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Re: Sell or not pay (by R P.):

carvana wrote:

I have always said that the failure to pay maintenance fees will ultimately lead to a foreclosure and the foreclosure will adversely impact the credit rating. What I have advised is that this negative impact can be avoided with a deed in lieu of a foreclosure.

The vast majority of resorts will not take a deed back in lieu of foreclosure or for any other reason.

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If the timeshare had any value when it was sold you can bet the resort would take a deed back for $1 and resell the timeshare. Resorts that sell worthless timeshares certainly will initially refuse to take a deed back because they recognize the negative value. Try a deed back for $1 to a Marriott or a Hyatt and see how quickly they jump on it. The industry needs to weed out those parasites that sell worthless timeshares.

It must not have been worthless if you bought it in the first place. Why would you pay good money for a worthless timeshare?

Marriott is not enforcing ROFR (Right of First Refusal) in this economy for many of their resorts. Marriott and other high end timeshares are selling for pennies on the dollar on Ebay. It's being discussed at this moment on Tug.

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I advise to one with a worthless timeshare coupled with an inability to pay the maintenance fee is to work with the resort and negotiate a deed back even if you have to pay the resort to take it back as James (see post above on this topic) did.

James' situation was rare and does not happen with the vast majority of resorts ...... he was lucky even if he had to pay the resort to take back his week.

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Your advice on the other hand is that if stuck with a worthless timeshare just continue to pay the maintenance fees into infinity because those fees are the "bread and butter" of the parasitic resort that sold a piece of junk to you in a high pressure environment in the first place.

It's not the resorts fault that you deem your timeshare worthless. Since you spent good money on it in the first place why is it now all of a sudden worthless ..... just because you can't sell it and you want out from under paying yearly maintenance fees?

I live in a community that is managed by an HOA (my husband is vice president). If we merely quit paying maintenance fees (yearly road and well fees) the HOA would hit us with a lawsuit in a NY minute and I wouldn't blame them. If it wasn't for our community's yearly HOA fees there would be no well maintenance (there are two wells) or road maintenance.

Last year lightning hit one well and shut it completely down. The well company had to come out and repair it at high cost. This is what maintenance fees pay for, to maintain a resort or a HOA managed neighborhood.

In this economy, we could say that our home was worthless since zero real estate is selling around here. Do we merely quit paying our yearly maintenance fees because our house wouldn't sell in this market. That's your rationalization .... if it cannot be sold, then it's worthless.

You seem to think that timeshares (just because they are a luxury purchase) aren't ruled by the same principles as anything else one purchases that has ongoing fees. This truly astonishes me.