Original Message:
Re: Current info on walking away from a timeshare (by Dr. K.):
stevenm286 wrote:I own a foreign corporation domiciled in the Cook Islands which banks in Singapore. I'm considering deeding the timeshare to the corporation and when the resort wants its fees the corp just tells them to go fish. Anybody ever heard of this strategy?
Actually this can work for you. We run a 501(c)3 charity that accepts the actual deed to timeshares instead of just trying to sell them for the cash. Because we don't sell them, we do charge a $500 service fee to accept the donation and relieve the owner of further ownership fees.
We simply hold the deed for 3 years. During that time the resort send nice letters for billing, sends us to collection, threatens to ruin our credit, refuses to let us use the timeshare, you name it. The key is that because we don't use credit all their threats and actions are empty threats. Their only legal options are to send negative reports to credit bureaus and/or foreclose to get the deed back. If your offshore corporation doesn't worry about these actions you can do it.
The only legal complication I can see would be if a resort tried to sue to "pierce the veil" of the corporate structure and sue the owners of the stock (a non-profit has no stock ownership). For the minimal amount concerned this is most likely a rare chance occurrence.
I haven' read this entire thread, but if it hasn't been said, you should first try to get the resort to take back the deed. They usually charge some fee, but it's easier than doing anything else.