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Original Message:
Deedbacks make sense (by R P.):
ken1193 wrote:1. When a timeshare is purchased via loan, that loan is most certainly a personal liability. Defaulting on that loan will have immediate legal (and credit report) consequences.2. When a timeshare is owned "free and clear" (i.e., no loan), the maintenance fee is certainly an associated financial obligation, but not a personal liability of reportable or credit consequence UNTIL AND UNLESS...
3. Foreclosure is ultimately initiated as a result of unresolved non-payment of fees. This foreclosure action is a legal proceeding of reportable (and credit impact) consequence.
If an owner is in arrears paying his maintenance fees for a few years, then the resort/HOA can foreclose and that foreclosure will affect the owner's credit rating even if there is no mortgage.
Ken, you've been reading Tug long enough to realize the above, as it has been report many, many times. And not only can a resort/HOA foreclose, the owner can be made to pay all legal fees involved plus all back maintenance fees.
A resort is not in the business of taking back deeds. That would be like cutting off their noses to spite their faces ..... they'd be left with weeks with no fees coming in and weeks that couldn't be re-sold due to non-interest.
I'm surprised Timesharing Today would even conjure up something like that article as they should realize that maintenance fees are the bread and butter and backbone of all resorts.