Options other than Bankruptcy

[dizzi]

Just reading the thread on the bankruptcy.......

Are there options other than bankruptcy to "give back" the dvc?

As in if you stop paying on a car loan they come and reposses your car?

Is there a way to do this and still keep some sort of better credit?

 

[E&K's Dad]

Just reading the thread on the bankruptcy.......

Are there options other than bankruptcy to "give back" the dvc?

As in if you stop paying on a car loan they come and reposses your car?

Is there a way to do this and still keep some sort of better credit?

I believe that the best bet would be to put the contract up for resale and get whatever value the seller can for the contract to pay off the existing balance on the loan. Depending on how long the owner had paid on the loan, the initial down payment and the price sold for at resale this may allow the seller to pay off the contract and save having a default on their credit. If it was a new contract it is highly unlikely that a resale would clear the balance. . .in that case I would contact Disney to see what the options are.

 

[chalee94]

As in if you stop paying on a car loan they come and reposses your car?

i don't believe it's that simple in the car loan situation IIRC. if they repossess your car, they sell it and apply the proceeds to your loan. if the proceeds are not enough to pay off the loan completely, they can still pursue you for the remainder.

in both cases IMO, it's usually better to sell the asset yourself for the best price you can get rather than sit by passively to see what happens.

 

[Dean]

Just reading the thread on the bankruptcy.......

Are there options other than bankruptcy to "give back" the dvc?

As in if you stop paying on a car loan they come and reposses your car?

Is there a way to do this and still keep some sort of better credit?

YOu could ask to deed it back, some timeshares will do this. You could default and let them foreclose. Other than selling yourself and paying off all money owned, nothing else will leave much for credit. Think of it like a house. A short sale still hurts your credit a lot but not as much as a bankruptcy.

 

[rstackjd]

Depending on how much you owe, you might be able to (force, trick) Disney into rebuying by selling for the minimum amount needed to payoff the note and then they get it on ROFR.

So, for example - say you own 160 AVK and owe $8K. That's $50 per point. Going rate for AKV looks like $88-90, so if you list yours for $60 PP, someone snaps it up right away and Disney exercises ROFR and buys it first - key point - you got a quick sale.

Of course if you owe about what it's worth - you're probably out of luck and need to just talk to Disney about a deed in lieu of foreclosure.

 

[Dean]

Depending on how much you owe, you might be able to (force, trick) Disney into rebuying by selling for the minimum amount needed to payoff the note and then they get it on ROFR.

So, for example - say you own 160 AVK and owe $8K. That's $50 per point. Going rate for AKV looks like $88-90, so if you list yours for $60 PP, someone snaps it up right away and Disney exercises ROFR and buys it first - key point - you got a quick sale.

Of course if you owe about what it's worth - you're probably out of luck and need to just talk to Disney about a deed in lieu of foreclosure.

You may find the resale companies reluctant to list a contract that's way below market as it may hurt their other potential sales. But you can list on your own at various places.

 

[Deb & Bill]

Depending on how much you owe, you might be able to (force, trick) Disney into rebuying by selling for the minimum amount needed to payoff the note and then they get it on ROFR.

So, for example - say you own 160 AVK and owe $8K. That's $50 per point. Going rate for AKV looks like $88-90, so if you list yours for $60 PP, someone snaps it up right away and Disney exercises ROFR and buys it first - key point - you got a quick sale.

Of course if you owe about what it's worth - you're probably out of luck and need to just talk to Disney about a deed in lieu of foreclosure.

You will still be obligated to pay the realtor's fees, usually about 10% of the sale price.

 

[Dean]

You will still be obligated to pay the realtor's fees, usually about 10% of the sale price.

If listed with a broker, not if you find your own buyer. And in most cases, if you find your own buyer you still don't owe the fee if it's listed with a broker with a non exclusive contract.

 

[DIZNEYDAD]

Id take your 160 pts at $50 or so per for AKV.... DD

 

[Dean]

Just reading the thread on the bankruptcy.......

Are there options other than bankruptcy to "give back" the dvc?

As in if you stop paying on a car loan they come and reposses your car?

Is there a way to do this and still keep some sort of better credit?

If you simply stop paying they come get the car, sell it and YOU are liable for the difference between what it sold for and what you owed plus other add on costs. A timeshare is no different. Sometimes a timeshare company will take the deed in Lieu of foreclosure but I've never heard of Disney doing so though I wouldn't be surprised if they did. The problem is that Disney likely doesn't own the loan so it'd be the loan company and not Disney who you'd be dealing with. UNLESS DVC has an agreement in place to take the points back from such a company at a prearranged price, I doubt the loan company wants the points if they can avoid it.

 

[Deb & Bill]

Id take your 160 pts at $50 or so per for AKV.... DD

And DVC would buy it right out from under you.

 

[DIZNEYDAD]

And DVC would buy it right out from under you.

Agreed, my point was that DVC is VERY liquid at the right level... DD