Court Ordered Sale Townhomes Sell Out in 2 Weeks!

Shawnee on Delaware – Thomas R. Wilkins, CEO of the Wilkins organization announced the court ordered sale of 49 timeshare townhomes at Northslope II sold out in two weeks, one week ahead of the projected time schedule.  The sale was deemed a huge success by all involved.   Wilkins & Associates Commercial Brokers, the company who handled the sale, announced earlier this week that all the units sold at the asking price or above.

Said Thomas R. Wilkins, Broker who handled the auction-style sale, “We, as well as our clients (referring to the 196 interval owners) are very pleased with the proceeds that were collected.”

Wilkins, with Attorney Joseph S. Wiesmeth and Craig Roberts led the consolidation team in conjunction with Attorney Michael V. Gazza who represented the Association.  Said Wiesmeth, “We began this project in mid-2011 by giving a presentation to select members of the Board of Directors.  We then, through a detailed procedure, filed suit in the Monroe County Court of Common Pleas; after which, with a final decision by the Honorable Judge Arthur Zulick, got us to where we are today.  This is one of those win-win-win cases.”

The Shawnee interval owners can expect a check in the amount of $13,000 – $18,000 in mid-April.  Roberts, who developed the distribution plan stated, “The distribution of net funds to the interval owners will be overseen by the Association’s attorney, Michael V. Gazza, as well as Scott A. Miller, CPA from the firm Riley and Company, Inc.”

Northslope II was a timeshare project developed by Shawnee Development, Inc. (SDI) in the mid-80s.  Over time, and through attrition (most of the interval owners had owned since the beginning of the Association), delinquencies, collections and non-paying members, as well as other mitigating forces earmarked the development as not being able to continue as a timeshare.  The possibilities were filing for bankruptcy—the Association owed $790,000 in delinquent real estate taxes–and liquidating the units as timeshare (which each interval had a market value of between $100 – $300) or successfully selling the townhomes as fee simple ownership and delivering to each of the owners proceeds that were well above their estimated market value if sold as timeshare.

The concept of a consolidation team was one that was developed by Wiesmeth, Wilkins and Roberts.  Said Wilkins, “The model that we used for the conversion of NSII is one that can be used anywhere in the continental United States.  This is the third project that I’ve been involved with by selling units in bulk and the second project whereby we converted timeshare into whole ownership.”  The net amount estimated to be shared by the interval owners is close to $1 million.

When asked, the consolidation team is excitedly exploring new projects in and around the Pocono region, as well as timeshare properties in Ocean City, Maryland; Florida and Upstate New York.

For timeshare associations having questions or wanting to learn more about the process, they can contact the law offices of Joseph S. Wiesmeth, Esquire, Stroudsburg or Thomas R. Wilkins, Broker of Wilkins & Associates Commercial Brokers, also located in Stroudsburg, Pennsylvania.

SOLD OUT! 49 Poconos Northslope II Townhome Units SOLD OUT in ONLY 2 Weekends!

SOLD OUT! 
COURT ORDERED SALE 
Poconos Northslope II 49 Townhome Units SOLD OUT in ONLY 2 Weekends! 


Brought to you by Wilkins & Associates Commercial Brokers

Shawnee OK’d to Sell 49 Timeshares

By David Pierce
Pocono Record Writer
January 23, 2014

A plan to convert and sell 49 failed Shawnee timeshare units as wholly owned townhomes won final approval Tuesday from Monroe County Judge Arthur Zulick.

The unusual conversion of the Middle Smithfield Township quarter-shares is the result of a two-year legal process launched by three timeshare holders. The Shawneequarters Association agreed to represent all quarter-share holders in the class-action suit that will result in the association eventually dissolving itself.

The converted townhomes — about a two-minute drive from Shawnee Mountain Ski Area — will become part of the Northslope II development and be subject to its covenants and declarations. Some 76 other units at Northslope II were built as and operate as townhomes.

Of the 196 quarter-shares, 110 went into default over the years, with the deeds going back to Shawneequarters Association. Some 44 of the 49 units had been shut down and disconnected from utilities.

Shawneequarters Association owes more than $600,000 in delinquent property taxes it was unable to collect. Total delinquencies, including unpaid dues, exceed $1 million.

Zulick gave quarter-share owners until Jan. 3 to file objections to the proposed settlement, but none was received. A few timeshare owners called to inquire about the process.

“The people calling were asking when are they going to get their checks,” attorney Joe Wiesmeth, representing three quarter-shares holders, told the judge.

The furnished 1,200-square-foot townhome units will be sold by Wilkins & Associates in an auction-style cash sale. All sales must be closed within 30 days after the sales agreement is executed. Though the homes are subject to bid, they are listed at $49,900 for interior units and $52,900 for end units.

