For nearly a decade, Mina and Ray Feldman have been escaping the brutal Michigan winters by jetting off to Puerto Vallarta, Mexico. This year the Farmingham Hills couple decided to spring for a time-share there. They found a promising unit at the Sheraton Buganvilias Resort on eBay and steeled themselves for a bidding war. Turns out, they didn't need to. As the only bidders, the Feldmans snagged their new annual weeklong getaway for a price Mina calls "laughable." Their winning bid? $1.

Anyone who's been reading the travel section lately can recite the latest headline-stealing vacation deals, whether they're $29 flights or free hotel nights. But even these are being put to shame by the eye-popping markdowns cropping up in the vacation-ownership market. There are plenty more $1 time-share deals (not counting those tricky maintenance and transfer fees, of course), and the time-share's posher sibling, the fractional share, isn't faring much better, with the average price per share down $19,000 in 2008.

Even high-end destination clubs, which allow travelers to buy access to a pool of luxury homes, are in fire-sale mode; Abercrombie & Kent Residence Club, for instance, recently announced a 40 percent reduction in initial membership fees. And beyond price drops, companies that once thrived on an air of exclusivity are now ready to wheel and deal, with new "try before you buy" packages and lease-to-own offers. "No one wants this inventory on their books," says Mark Lunt, a hospitality adviser with Ernst & Young. "It's absolutely correct to say there are bargains out there right now."

Certainly, no part of the real estate industry came though the economic downturn unscathed, but compared with the 40 percent plunge in sales suffered by the vacation-ownership industry last year, the anemic home market looks positively cheery. The problem for developments like time-shares and fractionals, says Lunt, is the "double whammy." On one side, the credit crunch has squeezed companies' ability to provide financing. On the other, the sputtering travel industry has dried up the pipeline of would-be buyers, since most developments are associated with resorts whose visitors are a huge source of new recruits. What's more, distressed companies have tried to make up ground by raising annual fees, causing some owners to head for the door even if they have to dump their property for pennies. And many big players are pulling out of the industry or going bankrupt, causing some to wonder whether the shared-ownership model can survive.

Still, not everyone thinks the vacation-ownership market is in a death spiral. Below, an update on how some of the most popular vacation-ownership options work and how they're faring now.

Time-Shares

Not surprisingly, the model that has taken the most hits is that Rodney Dangerfield of vacation ownership, the time-share. These properties, which typically give owners deeded ownership of one week at a specific resort, began to pop up more than three decades ago; as big hotel brands ramped up their presence, the market gained momentum. But when the recent downturn brought the industry to a screeching halt sales were down an estimated 40 percent last year all the big players announced drastic pullbacks. Would-be buyers are finding financing practically nonexistent, and many current owners are having trouble paying their annual fees. According to Aspen National Collections, which collects late payments, maintenance-fee defaults have increased by more than 10 percent over the past year.

A lot of these overwhelmed owners are turning to eBay or online classifieds to try to unload their weeks. While some in the industry suggest approaching these listings with extreme caution Howard Nusbaum, president of the American Resort Development Association, likens them to "buying a used car out of the newspaper" others take a more positive view. "For buyers, it's never been better," says Brian Rogers, owner of online community Timeshare Users Group. Rogers suggests plenty of due diligence, including contacting the resort in question to verify ownership and checking that all back fees have been paid.

Those still on the fence can test-drive a time-share, thanks to the industry's fast growing rental business. Developers are beefing up their rental programs with unsold inventory, says Nusbaum, while rental postings at RedWeek.com, a site that connects owners with travelers looking to buy or rent, jumped 30 percent during the first half of 2009. For cash-strapped owners, renting could even lead to an unexpected sale. Joanne Regnault, a retiree from Kill Devil Hills, N.C., experienced this firsthand when she rented out her one-bedroom time-share on Block Island, R.I. Although the unit wasn't listed for sale, the renters called Regnault right after their vacation, asking if she'd consider parting with her time-share permanently.

In fact, they were so smitten with the property that they didn't even bother to negotiate leaping at Regnault's $10,500 asking price.

Bottom Line: Tough to sell, bargain for buyers.

Fractionals

The difference between a fractional and a time-share is much like that between a luxury hotel and a midmarket property. The basic model is the same, but fractionals are far pricier (the typical share ranges between $150,000 and $400,000), come with a roster of cushy-sounding concierge services and are sold in blocks of time up to three months. Although fractional sales have slumped just as much as their more affordable cousins, industry watchers say the market is still the best bet for anyone looking for a property that may ultimately appreciate. Because fractionals tend to be limited to prime "jet-set" ski and beach destinations, values are high to begin with, says Scott Berman, hospitality practice leader for PricewaterhouseCoopers. And while prices track the local market, companies are working hard to stop discounted properties from flooding the resale market and devaluing the developments. "We know resales are our worst enemy," says David Burden, CEO of fractional developer Timbers Resorts.

What's more, the sales slump has prompted some changes that could benefit newcomers to the market. To better compete, many fractional developments are bulking up their location-swapping programs; some 65 percent now allow members to access some type of exchange, up from 25 percent seven or eight years ago, according to consultancy Ragatz Associates. Many also now let travelers try out the properties and their luxe concierge services for the price of a hotel stay. The Phillips Club in New York City, for instance, recently offered a "preview" rate of $300 per night. "Everybody wants a deal right now," says director Ed Schnatterly.

Bottom Line: Best bet for holding long-term value.

Destination Clubs

For Steve Safigan, the reasons for choosing a destination club over other partial-ownership options were clear: His family could visit a range of destinations and have entire luxury homes to themselves and an army of concierges at their beck and call. But after the Rome, Ga. based retiree signed up for a trial membership with High Country Club, it liquidated under Chapter 7 bankruptcy last year, taking his $20,000 membership deposit with it.

Safigan is far from the only destination-club survivor with a tale of financial woe. These clubs which, for a $200,000 to $300,000 membership, plus annual dues, allow members to stay in any one of a collection of multimillion-dollar homes have a short but checkered history. Tanner & Haley, the club credited with creating the industry, left more than 800 members as unsecured creditors when it filed for Chapter 11 in 2006, and several smaller bankruptcies followed. Critics claim the club model encourages companies to become overleveraged while providing members with little security.

But while many destination clubs continue to struggle, recent changes suggest the industry may be addressing some of its problems. Clubs like Equity Estates and Abercrombie & Kent Residence Club use an equity model, in which members own the club's actual property and management must conform to strict debt limits. The Ritz-Carlton Destination Club now lets members use points to stay in any of the company's network of fractional or hotel properties. Financial transparency, too, is improving; last year, Ultimate Escapes created a member board of advisers, which is privy to many of the company's financial records and future plans. And the shift in the industry seems to be making at least a few converts Safigan says he's now a satisfied member of yet another destination club.

Bottom Line: Easiest for multiple destinations; still risky.