question on a loaded contract that may have distressed points by the time I get it

[pmaurer74]

Ok. So I am looking at a contract that has a Feb. UY and has about 230 or so points right now. Assuming everything goes through and I get the points by October, would you asked them to bank the points so I can use them in June 2016? Also, I am thinking of renting the current points to help pay for the initial purchase. Can you rent banked points? How does that work? When would I have to bank the points by assuming I receive the points in 3 months.... sorry for the hypothetical...

 

[Minniesgal]

ask for them to be banked if they can with your offer

 

[DisDadDVC]

Assuming those are all 2015 points, you/the seller have until Oct 1 to bank them. And yes, you can rent banked points. You are never really "renting" points. You just make a reservation with your own points in someone else's name.

 

[pmaurer74]

would the reservation have to be after Feb. 2016 in order to use banked points?

 

[pangyal]

I would consider "distressed" to be expiring within 60 days, so you should be fine with that long a timeline .

 

[JimMIA]

would the reservation have to be after Feb. 2016 in order to use banked points?

Sorry, I misread this initially. YES, the reservation would have to START on or after February 1, 2016.

But you would NOT have to wait until Feb 1 to book the stay. This is an important point to understand clearly about Use Year. Use Year has NOTHING at all to do with when you can book a reservation. You will be able to book a reservation whenever you are fully in the DVC system and have control of the account.

If you come to an agreement with the seller, I would strongly recommend having them bank the points immediately (before the deal goes to ROFR). If you wait for closing, you could get stuck with those points unbanked and not be able to do anything with them.

 

[JimMIA]

Assuming those are all 2015 points, you/the seller have until Oct 1 to bank them.

Actually, through September 30; on October 1, you are out of luck. Don't mean to nit-pick, but technicalities can kill you with banking deadlines.

 

[JimMIA]

I would consider "distressed" to be expiring within 60 days, so you should be fine with that long a timeline .

The term "distressed" usually applies to some specifically required number of days prior to arrival. For example, if you are renting points through a broker, they may have a "60-day distressed" category which rents for a lower price and nets the owner less.

But I think what OP was talking about is a situation where they might not be able to bank the points, and might be unable to use them between closing and January 31. In that case, the points would be worthless to OP. I think that's what she meant by "distressed."

 

[DisDadDVC]

Actually, through September 30; on October 1, you are out of luck. Don't mean to nit-pick, but technicalities can kill you with banking deadlines.

Ah yes, sorry, you are correct. I have a FEB UY and was looking on my booking page and it says:

"If you are going to bank Vacation Points, you need to do so before October 1, 2015."

The key word being before...

 

[pangyal]

The term "distressed" usually applies to some specifically required number of days prior to arrival. For example, if you are renting points through a broker, they may have a "60-day distressed" category which rents for a lower price and nets the owner less.

But I think what OP was talking about is a situation where they might not be able to bank the points, and might be unable to use them between closing and January 31. In that case, the points would be worthless to OP. I think that's what she meant by "distressed."

Ah, yes- I was reading it in "broker-ese" as that's where I have most often seen the term. Thanks for parsing her question correctly!

 

[pmaurer74]

still new to some of the terminology. Thanks for clearing it up for me.

 

[Dean]

Ok. So I am looking at a contract that has a Feb. UY and has about 230 or so points right now. Assuming everything goes through and I get the points by October, would you asked them to bank the points so I can use them in June 2016? Also, I am thinking of renting the current points to help pay for the initial purchase. Can you rent banked points? How does that work? When would I have to bank the points by assuming I receive the points in 3 months.... sorry for the hypothetical...

I'd making banking the points part of the contract. A related question is how to value points that can't be banked and/or that you might or might not be able to use or even rent. My view is you value the contract as if they are not there and if you can get something out of them, you look at that as a windfall. That might happen in this contract if you missed a banking deadline or the points were already banked. One also needs to pay attention to what dues the buyer will owe at closing and the next dues cycle for points one didn't have real use out of.

 

[Starshine]

To give you an idea of timelines, we just purchased a resale contract. I made the offer on February 26th, and the points weren't loaded to my account until June 8th. If you are a brand new member it may be a little longer than that to get your member number and set up access. I would definitely have the banking points be part of the contract since I don't think you would have everything in place by the end of September.