Need to get out of contract.....

[Cbarger]

I was a new DVC buyer and all was good until I found out my job is gone down the tubes... I cant make any more payments to DVC... What are my options to give it up? Only in the first few months of contract.


cb

 

[mjc2003]

1) You can rent your points ASAP to come up with quick cash to cover your payments and MF's so you don't fall behind.

2) You can sell your membership via one of the reputable resellers, but it sounds like you recently bought direct and financed; this means you will not get all your money back, and might have to come up with considerable cash to close.

Don't know if you have any other options. Good luck.

 

[ajpruett]

Would try to rent them and even borrow from the next use year to rent those as well if you can keep it that way. You're likely looking at losing a lot if you try to resell.

Best of luck

 

[Cbarger]

Dont care about the loss just need to stop the payments....

 

[JimMIA]

I'd suggest you look at the DIS ROFR thread, because it shows the recent resale sales prices for the various resorts (as opposed to the listing prices you'll see on the brokers websites). Whatever the gross sales price is, you will pay the broker's commission (usually 10%) plus some minor incidental costs (<$100). That will give you the net from the sale.

Any dues will have to be paid, along with the mortgage balance, from the net proceeds of the sale. If your net is not enough to cover the full amount, you will have to PAY IN cash to close and be done with it.

If that math looks unrealistic, you can probably rent your points for about $10 per point. Whether that covers your mortgage and dues payments for the year, only you know -- but, as others have suggested, it is one option.

 

[Greysword]

You can also call DVC administration and ask if they will take the contract back. Member Services can likely give you the appropriate number. There was a DIS DVC member that inquired about this within the last year (you can do a search on the DVC boards for foreclosure and bankruptcy).

If the contract was financed, they may be willing to take the points back or suspend the payments (and the points) until you can make payments again to avoid the hassle of foreclosure.

Good luck!

P.S. If you want to investigate renting your points, look into David's service (http://www.dvcrequest.com/). he is a sponsor of the Rent/Trade board and does the heavy lifting for you.

 

[Cbarger]

What about a Deed In Lieu of Forclosure? THey have my down money and i never used a point. They could resell and be a win for them...

 

[z28wiz]

People on this board wouldnt know that answer, only DVC would. Give them a call in the AM.

 

[JimMIA]

People on this board wouldnt know that answer, only DVC would. Give them a call in the AM.

Yes and no.

Certainly nobody on this board can speak for DVC...nor does anyone claim to.

However, posters on this board DO have a pretty good idea of some of the other options, like renting points.

Or even selling -- DVC is going to refer OP to Fidelity, not because they're a good broker, but because DVC has a contractual obligation to do so, and because they have a self-serving interest (50% commission kickback) to do so. I'm just guessing that might not be the best choice for OP...

So OP is wise to ask his questions here and get a full spectrum of advice from folks who have no vested interest in the outcome.

 

[Cbarger]

I will give DVC a call. See what they have. Then time to talk to time share store guy

 

[dbs1228]

Sorry to hear about your situation but you are smart to talk to DVC see what they say and give Time Share store a call, they are very honest and good to work with. They will answer all your questions. I have dealt with TSS buying and selling I highly recommend their services if that is the route you need to go. Good luck hope all goes well for you.

 

[bats]

I can't offer any advice as I'm new to DVC myself .. I just wanted to wish you luck with your phone calls.

 

[z28wiz]

Sorry I was quoting his last comment about deed in lieu, nothing to do with renting.

Yes and no.

Certainly nobody on this board can speak for DVC...nor does anyone claim to.

However, posters on this board DO have a pretty good idea of some of the other options, like renting points.

Or even selling -- DVC is going to refer OP to Fidelity, not because they're a good broker, but because DVC has a contractual obligation to do so, and because they have a self-serving interest (50% commission kickback) to do so. I'm just guessing that might not be the best choice for OP...

So OP is wise to ask his questions here and get a full spectrum of advice from folks who have no vested interest in the outcome.

 

[jamn]

If you think your situation might change in the future it makes a lot of sense to rent your points - even borrow next years points and rent those to help with the payments.

 

[bobbiwoz]

I would first contact Disney for their ideas. I personally wouldn't rent... Would probably bank. Unless things have really changed loaded contracts do better on the retail market than stripped ones.

Bobbi

 

[CarolMN]

Sorry about your job. Hope you find another one soon. Good luck!

