Purchasing a DVC bankruptcy resale contract advice

Discussion in 'Purchasing DVC' started by friskygal95, Apr 2, 2013.

  1. friskygal95

    friskygal95 Earning My Ears

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    My husband and I are looking to purchase our first DVC contract. We put in an offer for one for SSR 50 points $60/point August UY with no MF due till 2014 since there are no points available until then seller pays closing, buyer pays the administrative fee ($195 through fidelity). After this the broker told me that this contract is a bankruptcy case and it may take a little longer to close on. Seller accepted our offer (which I was surprised at since I asked for them to pay closing cost) but I am now having a little bit of doubt if this was a good deal and how long closing may take as we were thinking about going in September and I was going to borrow the points from the 2014 UY. I questioned the broker again about how long and she said she don't think it will be too much longer than a normal closing. Since it is a stripped contract I though maybe it would pass ROFR a little easier as well. Thoughts from some experienced DVC owners? Is this a good deal? Anyone dealt with a bankruptcy contract purchase before and how long did it take? I got to give the broker an answer tomorrow on whether to proceed or not on this. Thanks in advance!
     
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  3. Hunclemarco

    Hunclemarco DIS Veteran

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    I'm guessing that you're purchasing from the same seller that i am. I got the SSR 55 point contract aug UY
     
  4. friskygal95

    friskygal95 Earning My Ears

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    She did mention that there were other contracts already sold and there was a trustee assigned already and the judge will sign a motion to sell within 30 days. just concerned about how it will all play out since I never bought before.
     
  5. Daisyduck49

    Daisyduck49 Mouseketeer

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    We are looking at a different contract but same circumstances. Does anyone have any history on dvc exercising ROFR?
     
  6. Hunclemarco

    Hunclemarco DIS Veteran

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    Our contract was waived a week or so ago...but there's not rhyme or reason what DVC will do. As other threads mention, they like to change things up.
     
  7. Daisyduck49

    Daisyduck49 Mouseketeer

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    We have heard that Disney doesn't like dealing with the courts and trustees. Fingers crossed
     
  8. friskygal95

    friskygal95 Earning My Ears

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    So maybe they won't ROFR then? Is $60 a point good on SSR? It's a smaller contract which I know are really popular so I was just really surprise I even was able to receive an accepted offer...I am sure I am just being paranoid since I'm new to this
     
  9. Hunclemarco

    Hunclemarco DIS Veteran

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    I thought I was paying a little high, I'm also new to purchasing resale. Another DISser mentioned $60 is not a bad price. You might be able to go lower, perhaps someone more experienced will chime in, especially with all the ROFL'ing going on.

    Sent from my iPhone using DISBoards
     
  10. Sandisw

    Sandisw Moderator Moderator

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    IMO. The price you pay should be a good price for you. If you are comfortable, then I say its a good deal. In terms of bankruptcy, I have not dealt with that so not sure if that makes a difference. If its going to be up to 30 days for a decision to sell, then it could be up to 30 days to get through the ROFR process, and another 30 possibly to close and be in the Disney system, you are looking at possibly a June date. Not much time to schedule a September trip. However, if you are flexible with dates September is a slower DVC travel time. We just closed and it took about months from offer to being in the system but we had a seller who had paperwork back very quickly.

    Good luck!
     
  11. raykit98

    raykit98 Mouseketeer

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    I was told that Disney does not care about older contacts, and at $60 per point you should be fine.
     
  12. fmer55

    fmer55 DIS Veteran

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    You were given bad advice as Disney is exercising the Beejesus out of the older boys right now. OKW and BWV specifically:cool2:
     
  13. BWV Dreamin

    BWV Dreamin DIS Veteran

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    I think that disney does not want to fool with bankruptcy sales and that is what will probably get you through ROFR. Best of luck!
     
  14. jendujka

    jendujka Earning My Ears

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    I'm curious to know how far you have gotten in the process in a month. We are doing the same in (attempting to) purchase a contract through bankruptcy. 150 point contract that has only 53 points coming Oct 2013 with full points coming Oct 2014. Just wondering if you have passed ROFR yet.

    Fingers crossed!
     
  15. Hunclemarco

    Hunclemarco DIS Veteran

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    We passed ROFR March 20, got our closing documents a week later, turned them In that day. We're still waiting for the closing documents from the seller. The judge has to approve the sale...that's what we're still waiting for. If we seem to have the same seller, I'm curious if the other buyers here have heard any progress on their closings.

    Sent from my iPhone using DISBoards
     
  16. Daisyduck49

    Daisyduck49 Mouseketeer

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    We are looking at a bankruptcy purchase as well. Just curious how your price per point compared to the other resales?
     
  17. Mflaherty

    Mflaherty Mouseketeer

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    Do u mind if I ask how much below asking price was your offer?
     
  18. jendujka

    jendujka Earning My Ears

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    We agreed on $55 per point for 150 SSV, buyer paying closing and MF for the 53 2013 points coming in Oct -- pretty stripped contract. It looks like Disney has ROFRd all recent contracts at that price that had full points coming but let some go if there are limited points until 2014.

    I noticed a listing today on fidelity that we would have been very tempted by if it was there when we agreed! Asking $62 - SSV 150 -- FULLY loaded. I wonder if that won would get ROFRd even at the $62.

    We were close to agreeing on a AKV contract 120 points for $65 (seller originally asking for $80) splitting closing, buyer paying MF but we ended up wanting more points.

    Anyhow, I can wait for the court as we just need the 53 - 2013 points for next May. I just hope we pass ROFR.
     
  19. Mflaherty

    Mflaherty Mouseketeer

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    Thanks so much for the info! You will pass rofr!!! I read somewhere that 95% pass. Think positive. :)) you should be fine. The odds are in your favor!
     
  20. jendujka

    jendujka Earning My Ears

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    Thanks for the positive energy!!!
     
  21. jbullard01

    jbullard01 Earning My Ears

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    I have been looking at regular resales, but this may be better?
     

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