Giving up DVC deed

[SoontobePrincess]

Hi everyone, without getting into too many details, we have been DVC members for 5 years. We now have some unexpected expenses and will have to give up our DVC membership for the time being. We are hoping to buy resale in the future, once things are settled again.

We looked into selling the points and would have to come up with $2000 at close through a DVC resale site which we have set aside but are hoping we could contact Disney and deed the property back to them, without having to pay these extra fee's. I should mention that the deed still has roughly $11k till it is paid off in full.

Is this a possibility while avoiding any credit implication? We have worked hard to build good credit and wont go this route if it will be affected. I have read a couple threads that discussed this but didn't find any that followed up at the end, verifying the re-deed back to Disney.

I really appreciate the help

 

[RobDoc]

It would certainly be worth a call to Member Accounting to see if something like that could be done and the potential consequences regarding your credit.

Good luck!

 

[KateB]

It. If hit also be considered an income on your taxes next year. Like when you short sale a house. The federal government considers that $11 k in income. Something else to think about.

 

[supersnoop]

My understanding is that Disney will refer you to Fidelity; they won't take it back. I have found one site where you can list your contract for sale independently, and that might be the best choice for you. It sounds like it's the commissions that put you upside down.

 

[Dean]

Hi everyone, without getting into too many details, we have been DVC members for 5 years. We now have some unexpected expenses and will have to give up our DVC membership for the time being. We are hoping to buy resale in the future, once things are settled again.

We looked into selling the points and would have to come up with $2000 at close through a DVC resale site which we have set aside but are hoping we could contact Disney and deed the property back to them, without having to pay these extra fee's. I should mention that the deed still has roughly $11k till it is paid off in full.

Is this a possibility while avoiding any credit implication? We have worked hard to build good credit and wont go this route if it will be affected. I have read a couple threads that discussed this but didn't find any that followed up at the end, verifying the re-deed back to Disney.

I really appreciate the help

I don't see any way out without a significant impact on credit, this will end up being a foreclosure it sounds like.

 

[Syndrome]

Hi everyone, without getting into too many details, we have been DVC members for 5 years. We now have some unexpected expenses and will have to give up our DVC membership for the time being. We are hoping to buy resale in the future, once things are settled again.

We looked into selling the points and would have to come up with $2000 at close through a DVC resale site which we have set aside but are hoping we could contact Disney and deed the property back to them, without having to pay these extra fee's. I should mention that the deed still has roughly $11k till it is paid off in full.

Is this a possibility while avoiding any credit implication? We have worked hard to build good credit and wont go this route if it will be affected. I have read a couple threads that discussed this but didn't find any that followed up at the end, verifying the re-deed back to Disney.

I really appreciate the help

How many points, what resort and what UY ? Did you already pay your 2014 dues ?

Is it possible to sell it at your break even ? Maybe bypass a broker to avoid the fees. If its a great price for somebody ............Disney may ROFR it, but what do you care, as long as you are out of it and it doesn't impact your credit. Worth a try .
Isnt there a way to force an ROFR ? Sell at your rock bottom or even a small loss (to a friend or family member ), knowing that Disney will ROFR it ? Cant Disneys ROFR policy also work against them in certain circumstances ?

-------------or ---------------

You can always rent out your points until its feasible for you to start using it again. That will turn your liability into, hopefully a break even for MF's and monthly payment. This all depends on how many points and your home resort.........and your MP and MF's.

 

[bumbershoot]

 

[bakerworld]

Hi everyone, without getting into too many details, we have been DVC members for 5 years. We now have some unexpected expenses and will have to give up our DVC membership for the time being. We are hoping to buy resale in the future, once things are settled again.

We looked into selling the points and would have to come up with $2000 at close through a DVC resale site which we have set aside but are hoping we could contact Disney and deed the property back to them, without having to pay these extra fee's. I should mention that the deed still has roughly $11k till it is paid off in full.

