resale settlement - date passed...no seller paperwork

[Deb & Bill]

The buyer is usually in a much bigger hurry than the seller. Many sellers are either resentful or sad that they are selling (there are some that look at it differently, but those are fewer and further between). I think if someone is selling out of hardship, they may even intentionally let deadlines pass, etc just to be a pain.

We've sold two contracts. We signed our paperwork immediately because we were eager to get the money. On our third contract we had on the market, we got a buyer, went through ROFR and the buyer backed out. We got another buyer, went through ROFR and that buyer also backed out. In both cases we got half of the deposit that they had put down. The agent got the other half. We still have that contract.

We were not resentful, nor were we sad to be selling. We were glad to get out from under the extra dues.

And if someone is selling because they need the money, they are going to do everything they can to get that money fast. Not drag their feet.

But the owner who is selling and still owes DVC money from financing the original purchase and will still owe Disney money after they give them all the proceeds of the sale, well, they may be dragging their feet to get the extra money they need to close the sale.

 

[JimMIA]

But the owner who is selling and still owes DVC money from financing the original purchase and will still owe Disney money after they give them all the proceeds of the sale, well, they may be dragging their feet to get the extra money they need to close the sale.

OR...
because they never really thought things through -- and because the broker didn't do any due diligence at all, or didn't explain the situation to the sellers -- the seller really didn't know what they were doing.

Then, when they think they've got their DVC contract sold, the broker sends them an ugly closing statement that says they have to pay IN $11,503 because they owe dues, commission, and they're upside-down on their loan.

And they can't do that.

That's the scariest (and probably not so unusual) scenario with many Fidelity listings.

 

[Mlissa88]

Our purchase fell through today. I called to prod about the three weeks with no points only to find out my sellers were divorcing and declaring bankruptcy. Back to the drawing board I guess.

I have a feeling that's the case with this one too.

 

[M5ward]

Has anyone, as a buyer, ever seen their settlement date pass and the seller hasn't even returned the paperwork? I'm so irritated right now. Should have settled on Friday and when I called to see what the status was, I was told that the seller did not return their paperwork.

I know that resales can have problems and delays....I've seen a fair share in the past on the boards and with my own experience (my last one took 90 days ) but seriously? No paperwork? And no phone call from the title co or the broker to see what the hold up is?

Now I understand the beauty of buying direct..... There are points that are going to expire because the seller is not concerned about returning paperwork or responding to phone calls....

Still waiting to hear from the title co on the status....I won't hold my breath.

Thanks for letting me vent...

I'm sorry you're going through all this. We just closed on a BWV resale contract yesterday..31 day from start to finish. I hope this resolves for you quickly. Anticipation is always the hardest part of EVERYTHING.

 

[Mlissa88]

We've sold two contracts. We signed our paperwork immediately because we were eager to get the money. On our third contract we had on the market, we got a buyer, went through ROFR and the buyer backed out. We got another buyer, went through ROFR and that buyer also backed out. In both cases we got half of the deposit that they had put down. The agent got the other half. We still have that contract.

We were not resentful, nor were we sad to be selling. We were glad to get out from under the extra dues.

And if someone is selling because they need the money, they are going to do everything they can to get that money fast. Not drag their feet.

But the owner who is selling and still owes DVC money from financing the original purchase and will still owe Disney money after they give them all the proceeds of the sale, well, they may be dragging their feet to get the extra money they need to close the sale.

Understood. Makes complete sense. That's why I was confused as to why someone wouldn't want to make the sale final. Well... I'd hate to lose this contract but I may not have a choice.

 

[Mlissa88]

I'm sorry you're going through all this. We just closed on a BWV resale contract yesterday..31 day from start to finish. I hope this resolves for you quickly. Anticipation is always the hardest part of EVERYTHING.

Well...I've been pretty fortunate with my purchases so far. Only with one did we wait for a long time and that was due to the rush of 3/20. This however, is way passed the rush period.

 

[Mlissa88]

OR...
because they never really thought things through -- and because the broker didn't do any due diligence at all, or didn't explain the situation to the sellers -- the seller really didn't know what they were doing.

