Resale Nightmare

[kverdon]

Well sometimes buying DVC by resale can become a nightmare. It has been so for us. We started the process back in August when we bid on a 100 point property at BCV for $80 a point. We used one of the more reputable Timeshare resale companies listed on this site. Disney took their maximum time and ROFR'd us at the last minute. We thought we were lucky in that the same day a 100 pt property with 100 banked points became available at Animal Kingdom (our second choice). We bid on the contract and it passed ROFR. That is where the trouble actually began. We were all set to close on Dec 9th. In Oct. we were notified by the Timeshare company that the property was part of a divorce settlement and due to the laws of the state where the divorce was finalized (Pennsylvania) all real property was frozen for 90 days post settlement. This pushed our closing out to Jan 20th. In hindsight we should have bailed at this point but we decided to stick it out as it was a nice contract and we won't be going back to WDW until Oct. We waited it out and were thrilled when we got the final paperwork from the Title company last week and thought we were going to be owners this week. Wrong! We called the Timeshare company and our agent informed us that there was a major problem in closing. The seller was behind $1500 to Disney in mortgage payments and had not paid the Jan. Maint. fees (They were to be paid by us at closing). The seller did not have the money to pay Disney so the title could not clear and transfer to us. Since it had 100 banked points we considered upping our part a few 100 but the seller could not come up with any cash at all. Since the seller now won't be able to meet his deadline for yearly maint he's going to be hit with late fee's from Disney come Feb 1 which will put it ever further out of reach so it all fell through today. If we try again its back to square one!

better luck to you all,

Kevin and Mona

 

[cvjw]

We too, had a bad resale experience. We tried to buy a BWV contract that was part of an estate. The contracts had passed to a sister and brother, and they wanted to sell. At least, the sister did. The brother dragged his feet. It took him weeks to sign the contract. We should have bailed then. After passing ROFR, the contract went to closing. It was discovered that some paperwork was missing. According to the agents, all the brother needed to do was go to his courthouse and get a copy and send to Disney. A month later, and he still hadn't done it. We cancelled the contract, and were happy to no longer have to deal with him. We bought another contract within a couple of weeks. and it was a breeze to close. Hopefully you will find another one soon.

 

[BlackRock]

Sorry to hear you have had such problems; I bought two resales and they both went well.

Blackrock

 

[LouisianaDisneyFan]

It's so tempting to bid on a distressed contract because the sellers are often willing to take a much lower price... but sometimes that lowball offer does come with a HUGE price in grief at closing. We recently made an offer on a BWV contract with a resale company we had sucessfully worked through in the past. The associate I spoke with when making the offer was not the same one we had worked with before (our previous associate as out of the office that day). The next day, I got a call back from our original associate encouraging us to withdraw our offer. She told us that the sellers had backed out of TWO previous contracts at the last minute (after the contracts had already passed ROFR) and that she knew we wanted to beat the March 20 deadline. I was grateful for the call.

The next time we make an offer, I plan to ask the broker up front if he/she knows of any distress with the contract. If there's a flaky history of the seller accepting and then backing out of an offer, or if the contract is being managed by a legal entity rather than an individual, I think we will refrain from making the offer.

I hope you find something that suits your needs soon. Good luck!

 

[Plutofan]

So sorry to hear about your resale experience. At least there are a lot of contracts up for sale so you should be able to find another one.

 

[bobbiwoz]

I am afraid that we are in the middle of something like this. We've passed ROFR in November, our full payment has been sent nearly a month ago. I've bought 3 resale contracts before, without hitches. I'm concerned about the MF's that were due, we're supposed to pay them, but we didn't bargain for late fees.

Bobbi

PS. I just realized that we've bought 4 resales prior to this one.

 

[mdsd8700]

The next time we make an offer, I plan to ask the broker up front if he/she knows of any distress with the contract. If there's a flaky history of the seller accepting and then backing out of an offer, or if the contract is being managed by a legal entity rather than an individual, I think we will refrain from making the offer.

