Wastegate is laying off hundreds of employees, citing credit shortage???

[jercal10]

securitization of TS notes

Here's an example ofwhat these companyies do with the notes that they "finance"

PARSIPPANY, NJ--(MARKET WIRE)--Jun 30, 2008 -- Wyndham Worldwide Corporation (NYSE:WYN - News) today announced that it has completed a term securitization transaction involving the issuance of $450 million of investment grade asset-backed notes by Sierra Timeshare 2008-2 Receivables Funding, LLC, an indirect subsidiary of Wyndham Vacation Ownership. The notes are backed by vacation ownership receivables originated by subsidiaries of Wyndham Vacation Ownership. The 2008-2 transaction has a cost of funds, excluding transaction fees, of 7.15%.

 

[JeffW]

I wonder if these layoffs will make the weasels more aggressive?

My guess will be NO. I'd tend to think that somehow the timeshare needs to be a lot more selective in who they let attend sales presentations. What's the point in having people sit thru 90-120 minutes, when those that agree to buy (and obviously a lot still buy from the developer) won't be approved for the loan/mortgage. [I'm guessing 85%+ probably at least buy on developer financing, even if they refinance at home later on.]

I wonder if there will be a corresponding reduction in the freebies that are offered to those who tour? I can't believe they'll give out the same amount when the odds of a successful sale is less.

Jeff

 

[jercal10]

They are only tuned to processing shear #'s. A certain % buy. They'll find a way to get people to sign and discount the loans when they resell them.

If you pay $10,000 for a TS and you sign up for a 17% loan, the TS company can discount it significantly to get it off the books and still make a killing

 

[jercal10]

And beside the salespeople are on commiss only . If they don't sell , no comish. The companies (Wyndham, Festiva etc 0hire outside companies to market. If they don't market they'll get more salesmen not less. !! Expect the freebies and the pressure to increase!!!

 

[AwayWeGo]

Trouble In Paradise ?

I'd be worried if I were buying into an incomplete development such as the Hollywood Tower of Terror in LV as this may bring things to a halt.

What ?

Completion problems at The No. 1 Timeshare In The Whole USA ?

Wouldn't that be something ?

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[pedro47]

The only persons effective by laid offs are the hard working middle class income families. The king will not be touch.

 

[lasvegasnewlist]

The end of the timeshare business

We are in Orlando, and this was on the news last night.

I guess banks no longer want to finance loans for overpriced timeshares? :ignore:

I don't know what this means, exactly, but it sure is big news here.

I predict this is the end of the timeshare business. The few remaining banks that are still in business after the government bailout will pass of these "junk" loans becuase the government oversight.
My MF fees are due 40 days into 2009. Can't make reservations for 2009 unless fees are paid. I can see a whole lot of listings early Jan, and prices dropping faster than the stock market. Then the foreclosures begin. 2009 will be the sub prime bubble for timeshares.