My sellers reneged AFTER closing!!!

[Terri2007]

Can you believe it??? I can't. Passed ROFR, funds transferred and sellers cancelled because they say they do not have enough funds to close!!! The story is they owe Disney more then they thought.

And, I thought I would be HOME soon. Boo Hoo.

(not that I wish any financial hardship on others..)

 

[Terri2007]

Perhaps putting the Saratoga Springs picture in my signature gave me bad juju.

 

[drusba]

You may want to get to a lawyer to make sure you are protected. You say there was a closing and funds transfered (which is supposed to happen only at closing) but then say the sellers cancelled because they did not have enough funds to close, implying there was no closing and therefore no transfer of funds. Note, I find it difficult to believe there was an actual closing with funds transfered if the seller was not going to have sufficient funds to pay off any mortgage with Disney at time of closing, i.e., part of any closing is the pay-off of any mortgage or any other amounts due Disney in relation to the property. If that fiasco occurred, you have a legal mess. As a result of closing you are now legally considered the owner but Disney apparently still has a prior recorded mortgage lien on your property interest from the prior owner and can foreclose on the property (meaning your interest) if the seller does not pay off the mortgage.

If what actually occured is that there was no closing, then what you want is to get out of this mess quickly with your money back (you could sue to require the completion of the sale but you really don't want to spend the money necessary to do that; better just to get out of this unscathed). However, if your money was transfered to the seller (and it should not have been without a closing), you better seek to get it back quickly.

 

[keishashadow]

does FL have a performance of contract clause that applies to TS sales?

just mentioning it is often enough to rattle the tree to get the coconut unless, it is truly a $ issue...they may have just developed cold feet.

 

[LisaS]

Passed ROFR, funds transferred and sellers cancelled because they say they do not have enough funds to close!!! The story is they owe Disney more then they thought.

I'm assuming you mean that the seller dropped out at the last minute PRIOR to closing. To whom did you transfer funds? I hope you mean that you sent your final payment to the company handling the closing, but the closing could not be done because the buyers had not provided the funds needed to satisfy their mortgage with Disney.

 

[TLSnell1981]

Wouldn't they(the closing service) take the funds owed to Disney from proceeds of the sale and send the seller the remainder of the money? Is this not done like a regular closing?

 

[Terri2007]

Sorry, typed too fast when I found out the news. There was no closing...the title company has the funds and will be returning in full to me. I would have been ALOT more upset (and less understanding) if I had lost any money with the deal, but I have not.

I was going to review contracts to see what other options I have since we have a valid contract and they are in violation.... any thoughts?

 

[Terri2007]

Wouldn't they(the closing service) take the funds owed to Disney from proceeds of the sale and send the seller the remainder of the money? Is this not done like a regular closing?

Hey wait a minute.... you are correct.
The contract was for 150 point SS.
I paid $12, 360 and the seller was to pay closing costs and admin fee $670 which leaves $11 690 for the seller... less commission say 10% - $10521 to the seller.

If they had paid full price for SS... what is this $90 pp?-.. for 150 points - $13500, they must still owe a bunch not to have enough money to close...

 

[LisaS]

Wouldn't they(the closing service) take the funds owed to Disney from proceeds of the sale and send the seller the remainder of the money? Is this not done like a regular closing?

In this case it sounds like the funds from the buyer are not enough to cover the balance due on the mortgage. SSR resales typically go for somewhere in the low 80s/pt, say $83 or so. If they are selling through a broker they will owe a sales commission of 10%-15%, so the buyer might be getting somewhere around $75/pt. If the seller purchased SSR fairly recently they would have paid somewhere between $86-$94/pt. If they paid 10% down and financed the rest, they might still owe around $80/pt on their mortgage. There could be a shortfall of $5/pt, along with the transfer fees ($200?) that are owed as part of a sale. On a 150-pt contract, that would be close to $1000. If the seller is selling due to a financial problem, they may not have the money needed to make up the difference.

 

[Maistre Gracey]

I was going to review contracts to see what other options I have since we have a valid contract and they are in violation.... any thoughts?

I thinh drusba gave you sound advice.. Get out of the deal, especially since you've lost nothing.

The whole thing seems a bit fishy..

