Embarrassing Problem

We bought a timeshare at Palm Canyon Resort & Spa in Palm Springs in 1998. Although it is paid for, we have gotten behind in the maintenance fees, and received a letter saying it would be sold if we don't pay the $1,400 that we are behind. It was not a smart purchase for us because we were in the process of moving to New York when we bought it. Does anybody have any advice about whether we should sell it, let them take it back, or find a way to pay the $1,400? I would like to sell it to cover the back maintenance fees, and move on with our lives. Any advice?

It is likely worth about $1500- $3000. So if you sell it for $1500, you net nothing. If you sell it for $3000 you get the extra $1500 and are doing great.
These all assume that you sell it.

The big but, is that if the assoc takes it back, they will likely file a foreclosure on it ( they just can't sell it) and it will hurt your credit significantly.

It also depends on how many points you own. 133 points=2bd. high season or 1bd. prime season. Is it EOY or annual?

Not to squash your hopes but we just purchased 133 points EOY, off Ebay for $400.

Good luck.

I don't think someone would buy it with money owed on maintenance fees. Since I don't know its value, you may or may not be able to give it to someone providing they pay your back fees. I think it would be difficult.

You could call the resort and see if they'd take it back.

I do wish you the best of luck, whatever you decide to do.

Sue

Unless their is a lein recorded against the deed, it can be sold. The resort would expect the back fees to be paid at closing, though that is not always done. When we purchased our first week, there were back fees owed, and the resort transferred those to our account. We faxed them a copy of the contract stating that the seller was responsible, and they removed them from our account. Since the seller owned another week, I suspect the fees were transferred to that account.

I would contact the resort and see how they are willing to proceed. It would be cheaper for them to accept the deed back rather than go through forclosures, so they might be willing to do that. It would also be to your advantage because it avoids the hit to your credit rating.

It this a deeded Palm Canyon ownership or a Monarch Grand Vacations membership (Deeded ownerships can only be used at the home resort. Non-deeded ownerships can be used throughout the system and can be identified by the member number (must start with #15....). All of these ownerships are biennial. Fees are pd quarterly. If you have never paid for a Letter of Reconveyance (doc that shows the account paid in full) there is an additional $65. fee.

If you really just want out, the path of least resistance might be to call the Resort; tell them you received their letter; give them a sob story;i.e. out of work, massively in debt, etc; and ask them if they would take a "Deed in Lieu of Forclosure". If they believe you and are smart, they likely will take you up on your offer to save the forclosue costs.

GEORGE

Mel said:

I would contact the resort and see how they are willing to proceed. It would be cheaper for them to accept the deed back rather than go through forclosures, so they might be willing to do that. It would also be to your advantage because it avoids the hit to your credit rating.

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bogey21 said:

If you really just want out, the path of least resistance might be to call the Resort; tell them you received their letter; give them a sob story;i.e. out of work, massively in debt, etc; and ask them if they would take a "Deed in Lieu of Forclosure". If they believe you and are smart, they likely will take you up on your offer to save the forclosue costs.

GEORGE

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Good Advice!!

Thank you all for your advice!! I didn't think to call the resort, so I think I will give that a try!