Friend wants me to buy her out of her DVC contract

[LisaL]

I appreciate all the kind responses and input. We always want to do things the right way. You guys are great.

 

[LisaL]

I really appreciate everyone's responses. My friend only owes $7300 on 200 points and wanted me to buy her out for only the balance. I just don't think there's anyway it would get approved. And as we spoke more, I learned that she's not just wanting out, she's in financial trouble. So, I'm helping her sell it so that she can pull her equity out and get a fresh start. And who knows, maybe we will have an opportunity to repurchase in the future. Blessings and thanks to all.

 

[LisaL]

Congrats, kindred spirit! We got married in 1999 and couldn't get pregnant so we adopted a girl from Seoul in May 2011. Then, immediately after we got home from Korea we got pregnant. Our boy was born in Feb 2012.

I share your joy upon finding out you were pregnant. I think infertility isn't something people can really relate to unless they've struggled with it.

That's amazing!

 

[suebeelin]

I really appreciate everyone's responses. My friend only owes $7300 on 200 points and wanted me to buy her out for only the balance. I just don't think there's anyway it would get approved. And as we spoke more, I learned that she's not just wanting out, she's in financial trouble. So, I'm helping her sell it so that she can pull her equity out and get a fresh start. And who knows, maybe we will have an opportunity to repurchase in the future. Blessings and thanks to all.

You're a very good friend and dong the right thing. Hopefully she has a resort that's vied for and she will get a nice chunk of change.

In the meantime, rent out her points and go to disney!!

 

[DisneyRegulars]

I really appreciate everyone's responses. My friend only owes $7300 on 200 points and wanted me to buy her out for only the balance. I just don't think there's anyway it would get approved. And as we spoke more, I learned that she's not just wanting out, she's in financial trouble. So, I'm helping her sell it so that she can pull her equity out and get a fresh start. And who knows, maybe we will have an opportunity to repurchase in the future. Blessings and thanks to all.

If your friend is in financial trouble it sounds like what would be best for her is to sell her whole contract on the resale market. Even a stripped 200 point contract at almost all resorts should go for well above $7300.

 

[jerseyduke]

Hope it all works out for your friend!

In a way this is a positive statement about a DVC membership.

There are not many luxury items you can buy that maintain their value so well.

 

[Dean]

Why is it that there are plenty of things in this world where we can make a deal between family members or close friends on items of substantial value - (ie selling a house, a car, camper, boat, etc) and not have to worry about someone else (disney) swooping in and taking it from us. I understand that it is part of the timeshare world and that is how they operate - not just Disney. I think if they are close friends then they can hopefully handle the deal which makes it a fair and agreeable deal for both parties.

True but in this case we don't really own it due to the ROFR. DVC has options and to set up things that are dishonest or illegal to bypass those options would be a problem. Things like agreeing to one price but putting another on the paperwork is both dishonest AND illegal as sometimes is done. Plus in this case to take it for less than market value would also be taking advantage of the friend.

I would have your friend gift the property to you at $0, and then use a closing service that is familiar with DVC. You would have to pay off the remaining balance at closing, but then it is yours and Disney should let ROFR pass since it is a gift. But I am not a lawyer and I don't play one on TV.

If you want to finance it yourself, you could also do that at closing.

If the deed is tied to a mortgage, DVC won't change the paperwork while that's in place in all likelihood. Plus they could still take it under the terms. Actually in this scenario they could take it at $0 and the seller still be responsible for the loan. Plus most loans would have a clause they they'd be violating to sell it. Also, if they declared bankruptcy or went on public assistance, there is normally a look back period where they could go after the contract even if it'd been transferred.

In this situation there's really no way to help the party sell and the OP to get a lower than ROFR price deal, at least not ethically or legally. The only real, reasonable and appropriate savings is the closing costs above what one could do it for themselves and the commissions. One could have buyer paying closing and then do it privately, that'd save some. Unless the buyer were a broker that could qualify for the commissions I don't see any other legislative savings. IMO I'd just help the friend sell and then buy independently.

 

[JimMIA]

I'm happy to see that OP has figured out the best path for she and her friend. I wish them well and have confidence that, with friends like OP, things will work out. Times like this are when we need true friends like the OP.

However...I think some of the rest of us should be more cautious about "jailhouse lawyer" things we suggest here.

My objections to those types of posts is not about "right," or "fair," or morality. I'm concerned with the law, but much more about the potential impact on the unsuspecting DIS member who follows horrific advice such has been posted on this thread.

Here's the law: Making a "material misrepresentation" of the price of a real estate transaction is fraud. It might be criminal fraud in some cases, but at a minimum, it is civil fraud (which can have worse consequences than criminal prosecution in many cases).

To encourage someone to commit fraud is not helpful. Not to them, not to the DIS, and not even to you -- although it may make you feel good about yourself at the moment.

It's not even trying to be helpful. It's about something else entirely.

 

[a742246]

If your friend has financial problems and only owes $7300.00 for a 200 pt contract. I would give her the name a Disney resale company and tell her she could sell it for a substantial amount more! Is she is considering bankruptcy?