Buyer offers for less than the list price are subject to board approval.

Total sales are expected to fetch about $2.5 million. About $1.5 million of that will pay back taxes, back association fees and attorney, Realtor and title bills.

About $1 million will be distributed to the former timeshare holders. Someone owing $15,000 in back taxes and fees will receive $6,000 to be applied to retiring those debts. No one owing more than $15,000 will receive a distribution, said Realtor Tom Wilkins.

Quarter-share holders who are current with all fees and taxes will receive an extra payment.

Taxes on each quarter-share unit amounted to about $8,000. The Monroe County Assessment Office agreed to new assessments for the townhomes that will lower county, municipal and school taxes to about $3,600 per year.

Wilkins noted the lower tax bills will be offset by the payment of uncollected back taxes.

Northslope II association dues are estimated to be $225 to $265 per month. Northslope II will retain title to and perform maintenance on the exterior.

Area real estate agents are invited to a Feb. 2 open house to learn more about the sales process. Showings by appointment only will be conducted by Wilkins & Associates during the following three weekends. Closings will take place in March.

“By April 30, this will be a done deal,” Wilkins said.

For the original article from the Pocono Record click here.

Pocono Timeshares To Be Sold at “Auction Style” Sale

Shawnee – Thomas R. Wilkins, CEO of Wilkins & Associates Commercial Brokers, Inc., announced that his office has been contracted to sell 49 townhome units at Northslope II, a timeshare development located in Shawnee-on-Delaware in the Pocono Mountains.  Wilkins along with Joseph S. Wiesmeth, Esq. and Craig Roberts from Pennsylvania First Settlement Services teamed up in 2012 and developed a proposal for selling the timeshare units as fee simple ownership.  The timeshare development, developed in the mid-80s by Shawnee Development, Inc. (SDI) was built as an interval ownership project.

In 2012, the Monroe County Court of Common Pleas, in front of the Honorable Judge Arthur Zulick, certified a lawsuit filed by the Association as a Class Action suit.  In the Class Action suit its Board of Directors was named as Trustee to represent all the Class members.

Said Wilkins, “What we did is get a super majority vote of the owners, including those who were delinquent, and have the Association members ratify that there was more value in selling the units as whole owner units than there was in continuing as timeshare.”  Wilkins further stated “An overwhelming majority of the owners have owned for 20+ years.  Some had either passed away, their children were grown and other factors made it impossible for them to continue paying dues.”  The lawsuit stated a delinquency rate of close to 90 percent. 

Wilkins and his partners have done the converting of timeshares in other parts of the Poconos.  In 2007, they sold the Wild Acres timeshares in Pike County in an “auction style” sale.  The Northslope II timeshare will be sold in a similar fashion.

The Monroe County Taxing Authority will receive over $670,000 in delinquent real estate taxes at the time of the sale.  In mid-2012, RCI, the world leader in timesharing exchange terminated their accreditation of the quartershare timeshare program at Northslope II which in fact rendered the timeshares worthless.  The estimated value of the intervals-, as timeshare or interval ownership, was stated to the court to be anywhere between $100 and $300.  The units as fee simple interest are being offered to the general public at $49,900 for interior units and $52,900 for end units.  “Said Wilkins, “the sale is scheduled for February 8-9, 14-16 and 22-23; I am estimating all the units will sell without any problem.  It is a cash sale.”

Stated Joseph S. Wiesmeth, Esquire, attorney for the Plaintiffs, “This is really a win/win/win circumstance.  All of owners will be credited from the money received from the sale and those owners who are not delinquent could receive an estimated amount anywhere from $16,000 to $19,000.  The county will win by receiving all of the delinquent real estate taxes which is close to $700,000 and the new owners have the ability to get a great opportunity at, what at one time was a very active development.”

Currently, there are 76 whole-owned units at Northslope II and when combined with the timeshare units should make it a very viable association with approximately 125 units.  Northslope II is a combination of rental units, vacation homes and primary homes for professional and retired persons.  The development is located two minutes from the Shawnee Ski area.

Any timeshare member who opposed the plan and distribution of funds was given until January 3^rd to file an objection.  No objections were filed with the Monroe County Court of Common Pleas.  A hearing to consider final approval of the sales plan is being held on January 21, 2014 in front of the Honorable Judge Arthur Zulick at 1:30 p.m.

For further information, about the sale, please visit www.shawneetownhome.com call the Wilkins office at (570) 421-5409.  All buyers should be registered.   There is no obligation to buy if you register.  Appointments on the days of the sale are requested.