Special Warranty Deed - "take back offer" by my resort

[eggshellmagic]

I have owned a timeshare at an Alabama resort for 14 years. The resort has been in physical/financial decline since 2014. Today I received a letter from the resort's attorneys stating the financial distress and giving all owners one of two options: (1) pay into the Association $2400 plus anticipated assessments stated above in sufficient amounts to properly fund the Association and the repairs to the Condominium; or (2) walk away by deeding your Unit Week(s) to the Association, which will terminate any financial obligation.

Of course, option 2 will be the one I choose. My question is, what is the Board of Directors motivation to allow all owners the option to "give back" their deed? My guess is the property will be sold, leveled, and a few will profit greatly. Has anyone experienced this type of offer? If so, what was the outcome for the resort?

 

[Ski-Dad]

Your speculation is likely bang on. This will get redeveloped as a condo or hotel and sold.

You may wish to write back and ask for copies of the board minutes laying out these decisions. Also ask the attorney whether they represent the HOA.

 

[dioxide45]

There might be a developer behind the scenes that is looking to acquire the property. Of course by taking back deeds, it will increase the residual payouts of owners that don't give back. In many of these cases I think the BOD thinks that by assessing some HUGE fee will get most owners to deed back. I don't know why they don't just send out a proxy asking owners if they want to dissolve the timeshare. I suspect it is so they can consolidate ownership under just a few people and those people get more out of it when the residuals are paid out.