There is perpetual confusion among timeshare owners as to what “maintenance fees” truly are. Why am I paying them, what is being maintained, how do developers determine what they are, who does that money go to? For the most part, there never seem to be real answers to those questions, sort of like “shipping and handling fees” for products bought on TV. Does is really cost $10.99 for someone to ‘handle’ a set of kitchen knives?

But there is a recent posted item from Disney that sheds a little light on what they consider maintenance.

There will be “the refinishing of wood floors or replacing of carpets; timeshare units repainted, and blinds or drapery replaced. Sofas and love seats are to be reupholstered and all one-bedroom and larger timeshare units … will receive the addition of a twin sleeper chair. Kitchens will gain new granite countertops and new hardware for the cabinetry; ceiling fans will be replaced throughout; and new lamps will be added in the living room and master bedrooms. Electronics will receive an upgrade as all televisions are replaced with flat panel units.”

That’s the sort of transparency that all timeshare developers should be using. That way if your maintenance fees increase dramatically or subtly from year to year, at least you’ll know why, and developers would be far less likely to be able to hide what they are using your money for.

From other web references, here are some other examples of what maintenance fees may cover:

• furnishings and carpet
• property taxes
• Insurance
• cable television
• phone and utilities

The explanation for the blanketing of these fees together is so that you “don’t have to worry about them” yourself, but often the developer won’t give you the option to line item these costs, because they don’t want you to be exactly aware of what they’re charging you for, and they probably don’t want to be legally responsible for paying for something specific – they would want to have the option to spend that money on anything they want.

That flexibility, however, also gives developers the right to increase your fee rate at any time without any real explanation, and that is where the trouble usually starts. You ask why you’re suddenly paying hundreds of dollars per year more than you intended, and they can say, “well, the changing maintenance fees are talked about in your original contract …”

With the downturn in the economy, many people have found themselves unable to pay for the things they still owe money on and look to filing for bankruptcy as an unfortunate circumstance of this. Timeshare owners who declare bankruptcy should take these steps.

1 – Be sure to list your timeshare unit along with all your other debts in your bankruptcy filing. Just like other loans, car payments, or overdue bills, timeshare loan payments and maintenance fees constitute debts. Don’t make any assumptions and always read the fine print when listing, but it is better to present more information than less.

2 – Check with a bankruptcy attorney in your state to find out the laws that apply to timeshares locally. Because a timeshare is not strictly real estate, it is an unsecured debt with little or no resale value. Remember, until you sell it, donate it to a charity or surrender it to the bankruptcy court, you will continue to owe any loan payments and the monthly maintenance fees.

3 – Be sure to find out how selling your vacation timeshare will affect your bankruptcy case before you finalize anything. The devil is in the details with these type of procedures, so make sure that something you don’t understand won’t come back to haunt you. Check every law and regulation to make sure you are protecting yourself. Your credit is already taking a hit, make sure it doesn’t hurt more than it has to.

4 – Before looking into putting your timeshare into your bankruptcy declaration, exhaust all options for renting or donating to charity; also, look into free places where you can list your timeshare in order to sell it. Owners who do manage to sell their timeshares often make back only 10 to 30 percent of the amount they paid, but this is still better than defaulting on payments, declaring bankruptcy, going through foreclosure proceedings, or pretending the problem doesn’t exist .

Also remember, though timeshare developers don’t care about your financial strain, they will understand when the time comes that they can get no more money from you, and at this point they will take the path of least resistance. Inform them of your situation and what you intend to do about it, and you may be able to cut a deal where they will legally take back the timeshare in order to avoid more legal and financial trouble.

Fitch Ratings has gained tremendous respect in the investor community over the last several years by providing highly analytical assessments of the risks and benefits of companies that investors and creditors may get involved with.  In recent news, 10 timeshare related transactions were reviewed by Fitch Ratings and were given a SMARTView date of November 16, 2009.

