Can someone tell me what it consist of?
This is an agreement between an owner and Marriott to give back the unit week(s) in lieu of Marriott foreclosing the property.
An owner may request this but as I understand Marriott doesn't have to agree with it or make an offer to provide it.
An owner can always try to negotiate their exit strategy. Remember, it’s usually in Marriott's best interest to work out a deal with the owner. It costs them some money to process the transaction and in the end it’s reported as an operational loss at the property.
I think the two main areas where they go after this transaction is (1) Delinquent Loan Payments, (2) Delinquent MF.
I suspect we will see some level of strategic dumping of units from owners who belong to the DC points system and have a portfolio of properties enrolled. To some folks it might make sense to dump a week that has high MF and very little return value from assigned DC points. These folks still have other legacy weeks which can be converted to points and used so making a strategic foreclosure may make sense to some owners.