Often, people confuse the Unburdening Companies with the Asset-Less Entitles or individuals to which they transfer timeshare intervals. TTR has a very robust categorization system to help our Subscribers differentiate them.
Asset Less Entities. Commonly referred in the industry as LLC’s or Viking Ships, TTR refers to these companies and individuasl as Asset-Less Entities. The primary purpose of TTR is to research and categorize the Asset-Less Entities or individuals, to which the Unburdening Companies have transferred timeshare interests with the intent to default on the assessments due the Associations. By providing a dynamic (constantly being updated) and contemporaneous (real time live) database, our Subscribers can quickly search new prospective transferees ,and either immediately receive a screen report or order affordable custom research to assist them in identifying possible suspect transactions.
Here are the classifications TTR uses for potential transferees:
Searched-by-Subscriber – Whenever a Subscriber to TTR does a search of a new transferee, a record is created with the information entered. Typically, these records start off as not verified. This information is meant to serve as an early warning of possible new Asset-Less Entity activity. If estoppel requests are being made for the same person or company to multiple Subscribers, you have good reason to more closely examine the request and employ best estoppel practices. TTR will review these entries and if public records show suspicious transfer activity, TTR will update the status classification.
Undetermined – Some of the entities and individuals within the TTR database that, based on public records, have been transferred multiple interests may have an acceptable explanation. Such a company or individual will remain classified as Undetermined until we have confirmation from our Subscribers that the company is on their roster and is delinquent or we have determined the classification should be changed.
Asset-Less Entity – Transferees have been identified as Asset-Less Entity if they hold an unusually high number of intervals, or are known to make or receive transfers from known Asset-Less Entities (LLC’s that have been dissolved, have multiple delinquencies at multiple resorts, have foreclosures, are managed by the same individual as other such companies, etc.). This classification does not mean an Association should refuse to accept estoppel requests to transfer to these individuals or companies. It does mean that the Association should employ best estoppel practices and procedures to fully vet the estoppel request. As part of the Association’s due diligence, it is reasonable to request an explanation from a transferee as to the number of intervals it owns, the reasons for the reported delinquencies, the reasons for foreclosures, and to require the submission of a membership application and company resolution. TTR does a deep background check on every company or individual who has been identified with this classification. After the background check, these companies will show as Verified.
Suspect or Suspected Asset-Less Entity/Individual – This classification is given to individuals or companies that show a number of interval transfers but, as of yet, have not been reported as being delinquent, foreclosed, not associated with, or had transactions with known Asset-Less Entities. Some of the most notorious companies share the same address and use of any of these is reason to suspect the transferee.
Multiple Transfers to Asset-Less Entities – Although not believed to be in the relief company or trade-in company business, these are companies identified within the database that have made multiple transfers to Asset-Less Entities.
Multiple Week Delinquencies or Never Paid Dues after Transfer – This is an entity or person on your roster, who owns several weeks that you suspect may be an Asset-Less Entity or who has never paid assessments after taking title to an interval.
All Communication Returned – Bad Info – Any new owner whose correspondence is returned or all of the contact information is bad is entered into the database under this classification.
In this case, TTR provides custom research services.
Other – Usually entered as “Suspect.” If there is another reason that you believe a transferee should be entered, please enter that reason in this entry box.
Unburdening Companies. There are many business models currently operating that, for a fee, represent to timeshare owners that they can legally transfer their timeshare in order to be relieved of their Assessment obligations. These operations are commonly referred to as Relief Companies, Postcard Companies, Rescue Companies, Transfer Companies and similar names. Collectively, TTR refers to these companies as Unburdening Companies.
Think of these companies as the ones making the money from the unburdening activity. The records in TTR can be used to research the company in order to answer your owners’ inquiries about them. If a resort wants to take legal action against these companies, the principal or resident agent information should be of some assistance. Where possible, TTR has cross referenced alter-ego companies of the principals and the Asset-Less entities used by them.
Here is how these companies are classified within the TTR database.
Unburdening Program/Postcard Company – Also referred to as relief or rescue companies. TTR has identified companies who may be contacting your owners.
Attorney Assisted Cancellation – This is another type of operation that attempts to cancel or rescind an owner’s obligation on some allegation of misrepresentation or breach of contract. If confronted with this approach, the Association should consult its attorney.
Trade-In Company – Some timeshare operators offer a trade-in program but then facilitate the transfer of the intervals, directly or indirectly, to an Asset-Less Entity.
Travel Club/Agency Trade-In – Some travel agency or vacation club operators offer a trade-in program but then facilitate the transfer of the intervals, directly or indirectly, to an Asset-Less Entity.
Charitable Donation Program – Some unburdening operators offer a donation program but then facilitate the transfer of the intervals, directly or indirectly, to an Asset-Less Entity.