Another Hotel Closure Yet Timeshare At Same Location Remains

With the foreclosures of some major hotels like the Watergate, which did not have a single bid at auction, or the St. Regis Hotel in Laguna Niguel that benefited from the last big-spending hurrah from AIG, it’s not surprising to hear about other hotels suffering the same fate.

We reported a while back about the Xanadu Hotel closing, yet the timeshare portion of the property remained open.  Well, this occurrence has repeated itself, this time at the Ilikai Hotel in Waikiki, Honolulu, Hawaii.  The operational losses of the hotel just became too great to overcome.  All the staff was let go from the shutdown with a scant possibility that new management would rehire them.

Yet, the condo and timeshare areas of the property remained.  Could it be that timeshares are self sufficient with maintenance fees on a multitude of timeshare owners actually earns a profit?  Or that mandated special assessments require that timeshare owners to pony up lest they receive liens on real property or default judgments?  Does this prove the profitability of timeshares?

Get Rid of Your Timeshare, Save Your Home

Get Rid of Your Timeshare Before Foreclosure

Times are tough at the moment, with a lot of us having a hard time juggling our mortgage, paying the bills and keeping the gas tank full. At the same time, people are being laid off by the thousands and wave after wave of home foreclosures are sweeping across the country. If you happen to own a timeshare, then things are even worse. The maintenance fees keep going up every year and owners are frequently invoiced hundreds or even thousands in special assessment fees. Now is the time to get rid of your timeshare before the added expense causes even more economic stress on your household.

If your timeshare is financed, then you’ll want to pay everything off as soon as you can. This will get rid of those interest payments which can be very high on their own (and unlike the interest payments for your primary residence, these payments are not tax deductible). Additionally, you’ll find it difficult, if not impossible to sell your timeshare if there is still a mortgage on the property. With so many other timeshares on the market that no longer have mortgages, it is extremely unlikely that you’ll find a willing buyer.