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[Q=jayjay] [Q=carvana] [Q=jayjay] [b]CPA DAVEM FROM TUG CONCERNING THIS ISSUE: [b][i]"If you buy your own home, you're responsible for the maintenance, repair, roof replacement, landscaping, utilities, etc. Similarly, if you buy a condominium, the condo association pays for all of the expenses you would normally have paid for a single-family home, except that you'll pay for some of the utilities yourself. The condo association charges each owner a fee to provide funds to pay those expenses. If you (and perhaps some other owners) stop paying your condo fees, the condo association will not have enough money to cover expenses and the property will soon be in a shambles. Thus, condo associations are formed in a manner such that acquiring ownership in a condo legally obligates the owner to make the required fees. Doing otherwise would make the financial arrangements for condos completely unworkable and condos would not exist. A timeshare resort is set up exactly like a condo association. The primary difference is that instead of one owner for each condo unit, there are usually 50 or 51 owners for each condo unit. Thus, in order to make a timeshare resort financially viable for both you and me, we are each legally obligated to pay our maintenance fees on units we own." [/i] Dave M[/b] [b][i]"Because you are legally obligated to pay the MFs, based on the legal documents (called CC&Rs) to which your ownership in a timeshare resort or condo association is subject, any or all of the following can and often do happen when an owner stops paying: The delinquent payments are reported to credit agencies, as Werner accurately states, damaging the owner's credit rating. The resort adds late fees and interest to the unpaid amounts, as entitled by the CC&Rs. The resort turns the unpaid amount over to a collection agency, which adds its own fee as it collects the unpaid amounts. Finally, the resort turns the unpaid amount over to an attorney, who might send a warning letter and eventually files suit for collection. Based on the wording in the CC&Rs, the owner, instead of having to pay $500 or so for the annual maintenance fee, must now, after the court judgment, pay upwards of several thousand bucks in maintenance fees, interest, late charges, collection fees, attorneys fees and court costs. Still there are a few resorts that won't bother with strenuous collection efforts and will, in fact, start foreclosure proceedings to take back the week. There are other resorts that, if contacted, will be willing to take a week back. However, to simply stop paying maintenance fees and hope that the problem will go away would be foolhardy. "[/i] Dave M[/b][/Q] The initial question related to free legal advice from an attorney and not second hand "legal advice" from an accountant copied from another blog. A vague reference to legal documents without explicity is meaningless. Suggesting that a $500 maintenance fee can escalate into a multi-thousand dollar judgment is ludicrous. Certainly it is important that folks pay their MFs for timeshares to remain viable for all of us to enjoy. I own three timeshares and will always pay my fees and assessments but I am not so calloused that I will shrill for resorts with bogus claims of what can happen to one who experiencing a financial hardship finds it impossible to continue to pay their maintenance fees. Suits for maintenance fees are a public record. I challenge anyone with an interest in the topic to go to an area with numerous timeshares and check the public records to determine the frequency of suits to reduce delinquent maintenance fees to judgments. Such research will show that such suits are rare. Of course, the public records will show frequent timeshare foreclosures as well as many deeds in lieu of foreclosure. Resorts will threaten all manner of dire steps to collect delinquent MFs but ultimately they will accept a deed back to avoid legal expenses and for a quick means of getting a non-performing timeshare into the hands of a new buyer who can and will pay the MFs. Such action reduces their overhead and ultimately works to the benefit of the rest of us who pay our MFs.[/Q] [b]DaveM is well versed in ALL areas of timesharing and he researches his answers thoroughly before posting. I trust his judgement and his posts. He has clearly outlined in the post above what happens, contractually, if a timeshare owner stops paying their maintenance fees and I stand by what he states. I don't see how any attorney can alter what is stated in a signed contract .... sorry. The only solution I see is the owner contacting the resort, stating his situation and asking if they would take his deed back ..... however that is highly unlikely as millions of timeshare owners would follow suit (as is evidenced in the millions of timeshares on the resale market) leaving a resort without financial support (maintenace fees). Resorts would simply collapse if such a scenario was successful.[/b][/Q] DaveM is well versed in ALL areas of timesharing and he researches his answers thoroughly before posting. I trust his judgement and his posts. Response: I do my own research and address only issues with which I have personal knowledge and/or experience. I certainly don’t copy the work of others without securing their authorization and I would certainly include their complete name for verification purposes if I did use their words. . I don't see how any attorney can alter what is stated in a signed contract .... sorry. Response: This is, in my opinion, a very naïve comment. Certainly an attorney cannot alter what is written in an executed contract but attorneys earn fortunes interpreting what the words in contracts mean. The only solution I see is the owner contacting the resort, stating his situation and asking if they would take his deed back . Response: This is exactly what I suggested. My suggestion was directed to those who face a financial hardship and own a worthless timeshare that cannot be given away because the maintenance fees exceed the fair rental value of the property. .... however that is highly unlikely as millions of timeshare owners would follow suit (as is evidenced in the millions of timeshares on the resale market) leaving a resort without financial support (maintenace fees). Resorts would simply collapse if such a scenario was successful. Response: To suggest that millions of timeshare owners would deed back their timeshare if they could is hyperbole to the max. Timesharing is a thriving industry growing by leaps and bounds and most owners are very happy with the experience and would never dream of just giving their timeshare back to the resort. I own three timeshares that are like those being sold by the developer for in excess of $20,000. My resort would be ecstatic at the thought of getting these timeshares back for zero dollars. Ain’t going to happen. This is my last post on this subject, so, Jayjay, you get the last word!