Thunderbird Resort Club, Sparks, NV- consolidation of foreclosed units plan

[mjm1]

I own a 1 bedroom unit at the Thunderbird Resort Club in Sparks. We have been presented with a plan to consolidate all of the foreclosed 1 BR units into specific rooms/buildings and then sell the units and some land, including the tennis court, fitness center building, etc. to QM Resorts, which is the parent company for $800 per unit. Doing so will rid the club of foreclosed 1 BR units and the related loss of dues not paid. They plan to move the fitness center to the building currently used for presentations, which is actually more centrally located. If this measure isn't passed, it will result in an increase of maintenance fees from approximately $300 per year to $450 per year.

Does anyone have knowledge of this proposed transaction, or a similar transaction at a different resort, and does it seem like a good idea? My initial impression is that it makes sense. In Interval International this is not a select or premier resort. We use it primarily for exchanges and have been pretty happy with our exchanges. I imagine if I tried to sell it I would be lucky to net $800 for my unit. Any insights would be appreciated. Thanks.

 

[Bill4728]

If the HOA is doing this, getting less than $40,000 /full ownership unit ($800 x 52 weeks) sounds like way too little money. Yes, they may not be worth $800/week as a TS but that isn't what the HOA is selling. they're selling the whole bldgs as a whole ownership units.

The company buying the units will likely be able to turn around and sell the units as whole ownership units for more than $100,000.

PS. I think you may get a better responce on a different board, So I'm going to move this to the western US board.

 

[mjm1]

Thanks Bill. I see what you are saying about selling the entire building, which is what they are doing. It will be interesting to see if others chime in as well. I appreciate your insights.

 

[CatLovers]

I own a 1 bedroom unit at the Thunderbird Resort Club in Sparks. We have been presented with a plan to consolidate all of the foreclosed 1 BR units into specific rooms/buildings and then sell the units and some land, including the tennis court, fitness center building, etc. to QM Resorts, which is the parent company for $800 per unit.

MJM, I too own a 1-bedroom unit at this resort ... but I have not heard of this plan. Are you a deeded week owner, or a member of Club QM? I'd appreciate any additional information you can give me.

We have for years refused to join Club QM because their mfs are inflated (we presently pay less than $400 for our deeded unit). It's worked out okay for us because I have either booked the week coinciding with Hot August Weeks annually, or deposited the week in II. We have not found value in Club QM at all. You are right in that this week is not a stellar trader in II, but it gives us fairly decent trades when we do deposit it into II e.g. a 1-bedroom Christmas week in a mid-range resort in Aruba.

 

[Dori]

We had a problem at our home resort in Ontario, and the first thing the HOA did was to offer units in arrears to owners at $1.00. We purchased an extra unit and have been very happy with it. That was 15 years ago.

Dori

 

[mjm1]

MJM, I too own a 1-bedroom unit at this resort ... but I have not heard of this plan. Are you a deeded week owner, or a member of Club QM? I'd appreciate any additional information you can give me.

We have for years refused to join Club QM because their mfs are inflated (we presently pay less than $400 for our deeded unit). It's worked out okay for us because I have either booked the week coinciding with Hot August Weeks annually, or deposited the week in II. We have not found value in Club QM at all. You are right in that this week is not a stellar trader in II, but it gives us fairly decent trades when we do deposit it into II e.g. a 1-bedroom Christmas week in a mid-range resort in Aruba.

Thanks for your feedback. We are deeded owners in the winter high season and like you did not opt to join Club QM. We received a mailer late last week describing the consolidation plan and asking for a vote. If you didn't receive it, please contact the corporate office. They need to receive a 75% "yes" vote to pass the plan. Otherwise dues will increase by approx. $150 per unit per year.

We would love to go there for Hot August Nights some time, but it isn't in our season. Trying to get that week would be impossible for us since it is in high demand.

 

[rosie2]

Thunderbird timeshare vote

We too are members. I don't want to pay higher maintenance fees but don't want to give away half of the one bedrooms. They should have given us more time to consider options and told us about the problems. Maybe there are options they have not considered.

 

[CatLovers]

We received a mailer late last week describing the consolidation plan and asking for a vote.

When is the deadline for the vote? I hope they have left enough time so that people can adequately review before they respond!

 

[dougp26364]

I think that, if it were me, I'd probably have to vote yes on this matter. But there are questions that I would have.

#1. Is the HOA and Club QM the same? ie: Does the developer control the resort, HOA and BOD.

