While timeshare owners are looking for financial relief during these tough economic times, they need to prepare for special assessment fees courtesy of timeshare developers. The current economic climate has created a troubling trickle-down effect. With timeshare corporations no longer able to easily access credit, they are eyeing another source of revenue -- all their timeshare owners.
In many cases, owners sign contracts that allow their home resorts to charge them special assessment fees when warranted. The size of the fees are determined by the resorts and can be rather arbitrary. Some owners are unaware of these policies.
Recently, timeshare owners have opened up their mailboxes to find bills ranging from $500 upwards of $3,000. It's a crushing blow to those who may have lost jobs, experienced cuts in pay and/or work hours, and seen their stock portfolios plummet in value. Owners are truly understanding where they fit in the financial pecking order of the timeshare industry.
Some owners are wondering what happened to the thousands of dollars paid upfront and the timeshare maintenance fees. Wouldn't those dollars be enough to weather the economic storm? It's not in many cases. Timeshare entities use the revenue and accounts receivable to obtain leveraged loans to develop more resort units. In bad times, shortfalls occur in paying these loans, hence owners are assessed the extra fees.
So, what if owners decide not to pay the special assessments (or maintenance fees)? Many timeshare contracts allow default judgments that impose severe monetary penalties and court fees on top of the original fees owed. Continued non-payment results in liens placed on real property like the timeshare owner's home or garnished wages.
With the timeshare resales market already saturated, there is little left to do but to pay the bills and keep the timeshare. Many charities don't even want the liabilities. For some relief, owners can try to rent their units to recoup some cost. But, they need to realize that their resorts are probably doing the same thing, yet at lower rental rates. - 15432
In many cases, owners sign contracts that allow their home resorts to charge them special assessment fees when warranted. The size of the fees are determined by the resorts and can be rather arbitrary. Some owners are unaware of these policies.
Recently, timeshare owners have opened up their mailboxes to find bills ranging from $500 upwards of $3,000. It's a crushing blow to those who may have lost jobs, experienced cuts in pay and/or work hours, and seen their stock portfolios plummet in value. Owners are truly understanding where they fit in the financial pecking order of the timeshare industry.
Some owners are wondering what happened to the thousands of dollars paid upfront and the timeshare maintenance fees. Wouldn't those dollars be enough to weather the economic storm? It's not in many cases. Timeshare entities use the revenue and accounts receivable to obtain leveraged loans to develop more resort units. In bad times, shortfalls occur in paying these loans, hence owners are assessed the extra fees.
So, what if owners decide not to pay the special assessments (or maintenance fees)? Many timeshare contracts allow default judgments that impose severe monetary penalties and court fees on top of the original fees owed. Continued non-payment results in liens placed on real property like the timeshare owner's home or garnished wages.
With the timeshare resales market already saturated, there is little left to do but to pay the bills and keep the timeshare. Many charities don't even want the liabilities. For some relief, owners can try to rent their units to recoup some cost. But, they need to realize that their resorts are probably doing the same thing, yet at lower rental rates. - 15432
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There is hope to your timeshare resale problem. To discover what over 20,000 other distressed owners did with their unwanted timeshares, go to Timeshare Relief (www.timesharerelief.com) or call 800-588-1582, and sign up for a free consultation.
