May 6, 2020 (updated January 30, 2024
A lobbyist’s bizarre comment to bear in mind when reading 15 timeshare exit nightmares
“Their value comes from using it,” the timeshare industry’s top lobbyist told ConsumerAffairs in January, admitting that points have no resale value, while claiming that consumers don’t mind this because the value comes from the experience.
By Irene Parker
Several resorts offer a responsible exit. An Ozark, Missouri timeshare my family loved for 30 years took our timeshare back. We had no medical hardship. I explained that as a Missouri native, now living in Florida, I no longer wanted to vacation in Missouri. The GM responded, “Yeah, we can’t hold faithful owners hostage, those who paid maintenance fees for over 30 years. We had a board meeting and agreed we need to take units back.”
There was no fee. We were left with nothing but wonderful vacation memories – no mental anguish, unlike the following owners who battled release.
How could you know 30 years ago, that there would be little to no secondary market for your timeshare? Who would buy a timeshare if they had known they could not sell or give it back. What other product holds you hostage for life? What house can you not sell if there is an outstanding loan?
Section 5(a) of the Federal Trade Commission Act (FTC Act) (15 USC §45) states:
In order to determine whether an act or practice is “unfair,” the FDIC will consider whether the practice “causes or is likely to cause substantial injury to consumers which cannot be reasonably avoided by consumers themselves and are not outweighed by countervailing benefits to consumers or to competition.”
Annual Reports from some publicly traded timeshare companies state, “A viable secondary market is a risk to investors.”
One private equity firm touted the lack of a secondary market as a reason to buy the timeshare company’s stock!
There are a few websites and specialized brokers in timeshare hotbeds like Maui, but timeshares are hard to sell in general, and when they do sell, it is often at a very significant discount to the original price paid….. The secondary market has undoubtedly had its growth stunted because the absence of the market creates an opportunity for the timeshare companies. Mr. Steve Miller, Greenhaven Road Capital, July 2016
FIFTEEN TIMESHARE EXITS
#1 The Villas at Hickory Hills, one of five resorts owned by Crown Hills Ltd in Mississippi. Recognized by ARDA http://www.crownresortsltd.com/
By the time Maury, age 75, an Air Force veteran, became bedridden, he was too weak to submit medical documentation.
Hickory Hills Criteria for release:
1. Bedridden
2. Nursing home resident
3. Diagnosed with a terminal disease
A Mississippi attorney, who asked not to be identified, informed us that this resort will never default, hoping heirs will not know they can disclaim the inheritance. Requirements vary by state and may be time sensitive.
Maury provided Hickory Hills a letter from his doctor dated December 17, 2019 describing why he doesn’t travel:
“I was diagnosed with cancer 12 to 14 years ago. I have been under the care of an oncologist since 2007. In 2011 I had a stem cell transplant. The stem cells killed everything in my body. When they put the stem cells back, some were good and some were bad. My equilibrium is shot. I am losing the use of my legs. Infusions cause nightmares. I don’t travel. I have to take a van to go to the grocery store. I bought the timeshare to be able to exchange to Hawaii. We used it once in 1985. I paid $2,000 to different people and organizations to be released. There is a special assessment this year to prevent the resort from losing their RCI accreditation. I called my state Representative, a fellow Mason He said he had to hire a lawyer to get out of his timeshare.
#2 Vacation Villas @ Fantasy World, Kissimmee, Florida, defaulted
Kathleen and Victor, Disabled Air Force veteran, California, ages 64 and 66
We only used the unit twice in 20 years. We tried donating the timeshare in 2008 with no results. We paid $699 to All Reality Services, Inc. They did nothing. I wrote letters in December of 2019 asking the resort to take the timeshare back because we had traumatic sudden deaths in our family. One of my sons was murdered. My other son has Down’s syndrome. My husband and I both have major health issues and can’t travel. We live on the west coast and the resort is in Florida. We were offered a program called a “wind down” that would cost much money and years to exit.
I offered to pay maintenance fees for 2020 and 2021. They refused. I remember being told maintenance fees will only be $400 per year with a locked-in rate. Our maintenance fees are now close to $800. We were told that the timeshare is considered owned property and that we could claim income tax deductions. We were led to believe selling the timeshare would be easy. It is not.
The HOA representative suggested bankruptcy. According to an attorney, this is bad advice. Because a timeshare is worthless, it may become an abandoned asset. After seven years, you may learn it has not been foreclosed and you still own it. This has happened.
