Resale - Grand Beach II - Diamond Resort

[Y-ASK Member Find all posts View Profile Close Y-ASK]

I guess I just need to vent some since I just found out about my problem this morning. I purchased a 3 Bdr lock-off timeshare at Grand Beach phase II (Diamond Resort - Orlando). The closing process basically started Nov 13th 2008 when both contract and payment received were verified by the selling authority. The transaction did not include the collection or payment of maintenance fees for 2009 at that time. Looking at the documents again the Warranty Deed is dated Nov. 17th 2008 and was recorded by Orange County. I was told at that time that it could take the resort as long as 90 days to acknowledge the transfer so I patiently waiting. I called the resort about every three weeks or so to see if they have me as the owner and it was some time in early January that I received the good news that I was indeed considered the owner.

Now for the horror. I have had dealings with Diamond resorts before so I knew full well when the maintenance fees were due. During that initial owner to resort conversation in early January I asked as to the status of the 2009 Maint. Fees. I was told they were already paid. Now I had budgeted about $1,000 for those fees and I was kind of surprised that they were already paid. In fact I was so surprised that I called back shortly before the end of January and again I was told that my account was up to date and no fees for 2009 were due. Again I could not believe my luck that I would actually be getting my 1st year usage for free. So I called again in either late Feb or early March because I still had that money set aside just in case. Again I was told that the account was up to date with no outstanding balance. I again specifically asked about the 2009 Maint. Fees and I was told that they were paid. I'm not sure what else I could do at that point in time but maybe I should have demanded that in writing.

Fast forward three months later. We are going to be using a different account for a reservation that I have in early July at Grand Beach and a close friend of mind inquired about possible going with us. I was delighted at the prospect because I still had my "free" 2009 use year available. I even offered it to he and his family for free since it had not cost me anything other than the purchase price at that point in time. So I called this morning to make the necessary arrangements and I'm told on the phone that there is an outstanding balance on the account and that the 2009 maint. fees have not been paid. Now I know that the maint. fees are significantly less than the amount the reservation taker is telling me. The maint. fees should be around $900 - $1,000 for 2009. I'm told my balance is over $1,400.00. She doesn't tell me any of the details but she does use the words overdue and interest, maybe some sort of penalties. So now I'm stunned, angry, and pissed off but I don't lose my cool because I know the resrv. taker can't do anything. I have to call accounting in Vegas on Monday.

WTF? So now I can't make the reservation even though I am told that one is available for the dates I need. I've had all day to think about it and I'm more pissed off now than I was this morning. How in the hell can they possible charge me a penalty and interest when they never sent me anything? No written acknowledgement that I was the new owner, no maint. fee bill, no overdue notice. How can you possible run a company so poorly? Now before you think I'm trying to get a free ride, that is not the case. I am more than willing to pay the 2009 Maint. Fees since that is what I agreed to. What I am not willing to pay is any sort of penalty or interest on a overdue bill that I was never sent! Nor am I willing to pay anything extra since I called them three different times and got the same message that the 2009 maint. fees having already been paid. I guess I will see what they have to say Monday morning but I have a feeling that it is not going to be a pleasant phone conversation. If this is the way they plan to treat an owner that is happy to pay his maint fees then they will never get another dime out of my pocket. Foreclose, take the deed, do what you have to do but you'll never hear from me again. And if you do it will be through my lawyers.

Stay tuned!

Y-ASK

[taffy19 Gold Contributor Find all posts View Profile Close taffy19]

By any chance, do you have proof that you called them three times? These phone calls are listed on your phone bill either by mail or online. I would offer to FAX it to them in case they are not willing to remove the extra fees as proof that you spoke with them more than once. Don't lose your cool because the person may be willing to to take care of you. I experienced a similar situation last week and got my problem worked out with her by faxing proof of having called them and she took care of the problem immediately and was friendly and professional too and she didn't lose a customer either.

