Yikes $2000 special assessment!

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

What happens if one doesn't pay the assessment? What is worse case scenario?...

The resort could go after you for the money and ruin your credit rating, but that doesn't necessarily mean that they would.

You could tell the HOA that you can't afford the assessment (or that it isn't worth it for a week 9) and see what they say. If nothing else, that might put you in a better bargaining position if you try my suggestion of asking for a red (or "pink") week in exchange for your $2000.

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

A special assessment means either some extreme situation occured, like a hurricane, or the HOA did not maintain proper reserves. Slashing reserves is too often a tempting place to balance HOA budgets, but it will catch up to them in the end. It is much better to have a professional Reserve Study done, and then stick to the amounts that it says you need.

How long has VRI managed this resort? If they have been there for a substantial period of time, then such a special assessment would raise some questions about their management ability, but they may have just recently taken over.

How is VRI generally about special assessments?

At both of the resorts I own at in the US as well as one of them overseas, the members have to vote on a special assessment. This is an excellent safeguard against excessive special assessments.

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

I own everything I have and pay cash for everything else. So, I am noy worriedabout my credit rating. However I would like to know if I were sued, would it have to be in my home state or could they sue in Rhode Island. I don't need a lawyer(always wanted to be one) but it would be alittle inconvenient to have to travel from New Jersey, but not impossible. If I lose it is the same as paying assessment.Any comments

[Republiman Member Find all posts View Profile Close Republiman]

I own everything I have and pay cash for everything else. So, I am noy worriedabout my credit rating. However I would like to know if I were sued, would it have to be in my home state or could they sue in Rhode Island. I don't need a lawyer(always wanted to be one) but it would be alittle inconvenient to have to travel from New Jersey, but not impossible. If I lose it is the same as paying assessment.Any comments

If you lose it will most likely not be the same as paying assessment. You may be required to pay court costs and other collection costs.

While I can't speak from experience, I think it is likely you will lose. I have a friend who owns two weeks at Tanglwood who was tired of paying maintenance fees and then wanted to give up the weeks. He was threatened by the HOA with legal action and backed down.

Mind you, this fellow is a litigator who retired from Skadden Arps, a MAJOR law firm. If he didn't think he was going to win, I doubt there is much of a case.

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

How long has VRI managed this resort? If they have been there for a substantial period of time, then such a special assessment would raise some questions about their management ability, but they may have just recently taken over.

How is VRI generally about special assessments?

I can't answer for Oceancliff or Foxrun but VRI manages Cape Winds and there was also a special assessment ( I bought during the last year of it so only paid a third and knew about it going in.)

VRI was brought in to manage a badly run down, shabby resort. One year later the special asessment was brought. Two years after that most of the unit refurbishment, new roofs were completed. The third year the pool was redone. The resort is now probably one of the nicest non-waterfront properties in Cape Cod and the MFs have remained steady since I've owned there.

There IS an additonal $20 odd dollar fee on my bill each year that is earmarked to replenish the reserve fund.

VRI also has done an astounding job on Lake Placid Club.

IMHO they are a very good mgmt company.

IF the OP can manage to swap their Blue week for a pink week it might prove to be very worthwhile. If not, list it for $1 on ebay at no reserve and someone will take it.

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

I own everything I have and pay cash for everything else. So, I am noy worriedabout my credit rating....

Ebram, bear in mind that your credit rating affects a lot more than just credit. These days, credit ratings are used for everything from hiring decisions to insurance premiums. A report I read recently (I think it was in Consumer Reports) said that some auto insurance companies now charge more than twice as much to people with poor credit ratings. Credit ratings are a big deal, and getting more important all the time.

I'm not sure what your goal is -- are you just trying to get out from under this week (and its special asessment), or are you hoping to hold on to your week without paying the special asessment? If you are hoping to hold on to the week without paying, I don't think you have much chance at all. Of course, if the HOA agrees to take your week back, you may be able to pick up another early spring week in a year or two at low cost -- maybe even by buying one from the HOA!

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

On the topic of credit ratings, I saw this in an article about airline security. It seems that the TSA would like to make credit ratings one of the factors used to decide how much screening each passenger gets:

"The mathematical scores used for CAPPS II would assign a color code to the boarding pass of each passenger.
A green code would allow passengers to move through routine airport security checks. A yellow code mandates "secondary screening," such as waving a hand wand over passengers' bodies to detect metal objects. A red one means that the passenger is forbidden from flying.
The score would be derived at least partly from financial records, such as credit-card transactions, bank withdrawals and home mortgage payments...
The American Civil Liberties Union has filed a lawsuit against the Department of Homeland Security to block use of CAPPS II. The ACLU says the system discriminates against low-income persons with poor credit ratings."