ROFR Thread January to March 2021 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[Sara Sharpe]

Pixie Dust to all of us waiting on ROFR for some GOOD news this week

 

[vicarrieous]

Pixie Dust to all of us waiting on ROFR for some GOOD news this week

I am going to keep throwing it around! PIXIE DUST PIXIE DUST PIXIE DUST!

 

[lisa3635]

lisa3635---$144-$29540-200-BLT-Oct-0/19, 200/20, 200/21, 200/22-INTERNATIONAL SELLER- sent 1/31

I'm hoping this one has better luck since it's an international seller.

 

[mrmagpi]

I am really interested in your response. Although we probably will hear on the same day. I have an identical BLT contract just at 100pts submitted for ROFR on 1/21 but I agreed at $165... Guess we will see.

Yeah, I'll be super bummed if it's taken. We have a trip planned around BLT and those points; so of course Disney cranks up the BLT buybacks.

 

[CSLucas]

i you do not mind me asking, are you looking for resorts that had the recent direct price increases?

Yes- but both contracts together only total 160 points. I'm sure for larger point contracts the math still looks more favorable for resale, but when you are talking about a 40+ year contract, it is a lot easier to justify going ahead and buying direct if the savings aren't more than 20-30% (for us at least, since we do put some emotional value in being "full" members even if that isn't rational). Of course people who are adding on and already have the blue card grandfathered in would probably see it differently, but we will be new DVC owners if our contracts pass. If ours don't pass, I don't think we will buy until next year (we have already paid cash for our trips this year and wouldn't want to mess with rebooking), but our direct/resale conversation will certainly look differently when we do decide to buy.
We knew when we decided to go resale that prices would be increasing in January and again in February at some sold-out properties, but it was a risk we were willing to take because we felt pretty confident about passing ROFR. Now we are feeling a little less confident...

 

[Brianstl]

I suspect they have been waiting to see how many people are late on dues to judge foreclosure - and that for many of the people would might be able to afford DVC, the demographic is likely highly employed and still able to make payments on both mortgage and dues. The bill is also likely a higher priority for those who are on the border to afford it (IMO), since they likely haven't had a good vacation in a year or more at this point.

If we look at the OC Comptroller Website:

Total deeds granted to "Disney Vacation Development" (ROFR or transfer in lieu for foreclosure)...
02/01/2019 - 01/31/2020 = 2987 deeds
02/01/2020 - 01/31/2021 = 1381 deeds

Total judgments granted to "Palm Financial" (foreclosure due to lapse in mortgage)...
02/01/2019 - 01/31/2020 = 299 judgements
02/01/2020 - 01/31/2021 = 95 judgements

I suspect that ROFR will continue to increase. I think there is going to be strong demand for vacations as we go forward. DVC will need the inventory, and I also suspect the other usual avenues for DVC reclaiming sold-out resorts may be a bit light in inventory.

Also think about, it probably takes Disney 30-45 days to close and ready points for resale. They need inventory to sell, and the iron is only going to get hotter as we get later into the year. For families looking to secure a vacation home they can use this year, and assuming everything works out in best-case around the world, now is a great time to purchase with plenty of time to schedule against availability. The "value of flexibility" they can pitch has never looked as good as it does now.

Do trustee foreclosures show up in these totals or is it only judicial foreclosures?

 

[Eldon32]

Do trustee foreclosures show up in these totals or is it only judicial foreclosures?

Because they use a non-judicial foreclosure for dues; you can only see those transfers as deeds being granted back.

The mortgage company however does normal foreclosures, like what would happen with a home mortgage.

 

[Ginamarie]

Because they use a non-judicial foreclosure for dues; you can only see those transfers as deeds being granted back.

The mortgage company however does normal foreclosures, like what would happen with a home mortgage.

I checked out the court website yesterday. It was easy enough to find the DVC properties, how much they were in arrears and it showed how much of a % interest they owned in the property, but I couldn't find other info like how many points were attributed to the contract or which dues were in arrears.

 

[Brianstl]

Because they use a non-judicial foreclosure for dues; you can only see those transfers as deeds being granted back.

The mortgage company however does normal foreclosures, like what would happen with a home mortgage.

On DVC loans aren't you almost always signing a deed of trust and not a mortgage agreement? That would allow the loan holder to use a non-judicial trustee foreclosure if they so chose.

