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Original Message:
Re: Getting rid of your timeshare (by Dr. K.):
I agree. FMV has been well discussed herein.
I appreciate your concern. However, I will stand by the premise the we are just as concerned about scams and ripping donors off as much as your are. We have set up our processing to be absolutely third party. We take no money and do none of the paperwork. All that is done by licensed and qualified title/escrow companies. We are only the final recipient of the results.
We may differ in our opinions to what the IRS says and/or implies. It is to each individual to read for themselves and decide what is relevant. We have done so and stand by our opinions.
carvana wrote:1. Who holds title to the timeshare during the 36 month holding period or until the property is sold. Your firm or the donor? 2. Who pays the maintenance fees during the period between the donation and the sale? 3. Has any of the donated property gone into foreclosure? Is your firm listed with Dub and Bradstreet and if so what is your credit rating.
Here's the answers you seek. 1. Title is taken in the name of Community Health Training, inc., which is the charity I work with. At the end of the title company process legal ownership is transferred away from the donor (they are free) and to us as a new owner. 2. Maintenance fees are the responsibility of the owner, which upon completion of the process is CHT, Inc. As to payment, since we do not use it, we do not pay them. There is no legal recourse to the previous owner (donor). Not paying is not illegal. All we say is we are willing to let the resorts have their best shot at us. We simply ignore them, which is anyone's legal right. 3. In the last three years, only 1 timeshare has gone to foreclosure and many have refused to accept the deed back at the end of the 36 months. Interestingly, the resorts seem to prefer carrying an unpaid due bill instead of losing that "positive" asset and regaining ownership of a timeshare holding no value until resold. Since a foreclosure is NOT a sale, it does not trigger a Form 8282 alteration to initial granted FMV of the donation. 3b. D&B? I have no idea and we don't care!. That's the key to why we can do what we do for donors. We don't succumb to the same scare tactics and pressures exercised by the resorts. Restriction of use, harassment via the collection process, and final ruination of credit is the ONLY recourse open to resorts. With us, it's a worthless and pointless attack.
In other words, we use the law to fight others using the law. A final interpretation would have to be solely on the concept of a debtor's prison versus negative credit reporting. Since debtor's prisons are no longer a part of law, we are willing to accept our "punishment" (restricted use, a negative credit report, and subsequent reduction in the use of credit) for none payment of resort due bills.
Other than the opinion of resorts clamoring for their money and a few uninformed individuals crying for "fairness", we have found no legal objection to what we do. As you have questions on the legality of the process, we are more than willing to continue in this discussion. However, please don't take it to "fairness" or "rightness" issues. Too many owners have found that resorts don't play by those same precepts.