spend more $$ to chase us...

 

[TolmiePeak]

That might mean they'd probably go the collections route... That's a major pain to deal with...

How is it a pain? I never answer the phone and throw away most of my mail when I look at it a couple of times per month. What would they actually do?

 

[HudsHut]

@wswanliz
Welcome to TUG:

Do not give their offer another thought. Even if you enjoyed the resort, it is quite possibly one of the worst timeshare values around. Do not give them another red cent. Walk away.

The 3 - 4 Reno timeshares are ALWAYS on clearance (low priced cash rental).
RCI calls these specials "Last Call"
Interval International call them "Getaways" and they also offer the low demand weeks via their Accommodation Certificates" that gets a week for around $400

---
If you want an RCI Points account, there are TUG Members who will guide you to accounts with the best number of points to maintenance fee ratios.

 

[theo]

I'm debating ignoring everything and make them spend more $$ to chase us...

They likely won't bother "chasing" you at all, beyond maybe having a powerless third party collection entity make a few lame phone calls in an attempt to browbeat you.

They will ultimately just foreclose and recover the ownership --- which would certainly seem to be their actual (albeit unstated) objective in the first place.

 

[ATriplett1983]

@wswanliz
Welcome to TUG:

Do not give their offer another thought. Even if you enjoyed the resort, it is quite possibly one of the worst timeshare values around. Do not give them another red cent. Walk away.

The 3 - 4 Reno timeshares are ALWAYS on clearance (low priced cash rental).
RCI calls these specials "Last Call"
Interval International call them "Getaways" and they also offer the low demand weeks via their Accommodation Certificates" that gets a week for around $400

---
If you want an RCI Points account, there are TUG Members who will guide you to accounts with the best number of points to maintenance fee ratios.

I would like more info on RCI points account so I can keep using them. I currently get 200k pts a year. What do you suggest? Thanks

 

[Jazdddy]

my friendswho own apartment in FL were recently telling me about these huge assements of old building 175k assement it reminds me of this thread - just crazy where don’t share the profits imo