 

[gskywalker]

hmmmmm, no one saying that their contract went through today, so maybe Disney only plans on taking contracts and making everyone else wait till they can annoy us into buying direct,

 

[gisele2]

I suspect that having to put cash paying guests in DVC rooms at deluxe resorts is probably driving some ROFR too. I was looking at cash rooms today and there is a lot of DVC availability for cash bokings.

That can be a good explanation for the ROFR right now.

 

[JETSDAD]

I checked out the court website yesterday. It was easy enough to find the DVC properties, how much they were in arrears and it showed how much of a % interest they owned in the property, but I couldn't find other info like how many points were attributed to the contract or which dues were in arrears.

There can be more owing than what that shows. I believe that the amount at the time of the judgment but there can be ongoing dues and interest. There have been posts previously on this topic and people often end up paying back dues on top of any amount shown. To find the number of points just look for the original deed (use the owner's name in a document search on the comptroller site). You won't be able to find out how many points are available though.

 

[Paul Stupin]

Yes- but both contracts together only total 160 points. I'm sure for larger point contracts the math still looks more favorable for resale, but when you are talking about a 40+ year contract, it is a lot easier to justify going ahead and buying direct if the savings aren't more than 20-30% (for us at least, since we do put some emotional value in being "full" members even if that isn't rational). Of course people who are adding on and already have the blue card grandfathered in would probably see it differently, but we will be new DVC owners if our contracts pass. If ours don't pass, I don't think we will buy until next year (we have already paid cash for our trips this year and wouldn't want to mess with rebooking), but our direct/resale conversation will certainly look differently when we do decide to buy.
We knew when we decided to go resale that prices would be increasing in January and again in February at some sold-out properties, but it was a risk we were willing to take because we felt pretty confident about passing ROFR. Now we are feeling a little less confident...

I understand your reasoning. I added relatively recently Grand Floridian as a home resort, but after buying several resale contracts was not able to find the additional points my wife and I needed for our long term plans. I looked for our particular UY to no avail for the last couple months. Finally, since I’m not the most patient of buyers, I bit the bullet and bought some quite expensive direct points, which I never would have considered if the VGF resale inventory had been greater.

On the plus side, I like being able to potentially use the direct points at the Riviera and other new resorts, including the upcoming Disneyland Tower (where the points could be priced even higher than VGF), the points were added to my account the same day they were purchased, and it’s nice to have the blue card. That said, I can’t delude myself into thinking that this was a prudent financial decision, but don’t regret it either.

 

[Eldon32]

I suspect that having to put cash paying guests in DVC rooms at deluxe resorts is probably driving some ROFR too. I was looking at cash rooms today and there is a lot of DVC availability for cash bokings.

I would not be surprised if they book cash guests under their own points, then reallocate them to breakage if there is availability when the 60 day window opens to do so.

 

[Sandisw]

I would not be surprised if they book cash guests under their own points, then reallocate them to breakage if there is availability when the 60 day window opens to do so.

They do have the right to anticipate availability and actually offer rooms outside of 60 days so some of that plays a role as well with what you may see for cash.

Probably part of why SSR and OKW seem to be there all the time, well in advance of 60 days.

 

[lovethesun12]

I am going to keep throwing it around! PIXIE DUST PIXIE DUST PIXIE DUST!

 

[CSLucas]

hmmmmm, no one saying that their contract went through today, so maybe Disney only plans on taking contracts and making everyone else wait till they can annoy us into buying direct,

I've been obsessively checking my email all day and am considering forfeiting my deposits and just buying direct to save myself this agony! Only partly kidding

 

[mrmagpi]

I've been obsessively checking my email all day and am considering forfeiting my deposits and just buying direct to save myself this agony! Only partly kidding

my wife is right there with you.

 

[stacie_d]

I've been obsessively checking my email all day and am considering forfeiting my deposits and just buying direct to save myself this agony! Only partly kidding

Actually, we did purchase a direct contract last Friday since the price was going up (this week I think) and our use year is February so we were able to get Feb 2020 points. Still waiting on our CCV resale that was sent 12/24...but if it falls thru, I’m fine with it at this point.

 

[sethschroeder]

”You are not the first to pass this way. Nor shall you be the last....” – Maelstrom

I miss that ride