Timeshare Condos

Wyndham Vacation Ownership (Wyndham timeshare) has announced its new affiliation in an exclusive sales and marketing agreement with Smugglers’ Notch Management Company, Ltd. Plans at this time call for all of the unsold interests in Smugglers’ Notch timeshare to become part of CLUB WYNDHAM Plus ®.

Franz Hanning, president and chief executive officer, Wyndham Vacation Ownership, says, “This is another significant step in executing our fee-for-service timeshare sales model while bringing a truly premier destination into our world-class portfolio of resorts. Smugglers’ Notch has a proud history of providing family-friendly vacations, which aligns with our business model of providing memorable vacation experiences for families. The affiliation with Smugglers’ Notch facilitates our expansion in New England and is also a win-win for two great brands.”

Sales are expected to begin in Spring 2011, with the property to be operated as a Wyndham Vacation Ownership affiliated resorts. Structured within CLUB WYNDHAM Plus ®, Wyndham’s points based internal timeshare exchange program, the new affiliation will make Smuggler’s Notch part of a network of over 70 resorts and tours. The sale of residential homes and the leasing of vacation rentals at Smuggler’s Notch will continue to be managed by Smugglers’ Notch Management Company, Ltd.

Other resorts that are part of an exclusive sales and marketing fee-for-service agreement with Wyndham include the 137 condominium-style units at the re-branded Wyndham Vacation Resorts Towers on the Grove at North Myrtle Beach, South Carolina, and 256 condominium-style units of vacation ownership at the rebranded Wyndham Vacation Resorts Reunion in Orlando, Florida.

Wyndham Worldwide, parent company of Wyndham Vacation Club (Wyndham timeshare), thinks conversion to US and Caribbean timeshares is a viable solution for an estimated 5000 unsold condos and hotel units. Wyndham Worldwide’s CEO Steve Holmes not only believes it is do-able but feels that it can be profitable and beneficial for Wyndham.

Currently in a recovery period, (like much of the timeshare industry) Wyndham expects to generate around $1.8 billion in revenue this year from timeshare sales, financing, and property management fees, according to an article by Brad Berton on Forbes.com.

But Wyndham’s conversion-to-timeshare plan, it seems, has a second-hand element to it—or maybe that’s third-hand. Rather than put up the equity of fifteen to forty percent typically required in converting thousands of condos to timeshare units, Wyndham plans to do so on a third-party basis. The company will not be assuming the risk of being principal developer in this massive effort.

Wyndham timeshare currently includes approximately 820,000 timeshare owners and some 20,000 timeshare units at more than 150 resorts.

And following up on other recent attention-getting news by Wyndham timeshare is the observation that the referee involved in the ball-tossing altercation with Wyndham Vacation Club CEO, Franz Hanning, was, as predicted, suspended for one game by the NBA for his role in the incident. See: Would You Play Ball With Wyndham Timeshare CEO Franz Hanning?

Since the media seems to prefer to cover more stories of timeshare scams and problems than the testimonials of the many very happy timeshare owners, it can be easy to get the impression that timeshare is the only part of the vacation industry where unscrupulous people try to make money by preying on others.

But when you hear the recent accounts of house stealing, you realize that no industry can be fully insulated—no matter how hard they many try.

House stealing is a crime on the rise and while it shows up in all areas of real estate, privately owned vacation homes can be especially vulnerable.

The crime begins with the identity theft of the vacation home owner (although any property can be at risk). At a vacation home, it can be especially easy to set up mail delivery to the physical address because the absentee owner might never realize this has occurred. However, even safeguarding your mail delivery is not enough to protect you. Home stealers can also operate without access to your mail.

The criminal then uses standard forms for real estate transfer (available at any office supply store) to transfer your vacation home property (at this point they have fake IDs to prove they are “you”) to whomever is their working partner in their crime or even back to their own real identity. Now they appear to own your home, which they can then sell or refinance—either way, keeping any cash for themselves.

Some vacation home stealers take photos of the property to make it easier to sell it online. Out of state buyers may not visit the home for many months. Little will that buyer know that the photos (which could be real pictures of your vacation home or could be photos of any other property) and the keys he received to the front door are totally bogus.

Self Defense for Vacation Home Owners

Owning a vacation home you only visit occasionally has always come with its own measure of challenges, including maintenance, security, and ongoing repairs that all fall to the homeowner. Now it seems that the risk of scams, fraud, and house stealing have become part of the package too.

Here’s what the FBI advises to help you protect yourself, “From time to time, it’s also a good idea to check all information pertaining to your house through your county’s deeds office. If you see any paperwork you don’t recognize or any signature that is not yours, look into it.” They also suggest that you be vigilant about getting to the root of any documents you receive in the mail that are related to a mortgage or property transaction. Don’t just assume that because they aren’t from your mortgage company that they are a paperwork error. They could be the tip of the iceberg to a serious crime, of which you may be the victim.

The Timeshare Alternative

Owning timeshare means vacation ownership where you only pay for the days and nights you are entitled to use the property—and not for all the days your schedule wouldn’t permit you to be enjoying it anyway.

Timeshare ownership means that someone is always at your resort property, 365 day a year. Your timeshare vacation home is never a vulnerable empty site, prey to criminals.

When repairs or maintenance is warranted, your timeshare is covered. Your annual fees, along with the fees of all the co-owners at your timeshare resort, take care of not only the cost of the service but the property management to get the job done and follow up that it is done properly.

Owning a timeshare or timeshare resale gives you vacation opportunities at your favorite destination, but, let’s face it, it eliminates many of the vacation homeowner headaches and concerns.

Are you familiar with the concept of the reverse mortgage? A reverse mortgage or reverse equity mortgage is a financial instrument through which senior citizens (age 62 and over) can create an ongoing cash flow tied to the equity in their home. In simplified terms, homeowners who have reverse mortgages receive a lump sum payment followed by periodic payments (typically monthly) or a credit line from the holder of their reverse mortgage. Reverse mortgages are somewhat like home equity loans, except that no repayment of the loan is required until the property is sold or the homeowner dies. At that point, the loan plus interest is then repaid.

But from time to time the question comes up about using a reverse mortgage for a timeshare condo. Despite the fact that reverse mortgage have been available for condo owners and for co-op owners, they have never been available for owners of timeshare condos. Timeshare condo owners, no matter how many weeks of timeshare they own, cannot utilize reverse mortgages.

While the laws are changing regarding reverse mortgages and condo ownership, don’t expect any change on the matter of timeshare condos. With the changes, most condominium owners who want to obtain an FHA-insured reverse mortgage must apply for the loan and receive a counseling certificate prior to a designated cut-off date of October 1 of this year. Yes, there will still be reverse mortgages available to condo owners after that date, but most of the condos that had been previously certified to qualify for these mortgages will have to be re-qualified, and none of them now or after requalification will be timeshare condos.