SMARTView, is a newly designed Fitch Ratings program that reviews companies for a more comprehensive analysis for transparency and accountability.

The review concerning the 10 timeshare related transactions stated that a rating action will not be released for another 30 days. It was also reported that none of the transactions were categorized as “Under Analysis.”

Although we have yet to see the actual ratings for these timeshare related transactions, it is clear that Fitch Ratings provides a well rounded analysis of companies and the risks and benefits of getting involved with them.

Timeshare owners automatically accept a financial obligation to their resort when they sign the contract and it is important for owners to understand the condition and health of the company they are involved with.  Making use out of resources like Fitch Ratings can help timeshare owners make good financial decisions and plan ahead.

In May of 2009, a similar story was released about a Fitch review for the Sierra Timeshares. Owners who tuned in to that story were able to get a good feel for the financial health of the company.

One of Fitch’s main purposes is to provide “opinions that are forward looking and include analysts’ views of future performance.”

Many times the ratings can come back positive with an AAA or AA rating, but it is good to know if a company you are involved with comes back with a BB or D rating. Essentially, you want to know where your investment stands based on the future forecast of the company you are invested with.

Apex Professionals LLC strongly encourages all timeshare owners to take advantage of the information that Fitch Ratings provides and stay in tune to what the future forecast may be for their particular resort/timeshare developer.

You spend the money on the timeshare itself, sign the contracts, agree to the maintenance fees, accept the responsibility of having to schedule vacations and trips potentially months or years in advance, and then, you think to yourself, “I’ve done it!”

Well, not quite. You may assume that with these costs and preparations that your perfect getaway is now budgeted, bought, and paid for. All you have to do is show up, right? Bags in hand, sunglasses and sandals on – now this is the good life!

But there is one factor that is often overlooked when considering these purchased timeshare vacations – the cost of travel itself.

One of the ways timeshare resorts seem desirable is by being located in desirable places: sunny, warm, on the beach, by the ocean, in the big city, far out in the scenic countryside. But you have to get there before you can stay there, and that means plane tickets, rental cars, gas, taxis, and all of those other associated costs.

Knowing that you own a condo in Miami is fantastic. You bought a timeshare there because you know your family deserves time off from their busy lives. So you budget your money so that you spend your cash making sure you get this vacation, that you own this vacation. But then after you pay for the timeshare, a funny detail comes up. How exactly do you realistically afford to get your family there?

You spent your reasonable vacation budget on purchasing a timeshare in a beautiful place, but now there are all of these other things to pay for that make that initial timeshare purchase not seem like such a good idea. They didn’t mention travel costs to exotic places when you were at the timeshare meeting. They didn’t talk about how much plane, train, or bus tickets cost, especially during principal vacationing times, and especially for a whole family.

So, when dealing with timeshare and vacation budgets, don’t get caught up in the beauty and the daydream of where you can travel to, thinking that the geographical financial factors were already presented to you during your initial investment. Make sure to think about how often you can pay how much in order to get how many people there.

The reason that timeshare can often feel too good to be true is because they generally are, and travel costs are a big part of the reason for that reality check.

Three are two major types of timeshare ownership, “deeded” and “non-deeded” (also known as a “right-to-use”), and two major types of scheduling, “fixed” and “floating.” On research of these factors, there seems to be some confusion as to how these ownership and scheduling systems relate to each other, but here is some basic information. If you own or are thinking about owning a timeshare, these are very important details to understand, so make sure you at least know what to ask about.

Deeded Timeshares:

In a deeded timeshare, the timeshare owner purchases an ownership interest in a specific piece of real estate. Officially, a deeded timeshare gives timeshare owners true property ownership. The deed is recorded in the county where the property exists, and the property has the same rights of ownership as other deeded real estate.

The  majority of timeshares are deeded.

