DVC Membership Dilemma

[MichiganMouse1967]

Without getting into too much detail, I've come to the heart-breaking realization that I am no longer able to afford my DVC Membership Choices need to be made and DVC is a luxury, not a necessity. The way I see it, Disney and DVC will always be there for us when we can afford it.

So, what to do with my membership...
I financed my purchase through Disney. I haven't called member accounting yet to discuss my situation, but I plan to do so by the end of the week. Until then, I'd like to get some feedback/opinions. Should I just "walk away" and let my membership go back to Disney, or should I try to sell it via the resale market? I'm currently 1 month behind on my loan payments and annual dues (will be 2 months at the end of this month). I'm hoping to make some kind of a payment before the end of this month, but I definitely won't have the full past due amounts. Unless I hit the lottery, I'll always be behind on my payments and dues. It seems like it would be too easy to just call DVC and "walk away", but if I list it for resale, it's likely I won't sell it for what I owe. What are the consequences of either option? What would you do?

Thanks for any advice you can share.

 

[Disneypubgal]

I would call member accounting to discuss options...

 

[KAT4DISNEY]

I'd also call a broker to discuss selling just so you investigate all the options.

 

[dmoore22]

I would call member accounting to discuss options...

Ditto Not knowing specifics, and not asking specifics, would renting out your points help make the payments? I'm truly sorry to read you are in such dire straits.

 

[Orsino]

If you sell it, won't you then have money to pay the late dues and pay off the loan? You know, from the sale itself. I'm not seeing any reason why you can't sell it. In fact, that looks like the most prudent option.

 

[MichiganMouse1967]

If you sell it, won't you then have money to pay the late dues and pay off the loan? You know, from the sale itself. I'm not seeing any reason why you can't sell it. In fact, that looks like the most prudent option.

Yes, selling it will help pay the late dues and the loan, but not in it's entirety since the broker gets a percentage of the sale as well. I don't think I could sell it very easily if the price is set too high to cover the broker's commision, late dues and loan payoff.

would renting out your points help make the payments?

I considered renting out the points, but I believe my membership activities would be restricted until dues / loan payments are brought current.

 

[Deb & Bill]

...I considered renting out the points, but I believe my membership activities would be restricted until dues / loan payments are brought current.

Exactly. If your payments aren't current, you can't make a reservation. If you can't make a reservation, you can't rent out the reservation.

 

[ClarabelleCow]

I'm kind of in the same boat, well just that I am thinking of selling a bunch of contracts and just keeping the main one, kids are odler 17 and 10, and we just dont get to go as much. What if I can't find the deeds on the small contracts, I have four total, thinking of selling three of them. Can I sell without the actual deed?

 

[dmoore22]

I considered renting out the points, but I believe my membership activities would be restricted until dues / loan payments are brought current.

This escaped my mind. What a terrible vicious cycle. Hopefully cool heads at member accounting will prevail so that it can be a win/win situation for all involved. Fingers are crossed that all will turn out well and you end up with that winning lottery ticket.

 

[drusba]

Call and discuss options with Disney. The problem with trying to sell it through a broker is that the sale cannot be closed without paying off all amounts due Disney (mortgage and dues) and if you sell for less than what it would take to cover those and broker's commission, you would have make up the difference in cash at time of closing.

 

[MichiganMouse1967]

ClaraBelle - not sure if you can sell a contract without the actual deed. Hopefully, someone will chime in with an answer for you.

Dmoore22 - my fingers are crossed - wouldn't it be wonderful to buy a winning lottery ticket? I do have faith that everything will work out, though.

 

[MichiganMouse1967]

Call and discuss options with Disney. The problem with trying to sell it through a broker is that the sale cannot be closed without paying off all amounts due Disney (mortgage and dues) and if you sell for less than what it would take to cover those and broker's commission, you would have make up the difference in cash at time of closing.

Thanks for pointing that out. I will be calling Disney in the next day or two to find out what can be done.

 

[Dean]

It sounds likely you owe more than it's worth. If so, you may want to talk to DVC about a deedback in lieu of foreclosure. In this situation they'd just take it back. While technically it could hurt your credit, it generally doesn't with DVC because they tend not to report such items from what I've heard. Either way it'll be the best option if it's not worth enough to sell, pay it off AND pay a resale commission.

 

[YourEveryDayAdam]

I'm hoping to make some kind of a payment before the end of this month, but I definitely won't have the full past due amounts.

My recommendation is, if you've decided you can no longer afford DVC and are going to give it back, don't send any more payments to Disney for anything. To me my number one priority would be to make sure the me and my family have a place to live and food to eat. It makes absolutely no sense to send perfectly good money that can be used to pay for rent and food after bad money that won't do you a lick of good either way.

