Looks like Disney is not paying closing costs

[disneycrazed139]

I looked at the fine print re: closing costs in my documents kit. There is a tally at the regarding what monies are due to Disney for closing costs. I used to be a paralegal and have taken advanced real estate transactions, so I think I know what I am looking at. Also my first payment to Disney is a much larger number number than what my monthly payment is supposed to be--just the first payment--I am assuming that they are incorporating the closing costs into this figure and that is why the one large lump sum

Now granted, the closing costs are not huge--only $281 dollars, but still, I thought Disney was swallowing them from everything I had heard.

They are plainly laid out in the settlement statement. The line is also checked that the cash is due from the seller, (making the total amount due to seller 13,350 and total amount due to the seller that amount plus the 281 closing costs.

I just don't understand why my initial payment is a larger sum than the rest of the installments.

Did this happen to anyone else? Are you really paying a portion fo the closing costs? I will definitely call my guide tomorrow to ask her these questions.

 

[kathleena]

What is your closing date and what is your first payment date? For the prepaid interest between those dates.

Or maybe maintenance fees?

 

[disneycrazed139]

Maybe it is because I am not paying until beginning in June. Maybe if I began the payments sooner the lump sum wouldn't occur. I don't think it's the closing costs either.

I will call and find out--I think it's interest, not dues.

I can't find anything about payment of the dues in the contract. I'll have to read it again, but I don't see anything about payment due date in there.

 

[Maistre Gracey]

Yes, kathleena is correct. The first payment incorporates interest for the time period between closing and first payment.

As far as the closing costs, look at the settlement statement and see what it says there. The closing costs may be included under "Reduction in Amount Due to Seller".

Let us know...

 

[dvc_john]

Yes, closing is on the first. My first payment is on the 15th. So the first payment includes 1 1/2 months interest. The remaining payments only include 1 months interest.

Closing costs are on line 603: 'Cash FROM Seller', and are paid by the seller.

 

[NCRedding]

I deal with HUD settlement statements every day. My disney statement shows settlement charges to seller on the page page (these include title insurance, recording and transfer tax)) That figure is then tranfered to line 502 (Settlement charges to seller) under the heading "Reductions in Amount due to Seller". If your line 103 Settlement charges to borrower has a $0.00, then you are paying no closing costs. On what line are the settlement charges on your statement?

 

[disneycrazed139]

Okay, thanks NCRedding. Line 103 has a "O" as it should.
I didn't realize the closing date and 1st payment date were so far away from each other (over two months!!) There is a lot of interest accruing there. Without having them re-do these documents, I wonder if there is a way for me to avoid paying this interest charge.

 

[NCRedding]

As for dues, we closed on 2/2/02 and received a dues statement for the rest of the years dues on 2/27/02 with the first draft on 4/1/02. I was assessed dues from 2/2/02 through 12/31/02, but because I was only given 8 months to pay them, the amount I paid last year was more per month than for 2003. We didn't finance so I can't help you with this, but could the payment include your dues, and therefore that is why it is higher? Also, I am not clear: what do your docs say is your closing date? When is your first payment due?

 

[drusba]

Typically your first financed payment is made 1 1/2 or more months after closing. It includes both principle and interest for that more than 1 month period. All payments after that cover a 1 month period. Disney does pay the closing costs. As to dues, you are required to pay dues from date of purchase (not closing) to end of year. Like your finance payment, your first dues payment is typically made about 1 1/2 months or so after closing. For dues, they calculate what you would owe from date of purchase to end of calendar year and then your payments for those dues are spread evenly over the actual time you will paythem until the end of the year. Example: you purchase June 1, you close July 1, your first dues payment is September 1. For the year you will owe dues for the period June 1 to December 31 (7 months). However, you will only be making four monthly payments Sep to Dec. They calculate the total dues for that 7 month period and then you pay that amount in 4 equal instalments Sep to Dec. As to the loan on the property, the first payment you will make Sep 1 covers principle and interest beginning from July 1.

 

[disneycrazed139]

Drusba--

I understand, but is that the case for Saratoga Springs, where it is not even open yet? I have to pay dues on it before it even exists?

 

[floridafam]

What will your use year be for SSR?

Let's say you had an April use year. SSR does not open until May.

You get your SSR pts in April. You have to pay dues from April, not May.

 

[JimC]

The first payment includes your regular payment plus accrued interest from closing to the date of the first payment. Interest is always paid in arrears.