#2. Is this a private offer that hasn't been subjected to market values and, if it is a private offer, has the HAO obtained an independant apraised value for the land to assure owners that they're getting a fair deal?

#3. Will this affect the overall quality of the resort and how it trades through I.I.

#4. Could owners do as what is mentioned above and be offered the foreclosed units for $1 so that those MF's start getting collected and the remaining owners wont see a 35% increase in MF's next year.

#5. Why hasn't the HOA/BOD attempted to sell the foreclosed units at auction, either owners auction or E-bay


Basically, there's to much here to take at face value but, you're right, this resort has very little, if any, resale value. An owner could look at is as if they had sold their unit for $800, then dump it on E-bay in a no-bid auction and walk away, leaving any problems for the next owner.

One final concern would be people who have wanted to sell out but haven't been able to do so. Will they see this as a way to get $800 for their unit and walk away, creating yet another problem for the HOA/BOD?

Again, if it were me, I'd probably take the $800 and not look back. Assuming that Club QM and the resorts HOA/BOD are as cozy with each other as most, getting a fair deal for the owners will be almost impossible unless you want to attempt to force them into what's right. That takes effort, money and owners working together. Something the doesn't seem to happen very often.

 

[CatLovers]

One final concern would be people who have wanted to sell out but haven't been able to do so. Will they see this as a way to get $800 for their unit and walk away, creating yet another problem for the HOA/BOD?

I haven't seen this document yet, but from the OP's original post, it sounds like they are trying to sell foreclosed units to the Club QM at $800 each. So present owners who have fulfilled their mf obligations for many years will not have the option to sell out.

 

[mjm1]

yes, that is correct. Current owners who have not had their units foreclosed will not be selling their units for $800. The HOA will receive the $800 per unit, which will virtually eliminate $1 million in debt and $500k in losses related to foreclosures and title costs. A number of good questions were raised and I don't know the answers, but I may try to find out. The information does indicate the the B of D did consider other options (no details) but none of them were viable. We need to mail our vote to the Secretary by Jan. 26th, so they didn't give us a lot of time. The meeting will be held on Feb 14 at 11 am at the resort.

 

[CatLovers]

My docs arrived in the mail today. There is a letter from the President of the Board of Directors (first name Bonnie).

Does anyone know whether she is an owner, or whether she works for Club QM? I don't know anything about the HOA's Board structure, but I would be very interested to know whether this is a board made up of Club QM management that is recommending this sale.

Anyone know how to contact this Bonnie?

 

[dougp26364]

I haven't seen this document yet, but from the OP's original post, it sounds like they are trying to sell foreclosed units to the Club QM at $800 each. So present owners who have fulfilled their mf obligations for many years will not have the option to sell out.

That's not exactly what I meant. What I was infering is how many people will take the $800, then default on their ownership/MF's for future years. Most of us on TUG no how that can affect a persons credit but I'd bet there's a lot of people that would see this as an open door to let their units go back to the resort. After all, the resort is selling those foreclosed units and giving owners in good standing $800. Why couldn't they just let their unit go back and allow the resort to sell their unit in the same way after it's been foreclosed.

 

[CatLovers]

My docs arrived in the mail today. There is a letter from the President of the Board of Directors (first name Bonnie).

Does anyone know whether she is an owner, or whether she works for Club QM? I don't know anything about the HOA's Board structure, but I would be very interested to know whether this is a board made up of Club QM management that is recommending this sale.

Anyone know how to contact this Bonnie?

I answered my own question - I called and spoke to the Executive Administrator for the Thunderbird Resort Club Association. As I had hoped, the Board is made up of owners in the Resort, and supposedly there are no representatives from QM that hold voting positions on this Board. This gives me some reassurance that decisions are being made in owners' interests rather than in the interests of Club QM. If this special resolution is passed, Club QM will now have access to 1600 units of inventory that they can resell at inflated Club prices. To be fair to them though, they will incur the carrying costs and the hassle of marketing and selling, so this load will be off the Board's shoulders. Based on what I have learned today, I will likely vote "yes" to this resolution.

 

[mjm1]

Thanks for calling them and getting this additional information. I suspect that we will vote "yes" as well.

 

[Bill4728]

So, they will be selling the units to Club QM to remain as TS units?? That would be good new for me.

Having a resort where some units are full ownership and some are TS is IMHO a reason for concern.

 

[mjm1]

The information we received does not indicate what Club QM will do with the consolidated units, but I assume they will resell the consolidated units as timeshare.