Then, when they think they've got their DVC contract sold, the broker sends them an ugly closing statement that says they have to pay IN $11,503 because they owe dues, commission, and they're upside-down on their loan.

And they can't do that.

That's the scariest (and probably not so unusual) scenario with many Fidelity listings.

I checked the Orange Co. records and there's a lien. so I guess it's either defaulted for payment or maint. dues.

 

[JimMIA]

I checked the Orange Co. records and there's a lien. so I guess it's either defaulted for payment or maint. dues.

I'd check and see if there are any mortgages recorded.

If a lien is for dues only, that's probably only a few hundred dollars and shouldn't be a big problem. That would just be routinely settled at closing, and about the only real effect on you would be that they wouldn't be able to bank points if you wanted them to. On the bright side, neither could they make reservations without telling you about them!

The big risk to you (not in financial terms, but in terms of the deal possibly never closing) is that they're upside-down on a mortgage.

 

[LisaS]

I'd try to find out which one(s). If it's an upside-down mortgage or divorce situation, those could be permanent impediments to them ever closing.

If it's just a delay, that's workable. But I'd hate to see you hang on, hoping against hope, and then have the whole thing cave in. Better to have a horrible ending than a never-ending horror.

I agree with Jim. Rather than speculate, call and insist that they tell you what is going on. Once you have the facts, you can decide how to proceed. Hopefully your contract allows you to walk away with a full refund if your contract doesn't close by a certain date.

 

[gray52]

OR...
because they never really thought things through -- and because the broker didn't do any due diligence at all, or didn't explain the situation to the sellers -- the seller really didn't know what they were doing.

Then, when they think they've got their DVC contract sold, the broker sends them an ugly closing statement that says they have to pay IN $11,503 because they owe dues, commission, and they're upside-down on their loan.

And they can't do that.

That's the scariest (and probably not so unusual) scenario with many Fidelity listings.

OH GEEZ!!! Never even gave this scenario a thought! We were talking last night about buying a resale BLT contract. I wonder if this will be the case with a number of BLT resales (SSR or AKV as well)? Am i crazy to think most of the BLT will be upside down on their loan? Anyone know what percentage of the DVC's are financed? Has to be a lot, right?

 

[scubakat]

We are in the same boat... our contract passed ROFR on 6/20... on our contract it states that “shall be closed on or before 07/20/11 unless extended by the title Company for administrative reasons”... we had been waiting on the sellers to send their closing docs in and been asking our agent what the status was... they got back to us today and said that the sellers would not be back in the country to sign the contract until 7/29.. I am really tempted to walk away from the contract right now but not sure if we are stuck since they are saying that it is administrative reasons..

 

[dvcnewgirl]

I walked away from a contract for this same reason. I have at times regretted that. The paperwork came in on the day that we told them to cancel it but we still walked because we were so frustrated. Anyway, I say if you can be patient wait a bit. Think about if you will regret your decision later. ( I did)

 

[Chuck S]

I've never been a seller so I'm not sure what they need for closing. What cash is required to close on the seller's end? I'm paying the closing costs - so couldn't everything else come out of the money from the sale?

Not necessarily. If the seller financed, and owes more than the selling price, the seller will need to come up with the money to satisfy the financing before the contract can close.

For instance, if the seller purchased, say, last year at $100 per point and the resale is $85 per point, the seller would need to pay $15 per point (more or less, depending upon how much their down payment was) before the deed could be transferred. THat would be in addition to whatever you pay for the contract.

 

[Mlissa88]

Well...I fold. Op here finally deciding to get my money back. I gave the seller enough time. I've missed other contracts while waiting for this one.

I guess the only thing I won't get back other than almost 3 months of time is the money it cost me to wire the funds.

end result was the contract was in bankruptcy and I could end up waiting a long, long, time for them to straighten that out...

It was a small contract so maybe I'll buy direct from disney...I won't get as many points but it will be fast and frankly I'm a bit soured on resale right now.