Stop paying maintenance fees [Waterside by Spinnaker Resorts on Hilton Head Island]

[Kira]

I own (payed off, no mortgage) a 1 bd. 1 bath timeshare at Waterside by Spinnaker Resorts on Hilton Head Island. It's an even year deeded property. I have owned it for approximately 18 years. I have no use for it anymore and was wondering what would happen if I just decided to stop paying the maintenance fees?

 

[dioxide45]

Have you tried giving the timeshare away first?

 

[Kira]

No. I am going to check with the resort next week to see if they have a deed back program. We are willing to give it away, but i am sure there will be fees associated with both of those options.

 

[dioxide45]

No. I am going to check with the resort next week to see if they have a deed back program. We are willing to give it away, but i am sure there will be fees associated with both of those options.

When you talk with the resort you need to ask about transfer fees and costs. There will be closing costs, but they may be somewhat minimal (under $500). There may also be a fee to deed back. Generally for a paid off timeshare, defaulting will have zero ramifications. There is always a chance that you could get a hit on your credit, but that chance is low. It may also drag on for years if the HOA isn't actively foreclosing on defaulted weeks. The main thing that will happen if you stop paying is that the bad debt you create gets passed on to the other owners that keep paying.

 

[TUGBrian]

spinnaker has been reported to take back weeks, never hurts to ask first!

yes its likely to have a fee involved.

as for stopping payment, it really all depends: https://tug2.net/timeshare_advice/stop_paying_for_timeshare.html

 

[escanoe]

What week is it? If it is during beach season, I wouldn’t think giving it away would be a problem.

 

[Kira]

It's a floating week. We book our week at the first of the year depending on availability.

 

[SPCteam]

If you want to give it away, we may be willing to take it.

 

[rbjfamilytug]

List the details like what weeks can be reserved, the current maintenance fees, transfer costs/closing costs after you call the resort, every year or every other year.

We like Waterside and may possibly be interested also.

 

[WorldT]

@Kira was last seen April 27. Hopefully they will be back.

 

[MarkLoggavich]

@Kira was last seen April 27. Hopefully they will be back.

Kira ain't comin' back

 

[Kira]

It is a floating week on even years. Basically, you pay the maintenance fees on even years and you call the resort and book your week. There are no blackout weeks, its up to availability when you call to book. We have booked on July 4th week before. The maintenance fees are $829.00 and you only pay them on the even years. I'm not sure what the transfer fees are. I would have to call the resort for that and really don't want to call the unless i have to.

 

[jeffwill]

In the past, whether a transfer is for free or a $$ purchase, the recipient must pay $1500. into a pre-paid MF escrow account,
This requirement started about 15 years ago to fight the eBay "ghost ship" phenomenon. I told Spinnaker and Coral resorts it would backfire and put the financial burden on the sellers. I was right, and this was how a built a 64-timeshare portfolio on HH.

 

[Travelingman1]

To answer @Kira original question, it varies widely. No one can 100% tell you for sure what will happen, but I can tell you what is very likely and why it is people don't do this.

I am not an attorney, this is not legal advice, and I am speaking generally and out of personal knowledge not as an attorney.

So the bad news, they will just keep assesing fees, eventually they may (a lot do this a lot of the time) take you to court. It is likely they would win as you own deeded property and are legally responsible for the fees. If they win, they can seek legal fees. Again this is in general not just time share condos, etc.

Some good news, from the SC legal aid website. South Carolina law prohibits garnishment of unpaid earnings for certain consumer debts, and South Carolina Legal Services summarizes the rule broadly as: wages generally cannot be garnished for collection of a debt or judgment incurred in South Carolina, with exceptions such as government debts, taxes, and child/spousal support. I am not sure how real property works.

That being said, it is likely they can follow some sort of post-judgment enforcement process (these are often things like they send a letter to your bank from the court and freeze your funds, then get a "turn over" order).

Again there is a ton of nuisance here, it depends on your case, the law firm, the judge, and a million other things.

I would strongly STRONGLY suggest you have a free consultation with a local attorney before you stop paying and see what your exposure is, the above is not legal advice, but it is a very real possibility you might be exposed to legal liability.

Sources:

S.C. Consumer Code: https://www.scstatehouse.gov/code/t37c005.php

S.C. Civil Remedies: https://www.scstatehouse.gov/code/t15c039.php

S.C. Legal Aid on garnishment: https://sclegal.org/brochures/wage-garnishment/

S.C. Post Judgement Law: https://law.justia.com/codes/south-...1-frxkYDmOxpPlsbe5CdHgN36pOcPblNZ4YPusGtdEm1w

 

[jeffwill]

Has S. Carolina changed from being NON-JUDICIAL ANTI DEFICENCY. Meaning ALL the scare tactics are illegal.
The only thing they can do is foreclose and that costs them a good deal of money.

 

[Travelingman1]

Has S. Carolina changed from being NON-JUDICIAL ANTI DEFICENCY. Meaning ALL the scare tactics are illegal.
The only thing they can do is foreclose and that costs them a good deal of money.

No, South Carolina is not a non-judicial anti-deficiency state, as I read the law. I am not an attorney but I cited the laws up above and it reads to me that in South Carolina, foreclosures must go through the court system (judicial foreclosure). When I Googled it tons of legal blogs and Google responses aligned with my reading, but again not an attorney.

When I read the State law, I understood that State law allows lenders to pursue borrowers for a "deficiency judgment" if the home sells for less than the remaining loan balance.

I am reading South Carolina Code Section 29-3-660, lenders are legally permitted to ask the court for a personal judgment against the borrower for this difference.

I am not an attorney, I would strongly encourage anyone looking at stopping payment to first talk to a local attorney, lots will do free consults.

 

[Kira]

My apologies for the late reply. This is not a foreclosure. The lean is completely paid off. Only dues are the maintenance fees.