Is there any hope for the timeshare industry?
With 125 resort and over 28,000 units, Orlando is considered the unoffical timeshare capital of the world. Many suggest using old practices of reviving the use of insurance to guarantee morgages to thaw out a part of the market that is frozen right now.
With the current economic slowdow, sales of time-share units in Florida have been dropping.
The American Resort Development agency is asking the government to guarantee time-share in exchange of insurance fees. Time-share is literally selling itself out of business.
Changing investment-grade paper into cash is not easy task during the current economic crisis in America. Funding development of time-share requires selling morgage notes in the securities market or borrowing against them.
Due to the credit market being stymied, business is at a all time low. Likewise a letter was written to the White House Counsel of Economic advisors indicating that time-share is facing a liquidity catastrophe. Investors can no longer afford to buy insurance to guarantee a customers mortgage.
With the current economic slowdow, sales of time-share units in Florida have been dropping.
The American Resort Development agency is asking the government to guarantee time-share in exchange of insurance fees. Time-share is literally selling itself out of business.
Changing investment-grade paper into cash is not easy task during the current economic crisis in America. Funding development of time-share requires selling morgage notes in the securities market or borrowing against them.
Due to the credit market being stymied, business is at a all time low. Likewise a letter was written to the White House Counsel of Economic advisors indicating that time-share is facing a liquidity catastrophe. Investors can no longer afford to buy insurance to guarantee a customers mortgage.
posted by michael at
1:47 PM
