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Vacation Ownership World: Are Timeshare HOAs in Trouble?

Orlando attorney Robert J. Webb, the senior partner of Baker Hostetler's Hospitality Industry Team, was a major contributor to a featured article in the July 2010 issue of Vacation Ownership World. “Are Timeshare HOAs in Trouble?” included the perspectives of four well-known industry professionals as they discussed the challenges faced by timeshare homeowners associations in this economy.

When asked about the current situation of timeshare HOAs and their economic health, Webb commented, “‘I don’t think that there are many timeshare associations on the brink of closing down, but I think it’s fair to say that many timeshare associations are running as yet unseen levels of delinquency and bad debt and they are dealing with that reality in a whole spectrum of different ways.’”

And as for the most significant concern for timeshare HOAs today, Webb said, “ ‘The resale problem cannot be overstated. If owners and HOAs could (re)sell inventory with relative ease, HOAs probably wouldn’t be confronting near the problems they are currently facing.’”