Timeshares

[SecondAttempt]

I also have a friend who has a semi-hobby of going to timeshare presentations to get a free mini-vacation and other goodies that they give out.

I had a friend years ago who was an attorney. She had the same hobby but she took it a step further. When she said "no" and got up to collect her gift and leave she would usually meet resistance. At that point she would inform them which laws they hadd violated and point out that if they did not immediatelyly hand over her prize and clear the exit path she would sue ffor breach of contract and pursue kidnapping or false imprisonment charges. It always worked.

 

[Chuckanut]

The fact is, taking on a $1500/year obligation would not significantly change my lifestyle or financial situation. I think my biggest concern would be how much that can go up over time. My friend is retired and not worried about her credit score.

I would make sure that the maintenance fee is all you pay even if you don't use the timeshare property. I have heard stories of people being hit with special assessments in the thousands to do things like major repairs, replace aging furniture, etc. I imagine it depends on how the timeshare agreement is structured.

Th current situation for timeshares has many owners selling the property for a fraction of what they paid or even giving the property away to get out from under the monthly payments. Is there any reason to think that is going to change soon? I don't know. But, if I was in the market for a timeshare I would find out.

 

[disneysteve]

I am not looking at this as an investment but rather more as a potential vulture opportunity.

What do you mean by "vulture opportunity"? You're considering getting something that has absolutely no value and will cost you a minimum of $1,500/year.

 

[Badger]

Back in the 70s and 80s Timeshares were being pushed pretty hard. I went to a few sales pitches for fun. As nice as they were (mountains, beaches, the Keys) I just couldn't see vacationing in the same place every year. I prefer variety. I also don't like sharing ownership with anyone except my wife.

Cheers!

 

[TripleLindy]

We’ve also done the reward for sales pitch gimmick. The first time was a free week at a Marriott property in Kauai in exchange for a 90 minute presentation. It wasn’t high pressure at all and well worth it. The 2nd time, I convinced my wife to attend a lower-tier timeshare sales pitch at a lake and golf course “resort” a few hours’ drive from our house. The award was a very nice set of Calloway golf clubs, selling for around $600, so I told her this could be my Father’s Day gift. This time, the presentation took several hours, even though I made it clear from the beginning that we were only there for the clubs. When I finally got the rep to give me the clubs, they weren’t the advertised Calloways. After complaining and making it clear that now I was the one refusing to leave and threatening to inform anyone else who came in of the shenanigans, the rep begrudgingly gave me the Calloways. Never again.

 

[frank]

I was looking at some of the rooms on skyauction. do they have fees that are not listed? cleaning fees, etc.?

 

[FLSUnFIRE]

If I was going to consider a "free" one, I would counter that they pay me $x to take it... at least a few years worth of payments before I'm the one trying to unload it.

 

[Sojourner]

The fact is, taking on a $1500/year obligation would not significantly change my lifestyle or financial situation. I think my biggest concern would be how much that can go up over time. My friend is retired and not worried about her credit score. She is considering just not paying. The recourse would be for the organization to foreclose. But she seems fairly immune to that.

This is something I've always wondered about when it comes to timeshares. If the TS buyer/holder at some point decides the value is so bad that they'd be willing to unload it for basically $0 just to avoid the yearly fees, why not simply stop paying the fees and allow the owner to foreclose? Even if the foreclosure results in a credit report ding and various legal/court costs, wouldn't that be better than continuing to pay thousands of dollars annually, in perpetuity, for something you don't value?

 

[SecondAttempt]

What do you mean by "vulture opportunity"? You're considering getting something that has absolutely no value and will cost you a minimum of $1,500/year.

My thinking was that the $1500 was for 2 properties, two weeks a year. That's only about $100 a night to vacation those 2 weeks.

But I have decided against it mostly because I don't need the hassle. I appreciate all the responses.

 

[old medic]

$1700 a year would let you rent many places anywhere, anytime, with no obligation.

We didn't spend that much for a 3 week camping trip to NY.

 

[Badger]

We didn't spend that much for a 3 week camping trip to NY.

Backpacking and camping has always been our preferred method of vacation. Unfortunately that time has passed and become physically too difficult for me. Now it is short hikes where we drive to a trail head.
In the 70s, 80s, and 90s when money was tight that is all I could afford but I saw most all of the US and Canada.
In the 70s I would take about $400-500 and drive away in my VW bus to see the country for a month. The money would pay for everything (gas, food, etc.) and we would sleep in the bus or pitch a tent if we on a trail. Once it ran out I would turn around and go home. Great times.
I can't see going to the same timeshare every year. Too boring.
Cheers!

 

[audreyh1]

We never were interested in a timeshare because returning to the same place had no appeal and the resort type areas they are in rarely match our travel plans. Not interested in swapping one similar resort property for another nor in scheduled weeks nor in a long term commitment.

 

[phil1ben]

Bought a single Hilton timeshare RESALE in 2010. We use it and enjoy its benefits. We like Hilton because it is a somewhat flexible point system and they have so many resorts. I can currently sell it for what we paid. It represents about 20% of our vacation time and was well worth the purchase price BECAUSE WE BOUGHT RESALE. In 12 years, Maintenance fees have increased about 40%. It is not an investment but simply prepaid vacation. The Hilton program is by no means perfect but all in all it works for us for a portion of our vacation time.

Unfortunately it is not the only expense we incur that has increased 40% in 12 years........

