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The "secret scheme"..... (by Paul T.):

carvana wrote:

warrenf22 wrote:

jayjay wrote:

warrenf21 wrote:

The proof most companies give and the only real proof any one could give is a copy of the recorded deed that is out of their name.

Why would resorts work with companies that help out those who fall behind in their fees. Simple, they hold a hammer over them and try to collect, but eventually, you have torealize that the debt will be so great, that there is no way anyone is ever going to pay on it. Though they will try and some times work a deal if it benefits them. Once a company comes along and takes one that is in serious debt. The resort knows that it was done in business and the debt is protected, at this point some resorts will secretly take them back, while they wouldn't do it when the original owner owned it, because they thought there was a chance that they could get something. Now, they take them to find new owners wheree they can collect MF from. Secret, those MF is quite profitable, so it is better to take back the unit to get more MF than to just let one sit wheree nothing can be collected.

Your business model still doesn't make sense. Why would a resort have you be rewarded with $300 for taking over someone's deed? Sounds to me like a money making machine for you and then you never have the deed recorded in another name (if so, whose name). I don't think reputable resorts work like this.

Who's to say the week could easily be sold by the resort if the original owner had to pay you $300 to take it (in other words give it away to you plus $300). Sorry, I don't buy this scheme.

As I mentioned above, the resort could easily take deed backs without you involved.

When some one pays a company to take a unit from them they put the unit into their companies name. This isn't a scheme but a legitimist real estate transaction. How it is done by these companies is in this way.

I, you, a trust or a company will or can buy any piece of real property, including timeshare units. You can buy them for $1.00 as a monitory fee must be paid to make a purchase, called the buyer, which again can be any entity, person, trust or corporation. The buyer buys the property from the seller and deeds the property into the buyers name. The seller is no longer connected to the property in any way shape or form and is in no way responsible for what ever the buyer does or does not do with said property.

Now with any real estate transaction there is paperwork and fees that need to be paid ie Closing, these fees can be paid by the seller or the buyer or both. In the case that you described above, the buyer demands his choice and demands the seller to pay it. So the seller pays the closing and the buyer buys the property for $1.00.

And no, they are different entities, even though one might work for both, how ever the paperwork is not done by the buyer. Thus making a complete legal real estate transaction where the seller is free of said property.

The real issue is what a company does that takes these indebted or sometimes completely free of debt with weeks available. Some claim, that it is fraudulent as we have no intention of ever using or paying any fees on them.

Well it is strictly business. We make a fee up front, some quite large, who way over charge, my opinion and others who try to do it at an affordable rate. No we have to try to get rid of the units and selling them, well really isn't an option as it costs more than you will make, which is why we got them in the first place. that is why we do work with the resorts that are willing to do so, hate us they may, but realize that we are a part of the industry and will be until such time as the resorts or someone else in the industry make second hand units marketable.

Last I would like to say Yes, the resorts could take back their units if they wish, but the won't. They will hound you to the end of the earth to get what ever they assessed you for. They know your bank, CC#s, SSI#, place of work, home #, Work #s and Cell #s They will put you into collection agencies, charge you late fees and collection fees. That $500.00 MF can become over $1,000 very quickly. The resort can make special elements, I have seen several this year that wheree over $2,000 plus their normal MF. now while they can hound you till they get money from you and get what ever they deem appropriate, why should they just take back any units. They have no reason to. You want to talk about the ethics of business that help people out of being chased by these resorts. Sorry, the timeshare industry, from the people selling them, running them or even giving you a place to try to sell them are all out to make money and really could care less about you. You are on your own. There is no refund if your unit doesn't sell here on Redweek, how ever they for filled their obligation by advertising it for a year. Truth, they might not want you to sell it as then you will have to pay again. Look at all the money people are making, just because you own a timeshare.

Well again, some companies came into existence to for fill a need. People who cant sell them who want out, now have a way out. The price ranges from $300.00 to $3,000.00 that I know and have herd of. Then we force more reputable resorts to take their units back and declare bankruptcy on the rest.

Warren,

I now understand your business model. You are an "El Cheapo" version of a Postcard Company. The high end PCC firms charge $3,000 plus and insist the timeshare be free and clear of the purchase mortage as well as any MF or special assessments. You on the other hand charge only $300 and don't care how much is owed in past due maintenance fees and special assessments.

Here is how you operate:

1. You set up a sham corporation and title the acquired timeshares in the name of the dummy corporation. Thus, you "seek" to shield yourself from any personal liability and any risk to your personal credit.

2. You then demand the resort take a "deed back in lieu of foreclosure". Some resorts will take a deed back realizing the futility of dealing with a sham corporation and others proceed with a foreclosure. The foreclosure does not harm your personal credit or reputation. Either way you make $300 less expenses without any personal exposure.

3. You assume and usally correctly that the resort will not spend money in legal fees to "pierce the corporate veil" and go after you personally. You also assume and usually correctly that the resort will not pursue criminal fraud charges against you. That would be time consuming and require a corporate officer to testify in court.

In my opinion, your operation is a criminal fraud upon the timeshare industry and that you have indicted yourself with your most recent post in which you admit taking the timeshare with no intent of ever paying the maintenance fees. That is an admission of a fraudulent intent. I suggest you seek criminal legal counsel.

'' I've never quite understood why Owners or wholesalers don't repackage a discounted or negotiated brand name Maintence with resorts and repackage a secondary market properly. Surely resorts would rather keep contract sold on the books and collect from new owners ... more sensible than all this exit releif BS