After receiving the following bizarre response from the HOA president, I contacted ARDA’s Coalition for Responsible Exit. They did not help.
We are not a timeshare developer. We are the not-for-profit owners’ association made up of all the people who own a timeshare at Vacation Villas. Like the HOA or condo where you may live, our owners’ association is governed by a volunteer board of directors elected from amongst the owners.
Let me give you an analogy. Say you bought a house in an HOA with a community pool. Every homeowner is billed to maintain common areas. When you purchased your home, you knew about the pool. For 20 years you used the pool (maybe not every day) and paid maintenance fees. Now you’re older and you aren’t using the pool like you used to. Now you’re asking the HOA to stop billing you for the pool maintenance knowing that if they do, all the other homeowners will have to pay a little bit more to make up for the amount you aren’t paying. That’s not fair to your neighbors, is it? If we started playing favorites, then we would expect to hear from you advocating for the families being forced to pay more. I understand that it is hard to sell a timeshare. Trust me, I know. If I had a Smith family that wanted the week, I’d introduce them to the family and we’d all be happy. Unfortunately, I don’t have a Smith family waiting to get a week. We don’t have a sales force or a marketing arm.
The 2020 maintenance fee is $909.93, but likely will increase between now and 2030. The balance will likely be between $9,000 and $11,000. When any owner contacts our owners association claiming a hardship and needing to end their timeshare ownership, they are offered the opportunity to surrender their deed upon payment of an amount estimated to cover the remaining fixed expenses that the owners association will incur until the end of the timeshare plan. We consider this to be fair and reasonable.
If the family truly cannot afford to meet their financial obligations, they are welcome to seek bankruptcy protection. While this will likely result in the other timeshare owners at Vacation Villas at FantasyWorld being forced to pay more, we will rest comfortably knowing that a judge fully investigated the family’s financial circumstances before acting in the best interests of society. We do not have the resources to do these investigations. We trust the bankruptcy courts to do the right thing.
In closing, allow me, an unpaid advocate for timeshare owners of all ages at Vacation Villas at FantasyWorld, to suggest that other advocates not reference the propaganda presented by a lobbying group funded by the people profiting from timeshare owners. ARDA is an organization of timeshare DEVELOPERS (that is what the D stands for). I also wouldn’t recommend you ask the National Association of Foxes for advice on the best practices for securing hen houses.
Warmest Regards
An excerpt of Kathleen’s emailed response to the HOA president:
April 22, 2020
The industry supposedly recognizes that people facing legitimate medical hardship should be allowed a responsible exit. I have no intention of paying further maintenance fees as your policies are afield of industry practices that recognize people should not be held hostage for a product they can’t use, sell or give away. As far as a “wind down” travel club, when someone is in the midst of a medical crisis, the last thing they need is a new vacation plan. I feel this is Elder Abuse.
#3 Dorothy C, age 90, a Florida resident – Resolved
Dorothy suffered a fall, breaking her jaw in three places. Medicare did not cover wiring her jaw. She could not afford her timeshare maintenance fees. She doesn’t use the timeshare. She doesn’t drive.
A volunteer contacted the resort on Dorothy’s behalf to ask about their general exit policy. Negotiating menu options can be challenging for those with medical or age-related issues. The resort said they have no exit program. Another volunteer secured the name of a person in the title department. We called. The agent said they would need to speak with Dorothy. When we checked in a few days later, Dorothy said the resort refused to take back her timeshare because she had talked to Irene Parker! A volunteer! Dorothy said when she had contacted the resort in previous years, she had been told the resort does not take timeshares back. Irene called the title agent. They hung up. A few minutes later Dorothy called. She said the resort called and said they would release her!
#4 A resort in the Northeast that reluctantly took back Helen’s timeshare, Helen is 88 years old
This resort had to pay owners over $1 million having lost a lawsuit over admitted deceptive practices.
Helen needed help finding the right person to speak with about surrendering her timeshare. Helen had no email. We explained that Helen is 88, a widow, and had to give up her driver’s license. Helen described the representative’s response as a sneer, “Anyone that thinks they can get you out of your timeshare is just stringing you along.”
Astonished, we sent emails to the company’s principals. After a few back and forth emails, they released Helen from her timeshare, saying they would make an exception this time. In their initial response they said, “We can’t take back timeshares from everyone who has a sad story.”
