financing thru Disney, end contract due to divorce

[dznyacct]

Hi all you DVC experts . Sadly, my nephew has recently divorced . He and his wife bought into DVC ~ 2 years ago, financing through Disney. Neither of them wants to keep the contract. Does anyone know how Disney handles something like this when they are the lender? My nephew is currently using a timeshare resale company, but no bites so far. Thanks for any advice or experience that you can offer .

 

[disneynutz]

Depends on a lot of legal factors. Normally the asset is sold and the profit or loss after the loan pay off is split 50/50 between the parties.

Bill

 

[z28wiz]

Since there is a loan it would have to paid off you cant just take one person off the loan. If there was no loan it could be titled to either party. But like Bill stated thats pretty much their only option besides making an agreement with switching years for vacations. Husband goes in 2010, wife in 2011 and so on. But from what you stated they neither want a part of it anymore.

 

[Crystal_27]

Your nephew needs to call MS. We can sit here and speculate all day long but that's all it is - - pure speculation. With that said, I believe that Disney has a process by which it will repurchase an owner's points who is no longer able or willing to continue the contract. After Disney buys back the points, if the owner still owes on the contract (and, if they only made the minimum payments for the 2 years they owned they probably still would), Disney can choose to forgive that remaining amount or seek repayment of the amounts due.

Divorce is always so difficult, and I wish your family the best.

 

[dznyacct]

Thanks everyone . I'll pass the information on to my nephew. I don't know why he didn't contact Disney and see what they could do .

 

[irishpride]

Your nephew and/ or his wife should ask their respective attorneys? Asking Disney may not be the course of action. I am sure MS are not legal experts and would only be looking out for Disney's best interest and not your family's. Normally the asset is sold and the profit or loss after the loan pay off is split 50/50 between the parties or you could refinance the loan taking one name off making only one party responsible for the loan until it sold. I am sure there would be other financial agreements needed to be drawn up if the refinance route is taken. Talk to an attorney.

 

[CarolAnnC]

Hi all you DVC experts . Sadly, my nephew has recently divorced . He and his wife bought into DVC ~ 2 years ago, financing through Disney. Neither of them wants to keep the contract. Does anyone know how Disney handles something like this when they are the lender? My nephew is currently using a timeshare resale company, but no bites so far. Thanks for any advice or experience that you can offer .

Since their divorce has gone through, perhaps it was already stipulated in the settlement how it was to be dealt with? Definitely one for the attorneys, I agree.

 

[dznyacct]

I believe that their divorce stated that it was to be sold and the profit/loss would be split 50/50. My primary question was would Disney buy back the contract from them (since it was financed through them), rather than him selling it through a timeshare resale company and then paying off the loan to DVC with the proceeds. Just trying to help him out through a rough time . Thanks to everyone for your opinions/advice .

 

[jlewisinsyr]

Disney will most likely buy it back, but don't expect a great repurchase price, I've heard low $50s being offered from Disney.

 

[CarolAnnC]

A Disney buyback will be the least desirable of all the options. They will offer a very low price (as stated above) and the remaining loan will be a debt still due and payable in full. Since they only purchased two years ago there is possibly a large loan left.

I would list it with multiple resellers and price it reasonably, including offering to pay closing costs for example. Selling it via resale will be a far better deal than turning it back to Disney for sure.

Best wishes to them..

 

[PBB]

Have your nephew check the financing documents by DVC or ask MS whether or not the loan is assumable.

When we purchased our OKW Points 11 years ago, we purchased the package from a couple that was going through a divorce. The financing was assumable which made it easier to sell. We still had to qualify with Disney but we were able to get resale points with DVC financing which made life much easier than us going to other types of financing to purchase a resale. In my opinion, this made the package more valuable to me as a purchaser.

The said part of purchasing the package from a divorced couple was the broker told us that this purchase was their last ditch effort to save their marriage. Kind of sad..........

 

[Jason@dvcstore]

Hi all you DVC experts . Sadly, my nephew has recently divorced . He and his wife bought into DVC ~ 2 years ago, financing through Disney. Neither of them wants to keep the contract. Does anyone know how Disney handles something like this when they are the lender? My nephew is currently using a timeshare resale company, but no bites so far. Thanks for any advice or experience that you can offer .

I am sorry to hear about your nephew. Your nephew might already have his listing with The Timeshare Store, Inc.® but if not I would encourage him to list with us as well. As long as the other company has an open listing it would not be a problem. This would give them more exposure. Hopefully, their payoff is less then what they will clear after commissions and fees. Feel free to have him email us at sales@dvcstore.com. Thanks and best of luck to your nephew.

Jason