Timeshare assessment

[nytraveler]

My timeshare has just surprised me with a $1500 assessment - apparently the first with two more years of assessments to follow. I don't think it's right that it came up all of a sudden. I never receive news or updates on this property. Is there any way to fight this? What happens if you don't pay it?

 

[dioxide45]

What timeshare is it? The HOA BOD have a lot of power to assess to cover shortfalls or items that need repair or updating. If you don't pay it, it could result in the HOA foreclosing on the timeshare deed. This could be the start of a process to shut down the resort as a timeshare and sell off to another developer to turn it into residential condos or something else. I suspect many owners won't pay the special assessment which will result in a lot of defaults.

 

[nytraveler]

What timeshare is it? The HOA BOD have a lot of power to assess to cover shortfalls or items that need repair or updating. If you don't pay it, it could result in the HOA foreclosing on the timeshare deed. This could be the start of a process to shut down the resort as a timeshare and sell off to another developer to turn it into residential condos or something else. I suspect many owners won't pay the special assessment which will result in a lot of defaults.

Atrium in St. Maarten. I've owned for about 30 years and during that time, they've been through a lot of different management companies.

 

[bnoble]

Is there any way to fight this?

Generally, no. The Board is required to maintain the property at a reasonable level. If that requires unexpected and un-budgeted repairs, the Board is empowered to levy a special assessment. Often the governing documents put a limit on how large that assessment can be without a vote, but $1,500 is probably not above that line.

This is one of the downsides of ownership. You benefit from reduced costs in staying, but you share in the responsibility for maintaining the resort.

 

[nytraveler]

Generally, no. The Board is required to maintain the property at a reasonable level. If that requires unexpected and un-budgeted repairs, the Board is empowered to levy a special assessment. Often the governing documents put a limit on how large that assessment can be without a vote, but $1,500 is probably not above that line.

This is one of the downsides of ownership. You benefit from reduced costs in staying, but you share in the responsibility for maintaining the resort.

It's about 1/3 of my purchase price all those years ago. And there is no information on how much the next 2 years assessments will be.

 

[bnoble]

Your purchase price is irrelevant---not to mention a dollar buys a lot less now than it did all those years ago.

It is possible that the Board has been sending communications about this that you've not seen. It would be worth calling the resort to ask. But, your choices are: Pay, try to give it away (unlikely given the current and pending assessments), or stop paying and let them (eventually) take it back.

Personally, I would not pursue Option #2, because I'd probably be taking advantage of someone who didn't understand the situation, and that doesn't sit well with me. I am in a similar situation with a Hawaiian resort that is (hopefully!) going to cease operation soon.

 

[b2bailey]

It's about 1/3 of my purchase price all those years ago. And there is no information on how much the next 2 years assessments will be.

At least you didn't pay Developer price.
If you purchased for $7500 30 years ago you've probably received your monies worth , can ignore the assessment and let it go.

If you purchased with the idea you were making a 'real estate investment' -- that will require you to pay the assessments and hold on for the ride.

 

[davidvel]

At least you didn't pay Developer price.
If you purchased for $7500 30 years ago you've probably received your monies worth , can ignore the assessment and let it go.

If you purchased with the idea you were making a 'real estate investment' -- that will require you to pay the assessments and hold on for the ride.

$1,500*3=$4,500

 

[RX8]

I am not familiar with closing costs in St Martin but I suspect they are more expensive than stateside closings. That may make your giveaway even more expensive if you need to pay for closing.

I found a recent discussion about the Atrium assessment and someone posted they did a deed back last year for the cost of one maintenance fee. Granted that is last year but that option should be the first to investigate.

 

[b2bailey]

$1,500*3=$4,500

Even better. Somehow I got $2,500 assessment in my head.

 

[nytraveler]

I am not familiar with closing costs in St Martin but I suspect they are more expensive than stateside closings. That may make your giveaway even more expensive if you need to pay for closing.

I found a recent discussion about the Atrium assessment and someone posted they did a deed back last year for the cost of one maintenance fee. Granted that is last year but that option should be the first to investigate.aimjus

It is managed by LaTour or Festiva in Ashville, NC- not sure what their relationship is.

 

[GrayFal]

I am assuming as a 30 year owner you might be of a certain age where credit hits are not a worry?
not buying a new house or financing a fancy car?
I suggest contact the resort and see if they will accept a deed back.
If not, let it go, don‘t pay it.

 

[nytraveler]

Update: I am allowed to exit BUT they are requiring a fee of $1568, which is basically this year's assessment. I will probably also lose the $850 I paid in maintenance this year, because I didn't request a week. Even if I did, it would be forfeited. I think it's much better than the presentation I went to, who wanted about $10k.

Atrium/Festiva/La Tour or whoever they are, are NOT being transparent. I found a FB group for them and apparently they don't even sell the units as timeshares anymore. No wonder why I haven't had correspondence from them in years - UNTIL NOW. I hope there is a class action suit - so poorly managed. SHAME ON THEM.