#5 The Seasons Resort at Sugarbush in Vermont Defaulted
A 9/7/2020 update from Melissa: This is the second year I have not paid my maintenance fees. The Attorney General of VT contacted me and said they researched my claim and although he did not approve of the rude responses I received; they could not help. I recently bought a house and there were no claims against me on my credit report. I am still sick over all the $$$ I lost over the years…but they will not receive a cent more! Thanks for all you do in this fight!
By Melissa
My YouTube: https://www.youtube.com/watch?v=WHWCYT5WP0E&feature=youtu.be
I bought The Seasons Resort at Sugarbush timeshare in Vermont over 15 years ago. I still have the literature they gave us that clearly states that there is a market for secondhand timeshares and I could profit from it just like real estate. We were told the timeshare will accrue value. I tried to sell it by following the instructions in the pamphlet. Nothing worked. I received this remarkable written response from a Sugarbush manager:
1. Our current owners are renting for premium dollars and receiving a very high rate of return on their investment, because of supply and demand,
2. If you rent your unit for less than 15 days/year, the rental income will not be included in income–thus the income is tax free and you would be able to deduct interest paid.
3. The timeshare won’t be difficult to resell due to lack of accommodations in the Sugarbush area,
4. Don’t listen to family & friends because it is an investment and a guarantee that we would take a vacation every year,
5. It is up to me to sell a timeshare, the same as if I had bought a house or car (except houses and cars have a secondary market),
6. I signed a contract so it didn’t matter what the sales agents told us.
The manager claimed many owners have sold their timeshares on Craigslist. I went on Craigslist and found three listings for The Seasons Resort at Sugarbush. They were all selling for a fraction of what I paid for mine.
I submitted a complaint to the Vermont Attorney General’s office. I cited state laws banning the use of deceptive sales practices and the distribution of misleading pamphlets. https://www.truthinadvertising.org/
Sadly, we cannot rely on laws to be enforced or on regulatory authorities. When laws and authorities are not there, media outcry is the only option. The way to stop companies from taking advantage of consumers is for consumers to be armed with the truth so they can make an informed judgment before purchasing a timeshare.
#6 A resort in New Hampshire, Joseph, an Army veteran (Joseph passed away July 2020), defaulted
Written by Joseph’s son-in-law, Dave:
My father-in-law, age 86, a Korean War Army veteran, purchased a Crown Ridge timeshare in New Hampshire 20 years ago. They never used it. His vision is so bad he cannot send an email. He lost 80% of his vision due to the side effects of a heart medication. He suffered his first heart attack 20 years ago and a second three years later. Not long ago his blood pressure went up to 210/164 and then dropped to 55/40. My mother-in-law Winnie is 81. She is diabetic and is treated for high blood pressure. Winnie is not computer literate and Joseph can’t see.
I sent Crown Ridge an email asking for a medical hardship release. They had been current on maintenance fees until three years ago when Joseph paid a company $1,200 to get them out of the timeshare. The company was a scam. They still receive calls offering help. One company recently quoted them a price of $2,400 to $4,500.
I received the following response from the manager of Crown Ridge.
“I have received your letter and will bring it to the next Board Meeting. Please understand that the Association does not take back units.”
Their only option is default. Regardless of the letter of the law, it is morally wrong to hold seniors hostage. Cars and homes can be sold even with a loan outstanding.
#7 Lehigh Resort Club
Inez, age 87 – Unresolved
I have been paying maintenance fees since 1991. I only used the timeshare a couple of times. We purchased in Florida. We have no loan. When I first bought the timeshare the maintenance fees were $300. Now they are $670. They would not take it back.
On November 21 my niece called and spoke to Richard. He said I should receive a voluntary form. I never received it. Richard sent an email to corporate but nothing has been done. He said he has not heard back. He will not give me the number to call corporate. This back and forth has been going on since August (2019).
#8 Dorothy and Howard in Florida, ages 72 and 90 – deeded back in 2023
July 7, 2020
To Westgate Development Services Department,
I am writing on behalf of my grandparents. I am an attorney, but not officially representing my grandparents. They purchased a Westgate timeshare in January of 2011. In 2018 my grandfather, age 90, suffered serious medical problems. We contacted a licensed broker to sell the timeshare for $99 and signed an agreement May 2019. A couple from New York agreed to purchase in October 2019. Paperwork was sent to Westgate November 2019 which included a “Right of First Refusal Checklist.” Westgate exercised their Right of First Refusal, but not until March 19, 2020. What buyer wants to wait five months to close a real estate transaction?
