Estoppel Question...*Update

[Coamfo]

We have an accepted contract that passed ROFR 12/28. Our contract said closing on or before Feb 29 because the sellers had some things to work out. They have 88 banked 2014 points, all 250 points from 2015 and so forward. The use year is June so I asked the realtor to have the owners bank the 2015 points before the deadline of Jan 31. Fine right?

Well....the realtor called me back and let me know that she got permission from the sellers to disclose their situation with us. Turns out they are $4,000 behind so Disney will not let them bank the points. So we all got everything around and requested to close quickly since our contract said on OR BEFORE Feb 29. According to the title company, Disney is refusing to provide Estoppels until 10 days prior to closing. They are arguing that our contract says "or before"...but I'm not holding my breath. I knew going into this it would be a long process, but I didn't realize we could lose the points that made us agree to a higher purchase price due to the sellers being behind on payments.

My question is; Is there anything else we can do? Can a seller request an Estoppel for their own records? Is there anything at all we can do to save our points after Jan 31? We don't plan to go until Dec. Thanks so much!

 

[pangyal]

That's interesting. Usually they provide estoppel a couple of weeks at the latest after the contract passes ROFR.

I would honestly suggest just renting out those points once you close in order to mitigate the sting of the higher price of the contract and leave it at that.

 

[disneynutz]

IMO the broker should have vetted the sellers when they listed, if they don't come up with the money, Disney can foreclose even if you are in the process of buying.

Bill

 

[Coamfo]

I guess we will have to rent them, I'm just hoping they rent in time. If we close at the end of Feb and Disney takes 2-3 weeks to get us out member packet, that only leaves us 2 1/2 months. I will hate if we lose them.

 

[Coamfo]

IMO the broker should have vetted the sellers when they listed, if they don't come up with the money, Disney can foreclose even if you are in the process of buying.

Bill

With the new information about possibly losing the points, if Disney forecloses I won't be too upset. I will just start over and pay less per point. There are so many for sale right now I'm confident I'll find something.

 

[Coamfo]

Update-Disney sent the closing company an email last Wed that states they have changed their policy. Estoppels will only be issued 10-14 days prior to closing. Now the title company is arguing that our contract says "or before" so we will see...

 

[hayesdvc]

My contract was submitted to Accounting on 12/30 for estoppel. As of this writing, *** has only received estoppel information back one time since January 1st (1/12); the latest contract where the estoppel information was received was submitted on 12/18. I can only assume they are running several weeks behind due to the time of year (maintenance fees). I am still dreaming of a 2016 DVC trip.

 

[Coamfo]

Me too...but I'll be ok with a Jan 17 trip too.

 

[KAT4DISNEY]

My contract was submitted to Accounting on 12/30 for estoppel. As of this writing, *** has only received estoppel information back one time since January 1st (1/12); the latest contract where the estoppel information was received was submitted on 12/18. I can only assume they are running several weeks behind due to the time of year (maintenance fees). I am still dreaming of a 2016 DVC trip.

I don't know that Accounting does anything with the estoppels. Probably not. And they have not run behind in other years.

 

[hayesdvc]

I don't know that Accounting does anything with the estoppels. Probably not. And they have not run behind in other years.

Accounting would be the department that does estoppels. Their area would have the information regarding whether fess are current, etc.

 

[hayesdvc]

RUMOR:

Has any heard that Disney's "new" policy is to provide estoppel information no sooner than 10-14 days prior to the closing date of the contract.

Has anyone else heard this?

 

[KAT4DISNEY]

Accounting would be the department that does estoppels. Their area would have the information regarding whether fess are current, etc.

Yes, I suppose they would be accounting, but are unlikely to be the same people handling accounts receivable. I'd still really expected to be more under administration though. One would not have to work in accounting just to be able to see it dues and mortgage payments were up-to-date. They might have a system where they have to contact accounting but this still seems like it would be a different process than just accounting.

 

[Coamfo]

We got our Estoppel today! Closing documents and check being overnighted tomorrow. So excited!

 

[hayesdvc]

We got our Estoppel today! Closing documents and check being overnighted tomorrow. So excited!

When was your contract sent to Disney for the estoppel?

 

[Coamfo]

When was your contract sent to Disney for the estoppel?

We passed ROFR Dec 28 and they sent to Disney for Estoppel Jan 5th. I'm not sure why my realtor was told that they weren't sending them until 10-14 days prior to closing contract date.

 

[hayesdvc]

We passed ROFR Dec 28 and they sent to Disney for Estoppel Jan 5th. I'm not sure why my realtor was told that they weren't sending them until 10-14 days prior to closing contract date.

What title company is being used for your contract ?

 

[Coamfo]

Duncan Title, but I think it's my realtor getting it done. She's been calling multiple times a day and pushing them to get it done asap so we don't lose our points.

 

[hayesdvc]

Duncan Title, but I think it's my realtor getting it done. She's been calling multiple times a day and pushing them to get it done asap so we don't lose our points.

Who was your realtor calling ?

 

[supersnoop]

We got our Estoppel today! Closing documents and check being overnighted tomorrow. So excited!

Unless your seller is as anxious as you are, there's very little reason to send the check overnight. For all four of my contracts, I mailed everything regular first-class mail; just a stamp, and it always got there before the seller's documents.

 

[hayesdvc]

Unless your seller is as anxious as you are, there's very little reason to send the check overnight. For all four of my contracts, I mailed everything regular first-class mail; just a stamp, and it always got there before the seller's documents.

I have seen in many threads where the seller is normally the delay in the closing process if there are any delays. I guess something again unique to purchasing Disney resale where the person(s) actually getting the money appears in some situations is in no hurry for the payment for the asset they put up for sale.