Won auction for MBP from Intervalmax - now what?

[Robert D]

Terry, your description of their business is close but they don't buy the TS's, they get them for free. Most of their inventory comes from developers who take TS's in trade from new buyers. If you own a TS and are interested in buying a new one directly from a developer, the developer will try do to anything to make the sale including giving you something for your existing TS against the inflated price of the new TS. When they take TS's in trade that are not their own, they just want to get rid of them ASAP and a lot of them have a deal with Intervalmax to take all that they get off of their hands. Some of them are literally worthless (a lot are the type of TS's that post card companies charge people to take over) but some are pretty good, like the Hyatt's and Marriotts. They don't get a lot of these but do get some. From what I can tell, they get a ton of TS's from these developers. Probably on a lot of them (maybe most of them), the profit they make is the closing costs (they do the closing in house at a very low cost). It seems to be a good business model, but low margin/high volume, and they know what they're doing. I've bought 2 TS's from them (including the Marriott Timber Lodge that is still in process). I think they get estoppel letter of TS's before they advertise them for sale to be sure everything is as described. But it is scary not having a third party closing company holding your money until the TS is transferred.

 

[dioxide45]

Update:
Intervalmax has been very pleasant to deal with thus far. They have responded to all me eamils quickly via return emails or even phone calls.

I have since learned a bit more about the company itself through these conversations as well. Basically, Intervalmax buys distressed (very distressed) properties and has individual buyers, and developers wanting to buy back inventory, waiting in the background.

Many of the units Intervalmax buy's never end up on any websites like eBay because they are virtually sold with a phone call or two. Example, Hyatt buys all of Intervalmax's properties back from them under an agreement. Marriott no longer buys back units from Intervalmax and hasn't taken a property via ROFR in a long time.

Anyhow, I will let you know about ROFR on BeachPlace soon enough I hope.


Terry

Terry,

Please tell me that you didn't just buy in to the sales scheme that they use to obtain these weeks hook line and sinker....

They will deed any TS back to the HOA or developer that they can. If a resort is accepting deed backs, this is how they unload it instead of selling on E-Bay. Less work and less hassle. In many cases the original owners can do the same but they don't inform them of that (and they are not required to do so). They tell their "victims" that they have companies waiting in the wings to buy up what the owner pays $$$ for them to take. They show them ads from E-Bay showing weeks selling for $1, though the auction may not be closed yet.
If they had companies to buy back weeks, why do they have to sell so many on E-Bay?

 

[thinze3]

Terry, your description of their business is close but they don't buy the TS's, they get them for free. Most of their inventory comes from developers who take TS's in trade from new buyers. If you own a TS and are interested in buying a new one directly from a developer, the developer will try do to anything to make the sale including giving you something for your existing TS against the inflated price of the new TS. When they take TS's in trade that are not their own, they just want to get rid of them ASAP and a lot of them have a deal with Intervalmax to take all that they get off of their hands. Some of them are literally worthless (a lot are the type of TS's that post card companies charge people to take over) but some are pretty good, like the Hyatt's and Marriotts. They don't get a lot of these but do get some. From what I can tell, they get a ton of TS's from these developers. Probably on a lot of them (maybe most of them), the profit they make is the closing costs (they do the closing in house at a very low cost). It seems to be a good business model, but low margin/high volume, and they know what they're doing. I've bought 2 TS's from them (including the Marriott Timber Lodge that is still in process). I think they get estoppel letter of TS's before they advertise them for sale to be sure everything is as described. But it is scary not having a third party closing company holding your money until the TS is transferred.

Yes, we talked about this and other ways Intervalmax gets their properties. I had a similar situation when at a Sheraton presentation. I was told that Sheraton would take my CL as a trade-in on a new purchase.


Dioxide,
I am not sure what you mean, but I am aware that they have many weeks on eBay - most of them worthless. These are what I was led to believe the ones that the developers did not want. As far as taken weeks from "victims", or people who pay upfront, I do not believe that is their business plan.

I specifically asked if they take weeks for sale, as I have been contemplating selling my CL unit. I was told NO that they do not sell TS's for individuals.

Terry

 

[summervaca]

I bought a Wyndham resale package from Intervalmax. I sent the contract back, sent the money via paypal and received a copy of the deed by certified mail a short time later. My experience was entirely positive.

 

[m61376]

I was wondering how this was progressing...have you heard back from Marirott wrt ROFR yet?

 

[thinze3]

It is my hope to hear something this week.

Terry

 

[thinze3]

Update

Passed ROFR!
Waiting on paperwork to be finished.

Terry

 

[thinze3]

Hit a glitch!

It appears that the previous owner turned in the 2009 week at BeachPlace for points on a date after the close of the auction. Marriott has confirmed this. Of course, I paid the 2009 MF's.

Intervalmax is trying to contact the previous owner to no avail as of yet. I thought it would be as easy as Intervalmax reimbursing my 2009 MF but that would leave them holding the bag, and of course they don't want that.

I guess nothing ever comes so easy.

