Closing with Banked Points Near UY

[Disney Fanatic]

Hello

I thought I would post this question as I think it was maybe getting lost in my banked points question.

October UY

Banked 2003 points
2004 Points that have not been banked

If we were looking to buy a contract such as this one, is this too close to take advantage of those banked points.

It is my understanding from some nice people who posted that all these points must be used by Sept 31,05.

Is there any way at all to extend these points or use them so they are not lost.

I am afraid the closing will take too long and there will be no chance to use the points and no chance to sell.

Thanks for any advice.

 

[Cruelladeville]

There is no way to extend the points. If you purchased this contract, you need to get the current points banked or else they will be lost, but the 2003 would be lost if you close late. Now, you could talk to the broker to see if perhaps you could agree to a price, put down a deposit, and use the points before they expire, but I do think you might want to pass this by. You need more time to get the paperwork finished. I recently closed on a contract, and everything went FAST, but most people seem to get bogged down and then it would take about 2 or3 months to close. We wrote our deposit check on 5/21 and the points were ours to use by 6/30, but this is rather unusual.

 

[Disney Fanatic]

There is no way to extend the points. If you purchased this contract, you need to get the current points banked or else they will be lost, but the 2003 would be lost if you close late. Now, you could talk to the broker to see if perhaps you could agree to a price, put down a deposit, and use the points before they expire, but I do think you might want to pass this by. You need more time to get the paperwork finished. I recently closed on a contract, and everything went FAST, but most people seem to get bogged down and then it would take about 2 or3 months to close. We wrote our deposit check on 5/21 and the points were ours to use by 6/30, but this is rather unusual.

thanks for the info

Can I ask who you used for your closing company?

Did you go through a broker or was it a private sale?

Any advise is appreciated.

 

[ColoradoBelle1]

First you have to pass ROFR...and no one can even guess how long that might take.
Maybe you could offer to 'rent' the 2003 points from the seller who would only have to call MS to check availability for you. The seller could bank someof the 2004 points (maybe 25%). THe seller could transfer out ponts to a DVC owner and maybe if you provided the buyer (from our board here) the money could be reimbursed to you if the contract closed. Without all those points, you might have an easier time passing ROFR too.

 

[dianeschlicht]

I agree that all those backed up points will make the contract attractive to Disney to excersize ROFR. You could (if you act very quickly) be able to deposit those points in II for a future exchange if you get closed and in the system before the end of September. That will be a lot of points to put into II, and would get you a nice exchange. It would be better than losing all of them. Disney can take up to 30 days for ROFR though, so if you are set on this one, I wouldn't wait long.

 

[Disney Fanatic]

Thanks for all the great advice.

Just wonder if when the seller deposits into II (because I have no book to tell me how this works) do they have to specify what they want at that time?

Can they just deposit the points and then give we give dates after the contract closes????

Also, if they deposit the points into II, how would I make sure that when the contract closes, that we will be able to take over these points?

Would the closing company handle this? We are looking at using Timeshare closing services.

 

[erikthewise]

Points soon to expire should be considered worthless when evaluating a resale contract. Make sure you are not paying extra for them. If you manage to use them, great, but the burden should not be on you to do so.

 

[dianeschlicht]

Thanks for all the great advice.

Just wonder if when the seller deposits into II (because I have no book to tell me how this works) do they have to specify what they want at that time?

Can they just deposit the points and then give we give dates after the contract closes????

Also, if they deposit the points into II, how would I make sure that when the contract closes, that we will be able to take over these points?

Would the closing company handle this? We are looking at using Timeshare closing services.

You don't have to choose where you want to go or when at the time the points are deposited into II. I wouldn't assume that having the seller deposit into II is an option you can take without asking someone official at DVC. I know that when a seller makes reservations, they are canceled after a sale takes place. I'm not sure if that is true of II deposits too or not. At any rate, if you close in time to deposit them yourself before the 9/31 deadline, you will be fine. Time is of the essence here, because your offer has to pass ROFR, so don't make it TOO low. Disney like to take back contracts with lots of points banked or useable. Not sure these are going to matter on that though, since they aren't available for long.

 

[robinb]

How many points are we talking about?

Are you buying through a resale agent? If so, you'll need to ask them the questions about banking points into II and closing. I know that all existing DVC reservations are cancelled at closing, but I am not sure about non-DVC or II reservations/banking.

 

[Disney Fanatic]

There are about 300 points that are going to expire.

I cannot imagine losing all those points when someone could use them.

I have since found out that Disney will cancel the II deposit upon closing.

I am going to call tomorrow to see how we can salvage these points.

 

[robinb]

I am going to call tomorrow to see how we can salvage these points.

There is a special one-time only dispensation from DVC where you can "save" points from going *poof*. Either way, I think you have to be in control of the points to request it.

I would ask the seller to bank the 25% that they still can. Then, just cross your fingers that you will close in time to use the points or bank them in II. My guess is, if this resale goes through, you will close in time. I recall the whole process taking less than 2 months from start to finish. Once you have the points you can bank them into II or use them for a few days in a nearby Concierge Collection hotel.

Good luck!

 

[CarolMN]

..(snip)...Once you have the points you can bank them into II or use them for a few days in a nearby Concierge Collection hotel.

Good luck!

Can't use them for a Conceirge Collection Hotel. 60 day rule applies to those points beginning August 1, 2005. OP couldn't possibly close before then. Don't recall hearing that an exception was ever made to 60 day rule.

Best wishes -

 

[Disney Fanatic]

Just wanted to double check again that there is not time limit on depositing into II.

If we close mid Sept, would 2 weeks be enough to deposit these points?

Do you think I could sell these points last minute?

Thanks

 

[dizplanner]

I seriously doubt if you could sell the points. The likelyhood of finding someone in the few weeks you would have AND there being availability at such short notice is small. You might get lucky, but I wouldn't count on it - and even if you could, you would probably have to rent at a discount.

I would get the owner to bank the 25% they still can this month. Then I, after closing, but before the points expire, would call MS and explain you just bought the contract resale and see if they will bank the remaining 2004 points (they may say yes) and do the II banking with the 2003 pionts if allowed (may need to use a few of the 2004 points to get enough points for II). I would pay nothing for the 2003 and 2004 points that will be expiring - no maintenance fees - no increase in point cost and frankly, I probably wouldn't even give them anything for the banked 2004 points due to all the hassle of asking them to bank the points (why didn't they bank sooner - at least the 50% they could have done a couple of weeks ago?) When pricing, pretend the 2003 and 2004 points are not there. If everything works out, you get a bonus. If not, you are not out anything. If the seller objects to no value on the 2003/2004 points, tell them to go ahead and wait - they will expire in a couple of months and they will have lost a quick sell for nothing.