Thanks for this great tip. My husband and I are currently looking at a resale contract for BLT wanting to get in before the changes to resale purchases take effect. We have already been told that closing will be delayed until May 27th due to a planned vacation by the seller. Which we were told by the timeshare company (a reputable one mentioned on these boards) will not affect the benefits as we will make the offer before the March 20th deadline. However I would have never thought to make sure of the issues that LouisianaDisneyFan mentioned. Thanks for the head up, it is appreciated!

 

[DVCGeek]

Sorry to hear about everyone with these resale problems... GL getting the points you want!!!

 

[Dean]

Well sometimes buying DVC by resale can become a nightmare. It has been so for us. We started the process back in August when we bid on a 100 point property at BCV for $80 a point. We used one of the more reputable Timeshare resale companies listed on this site. Disney took their maximum time and ROFR'd us at the last minute. We thought we were lucky in that the same day a 100 pt property with 100 banked points became available at Animal Kingdom (our second choice). We bid on the contract and it passed ROFR. That is where the trouble actually began. We were all set to close on Dec 9th. In Oct. we were notified by the Timeshare company that the property was part of a divorce settlement and due to the laws of the state where the divorce was finalized (Pennsylvania) all real property was frozen for 90 days post settlement. This pushed our closing out to Jan 20th. In hindsight we should have bailed at this point but we decided to stick it out as it was a nice contract and we won't be going back to WDW until Oct. We waited it out and were thrilled when we got the final paperwork from the Title company last week and thought we were going to be owners this week. Wrong! We called the Timeshare company and our agent informed us that there was a major problem in closing. The seller was behind $1500 to Disney in mortgage payments and had not paid the Jan. Maint. fees (They were to be paid by us at closing). The seller did not have the money to pay Disney so the title could not clear and transfer to us. Since it had 100 banked points we considered upping our part a few 100 but the seller could not come up with any cash at all. Since the seller now won't be able to meet his deadline for yearly maint he's going to be hit with late fee's from Disney come Feb 1 which will put it ever further out of reach so it all fell through today. If we try again its back to square one!

better luck to you all,

Kevin and Mona

I'm sorry it's been this way for you, most go OK but it's a risk one should consider up front. I did want to point out that it sounds like the resale company has been appropriate and I don't see any evidence they were at fault in any of this. Your second sentence made me wonder though.

 

[kverdon]

My only possible issue with the Timeshare company is that the representative I worked with implied that they knew the seller was behind on his payments to Disney and thus title was not clear and they did not disclose this information to us. I'm am not sure exactly when in the process they became aware of it but it had to be back in Nov/Dec because he told me that the seller had told them that he was going to get it paid off by closing.


Kevin and Mona

 

[nukker7]

Really sorry to hear this Kevin and Mona. Don't give up! You still have from now till March 20th to get your contract in to ROFR.

Good Luck Guys!

 

[bobbiwoz]

We too, had a bad resale experience. We tried to buy a BWV contract that was part of an estate. The contracts had passed to a sister and brother, and they wanted to sell. At least, the sister did. The brother dragged his feet. It took him weeks to sign the contract. We should have bailed then. After passing ROFR, the contract went to closing. It was discovered that some paperwork was missing. According to the agents, all the brother needed to do was go to his courthouse and get a copy and send to Disney. A month later, and he still hadn't done it. We cancelled the contract, and were happy to no longer have to deal with him. We bought another contract within a couple of weeks. and it was a breeze to close. Hopefully you will find another one soon.

What penalty if any did you have to pay for cancelling the contract? We are so frustrated, but the only information that I can see about cancelling is for the first basic transaction...the one where only the deposit had been paid. We have paid the entire amount, but the seller has not sent in the final papers correctly. I have sent 2 e-mails to our broker and they have not been answered, and we haven't gotten a call back.

 

[hsattler]

Sorry to hear about your issues.

 

[Dean]

What penalty if any did you have to pay for cancelling the contract? We are so frustrated, but the only information that I can see about cancelling is for the first basic transaction...the one where only the deposit had been paid. We have paid the entire amount, but the seller has not sent in the final papers correctly. I have sent 2 e-mails to our broker and they have not been answered, and we haven't gotten a call back.

