Foreclosure question?

[chriskre]

Does anybody know what would happen if you don't want your timeshare anymore and you can't sell it but don't want to pay the maintenance fees?
Can you just deed it back to the resort or let it go into foreclosure? How do associations handle their timeshares in default? Does it depend on the state you live in and is this a common problem? I'm sure with this economy many people want to get rid of their timeshares. If the unit is free and clear does it matter if it goes into foreclosure? Just curious because my friends have been asking me lately and honestly I'm clueless with timeshare legal stuff even though I'm a licensed realtor.

[tonyg]

It varies with the resorts. some take deedbacks, some foreclose others go after you for the money.

[chriskre]

Originally Posted by tonyg

It varies with the resorts. some take deedbacks, some foreclose others go after you for the money.

So how long can they go after you for maintenance fees if you don't pay them? Do they wait years or months to foreclose? I would imagine the legal fees would cost more than the maintenance fees and that they'd be willing to take back the deed but maybe I'm wrong.

[tonyg]

From a discussion I had with a resort manager, it was easy and low cost to foreclose on a delinquent unit.

[Keitht]

Originally Posted by chriskre

So how long can they go after you for maintenance fees if you don't pay them? Do they wait years or months to foreclose? I would imagine the legal fees would cost more than the maintenance fees and that they'd be willing to take back the deed but maybe I'm wrong.

They can basically go on chasing the debt as long as they like. The legal fees can also be added to the debt in many cases so the cost won't fall on the company/resort.
There is generally little or no benefit, an potentially a huge downside, if resorts are seen to be too ready to simply take back deeds. Anybody who simply didn't want the unit any longer would see it as a simple matter to walk away, and the remaining owners would end up footing the bill for the cost of running the resort.

[tonyg]

But on the other hand, delinquent units with little chance of paying up, need to be taken back so the resort can hopefully resell or rent out the units. The resort can still go after what was owed after foreclosing.

[warddrake8989]

foreclosures, are they really possible?

[Jya-Ning]

Originally Posted by warddrake8989

foreclosures, are they really possible?

Yes, it happen everyday. Once you pay off, it is your property, the HOA has to go through foreclosure to take it out.

As to if the HOA will continue to take you on the money it loss during the process? It is unknown, nobody has the statistic.

Jya-Ning

[tonik]

At Driftwood Resorts last year, they had a bunch of foreclosures that people were bidding on. It was gone in one day but since it is a deeded property, I would assume if you owe money on it, they will come back for deficiency, which is the amount owed minus the amount collected. I am sure they can come back to you for the maintenance fees and even take you to court where they can get a judgement against you. Of course, this is the worst case scenerio but I would definitely make an effort to sell the timeshare.

Next time I talk to Driftwood, I will ask what they did on the foreclosures. I am an ex banker and now a realtor so I deal with people's credits, i.e. find out that someone has a judgement or lien on properties, etc., etc. It is getting worse every day it seems.

Where is your friend's timeshare and how much does she owe? Maybe someone here maybe interested?

[chriskre]

She owns a unit in Liki Tiki in Orlando. She doesn't owe anything on it just wants to be done with the resort.