The One Really Big Issue . . .

[tonyg]

...What really needs to happen is twofold:

A: The 25,000 to 45,000 weeks need to fail to sell - as long as they are selling briskly this will continue an issue.
and ....

If the developer weeks don't sell---there are no resales and the resort is in the same bag as if lots of owners were not paying fees. If the developer has to pay the MF under this scenario, bankruptcy would be eventually coming.

[ampaholic]

If the developer weeks don't sell---there are no resales and the resort is in the same bag as if lots of owners were not paying fees. If the developer has to pay the MF under this scenario, bankruptcy would be eventually coming.

I think bankruptcy for the developer would be a side effect.

As long as their are "bamboozlers" selling something worth a few thousands of dollars (a lifetime of pre-reserved vacations for witch you still have to pay MF's) for tens of thousands of dollars there will be an issue.

If someone somewhere is getting something for nothing - then somebody somewhere is also getting nothing for something!

[tonyg]

That side effect could effectively destroy the resort and cause all owners to lose their timeshares.

[ampaholic]

That side effect could effectively destroy the resort and cause all owners to lose their timeshares.

So you are saying we should support developer sales in order to keep the HOA sufficiently funded to prevent the insolvency of the resort?

[tonyg]

Not really--- but did you ever try to talk a brand new owner into rescinding ? There really is no method by which you can stop all sales as long as they are operating within the law. Also, if no one bought, they wouldn't build them.

[JLB]

if no one bought, they wouldn't build them.

I knew if we talked long enough, someone would come up with a good idea.

[tonyg]

On the cover of the Sept/Oct 2012 TimeSharing Today magazine there's an article about In-house Rental/Resale programs that includes Acadia Village Resort's new deedback policy which got around 2 dozen weeks back. I particularly liked the resort manager's comment about controlling the inventory and avoiding postcard companies. This is a small resort (39 units) in a good location (near Acadia National Park) with only one other small resort within 50 miles and only about 6 months of high desire tourism.

[JLB]

Yeah, sure, we are way outta line suggesting the industry, some part of the industry, should provide for an exit strategy:

Endless Vacation, Winter 2012, Page 67:

Fighting Fraud

Keeping Our Members Informed

4. Consider calling your resort or club to ask:

. . . Does the resort/club offer a resale or buyback program . . . ?

Sure, they're not shouting if from the rooftops, but they are seeing the same problem we are talking about, and suggesting the same solution.

Yeah, that's in a 2-page article about resale scams.

Hmmmmm!?

[JLB]

Never mind all this other stuff.

Now there is one really big issue.

The Hostess shelves are empty.

[JLB]

The postcard that arrived today starts off:

While most Timeshare Disposal firms charge anywhere from $2500 to over $4500, OUR TYPICAL PRICE IS ONLY $585.

Bold red just like the postcard.

Wow! What can I say other than this is fun and we're having it, just like that guy said 20-some years ago.

Oh! Another subcategory of timeshare company: Timeshare Disposal

Pretty much sums up the state of the industry.