What do I do if [an association files bankruptcy]

[toddnlorie]

I'm a little hesitant to post about this. I hope you guys will have some words of wisdom for me. In spring 2017 we took over a timeshare from a couple that we know here in town. They paid all but about $75 of the fees. It is a share at an association in Manson, WA that we get four weeks a year and we have the same space each time. There are several associations at this particular area. We've actually never had any real problems there (except recently the check in people are way more rude and the place was not as clean as it has been previously) though the space is quite 1990's. That said...we still love our time there and we've noticed that our association's units are not well used when we are there. The last time we were there we were talking with one of our neighbors and they mentioned that they had talked with someone who had heard the association may be considering bankruptcy. I believe this to be true because we were actually considering getting a bigger unit (the grands will start coming with us) and we found out that the association pulled available association owned units from being able to be looked at for purchase.

I know, I know...it is a lot of heresay but I'm worried. What happens with an association like this if it files bankruptcy? Should I just contact them directly and ask what is going on?

Please be kind in your response, thank you.

 

[DaveNV]

I think hearsay is never reliable, since it's just gossip. I'd suggest going to the association and asking directly what is going on, is there truth to the rumors of potential bankruptcy, if so, why is that? Ask why available units were taken off the market, and what can you do if you'd like to buy a larger unit. I'd be quite surprised if a proper management company in Manson would even be thinking of bankruptcy, given how busy the place can be. A timeshare is a jointly owned venture, so if bankruptcy is being discussed why aren't owners involved in the discussion? If it's busy, there is income. Bankruptcy would only be considered if they were behind on debt and such. Assets could be sold to one of the other associations in the same location, I'd think for a nice amount.

You need to ask what is going on.

Dave

 

[toddnlorie]

I think hearsay is never reliable, since it's just gossip. I'd suggest going to the association and asking directly what is going on, is there truth to the rumors of potential bankruptcy, if so, why is that? Ask why available units were taken off the market, and what can you do if you'd like to buy a larger unit. I'd be quite surprised if a proper management company in Manson would even be thinking of bankruptcy, given how busy the place can be. A timeshare is a jointly owned venture, so if bankruptcy is being discussed why aren't owners involved in the discussion? If it's busy, there is income. Bankruptcy would only be considered if they were behind on debt and such. Assets could be sold to one of the other associations in the same location, I'd think for a nice amount.

You need to ask what is going on.

Dave

Thank you Dave. It is quite busy at Wapato Point in the summer but I know there are many units in our association that are association owned and most units are not updated, at all. They updated one building and they are asking more than double what we pay in quarterly maintenance fees. Our yearly association meeting notes have not been encouraging which lends to the thoughts that the bankruptcy of this association might be true.

All that said...I will go find the meeting notes and see how to contact them.

Again, thank you for responding!

 

[bogey21]

I believe this to be true because we were actually considering getting a bigger unit (the grands will start coming with us) and we found out that the association pulled available association owned units from being able to be looked at for purchase.

Don't do anything vis-a-vis your present ownership status until you are 100% certain what is going on...

George

 

[DaveNV]

Generally if they need to upgrade units, they should have reserve funds set aside from maintenance fees paid. If they don't have that, then a Special Assessment would be in order. But the bigger question is to ask why units have not been upgraded, or if there is a plan to do so. If you have a fixed ownership, or you end up staying in the same unit each time, what are the plans to have those units upgraded? If they're getting more money from the units they upgraded, when do the rest get to follow suit? Again, the HOA needs to be questioned about the state of things.

Dave

 

[toddnlorie]

Don't do anything vis-a-vis your present ownership status until you are 100% certain what is going on...

George

Agreed George, thank you!

 

[toddnlorie]

Generally if they need to upgrade units, they should have reserve funds set aside from maintenance fees paid. If they don't have that, then a Special Assessment would be in order. But the bigger question is to ask why units have not been upgraded, or if there is a plan to do so. If you have a fixed ownership, or you end up staying in the same unit each time, what are the plans to have those units upgraded? If they're getting more money from the units they upgraded, when do the rest get to follow suit? Again, the HOA needs to be questioned about the state of things.

Dave

Again, thank you. I'm typing up a letter right now. I will review it with my husband and send it off this week.

 

[Panina]

I had a timeshare I owned go bankrupt. It was in Atlantic City on the boardwalk and was the first timeshare I owned and the only one I purchased from a developer. The associations goal was to sell the property. At the time they gave me the choice to deed back to them for a small fee or wait and get a portion of the proceeds from a sale. Since there was no guarantee when and if it was sold I signed the deed back. I never checked if they sold.

