Time-share decision: walk or stay

[Rich_by_the_Bay]

Over 20 years ago, the DW and I bought 2 weeks of a time-share in a great location in New Orleans (between Canal and Poydras, down from Mother's restaurant). We got several years of enjoyment from it, and another few years of trading for places elsewhere. Probably paid about $12K for both at that time. A few years we even made a few bucks renting our weeks.

Times change. We haven't used it for years. Katrina-related vandalism trashed part of the building which has now been re-built from insurance proceeds. Selling the weeks is not likely in the current market I'd guess. New Orleans is back, if a bit bruised, but it will take time for it to regain its former drawing power.

Last week we got an assessment notice for about $1K for rebuilding shortfalls. The directorship of the hotel (a nice place) is a bit opaque and I don't fully trust them, though don't have the time to be an activist.

I told my wife I think it's time to cut our losses and walk. She feels we should pay up and hang in there. I'm afraid that next year we'll get yet another assessment and be throwing good money after bad. She says the new construction will make it better than ever. I say we won't even be able to rent it given the slow N.O. recovery. She says we can just trade it in....

So, anyone had experience with time shares? What happens if we just walk (aside from the unit being repossessed by the corporation)? Is it worth a try selling them? What to do?

 

[Moemg]

You can donate the timeshare to either of these charities.National Foundation for Cancer research ,Montana timeshare @ nfcr.org or Gifts for sight www.giftsforsight.org/timeshare.

 

[Rich_by_the_Bay]

You can donate the timeshare to either of these charities.National Foundation for Cancer research ,Montana timeshare @ nfcr.org or Gifts for sight www.giftsforsight.org/timeshare.

Hadn't considered that. Wonder if they'll assume fees and assessments - I'll check in to it. Thanks.

 

[Martha]

Better check Louisiana law to see if you are personally liable for timeshare assessments or whether only the property is liable.

 

[unclemick]

Hmmm - I've seen number estimates as high as 120,000 temp contractors and other carpetbaggers in town.

Last summer - talked to a guy who brought his construction crew back to Kansas City cause he got tired of sleeping in his pickup.

So - what am I missing here? Why isn't the time share raking in the big bucks?

heh heh heh - ?

 

[Mwsinron]

Sounds like a big headache waiting to happen to me. Id wash my hands of it pronto.

 

[Texas Proud]

I would look at what you signed when you bought it.... what is your liability??

Just like a house, if you do not pay you are still liable for the debt... if they sell on foreclosure you still owe the difference... now, they might not sue, but you might get a 1099 for the forgiveness of debt...

 

[brewer12345]

I bet you could put it on ebay with no reserve and someone would take it off your hands.

 

[ChrisC]

So, anyone had experience with time shares? What happens if we just walk (aside from the unit being repossessed by the corporation)? Is it worth a try selling them? What to do?

I don't like to be the bearer of bad news, but if you just walk away, your credit score might take a hit as the resort/timeshare manager is likely to report your delinquency to credit reporting agencies. It's unlikely that the charities will take your donation of your timeshare without you first paying the special assessment -- they don't want to be on the hook for the special assessment either and they generally want good, marketable title. You can try to sell it on ebay without paying the special assessment -- someone might buy it with the potential risk of another special assessment; you can expect a deep discount -- someone could buy it for $1 dollar but they might also insist on you paying closing costs.

I agree with your wife; pay the special assessment and use it for exchange purposes. New Orleans might come back and if you have a highly desireable week (like Mardi Gras), you should be able to get good trades and later sell it without the steep, steep discount you're likely to get if you unload it now, unless your timeshare is a real hole in the wall and has no potential as a desireable place, in which case you might look into having all the owners dissolve the timeshare interests. I have been through two big timeshare assessments myself. One thousand dollars doesn't strike me as unreasonable given Katrina's destruction in NO.

 

[Rich_by_the_Bay]

I don't like to be the bearer of bad news, but if you just walk away, your credit score might take a hit

I know, you're right. And DW's right. We gotta pay the present assessment. And, we do have Jazzfest as one of our two weeks. And we have enjoyed our trips there.

We talked about it and agreed to sit it out, pay up, and when things settle sell one of our two weeks.

Anyone wanna buy a timeshare? Cheap?

