Hundreds of Shenandoah Crossing Owners Given Foreclosure Notices

Hundreds of owners at Bluegreen Vacations' Shenandoah Crossing Resort were given foreclosure notices in March. The foreclosures are related to tenant-in-common ownership stakes in properties recorded in Louisa County, Virginia. The defaults date to January 1, 2012 according to the legal ad for the notices.

Attorney Comments

"There are clearly a lot of people who have not paid their timeshare assessments and probably an owners' association that would like to resell the timeshares to new owners that will pay future assessments," said John D. McPhaul, an attorney for Troutman Sanders, a Richmond law firm, specializing in commercial lending and foreclosures.  

McPhaul went on to say, "Legal advertising for the sale of timeshares tends to be done in bulk because it is more cost-efficient, as the sale of individual timeshares does not typically generate the same amount of proceeds that the sale of a single-family home or condominium unit would."  He added that he didn't know if the Shenandoah notices represent more than the usual number of owners in default for this particular timeshare project, and that the number of timeshares in any project can vary widely.

Timeshare Resort Offers 1000 Acres of Wilderness

Shenandoah Crossing is located near Gordonsville, Virginia and northeast of Charlottesville. It's owned by Florida company Bluegreen Corporation, which manages and markets the Bluegreen Vacation Club that includes Shenandoah Crossing. The resort opened in 1989. According to the website of the sales center, the resort offers 1000 acres of wilderness area, including a 60 acre lake for fishing, pastures, hiking, biking, and horseback riding. Accommodations include yurts, round canvas tents with central air and heat, recreational vehicle pads, cabins and town homes.

Notice to owners in Richmond Times-Dispatch

According to an article in the Richmond Times-Dispatch, a notice to Shenandoah Crossing owners which ran Monday through Friday at the end of March stated, "You are in default on your assessment due to the association. Unless you take action to protect your property, it may be sold at a public sale. If you need an explanation of the nature of the proceedings against you, you should contact a lawyer."

The property owners were listed individually as having a 1/6,000th undivided interest as a tenant-in-common. The default amounts listed for each owner range from about $2,700 to more than $20,000. The estimated foreclosure cost for each property owner is $650. 

Investment Banker says "Not a Good Deal"

An investment banker at John B. Levy & Company in Richmond, commenting on the notice said "it looked like Bluegreen sells each home site for a separate week out of each year, which would allow them to sell 52 shares." He added that, "he couldn’t say anything else because the notice was hard to decipher, but that it looked like a deal to stay away from as a potential real estate investor."

Foreclosure Sale Draws Small Crowd

According to, the foreclosure sale for the timeshares went ahead on March 30th and drew a small crowd. Prices ranged from $830 to $23,000. Staff at Shenandoah Crossing told that 144 properties will foreclose and released a statement, "We are positive that this foreclosure process will allow for the sale of the delinquent inventory to new owners who will enjoy visiting the resort." The management company claims it tried to work with timeshare owners for many years on the issue, but wasn’t able to get the problems resolved.

No Word from Bluegreen Corp.

So far Bluegreen Corporation isn't talking. Calls to the company, from the Richmond Times-Dispatch were not returned.  Bluegreen Vacations is a wholly owned subsidiary of Bluegreen Corporation which manages and markets the Bluegreen Vacation Club. Its website says the vacation ownership program connects 195,000 owners with 60 Bluegreen resorts in more than 40 destinations across the U.S. and Canada.
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