I would, as you are, start asking questions and if they are considering bankruptcy I would ask them if they would take the deed back. If they will I would get out. I got lucky with mine by giving them back. Even if the resort goes bankrupt, you can still be liable for maintenance fees as the associate will still have bills plus it can take years to sell.

 

[WinniWoman]

I had a timeshare I owned go bankrupt. It was in Atlantic City on the boardwalk and was the first timeshare I owned and the only one I purchased from a developer. The associations goal was to sell the property. At the time they gave me the choice to deed back to them for a small fee or wait and get a portion of the proceeds from a sale. Since there was no guarantee when and if it was sold I signed the deed back. I never checked if they sold.

I would, as you are, start asking questions and if they are considering bankruptcy I would ask them if they would take the deed back. If they will I would get out. I got lucky with mine by giving them back. Even if the resort goes bankrupt, you can still be liable for maintenance fees as the associate will still have bills plus it can take years to sell.

Love the new pic!

 

[Panina]

Love the new pic!

Thanks, This one actually looks like me.

 

[pedro47]

We wants own a lease timeshare at 560 Ocean Club in Atlantic City. We loss the use of the property and our money.

 

[pedro47]

Panda, did you own the property 560 Ocean Club on the boardwalk in Atlantic City, NJ?
Great location on the boardwalk and to the casinos.

I had a timeshare I owned go bankrupt. It was in Atlantic City on the boardwalk and was the first timeshare I owned and the only one I purchased from a developer. The associations goal was to sell the property. At the time they gave me the choice to deed back to them for a small fee or wait and get a portion of the proceeds from a sale. Since there was no guarantee when and if it was sold I signed the deed back. I never checked if they sold.

I would, as you are, start asking questions and if they are considering bankruptcy I would ask them if they would take the deed back. If they will I would get out. I got lucky with mine by giving them back. Even if the resort goes bankrupt, you can still be liable for maintenance fees as the associate will still have bills plus it can take years to sell.

 

[Panina]

Panda, did you own the property 560 Ocean Club on the boardwalk in Atlantic City, NJ?
Great location on the boardwalk and to the casinos.

I owned La Renaissance. It was sad what became of it.

 

[pedro47]

I remember that property it was a white building on the boardwalk.

 

[Panina]

I remember that property it was a white building on the boardwalk.

Yes, prime location, was high end when it started out. It gave me the highest end trades until the last three years. Today it would be called a boutique timeshare.

 

[toddnlorie]

Well, we got notice yesterday that the association is filing Chapter 11 Bankruptcy at the end of this month. According the FAQ’s we only have use of the units until the end of this month (if it were to be an assigned week for us, it is not). Apparently the land, etc reverts back to the original land owner and they have paid any debt that the association had as well as have the money for the attorney saved so we shouldn’t owe anything else. I guess we shall see. The FAQ’s also said it could take the better of 2019 to get it all done and they aren’t sure if we will get anything that says we are no longer liable for assessment fees. I guess it is a bunch of wait and see though I wonder if we should contact our attorney for his opinion.

We are sad for the lost future memories we were hoping to make with our grandchildren but are glad to be out from under the fees.

Merry Christmas all!

I think hearsay is never reliable, since it's just gossip. I'd suggest going to the association and asking directly what is going on, is there truth to the rumors of potential bankruptcy, if so, why is that? Ask why available units were taken off the market, and what can you do if you'd like to buy a larger unit. I'd be quite surprised if a proper management company in Manson would even be thinking of bankruptcy, given how busy the place can be. A timeshare is a jointly owned venture, so if bankruptcy is being discussed why aren't owners involved in the discussion? If it's busy, there is income. Bankruptcy would only be considered if they were behind on debt and such. Assets could be sold to one of the other associations in the same location, I'd think for a nice amount.

You need to ask what is going on.

Dave

 

[Panina]

Well, we got notice yesterday that the association is filing Chapter 11 Bankruptcy at the end of this month. According the FAQ’s we only have use of the units until the end of this month (if it were to be an assigned week for us, it is not). Apparently the land, etc reverts back to the original land owner and they have paid any debt that the association had as well as have the money for the attorney saved so we shouldn’t owe anything else. I guess we shall see. The FAQ’s also said it could take the better of 2019 to get it all done and they aren’t sure if we will get anything that says we are no longer liable for assessment fees. I guess it is a bunch of wait and see though I wonder if we should contact our attorney for his opinion.