Westgate’s unnecessary delays are unfair and designed to restrict resale, especially considering my grandparent’s age and medical circumstances.
There is nothing responsible about a company that deliberately prevents a secondary market by not allowing a resale market.
On March 10, 2020, my grandparents sent a letter to Westgate informing them they had paid our broker $800. Westgate replied with a letter dated March 19, 2020, requesting $701 quoting Florida Statute 721.15 (#7).
Westgate questioned the broker’s $800 commission! Westgate owners, the Siegels, are building a 90,000 square foot home with 30 bathrooms, and an ice skating rink featured in the documentary Queen of Versailles. They object to an $800 commission?
According to another Florida licensed broker, “In the fine print of Westgate’s documents it states that Florida Ranchlands Real Estate gets 50% of the Brokers commission. No other Developer does that. Few licensed real estate brokers will list Westgate properties.”
We received a collection letter dated April 24, 2020 from Pinnacle Recovery demanding 2020 maintenance fee plus late fees. According to the contract our Buyer was responsible for 2020 maintenance fees. The buyer now is Westgate. Maintenance fees were current when my grandparents submitted the contract to Westgate. We received a letter from Pinnacle dated May 15, stating they were no longer trying to collect.
Reaction from a licensed broker:
The other broker who talked about the “fine print of Westgate’s documents” is wrong. There is nothing anywhere about taking a share of a broker’s commission. They simply made it up on the fly. They basically told brokers, “Either play along and get half your commission or we won’t allow the sale to proceed and you get nothing.” I received letters from Westgate about this as well. The FL Real Estate Commission should be contacted to determine if what they are doing is completely illegal. Hundreds of deals have been taken from brokers. I never gave them one dime of my commissions. The other brokers simply folded and gave up. I would think getting the FL Real Estate Commission to look into this would be a worthy goal.
#9 Jackie in Virginia by her daughter, Toshia:
Two Jackies: One in Virginia, and Jackie Siegel, Queen of Versailles:
The Queen of Versailles Jackie: https://www.youtube.com/watch?v=54DuxvrzKiU
My mom is 69 years old and has had four surgeries, the last replacing her second shoulder. Despite serious medical hardship, she was told by Westgate’s Legacy representative that they would not take her week back because it was a 1 BR unit. She bought the timeshare in 2004. She used it once.
#10 A husband and wife, both diagnosed with cancer, were not allowed an exit from Westgate until the owner was listed as a witness in a lawsuit. According to this owner:
The Legacy Responsible Exit department transferred me to Maureen, a Westgate Supervisor. Maureen informed me that Westgate does not have a responsible exit program and that ARDA’s Coalition for Responsible Exit “is not our website.” According to an industry article, Westgate is one of the founders. Maureen told me they would only offer a payment plan. We cannot drive to Branson anymore due to our medical issues. We bought a unit in 1990.
#11 A Resort in Illinois (there aren’t many)
Don K in Chicago, age 71 and Joanie, age 65 – resolved
We payed maintenance fees since 1985 but only used the timeshare once. We paid $6,000 for the timeshare. My wife Joanie lost the use of her legs due to a virus. we cannot travel. The resort asked $6,000 to take back the timeshare. At first they would only reduce the fee to $4,000. We paid maintenance fees monthly because we could not afford to pay them annually. After receiving a copy of an article I submitted for comment, they agreed to $1,500.
On the other hand, our Vail Colorado resort said that on a case by case basis they will take back a timeshare. The fee was about $1,200. This is fair. The GM said in no way would they ever charge $6,000. He told me, “We want to do what is morally right and fiscally responsible.”
#12 Long Boat Lake Club
Larry, age 60, Mississippi
Larry had been on kidney dialysis for three years and had recently been released from the hospital suffering from pneumonia. Our volunteer contacted the resort to find the right person Larry could speak with concerning his request for a voluntary surrender. Larry purchased Long Boat Lake Club in 1985. He only used the timeshare once.
The Long Boat Lake Club General Manager said she didn’t know if they had a responsible exit program. They were not receptive and unresponsive.
#13 Jean in Michigan – Resolved
We were helped by resources provided by the Attorney General in the state where we purchased our timeshare
I was able to be released from our timeshare. We only used the timeshare three times since we purchased in 2007. We had trouble with availability. As educators, we had to travel during peak vacation times. I am 65 years old and my husband is 73. My husband is a retired elementary school principal. I worked in administration. We have always maintained a good credit score. After the BBB and the Florida Attorney General said they would not help us, we reached out to TARDA, staffed by volunteers.
