Exit Strategy

[rapmarks Moderator Find all posts View Profile Close rapmarks]

any information on whether the weeks made it to the public? the auction was July 2015. pretty good idea and good deal

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

any information on whether the weeks made it to the public? the auction was July 2015. pretty good idea and good deal

I just found out about the auction program recently, and that was the first website I found about it.

I do know that not all the weeks at your favorite Englewood resort went to owners . . . some went to the public and some are still available.

The company, Cunningham Property Management, handles several resorts.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

This looks like the weeks that made it to the public, complete with final bids:

http://www.vacationfla.com/docs/LG_a...ction2015.html

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

I have successfully deeded back three timeshares to the HOA and they charged about $400 for each week. Another went into foreclosure because they changed the address for some reason and did not send me a bill. It didn't take them long to go after me. I didn't realize it was not paid for until a collection agency tried to collect as they were able to figure out the correct address. When I contacted the resort (and RCI plus resort - now Wyndham) to find out what was up was when I found out they changed the address for no apparent reason. I told them I always paid in full annual and faithfully they did not care. Since they sold the debt to the collection agency they would not do anything about it even though I was willing to pay for it. They didn't care. I told them to suck on it. Yeah it went on my credit report. But it looks silly compared to my stellar credit. FICO is now high as ever.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Anyone wanna compare FICOs?

No bragging, just comparing.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

http://www.redweek.com/resources/ask...da-predictions

Pretty forthright summary of the situation.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Couple of years behind on reading ?

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

http://www.redweek.com/resources/ask...da-predictions

Pretty forthright summary of the situation.

Some rather surprising words from the "Industry":

"major changes must be made to help aging legacy resorts"

"The American Resort Development Association (ARDA), the industry's lobbying arm in Washington, has launched a series of initiatives to help owners (and resorts) unload timeshares that have little or no value on the open market."

"The developer community is not without some dirt under their nails in this. We've created a business model that needs recycling," said Howard C. Nusbaum, ARDA's president and CEO. "We want to help the secondary market. For self-perpetuity, it's insane not to have a healthy secondary market."

"hundreds of "legacy" resorts that are nearing the end of their economic lives and headed for a bulldozer"

"according to Nusbaum, the long-term outlook is improving because the largest timeshare companies are developing programs that offer exit strategies for their owners."

"This is a legacy problem," Nusbaum said. "People buying a timeshare today are buying it from multisite clubs that have management forever and sales teams forever, so the ability to recycle inventory will not be a problem in the future."

"The problem is getting better managed at the top of the funnel, and we're finding some solutions at the bottom. What we're going to have left are the dead cats," he said.

"The US timeshare market includes 1,550 or so resorts (100 dead cats went away last year). Approximately one third fit into the "legacy" category, a polite description for older sold-out, deeded-week resorts that have quietly slipped into disrepair or the brink of insolvency as their owner base reached retirement and beyond."

"No surprise, then, that the owners at these resorts are unable to sell their timeshare on the secondary market and, worse, willing to walk away from their maintenance fees. Some of these resorts have default rates of 20 percent or more."

"But their outcomes, because of economic market forces, are already determined: in time, they'll disappear."

"ARDA is hosting best practices workshops for HOAs that don't have the resources or expertise to manage their own resale and rental programs. Many of these sold-out resorts are declining in value, because of location, and losing revenue as owners decline to pay maintenance fees. Rental and resale programs, or trade-out agreements with travel clubs, seem to present the only way to reverse the downward spiral of increasing costs and decreasing revenues at legacy resorts. In late July, ARDA expects to publish an HOA Resale Guide that outlines the best options available to resorts, management companies and owners. "

"Most brand-name timeshare companies, such as Marriott and Wyndham, are quietly sponsoring or experimenting with resale and buy-back programs that give members a respectful exit strategy from a lifetime of ever-increasing maintenance fees."

"All this activity is a far cry from when major companies talked about problems in the secondary market --- problems that were foreseeable and inevitable because of the aging base of original buyers --- but didn't do much else. Now the focus has shifted to activism as more and more retail timeshare sellers recognize, in the aftermath of a multi-year slump in timeshare sales, that their financial health is tied inexorably to the sustainability of the overall market, which includes a bigger and growing slice of resales."

""Our industry is 35 to 45 years old. Thirty years ago you sold to someone who is 50. Today they're 80 and their travel needs have changed, their lifestyle has changed. They need to quit using a product they love. But it's not like an old TV where you just throw it away. It comes with maintenance fees, so you need to recycle it," Nusbaum said."

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

http://www.redweek.com/resources/ask...da-predictions

Pretty forthright summary of the situation.

June 2014 article.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Yeah, it's been a problem for awhile . . .

Still is.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Old-ish or new-ish, this is the first time I have seen a noteworthy industry person admit publicly the real situation, that so many resorts are in such dire straits. Dead cats!!! Wow!!!

The problem is likely two years worse now, not two years better.

It also echoes what I have been saying, that if a legacy (industry word, not mine) resort does not have a rental program and a resale program, or does not have any rental or resale value, the clock is ticking and the bulldozer is warming up.

Actually, I have never gone as far as considering the bulldozer; it is HOAs not dealing properly with an aging and disinterested ownership group that causes that.

There are not many more older, worn-out, independent legacy resorts with aging ownership than the little Mom and Pop Capstran (and similar) resorts in SW FL, and most, if not all, of them have dealt with this issue positively, at least the ones I am familiar with. It helps that they have some value in the real estate market, whether or not they are timeshare.

Can anyone share the story of an old, worn-out legacy resort that has sued and foreclosed and attached liens back into prosperity?