Is this a possibility while avoiding any credit implication? We have worked hard to build good credit and wont go this route if it will be affected. I have read a couple threads that discussed this but didn't find any that followed up at the end, verifying the re-deed back to Disney.

I really appreciate the help

DVD goes above and beyond to not hit your credit but their not going to make it easy for you. If you're current I would just sell with the Broker understanding that you need a hit a certain amount to come out on top - after all it benefits the broker also to make sure you can sell successfully.

 

[sndral]

Hi everyone, without getting into too many details, we have been DVC members for 5 years. We now have some unexpected expenses and will have to give up our DVC membership for the time being. We are hoping to buy resale in the future, once things are settled again.

We looked into selling the points and would have to come up with $2000 at close through a DVC resale site which we have set aside but are hoping we could contact Disney and deed the property back to them, without having to pay these extra fee's. I should mention that the deed still has roughly $11k till it is paid off in full.

Is this a possibility while avoiding any credit implication? We have worked hard to build good credit and wont go this route if it will be affected. I have read a couple threads that discussed this but didn't find any that followed up at the end, verifying the re-deed back to Disney.

I really appreciate the help

How many points, what resort and what UY ? Did you already pay your 2014 dues ?

Is it possible to sell it at your break even ? Maybe bypass a broker to avoid the fees.
....
-------------or ---------------

You can always rent out your points until its feasible for you to start using it again. That will turn your liability into, hopefully a break even for MF's and monthly payment. This all depends on how many points and your home resort.........and your MP and MF's.

Sorry that things are a bit rough at present. Do a search here on Dis for "deed in lieu of foreclosure" in the results will be a 2011 thread titled "need to get out of contract" lots of info. there - I'd link but don't know how on my IPad.
Have you paid your 2014 dues? If they are on a payment plan, are they current? The reason this matters is because if they are you can rent your points and generate some cash. David's I think will pay $10 per point, so if you have 160 pts. that's $1600 for your 2014 pts plus another $1600 if you borrow your 2015 pts. That $3200 should buy you some time and maybe enable you to weather this storm and keep your contract.
If you owe $11,000 on 160 pts that's $68.75 per pt.. Add a 10% broker's commission and that's $75.62 per point you need to realize to pay off your debt and buyer pays remaining 2014 MFs if you're on monthly pmt.s plus closing costs.
Depending on your situation consider:
Call DVC and check out your options vis a viz. deed in lieu of foreclosure.
Call Timeshare store about your sales options.
And call David's to check out renting to weather the financial storm and keep your contract.

 

[tjkraz]

Isnt there a way to force an ROFR ? Sell at your rock bottom or even a small loss (to a friend or family member ), knowing that Disney will ROFR it ? Cant Disneys ROFR policy also work against them in certain circumstances ?

OP owes $11k on the property. Before any transfer of ownership can occur--even back to DVD--that debt needs to be settled.

In other words, if they agree to sell for $4k, they need to write a check for $7k before the deed is transferred.

You can always rent out your points until its feasible for you to start using it again. That will turn your liability into, hopefully a break even for MF's and monthly payment. This all depends on how many points and your home resort.........and your MP and MF's.

That's a better idea. However, given what OP owes it's doubtful that renting will reach any break-even for the payments and fees.

Renting MAY be a way to bridge the $2,000 gap though. Rent as many points as possible (banked, current, borrowed) at $11-14 each and then sell what remains. However if the transaction is truly a rental, the reservations must be completed before the contract can be sold. (If it's a point transfer, this limitation doesn't exist.)

Also have to take into consideration the fact that contracts will not sell for as much with current and future year's points gone.

I'm not up on DVC current policy for take-backs. Usually it's a foreclosure with negative impact on credit history. Sure they can re-sell the points but you're still asking them to write off part of a loan they made in good faith, and incur additional administrative expenses related to the transaction. Businesses don't usually bend over backward to do that.

Good luck.

 

[Dean]

How many points, what resort and what UY ? Did you already pay your 2014 dues ?

