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