Non-deeded Timeshares:

In a non-deed timeshare, the timeshare owner purchases a lease, license, or club membership to use a property for a specific amount of time each year for an agreed-upon number of years. Many non-deeded timeshares are located on leased land such as in Mexico and Hawaii.

Fixed-Time Scheduling:

In “fixed-time” or “fixed unit” arrangements, typically the buyer purchases a particular unit and a particular week in the year – this arrangement can either come from the initial agreement you make with the timeshare company or through a scheduled appointment later. In this agreement, the owner will always stay in that same unit during the same time period every year, unless an exchange is made through a separate exchange company.

With this type of arrangement, timeshare owners know exactly when they will be going on their vacations every year. The benefit of this is that there is no stress about deciding when and where the vacation will be. The bad part of this is that it can be difficult for owners to change the time or place if they decide they want to.

Floating-Time Scheduling:

For “floating-time” arrangements, the period during the year when the timeshare owner can use a property is not fixed.  In order to use a timeshare, the purchaser has to make arrangements with the resort to make reservations for the exact time frame the owner wants to use a particular property. There are often extra rules and regulations with these some resorts concerning how early you can make reservations.  Some timeshares have an extra stipulation with them that you can only reserve time within a particular season. This is sometimes called “seasonal floating”.

So, knowing the bare essentials of these four variables, make sure you are aware of them in any situation where it might matter.

with the advent of the Federal No-Call Registry, there are times when you may be cold called by a timeshare telemarketer. There are several ways that this can happen, including friends signing you up when asked “do you know anyone who might be interested in this program?” or loopholes in warranty card registration or requested information about products through mail or the internet.

If these cold calls happen, watch out for these five things:

1. Cold-callers are attempting to be on the phone with the decision maker in the household. They will try to find out right away how many people are involved in decisions and which of you will make the eventual answer. Be aware that this is happening. After they understand who has this power, they can play off that relationship to work to get to their desired goal.
2. They will make the decision seem urgent. Because of the nature of timeshare marketing, the caller may make it seem like you lose something by not making a choice right away, whether that be a chance to have a meeting to get some sort of incentive or a too-good-to-be true deal that you won’t get if you don’t act now.
3. They may try to compare themselves with other timeshare opportunities, giving you reasons why theirs is more appropriate to your situation. Realize that during a one-on-one conversation, there is no way for a voice other than theirs to be in the conversation, and that they’ve had time to prepare for this by researching data about other competing businesses.
4. They will try to find your motivation for purchasing things. A common timeshare tactic is to make you feel guilty about not loving your family enough to take them on vacation more often. This tactic can range from very subliminal to very upfront, and it is preying on the psychology of your desire to show that you care about your family. They will tell you what you deserve and then key in on your motivation to get what you deserve by buying into their program.
5. They will search for the information of why you won’t buy. There are two reasons for this; one, they are looking through their arsenal to see if they can counter your reasons, and two, they are collecting this data so they can find ways of countering these reasons in other people they call later.

Just remember, you don’t owe cold-callers anything. If they are not welcome to call, always ask where they got your information, ask them for their names and who they work for, and remind them if you are on the No-Call Registry. Look out for yourself – they are not looking out for you!

Dealing with salespeople is often a part of making a major purchase. Usually when making these purchases, you have four resources to pull from to help you make your decision: your own personal experiences, the ability to ask other people what they think, competition among people who want to sell you that product, and time to think things over.

Your Friendly Timeshare Salesman

With timeshare meetings, however, the rules change. Because of the methods timeshare presentations use, those resources aren’t available. Suddenly:

• Unless you already own a timeshare, you aren’t going to have any personal experience with that ownership.
• Inside the meeting room, there isn’t anyone for you to talk with about the pros and cons of ownership other than the other people in the meeting with you.
• There are not multiple timeshare companies competing for your attention at the same time, so there is no way for you to compare one with another.
• And lastly, you’re expected to make your decision right away, or you will often lose out on the ‘perks’ that an immediate ‘yes’ will get you.

