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Deedbacks redux (by KC):

jayjay states in relevant part: >> 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. <<

Yes. You've essentially echoed back what I have already clearly stated in point #3 of my post above. There is no disagreement on this; you may wish to reread point #3. And by the way, some resorts don't even wait "a few years". One Texas resort I know of acts in the very first year of delinquency of account. =================================================

Re: >> And not only can a resort/HOA foreclose, the owner can be made to pay all legal fees involved plus all back maintenance fees. <<

Alas, this is a pipe dream. The (now former) owner, in the aftermath of foreclosure proceedings, can be "made" to do nothing whatsoever. ===================================================

Re: >> 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.<<

True only in part. Some resorts with which I am personally and directly familiar which choose to accept (some) "deedbacks", promptly offer those weeks to existing owners in "sealed bid" internal auctions, with no minimum bid amount. An open minded HOA knows that the best possible market (with direct, free access) for resales is often among the current (paying) owners at the facility; people looking to extend their existing ownerships for an outlay of mere "peanuts". When that occurs, that particular week promptly leaves the ranks of the "delinquent accounts" and joins the ranks of the "paying owners" instead. Exactly such a program seemed to consistently work quite well for years at one (middle of the road, not a high demand) resort where I formerly owned (albeit in an economy in better shape than the one in which we are currently mired). ===================================================

Re: >> 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.<<

With due respect, that's a somewhat narrow, limited viewpoint. Foreclosure is both a time consuming and expensive process. No fees are coming in, but expenses are going out --- and the calendar pages flip forward all the while. In the right circumstances, "deedbacks" can (and do) work. I have seen first hand proof of this for myself at my own (former) resort. It's certainly not a universal panacea of any sort for delinquent accounts, but there are certain situations and circumstances where deedbacks do indeed make sense --- good sense.

I have now provided ALL of the input I intend to offer on this topic in this thread. Having provided my input, I harbor no personal need to somehow "have the last word". That said, I have no doubt whatsoever that someone else here will, without any measure of objectivity, informed rational analysis, or first hand experience with the subject, feel predictably compelled to (once again) "have the last word" here.