Anyone ever have to REDUCE points instead of add-on?

[PrincessAnneDroid]

Hi there. We've been DVC members since November 2008 (bought into AKV). We bought in with 200 points. Circumstances have changed, and currently, my husband is the only one working (I'm attending school full-time). He's recently told me that he's very worried about money at the moment and that we may have to give up DVC. I told him to first check and see if we can reduce our points with our DVC rep. I wanted to check and see if anyone has ever attempted this or if it can even be done? I've searched through threads but everyone seems to be talking about adding on ppoints, not taking some away. I'd love to be able to talk about adding on, but it can't happen right now. If you have been able to do this, please let me know (I'd also be concerned about how giving up on DVC could affect our credit score. Not something ANYONE needs, especially if we may be looking into a small business loan in a few years). Thanks!

 

[ohanalover]

Hi there. We've been DVC members since November 2008 (bought into AKV). We bought in with 200 points. Circumstances have changed, and currently, my husband is the only one working (I'm attending school full-time). He's recently told me that he's very worried about money at the moment and that we may have to give up DVC. I told him to first check and see if we can reduce our points with our DVC rep. I wanted to check and see if anyone has ever attempted this or if it can even be done? I've searched through threads but everyone seems to be talking about adding on ppoints, not taking some away. I'd love to be able to talk about adding on, but it can't happen right now. If you have been able to do this, please let me know (I'd also be concerned about how giving up on DVC could affect our credit score. Not something ANYONE needs, especially if we may be looking into a small business loan in a few years). Thanks!

You can always rent the points you don't need. Did you buy all 200 points with one contract? If so, I believe you have to either sell or keep all 200. This is why many people (as I've recently learned), buy a few smaller contracts instead of one big one.

 

[PrincessAnneDroid]

I see. That's what we were afraid of. Yes, it was all one contract. I know nothing about renting points. I guess my husband and I have a lot to discuss. Thank you again.

 

[JimMIA]

I don't know what you paid, or whether you financed, but if you bought in 2008 you might take quite a loss by selling.

AKV resales look like they're in the low $80's - high $70's per point, plus you'd have to factor in a 10% commission on the sale, so you'd be netting low $70's probably = roughly $14,000-$15,000.

Before you do anything drastic, I would look seriously at renting.

You said don't know anything about renting, so a service like David's (www.dvcrequest.com) might work well for you. I have not used David's service, but many others have with good results.

And finally, don't do anything rash. Look at all your options and take your time to do some research before you make any decisions.

Good luck!

 

[Dean]

Hi there. We've been DVC members since November 2008 (bought into AKV). We bought in with 200 points. Circumstances have changed, and currently, my husband is the only one working (I'm attending school full-time). He's recently told me that he's very worried about money at the moment and that we may have to give up DVC. I told him to first check and see if we can reduce our points with our DVC rep. I wanted to check and see if anyone has ever attempted this or if it can even be done? I've searched through threads but everyone seems to be talking about adding on ppoints, not taking some away. I'd love to be able to talk about adding on, but it can't happen right now. If you have been able to do this, please let me know (I'd also be concerned about how giving up on DVC could affect our credit score. Not something ANYONE needs, especially if we may be looking into a small business loan in a few years). Thanks!

As noted, can't sell part unless you have multiple contracts under one master. Could add on then sell or sell and buy something else. Any any case, any pending reservations will be cancelled. As noted, if there's a mortgage, it's very possible you owe more than you'll get in return. Good luck, I hope it works out.

 

[JWG]

I, just yesterday, made a reservation by renting points from another DVC and disboards member. The process went very well, they had a listing of locations we'd book at and once we had the reservation number we paid them via PayPal at the agreed upon $/pt.

I'm not sure what, if anything, you owe in financing but renting may help pay that bill. The average rate is $10 per point it seems to do it yourself.

 

[PatMcDuck]

I think we will be selling our 200 points at BCV in late August. (well, listing it then). Our family expenses have just gotten out of control. We used the DVC for many years, it was great! Kids are grown now, youngest is 18, oldest 24. If we could afford it, I would surely keep it. So you are not alone! I am not too upset about it, because I know it has to happen.

