massachu
TUG Member
Do we know if Festiva was instrumental in managing this resort? I believe that some bankruptcies of associations are the product of the management companies.
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Bankrupt / Closed Timeshare resorts
- Thread starter TUGBrian
- Start date
I will make a bet a major hotel will purchase this land in the next six (6) months?
Peppertree Atlantic Beach land is more valuable than a timeshare resort to a new developer.. IMHO
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Good for these owners. That were not scam by some bad guys.
spthomas
Guest
When Los Lagos closed and sold (we didn't go into bankruptcy), the "owners association" voted to stop being a time share resort. But of course, in the "owners association" every week for each unit has 1 vote. And the resort operator is a Festiva subsidiary and with repos and any unsold units, Festiva is by far the largest owner. So they call the shots. I can't complain, I got 1/2 of my money back after 35 years!
Kozman
TUG Member
Festiva is still managing this resort. Phase One is gone. Phase Two has been repaired and is operating. Maintenance fees for 2br are about $950. They indicated that they planned to try to shift owners of Phase One into available units in Phase Two to help levelize the increase of fees. I do not have a very high regard to Festiva as a management company.
spthomas
Guest
I haven't heard a word from them about anything since we sold, though I know Phase II is still open. I loved our Phase I units, they were so big and comfortable. And it's funny, during the 37 years we owned there, we were constantly
Hit in by other timeshaimpanies to buy more timeshares. Now that we no longer own a timeshare, as happy timeshare owners for 37 years I'd have thought we'd be prime targets. But haven't gotten a single hit.
kestratford
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Hi my timeshare resort has been changed the last few years with some of the units being converted to condos and sold. this is partial timeshare/condo organization managed by one person in charge with a Board of Directors. The land court of MA is currently holding up the sale of some more condos. SO the manager just notified timeshare owners their maintenance fee will be increased by $500.; this will probably cause more owners to stop paying so more foreclosures will happen-probably. Condos are being sold when the Land Court allows the sales to happen are for over $300,000. It seems that Management can just keep raising our maintenance fees until everyone just stops paying and all will be foreclosed on. Can resorts just raise condo fees as much as they want? DO owners have any recourse? Has anyone heard of a situation like this - or one where a private investor comes in and sells the condos for hundreds of thousands of dollars?,
seastraight
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Adding another one - Crotched Mountain Resort in NH just closed. This quote is from the Wyndham website: On June 29, 2023, more than 75% of Crotched Mountain Resort owners in New Hampshire voted to terminate the existing timeshare trust to prepare the property for sale. As a result, Crotched Mountain Resort will close Aug. 1, 2023, and will no longer be included in the Club Wyndham resort portfolio.
lynnb
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Grand Destinations. Closing wants Deed back, fully paid, not delinquent on fees Owned by major Gamong company. Not compensating owners, and receiving rude, nasty emails from Julie Prior. Horrible experience. Lied to, ripped off, what can we do?
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You are under no obligation to deed your ownership to anyone. I suspect there are perhaps some unscrupulous things happening where someone wants to scoop up a bunch of deeds and then get any residual payouts to themselves. When the property is sold, any owners of record should get paid a split of what the sale was for minus any final expenses. Though sometimes this could be negative, but not very often.
massachu
TUG Member
I have first hand experience with one MA timeshare resort, Southcape Resort in Mashpee, MA. The developer is Festiva of Asheville, NC. For reference see posts of the late SOU13. There are two condominiums, 1 and 2. SOU13 was in 1. This year, 2023, the resort began to dissolve 1. Honestly, the resort appears insolvent. Owners have no say. (Trustees merely say they will do anything that an owner requests provided that the owner cites laws and facts.) The resort does not report any financial annual accounting of condominiums. Massachusetts condominium and timeshare laws are ignored by trustees, managing entity, and non-profit directors required by bylaws and MA laws. The laws recite that the remedy of failure to follow laws is litigation. Individual owners of intervals from 1982 and 1987, or many, are original heirs, are seniors and really any individual finds it cost prohibitive, however, to litigate in superior court for governance per recorded bylaws; all trustees are loyal employees of the management company and own no intervals. Trustles also populate all board positions counter to annual elections of owners per bylaws. This year, trustees have closed condo 1, rent none of it at an opportunity cost of $60,000 a week, but charge its owners no dues. However, property taxes and maintenance continue for the association but only owners in condo 2 (with 1348 intervals) are billed for dues; trustees give waivers of dues to 490 developer owned weeks that developer has never sold, just rents. Operating expenses exceed dues and incidental income. Management has appropriated capital reserve funds and the resort shows a deficit reserve of $500,000. Apparently trustees reassured concerned condo 2 owners that their management company was loaning money to the association to cover operations. (Incidentally, trustees allowed the association to informally seize the interval of the late SOU13 without registering a change of title and without equitable compensation to her estate. Trustees also used interstate wire communication in 2021 to defraud senior owners with claims that their intervals were worthless, to be vacated in 2023, but would require sustained dues in 2023 and 2024, encouraging over 100 interval owners to pay the developer to take their deeds.) Owners having an accounting background say that the non-profit association is not a going concern.
Eric B
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This showed up on my Google News feed:
Stonegate timeshare tax mess remains in limbo as Great Barrington faces legal setbacks to take abandoned West Avenue property
The back taxes owed by many of Stonegate's 620 owners are now in excess of $267,000 and the town is struggling to take the property.
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What a colossal mess - and there were only 8 units. Just think of resorts with many more units. Then there is the issue where the developer sold 50% more intervals than existed? Quote from the article: "In this case, the developer, Robert Hatch, had sold nearly 50 percent more timeshare intervals than it could accommodate given the eight units in the renovated Victorian manse". I can't wrap my head around what he did with the deeds - perhaps he reused deeds. I would have thought that the county would have caught this, but I guess not. This is really a shame but it reiterates the fact that even though timeshare owners own just a sliver of a property, they still own real estate and all of the same processes with respect to purchase/sale/disposal will proceed just as if they owned the entire property. There aren't any shortcuts just because it is a timeshare.This showed up on my Google News feed:
Stonegate timeshare tax mess remains in limbo as Great Barrington faces legal setbacks to take abandoned West Avenue property
The back taxes owed by many of Stonegate's 620 owners are now in excess of $267,000 and the town is struggling to take the property.www.berkshireeagle.com
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The article doesn't give a lot of details, but based on the overselling, it doesn't seem that these are deeded ownership of an indivudual share but perhaps more of a right to use type of arrangement.
Eric B
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… but the city has to find all the TS owners to deal with the issue
If you hold a deed to something that never actually existed do you have to pay taxes on it?
Eric B
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A quick look at the property records shows that it's recorded as a trust.
tnecniv
TUG Member
what. happened to the. DELRAY BEACH SOUTH SHORE CLUB BEAUTIFUL. DELRAY. BEACH. FLORIDA
spthomas
Guest
I can verify it is supposed to work like that. My resort, Los Lagos at Hot Springs Village, AR Phase 1, "voted" to stop being a timeshare (since the developer owns all the unsold units and points it's pretty much their call, but still..). Anyway a few months later they sold it, and a couple of months after that I got a check for about 1/2 of what I paid 37 years earlier. Not too bad I think.
According to this review in Trip Advisor
https://www.tripadvisor.com/Hotel_R...ay_South_Shore_Club-Delray_Beach_Florida.html
dated 1/1/2020 "Unfortunately, Delray South Shore Club has been sold and will be bulldozed down to make room for the rich to have million dollar condos. As an owner we are heartbroken”