Need advice on resales

[Bethshaya]

Well, the time has come for us to sell our DVC. We love it so much, but we just cant afford it anymore. Not to mention that we are both smokers and wouldnt stay there anymore if we cant smoke anywhere on Disney property. That would drive us bonkers.

My fiancee lost his job 2 years ago and has only been able to find part time jobs and is doing side work in his own business. We are living on my salary alone and we are squeeking by, if that. We have tabled getting married for now because we cant even afford that.

We need to sell to pay off debt. We dont have much debt (it all would be covered by the sale and have some left over), but what we do is killing us and we are sinking fast.

I have a few questions that I am hoping someone can answer.

1) Can we sell if we still owe on the loan? We owe about $2300. If so, will they take that amount out of the sale check?

2) Can we sell if we still owe on this years annual dues? We haven't paid yet and owe $700 on that. Again, will they take that out of the check?

3) I am divorced for 10 years now and as part of the decree, I got the DVC. I was able to change my name on the deed, but never able to afford the $400 they were going to charge me to remove my ex husbands name from the ownership. We are on very good terms, so I just left it there all these years. I will likely need to remove his name, but I still dont understand why they need to do a title search and charge $400 to remove a liability from the deed. Is this standard practice?

Anyone have any advice?

 

[RobDoc]

Any amount due on the mortgage will be settled at closing.

Annual fees will also need to be paid before closing - that will also be settled with the final transaction - inclulding any late fees.


All names on the deed wil need to sign off on the sale - so you will need to have your ex removed from the deed before closing or he will share in any proceeds.

 

[poohmomof5]

Any amount due on the mortgage will be settled at closing.

Annual fees will also need to be paid before closing - that will also be settled with the final transaction - inclulding any late fees.


All names on the deed wil need to sign off on the sale - so you will need to have your ex removed from the deed before closing or he will share in any proceeds.

I would like to add a little to this:

The title search that is done as part of the closing will ensure that the buyer is purchasing property that is free and clear after closing. So while you may not understand the need, the buyer should demand to know that the property is truly his/hers after closing.

At closing, the closing agent will use the money from the sale to payff anything noted on title, that would include any mortages, past due annual fees etc.

If you have not removed your ex husband, he will need to sign all closing documents and the proceed check would be made payable to both you and him. So, just to clarify, you do not HAVE to remove him prior to closing, but you would have to trust that he would not demand to share the check and that he would sign it over to you at closing and willingly sign the documents.

That is always a risky when large sums of money are involved! So be smart and good luck. Hopefully your fiance will find a nice job soon!

Poohmom

 

[Bethshaya]

I would like to add a little to this:

The title search that is done as part of the closing will ensure that the buyer is purchasing property that is free and clear after closing. So while you may not understand the need, the buyer should demand to know that the property is truly his/hers after closing.

At closing, the closing agent will use the money from the sale to payff anything noted on title, that would include any mortages, past due annual fees etc.

If you have not removed your ex husband, he will need to sign all closing documents and the proceed check would be made payable to both you and him. So, just to clarify, you do not HAVE to remove him prior to closing, but you would have to trust that he would not demand to share the check and that he would sign it over to you at closing and willingly sign the documents.

That is always a risky when large sums of money are involved! So be smart and good luck. Hopefully your fiance will find a nice job soon!

Poohmom

Thanks Pooh

So why do they need to do a title search and pay $400 for it when I am not selling it. I am just removing his name from the documents. Is it to search for any possible liens that he might have had put against it for any reason?

 

[Dean]

1) Can we sell if we still owe on the loan? We owe about $2300. If so, will they take that amount out of the sale check?

2) Can we sell if we still owe on this years annual dues? We haven't paid yet and owe $700 on that. Again, will they take that out of the check?

3) I am divorced for 10 years now and as part of the decree, I got the DVC. I was able to change my name on the deed, but never able to afford the $400 they were going to charge me to remove my ex husbands name from the ownership. We are on very good terms, so I just left it there all these years. I will likely need to remove his name, but I still dont understand why they need to do a title search and charge $400 to remove a liability from the deed. Is this standard practice?

Anyone have any advice?

I am sorry to hear about your situation but it's good to remind members and potential members that life can and does happen sometimes. You can pay the loan off at sale and I'm pretty certain you can pay any dues at sale as well. However, you can't do a change of ownership without sale if your behind on the dues. Neither can you change it if the loan has his name on it without paying it off first.

The $4-500 isn't for a title search but for a total closing. Unfortunately it's hard to save much money on closing and get a company to do the entire thing. You could have done it yourself for the recording fees, about $50 total. In this situation you would not need a title search or title insurance as the risk to you of someone having a lien against your DVC contract outside your loan is essentially nil. Given your circumstances, the same would not be true for the new buyer.

I see two choices if I'm understanding your situation correctly. One is to do a two step process that would change it over to your name now and at a later date, you would sell as a separate incident. The other is to sell it as is with the dues and loan outstanding coming out of your closing proceeds. Either way your ex will have to sign off. I do not believe that the divorce decree will sub for his signing the transfer papers but you might want to check with a lawyer to make sure.

A couple of caveats. I suspect it will be safer to do the transfer to your name and not even mention a sale to your ex, but it will take longer and will require you to pay the loan off and get the dues up to date prior to the transfer. If you go this route I'd suggest you complete a deed and transfer form and have your ex sign them all at one time before you pay off anything. That way once you have ROFR, you can be ready to send it all in for recording. That will be much quicker and somewhat safer when dealing with an ex. Also check on both the loan and deed to make sure the ex's name is indeed on it, it may be but there is a real chance it is not. Life will be much easier if the ex is not difficult to deal with. Good luck, I hope it works out.

 

[cpgecko]

Most of your questions are covered quite thoroughly above, but I have been through the sale of a DVC interest with an ex on the title.

Basically, what happened was that she needed to sign all of the closing document and we drafted an additional document that said it was ok for the check to be put in my name only. We are on good enough terms to make that reasonable, but it did slow down the close as papers needed to be juggled back and forth in the mail (we live in different states now).

If you're amiable it's not bad.

I would give them a heads up if you're selling and would need them to sign anything though...just seems like there's a lower chance of something really bad happening later if they know, but you know your relationship better than any of us.