Newbie question on private DVC re-sale

[jmasgat]

Hi,

A friend of mine is declaring bankruptcy and needs to get rid of her DVC points/contract. They are ~4 years into their payment plan and have ~$7500-8000 left to pay on their 150 SSR points. So she has asked me if I am interested, and I will give it consideration.

So I am looking for a "primer" on re-sales. I have read most of the threads and understand that Disney has ROFR. But just to start with basics...is there someplace I can look to get a step by step understanding of how a (private) resale process would work? Meaning, what does she do first--extend an offer? call Disney to tell them she needs to sell?

I'm not committed to anything with her (not that it seems to matter if Disney exercises their ROFR), and length of time is not really an issue for me--but it probably is for her.

If you can point me to any other useful links on the re-sale process, or just want to weigh in on Do's and Don'ts, I'd appreciate it. I have been the beneficiary of DVC over the course of the last 10+ years through my sister (who bought in in '92/93) and between myself, and my daughter, this might be something to think about.

Maura

 

[saintstickets]

Once your friend files for bankruptcy, her assets are not hers to sell...they become part of the bankruptcy proceedings. In addition, any asset of consequence sold just before the filing can be reclaimed by the bankruptcy court. I would suspect this asset (worth approximately $3-5,000 after netting amount owed) would fall under that category. As an example, I collected monies owed me by a company 3 months prior to that company filing for bankruptcy protection. The bankruptcy court made me pay back the monies I collected. This money then became a part of the assets in the proceedings. I filed a claim and received about 25% of what I was owed along with other creditors.

I would suggest your friend consult a bankruptcy attorney before she sells her DVC contract or anything else for that matter. Here's hoping and praying everything turns out for the best.

 

[chalee94]

So I am looking for a "primer" on re-sales. I have read most of the threads and understand that Disney has ROFR. But just to start with basics...is there someplace I can look to get a step by step understanding of how a (private) resale process would work?

yeah, DVC's ROFR means that if she offers you a killer deal, that DVC can boot you out of the way and accept that killer deal. but if someone is in bankruptcy proceedings - or soon will be - then that question is moot. (and if she can't pay then DVC can just foreclose on the contract.)

but in general:

1) a buyer and seller would agree on a price and terms
2) the contract would be submitted to DVC for ROFR consideration
3) after up to 30 days, either DVC steps into the buyer's shoes and takes the contract or else they waive ROFR and the closing process to transfer the real estate interest proceeds.

IMO, you are better off just looking for a resale here:

http://www.dvc-resales.com/dvclisting.cfm

 

[lark]

Hi,

A friend of mine is declaring bankruptcy and needs to get rid of her DVC points/contract. They are ~4 years into their payment plan and have ~$7500-8000 left to pay on their 150 SSR points. So she has asked me if I am interested, and I will give it consideration.

So I am looking for a "primer" on re-sales. I have read most of the threads and understand that Disney has ROFR. But just to start with basics...is there someplace I can look to get a step by step understanding of how a (private) resale process would work? Meaning, what does she do first--extend an offer? call Disney to tell them she needs to sell?

I'm not committed to anything with her (not that it seems to matter if Disney exercises their ROFR), and length of time is not really an issue for me--but it probably is for her.

If you can point me to any other useful links on the re-sale process, or just want to weigh in on Do's and Don'ts, I'd appreciate it. I have been the beneficiary of DVC over the course of the last 10+ years through my sister (who bought in in '92/93) and between myself, and my daughter, this might be something to think about.

Maura

Your friend's member guide and other docs will explain how to submit a contract to disney for disney to exercise its ROFR. If it passes ROFR, you can call one of the companies that sells resales, and I'm sure they would be happy to refer you to their closing company to prepare a deed and make sure everything gets recorded correctly. There are lots of timeshare transfer companies out there. Check out tug2.net too, if you want more recommendations.

(Obviously, though, nothing is a substitute for getting a lawyer involved. You certainly shouldn't rely on the internet for legal advice.)

 

[disneynutz]

Resales are real cheap right now so you might be better off buying through normal resale channels.

Bill

 

[jmasgat]

Thanks to all for the advice. More things to consider! This person is being advised by a bankruptcy attorney, so I am "assuming" the advice offered about getting rid of the contract is sound. I hadn't though about the closing part, so that's good to look at.

Other than this transaction, I'm not really in to looking at buying through a resale market. This is more of a personal thing. And I have a feeling that Disney will balk at this resale since it would be below what I see for current resale contracts--but we'll see.

Thanks for the feedback,

Maura

 

[silmarg]

I would think $63 or less per point will get bought back by disney. $64-$66 would be in the coin flip range. $67 and up is more likely to pass than not.

That said, if your friend listed the points at a reseller for $65 or $66.. I bet it would sell in one day at asking price. She would have to pay 10% brokerage fee, so that would leave her with $58-59 - which would pay off her note and have a few $ left over.

 

[Jason@dvcstore]

Hi,

A friend of mine is declaring bankruptcy and needs to get rid of her DVC points/contract. They are ~4 years into their payment plan and have ~$7500-8000 left to pay on their 150 SSR points. So she has asked me if I am interested, and I will give it consideration.

So I am looking for a "primer" on re-sales. I have read most of the threads and understand that Disney has ROFR. But just to start with basics...is there someplace I can look to get a step by step understanding of how a (private) resale process would work? Meaning, what does she do first--extend an offer? call Disney to tell them she needs to sell?

I'm not committed to anything with her (not that it seems to matter if Disney exercises their ROFR), and length of time is not really an issue for me--but it probably is for her.

If you can point me to any other useful links on the re-sale process, or just want to weigh in on Do's and Don'ts, I'd appreciate it. I have been the beneficiary of DVC over the course of the last 10+ years through my sister (who bought in in '92/93) and between myself, and my daughter, this might be something to think about.

Maura

Feel free to contact The Timeshare Store, Inc.® and speak to any associate as they could assist with the transaction. Instead of the seller paying a commission they would pay a transaction fee since bringing their own buyer. If you decide not to purchase please tell your friend The Timeshare Store, Inc.® would be happy to assist them.

I hope everything works out for the both of you.

Jason