Orlando Sentinel, January 17, 2011Question:
We paid cash for an Orlando timeshare 15 years ago, but we can no longer afford its annual maintenance fees. We’re thinking about refusing to pay any more maintenance fees. We’ve been told the timeshare would revert to the parent company, and we could walk away with just a minor blemish on our credit.
Is this our best option?
I.D., Eagleville, PA
We paid cash for an Orlando timeshare 15 years ago, but we can no longer afford its annual maintenance fees. We’re thinking about refusing to pay any more maintenance fees. We’ve been told the timeshare would revert to the parent company, and we could walk away with just a minor blemish on our credit.
Is this our best option?
I.D., Eagleville, PA
Answer:
A Florida timeshare interest owner is personally liable for all assessments during the course of ownership. The timeshare managing entity, or TME, holds a lien over the timeshare that it can foreclose to secure payment of assessments.
The TME has two forecloser options. The first is a traditional foreclosure lawsuit in which a personal claim against you – for assessments as well as for attorney’s fees and costs – could be made. The second is a non-judicial foreclosure in which the TME’s recovery is limited to only the proceeds of any sale.
The TME should prefer the efficiency of the second option, but both are possibilities. Because personal liability exists, your credit could be seriously affected by non-payment. You should contact the TME to discuss voluntarily selling or exchanging your interest in return for a release of personal liability, or seek help from a Florida attorney.
Visit our website for more information on this subject.
Frank Pohl founded Pohl & Short, P.A. based upon the belief that a high quality small commercial law firm was needed in the Orlando, Florida area as an alternative to the large commercial law firms. He still believes that client responsiveness and satisfaction has a place in a fast changing legal profession. Frank has been involved in the Central Florida community for more than twenty-five years. He has been a dedicated past board member of many local organizations over the years. Frank graduated magna cum laude with a B.G.S. Degree from the University of Miami in Coral Gables, Florida; attended the University College at the University of London as an undergraduate studying British literature and British history; obtained his Juris Doctorate Degree in 1979; and obtained a Masters of Law and Letters Degree (LL.M.) from New York University School of Law in 1980. Frank is a member of The Florida Bar, the California Bar, and the District of Columbia Court of Appeals. He is also admitted to the U.S. Supreme Court. He has served on the Orange County Bar Association Real Estate Committee and is a member of the The Florida Bar’s Real Property and Corporation and Business Law Section. He has also served on the Florida Bar Grievance Committee.
A Florida timeshare interest owner is personally liable for all assessments during the course of ownership. The timeshare managing entity, or TME, holds a lien over the timeshare that it can foreclose to secure payment of assessments.
The TME has two forecloser options. The first is a traditional foreclosure lawsuit in which a personal claim against you – for assessments as well as for attorney’s fees and costs – could be made. The second is a non-judicial foreclosure in which the TME’s recovery is limited to only the proceeds of any sale.
The TME should prefer the efficiency of the second option, but both are possibilities. Because personal liability exists, your credit could be seriously affected by non-payment. You should contact the TME to discuss voluntarily selling or exchanging your interest in return for a release of personal liability, or seek help from a Florida attorney.
Visit our website for more information on this subject.
Frank Pohl founded Pohl & Short, P.A. based upon the belief that a high quality small commercial law firm was needed in the Orlando, Florida area as an alternative to the large commercial law firms. He still believes that client responsiveness and satisfaction has a place in a fast changing legal profession. Frank has been involved in the Central Florida community for more than twenty-five years. He has been a dedicated past board member of many local organizations over the years. Frank graduated magna cum laude with a B.G.S. Degree from the University of Miami in Coral Gables, Florida; attended the University College at the University of London as an undergraduate studying British literature and British history; obtained his Juris Doctorate Degree in 1979; and obtained a Masters of Law and Letters Degree (LL.M.) from New York University School of Law in 1980. Frank is a member of The Florida Bar, the California Bar, and the District of Columbia Court of Appeals. He is also admitted to the U.S. Supreme Court. He has served on the Orange County Bar Association Real Estate Committee and is a member of the The Florida Bar’s Real Property and Corporation and Business Law Section. He has also served on the Florida Bar Grievance Committee.
