Lobbyists from the time-share industry are pushing for legislation in Florida to allow timeshare resorts sell debt-cancellation policies as part of timeshare mortgages. The policies would allow owners to return their timeshares due to loss of income. The policies themselves would have a set cost to be added at the time of sale of a timeshare.
The bill comes at a time when timeshare sales have dipped considerably due to the economy. Well-known developers like Walt Disney World and Westgate are among those lobbying for the bill to provide prospective owners one less hurdle to purchase a timeshare.
From my perspective, the primary goal is to boost sales and increase the number of buyers. The debt-cancellation insurance policies are a win-win for the developers as they gain an extra form of revenue from people who are pre-screened for viability of being able to afford a timeshare. They’ll be able to price the policies accordingly and make profit from the policies as well. They’re not in business to lose money!
At the same time, they’ll get back a number of buyers that will finance their timeshare purchases. So, the revenue stream from finance charges will again improve, as will revenue from maintenance fees. The entire timeshare industry runs on these residual forms of revenue — all from the pocketbooks of the timeshare owners.
For more information, click here for the article from the Orlando Sentinel by