 

[Rianne]

This is something I've always wondered about when it comes to timeshares. If the TS buyer/holder at some point decides the value is so bad that they'd be willing to unload it for basically $0 just to avoid the yearly fees, why not simply stop paying the fees and allow the owner to foreclose? Even if the foreclosure results in a credit report ding and various legal/court costs, wouldn't that be better than continuing to pay thousands of dollars annually, in perpetuity, for something you don't value?

I've wondered the same thing. I'd imagine you'd have to put up with threatening phone calls. That's a good question for a real estate attorney.

 

[phil1ben]

I've wondered the same thing. I'd imagine you'd have to put up with threatening phone calls. That's a good question for a real estate attorney.

Depending on the State where the timeshare is located, the Lender may be entitled to a deficiency judgment against the Borrower. This liability varies widely from state to state.

The "deficiency" is the difference between what the Lender realizes (either through sale or the appraised value of the timeshare at the time of foreclosure) from the timeshare and the amount owed on the loan. So the Lender could get the timeshare back but the Borrower could still be liable for a defiency judgment in addition to ramifications on his/her credit. Whether it would be cost-effective for a Lender to pursue a deficiency judgment would need to be evaluated on a case-by-case basis.

 

[DJRR]

Lot of misinformation here. If you want the real scoop then go to tugbbs.com. It is like anything else, you get out what you put in. The real value is in if you can plan 1 year out or < 60 days out. In between does not work well.

Personally, I have owned Marriott for over 20 years. Even buying direct from them I have less in the system than most people spend on an SUV. This year my fees are $5,200 all in and I will do 28 nights in a 2 bd 1,000+ sf condo with a nice location and kids programs. This year is Hilton Head, Williamsburg, Orlando, and Marco Island. That works out to $185 per night tax included. It is not cheap, but a fair value, and you can do better if you buy resale. YMMV.

 

[Scuba]

We never were interested in a timeshare because returning to the same place had no appeal and the resort type areas they are in rarely match our travel plans. Not interested in swapping one similar resort property for another nor in scheduled weeks nor in a long term commitment.

Same. The one time we went to a timeshare presentation, we asked them to show us the book of all the properties available. We gave them the names of 3 or 4 properties where we had stayed and enjoyed them. They were all in the “small luxury hotels of the world” and naturally none of these properties were in the timeshare network. Our travel style has since evolved such that we now prefer staying in apartments, but not in resorts. We prefer to explore the local culture, not stay in a massive resort. YMMV

 

[Luvtoride]

We never were interested in a timeshare because returning to the same place had no appeal and the resort type areas they are in rarely match our travel plans. Not interested in swapping one similar resort property for another nor in scheduled weeks nor in a long term commitment.

As DJJR pointed out there is a lot of misinformation and misconceptions about timeshares. We own timeshares in 4 different resort areas and we have visited over 20 different locations/ resorts during our ownership.

Yes, enjoyment/ usage of timeshares depends on what your travel style is and won’t be for everyone. It has worked well for us as traveling with our family and friends to resort areas at different times of the year is our style.

We still do other vacations not involving timeshares such as our trip to Italy last month and have never felt tied down or limited with our timeshares.

 

[gauss]

Depending on the State where the timeshare is located, the Lender may be entitled to a deficiency judgment against the Borrower. This liability varies widely from state to state.

The "deficiency" is the difference between what the Lender realizes (either through sale or the appraised value of the timeshare at the time of foreclosure) from the timeshare and the amount owed on the loan. So the Lender could get the timeshare back but the Borrower could still be liable for a defiency judgment in addition to ramifications on his/her credit. Whether it would be cost-effective for a Lender to pursue a deficiency judgment would need to be evaluated on a case-by-case basis.

+1

I am not a lawyer, but in general, if you 'fail to perform' on a legal contract, my understanding is that the other party can come after you for the amount of their damages.

It is possible that this could be enforced by seizing (other) assets ie vehicles, garnishment of wages etc.

Unless the contract limits your liability to the value of the timeshare at purchase, you are on the hook for perhaps much more.

Now if one has structured their assets and income to be 'uncollectable', then maybe that may be a different game that one could consider playing.

-gauss

 

[daylatedollarshort]

You can often rent someone else's timeshare for less than the fees they pay.

+1. The timeshare annual maintenance fees in Hawaii were always more per week than what we were paying for our lodging with some kind of half price hotel or package deal condo. And the initial cost for one week X 52 used to be 3 times the current market values of the properties, compared to buying a condo outright.

 

[RobbieB]

Yeah, rent a timeshare is a great idea, just like VRBO or airbnd.

I was never in a spot where I could forever plan a vacation on a specific date or locale.

 

[old medic]

Backpacking and camping has always been our preferred method of vacation.

Same here, But the Wife prefers to have a bathroom now. We moved to a camper in 2007, and in a BTD moment in May we picked up a Toyhauler.

The one time we went to a timeshare presentation,

Years ago we went to several for a few free days, Man can the sales folks can be intense. A couple times we got extra days, or another visit to try a different location...

 

[FFC1964]

We have owned Hyatt Timeshare for over twenty years and use it very often. I break up our two bedroom into studios or one bedrooms so we get multiple trips out of the one week purchase. We love it and feel we get very good value for our money. That said....you have to know what you are doing so the advice to read all of the information on the Timeshare Users Group is great! We have never regretted ours for a minute.



Sue

 

[daylatedollarshort]

What happens with timeshare fees if you become disabled or have to go into a care home and can no longer travel?

 

[gauss]

^ I suspect that it would be addressed in the contract and if not addressed then you would keep paying.