Is it possible to sell it at your break even ? Maybe bypass a broker to avoid the fees. If its a great price for somebody ............Disney may ROFR it, but what do you care, as long as you are out of it and it doesn't impact your credit. Worth a try .
Isnt there a way to force an ROFR ? Sell at your rock bottom or even a small loss (to a friend or family member ), knowing that Disney will ROFR it ? Cant Disneys ROFR policy also work against them in certain circumstances ?

-------------or ---------------

You can always rent out your points until its feasible for you to start using it again. That will turn your liability into, hopefully a break even for MF's and monthly payment. This all depends on how many points and your home resort.........and your MP and MF's.

It's illegal to put one price on the contract in FL and sell for a different price. DVC will force a dollar amount for any weird items that gets thrown in.

 

[SoontobePrincess]

My contract is with AKV and it is a 160 point contract. I have 0 points left in the 2014 use year, but all 160 in the 2015. I am attempting to sell through the timeshare store, but no offers yet. We have is listed at $75 per point, which is very low. But no hits yet...

 

[AppleDisneyDad]

You might want to check out the ROFR Threads and AKV purchase history. I bought 160 AKV points in 2013 with all 2012 pts and got the seller to pay all closing and MFs for $65 per point. Now this was right before the recent price spike, so I may have gotten lucky, but if you haven't got a hit after a while, you may need to decide if your asking price is low to prospective purchasers...

 

[Syndrome]

OP owes $11k on the property. Before any transfer of ownership can occur--even back to DVD--that debt needs to be settled.

In other words, if they agree to sell for $4k, they need to write a check for $7k before the deed is transferred.

It's illegal to put one price on the contract in FL and sell for a different price. DVC will force a dollar amount for any weird items that gets thrown in.

Hmmm, I wasn't implying to do anything illegal, I think maybe I worded it wrong.

If the OP sells the contract for a "just get out of it" price to a family member or friend that may be interested in it for a good deal.............say $50 PP, maybe the broker fee could be bypassed. That would net $8000. to go towards the 11,000 owed. It would be an O.K. deal for someone (maybe, it is a stripped contract), and Disney may or may not take it at $50. PP . But who cares if they do .........was what I was trying to get at. If someone OR Disney buys it for most of the owed figure, does it matter. Either way there would still be some money owed. Just need someone to agree to buy it for (example) ..........$50. PP and let it go to ROFR . It may get taken by Disney, so the buyer would be out of it. That's what I meant when I said "Force an ROFR".
The only problem with this is Disney does not want any more AKL ............they have not been using there ROFR rights for almost any AKL contract lately. SO even a $50. may get through, since its stripped.

I wasn't implying to put down 1 figure on the contract and sell it for another figure that differs from the contract ......... not sure where you got that

I think the OP will have to decide to either ..........
1. Come up with some money to sell it , so it wont impact credit.
2. Don't put any money towards it and let Disney foreclose. Keeping the money (that was supposed to go towards paying it off) , but taking a hit on the credit rating.

BTW, I don't think $75. PP on a stripped contract is going to sell at AKL, from what I have seen. More like $55 - $60. PP and it might sell. There are NO points available now or for 2014 at all. AT least there wont be MF for the buyer at closing.

How hard would it be to not use a broker. Wont the title co. do most of the work ?

Good Luck OP !
BTW, whats your UY ?

 

[Syndrome]

My contract is with AKV and it is a 160 point contract. I have 0 points left in the 2014 use year, but all 160 in the 2015. I am attempting to sell through the timeshare store, but no offers yet. We have is listed at $75 per point, which is very low. But no hits yet...

Sorry to say, but its only "low" from the "listed" prices you are seeing. They are often selling AKL for $10-$15 pp less than list price (and your contract is stripped). The thrill of AKL has worn off a bit, and its a huge resort. Now AKL is considered one of the "value" resale purchases (there are a ton of them for sale). If you had BLT, or BCV it may be different.

Sorry .........Wishing you the best for a way out of it !

