Are You a California Owner of A Timeshare Property? Beware of Fraud

Timeshares . . . can be a flexible vacation option for many people.  It's a form of property ownership shared with other owners, usually for resort condominiums and vacation home purposes, and can often be utilized in various states and even countries, and offer cheaper accommodations than staying in a hotel or B&B for a week.  The downside is, timeshare ownership may be tough to sell in a down market; there just isn't a huge demand for it when money is tight and/or the market values have declined.

The California Department of Real Estate has just issued a warning and consumer alert concerning the latest wire transfer fraud schemes being perpetrated on timeshare owners. 

Beware of websites, or any other marketers, promising and to buy or help you sell or rent a timeshare, after an upfront fee is paid.  Scammers are requesting payment by money order, wire transfer, bank cashier's check, or upfront cash by the victim, after which they disappear and no further sale or rental of the timeshare takes place.  Vacation timeshares are popular in California, Hawaii and Florida, but properties owned in Mexico are popular targets right now, so avoid dealing with telephone calls or e-mails.

Do not fall for something that sounds "too good to be true", and the DRE advises the owner to contact the timeshare resort developer concerning the communications he/she may be receiving.  The DRE states that amounts wired by gullible owners range from $3250 to $85,000.

Beware of any requests for upfront money to be wired to anyone's account for work not yet done!

Here is more information about who to contact and what you can do if you have been scammed (i.e., the California Attorney General; local district attorney and law enforcement; FTC; FBI, and others.

And, please be aware that in California, proper licensure for upfront fee payment must be obtained.

Please don't let yourself be taken in by fraudulent schemes.

Advance Fees in California

Even though a law was passed in 2009 in California, there still seem to be advance fees being requested and sometimes paid for in exchange for certain services. Here is important language to read and understand, because there are people who are still trying to take advantage of homeowners who want a loan modification, loan modifications or attempts to avoid foreclosure that just don't work out. And the homeowner loses money.

It is illegal in California, as of October 11, 2009, for a lawyer, real estate broker, real estate salesperson, including corporations and companies, to demand or collect an upfront fee, retainer fee or other advance fee for loan modifications.  There have been, and continues to be, many people who have lost thousands of dollars through misplaced trust. And, if you have experienced this, please click on the link below to find out more about reporting to the Attorney General.

Remember, calling up your own bank is the first step to finding out about loan modifications. A property owner is able to do this on their own, although you may want the assistance of a consultant, because it can be an involved and lengthy process, depending on your bank. But there is no advance fee that can be charged, not until the close of escrow.

See the Dept of Real Estate story.