Buy and Bank

[MichellT]

I'm sure for most of you this is a stupid question but I'm flying blind. We recently offered to buy a BWV contract from resale, and have gotten the approval from Disney (whew) so are just waiting for the title search before we can close. Broker says that we should be closed in 15 days (I'm assuming business days, so that's 3 weeks from now, in August).

It's a December use year and the contract has some points left over from 2001 allocation (yes, I know I should feel lucky but instead I'm just confused!). If we are just getting them in August, I don't know if we will be able to use -- let alone rent -- them and of course I can't find out until we close and get everything official.

So ... any recommendations? What is the deadline -- explicitly -- to bank these points? I read it's 7 months into the year, but is that 100%? Also, does 7 months mean July 31st for a December use year (and maybe we could do that?).

Any advice appreciated. Thanks for reading!

 

[nezy]

I am sure someone on these boards will have an answer, if not call Member Services. I assume you will be givem a "guide". If you find out who that is ask them.

 

[Caskbill]

Basically you won't be able to do anything with those points until the contract closes. I guess it's already too late for you to have the previous owner bank them?

In any case, for a December use year, you may bank 100% by May 31 (already too late for that for your 2001 year). Bank 50% by August 31. If you close in time you may be able to meet this. Or bank 25% by September 30th. Beginning Oct 1st you would be past all banking windows.

You don't mention the size of the contract, or how many points are left, so let's just take 200 points as an example. Between now and August 31 you can bank up to 100 points. If you don't bank by then, you can still bank up to 50 points by Sep 30th. If you don't bank by then, you have passed your banking windows.

Remember, this is NOT cumulative. In other words you cannot bank 100 points by Aug 31, then bank another 50 points by Sept 30. The Sept 30 date would be the date you can bank a maximum of 25% of your allocation of 200 points. If you already had 100 points banked, (which would be 50%), then you've got more than the 25% allowed banking for that time frame and cannot bank any more.

Hope I made that clear.

BTW the 100% window is 6 months, including your allocation month. So for a December use year, you receive them Dec 1st, and can bank them anytime in Dec, Jan, Feb, Mar, Apr or May. Beginning June 1st you could bank only 50% for three months: Jun, Jul, Aug. Then beginning Sep 1, you can bank 25% for only 1 month: to wit, September. Beginning Oct 1st, you could no longer bank at all. (Oct, Nov). That basically covers your use year as far as your banking windows.

 

[EmptyNester]

Definitely ask the seller to bank the points (I believe the seller can do this until cloing...) It's one less thing you'll have to worry about!

When we purchased our OKW resale earlier this year (Oct use year, all 2001 points available), we were not sure if we'd close before the 100% banking deadline (March 31st). To cover that possibility, we put a contingency clause in our contract requiring the seller to bank the 2001 points. When it became clear that the closing wouldn't happen until April, I called our resale broker to make sure the points had been banked (they were). Once the contract had closed and Disney had our information, I called and verified the point status. Everything was as I expected

Now we are anxiously awaiting our trip in Feb 2003!!!

 

[WDWalways]

I have a ??? - if all points are borrowed from '03 I know they can not be put back BUT can they be banked?? How does that work?? Must they be used by a certain time?? Use year is August. Thanks!!

 

[CarolMN]

Originally posted by WDWalways
I have a ??? - if all points are borrowed from '03 I know they can not be put back BUT can they be banked?? How does that work?? Must they be used by a certain time?? Use year is August. Thanks!!

Once borrowed, points cannot be returned to their original use year. With an August use year, the 2003 points would be good for stays between 8/1/2003 and 7/31/2004. If they were borrowed into the 2002 use year, they must be used between 8/1/2002 and 7/31/2003. If they are not used within that time frame, they would be forfeited.

 

[MichellT]

Good information above; it sounds like since it's too late to bank all the points (236 of them!) then I will try to either use or rent them.

We already have a trip planned but it's for two weeks so I'm really doubting that I can get anywhere for that long and since I will be 7.5 months pregnant, I do not relish the idea of moving around .

Off to the rental boards for me as soon as we close!

Thanks for all the help!

 

[WDWalways]

Originally posted by CarolMN


Once borrowed, points cannot be returned to their original use year. With an August use year, the 2003 points would be good for stays between 8/1/2003 and 7/31/2004. If they were borrowed into the 2002 use year, they must be used between 8/1/2002 and 7/31/2003. If they are not used within that time frame, they would be forfeited.

OK -- how about this?? Can the points be used for a trip in Sept. '03 but reserved within the time frame of 8/1/02 - 7/31/03 or must the trip be taken between those dates??? Also, I'm the same person with the "reservation status" points problem -- I'm sure you realized that -- how long do the "reservation status" points last?? Say they were borrowed from points alloted 8/1/02. When do they need to be used by?? Thanks so much!!

