While timeshare owners are looking for financial and timeshare relief during these tough economic times, they need to prepare for special assessment fees courtesy of timeshare developers. The current economic climate has created a troubling trickle-down effect. With timeshare corporations no longer able to easily access credit, they are eyeing another source of revenue — all their timeshare owners.
While some timeshare owners know of the special assessment fee, few know that timeshare resorts can call for nearly any amount they deem necessary. The financial impact for these economic extenuating circumstances can add up to high dollar amounts for owners.
Timeshare corporations are corporations. They are in business to make profit. During a time when it’s hard to make ends meet, timeshare owners are receiving special assessment fee bills in the hundreds and even in the thousands of dollars. For some, it’s a sobering realization of what these types of vacation packages really do cost.
Some owners are wondering what happened to the thousands of dollars paid upfront and the timeshare maintenance fees. Wouldn’t those dollars be enough to weather the economic storm? It’s not in many cases. Timeshare entities use the revenue and accounts receivable to obtain leveraged loans to develop more resort units. In bad times, shortfalls occur in paying these loans, hence owners are assessed the extra fees.
And what if the special assessment fees are not paid? Not surprisingly, many timeshare contracts are skewed in favor of the developer. They charge non-payment penalties, garner wages, and put liens on real property like the homes of timeshare owners. What’s worse, default judgments can impose these penalties immediately following the payment due date.
Even in decent economic times, solutions are few for timeshare relief. Desperate resorts have rented units far below annual maintenance fees, and timeshare resales have always been notoriously difficult. Now, resales are next to impossible for owners. Who has the money to buy? And, who wants to pay a large special assessment bill? No one.
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