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Home Travel Travel Tips How To Survive Timeshare Ownership During Economic Crisis
How To Survive Timeshare Ownership During Economic Crisis PDF Print E-mail
Written by Bobby Kip Hernandez   
While timeshare owners are looking for financial 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.
by BobbyKipHernandez


While timeshare owners are looking for financial 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.

Many timeshare contracts allow the timeshare companies to charge special assessment fees for repairs, emergencies and extenuating circumstances regarding the timeshare resort. Moreover, those fees may have no cap, and many owners do not know their obligations until it is too late.

Recently, timeshare owners have opened up their mailboxes to find bills ranging from $500 upwards of $3,000. It's a crushing blow to those who may have lost jobs, experienced cuts in pay and/or work hours, and seen their stock portfolios plummet in value. Owners are truly understanding where they fit in the financial pecking order of the timeshare industry.

Even with the bad economy, why are the special assessments so large? In good times, developers can leverage the upfront fees that owners pay or finance to get new commercial loans to build more timeshares. As timeshare sales drop, there may be no income to pay the interest and principal on the loans. The maintenance fees are not enough to cover everything.

But owners should not think about NOT paying those timeshare bills. Through decades of legal precedence, timeshare companies can and do impose stiff penalties for non-compliance. These include high interest rates on principal owed, collecting debt through employers, and placing liens on assets like homes, bank accounts, etc.

Even in decent economic times, solutions are few. Desperate resorts have rented units far below annual maintenance fees, and timeshare resales have always been notoriously difficult. Now, resales are next to impossible. Who has the money to buy? And, who wants to pay a large special assessment bill? No one.

About The Author:

There is a unique solution to your timeshare resale problem. To discover what over 20,000 other timeshare owners did with their unwanted timeshares, go to Timeshare Relief or call 800-588-1582, and sign up for a free consultation.

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