The volunteer asked if we had a medical hardship. We do. My husband had open heart surgery in 1993. In 2015 he had a second open heart surgery. Now he likely needs a procedure due to improve blood flow. He has trouble walking.
The volunteer contacted the resort on our behalf, explaining our medical hardship. They responded that they would take our request to the HOA and to the developer. The next day we received notification that they would take the timeshare back for a modest charge. We are relieved beyond words.
I had contacted the resort several times before reaching out to the Attorney General. I was told they don’t have a buyout program. They said I could deed the timeshare to someone else. Unfortunately, there are so many unwanted timeshares, it is difficult to even give a timeshare away, especially if it an older resort.
Several misrepresentations had been made when we purchased in 2007. We were told that if we experienced life-changing events, there would be options.
Our Florida resort was not listed on ARDA’s Coalition for Responsible Exit website. https://responsibleexit.com/
#14 By a (soon to be former) Florida Timeshare Owner
“I am moved to tears. My timeshare situation has been a nerve wracking situation for many years. The company’s initial response was a denial, but I recently received an answer to a prayer. I am writing in the hope that the industry will address the problems associated with the lack of a viable secondary market. My resort came through for me at the end. I want others to learn from my experience.
After my husband Jim died, I could not afford the maintenance fees. The financial stress was overwhelming. I had difficulty sleeping. My annual income had been cut in half. I had to move to another home to downsize.
My husband and I first became timeshare members January 1, 2004. We used and enjoyed our points in Sedona, Branson, and Florida, but we mostly stayed in Sedona as it was only about an hour away from our home in Gilbert where I worked as an accountant at a performing art center.
As we grew older we had health issues. Jim became ill and passed away July 5, 2015. Losing my life partner was devastating. I contacted my resort in 2017 but was told, “Unfortunately, we do not have a relinquishment, buyback or a resale program.”
I didn’t know what to do so I responded to an exit company ad. They informed me that it would be difficult to get released. I signed their agreement in September of 2017 and terminated my relationship with them July of 2019. The exit company honored their money back guarantee and refunded my money.
Let’s hope timeshare companies, timeshare exit companies, and timeshare members, learn from each other. I would have had to default, at age 80.
#15 by Cindy in New York (resolved)
May 13, 2020
My father is 84 years old and my mother is age 78. My dad served in the Navy Reserves. They attended a timeshare presentation in New York in early 2018, A sales agent falsely told them that if they purchased $70,000 of additional points, they would have a “Self-Sustaining” account that would relieve them and their heirs of maintenance fees. The agent showed them how his family’s account had been set up to avoid paying maintenance fees.
My mother was scheduled for major surgery related to a cancer diagnosis. She attended the presentation because she was worried something might happen to her and that the timeshare would inflict a burden on my brother and me. We later learned heirs rarely are required to accept an inheritance of a timeshare.
They charged $15,000 to a Barclay’s credit card opened up for them by the sales agent and financed $60,000. The points they had previously purchased had been paid in full.
After purchasing, my parents called the timeshare company about the “Self-Sustaining” account. They were told such a program did not exist. They turned to an exit company in Florida and paid them $9,995. In two years, nothing was accomplished but they refused to honor their money back guarantee,
By contacting a TARDA volunteer, I was able to talk to the right person at their resort. Their contract was canceled, but what they had to go through wrecked hardship on their mental and physical health. Before the deception, my parents loved their timeshare. They got to know other families over the years. I used to have fond memories having stayed there myself. When I found out what happened to them, I wanted to cry.
Summary
There are other resorts besides these fifteen with no responsible exit. Knowing the pain the decision to buy a timeshare can cause, why buy one? Yes, there are millions who use and enjoy their timeshare, but your life can take an adverse turn in an instant. A significant proportion of the owners and members who contact us have debilitating medical conditions. A timeshare with an outstanding loan is impossible to sell.
Some resorts fall back on their state statute that stipulates a resort is not required to take back a timeshare. My response to that excuse is that the developer of my primary residence community doesn’t require that my developer take back my home. Who would want to give their home back to their builder? Homes have value. Think about what would happen if the value of our primary homes went to zero. Timeshares were routinely sold as being just like real estate, thus easy to sell.