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  1. #1
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    Jun 2014
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    Default Timeshare Offering Deed in Lieu of Foreclosure, but They Seem to Want 2016 Fees

    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:
    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]....
    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. :
    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).

  2. #2
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    Default Re: Timeshare Offering Deed in Lieu of Foreclosure, but They Seem to Want 2016 Fees

    Randomly sending a quit claim deed "to the county where the timeshare is in" will accomplish all of nothing. A deed must be tendered upon the transferee, and must be accepted in order to be a valid transfer.

    Even if I were a Colorado real estate lawyer, I certainly would not suggest that she sign an agreement that I haven't had the opportunity to review in full. However, the language you quote indicates that mom is agreeing to pay the "2016 regular assessment and special assessment" in addition to providing the deed.

    Normally, maintenance fees accrued after the filing of the bankruptcy petition but before foreclosure are collectable against the bankrupt person, so mom will want to make sure that those fees are included in her agreement. I am skeptical that the timeshare company is going prefer to hire a law firm to proceed with the foreclosure when it could resolve the entire matter by waiving a @$700 fee -- but mom won't know until she asks.

  3. #3
    Join Date
    Oct 2006
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    Default Re: Timeshare Offering Deed in Lieu of Foreclosure, but They Seem to Want 2016 Fees

    Mom could sign the agreement but cross off the part where it says " and the payment of the 2016 regular assessment and special assessment by Grantor" and initial where she crossed it off. One of two things would happen at that point, either the timeshare company will accept the agreement with the correction, or they will not and further action will happen.

  4. #4
    Join Date
    Mar 2013
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    18,340

    Default Re: Timeshare Offering Deed in Lieu of Foreclosure, but They Seem to Want 2016 Fees

    I suggest that Mom ignore that BS. The time share people are trying to scam her into committing to something.

    If the previous quitclaim deed that she sent to the county was actually recorded I suggest she just get a certified copy and send it without letter or comment to the person who sent her the BS documents.

    She should, of course, run this by her bankruptcy attorney because it sure looks like the time share people are in violation of the bankruptcy laws by attempting to collect money on a discharged debt.

    This may even be something for which her attorney can seek sanctions.

  5. #5
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    Oct 2006
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    Default Re: Timeshare Offering Deed in Lieu of Foreclosure, but They Seem to Want 2016 Fees

    Quote Quoting adjusterjack
    View Post
    I suggest that Mom ignore that BS. The time share people are trying to scam her into committing to something.

    If the previous quitclaim deed that she sent to the county was actually recorded I suggest she just get a certified copy and send it without letter or comment to the person who sent her the BS documents.

    She should, of course, run this by her bankruptcy attorney because it sure looks like the time share people are in violation of the bankruptcy laws by attempting to collect money on a discharged debt.

    This may even be something for which her attorney can seek sanctions.
    The timeshare people are actually being clever. They are not trying to collect debt that was included in the bankruptcy, they have assessed additional yearly fees after the bankruptcy (because they did not foreclose on the timeshare after the bankruptcy therefore it stayed in the OP's name). In my opinion they should not be able to get away with that, but it seems to be a bit of a pattern.

    HOA's are able to assess fees against a homeowner after a bankruptcy that includes the house, even though the bank was supposed to take over the house, but either never did or seriously delayed doing so. Taxes still got assessed to the same home owner for the same reason...etc.

    Heck, timeshare companies have even included in contracts that potential heirs of someone are responsible for yearly assessments even if those parties walk away from the estate of the deceased...and have apparently gotten away with it. I worked for RCI back in the day when timeshares were the up and coming, booming business and I KNOW the are evil.

    For what someone pays for a one week timeshare, plus the annual assessment, someone could pay for a really nice hotel for the same one week. There is absolutely no resale market at all for a timeshare, and just like this timeshare company, they usually want you to pay THEM something to take it back.

    Off my soapbox now...

  6. #6
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    Default Re: Timeshare Offering Deed in Lieu of Foreclosure, but They Seem to Want 2016 Fees

    Quote Quoting adjusterjack
    View Post
    If the previous quitclaim deed that she sent to the county was actually recorded I suggest she just get a certified copy and send it without letter or comment to the person who sent her the BS documents.
    Beyond what llworking said, simply filing a deed with the county does not constitute an effective transfer of real property. "[A] conveyance is the transfer of title to land from one person to another by delivery and acceptance of a deed." Premier Bank v. Bd. of County Comm'rs, 214 P.3d 574, 579 (Colo.App.2009).

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