Technically I'm not sure there's any requisite costs. If canceling for reasonable cause, there really should be no costs to cancel other than anything paid OOP like mailings, notary, etc. Certainly the closing company could pass on some of their costs that were incurred. The contract should spell out the risks and responsibilities but in the absence of spelled out costs, the risk should be elsewhere. Maybe TSS could speak to this subject in a more informed and authoritative way.

 

[bobbiwoz]

I am very happy to say that our broker now has the deed, so things can move forward. I know we're sort of in the "limbo" time for 2011 maintenance fees, that is, before the penalty period. We intend to pay those, and we'll see how things go from here.

I do hope the OP gets some good news soon, and anyone else that came up with a glitch in the resale purchase.

Now I hope I have good fortune in using the banked points at 7 months for a September reservation.

Whew! Bobbi

 

[BWV Dreamin]

I am very happy to say that our broker now has the deed, so things can move forward. I know we're sort of in the "limbo" time for 2011 maintenance fees, that is, before the penalty period. We intend to pay those, and we'll see how things go from here.

I do hope the OP gets some good news soon, and anyone else that came up with a glitch in the resale purchase.

Now I hope I have good fortune in using the banked points at 7 months for a September reservation.

Whew! Bobbi

The broker should be holding your money in an escrow account. What date does your contract state for closing? If its past this date, technically you could get out of it. Since the broker has your funds, he is obligated to release them, minus any penalties you may incur from breaking the contract (deposit, possibly commission). But that is it at the worst. Get on your broker ASAP! Ask for their manager, etc.

 

[BWV Dreamin]

Good news Ms. Bobbie!!!

 

[kverdon]

Well the only "good news" for us is that we are not out any cash. The seller failed to me his part of the contract by not being able to meet the closing deadline that we originally signed, which was Dec 9th. We gave him a verbal extension till Jan 25th but he still could not make up his payments to close the deal. As there are not current properties we are interrested in, the escrow company is sending us back our deposit and we are back to square one. The March 20th Restrictions are not THAT much of an issue to us as we would only every consider using this for WDW. Still rather frustrating to go from being an owner this week to starting all over.

Kevin and Mona

 

[bobbiwoz]

Well the only "good news" for us is that we are not out any cash. The seller failed to me his part of the contract by not being able to meet the closing deadline that we originally signed, which was Dec 9th. We gave him a verbal extension till Jan 25th but he still could not make up his payments to close the deal. As there are not current properties we are interrested in, the escrow company is sending us back our deposit and we are back to square one. The March 20th Restrictions are not THAT much of an issue to us as we would only every consider using this for WDW. Still rather frustrating to go from being an owner this week to starting all over.

Kevin and Mona

I hope you find something you want and that that process is a smooth one!



To BWV Dreamin, DH is away this week and he had the majority of the papers with him, but in what I had there was not a tentative closing date. This resale is for HHI and the title company didn't seem to be as familiar with DVC as we would have liked. Someone in that office told DH that it would take 6 WEEKS from the closing until the points are in our account. Our broker assures us that that's not the case. I do think that we're on our way now.

 

[rillsung]

Wow I thought we just had a nightmare but it doesn't even compare to some mentioned here. Our first contract last fall was a breeze and I was so excited when I was able to use the points for a trip 6 weeks after closing! Our second contract was a bigger problem. Most of our trouble was with the title company apparently having too many contracts to deal with, and therefore lack of customer service. We had several issues with attempting to close like getting the necessary info from the title company. The seller's closing paperwork was mailed didn't get there and didn't get there and a week after it was supposed to arrive (and many calls to the resale place and our rep from us) they finally tracked it down. Apparently the post office had attempted delivery on Saturday when they were closed and didn't reattempt. But my question is don't they leave a slip telling the title company that? And since the title company was expecting the paperwork, why didn't they attempt to track it down?

IThis resale is for HHI and the title company didn't seem to be as familiar with DVC as we would have liked. Someone in that office told DH that it would take 6 WEEKS from the closing until the points are in our account. Our broker assures us that that's not the case. I do think that we're on our way now.

7-10 business days is what it takes. For both of our contracts, it took about a week. We closed last Thursday and got our points yesterday.