What Happens When a Resort Shuts Down?

[Captpan6]

My mother is a part of Fantasea Resorts, a TS network primarily based in Atlantic City. Her unit is all paid off and it's just the annual maintenance fees now.

Atlantic City, however, is not the most stable city when it comes to both geology and economics. The entire city is built on layers of sand, unlike NYC which at least has a bedrock foundation. Superstorm Sandy exposed the weaknesses AC has when it comes to storm protection. Parts of the boardwalk were destroyed and although the casinos survived or rebuilt easily, the residential zones did not have the same protection and in addition to homes being eviscerated, parts of the land were swept away. And I don't think the economic troubles AC has gone through since 2006 need any explanation.

To this day, little has changed. Much of the city is vulnerable to not just another Sandy-type storm, the risks of which are growing higher due to environmental factors, but rising ocean levels. Granted a lot of these problems are longer term problems for me to think about as the eventual recipient of this timeshare (the scientific consensus is that AC will see even larger environmental problems come 2040) and I'm certain the resorts have the funds to recover should something happen to the properties, but I thought it would be useful to learn what happens if we suddenly learned our unit is no longer?

 

[SueDonJ]

Moderator Note: This was reported with a request to move it to the Eastern States forum to maybe generate a response. Not a bad idea, and I'm posting in the thread to bring it to the top.

 

[wackymother]

That's a question I've asked about most oceanfront property. I suspect in the case of a timeshare, your investment will just be gone. You'll stop hearing from them. I would hope that they would stop asking for maintenance fees and that they won't ask for special assessments to fix damages. Even if the resort is fully insured, I doubt you will get anything back.

 

[silentg]

My mother is a part of Fantasea Resorts, a TS network primarily based in Atlantic City. Her unit is all paid off and it's just the annual maintenance fees now.

Atlantic City, however, is not the most stable city when it comes to both geology and economics. The entire city is built on layers of sand, unlike NYC which at least has a bedrock foundation. Superstorm Sandy exposed the weaknesses AC has when it comes to storm protection. Parts of the boardwalk were destroyed and although the casinos survived or rebuilt easily, the residential zones did not have the same protection and in addition to homes being eviscerated, parts of the land were swept away. And I don't think the economic troubles AC has gone through since 2006 need any explanation.

To this day, little has changed. Much of the city is vulnerable to not just another Sandy-type storm, the risks of which are growing higher due to environmental factors, but rising ocean levels. Granted a lot of these problems are longer term problems for me to think about as the eventual recipient of this timeshare (the scientific consensus is that AC will see even larger environmental problems come 2040) and I'm certain the resorts have the funds to recover should something happen to the properties, but I thought it would be useful to learn what happens if we suddenly learned our unit is no longer?

We had a timeshare in Florida that closed for storm damages, they wanted us to pay a large assessment, but offered us to relinquish our week, at no cost. We opted out and glad we did. The Timeshare hasn’t reopened. Lot of legal action . I’m just glad we are not involved anymore.

 

[Sandy VDH]

Resort do fold some of the time, either from a natural disaster or other factors that they can't recover from it for a variety of reasons. Reasons are usually 1) just not enough paying owners (too many defaulted/turned in weeks etc owners) 2) underfunded reserves, as board strive to keep MF low, the do not adequately fund the reserves. then 3) some event or crisis trigger the slip and not longer are there enough funds to support the resort.

So be it because it was either built at a location with more seasonal demand, and the season isn't long enough with a small % of weeks high demand, or because it was built in a hurricane or storm possible location, its luck ran out and was hit, and it was likely under insured, it is not longer around.

It usually is a combination of factors, but an event becomes the tipping point that the resort can't recover from.

I thought we had a list of closed resorts, but I can't locate it.......

 

[Eric B]

....

I thought we had a list of closed resorts, but I can't locate it.......

Bankrupt / Closed Timeshare resorts

Lots of speculation of delinquent fees and such causing resorts to declare bankrupcy and close down, but its rarely ever in the news when this actually happens unless its a major resort. As we have been doing some emails to members about resorts that have not been updated in many years, its...

tugbbs.com

 

[pedro47]

Resort do fold some of the time, either from a natural disaster or other factors that they can't recover from it for a variety of reasons. Reasons are usually 1) just not enough paying owners (too many defaulted/turned in weeks etc owners) 2) underfunded reserves, as board strive to keep MF low, the do not adequately fund the reserves. then 3) some event or crisis trigger the slip and not longer are there enough funds to support the resort.

So be it because it was either built at a location with more seasonal demand, and the season isn't long enough with a small % of weeks high demand, or because it was built in a hurricane or storm possible location, its luck ran out and was hit, and it was likely under insured, it is not longer around.

It usually is a combination of factors, but an event becomes the tipping point that the resort can't recover from.

I thought we had a list of closed resorts, but I can't locate it.......

The title was Bankrupt/Closed Timeshare Resorts dated February 21, 2015 under Buying, Selling and Renting Timeshare

 

[Eric B]

The title was Bankrupt/Closed Timeshare Resorts dated February 21, 2015 under Buying, Selling and Renting Timeshare

... or you could just use the hyperlink in the post directly above this one....