RANGELEY – The developer of the 35-acre Rangeley Lake Resort set to foreclose on 45 of its time share owners said this isn’t an ominous sign of the times.
Two weeks from today, a public auction will be held at the 39-cabin resort on the lake for 45 individual defaulted loans, each representing a one week per year deeded time share in a cabin. The modern log cabins, that come with access to a clubhouse with an indoor pool, sell for $15,000 for the one week stay per year.
A managing partner of the Rangeley Lake Resort Development Company, LLC, Perry Williams of Portland, said the 45 time shares on the auction block represent two or three years’ worth of people who haven’t made payments on their loans and can’t be located.
“This is long overdue,” Williams said. “It’s a group of individuals who haven’t responded to our letters and can’t be found. This is their last chance.” As the developer of the eight-year-old resort, Williams routinely finances the time share loans, but said he doesn’t see this group foreclosure as a bad sign of the times.
He pointed out there are a total of 2,800 owners for the 52 weeks a year the 39 cabins are available.
“The sheer volume of individuals involved mean a relatively small number of people who aren’t paying,” Williams said. According to the owners’ last know address, 35 of the 45 times share weeks facing foreclosure are owned by Maine residents.
Rangeley Town Manager Perry Ellsworth said 45 people in foreclosure is significant. He points out that’s 45 possibilities for the support of local shops and restaurants.
“The resort is important to town. I hope they (the time shares) can be resold,” Ellsworth said and added, “It’s the impact of the higher costs of fuel; it costs so much more to travel now. He added he is a time share owner somewhere else, but is beginning to rethink it.
“It’s getting more expensive with higher maintenance costs and taxes going up. It costs less just to go somewhere on vacation,” Ellsworth said.
The auction, which will be held at the resort on Cottage Avenue beginning at 11:30 a.m on Aug. 11, will consist of running through the list of names to “see if anyone shows up,” Williams said. He added his attorney will be there to make sure it’s done in accordance with state law.
“It’s a mortgage and these are the steps we take when there’s a default in a loan,” he said. If an owner does show up, payment will be required in order to hold onto the time share deed. For the no-shows, the deeds will be transferred back to the resort company for resale.