How To Survive Timeshare Ownership During Economic Crisis
The timeshare industry depends greatly on the availability of credit in order for potential buyers to sign timeshare vacation package contracts. Without free-flowing credit, timeshare sales fall. To make up the gap in revenue, current timeshare owners are being asked to flip the bill. Relief is certainly not in sight.
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.
You would think that the millions in upfront cost and annual maintenance fees would be able to keep afloat all timeshare resorts. Unfortunately, many corporations leverage what they have to build more timeshare units in different locales. This strategy works well in good economic times but tragically multiplies the draining effect when credit is scarce and when revenue decreases.
And what if the special assessment fees are not paid? Not surprisingly, many timeshare contracts are skewed in favor of the developer. They charge non-payment penalties, garner wages, and put liens on real property like the homes of timeshare owners. What’s worse, default judgments can impose these penalties immediately following the payment due date.
What can timeshare owners do to fight back? There is not much relief if they plan to keep their timeshares. The number of owners that try to resell or rent their timeshares spikes up tremendously during economic crisis. Many charities will not accept timeshare deeds as donations knowing the accompanying liabilities.
Javea Real Estate: Villas, Apartments & Resorts
Tags: vacations, timeshare, timeshare resales, timesharing