MG

 

[Deb & Bill]

The seller should have known what they would be getting at closing if this was through the Timeshare Store. As part of our closing documents and other documents before ROFR started, we received a statement telling us what we could expect to get after the closing. Something's fishy.

 

[drusba]

"I was going to review contracts to see what other options I have since we have a valid contract and they are in violation.... any thoughts?"

If you are getting all money you paid back, I would not be overly optimistic about pursuing something more. You might be able to force the sale (and thus still have to pay the sale price), but If I were you I wouldn't even consider the possiblity both because of legal cost of doing so and because you really should have no desire at all to deal with the headache of this seller anymore. You might be able to recover other expenses you incurred in the process (which are probably not much -- typical Disney resale process is done by phone and mail and thus costs incurred are likely long distance calls, stamps, and possibly for a notary if you were required to get one). The problem is you have to spend the time and effort to pursue any claim and may even have to retain a lawyer to do so (the cost of which is more than anything you could recover)

 

[Terri2007]

The sale was through International Properties GMAC not TSS. And we have essentially no interest in dealing with the sellers other then the angst of having to wait another 8-12 weeks once we find another seller/agree on a purchase price.


ty for the advice.

 

[dianeschlicht]

The sale was through International Properties GMAC not TSS. And we have essentially no interest in dealing with the sellers other then the angst of having to wait another 8-12 weeks once we find another seller/agree on a purchase price.


ty for the advice.

You might actually be ahead of the game to buy direct at this point. Is it that you are trying to get a 150 point contract instead of 160? If you ended up having to pay the higher closing costs with another resale, it might make sense to buy direct instead.

 

[JimMIA]

The sale was through International Properties GMAC not TSS. And we have essentially no interest in dealing with the sellers other then the angst of having to wait another 8-12 weeks once we find another seller/agree on a purchase price.


ty for the advice.

I'm sorry you had this difficulty, but unfortunately not everyone in the timeshare business is competent and ethical.

I can't think of any legitimate reason why the broker and closing company did not know every financial aspect of this transaction well in advance of closing. As messed up as this deal is, you are lucky to escape with all your money. I would run, not walk, away from this transaction.

Call TSS and buy a real contract from someone who knows what they are doing. If they don't have what you are looking for, have them put you on a call list for what you want.

 

[epicureangirl]

I'm so sorry this happened to you. I really thought after ROFR it was generally 'smooth sailing'. I hope you get a fantastic contract soon, so you can finally get your long-awaited "Welcome Home".

 

[Dean]

not much you can do. Certainly not worth pursuing with a Lawyer.

 

[Cinderella]

This is bad - they obviously bought at a high price and borrowed the full amount. I was recently in the same situation but the other way round. I sold one contract but the buyer backed out. I hadn't taken a deposit so there was nothing I could do.

Luckily I found another buyer for my WLV points straight away and I've had a lot of interest in the SSR ones. If the SSR ones don't sell on ebay, I'm going to try selling through the Timeshare Store as Jim recommended too.

You have to be careful with some of these timeshare sellers. I filled out my details with one. And it said they would give me a free valuation of what my points were worth. I didn't receive it. The woman got back to me with the forms etc. And I emailed three times and asked for my valuation, and also how low I would need to price them for a quick sale. I received no reply - so needless to say, I haven't sent the forms back.

 

[Terri2007]

Well, I have wasted no time!! Just put on offer in on another contract....waiting to hear what the sellers say...

I really, really, really am ready for DVC (even if DH isn't ). But on the upside...am a BRAND NEW OWNER at BC! Waiting to get into the system!

TY all!

 

[LisaS]

Well, I have wasted no time!! Just put on offer in on another contract....waiting to hear what the sellers say...

I really, really, really am ready for DVC (even if DH isn't ). But on the upside...am a BRAND NEW OWNER at BC! Waiting to get into the system!

TY all!

Since you live in Chicago, have you visited the DVC sales office there? When it first opened just a few months ago, they were offering better incentives than those offered to people adding on either by phone or in person at WDW. You might find you get a better deal (when you consider the entire package: price and number of points you get) by purchasing SSR points directly from Disney at their Chicago sales office. And you won't have to deal with ROFR, reneging sellers or inexperienced resale brokers. Just a thought...