Article states that 40% of owners at David Walleys did not pay 2010 dues..

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

It's not always easy to determine what the ultimate cause is for instances such as this.

Because Celebrity is involved and has a bad reputation of heavy handed tactics against owners, it's easy to point the finger in that direction but it may not be the case.

Abandonment is also one of the big concerns I have with the "pay us to take your timeshare" business model.. When those companies shut down their operations and abandon what could potentially be hundreds of intervals, the impact on the association and the other owners can be disastrous!

There have also been recent cases were well known resellers (who bought and sold in their personal or business name) have simply been unable to survive the market slowdown. I know of one respected reseller who shut down her business and abandonded about twenty weeks.

Finally, I've also seen instances where a well meaning board of directors at an owner controlled resort has instituted a policy of accepting deedbacks, without creating a liquidation plan to resell those weeks. All of a sudden, there is a high number of vacant weeks which begins to increase annual dues for all the other owners.

Ultimately it's a snowball effect- more owners want to abandon their weeks to get away from the higher fees, which just results in lower resale prices and ever increasing fees for the paying owners..

I agree that terminating the timeshare regime can be a viable decision. But it can be extremely hard to do! You can review this old thread on the subject:
http://www.timeshareforums.com/forum...timeshare.html

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

Sounds like 40% would not object to it folding. It would not take many more for it to be a majority.

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

.....The problem I see is if the resort makes owners who are paid up cover losses because of non-paying owners this is ridiculous!...
PHILL12

You might want to take a good look at your MF bills. Every timeshare we own has a bed debt expense. At two of our resorts, that expense increased nearly 900% over last year. That expense line is what you're paying to cover the non-paying owners. Sometimes it's a legitimate reason such as being laid off. Other times it's the financial guru's that advice stratigic defaults that tosses the expense onto everyone else. When I read the likes of the Wall Street Journal promoting defaulting on loans under certain circumstances it tends to make me mad. Exactly who do they think it going to pay for those defaults in the end? The bank certainly isn't going to eat the loss that's for sure.

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

They could just throw in an SA. One of the most powerful tools they have.

The remaining owners are baulking at paying the SA. If they don't pay, the resort will close. I'm afraid if I owned at this resort I'd vote the SA down and say let 'em close.

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

W ow, Doug and I are close to agreement.

[PHILL12 Senior Member Find all posts View Profile Close PHILL12]

You might want to take a good look at your MF bills. Every timeshare we own has a bed debt expense. At two of our resorts, that expense increased nearly 900% over last year. That expense line is what you're paying to cover the non-paying owners. Sometimes it's a legitimate reason such as being laid off. Other times it's the financial guru's that advice stratigic defaults that tosses the expense onto everyone else. When I read the likes of the Wall Street Journal promoting defaulting on loans under certain circumstances it tends to make me mad. Exactly who do they think it going to pay for those defaults in the end? The bank certainly isn't going to eat the loss that's for sure.

So far we have been lucky owning up the hill from Walleys. At the Ridge Tahoe both my units went up only $5.00 from $884 to $889. Found out we had no increase but the Nevada tax went from $39 to $45.

PHIL

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

So far we have been lucky owning up the hill from Walleys. At the Ridge Tahoe both my units went up only $5.00 from $884 to $889. Found out we had no increase but the Nevada tax went from $39 to $45.

PHIL

That could be good or bad. If the line item for defaults was held at the same level but, if defaults go up because of a worsening economy, next year could be as ugly as David Walley's situation, although I sincerely doubt it.

I look at it this way. If they increase the funding in anticipation of defaults but, those defaults don't happen, then the budget for next year will have a surplus and MF's can either remain the same or decline. I'd rather have a little extra money set aside than face a situation where one of my resorts suddenly asks me for what amounts to an extra MF, not for improvements but just to cover someone elses debt.

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

Article states Walleys will stay open, and Celebrity board members removed!

Association: Walley's will stay open | RecordCourier.com


Sounds like a win for the association!



The article states that the $900 special assessment proposed by Celebrity is "dead" and then also states that "...association representatives said they believe that up to $1 million is missing from the association's operating accounts"....

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

Two Celebrity board members voted out and questions over Celecrity raiding the cash funds of the resort aren't putting Celebrity in any better light than they've been in before. Celebrity appears to be one dirty dog of a management company in this article. It will be interesting to see what a judge decides once Celebrity responds to the accusations of accounting irregularities.

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

Gosh, who else has been guilty of accounting irregularities?

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

Stand by for more...

Two Celebrity board members voted out and questions over Celecrity raiding the cash funds of the resort aren't putting Celebrity in any better light than they've been in before. Celebrity appears to be one dirty dog of a management company in this article. It will be interesting to see what a judge decides once Celebrity responds to the accusations of accounting irregularities.

With Celebrity Resorts having now formally filed for Chapter 11 bankruptcy, it might soon become even more interesting if / when other "unusual accounting" practices within other Celebrity resorts potentially come to light...

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

With Celebrity Resorts having now formally filed for Chapter 11 bankruptcy, it might soon become even more interesting if / when other "unusual accounting" practices within other Celebrity resorts potentially come to light...

This could be one of the more interesting cases and, as pointed out by JLB, there are others out there who could be affected by any significant investigation into how timeshare management companies handle their responsibility's. While I really doubt it, if things look bad enough with Celebrity there could be collateral damage for all the other management companies opperating in the U.S.

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

Link to resort website for updated info on David Walley's Resort

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