 

[Dean]

Hmmm, I wasn't implying to do anything illegal, I think maybe I worded it wrong.

If the OP sells the contract for a "just get out of it" price to a family member or friend that may be interested in it for a good deal.............say $50 PP, maybe the broker fee could be bypassed. That would net $8000. to go towards the 11,000 owed. It would be an O.K. deal for someone (maybe, it is a stripped contract), and Disney may or may not take it at $50. PP . But who cares if they do .........was what I was trying to get at. If someone OR Disney buys it for most of the owed figure, does it matter. Either way there would still be some money owed. Just need someone to agree to buy it for (example) ..........$50. PP and let it go to ROFR . It may get taken by Disney, so the buyer would be out of it. That's what I meant when I said "Force an ROFR".
The only problem with this is Disney does not want any more AKL ............they have not been using there ROFR rights for almost any AKL contract lately. SO even a $50. may get through, since its stripped.

I wasn't implying to put down 1 figure on the contract and sell it for another figure that differs from the contract ......... not sure where you got that

I think the OP will have to decide to either ..........
1. Come up with some money to sell it , so it wont impact credit.
2. Don't put any money towards it and let Disney foreclose. Keeping the money (that was supposed to go towards paying it off) , but taking a hit on the credit rating.

BTW, I don't think $75. PP on a stripped contract is going to sell at AKL, from what I have seen. More like $55 - $60. PP and it might sell. There are NO points available now or for 2014 at all. AT least there wont be MF for the buyer at closing.

How hard would it be to not use a broker. Wont the title co. do most of the work ?

Good Luck OP !
BTW, whats your UY ?

It was the force ROFR that prompted my statements.

 

[racefanof88]

OK, I may be totally confused, but if OP sells the contract to a family member at say $50 per point it comes to $8000, if they still owe $11,000 then the person who paid $8000 would not really have anything. The deed could not be transferred until the balance was paid in full and if OP somehow defaulted on the balance then wouldn't the family member be the one who loses in the end?

 

[Dean]

OK, I may be totally confused, but if OP sells the contract to a family member at say $50 per point it comes to $8000, if they still owe $11,000 then the person who paid $8000 would not really have anything. The deed could not be transferred until the balance was paid in full and if OP somehow defaulted on the balance then wouldn't the family member be the one who loses in the end?

They can't transfer it without paying off the loan. They'd have to ante up the additional money between what was left after commissions and the loan balance.

 

[racefanof88]

They can't transfer it without paying off the loan. They'd have to ante up the additional money between what was left after commissions and the loan balance.

OK, so I'm not confused ...........

 

[Dean]

OK, so I'm not confused ...........

The only other option would be for the loan company to agree to the transfer or adding the family member to the deed, which I've never heard of anyone being successful in that situation with a DVC loan but I've only heard of a couple of people who tried that type of approach.

Since the OP didn't include a lot of details and it's my preference anyway, I'll speak to the general situation as much as possible related to someone who owns DVC and can't currently afford it for whatever reason. Often the best option is simply to rent out the points yearly if there's a loan, they should be able to cover dues and most of the monthly payments after they get caught up with the points that are already gone. The OP mentioned a "deed in lieu of foreclosure" and also they didn't want their credit harmed. These are 2 mutually exclusive situations unless the timeshare simply fails to report the info to credit bureaus. NO timeshare is going to take it back unless they think they're not going to get anything anyway AND the owner is significantly behind or it's truly worth more than owed. As noted above, forgiven debt is counted as income, that'd likely add another roughly $2500 bill to this.

It's easy for such an owner to get in the mode that they're losing it anyway so maybe they can help out a family member or friend with a sweetheart deal. Or even worse, transfer it to someone with the intent of bypassing the legalities of the credit & related court systems and continuing to use it themselves. That line of thinking can lead them to a path where they violate state and federal laws if not careful. For most, the difference at closing is more than the amounts quoted by the OP and in this situation, I suspect it will end up being more than quoted as well, given the info quoted, likely around $3500 difference the best they can do.