Foreclosure question?

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

Does anybody know what would happen if you don't want your timeshare anymore and you can't sell it but don't want to pay the maintenance fees?
Can you just deed it back to the resort or let it go into foreclosure? How do associations handle their timeshares in default? Does it depend on the state you live in and is this a common problem? I'm sure with this economy many people want to get rid of their timeshares. If the unit is free and clear does it matter if it goes into foreclosure? Just curious because my friends have been asking me lately and honestly I'm clueless with timeshare legal stuff even though I'm a licensed realtor.

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

It varies with the resorts. some take deedbacks, some foreclose others go after you for the money.

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

It varies with the resorts. some take deedbacks, some foreclose others go after you for the money.

So how long can they go after you for maintenance fees if you don't pay them? Do they wait years or months to foreclose? I would imagine the legal fees would cost more than the maintenance fees and that they'd be willing to take back the deed but maybe I'm wrong.

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

From a discussion I had with a resort manager, it was easy and low cost to foreclose on a delinquent unit.

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

So how long can they go after you for maintenance fees if you don't pay them? Do they wait years or months to foreclose? I would imagine the legal fees would cost more than the maintenance fees and that they'd be willing to take back the deed but maybe I'm wrong.

They can basically go on chasing the debt as long as they like. The legal fees can also be added to the debt in many cases so the cost won't fall on the company/resort.
There is generally little or no benefit, an potentially a huge downside, if resorts are seen to be too ready to simply take back deeds. Anybody who simply didn't want the unit any longer would see it as a simple matter to walk away, and the remaining owners would end up footing the bill for the cost of running the resort.

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

But on the other hand, delinquent units with little chance of paying up, need to be taken back so the resort can hopefully resell or rent out the units. The resort can still go after what was owed after foreclosing.

[warddrake8989 Junior Member Find all posts View Profile Close warddrake8989]

foreclosures, are they really possible?

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

foreclosures, are they really possible?

Yes, it happen everyday. Once you pay off, it is your property, the HOA has to go through foreclosure to take it out.

As to if the HOA will continue to take you on the money it loss during the process? It is unknown, nobody has the statistic.

Jya-Ning

[tonik Member Find all posts View Profile Close tonik]

Foreclosure

At Driftwood Resorts last year, they had a bunch of foreclosures that people were bidding on. It was gone in one day but since it is a deeded property, I would assume if you owe money on it, they will come back for deficiency, which is the amount owed minus the amount collected. I am sure they can come back to you for the maintenance fees and even take you to court where they can get a judgement against you. Of course, this is the worst case scenerio but I would definitely make an effort to sell the timeshare.

Next time I talk to Driftwood, I will ask what they did on the foreclosures. I am an ex banker and now a realtor so I deal with people's credits, i.e. find out that someone has a judgement or lien on properties, etc., etc. It is getting worse every day it seems.

Where is your friend's timeshare and how much does she owe? Maybe someone here maybe interested?

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

She owns a unit in Liki Tiki in Orlando. She doesn't owe anything on it just wants to be done with the resort.

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

I'm guessing she could dump it on ebay, provided it's not a mid-September hurricane week or something. That's not a half-bad resort.

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

I'm guessing she could dump it on ebay, provided it's not a mid-September hurricane week or something. That's not a half-bad resort.

No i'ts a mid summer week. She's got kids in school still. It's a 2 bedroom too.

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

A mid-summer 2BR at Liki Tiki---it should be possible to firesale that on ebay for $1 as long as it's not too far into August. If she doesn't want to bother, one of the reputable "donate your timeshare" places might well take it for no cost.

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

No it's not August but July. I think she paid $1500 for it 2 years ago.
I'm not even really sure why she wants to get rid of it yet since she tells me she has never stayed there.

I'll let her know about the donate to a cause companies.
I've told her to donate it and take the tax deduction but she didn't want to for some reason. I would donate it myself but I guess it's just laziness on my part.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

she can also talk to resort management company see if they will take deed back.

But I am pretty sure it will sell in eBay.

Jya-Ning