[Spence Super Moderator Find all posts View Profile Close Spence]

I would immediately send your story to
Patrick Duffy Chief Experience Officer
and
Jeff Shelton Executive Resolutions

I'm sure you'll have a resolution soon.

I guess I just need to vent some since I just found out about my problem this morning. I purchased a 3 Bdr lock-off timeshare at Grand Beach phase II (Diamond Resort - Orlando). The closing process basically started Nov 13th 2008 when both contract and payment received were verified by the selling authority. The transaction did not include the collection or payment of maintenance fees for 2009 at that time. Looking at the documents again the Warranty Deed is dated Nov. 17th 2008 and was recorded by Orange County. I was told at that time that it could take the resort as long as 90 days to acknowledge the transfer so I patiently waiting. I called the resort about every three weeks or so to see if they have me as the owner and it was some time in early January that I received the good news that I was indeed considered the owner.

Now for the horror. I have had dealings with Diamond resorts before so I knew full well when the maintenance fees were due. During that initial owner to resort conversation in early January I asked as to the status of the 2009 Maint. Fees. I was told they were already paid. Now I had budgeted about $1,000 for those fees and I was kind of surprised that they were already paid. In fact I was so surprised that I called back shortly before the end of January and again I was told that my account was up to date and no fees for 2009 were due. Again I could not believe my luck that I would actually be getting my 1st year usage for free. So I called again in either late Feb or early March because I still had that money set aside just in case. Again I was told that the account was up to date with no outstanding balance. I again specifically asked about the 2009 Maint. Fees and I was told that they were paid. I'm not sure what else I could do at that point in time but maybe I should have demanded that in writing.

Fast forward three months later. We are going to be using a different account for a reservation that I have in early July at Grand Beach and a close friend of mind inquired about possible going with us. I was delighted at the prospect because I still had my "free" 2009 use year available. I even offered it to he and his family for free since it had not cost me anything other than the purchase price at that point in time. So I called this morning to make the necessary arrangements and I'm told on the phone that there is an outstanding balance on the account and that the 2009 maint. fees have not been paid. Now I know that the maint. fees are significantly less than the amount the reservation taker is telling me. The maint. fees should be around $900 - $1,000 for 2009. I'm told my balance is over $1,400.00. She doesn't tell me any of the details but she does use the words overdue and interest, maybe some sort of penalties. So now I'm stunned, angry, and pissed off but I don't lose my cool because I know the resrv. taker can't do anything. I have to call accounting in Vegas on Monday.

WTF? So now I can't make the reservation even though I am told that one is available for the dates I need. I've had all day to think about it and I'm more pissed off now than I was this morning. How in the hell can they possible charge me a penalty and interest when they never sent me anything? No written acknowledgement that I was the new owner, no maint. fee bill, no overdue notice. How can you possible run a company so poorly? Now before you think I'm trying to get a free ride, that is not the case. I am more than willing to pay the 2009 Maint. Fees since that is what I agreed to. What I am not willing to pay is any sort of penalty or interest on a overdue bill that I was never sent! Nor am I willing to pay anything extra since I called them three different times and got the same message that the 2009 maint. fees having already been paid. I guess I will see what they have to say Monday morning but I have a feeling that it is not going to be a pleasant phone conversation. If this is the way they plan to treat an owner that is happy to pay his maint fees then they will never get another dime out of my pocket. Foreclose, take the deed, do what you have to do but you'll never hear from me again. And if you do it will be through my lawyers.

Stay tuned!

Y-ASK

[Y-ASK Member Find all posts View Profile Close Y-ASK]

By any chance, do you have proof that you called them three times?

What a great suggestion! I have my phone bill paid automatically and as a result I don't receive any sort of paper copy but they do keep the bills online and it just so happens that my cell phone shows a call made on Jan 21st to the FL resort number and again on Feb 26th. I'll use that as proof if I have to. I'm positive that I made the calls during the day time while at work. Guess we'll see what they say Monday morning but if I can't get any where I'll use the info. that Spence has provided. Thanks Spence...

