Got ROFR on stripped contract

[chainkid]

I just received notice from the timeshare store that a stripped contract I wanted to purchase at BWV for $70 per point was taken by disney. I'm really surprised because it had a September use year with all 2004 points gone as well as most of 2005. I was paying closing costs. The reason I'm surprised is , Disney can't turn around and sell these points until 2006 or can they??? It would seem that would be in violation of our contracts. Does anyone know if they can then sell this stripped contract right away as if it were full.

 

[Beca]

First, I am SOO sorry to hear that.

And, second..yes, they can (and will) re-load the contract. They can use developer's points, forfeited points, or points they have stripped from a previous contract the ROFR'd that had "banked" points.

Good luck on your next contract!!!



Beca

 

[RuthnPaul]

Sorry to hear your contract got ROFR'd! Second stripped contract today that did not pass. We're still sitting here waiting for a response on our VWL contract...

 

[LIFERBABE]

I had the same question as far as DVC buying back a stripped contract and then making it whole and reselling it.

I believe they can, but not sure how they do it.

This is probably the reason stripped contracts are priced very closely to loaded contracts as Disney only looks at the final cost per point.

 

[chainkid]

I was told my contract was one of six that they exercised ROFR on. I was purchasing this add on as an investment so it didn't break my heart but I feel sorry for the others who will be getting the bad news on their contracts. I wonder what the new level will be or if they will just try to eliminate the competition for all resales in the near future.

 

[bobbiwoz]

That's bad news, I hope you can get something in the near future!

Bobbi

 

[carlos1117]

Go after another one, keep you chin up!

 

[LisaSt]

Wow suprisingly no one has jumped on you about your purchasing a contract as an investment. Good luck with your next attempt on a contract and let us know how it goes.

 

[SoCalKDG]

I just received notice from the timeshare store that a stripped contract I wanted to purchase at BWV for $70 per point was taken by disney.

I passed yesterday at $73 for BWV. I paid closing plus MF's on 110 current points on a 150 point contract.

The cutoff must be somewhere in between. If buying a resale, I'd make sure that I offered at least $73 plus pay closing if trying to buy VWL, BCV or BWV.

 

[AmyBeth68]

Wow Another stripped contract?!

I wonder if my contract was another that got ROFR'd? I thought for sure I'd hear today. Haven't called my broker yet...I know I'm being impatient.

Interesting?! Best of luck next go around.

 

[RuthnPaul]

Originally posted by chainkid
I was told my contract was one of six that they exercised ROFR on.

Did Disney exercise ROFR on 6 contracts today alone or is this the number that the reseller has had that didn't pass in the last week or so??

I truly believe that the waitlist process for members who want to add on through Disney is the right way to go; however, I feel that they should have allowed any contracts that were in their pipeline to pass ROFR (assuming they would have normally passed) -- but then that's just me!!

 

[uwate]

Got ROFR rejected today as well on a stripped 220 point BWV contract at $68.00. Closing cost were to be paid by the buyer (me) and it had just a handful of points available until 2006.

I reloaded already and got accepted on another 200 point contract. I'll fill everyone in if it passes.

I had one question though, Disney can see the terms of the deal down who is paying closing costs? Does Disney take that into consideration or are they only looking at the sale prices and points?

 

[Beca]

Originally posted by uwate
I had one question though, Disney can see the terms of the deal down who is paying closing costs? Does Disney take that into consideration or are they only looking at the sale prices and points?

I think DVC takes everything into account, and calculates a "bottom line" for themselves. I'm sorry to hear about this. DVC DOES seem to be buying back more aggressively!! But, $68 at BVW would probably not have gotten through even under the old policy.

Good luck on your next contract!!



Beca

 

[DIZNYFAN]

Good luck on your next contract chainkid.

 

[ronw]

September use year with all 2004 points gone as well as most of 2005.

This doesn't sound right - 2005 points couldn't possibly be gone yet. You can only borrow into the current use year and 2004 hasn't started yet for a September use year.

 

[jel0511]

Originally posted by ronw
This doesn't sound right - 2005 points couldn't possibly be gone yet. You can only borrow into the current use year and 2004 hasn't started yet for a September use year.

Yes it is. for instance, say you have a Feb use year. This year in Feb, you have all your 2004 points available and then you can borrow all of your 2005 points to make a ressie in 2004. It is entirely possible to see a contract with an early in the year use year have no points until 2006. The owner of the contract probably took one blowout vacation before placing the contract up for sale.

 

[idratherbeinwdw]

Originally posted by ronw
This doesn't sound right - 2005 points couldn't possibly be gone yet. You can only borrow into the current use year and 2004 hasn't started yet for a September use year.

Don't forget you don't have to have the points available in your account the day you call to make the ressie, they just have to be available when the actual trip you are trying to reserve is occuring.

For instance, in this case the original owners of the contract in question with a September use year could have made ressies using borrowed '05 points for any trips they have planned from 9/04 onward--as long as the trip falls within the 11 month window for the home resort, or 7 months for other DVC resorts.

 

[ronw]

For instance, in this case the original owners of the contract in question with a September use year could have made ressies using borrowed '05 points for any trips they have planned from 9/04 onward--as long as the trip falls within the 11 month window for the home resort, or 7 months for other DVC resorts.

And that is my point - 2005 points can only be used for a trip AFTER 9/1/2004. If this contract is for sale NOW any existing reservations will be canceled so the 2005 points could have been borrowed into the 2004 use year but they cannot have been used yet.

 

[jcanary]

They may have requested a closing date after the start of their vacation. I have seen this a couple of times on resales

 

[nuthut]

Originally posted by ronw
This doesn't sound right - 2005 points couldn't possibly be gone yet. You can only borrow into the current use year and 2004 hasn't started yet for a September use year.

you right the eariest that Sept 2005 points can used is Sept 1, 2004!!