Selling a Contract?

[Alice-in-wonder]

Thinking about selling a contract at and keeping our other contract. We don't really need both. They are both financed. Both were bought directly from Disney and have the same UY. Not sure what do do, just want to lower our monthly payments. Any advice?

 

[Dean]

Thinking about selling a contract at and keeping our other contract. We don't really need both. They are both financed. Both were bought directly from Disney and have the same UY. Not sure what do do, just want to lower our monthly payments. Any advice?

You might consider keeping them and renting out from time to time. You'll obviously get a lot less dollars from the SSR per point and will have to pay a commission, usually 10%. Depending on when you bought the SSR, it's very possible you may owe more than you could sell it for.

 

[wildernesslodgefan]

 

[JimMIA]

Selling either contract, obviously you will have to pay off the loan with the proceeds. If you are upside down, you will have to put money IN at closing.

Also, if you use a broker to sell, plan to pay 10-12% commission. You'll also have some minor seller fees to pay.

My guess is that, with either contract, even if there was no loan, you would take a loss just because the resale prices are lower than what you probably paid. You can get an idea by looking at the TTS listings, with special attention to the Sale Pending listings which show actual selling prices rather than asking prices.

You have to do the math for yourself, but if my guesses are close to correct, Dean's advice of renting your points would be very sound.

 

[Alice-in-wonder]

Thanks. Technically, haven't closed yet on the new contract and having second thoughts on having both!

 

[JimMIA]

Thanks. Technically, haven't closed yet on the new contract and having second thoughts on having both!

If you haven't closed yet, I'd cancel. That's the foolproof way out without losing any money.

Use the other contract for a few years and add on when you're sure the time is right.

 

[bookwormde]

You can always rent a reservation or transfer points in until you know that your need the extra points and can easily afford them.

If you have any doubts, cancel the currnet purchase!!

bookwormde

 

[Dean]

If you haven't closed yet, I'd cancel. That's the foolproof way out without losing any money.

Use the other contract for a few years and add on when you're sure the time is right.

Except they may be past their cancellation period.

 

[Alice-in-wonder]

One is not beyond my cancellation period.

 

[Dean]

One is not beyond my cancellation period.

Cancellation period is 10 days from the date you sign the contract (with a couple of exceptions). If you can cancel one and are unsure, I'd certainly do so.

 

[Alice-in-wonder]

I'm hesitating to cancel because of the financing issue. I was already approved, and who knows how hard it will be to get approved for financing down the road. Disney as you probably know has made it harder to get preferred financing unless you have a very high credit score without any dings. Still unsure about what to do because we got the preferred financing with our new BLT 100 pt. contract, and want to keep it for that reason.

 

[Dean]

I'm hesitating to cancel because of the financing issue. I was already approved, and who knows how hard it will be to get approved for financing down the road. Disney as you probably know has made it harder to get preferred financing unless you have a very high credit score without any dings. Still unsure about what to do because we got the preferred financing with our new BLT 100 pt. contract, and want to keep it for that reason.

Check with DVD but it's likely your financing is totally separate on the 2 contracts.

 

[Alice-in-wonder]

Yes, my first 50 pt contract with SSR is standard financing, and my new add-on BLT 100 pt contract is preferred financing, hence my hesitation.

 

[Dean]

Yes, my first 50 pt contract with SSR is standard financing, and my new add-on BLT 100 pt contract is preferred financing, hence my hesitation.

I'm assuming you need more than 50 points and would prefer BLT. Had it been the other way, it seems like a no brainer to cancel SSR if you don't need 150 pts. Personally I'm not financing such a purchase and given your specific circumstance I'd cancel BLT and start saving for a later add on or resale purchase (depending on what does or does not happen with rule changes). Given that Mortgage rates have been under 4%, I certainly wouldn't be financing at the levels charged for timeshares. Good luck with your decision.

 

[Alice-in-wonder]

Thank you...have decided to keep the 50 pt contract for now, and not keep the 100 pt contract. I will add-on when the time is right!

 

[DVC SSR Owner]

Smart move!!