Timeshare Developers Ask For Bailout

By M. Beddingfield

I find this so ironic. Timeshare resorts will put individuals through a ringer if you don't pay your fees on time and show no mercy at all, but then the go to Washington with hands extended asking for free money. The nerve...

Basically, this is what happened:

The American Resort Development Association (ARDA) approached Washington in October looking for a helping hand. Timeshare developers, who borrow against the mortgages they issue to buyers, are frozen like the cold credit markets. Their multi-million dollar transactions are falling through.

The ARDA says that timeshare sales continue to be made but they have a serious liquidity crisis that threatens the industry’s continued ability to survive. The ARDA is asking the Treasury Department to support developer’s short-term company loans in exchange for insurance backed by an industry fee.

Thus far, the ARDA is getting little support from the Treasury Department, though they have been asked for documentation to back up the statements being made.

Maybe they should spend some of the money they set aside for lobbying on Capitol Hill. Just this year, the ARDA spent $540,000 opposing mortgage reform and truth-in-lending requirements to timeshare buyers. They also paid Tallahassee lobbyists $270,000 and made campaign contributions, to both parties, of over $814,000.

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