UPDATE: Some Diamond Timeshare Owners Given Option to Surrender Deed

Tampa, Florida – January 21, 2012: 

Yesterday we reported on an interesting turn of fate concerning Diamond Resorts CEO Stephen Cloobeck and his appearance on CBS’ popular show, Undercover Boss. While no doubt intended to portray Cloobeck in a positive light – angry owners from Diamond Resort’s Point of Poipu found the episode to be the final straw in a long list of insults. 

After receiving their special assessment fees of approximately $5,000 – on top of their annual maintenance fees, owners were stirred into action as Cloobeck flaunted his “trophy wife, his Ferrari, his private jet [and] his homes,” on the show. Following his comments to the Las Vegas Review-Journal, where he stated that he would “return money to unhappy time share owners” Point of Poipu Hawaii timeshare owners have come together to seek full refunds and retribution.

Surrender Deed in Lieu of Foreclosure

According a post on the Point of Poipu Angry Owners Facebook page, some owners have been contacted from Diamond Resorts with the offer to surrender their deed in lieu [of foreclosure.] The company apparently offered to refund all maintenance fees paid for 2012, in addition to the special assessment fee, if already paid. According to a post by an owner who’d received the “coveted email,” Diamond sent out the following email to multiple Point of Poipu owners who had contacted Cloobeck or Diamond regarding his comments about to the Las Vegas Review-Journal: 

“Provided you do not have a mortgage, Chairman and CEO, Stephen J. Cloobeck, has authorized voluntary surrender deed in lieu’s. This will relieve you of your 2012 maintenance fee obligations; including the water intrusion assessment, and all future maintenance fees. 

You will be issued a refund if you paid the water intrusion assessment. You will also be issued a refund of your 2012 fees, provided you have not used your 2012 points.

Once voluntary surrender deed in lieu’s are signed and processed, all scheduled reservations will be cancelled. 

Your information has been forwarded to the appropriate department and the paperwork will be mailed to you within 5 business days.” 

Owners Want Full Refund of Timeshare Purchase Price

However, for many owners, surrendering their deed simply isn’t an option. Many Diamond timeshare owners paid upwards of $20,000 for their deed, and surrendering it to Diamond to “resell for another $20,000” (as one poster commented) doesn’t feel like a remedy, it feels like a sham. 

Unless they’re offered a full refund for the cost of their timeshare, many owners are unwilling to simply surrender their investment.  Will this offer extend to owners at other Diamond resorts? How many owners will surrender their deeds, and how many will hold out for better offers? We’re watching this one closely.


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