"Postcard" Threat to Future of Timeshare

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Newshound

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"Postcard" Threat to Future of Timeshare
« on: April 01, 2011, 19:00:41 »
At the ARDA conference in Orlando, the phrase "Postcard Company" has  been a recurring theme in the moderated discussion groups. These  companies have come to the forefront as more timeshare associations  attempt to deal with abandoned ownerships and the financial impact these  companies have on the resort's annual budget.

With the economic  decline, many individual timeshare owners have been searching for a way  to liquidate their ownerships and find freedom from the annual  maintenance fee assessments. As resale values decline, more consumers  are finding that paying thousands to a post card company is the only way  out! However, with scams increasing plus the creation of "Viking Ship"  LLC's where these intervals are deeded and then abandoned- the threat to  the industry has finally reached the point where developers can no  longer ignore what is happening!

There are both good and bad  suggestions about how to deal with this issue.. Bad ones include  increased transfer fees, more complicated estoppels procedures, and even  the suggestion that associations parrot the "pay us to take your  timeshare" models. On the positive side, there are repeated calls that  associations need to finally embrace resales to create a viable  secondary market as a safe and effective exit strategy.

Discussions of  developer reacquisition or buyback programs, or even the potential that  timeshare HOA's could simply agree to accept unwanted weeks back at no  charge don't seem to be very popular at this time, but are at least  being placed on the table as possible solutions. There is no argument,  however, that increased communication between the HOA's and the  individual owners is needed.



: The Timeshare Lord

« Last Edit: April 02, 2011, 07:42:49 by Boss Man »