possibly selling...need advice

[daisyx3]

We are looking at selling our points. We have not used any 10 or 11 points. We are kind of "disneyed out", and with the economy the way it is we could use those monthly payments for retirement or college money.
Problem is this: we are only 2 years into a 10 year payment (we've been going to WDW since 2000 but just bought in 2008). We still owe $11600. Even if we sell for $75 a point we would only have $400 left--not enough for the 10% commission TMS wants.
1) does anyone know if we don't make enough for payoff on a sale, do we have to come up with the rest all at once? That's not feasible.
2) any suggestions as to other options? Maybe renting out? Is there a rental market or is that as sluggish as the sales market?
Daisyx3

 

[vicki_c]

As in any real estate transaction, you would have to bring to the closing whatever the short fall may be. Even if you had to do that, it still may be more cost effective than keeping a membership you don't want, with its monthly payment and annual dues, though, so you might want to look at it that way. I don't think SSR would go for more than $70/point.

Or else sit tight and rent out your points and try to recoup some of your costs each year that way.

There is a rental market for all points, at all resorts. Many times people just want to rent points anywhere they can get. There is someone out there that would want your points. If you don't want to do it yourself, you could go through David's Rentals (see the ads here on the DIS) but you will make a little less money than doing it yourself.

 

[JimMIA]

Vicki is right -- you have to provide a clear title in order to close your sale. And, from the looks of things, you are upside-down on your contract -- probably somewhat more than the $900 you estimated.

Another option is to try to find your own buyer privately. You can list the contract on RedWeek, TUG, eBay, etc, and then use one of the experienced DVC closing companies or your own attorney to make sure everything goes smoothly. I think that option might still leave you a little short, but it would be less costly than using a broker.

The disadvantage of selling yourself is that established brokers like The Timeshare Store provide much greater and more targeted exposure than you are likely to get with one of the other sales venues -- AND, they can give you excellent professional advice in an arena that not many people really understand.

You might want to call Jason or one of the other associates at The Timeshare Store and discuss the options with them. They're good people, and they may have some additional strategies for your situation.

 

[JimMIA]

2) any suggestions as to other options? Maybe renting out? Is there a rental market or is that as sluggish as the sales market?

For rentals, you are not limited to any resort. You can rent a reservation at any other resort; your only limitations would be the 7-month booking window and availability.

 

[LouisianaDisneyFan]

Just some added information... this may not apply to you, but might apply to someone else reading the thread. Sometimes when a buyer has experienced hardship and is no longer able to make payments on a financed contract, Disney has been known to take back the contract. The buyer would not receive any funds back from Disney, but the buyer would also not have to continue payments on the contract. I have been told by others that Disney does not report this to the credit bureau as a hit on your credit rating. If a buyer did want to explore this option, I would recommend that the buyer call Contract Administration via Member Services and talk with them about the possibility of doing a Quit Claim Deed.

It's always best to fulfill all financial obligations if possible, but it is better to talk with the other party in the contract when hardship is involved to explore what options might exist.

 

[Sandisw]

Just some added information... this may not apply to you, but might apply to someone else reading the thread. Sometimes when a buyer has experienced hardship and is no longer able to make payments on a financed contract, Disney has been known to take back the contract. The buyer would not receive any funds back from Disney, but the buyer would also not have to continue payments on the contract. I have been told by others that Disney does not report this to the credit bureau as a hit on your credit rating. If a buyer did want to explore this option, I would recommend that the buyer call Contract Administration via Member Services and talk with them about the possibility of doing a Quit Claim Deed.

It's always best to fulfill all financial obligations if possible, but it is better to talk with the other party in the contract when hardship is involved to explore what options might exist.

Great advice!!!

 

[daisyx3]

Oh we are able to make the payments...but we have one child starting college and two coming up behind her. Also, I stopped paying into my 403B 18 months ago (my employer stopped taking it out of my check automatically and I never found other options) so I'd sure like to start paying into that again. The DVC $ would be good for that.
We've decided until we get a little more savings and a little more equity we will hold the points. Maybe next year we will sell them. As for the 2010 points we get Aug. 1, I will either rent them out or figure another use for them. We really wanted to go to the coast next summer so maybe we'll use our points at Hilton Head for a few days. Even if we fly, we would be saving $ over WDW due to not having to get park tickets.
Daisyx3

 

[TiaMaria]

I highly recommend renting. I, just last week, used David's rental service for some points we cannot use this year. I emailed the agreement to him on Monday, he emailed me on Tuesday about making a rental reservation and on Wednesday, I got the money via Paypal.

I got $10.00/point through him. I am saving that money to pay for next years' Member Fees.

Very simple!

 

[BigTigger]

One other thing to add into the positive column is most buyers re-pay the current year's dues already paid at closing (unless the contract is a stripped one).

Given you have a 160 point contract, you may get another $400 or so back in dues already paid to offset the closing costs. That gets you a bit closer to break even ($12K gross proceeds-$1,200 commission-$70 estoppel fees+ ~$400 in dues-$11.6K DVC loan = ($470) owed).

If that net amount due at closing is only a couple of months payments on the loan, it may be best to put this behind you and go on to college savings and retirement plan funding. Best of luck!!

 

[thepops]

The other thing to consider (if you are going to keep your points and possibly use them for HH) is that you can use DVC and not go to the parks. Yes it might be tough being so close, but there is a lot to see and do at the resorts (and you can go to all of them) without hitting the parks. You can even sit over on the beach at the Poly and watch the water parade and the MK fireworks at night.
Just another thought for you.

 

[patdotson]

I would condsider renting the points each year until you get the balance down. The rent will pay the dues and balance will pay down pricipal

 

[serenita05]

Try renting first or selling your years first.

 

[CarolAnnC]

Since this post was bumped up from last July, the discussion is dated at this point. Thanks all!