We are sad for the lost future memories we were hoping to make with our grandchildren but are glad to be out from under the fees.

Merry Christmas all!

Now you know for sure. Not much your attorney will be able to tell you. When my timeshare went bankrupt I called it’s attorney’s office and they answered my questions.

 

[bogey21]

At least you have certainty with no future out of pocket expenses...

George

 

[redoctober31983]

Well, we got notice yesterday that the association is filing Chapter 11 Bankruptcy at the end of this month. According the FAQ’s we only have use of the units until the end of this month (if it were to be an assigned week for us, it is not). Apparently the land, etc reverts back to the original land owner and they have paid any debt that the association had as well as have the money for the attorney saved so we shouldn’t owe anything else. I guess we shall see. The FAQ’s also said it could take the better of 2019 to get it all done and they aren’t sure if we will get anything that says we are no longer liable for assessment fees. I guess it is a bunch of wait and see though I wonder if we should contact our attorney for his opinion.

We are sad for the lost future memories we were hoping to make with our grandchildren but are glad to be out from under the fees.

Merry Christmas all!

Which association was this? Was this wapato? I know lodge is in good shape, beach is in the middle of a huge renovation with their units and the mf's went up pretty high to cover that but those fees drop off in a couple years.

I get ahead of myself, you said it was a 4 week a year association which means it could be NEKQUELEKIN but they were just preparing to do renovations this year. YACINDE is 5 week association, so now I'm at all loss as to which one it is.

Please please share which association you are talking about. Thanks!

 

[toddnlorie]

Yes, at Wapato Point. It is public record that the Ellowee Association has now declared bankruptcy.

Which association was this? Was this wapato? I know lodge is in good shape, beach is in the middle of a huge renovation with their units and the mf's went up pretty high to cover that but those fees drop off in a couple years.

I get ahead of myself, you said it was a 4 week a year association which means it could be NEKQUELEKIN but they were just preparing to do renovations this year. YACINDE is 5 week association, so now I'm at all loss as to which one it is.

Please please share which association you are talking about. Thanks!

 

[redoctober31983]

Yes, at Wapato Point. It is public record that the Ellowee Association has now declared bankruptcy.

Dang! Haven't heard about that yet. Glad I went with my gut and went with the lodge association. Found a good deal where the owner was giving it away, paying all of 2019 mf's, paid all closing costs as well. My parents have owned in lodge for 20 years and I've enjoyed all the time at wapato I figured it was time to get my own!

I hope I didn't just make a mistake with this.

 

[bogey21]

I wonder if we should contact our attorney for his opinion.

In general attorneys are a waste of money for things like this...

George

 

[ljhomes]

The annual meeting of the YACINDE Association is tonight. It appears that a huge number of units are now Association-owned...possibly 20-25%. The board is increasing fees by 10% because the remaining owners have to cover the per unit costs of the empty Association units. These units are not saleable - only 3 sold in 2019 - and the Association is marketing with perks no owner can offer - up to a year free dues, no closing costs. They also will not accept "returns." I am thinking of stopping dues payments as this place is headed for a lifetime "in the hole." I suggested that we sell/give the property to a major resort operator but it is an emotional issue and no one is willing to bite this bullet. PS: We have owned our unit for 40 years so we have seen all of the changes and management errors that are now coming to a terrible head! Any ideas?

 

[toddnlorie]

I started this thread in Aug of 2018 and Ellowee is still not done with the bankruptcy process. It is insanely frustrating to get only the most basic of information, which is actually coming from he court not the association, about what is happening. I sure wish this was done and over with so I don’t have to think/worry about it anymore!

The annual meeting of the YACINDE Association is tonight. It appears that a huge number of units are now Association-owned...possibly 20-25%. The board is increasing fees by 10% because the remaining owners have to cover the per unit costs of the empty Association units. These units are not saleable - only 3 sold in 2019 - and the Association is marketing with perks no owner can offer - up to a year free dues, no closing costs. They also will not accept "returns." I am thinking of stopping dues payments as this place is headed for a lifetime "in the hole." I suggested that we sell/give the property to a major resort operator but it is an emotional issue and no one is willing to bite this bullet. PS: We have owned our unit for 40 years so we have seen all of the changes and management errors that are now coming to a terrible head! Any ideas?

 

[L & P Baker]

I was told that Ellowee will be demolished and will likely have full share units built in it's place