 

[Greysword]

One option that you may want to consider is a swap with another member. Now that I hit the talking point, I'll go over my thoughts in detail.

If you own your points outright (no loans against the deed), then you may consider giving your 200 point contract to another member in exchange for their deed with a lower point count (100, 50, etc). This may be an option worth considering if the reason for getting out of the contract is due to the annual (monthly) fee costs. However, it is probable you would be loosing money on the transaction due the initial buy-in costs being higher on 200 points and the possible attorney or title agency fees incured to dradft and file the deeds. You would likely not be required to pay taxes, though, due to loosing value on the transaction.

Of course, another option if there is a lien against the deed is to get an unsubsidized student loan and pay off your DVC contract with it, since student loans are generally at rediculously low interest rates (way lowerthan Disney) and the accruing interest can be rolled into the body of the loan if you are unable to pay it right now.

MTFBWY!

 

[JimMIA]

One option that you may want to consider is a swap with another member.

Interesting idea -- I wonder how DVC would handle that.

The swap would still have to pass ROFR. I wonder if DVC would say, "Oooo! 100 of our points for 200...we'll take that!

No cash from them, double their points, close it themselves for pennies...seems like a no-brainer if the contract was owned free and clear.

 

[Dean]

One option that you may want to consider is a swap with another member. Now that I hit the talking point, I'll go over my thoughts in detail.

If you own your points outright (no loans against the deed), then you may consider giving your 200 point contract to another member in exchange for their deed with a lower point count (100, 50, etc). This may be an option worth considering if the reason for getting out of the contract is due to the annual (monthly) fee costs. However, it is probable you would be loosing money on the transaction due the initial buy-in costs being higher on 200 points and the possible attorney or title agency fees incured to dradft and file the deeds. You would likely not be required to pay taxes, though, due to loosing value on the transaction.

Of course, another option if there is a lien against the deed is to get an unsubsidized student loan and pay off your DVC contract with it, since student loans are generally at rediculously low interest rates (way lowerthan Disney) and the accruing interest can be rolled into the body of the loan if you are unable to pay it right now.

MTFBWY!

A "swap" is technically just a sale by each party to the other. The only real advantage is that if you can find a match, both parties can avoid commissions and possibly some of the closing costs if they're willing.

 

[BigTigger]

Of course, another option if there is a lien against the deed is to get an unsubsidized student loan and pay off your DVC contract with it, since student loans are generally at rediculously low interest rates (way lowerthan Disney) and the accruing interest can be rolled into the body of the loan if you are unable to pay it right now.
MTFBWY!

Hmmm ... most unsecured and non-subsidized student loans are at 7.5 to 8.5% - not exactly ridiculously low although that is 3% lower than DVD offers. Also, most lenders pay the school, not you on an unsecured loan, so I'm not sure how you'd "cash out" to pay DVC off.

 

[johnsbelt]

Hmmm ... most unsecured and non-subsidized student loans are at 7.5 to 8.5% - not exactly ridiculously low although that is 3% lower than DVD offers. Also, most lenders pay the school, not you on an unsecured loan, so I'm not sure how you'd "cash out" to pay DVC off.

Whatever the school gets from the loan is that much less you have to pay the school. So instead of writing the check to school, it gets written to DVC.

John

 

[rparmfamily]

I highly recommend David's service. He pays you $10 a point, so 200 pts=$2000. You get 1/2 up front (into your Paypal acct) and the rest at check in of the guest. I filled out an agreement in June and my points just rented and it's been SUPER easy and a great way to pad our pocketbook since we can't really use our points right now. All you do is check your email and respond to him if he has someone who wants to use your points. You call MS, make the ressie, get confirmation # (this took all of about 10 mins) and email the info back to David. He verifies it, and we got the money the next day. Easy-peasy! (so far anyway LOL)

I'd rent it while you need the money, you don't have to deal with any cancellation issues (this is in the contract w/David, he gets 100% of the money up front) and you still get to keep your DVC for the future, when things are better.