 

[AnnaS]

Sorry to hear about your job. It's tough out there. Good luck and I hope you find something soon.

 

[TisBit]

What about a Deed In Lieu of Forclosure? THey have my down money and i never used a point. They could resell and be a win for them...

A lot probably would depend on what resort you bought, etc. If it is BLT, they may be willing to deal, if it is SSR/AKV they might make you jump through more hoops, etc.

Good luck, as others said, contact Disney, but unless they are willing to take the contract back, you will be stuck between a rock and a hard place...resale won't cover your costs in the end. Then you may want to look at renting through Davids or something to help with the payments.

 

[JimMIA]

What about a Deed In Lieu of Forclosure? THey have my down money and i never used a point. They could resell and be a win for them...

You basically only have two options, with a couple of variations within those options. You have to decide which of those is likely to give you the best long-term outcome in terms of the effect on your financial situation.

The option least likely to affect your credit is to keep DVC and manage the payments/dues in some fashion until you get back on your feet. The alternatives within the keep DVC strategy are to continue the payments, or to stop the payments.

• Since you've already stated you can't make the payments, probably the only method of making the payments is to rent your points. We have no way of knowing whether that would give you enough to fully cover the payments, but you should have no problem getting $10 per point, and renting is pretty easy.
• Another possibility is to just stop making payments altogether, but with the goal of keeping your DVC. If you do that, DVC will freeze your account and you won't be able to make reservations, bank points, etc -- so if you want to bank your points, as others have suggested, do that before you stop paying.
  
  Some owners have posted here that they have not paid for more than a year in situations similar to yours, and were then allowed to catch up and use their accounts. However, I do not know whether they had free-and-clear contracts and just stopped paying dues, or if they also stopped mortgage payments. DVC Member Admin may be able to give you some guidance on that.

The other strategy is to get rid of your DVC, and there are really only two options for that -- sell or foreclosure

• The first choice is to sell. We don't know what the balance is on your DVC loan, but we're assuming it's a direct purchase from DVD, meaning a mortgage. If that's how you financed, the mortgage will have to be paid off before you can close. If the proceeds of the sale are not sufficient to pay the mortgage, sales commission (usually 10%) and any other seller's costs you incur, you will have to PAY cash IN at closing. That may be doable for you, it may not be, or it may be doable but not your best option for your overall situation. Only you can evaluate that. However you do it, selling your DVC will get you out of DVC cleanly with no effect on your credit.
• The other possibility is foreclosure, and there are two variations of that -- regular foreclosure, and a Deed in Lieu of Foreclosure. The only difference is that one is voluntary and the other if forced. Both are legal processes, both are public record, and both could adversely affect your credit.
  
  For a voluntary surrendering of your DVC accound (Deed in Lieu of Foreclosure), DVC would have to agree to take the contract back...which they may refuse to do. For either of those options, you need to talk to DVC and see what the options are. Personally, I would avoid either foreclosure option if I had any other way out.

Good luck with whatever you decide, and I hope you're back on your feet quickly.

 

[Hunclemarco]

Hello...
Unfortunately, we were in the same boat as you, and we ended up doing a Deed in lieu of foreclosure...I really wish we didn't do that though....Here's my story.

We had a few contracts, and our job situations tanked as well. After 3 months of not being able to pay, Disney was ready to start foreclosure proceedings. We ended up doing the lieu of foreclosure...

1. As far as reports to the credit agencies, they don't report it (or didn't in our case anyways), but i'm sure that there is public record of it somewhere.

2. If you wish to get back into DVC, you will have to come up with other means of getting back in, ie...paying in full, or finding another means of a loan. Disney will not allow you to go on their monthly repayment plan.

(My wife and i are desperately trying to get back in, and saving money for a small contract with Disney, or resale.)

In hind site i wish we kept one of our contracts so we could stay in the system...now we're renting points till we can buy in again. I wasn't too familiar with the point rental process, and the amount of cash that could be generated from that, or i would have done that first...A few months later, our situation has improved a little, and we now regret loosing the contracts. It just makes us sick

I wish you the best in which ever decision you make. If you have any other questions, post away...i could give you info on my experience anyways.

....i wish i had the opportunity to not pay for a year and still be able to keep the contract as i read earlier on this thread Oh well.

There are also so many DIS vets here that have good comments...Hope all goes well for you.