Buying points from a friend

[LimoFam5]

So truely my friend is unfortunattly in a big of financial trouble and does not know what to do with her vacation club. She said it would help if she could miss a few months payments just until they got back on track, however she does not even know if this is an option.

Another option is I buy the points from her for the amount that is left on the loan which would be a steal........I would keep the points and if she wants to buy them back she has up to two years to do so. I am fine with this, I am just unsure how this would work??

Any suggestions on how to handle either of the possible......
Not paying loan for few months??
Buying and then selling back points to a friend......

She is a frequent poster on her so I told her I would post this questions on her behalf....... so please be nice as she is just looking for a way to get through and I am just trying to help.

 

[chalee94]

So truely my friend is unfortunattly in a big of financial trouble and does not know what to do with her vacation club. She said it would help if she could miss a few months payments just until they got back on track, however she does not even know if this is an option.

i'm not sure at what point disney would begin foreclosure proceedings, but at that point, DVC would take the contract back and give your friend $0, so that is not recommended.

Another option is I buy the points from her for the amount that is left on the loan which would be a steal........I would keep the points and if she wants to buy them back she has up to two years to do so. I am fine with this, I am just unsure how this would work??

you would still have to run the deal through ROFR. if the price is really set low enough, DVC would have the right to take the contract at the "steal" price and resell the points directly. closing costs for setting up a real estate transaction add to the complications.

it would be much easier if you simply rented disney stays from your friend for a couple of years (or if they rented their pts to others - maybe through david's service) for $9 or $10 per pt to get them through a rough patch.

 

[LimoFam5]

it would be much easier if you simply rented disney stays from your friend for a couple of years (or if they rented their pts to others - maybe through david's service) for $9 or $10 per pt to get them through a rough patch.

Oh very good idea.....that would cover at least a few months payments that would work, for me to, ok thanks.

 

[magicaldisney]

Yep, also agree with renting some vacations from them. A fair rate would be $10 for every point used for a vacation. Hopefully they haven't stripped their points.

 

[Dean]

So truely my friend is unfortunattly in a big of financial trouble and does not know what to do with her vacation club. She said it would help if she could miss a few months payments just until they got back on track, however she does not even know if this is an option.

Another option is I buy the points from her for the amount that is left on the loan which would be a steal........I would keep the points and if she wants to buy them back she has up to two years to do so. I am fine with this, I am just unsure how this would work??

Any suggestions on how to handle either of the possible......
Not paying loan for few months??
Buying and then selling back points to a friend......

She is a frequent poster on her so I told her I would post this questions on her behalf....... so please be nice as she is just looking for a way to get through and I am just trying to help.

Be careful about buying them. If they have other financial issues, it could affect you as well. Also, it would be illegal as I understand it, to put one price on the ROFR with a different price being agreed upon otherwise.

 

[Cruelladeville]

I agree, I would rent the points from your friend, which would cover her payments for the next few months, but she maintains ownership. The only problem that I can see is that if your friend can't get back on her feet after you have rented her points, you have already given them $1000 or more. You might want to make an agreement with your friend that the money you are giving them for rent could be used toward the purchase of the contract after your trip, since you would be buying a contract without points for the year. That would be somewhat beneficial for both of you. Also, if you are helping in other ways, that can also be counted toward your purchase price. When DD went thru a divorce, I bought her contract after paying it month by month for over a year. I just took over her payments, and didn't even think that this would be a problem, until I got the ROFL in the mail. I called Disney, and they said that paying other payments for her, or giving her a car to get to work, for example, were other examples of things to write down on the ROFL. I wouldn't give your friend the chance to buy the points back after two years, because that would cost you an additional $500 to transfer the contract to you, and then another $500 to transfer it back.

 

[LisaS]

If you rent the points from your friend for $10/point, are you certain that money will go towards her DVC monthly payments and not to something more pressing like her home mortgage/rent, car insurance, utilities, food, etc? You could find yourself unable to take the trip you paid for if she ends up not giving that money to DVC and Disney forecloses on the contract before your travel dates.

 

[disneynutz]

Getting involved with a friends financial issues can often make them your enemy.

Bill

 

[dianeschlicht]

If you rent the points from your friend for $10/point, are you certain that money will go towards her DVC monthly payments and not to something more pressing like her home mortgage/rent, car insurance, utilities, food, etc? You could find yourself unable to take the trip you paid for if she ends up not giving that money to DVC and Disney forecloses on the contract before your travel dates.

I agree with this. I think you would be taking a huge risk to rent the points out unless you KNOW the money is going to pay for DVC payments. Maybe a way around that would be for YOU to make the payments directly to Disney and have her make the reservation. Even then though, I'd be hard pressed to get involved with a friend's financial troubles to that degree. It really could end a wonderful friendship.

 

[sweetdana]

If you could afford a 25 point contract on your own. I would buy that and then buy a transfer of 1-2 yrs of points. This protects both of you.

 

[bookwormde]

You could also pay for the rented points by making your check(s) out out to DVC for the payments and maintinance fees for the timeframe that your rented points are going to be used. Make sure an put the acct numbers on it and you will be able to veryfy thrugh your bank statement. OF course this still does not prevent the owner form cancelling the reservation or selling the contract but does remove any temptation to divert the funds.

bookwormde

 

[hollis]

LimoFam5, when I first read your post, my first thought was for your friend to rent the points out, which other replies have suggested already. After reading through the other replies, I agree that trying to help a friend with financial trouble could sometimes jeopardize your friendship. It may be best to help provide moral support, and help with any administrative work involved if your friend decides to go the rental route. (Admin work such as posting a rental ad on her behalf, help with understanding the contract(s) if your friend wants to other rental service such as David's, etc.)