Selling questions? options? ideas?

[huskies90]

I have a friend who has 200 points at BLT purchased with her fiancée prior to breaking the engagement. They financed the purchase and since breaking up, she has continued to make the monthly payments and dues payments as well as been the one using the points. The 200 points, dues, and monthly payments are a lot for her to handle at this time and she would like to get rid of the contract and monthly payment as well as the connection to her ex fiancée but she would also like to remain a dvc member in some way (with a smaller contract)

What are some options in this situation? Can she split her 200 point contract and sell half of it? Would it just make sense to sell the whole thing and rebuy something smaller? What happens to the points if she stops paying the loan and dues? Foreclosure? (obvious credit hit). Just thinking of creative options. What would you advise if a friend came to you with this dilemma?

 

[chalee94]

Can she split her 200 point contract and sell half of it?

no.

Would it just make sense to sell the whole thing and rebuy something smaller?

this is an option but she may not recover enough after commissions to pay off the loan.

What happens to the points if she stops paying the loan and dues? Foreclosure? (obvious credit hit).

yep - disney forecloses and takes it back. i'd assume there's a credit hit but i'm not sure if disney reports it as an unpaid debt or not.

edited to add an alternative: she may want to rent pts for a few years (through david's service if she doesn't want to deal with the details herself) to help make the payments.

 

[huskies90]

yep - disney forecloses and takes it back. i'd assume there's a credit hit but i'm not sure if disney reports it as an unpaid debt or not.

She just wants to get out from under the ~ $320 per month she is paying for the loan/dues. Probably kills any chance of repurchasing, though. I wonder if others have done this? Anyone?

she may want to rent pts for a few years (through david's service if she doesn't want to deal with the details herself) to help make the payments.

Even is she rented all 200 pts, it would only cover about 1/2 of her monthly payment and then she'd get no use value at all. But if she sold and bought a new small contract (say 100 pts at SSR), her payment would equal about the net of renting current contract but at she at least would get to use the 100 pts/year.

 

[Deb & Bill]

...But if she sold and bought a new small contract (say 100 pts at SSR), her payment would equal about the net of renting current contract but at she at least would get to use the 100 pts/year.

If she sells, she will probably sell it at a loss and still have to pay the commission on the sale which is 10% of the selling price. How much longer does she have to pay on it?

 

[a742246]

My questions would be:

How much does she own on the financing?
How long before she is paid off?

 

[huskies90]

$15,500 with 8 years remaining

 

[Deb & Bill]

$15,500 with 8 years remaining

Yikes, she might as well let Disney take it back. She could try to sell it for $100 a point and at least have enough to pay off the loan and the commission. Maybe Disney would ROFR it. But she would stil have to pay the commission.

 

[huskies90]

Yikes, she might as well let Disney take it back. She could try to sell it for $100 a point and at least have enough to pay off the loan and the commission. Maybe Disney would ROFR it. But she would stil have to pay the commission.

I don't think she'd get $100/pt but assuming she gets $90, that would be $18,000 which should be enough to pay off the loan and pay commission at 10-12% rate, right?

I just thought of another question, can the loan be refinanced like a mortgage to lower the interest rate and/or to remove the ex from the deed?

 

[Deb & Bill]

I don't think she'd get $100/pt but assuming she gets $90, that would be $18,000 which should be enough to pay off the loan and pay commission at 10-12% rate, right?

I just thought of another question, can the loan be refinanced like a mortgage to lower the interest rate and/or to remove the ex from the deed?

Yep, $18,000 minus 1800 would be $16,200.

Finding another loan would be very difficult unless she has a credit union or something that will give her a home equity loan. But then she risks losing her home if she can't pay off the loan.

 

[crisi]

Is there a chance she could do an in-family sale - a parent or a sibling with a love for Disney? She might be able to share the contract under those terms. I'm not a big fan of sharing a contract among unrelated adults, but it might work out better than selling outright. One party or the other could buy out the contract over the long term, or sell it when its been used enough to be able to get the money out of it.

 

[a742246]

$15,500 with 8 years remaining

She has 200 BLT points, owes $15,500 with 8 years remaining and pays $320.00 a month.

I think she has no choice but to sell. With a little luck she can sell it for what is owed on it. Remember, the broker fees for selling is 10%. She would have to get $87.00 a point just to break even. Crisi has a point with finding a relative or friend to buy it from her.

There is enough equity in these points so I wouldn't advise her to risk ruining
her credit by defaulting on the finance company.

She may want to call member accounting and see if they can do something.

But I think her best bet is to sell.

 

[luckyman_apd]

Is her ex fiance's name still on the contract as an owner? If so, for her to sell, he has to sign off on it as well. Is his name on the loan? He will share some of the credit hit if she lets Disney take it back.

Selling it sounds like the best deal as $87 is doable to sell, even if takes a little while on the market. But getting his signature to sign off on the deal may be a hassle.

 

[mjc2003]

She should have no problem selling for about a break even price--she should not be looking to make money, just get out from under the monthly cost. If she gets hosed for a $1000 loss, that's only 3 more months of carrying a payment she can't afford anyway so she might have to embrace that possibility.