Unpaid Maintenance Fees

[mwak1062]

We are in the process of trying options to give away our week at Maverick in Ormond Beach. (Thanks for the good advice in this forum - we are posting on the boards here and have contacted the HOA). But, I have a general question that I'm having trouble finding an answer to.

We do not have a loan (paid cash), but have not paid our 2017 MF (long story there, resort closed for more than 2 years after hurricane Matthew). We literally just got turned over to collections (received notice about 10 days ago). Out of curiosity, if we just didn't pay the fees, what would be the typical consequences of that?

We think it is unlikely that the HOA will take the unit back (they currently have 350 units in inventory because of the whole hurricane closure issue). If I can't find someone to take the week, we are wondering what would happen if we just stopped paying? Worst case scenaio? Most likely scenario? At some point, we may contact a lawyer, but thought you guys might have some general insight!

 

[breezez]

You won’t likely be able to give away or sell till your fees are caught up.

As far as consequences eventually they will foreclose on the deeded unit, but you have / will have this ding your credit score for several years.

 

[bogey21]

. At some point, we may contact a lawyer, but thought you guys might have some general insight!

I'm not sure what a lawyer can do for you in your situation. If you have no desire to use the Week and the MFs + penalty you owe is significant, the hit to your Credit may be worth taking. It is also possible that the Resort will make you some kind of offer to avoid the hassles of foreclosure. Just remember every time you talk to them (if you do at all) plead total inability to pay up....

George

 

[Passepartout]

Somehow, I have the feeling that not paying the MF on a timeshare week on a unit that has been closed won't reflect too strongly on your credit. But before you default and walk away, can you find out what of the 50 X 350- that's 17,500 intervals! owners are doing? Is the resort rebuilt? Is there a big, fat Special Assessment?

I'm not familiar with this resort, or your feelings towards it, but if it's been rebuilt, and is open, you might have some success re-homing it. You'll have to bring your MF current to transfer the ownership. Otoh, if it's underwater (financially) and the HOA is undercapitalized, you probably already have the ding on your credit. Offer the deed in lieu of foreclosure and let them do what they will.

Good Luck!

Jim

 

[mwak1062]

Thanks so much for the replies. We are definitely going to try working with the HOA to take it back, but we've been told initially that they have so many units in inventory, that they are being very selective about which ones they take and are looking primarily at true hardships (thanks for the heads up bogey21). We will also certainly try to re-home it and recognize that we'll need to catch up on the MF in either of these scenarios. I was more just curious about what generally happens if people just walk away from a timeshare (particularly if they don't have a loan and are just behind on MF) -- it seems like so many people are trying to get rid of them, if it just dinged your credit a little bit it seems like more people would do it. Anyway, thanks for the advice and insight!

 

[consmarci]

Just wondering what might have happened since this last report. We are in the exact same situation with Maverick. We truly have a hardship situation, but were told that the board will only allow hardship if we own a week they actually want back. We have a week in April. Why wouldn't they want it?

 

[TheTimeTraveler]

Why wait for the Board to act? Post it on TUG in the Bargain Section and unload it (and rid yourself on the carrying costs).





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[silentg]

We stayed at The Maverick a few months ago. It has been totally renovated. They have units/ weeks for sale. It’s a nice, but very small, good for two adults. We are not owners, we got an
extra vacation from RCI.
Silentg