TS Today - Creating a Vision for the Future of Vacation Ownership Issue #96 Nov/Dec, 2007 | Page 25
TimeSharing Today
Page 27
Nov/Dec, 2007
Deeding Back Timeshares
Worthless Intervals
By Kurt J. Brown, Houston, TX
One big factor destroying the value
of timeshare ownership is the refusal of
many resorts to take back timeshares when
there is no balance owing, or only the upcoming maintenance fees owing.
By refusing to help
the timeshare resale process, many resorts are
contributing to the effect
of timeshares becoming
essentially worthless.
The resorts are in the best
position to resell or rent
out unused or returned
timeshares as the resorts
are the centerpoint for the
vacationer.
Timeshare owners
know that maintenance
fees are always going to
increase. Yet, in many
cases, why would one want to pay ever
increasing amounts for a worthless timeshare. At many resorts, there is not enough
money set aside for insurance and repairs
and updates, leading many resorts to assess frequent special assessments - often
without consulting owners or asking for
owner vote/approval. Again, if the under-
lying interval has no value, why should
the owner pay the increased maintenance
fees and the ever-present special assessments, when the resorts themselves are
telling the owners that the intervals have
no value and are not worth taking back.
Lifetime Job Security
Many resorts give owners two unconscionable choices - pay maintenance
fees and special assessments even if you
are not using and cannot use the interval,
or face foreclosure. Resort personnel have
lifetime jobs. Since owners cannot sell
their intervals, if they want to keep their
credit, the owners must continue paying
even when it causes more financial problems to add to already desperate situations.
Facility Obsolescence
Like any other piece of real estate, the
buildings are never going to get newer. If
the resort does not have funds set aside
for updates, upgrades and repairs, then
the owners should have the option to
close the operation, sell the facilities, wi