Timeshare Contract

You enter a timeshare meeting at a distinct disadvantage for these reasons, though timeshare representatives will make it seem as though you’re getting all of the information that you need. Imagine that they know you better than you know yourself, and you won’t be too far from the truth. As a consumer, you are looking to be satisfied; as salespeople, they are looking to satisfy you, but they are the ones with the aces up their sleeves.

Essentially, everything about a typical timeshare meeting is to get you to disregard your natural instincts when it comes to making a purchase. Even knowing that you are at a disadvantage will not take away the sales representative’s ability to make you feel at ease. Take away the advantages that the timeshare meeting presents, however, and you’ll determine the actual worth of what they are selling.

Think for a moment, if you will. If there were a timeshare store where you could go in and shop around, talk to people, compare companies, and come back later to make your decision, how well would that work out?

According to Reuters and recent filings with the SEC, “Marriott International, Inc.  recently announced the completion of a private placement of Timeshare Loan Backed Notes by Marriott Vacation Club Owner Trust 2009-2. The notes were sold without recourse to Marriott or its affiliates.

Marriot which has around $2.6 billion in debt and a negative net worth of more than $600 million is scrambling to shore up its cash flows and balance sheet!

On October 21, 2009, Marriott International, Inc. sold another pool of approximately $380 million in timeshare mortgage loans (the “Mortgage Loans”) to Marriott Vacation Club Owner Trust 2009-2 (the “2009-2 Trust”).

Simultaneous with the sale of the timeshare mortgage loans to the 2009-2 Trust, investors purchased $317 million in 4.809% Timeshare Loan Backed Notes from the 2009-2 Trust in a private placement. It does not disclose who bought the notes.

To the ordinary mathematician these juggling of the books at MAR appear not to add up properly and the SEC is asleep at the wheel.

There is increasing evidence of an economic financial collapse in the entire Travel and Timeshare Industry, while Congress and the United States Air Force continue to negotiate and debate with Boeing and Airbus (EADs which has partnered with Northrup) on the future of a $40 billion contract for 179 Super Fuel Tankers which would buy bankers time to restructure the ailing production schedules of these global manufactures and employers of hundreds of thousands if not indirectly millions of people.

According to SEC filings, “On October 23, 2009, Wyndham Worldwide Corporation renewed its 364-day securitized timeshare receivables conduit facility through October 2010. The facility bears interest based on variable commercial paper rates plus a spread and has a capacity of $600 million”, according to the company’s recent SEC filings.

The mortgage meltdown, many analysts say, was caused by Fraudulent Mortgages being packaged into Trust Securities and sold on the global markets.

Lately, the only institutions able to invest in these fraudulent securities has been those backed by the Federal Reserve Banks who in turn basically just write the losses off into thin air because that is where all money comes from anyway. It’s called currency because it circulates like electricity through a circuitous route, out of nothing into something and back again into nothingness.

The International Bank Activities Reform Commission (IBARC) announced yesterday it is looking into the securities issued and backed by Timeshare Receivables of several large publicly traded companies where evidence of fraud exists due to the high pressure sales tactics of the industry that sucked people into filling out phony applications for loans secured by their interests in Timeshare Properties!

“What these companies are doing is more of the same as the mortgage banking industry just on a different day using other peoples promises to pay (notes are money), very much the same way as Enron and the mortgage industry did. Off balance sheet off shore fundings!

“They securitize these cash flows of receivables but the investors buying the notes usually violate one of the first laws or basics of fiduciary responsibility and common prudence by not knowing their borrowers detailed character directly”, said a spokesperson for IBARC.

