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Current info on walking away from a timeshare
We enjoy using our 2 fixed red weeks and 154,000 Wyndham points and have been TS owners since 1981, but MFs have increased about 6% yearly for us. More than a dozen different companies have called us over many months wanting us to sell our TS to them. The deal is WE HAVE TO PAY THEM about 2 to 3 thousand $ and they'll take the deed off our hands. We investigated and here is their scheme: They set up a LLC (limited liability co) to own the deed, and when they get 20 to 30 deeds into it, they let the LLC go bellyup before they have to pay MFs. They make big bucks from desperate TS owners, and the developers of the properties (owners) get back the deeds. They will then try to sell them for even bigger prices to "new" prospects who aren't familiar with the re-sell market. As I first said, we truly enjoy our timeshares. But beware of the scammers coming at you from all directions. They're out to prove "a fool and his money are soon parted". When the day comes we are too old to use our TS, and if our son doesn't want to inherit, we will try selling on Redweek or check for a local realtor. We won't deal with phone scammers and we tell them to quit calling us.
Roger F.
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?
Yes, I've heard of this "strategy". There are representatives of companies like these coming on these boards often "bragging" that they do this. Many of these companies don't even need to hide overseas. They operate right here in the USA.
As for the consequences? Well, if this company is "successful" in defaulting and, thus, relinquishing ownership, the other owners at that resort are then stuck with absorbing the delinquent owner's maintenance fees.
Also, please remember that some resorts are well aware of this and are actually going after the owners who scheme with these LLCs and invalidating the "sale" of these units. Do your due diligence before dealing with any company that operates like this.
Lance C.
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.
Dr. K.
Canadian owners- if we walk away from our MF , mortgage is paid in full. , will the resort come after us , or would it be too costly for them to try legally to collect from us because we live in Canada? Anyone have experience with this? The property is Sheraton PGA in Florida.
Janet
Janet J.
victorial73 wrote:Charities will usually not pay for the maintenance fees.
Some do, some don't.
Donate For A Cause will pay the maintenance fees but, of course, will use the thousands of dollars that you paid them. The money you pay them gives them a year or two's "cushion" to test the viability of that timeshare.
That being said, I just don't understand why the owner who wants to shed his timeshare doesn't just pay the maintenance fees for the next few years to the resort and get some use out of it while trying to give it away rather than pay a charity (or Post Card Company) the equivalent of three years' fees to take over ownership.
Lance C.
janets339 wrote:Are these charities willing to pay the monthly maintenance fees??
If a charity is going to have you continue to own and hold title until they sell it, they won't pay any fees. If, like Donate For A Cause they will take title but don't want the financial burden, they will charge you a few thousand dollars to see them through until they can sell or get rid of it themselves. If the charity is going to take title, but not worry about their credit history, they will charge you a fee because they won't sell it, but they usually won't cost as much as DFAC does.
The final answer is that it depends on who holds title at the time the resort bills are generated. The law is specific. Once title is transferred all new bills go to the new owner. The resort can't go back to a previous owner and bill them. The key is the title recording date must be before the bill generation date (not the due by date).
Dr. K.
lancec13 wrote:victorial73 wrote:Charities will usually not pay for the maintenance fees.Some do, some don't.
Donate For A Cause will pay the maintenance fees but, of course, will use the thousands of dollars that you paid them. The money you pay them gives them a year or two's "cushion" to test the viability of that timeshare.
That being said, I just don't understand why the owner who wants to shed his timeshare doesn't just pay the maintenance fees for the next few years to the resort and get some use out of it while trying to give it away rather than pay a charity (or Post Card Company) the equivalent of three years' fees to take over ownership.
One good reason is that usually you can't even give them away. So you wind up paying a few more years and are still stuck.
Steven M.
Last edited by stevenm286 on Nov 18, 2011 09:33 AM
victorial73 wrote:Yes what stevenm286 said is true. It depends on which charity you wish to donate to (because not all of them accept timeshares) but with companies like Donate Timeshares and Donate For a Cause they usually charge a sum to 'help' you out.
And they only take timeshares they think they can resale .... the majority they won't take.
R P.
drk14 wrote:What charity are you with? Contact me at dhutton18@yahoo.com.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.
Doraine H.
lancec13 wrote:came to 450.00, and they sent another donation receipt for 1500.00ronaldk85 wrote:if your unit is paid off you can donate it to charity and take a 5000.00 deduction on your taxes...i donated one to a fla. veterans groupHow much did FVG charge you to donate it to them?
Ronald K.
drk14 wrote:drk14...will you guys accept The Point at Poipu Timeshare? If so do the 2012 maintenance fees and special assessment have to be paid or is the only fee the $500? You guys guarantee transfer of ownership? Approx. how much of a write off is it? Thanksstevenm286 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.
Rick M.