I'd stop all payments, and call member accounting. Be completely honest with them and ask them what your options are. If you can't afford anything they might have to offer that will let you keep your DVC and you have to give it back, then just go ahead and do that without sending Disney another penny.

 

[MichiganMouse1967]

It sounds likely you owe more than it's worth. If so, you may want to talk to DVC about a deedback in lieu of foreclosure. In this situation they'd just take it back. While technically it could hurt your credit, it generally doesn't with DVC because they tend not to report such items from what I've heard. Either way it'll be the best option if it's not worth enough to sell, pay it off AND pay a resale commission.

I would need to get $68 per point to payoff just the loan. Looking at the current resale listings, that's about the average price - not enough to cover the loan, annual dues and commission. Like you suggested, discussing a deed in lieu of foreclosure may be my best option.

My recommendation is, if you've decided you can no longer afford DVC and are going to give it back, don't send any more payments to Disney for anything. To me my number one priority would be to make sure the me and my family have a place to live and food to eat. It makes absolutely no sense to send perfectly good money that can be used to pay for rent and food after bad money that won't do you a lick of good either way.
I'd stop all payments, and call member accounting. Be completely honest with them and ask them what your options are. If you can't afford anything they might have to offer that will let you keep your DVC and you have to give it back, then just go ahead and do that without sending Disney another penny.

Yes, my number one priority is to provide for my family. That's why I'm making this decision. I'll see what Disney has to say. Stay tuned...

 

[Crystal_27]

I think that you should contact DVC and find out what your options are so you can make the most informed decision as possible. My guess is that DVC has some sort of program that allows you to give your contract back to them, although, if there is a deficiency, you may be required to pay for that. You may also want to contact The Timeshare Store (or another reseller) to find out if you can even list a contract that is in default. Either way, best of luck to you in what is I'm sure a very difficult time for you.

 

[tagall4]

Hi Michigan, Just reading through your thread. My dh lost his job early last year and we thought to sell also. Fortunately we were current on our payments and were able to rent points for profit instead. Is there any way you could make a loan for what you owe on the two months (or possibly just the one still). then you could secure a rental fast at $9pp and make some money back. Don't know how many points you have, but we were able to rent 300, 2 times over and are debating whether to do next year's use year now as well. Depending on your use years and what's available...it's just a thought.

Hope things improve for you. they did for us, new year-new job

 

[littlestar]

I'm kind of in the same boat, well just that I am thinking of selling a bunch of contracts and just keeping the main one, kids are odler 17 and 10, and we just dont get to go as much. What if I can't find the deeds on the small contracts, I have four total, thinking of selling three of them. Can I sell without the actual deed?

You could find a copy of your deed on the Orange County site and print it off. For that matter, I would imagine most brokers could find it for you, too. We only have one DVC contract left. We sold a good part of our DVC points and have replaced it with resale Wyndham points deeded at a resort close to home. (As a matter a fact, I'm going to my home resort for a long weekend visit today).

To the original poster, good luck. The economy still stinks as far as jobs. It seems like every other week I hear of somebody else that has been laid off/downsized. I'll say a prayer for you and your family.

 

[marynvince]

My recommendation is, if you've decided you can no longer afford DVC and are going to give it back, don't send any more payments to Disney for anything. To me my number one priority would be to make sure the me and my family have a place to live and food to eat. It makes absolutely no sense to send perfectly good money that can be used to pay for rent and food after bad money that won't do you a lick of good either way.

I'd stop all payments, and call member accounting. Be completely honest with them and ask them what your options are. If you can't afford anything they might have to offer that will let you keep your DVC and you have to give it back, then just go ahead and do that without sending Disney another penny.

Making purchases that stretch someone financially affects all of us, directly or indirectly. Just walking away from obligation and responsibility can not and should not be commended. You have used points and therefore rooms at DVC and have not fully paid for the right to do so. This affects members who are in good standing.

What happens if Disney allows everyone that signs up to use their initial points, perhaps borrowed points and then simply walk away having received a "value" vacation.

To the OP, you signed an obligation to pay and I feel you need to make an effort to do so, walking away should not be an option.

 

[Dan Murfman]

Making purchases that stretch someone financially affects all of us, directly or indirectly. Just walking away from obligation and responsibility can not and should not be commended. You have used points and therefore rooms at DVC and have not fully paid for the right to do so. This affects members who are in good standing.

What happens if Disney allows everyone that signs up to use their initial points, perhaps borrowed points and then simply walk away having received a "value" vacation.

To the OP, you signed an obligation to pay and I feel you need to make an effort to do so, walking away should not be an option.

How's the view from that high horse?