In one Off-Balance Sheet Arrangement on September 24, 2009, Wyndham Worldwide Corporation’s subsidiary Sierra Timeshare 2009-3 Receivables Funding LLC issued $175,000,000 aggregate principal amount of 7.62% Vacation Timeshare Loan Backed Notes, Series 2009-3, due 2026 under an Indenture and Servicing Agreement, dated as of September 24, 2009, by and among the 2009-3 Issuer, Wyndham Consumer Finance, Inc., as the 2009-3 Servicer, U.S. Bank National Association, as the 2009-3 Trustee and the 2009-3 Collateral Agent .

The notes are allegedly secured under the 2009-3 Indenture primarily by a pool of pledged loans, each relating to the financing of one or more vacation ownership interests by a consumer, and related pledged assets.

In other words, the loans are backed by the generally hoodwinked consumers who are thinking twice about continuing to pay into an inflated system that keeps them broke and makes the global bankers illusionarily rich.

“What the International Bankers have done in this industry is appalling,” said one analyst who requested anonymity due to his high profile amongst the global investment community. “What they have done and what they are continuing to do is fractionalize the ownership of time and air.”

Marriott International, Four Seasons, Hilton, Ritz Carlton, Starwood, and Walt Disney are among six of the top companies engaged in the Timeshare Industry that are currently being investigated by the investigative journalist group that is supported by foreign interests who are wondering when the frauds are going to end!

There seems to be lots of regulation on the horizon but very little law enforcement going on at the Federal and State levels.

Wyndham WorldWide

As vacationers start spending less during recessions, Wyndham Worldwide (NYSE: WYN) also began spending less money and energy towards improving and sustaining their timeshare business; resulting in a negative report for their third quarter profits.

It was announced earlier this year that Wyndham would begin cutting back their marketing efforts by closing sales offices and spending less money on advertising, which resulted in a 35 percent decline in timeshare sales.

In one year, Wyndham’s earnings fell 27 percent from $142 million to $104 million and 80 cents per share to 57 cents per share.  However, earnings were reported at 58 cents a share which topped analysts’ predictions by 2 percent.

Wyndham’s decision to cut spending towards their timeshare business has reflected in their revenue report as well. They announced that revenue had declined 17 percent from $1.23 billion down to $1.02 billion. Representatives of Wyndham stated that the weak lodging industry is to blame for the noticeable decrease in revenue.

Wyndham Exchange and Rentals, also known as Group RCI, reported that revenue decreased by 8 percent along with the Wyndham Hotel group which fell 14 percent.

It seems that Wyndham is not the only one showing a decrease in both earning, sales, and revenue, rather the entire lodging industry is struggling to find vacationers who want to spend money during these tough economic times.  Potential timeshare buyers are choosing to save their money and cut back on luxury vacations.

This is Vinnie T. and he has a really neat story he wants to share with us, and a he’s a former timeshare owner and he want to share a few things with you to possibly help a few New Yorkers who possibly have a timeshare and this is Vinnie but hes really a hero he was actually involved in 9-11 he’s actually disabled because of 9-11 so we’re all glad to help Vinnie T. Thanks Vinnie.

Vinnie: Hi how are you. I’d say about 10 years ago I had got involved in a timeshare in Florida. I had young kids at the time, I thought it would be something good to have. Used it and it eventually became a burden around my neck. I had later went on vacation to Mexico to the Mayan Palace, you know. They again tried to sell me a timeshare. I had told them I already had one to try and get rid of seeing that it… Seeing that it was Mexico I thought it would be more of a benefit, I was a little bit older my children were a little grown.

I told them that if I could get rid of one that I would gladly take over the one at Mayan Palace. Little did I know they deeded the property back to me they slipped piece of paper I signed unknowingly. You get caught up in these situation and sometimes you sign, your just signing at such a rate that you’re unaware of what your doing. Recently I received a piece a paper from Apex and thought what do I have to loose. I started getting threatening letters against me about what would happen if I didn’t pay my maintenance fees. I came sat down with the people from Apex and today I am timeshare free. I’d like to thanks Dan and Kristin and Ian for there help for getting this anchor off my neck, and also the people at Apex. Thank you.