Could an owner sell a contract back directly to DVC?

[DVCJEN]

Is it possible for a a DVC owner to sell their DVC ownership back to DVC? I see many people sell via resale agents but I was wondering if you could in essence just "walk away" from your contract (if you had financing from DVC that is) Anyone know the answer to that one?

 

[Chuck S]

Not to my knowledge, contracts have to first receive an offer, either through a broker/reseller or independant party. The contract will then be submitted to DVC for approval. If DVC thinks the price is too low, they have the right to purchase the contract with the same agreement as the person who made the offer.

 

[LIFERBABE]

No, DVC does not buy any contracts directly from members.

If a member walks away, they would be in default either on the loans or dues, or both.

The fastest way to walk away, would be to list about $5 lower than comparable contracts with a resaler and then accept the first offer that comes in. Most likely DVC will excercise ROFR or the buyer gets a great deal. Either way, the contract sells.

 

[JimMIA]

Is it possible for a a DVC owner to sell their DVC ownership back to DVC? I see many people sell via resale agents but I was wondering if you could in essence just "walk away" from your contract (if you had financing from DVC that is) Anyone know the answer to that one?

I'm sure there is no mechanism for DVC buying back the contract, but I suppose you could "walk away" from your loan. In time, DVC would take the contract back.

However, they'd have to do so by foreclosing on the loan, and that would ruin your credit. In addition, you would probably be liable for any costs DVC incurred in doing the foreclosure, as well as any deficiency balance on the loan.

If you were in a situation where your really needed to be relieved of the obligation, I think you'd be wiser to bite the bullet, sell via resale, and pay the commission. In the long run -- even though you'd probably take a loss -- you'd lose less that way than if you trashed your credit by defaulting on a loan.

 

[Anewman]

Remember if you list low in order to get ROFR, any balance(if any) left from the amount owed after the sale would still be due.

So say you just purchased and financed 20k and you sell at 18k regardless of ROFR you still owe 20k so those remaining 2k must be paid by you.

 

[DVCJEN]

Thanks for the input. I am not in any way thinking of defaulting on a loan. I was just trying to figure out if I choose to get rid of our add on if DVC would just take it back (since the addon is very new and financed) even up. I would never consider defaulting in any manner. I have just been thinking that the recent addition was, perhaps, an impulse buy that may be more points than we will need in the long run. Thanks for your help!

 

[Ed T]

It is my understanding if you contact DVC to sell your contract they will refer you to a resaler which I believe is GMAC. They are not referring people to A Timeshare Broker of the Timeshare Store. They have a contract with GMAC I understand. GMAC does list some DVC properties on ebay. I have used A Timeshare Broker.

 

[ACDSNY]

I have just been thinking that the recent addition was, perhaps, an impulse buy that may be more points than we will need in the long run.

We just added on too, but I had the points broken up into two 60 point contracts just for this reason. If we find we don't need the points later on we could sell one of the smaller contracts. It will also make it easier down the road if we decide to split our points between our two adult children.