My question involves real estate located in the State of: Colorado
Quick history. Mom went into ch7 bankruptcy 3 years ago (another state). The outstanding dues for the timeshare were discharged, and the petition showed that she planned to surrender the timeshare. Trustee did nothing with the timeshare. Then a year later they tried to claim they never got the discharge and were asking for more dues. Her bankruptcy lawyer sent a letter to them stating the facts. She also sent a quit claim deed to the county where the timeshare is in - but there was no response after mailing.
Then today she received a letter stating that there are offering a deed in lieu of foreclosure. They're giving her 3 business days to turn around the letter and get it back to them. The cover letter seems to state that they just want the signed documents (agreement and quit claim). See extract from cover letter:
However, the Agreement letter has a few points that seem to imply that they want these documents -and- money. And other points that seem to imply -those- points are settled by this agreement.You are delinquent in the payment of your dues and assessments for the above timeshare interest... In order the cure this delinquency [we] are willing to accept a deed for your timeshare in full satisfaction of this debt. In order to complete this process, please find enclosed a Deed in Lieu of Foreclosure Agreement and a Quit Claim Deed for your review and signature.
Please sign both documents in from top a notary public.... After the documents are signed and notarized, please send the originals bak to me in the enclosed [envelope]....:
Now, therefore, the parties agree as follows:
1. Grantor has execute a Quit Claim Deed conveying the property to Grantee, [a copy enclosed]. Upon execution of this Agreement by Grantor and Grantee, and the payment of the 2016 regular assessment and special assessment by Grantor, the Deed shall be delivered to the Grantee.
2. Grantor warrants and represents the Grantor owns the Property free and clear of all liens and encumbrances, except real property taxes, if any and the assessments. IN the even of a breach of this representation, Grantee shall have the right to rescind this Agreement and conduct a foreclosure of its assessment lien.
[skipping]
4. Grantor hereby acknowledges to Grantee that the release of Grantor from all claims and demands in connection with the aforesaid assessments for common expenses constitutes good, valid and adequate consideration for the conveyance of the property to the Grantee.
[skipping]
7. Grantee agrees to irrevocably forebear against collection from the Grantor those certain assessments referred to herein, as well as any unpaid accused interests, late charges, any costs or expenses, and/or any attorney's fees (except as set forth in Section 1 above) incurred in this matter, expect as provided in Section 2 above. Grantee agrees to look only to the property for satisfaction of said obligation.
I should add that the yearly fees are probably around $700. Which is outside my mother's financial means (obviously, as it was surrender along with everything else during the bankruptcy).