Y-ASK

[Carlos Senior Member Find all posts View Profile Close Carlos]

No Escrow?

Jeff Shelton does take care of business. That's a good call. I have had unfair issues handled satisfactorily with him too.

I am surprised that escrow did not address the issue of maintenance fees. Usually that is a place where any funds owed on a property would be addressed.

CS

[Y-ASK Member Find all posts View Profile Close Y-ASK]

I am surprised that escrow did not address the issue of maintenance fees. Usually that is a place where any funds owed on a property would be addressed.

CS

Well it was clearly stated that the 2008 fees were paid and all accounting was up to date in early Nov. 2008. Usage would not start until 2009. Since there was nothing due at that time there would not have been any hold up with the transfer process and no need to collect the 2009 maintenance fees. I understood perfectly well what my responsibilities were and I set aside the necessary $1K for the 2009 Jan. bill. So I really don't think any sort of escrow was necessary.

The problem is one of communication and probably bookkeeping on the companies part. I kept that $1k in reserve for almost three months because I knew I was probably going to have to pay the 2009 Maint. Fees. I called not just once, not just twice, but three times in a 60-90 day period and each time I was given the same information, the 2009 maintenance fees were paid in full. So I'm just not sure what else I could have done. Most people would have called once then let it go.

I think the most significant problem is the lack of any kind of notice. I was never notified that the owner transfer process was complete. I never got any sort of bill for the 2009 maintenance fees and when the bill became overdue I did not receive any sort of notice. On top of that it appears that they are going to try and charge me some sort penalty which appears to be over $400. That is almost 50% of the total maintenance fees due. That much in penalty for overdue maint. fees seems kind of unreasonable to me.

I've complained about this issue before and I will again here. I just don't understand why this organization would not dedicate a few employees/funds to the task of welcoming new resale owners. I don't think it would take much to do, just a simple acknowledgement of owner transfer and welcome. Maybe a little detail as to how the system works, where to call for reservations, etc. It could be as simple as a two page canned letter. Why wouldn't you want to welcome a new resale owner who is hopefully going to be happy to pay their maintenance fees on time and in full. They wouldn't have purchased the property if they did not intend to use it. Again it's way too short sighted on the part of a company who doesn't really care about current owners and only cares about making new owners. What exactly was that $100 transfer fee to Diamond resort used for?


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[Spence Super Moderator Find all posts View Profile Close Spence]

I've complained about this issue before and I will again here. I just don't understand why this organization would not dedicate a few employees/funds to the task of welcoming new resale owners. I don't think it would take much to do, just a simple acknowledgement of owner transfer and welcome. Maybe a little detail as to how the system works, where to call for reservations, etc. It could be as simple as a two page canned letter. Why wouldn't you want to welcome a new resale owner who is hopefully going to be happy to pay their maintenance fees on time and in full. They wouldn't have purchased the property if they did not intend to use it. Again it's way too short sighted on the part of a company who doesn't really care about current owners and only cares about making new owners. What exactly was that $100 transfer fee to Diamond resort used for?Y-ASK

Here (where DRI monitors all our posts) and directly to many, many DRI personnel, I have said that a happy owner benefits THE Club and/or the resort. Happy owners pay their fees on time. Happy owners don't go in to default. Word of mouth at the resort goes a long way. The company makes scads of money on management fees that all owners pay and the more the company hikes MFs the more they make. Why they refuse to generally make resale owners welcome is beyound belief.

[bnoble Senior Member Find all posts View Profile Close bnoble]

It's not that surprising. What fraction of the company's income is fees, and what fraction is sales? My guess---the latter dominates.