 

[CRobin]

That point use question comes up a lot...

It matters not when you make the reservation, only the availability of your points at the time of the trip. In other words, you can have no points today, but can book a trip in the future based upon your upcoming allotment, occuring on your use year month. In the same vein, you can't use points currently available for a future trip if those points will have expired at the time of the actual trip.

I am pretty sure that the points in reservation status have to be used for a non-DVC reservation, and expire at the end of their original use year.

Good Luck!

 

[DebbieB]

Originally posted by WDWalways


OK -- how about this?? Can the points be used for a trip in Sept. '03 but reserved within the time frame of 8/1/02 - 7/31/03 or must the trip be taken between those dates??? Also, I'm the same person with the "reservation status" points problem -- I'm sure you realized that -- how long do the "reservation status" points last?? Say they were borrowed from points alloted 8/1/02. When do they need to be used by?? Thanks so much!!

All points usage is by date of stay, not date of reservation.

If August 2003 points were borrowed into the August 2002 use year, they must be used for stays by 7/31/03.

 

[CarolMN]

Originally posted by WDWalways


OK -- how about this?? Can the points be used for a trip in Sept. '03 but reserved within the time frame of 8/1/02 - 7/31/03 or must the trip be taken between those dates??? Also, I'm the same person with the "reservation status" points problem -- I'm sure you realized that -- how long do the "reservation status" points last?? Say they were borrowed from points alloted 8/1/02. When do they need to be used by?? Thanks so much!!

First, I'll just confirm that you can always make a reservation at your home resort 11 months ahead of your departure date as long as there will be points in your account when you arrive.

Reservation points expire at the end of the use year. If the owner borrowed points to make a non-DVC reservation and then cancelled it, the reservation points would expire at the end of the use year the points were borrowed into. Specifically, if the 2002 points were borrowed into the 2001 use year, they would need to be used before 7/31/2002 or they would be lost. (If that is the situation for the resale you are considering, my advice is to assign no value to them at all. You will not be able to use them as you cannot even make a ressie until the sale has closed and you are in the MS system - that alone usually takes a week after closing). JMHO, but I doubt anyone would disagree with me on this.

 

[WDWalways]

OK - maybe I'm slow but I need to have it clarified for me one last time (I promise! ) before I commit to this resale --

This is the situation -

Use year Aug. -- as of Aug 1, '02 partial points will be avail because the remainder were borrowed and then cancelled and are being held in "reservation status" so I need to know when the points borrowed from '02 and held in "reservation status" must be used by before forfeiting.

Also, all points from '03 are borrowed but not used so as of Aug 1, '02 I would have all points from '03 plus points not borrowed from '02 (make sense I hope) -- what are my options??

Thank you everyone for your help and patience!!!

 

[WDWalways]

I want to apologize to MichellT for taking over their post!!

 

[CarolMN]

Originally posted by WDWalways
OK - maybe I'm slow but I need to have it clarified for me one last time (I promise! ) before I commit to this resale --

This is the situation -

Use year Aug. -- as of Aug 1, '02 partial points will be avail because the remainder were borrowed and then cancelled and are being held in "reservation status" so I need to know when the points borrowed from '02 and held in "reservation status" must be used by before forfeiting.

Also, all points from '03 are borrowed but not used so as of Aug 1, '02 I would have all points from '03 plus points not borrowed from '02 (make sense I hope) -- what are my options??

Thank you everyone for your help and patience!!!

The reservation status points expire on 7/31/2002. That is because they were borrowed from 2002 use year into 2001 use year and thus must be used for a stay between 8/1/2001 and 7/31/2002.. Once points are borrowed, they cannot be returned to their original use year. IMHO, these points are of absolutely no value to you because you will not close in time to do anything with them. Make your purchase offer as though these points weren't even there. They will expire even before you would be able to close.

The points that are borrowed from the 2003 use year will expire on 7/31/2003. They must be used for a stay between 8/1/2002 - 7/31/2003 (That is the time frame for the 2002 use year when youhave an August yuse year). You cannot return these points to the 2003 use year. If you do not use them by 7/31/2003, you lose them.

The 2002 use year points (the part of the 2002 allocation that was NOT borrowed into 2001 use year) are good for stays between 8/1/2002 and 7/31/2003. If you do not want to (or cannot) use these points during that time frame, you can bank them. For an August use year, the deadlines are the end of January (100%), end of April (50%) and the end of May (25%). You cannot bank any points at all in June or July when you have an August use year. If you bank them, they would have to be used between 8/1/2003 and 7/31/2004.

HTH.

 

[WDWalways]

Thank you so much!!!