 

[dioxide45]

Hit a glitch!

It appears that the previous owner turned in the 2009 week at BeachPlace for points on a date after the close of the auction. Marriott has confirmed this. Of course, I paid the 2009 MF's.

Intervalmax is trying to contact the previous owner to no avail as of yet. I thought it would be as easy as Intervalmax reimbursing my 2009 MF but that would leave them holding the bag, and of course they don't want that.

I guess nothing ever comes so easy.

Have the MF been paid to Marriott yet? Is the transfer complete. If not my thinking is that your money is sitting in that "trust" account. I don't believe that Intervalmax uses independent escrow. Unfortunatly owners had until early 2009 to exchange for points and you don't have to have MF paid to initiate the exchange for points.

If intervalmax still has all the proceeds from the sale and MF hasn't been to Marriott yet, then it is their problem. They sold you something that they can no longer give you and should have to pay those MF back to you.

 

[Robert D]

I agree totally, IntervalMax should cover the maintenance fee. They are the seller and should stand behind it. That's part of their cost of doing business. A similar thing happened to me on a TS I bought from Namal on Ebay, a ski week in Vail. The prior owner rented this year's week that I was supposed to get and the seller reimbursed me for the maintenance fee and last half of the special assessment without any problem.

 

[thinze3]

I was just told that the previous owner is paying Marriott today via credit card for the 2009 fees (as he should, since he already has the points). Intervalmax also said they would be reimbursing me the MF's I paid since I will not get 2009 usage.

This could actually work out very well for me, as there are probably no good 2009 weeks left at this point. I will not lose that first year that so often happens during a transaction year.

To note - Marriott has been fantastic througout this. They have responded back to every email within minutes. I plan on sending them another in about 45 minutes.

 

[Robert D]

How long has Marriott had your recorded deed and when do they say that they will get it transferred on their system? This is one of the dark sides of Marriott - they systematically delay transferring resale deeds on their system and in my opinion, it is a big blemish on their reputation as a service oriented company.

 

[dioxide45]

I was just told that the previous owner is paying Marriott today via credit card for the 2009 fees (as he should, since he already has the points). Intervalmax also said they would be reimbursing me the MF's I paid since I will not get 2009 usage.

This could actually work out very well for me, as there are probably no good 2009 weeks left at this point. I will not lose that first year that so often happens during a transaction year.

To note - Marriott has been fantastic througout this. They have responded back to every email within minutes. I plan on sending them another in about 45 minutes.

Good to hear that is is working out. Hope that borrower follows through for you.

 

[thinze3]

BeachPlace is now listed under "My Resorts" on the my-vacationclub.com website! Everything worked out OK after all. I will be able to book spring break 2010 in Fort Lauderdale (if I call earlier enough) next month as I had hoped. I didn't get stuck with a "bad" 2009 week, nor did I have to pay for it!

All in all the process was about 3-1/2 months start to finish, and that included 2 bumps in the road. Not bad.

 

[FlyerBobcat]

Congrats, Terry !!! :whoopie:

 

[m61376]

:whoopie: What a deal!!

 

[Robert D]

Great news. I really thought that IntervalMax would take care of the situation. It is scary dealing with them since they don't use a 3rd party closing company but they know what they're doing.

 

[toocherie]

I would also be interested in knowing how long it took Marriott to do your transfer once they received the recorded deed? My deed recorded in late January and I followed up with the closing company last week--they said it could be another month or so . . . . . this is my first Marriott purchase.

 

[Robert D]

The two Marriott TS's I bought took about 6 weeks to get transferred. From what I can tell, that is about the minimum time. Marriott has a systematic policy to drag their feet on transferring resales - makes no difference if they are busy or not, they wait until about 6 weeks from the date that they receive the recorded deeds. One of the dark sides of Marriott. If you send a fax complaining to Bill Marriott at their corp headquarters in Maryland, you might get it done sooner.

 

[wdinner]

Amex gives the best protection by far

FYI

Amex will provide protection up to 6 months. (Vendors must keep records for 6 months).

I am currently arguing several charges from last September and it is no issue. Amex is doing a fine job of protecting my interests.

Without question, any purchase that I have any concern about is always charged to my Amex card.

 

[thinze3]

I would also be interested in knowing how long it took Marriott to do your transfer once they received the recorded deed? My deed recorded in late January and I followed up with the closing company last week--they said it could be another month or so . . . . . this is my first Marriott purchase.

It took about 5 weeks, BUT we hit two major glitches during this time.

1) It was discovered by Marriott that the 2009 week was not available as the previous owner had turned traded it in for points AFTER the sale. Intervalmax had to collect '09 fees from them. - Lost about a week.
2) Marriott was literally doing a double transfer. Previous owner to Intervalmax and the Intervalmax to me. Intervalmax DID NOT send in a copy of the "recorded" deed to Marriott. - Lost about 10days.

As you can see, this deal would have been done within 3 weeks had all the paperwork been complete and correct up front. I had a very good transfer agent at Marriott who was very helpful along the way.