I attended the Westin Kaanapali timeshare auction on Tuesday, October 14, 2014. The owners of the timeshare inventory which was up for auction, due to non-payment of maintenance fees, had the ability to “redeem” their timeshare ownership any time prior to the deadline of October 14, 2014 by paying the past due amount.
As I reported earlier there were originally 57 weeks for auction in the Westin Kaanapali Ocean Resort. Five of those weeks were redeemed prior to the date of the auction which brought the actual total to 52 weeks to be auctioned.
Also as reported, there were originally 45 weeks up for auction in the Westin Kaanapali Ocean Resort Villas North. One of those had also been redeemed by the deadline for auction on Tuesday, October 14, 2014 leaving 44 weeks to be auctioned.
Combined, the inventory up for auction represented less than one third of 1 per cent of the total number of owners that were in default or were delinquent. This is an extremely low percentage by industry standards. I think it is a 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.
The information I noticed about the auction was that the balances at which the foreclosing’s would take place looked like most of the people had not paid their maintenance fees for one year or perhaps two years and it appeared Westin was very aggressive in the foreclosing of inventory.
There were three bidders present at the auction – a representative from Starwood representing the Developer and two individuals were present for bidding. The two individual bidders bid against Starwood and ultimately both of the individuals outbid Starwood and were able to acquire an interest for an amount significantly higher than the opening bid amounts.
All other inventory up for auction was picked up by the Developer.
It is important to note that the winning bids were very close to what the timeshare resale inventory can be bought on the resale market – there were in fact no “smoking hot deals”!
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Syed Sarmad, Principal Broker for Advantage Vacation