Post reply

Re: Fairfield Problem (by Mary D.):

stanleyf5 adahiscout

stanleyf5 wrote:

jayjay wrote:

adahiscout wrote:

Do some elderly owners WILL a timeshare back to the developers to clear the debt from their estate? MD

I sincerely doubt that a resort would take a willed timeshare back. If resorts took deedbacks they would be swamped with unwanted weeks with no maintenance fee income from those weeks (re: the millons of timeshares for sale on the resale market).[A possible method would be to set up a corporation with yourself as the sole share holder. Transfer the timeshare properties to the corporation for stock. Purchase new stock each month to pay the maintenance fees. If the timeshare becomes worthless, have the corporation become bankrupt. The timeshare developer can only look to the properties for the monies owed by the corporation. Major corporations usually have over a hundred corporation in their corporate umbrella to minimize losses due to unforseen circumstances. After Katrina, Entergy declared bankruptcy, and the parent company loaned it $200 million dollars, the parent company was then first in line to collect its money after the bankruptcy. If it works for the huge companies, it should work for the little guy. You need an attorney to do it correctly. If you are bleeding dollars, the cost to set up the corporation may be worth it. Stan.[/Q] ======== Fascinating. Complicated. Expensive. And, as you say, it seems to require the timeshare to become "worthless" so that the corporation can become bankrupt. That would be the deal breaker in most cases. The problem is not usually that the timeshare actually became worthless. Just that circumstances may make it unaffordable or unusable to the owner. Kind of like a Dream House built on Love Canal. (Or is that reference too old for most of you to get?) MD

Hi It does not have to be wothless, just of value such that you don't care if you lose it. Entergy was not worthless it was worth billions of dollars. Entergy simply had a cash flow problem, and a liability problem, which is why they declared bankruptcy. Compared to paying maintenace fees for years for something that you made a mistake on will cost more than setting up a corporation. Stan.

I'll take your word for it, Stan. Still sounds a bit mind bending! MD