Resale question

[TLP127]

I added on points and my guide and I got to talking about reselling in the future. He said that if you finance, the contract has to be pain in full before you can resell the contract. Does anyone know if this is true? I have a friend who owns and was considering selling, because they can't afford their loan payments. They were assuming the loan would be paid off from the resale dollars.
Thanks!

 

[RobDoc]

Technically, it is correct that the contract cannot be sold until the loan is paid off. However, in practice this should not be a deterrent to selling a contract with an existing mortgage since the mortgage will be satisfied at the time of the closing. This is one of those things the Closing Agent will make sure is accomplished.

Your friend can sell the contract without worry since the outstanding loan will be paid at closing to satisfy the DVC mortgage.

 

[LisaS]

Make sure your friends do their homework to determine whether the net proceeds from the sale (after paying the resale broker's commission, assuming they go that route) will cover the mortgage balance. If they purchased within the last couple of years, they may be selling at a loss. Once you factor in the sales commission, the balance may be less than what they owe.

 

[BWV Dreamin]

This would only be a concern if financed through Disney. If you have a home equity loan or personal loan, this would have no bearing. You would still be liable for repayment regardless of ownership. But naturally, you would want to pay these off with the proceeds of the sale.