Timeshare Is Closing and In Disrepair

I foolishly got a timeshare from my mother for $10. I realized later that this property was run down. Fast forward two years and the timeshare property is no longer accepting reservations and is beginning to prepare to sell the property at some point in the next few years. The BOARD has decided the only economic solution is to immediately take steps to terminate the plan. My account is up to date and I don't owe any fees for the year. However, after yesterdays email, they are demanding to pay 1400 dollars in the next 30 days and then again pay 999 dollars in 2025. I am at a loss and finding any kin d of legal counsel for this has been futile. Basically they say the fees will be used to pay fixed resort costs and legal, foreclosure, and other fees tot terminate the timeshare plan and prepare the resort for sale. Any advice or thoughts on this matter?

devins52 wrote:

I foolishly got a timeshare from my mother for $10. I realized later that this property was run down. Fast forward two years and the timeshare property is no longer accepting reservations and is beginning to prepare to sell the property at some point in the next few years. The BOARD has decided the only economic solution is to immediately take steps to terminate the plan. My account is up to date and I don't owe any fees for the year. However, after yesterdays email, they are demanding to pay 1400 dollars in the next 30 days and then again pay 999 dollars in 2025. I am at a loss and finding any kin d of legal counsel for this has been futile. Basically they say the fees will be used to pay fixed resort costs and legal, foreclosure, and other fees tot terminate the timeshare plan and prepare the resort for sale. Any advice or thoughts on this matter?

My response following is NOT intended as legal advice nor as any form of substittute for obtaining legal advice from a licensed professional in your state and / or that of the timeshare property. That disclaimer having now been made crystal clear, I'll offer a few generic observations below.

Dissolution of a timeshare plan typically first requires a super majority (often 75%) of owners to formally agree. This is generally NOT a decision that a Board can just make entirely on its' own, independent of the owners. That process (including completing foreclosures for all ownerships that don't choose to pony up) obviously takes time. Upon owner approval of timeshare dissolution by super majority vote and formal dissolution of the timeshare plan, the property can then be put up for sale. Upon sale, owners in good standing at that time will equally divide net proceeds, per unit / week owned ("net" meaning after the lawyers extract their exorbitant fees, of course, as well as resolution of any outstanding debts). Other factors will also come into play, such as the actual value of the property on the open market, the number of interval owners involved in "distribution" of proceeds, resolution of any unpaid bills, liens, real estate taxes, attorney fees, etc. The need to support and secure the property infrastructure in the meantime is very real and obviously costs money --- nothing is free. Hence the request / requirement for payment of fees into 2025.

If you decide to pay (about $2,400, by your account) while the timeshare dissolution process and property sale moves (...slowly) forward, there may be a significant financial "return" for you in a few years --- but maybe not. It's your own personal choice and decision whether or not to "invest" now for a potentially larger payout later. That's the best answer you're going to get from anyone without detailed knowledge, insight and specific figures regarding the nature and the potential market value of the property and its' current debts, liens, taxes and the (as yet unknown) legal costs associated with dissolution, sale, and future distribution of "net" proceeds (...if any). There is never anything at all pretty or easy (or quick) when it comes to the termination of a timeshare. Good luck.