 

[chinaco]

I know, you're right. And DW's right. We gotta pay the present assessment. And, we do have Jazzfest as one of our two weeks. And we have enjoyed our trips there.

We talked about it and agreed to sit it out, pay up, and when things settle sell one of our two weeks.

Anyone wanna buy a timeshare? Cheap?

How cheap is cheap?

 

[Rich_by_the_Bay]

How cheap is cheap?

Interesting question (and, for the record, I'm not really trying to sell it now). It is very hard to price timeshares to begin with. Take what has happened in NOLA in past years, although the hotel is in an ideal location, and all bets are off. I'll be watching the market but comparable units in other cities.

Typical day: wake up whenever. Walk to Cafe du Monde for beignets and chicory. Wander the quarter a while, then grab lunch on Jackson Square. Back to the hotel for some lounging, reading, and maybe a nap. Pick a nice dinner place, home for the night, repeat. Jazz fest, favorite music venues, or other distractions abound to break the routine.

 

[chinaco]

I thought brew man's idea was good. Put a reserve on it and auction it on ebay.

 

[yakers]

And, we do have Jazzfest as one of our two weeks.

OK, keep it.

Or for that week, how much ya want?


The lady who later became DW & I just love Jazzfest.

 

[Ed_The_Gypsy]

And, we do have Jazzfest as one of our two weeks.

If that is the same as what used to be the Jazz and Heritage Festival, why not enjoy and sell after?

 

[Rich_by_the_Bay]

Geez, you guys not only talked me out of my "take this time-share and shove it" mood, but now you're making me like it again!

Wonder who'll be at Jazzfest next year. In past years we've heard everyone from Willie Nelson to Keb Mo to Bella Fleck to the Marsalis empire. Winton and his dad at Snug Harbor on Saturday (the fest ends before dark).

If we're not using it next year, I'll drop a note here.

 

[Mwsinron]

Lets hope it rebounds nicely for you!

 

[Rich_by_the_Bay]

Lets hope it rebounds nicely for you!

Thanks, Buddy.

 

[Achiever51]

And if you do decide to sell your weeks, the best time to do so would be either right before Jazzfest or right afterwards when likely buyers will have a good memory of the week.

We have two weeks in a timeshare on Hilton Head Island -- one of which is during the Heritage Golf Tournament. Every year we get at least one inquiry about selling Heritage week.

BTW, the amount of your special assessment is pretty reasonable.

 

[roadkill]

I am currently considering the possibility of purchasing a timeshare at Daytona Beach. For those who have been through this, what was your thought process in so far as why you choose this route versus simply going the pay as you go rental route?

 

[retire@40]

I am currently considering the possibility of purchasing a timeshare at Daytona Beach. For those who have been through this, what was your thought process in so far as why you choose this route versus simply going the pay as you go rental route?

Here's a thread from a couple of years ago that may be helpful.

http://www.early-retirement.org/forums/f29/time-share-resorts-16311.html

 

[kcowan]

Also check out Timeshare Users Group - Timeshare Owners Helping Each other, Unbiased Timeshare Information for All Owners, Buy Sell Rent Timeshare Timeshare Users Group.

Probably a good idea to join before making any investment.
Purchase price = 3x outright purchase price
Resale price = .25 of above
Maintenance fee = $200 to $800 per week
Trading fee = $400 (250+150)

Simple math - $600K oceanfront condo
Per week - 600/50 - $12k - timeshare new = $36k
Resale - $9k with ROI of 10% then $900
Maintenance - $350
Use for 1 week - $1250
Swap instead - $1650 or $236 per night

 

[TromboneAl]

Now that you've decided to hang on to it for a while, how about listing it for sale somewhere at a price that would be favorable to you? That is, you're not in a rush to sell it, so you can wait for a good deal (as long as you don't have to pay for the listing (some web site)).

 

[roadkill]

Thanks to all for the help......

I have concluded (as others have) that the only way a timeshare would be a competitive approach to a pay as you go rental is when it is purchased as a resale (check out ebay)and not from the developer. Secondly, the "points system" seems to have the most flexibility. A 154,000 point unit in Daytona Beach would cost around $20k plus annual assesments of around $1k from the developer. The ebay price is running somewhere around $1,500 - $3,000 plus $1K annual assesments.

So, me thinks I will keep an eye on the resale market and maybe pick up a deal from an estate or someone just looking to dump their ownership share.