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.
In many cases, owners sign contracts that allow their home resorts to charge them special assessment fees when warranted. The size of the fees are determined by the resorts and can be rather arbitrary. Some owners are unaware of these policies.
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.
You would think that the millions in upfront cost and annual maintenance fees would be able to keep afloat all timeshare resorts. Unfortunately, many corporations leverage what they have to build more timeshare units in different locales. This strategy works well in good economic times but tragically multiplies the draining effect when credit is scarce and when revenue decreases.
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.
With the timeshare resales market already saturated, there is little left to do but to pay the bills and keep the timeshare. Many charities don’t even want the liabilities. For some timeshare relief, owners can try to rent their units to recoup some cost. But, they need to realize that their resorts are probably doing the same thing, yet at lower rental rates.
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