[Y-ASK Member Find all posts View Profile Close Y-ASK]

It's 09:23 and I've been on the phone for about 15 min. So far here's what the charges are:

$140.80 - 4/9/09 Replacement reserve (told that is some sort of repair action to resort)
$25.00 - Late Fee (question is late fee for what?)
$31.94 - Interest on non-payment due
$79.65 - Real Estate Tax
$844.24 - Maint. Fee 2009
$266.00 - Overdue or something like that

Ask that they go thru each charge one at a time and got as far as the $25 maint. fee. I am now on hold... I'll update more after they get back to me...

OMG 58 Min later. They waived the $266.00 overdue fee, but not the $56.94 Late Fee + Interest. Needless to say I'm really angry now. But I sucked it up, regained control, and paid it. I'll write more after I cool down some.

Y-ASK

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

While it's getting better, communication within DRI still seems to be an issue. I am especially concerned that when the transfer took place, DRI was unable to recognize that fee's for your unit were due. Now it seems to be an effort for them to back track in order to tell you exactly why you owe what you owe. This is definately a concern as it makes one believe that their book keeping may be suspect at best. Hopefully, as they continue to digest all that was Sunterra this will be less of an issue in the future. For now it's best to keep a record of all transactions to aid DRI in locating the necessary information when there's a problem.

Of course, over time I've learned that keeping records is a necessity for almost anything. I've learned to keep files for a minimum of 5 years and, with every timeshare we own, I've kept records of all our dealings with them. Sometimes it's a pain but, every now and again it pays to have that information at your finger tips. Every timeshare we own has had at least one issue where my records have helped cut through the red tape to get to the real issue.

[Y-ASK Member Find all posts View Profile Close Y-ASK]

Here’s the interesting part of story. All of the charges above stem from the 2009 maintenance fees, not anything to do with the previous owner. I was told that all new owners whose ownership transfers take place during maintenance fee season have until April 1st to pay the bill instead of Jan 1st. Who knew!!!?

They actually have a record of me calling in late Feb and early March so no need to provide phone records. I also have documentation that shows a Jan phone call but at this point in time the “attempt to reach out” has been established.

I must admit that the 1st rep I talked to was new and needed to pass this one on. The 2nd rep was not that great to speak with. She kept interrupting throughout the entire conversation and I must admit I raised my voice once or twice. In the end she basically said she had no way of reversing the late fee and interest charges so why carry on.

Now this begs the question as to why would a company, who clearly sees this as being their fault, do nothing about the late fee and interest due? Do they want me to go away mad? Do they want me to not pay my maintenance fees ever again? Are they trying to get the property back so they can sell it again? It just doesn’t seem right to me that they think it’s ok to do this.

The bottom line is that they wrote off $266 of penalties but kept the Late Fee and Interest from a bill that I never received. Boy don’t I feel better….

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[Spence Super Moderator Find all posts View Profile Close Spence]

Well, my opinion is that the interest is the only fee that could stand. I would write the people I told you to write.

[Y-ASK Member Find all posts View Profile Close Y-ASK]

Well, my opinion is that the interest is the only fee that could stand. I would write the people I told you to write.

Yep! I did and have already received a response back. I'm waiting to see if they are going to credit the $56.94 in late fee and interest. At this point in time I've taken it as far as $57 bucks are worth to me. If they refund it I will let everyone know and if they don't I'll let you know as well. Frustrating but at least there is some light at the end...

Y-ASK

[Y-ASK Member Find all posts View Profile Close Y-ASK]

Looks like they are going to return the $56.94 late fee and interest. I just don't understand why it had to come to this much aggrevation. When I complained about the lack of any sort of notice I was told that next year the maint. fees are due Jan 1st and that I should pay them whether I get a notice or not. That's really reassuring .

Y-ASK

[Spence Super Moderator Find all posts View Profile Close Spence]

I just don't understand why it had to come to this much aggrevation.

Exactly.

When I complained about the lack of any sort of notice I was told that next year the maint. fees are due Jan 1st and that I should pay them whether I get a notice or not.

True.