Newport (RI) Time-Shares.

[DonziJon]

Here's some more stuff to think about. Newport, RI is a nice little tourist town. Lots of BIG Yachts, Money, Cruise Ships, etc come in season.

Things are a changing in the Time-Share market here. Twenty Five years ago Time-Shares in downtown Newport on the waterfront were going for $10,000 to $20,000 for a week. They are quite nice, ...some in more recent buildings and some in restored Antique Granite buildings that used to be factorys 100 years ago. The "Newport Bay Club", situated in one of the old granite buildings will hold a foreclosure sale of 88 Time-Share units soon.

"The Inn On The Harbor", another Time Share right on the harbor held a foreclosure sale this week for 213 time share units. Nobody from the outside showed up. The Owners Assosiation bought all 213 units for $100 each. That's One Hundred Dollars each.

If a time-share owner has not paid the maintence fees, and is hit with a "special assesment" on top of that....some of these places now need major upgrades, the bill could add up to $2,000 or more. If the unit can be rented, that could pay the bill, however rentals are real slow if you have an Off Season slot. If the owner dosn't continue to pay the bills, the Assosiation forecloses.

The original buyers recieved financing from the developers. If you want to sell, Banks WILL NOT finance Time-Shares. Most of the units that were sold this week were off season units. John

PS: I'll bet Obama will have some ideas what to do with empty Time-Shares. :yes:

[DONZI]

Any info on this auction available??
The "Newport Bay Club", situated in one of the old granite buildings will hold a foreclosure sale of 88 Time-Share units soon.

[txtaz]

Yeah any info would be great.

Here in Texas we have to pay 70% of tax roll value on any foreclosures or tax liens.

Da Taz<---I'll take another house in the North East for $100. Maybe 20 or more.

[DonziJon]

I just typed a lengthy disertation on this in response and was disconnected before I could post. Google "Newport Bay Club". It was First Class 20-25 years ago. I have no doubt it still is. NO KITCHENS. Zoning Thingy. John

EDITED: I Googled "Newport Bay Club" this morning (Sunday)and couldn't find anything about the Auction.

[DonziJon]

I found this article this morning: (Sunday)
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Newport time-share units sell for $100 apiece


By Sean Flynn
Daily News staff

NEWPORT — Seventy-six time-share units at the Newport Bay Club & Hotel were auctioned Friday during a public foreclosure sale, but only one person showed up and he left before the bidding began.

The Newport Bay Club Owners Association purchased each of the one-week time shares for $100 apiece. A man from West Cork, Ireland, inquired about bidding for a unit before the auction began. He was willing to pay $100 for a unit.

Local attorney Richard M. Fisher, representing the club owners, told him the association would bid up to $250 apiece for units that fell within weeks 1 through 22 (January through early-June, approximately) and weeks 40 through 52 (October through December). For weeks in the summer season, the association planned to bid up to whatever the back annual maintenance fees and special assessment on the time-share weeks amounted to. Fisher said that total averaged about $2,500 per unit.

Units in the summer season could be rented for up to $600 a night, so any maintenance fees and special assessments can be recovered through rentals, he said. Last year, the club levied a $1,000 special assessment against each owner to cover the costs of extensive renovations.

The Irish man, who asked not to be identified, declined to bid against the association.

Fisher was asked why he thought no one else from the public showed up to buy a unit.

“Because they have no value,” he said. “As soon as you buy one, you have to pay the annual maintenance fee.”

The annual fees for 2009 are: $540 for a one-bedroom unit; $630 for a two-bedroom unit or a one-bedroom townhouse unit that extends over two levels; or $740 for a two-bedroom townhouse unit.

“For the fee, you get to stay here for a week,” Fisher said. “That may sound like a bargain, but it’s not if you don’t show up.”

Tim Roache, general manager of the Newport Bay Club & Hotel at 337 Thames St., said the club’s time-share owners may exchange their weeks through Interval International or RCI for ones at thousands of resorts around the world. However, some longtime unit owners no longer are traveling for one reason or another.

The owners are abandoning units as the demographics change, Roache said. Most of the owners bought the units in 1982 or 1983, and they are 25 years older now. Some came with their kids, but the kids have grown up. Others have health problems and some have retired to Florida.

Earlier this month the club advertised 88 units to be auctioned but 12 of the owners paid what they owed before the auction took place.

Fisher said the association sent out foreclosure notices to everyone on the initial list. About 40 came back because there was no forwarding address, he said.

Earlier this month the Inn on the Harbor Owners Association bought 218 time-share units at the inn for $100 each at a foreclosure sale. The association then transferred ownership to the Wyndham Worldwide Corp. that manages six time-share properties in Newport and Jamestown.

Send reporter Sean Flynn e-mail at Flynn@NewportRI.com.