What Happens When I Stop Paying Maintenance Fees?

[b2bailey]

I thought I would share my experience as an owner at The Beach Club Montego Inn in Myrtle Beach.

We purchased this week resale, sight unseen through a broker who used to sell on TUG. At the time, about 15 years ago, we were living in Florida. It was sold as a fixed week, ocean view unit.

We made our first trip to Myrtle Beach later that year. When we arrived to use our unit, we were so disappointed we left after one night. The fixed unit was under a stairwell, facing the parking lot. Dark and dank.

We left thinking "oh no, what have we done?"

The next year we deposited with exchange company, hoping nobody would exchange into it. The following year we contacted 'the resort' , explained our situation and made a request to deed back the unit. We were told that was not an option. We told them we were no longer going to pay maintenance fees. I braced for future hit on credit report, planning to write a letter to credit agency explaining circumstances.

Over the years we would receive annual fee notices. I would ignore.
Recently they have changed their billing system and I noticed a new style of invoice. This is what prompted me to post today.

The Invoice says the 2025 MF Due is $600.63.
The Balance Forward is $19,052.84 --
Interest is accruing at approx $300 /month.

I'm going to speculate they are getting their ducks in a row for a future sale.
My portion of any sale proceeds will be reduced by my "balance due"

And no, it has never appeared on my credit report.

 

[rickandcindy23]

I guess you just continue to ignore it.

I am facing decisions such as this for our Hono Koa weeks. Walking away seems about the only option for us.

 

[b2bailey]

I guess you just continue to ignore it.

I am facing decisions such as this for our Hono Koa weeks. Walking away seems about the only option for us.

That would be more difficult for a place you used to like. And/or if you are concerned about your credit report.

 

[Bbmom1989]

I am interested in following your journey as I am working toward walking away from our ownership as well. I just don’t see another way around it.

 

[iftravel]

Dang, for 15 years and still growing!

I think the possible drop of bomb is you receive a 1099-C on cancellation of debt. You will have to pay tax on current 20k ish balance as general income. For better or worse, the debt has to be settled by the estate in theory, that might be the resort is betting on in addition to sale.

 

[Passepartout]

We had a similar experience, though not at the magnitude described. We got MF bills with late charges and penalties accrued, but after a new board and some changes in billing, out of the blue came a foreclosure notice by Certified Mail, and it was a done deal. There was never a credit hit.

Jim

 

[WaikikiFirst]

The next year we deposited with exchange company, hoping nobody would exchange into it.

Just curious; did they continue to let you deposit it even w/o MFs being paid? I assume not, but it isn't clear

 

[b2bailey]

Just curious; did they continue to let you deposit it even w/o MFs being paid? I assume not, but it isn't clear

Oh no, definitely not able to deposit. The curious part is that they may have been renting it all these years. It was often the Christmas / New Years week.

 

[b2bailey]

Out of curiosity, I looked online -- unit may be booked that week in December for $327 / week. Wow, yet another reason it would be difficult to pay MF of $600+.

 

[srib]

Very interesting thread to see different experiences. So, is there anything difference in walking away from "points" vs. fixed-week? Am I reading it correctly, that walking away from a fixed-week may not show up in credit-report? I have multiple contracts - points and fixed-week. Can I just walk away from fixed-week and keep the points and use them?

 

[rickandcindy23]

Very interesting thread to see different experiences. So, is there anything difference in walking away from "points" vs. fixed-week? Am I reading it correctly, that walking away from a fixed-week may not show up in credit-report? I have multiple contracts - points and fixed-week. Can I just walk away from fixed-week and keep the points and use them?

What is it you are specifically asking? This is a vague question.

 

[iftravel]

We had a similar experience, though not at the magnitude described. We got MF bills with late charges and penalties accrued, but after a new board and some changes in billing, out of the blue came a foreclosure notice by Certified Mail, and it was a done deal. There was never a credit hit.

Jim

Thats great! No 1099-C to be bothered with?

 

[b2bailey]

Very interesting thread to see different experiences. So, is there anything difference in walking away from "points" vs. fixed-week? Am I reading it correctly, that walking away from a fixed-week may not show up in credit-report? I have multiple contracts - points and fixed-week. Can I just walk away from fixed-week and keep the points and use them?

If you are speaking of a fixed week and points at the same resort or 'club' I would expect that all activity would be halted if you pay one but not the other.

 

[srib]

What is it you are specifically asking? This is a vague question.

My apologies for the vague initial question. Mr. Bailey had provided some relevant information above. To clarify, I have multiple contracts with Wyndham: one fixed week (deeded) and others are points-based. I understand now that I cannot terminate just one of these contracts and continue using the others.

 

[b2bailey]

My apologies for the vague initial question. Mr. Bailey had provided some relevant information above. To clarify, I have multiple contracts with Wyndham: one fixed week (deeded) and others are points-based. I understand now that I cannot terminate just one of these contracts and continue using the others.

With Wyndham, You might be able to give away part of your membership to a Tug member and still keep what you want to use. However if you stop paying Maintenance Fees on any part, they would most likely block usage of all. My Wyndham ownership was given to me.