Can I cancel?

[SamanthaF]

Hello,

This is my first time on these boards - so apologies if I have posted in the wrong place.

We purchased an ownership interest in the Grand Californian in 2009. We went there last year and it is very nice! My question is, is it possible to cancel our contract? We did take out a loan via DVC to purchase this, and so still have 8 years outstanding. I see that our interest can be resold - but how does that work with outstanding monies due?

I am just exploring possibilities at this stage, as my husband wants to cancel and I don't. So I'm trying to give him reasons not to cancel. Lol!

Any advice is much appreciated

 

[DMKEDM]

No, you can't "cancel."

You can try to sell your contract--there's a pretty active resale market (see these boards' sponsor, the Timeshare Store, site for some details)...

Typically, price per point for resale is substantially lower than price per point paid if you bought through Disney...plus, there are selling costs (e.g., sales commission of, as I understand it, about 10%)...you'll have to repay your entire loan in order to sell, too--but you can use sales proceeds to do that...but if you don't find a buyer/price that covers your loan plus your selling costs, you'll have to bring the shortfall to the closing w/you in order to sell.

The Grand Californian DVC seems to be holding up, price-wise, better than most DVCs--I understand that Disney has a waiting list for buyers (at direct prices) for this sold-out resort, so you may be able to get a pretty decent resale price...but the Timeshare Store (or another reseller) can guide you on pricing.

But, if you bought in 2009, and financed for 10 years, chances are you won't make any money--and quite likely will lose some--selling "now."

Good luck!

 

[SamanthaF]

Many thanks for your reply. I have been having a look online and it seems to be much more complicated than my husband thinks!

I dodn't think that we would be able to just cancel - as I guess it is very similar in having a mortgage.

I will have a look at The Timeshare Store to see what similar interests are selling at. I will also dig out the paperwork to see what price per point we paid - which was direct from Disney.

Many thanks

 

[disneynutz]

As a last resort, if the sale put you in the red, you might want to contact Disney and see if they will let you walk away from your loan. They take back your contract and excuse your loan.

Bill

 

[Dean]

As a last resort, if the sale put you in the red, you might want to contact Disney and see if they will let you walk away from your loan. They take back your contract and excuse your loan.

Bill

A deedback is technically a voluntary foreclosure though some have said DVD does not report these to the credit reporting agencies.

 

[cel_disney]

You could rent your points out when you cant use them and recoup some of the financial aspects of it!

Check out the rent/trade board and the sponser David is another great option so you dont have to do the legwork!

 

[bumbershoot]

I dodn't think that we would be able to just cancel - as I guess it is very similar in having a mortgage.

Absolutely. In fact the paperwork that we had to have notarized for financing actually had the word "mortgage" on it. (which is why on-their-way-out WaMu wouldn't even TOUCH that piece of paper when we went in there to find a notary, we had to go over to a Wells Fargo branch where we didn't even bank, to get the signature and stamp)

 

[OrangeCountyCommuter]

A deedback is technically a voluntary foreclosure though some have said DVD does not report these to the credit reporting agencies.

Do they report the loan forgiveness as income on a 1099? I know that some people were a little shocked last year when they discovered they owed taxes on the loan forgiveness they got when they short sold their homes......Wonder if walking away from a Disney loan has the same tax consideration?

 

[Disney Spaz]

Do they report the loan forgiveness as income on a 1099?

Yes they do and you have to report it as income unless you filed for bankruptcy as well.

 

[SamanthaF]

Many thanks for the replies.

Well, it looks like we will not be cancelling

Hubby has agreed to keep it on, and we are planning our trip for next May to WDW. Now just to get my head around the different resorts. Just as a quickie - we currently have 259 points (from 2010 and 2011) and are looking to go for 2 weeks. Where would you guys recommend for a couple with a 14 month old DD. Many thanks

 

[MamaDrama]

If I understand things correctly, your 2010 pts will expire before you would be traveling in May 2012 but you would have use of your 2011, 2012, and 2013 by banking and borrowing.

 

[SamanthaF]

MamaDrama - we have 79 points from 2010 and 180 points from 2011. I thought I could use those points by making my reservation in Dec this year, before the 79 points expire in Jan 2012 - is that right? Sorry, I'm a complete newbie!!

 

[MamaDrama]

MamaDrama - we have 79 points from 2010 and 180 points from 2011. I thought I could use those points by making my reservation in Dec this year, before the 79 points expire in Jan 2012 - is that right? Sorry, I'm a complete newbie!!

I am new at this too, but from my understanding your points availability doesn't have to do with when you make your reservations, but when you travel. So with a 2012 travel plan, you can't use 2012 pts. Also, depending on your use year, you will probably have to make sure you bank your 2011 pts by a certain date or you will lose them too.

So bottom line, I believe you have to use those 79 2010 points before the end of 2011.

Please someone correct me if I am wrong!!

 

[KAT4DISNEY]

MamaDrama - we have 79 points from 2010 and 180 points from 2011. I thought I could use those points by making my reservation in Dec this year, before the 79 points expire in Jan 2012 - is that right? Sorry, I'm a complete newbie!!

I don't think you mentioned what your UY is and that would make a difference. If it is a June - Dec UY then 2010 points that were banked into your 2011 UY could be used for a May 2012 trip. If your UY is Feb, Mar or April then those 2010 points would expire prior to your trip.

As the PP said it doesn't matter when you book, just that the points are valid for the time you are going to stay. However, if you haven't banked your 2010 points it's already too late for all of the UY's. Dec had to be banked by July 31st and all other UY's prior to that. MS has been known to make an exception if you forget to bank but it usually is only given once.

 

[dbs1228]

If you are unable to use your 2010 you may want to try to rent them out, you should be able to get about 10.00 pp or 790.00! As far as places to stay I think ALL wdw DVC have there benefits depending what you are looking for, whether you have a car, how much park time/what parks you want. I love BLT, BWV, BCV and VWL all for locations to different parks. AKV is the most peaceful resort and love the animals and CM. OKW has the biggest rooms and is very laid back to me. SSR grounds are beautiful and close to down town Disney. Good luck

 

[Sandisw]

MamaDrama - we have 79 points from 2010 and 180 points from 2011. I thought I could use those points by making my reservation in Dec this year, before the 79 points expire in Jan 2012 - is that right? Sorry, I'm a complete newbie!!

I am going to assume you have a Feb UY since you mention the points expiring in January 2012.

As mentioned, you have to travel on the points by their expiration date. So, if you do have a Feb UY, then your banked 2010 UY points, would now be valid for travel during your 2011 UY--which would be Feb 1st, 2011 through January 31st, 2012.

If you have a different UY, then the situation might be different.