Aloha, my name is Syed Sarmad and I’m the Principal Broker for Advantage Vacation. Advantage Vacation is a licensed real estate company in located in Maui and we specialize in timeshare resales. Our offices are located in the Lahaina Cannery Mall in Lahaina, Maui.
Today I’d like to talk about auctions of foreclosed inventory of timeshares here in Maui and in particular discuss the Westin Kaanapali Ocean Resort Villas and Westin Kaanapali Ocean Resort Villas North.
There will be an auction held on Tuesday, October 14 in Maui of the foreclosed inventory of past due maintenance fees. I have access to that information and have noticed that the balances at which the foreclosings will take place, looks like most of the people have not paid their maintenance fees for one year or perhaps two years. It appears Westin is very aggressive in the foreclosing of inventory.
The numbers I’m seeing is there are 57 units in weeks in the South Villas and 45 units in the North Villas – combined this represents less than one third of 1 per cent of the total number of owners that are in default or are delinquent. This is an extremely low percentage by industry standards. I think is partly testimony to the reason why the maintenance fees are so stable at the North and South Villas resorts because there are very few delinquent accounts.
Anyway, I’ve attended these foreclosure auctions in the past, for the past several years, and there is always a representative from the Developer there out-bidding in many cases people who are attempting to purchase inventory on the auction market. I’ve represented quite a few clients and in some cases my clients have been successful in winning their bids. Of course, once again, Starwood is out there bidding on these properties, too.
What takes place is when there is a winning bidder, there is a 10% deposit that they pay, which is paid to the title company and then the licensed title company will complete the transaction. The whole closing process takes about 45 to 60 days. You will get title insurance on the property and closing costs runs about $800 – $900 in addition to the winning bid amount.
The winning bid amount includes the 2014 maintenance fees of the year of that usage so in this case it will include 2014 fees. The winning bidder will have access to that unit for this year which they can either use or with the limited inventory available they will probably end up having to bank it with Interval International.
Another factor to keep in mind with these auctions is that they don’t have to go through a right of first refusal option because it is not being purchased through a private party.
I hope to get you more information after the auction and hope this information has been helpful to you.
You may view the video below:
Blog articles:
Why you should use a real estate broker in Hawaii when buying or selling a timeshare in Hawaii
To view our current listings of Westin Kaanapali timeshare resales, please click on: Westin timeshare resale
Syed Sarmad, Principal Broker for Advantage Vacation
