They did what?! Resale issues

[RoseGold]

How does a buyer ensure they don't get involved with a seller going through bankruptcy?

Doesn't the broker make sure the title is free and clear?

The title is fine. You are buying an asset at market value, just like if you had bought a car or a house or a couch on Craigslist from someone who you had no idea was going into bankruptcy later (as opposed to hiding an asset in bankruptcy, which is straight up fraud).

There are many kinds of bankruptcy, and the trustee can have power to void transactions. This is called clawback, but there are so many other ways bankruptcy can square it, especially for a relatively small asset like this. Clawback is rare and usually in giant cases. I guess it's theoretically possible to get DVC clawed back, I can't find a single case of it ever happening on these forums or the other big one.

Most of the time, people use bankruptcy to get rid of worthless timeshares, so this situation is backwards and people want to make sure they can get the timeshare off their back when they file. This includes DVC, which many buyers financed and are underwater.

I'm not even sure why the broker would care, unless it looked like the seller wasn't going to be able to come up with the cash to close the deal. That's where I'm guessing the problem came, especially after the deal wasn't going to work when the points were gone. It's possible to be underwater on a Poly contract purchased direct several years ago, if financed.

 

[DebLovesPooh]

Thank you for the update! Many of us were thinking of you and rooting for you. Although you were not left unscathed, it sounds like you had the best possible outcome given the circumstances. Good luck finding your next contract!

Deb

 

[Cupcake232]

That is very sad that they did this. Sounds like they had sellers remorse and figured they might as well use it up because they would owe commission anyway?

My resale contract required me to get $15/pt for missing points which is why the title company i used held funds until I knew I got what I paid for,

It is so frustrating that they would do this.

Hi Sandi! I just had points loaded to my newest resale contract and it was 90 points shy. Do you know if Mason Title holds $ to cover this should it happen? I’m just wondering how I get the money from the seller after we have already closed and I haven’t heard back from my broker or Mason Title today about the discrepancy.

 

[KAT4DISNEY]

Hi Sandi! I just had points loaded to my newest resale contract and it was 90 points shy. Do you know if Mason Title holds $ to cover this should it happen? I’m just wondering how I get the money from the seller after we have already closed and I haven’t heard back from my broker or Mason Title today about the discrepancy.

Did they just load today and did you check with DVC? Sometimes DVC splits up loading current and banked or borrowed points and you might find that within the week the points are there.

 

[Cupcake232]

Did they just load today and did you check with DVC? Sometimes DVC splits up loading current and banked or borrowed points and you might find that within the week the points are there.

Thank you for that. You’re helping me breathe a little easier! (Or at least wishful thinking) Lol I didn’t know that. They loaded all of my future points but only 60 of the 150 for this year. Do you think I should call Member services tomorrow then?

 

[KAT4DISNEY]

Thank you for that. You’re helping me breathe a little easier! (Or at least wishful thinking) Lol I didn’t know that. They loaded all of my future points but only 60 of the 150 for this year. Do you think I should call Member services tomorrow then?

Yes, I'd start there tomorrow and see if you can get an explanation. If it is something where they either made a mistake or didn't get everything loaded then they would hopefully fix it right away. If you can't get an answer then contact your broker and ask them to call DVC about it. I've had 1 contract that the loading went sporadically for some reason although it had both banked and current points and that took them a couple of days to get loaded correctly. Hopefully it's something similar and you don't have to try and work your way back to the broker/escrow/seller.

 

[Sandisw]

Hi Sandi! I just had points loaded to my newest resale contract and it was 90 points shy. Do you know if Mason Title holds $ to cover this should it happen? I’m just wondering how I get the money from the seller after we have already closed and I haven’t heard back from my broker or Mason Title today about the discrepancy.

Mason does not hold back...unless it’s changed since June. I sold with them and I got my funds within days of closing,

But, they must have a way of getting the funds from the seller. Maybe they will reimburse you and then go after the seller?

I’d contact for sure.

 

[vincenza8907]

So we were in the process of buying a resale contract at the Poly. It had about 3/4 contract year points banked and a full year for the upcoming use year. We made an offer, passed ROFR, received/signed/returned closing paperwork and money to close about 2 weeks after we got them. It was not easy finding a notary and witnesses with many banks having their lobbies closed. After our closing paperwork was received we waited a bit and didn't hear anything. We inquired and found out the seller had not returned their closing paperwork yet. A day or so later we were informed the sellers had sent their documents and they would be received the following day.

Great!

Well, a few days later I had a missed call from our agent. I thought maybe we missed a signature or something on our paperwork. It turns out in the time between accepting our offer and closing the sellers decided to take a few vacations and had used up all of the banked points and part of the upcoming year. The agent was checking the points balance before closing and discovered the discrepancy. Our agent has been very helpful and responsive. I don't get it, were the sellers trying to pull a fast one hoping no one would notice? They used almost a full contract year's worth of points. We had already been planning our upcoming vacations based on the point balances in the contract. We put in an offer to be reimbursed to continue the transaction. We are pretty disappointed considering the amount of time invested in this whole process but we are prepared to walk away. Unfortunately, there isn't much on the market right now that suits what we want and need. If they don't accept our offer we will probably wait until early next year to try again. I don't have the emotional energy to start over right now.

Has anyone dealt with an issue like this and what was your outcome?

That is so unethical and underhanded. I am so sorry that they did that. I hope you are able to get a reimbursement. What you bought is not what you are getting. I hope they are paying for the dues as well. Definitely a DVC Karen.

 

[MICKIMINI]

I'm getting the run around with two contracts that passed ROFR a month ago. The closing agent has had our full payment for three weeks. The seller is not sending in the closing paperwork even with multiple calls and emails from the closing agent (a reputable firm). We've bought and sold many contracts and this is a first. The broker is aware of the situation. We can legally "walk" any minute, but want the contracts! After 25 years buying and selling I'm at an impasse...

Seller is a US Citizen, other than that we don't have any idea what the issue is...at this point what to do?

 

[Cupcake232]

I'm getting the run around with two contracts that passed ROFR a month ago. The closing agent has had our full payment for three weeks. The seller is not sending in the closing paperwork even with multiple calls and emails from the closing agent (a reputable firm). We've bought and sold many contracts and this is a first. The broker is aware of the situation. We can legally "walk" any minute, but want the contracts! After 25 years buying and selling I'm at an impasse...

Seller is a US Citizen, other than that we don't have any idea what the issue is...at this point what to do?

Do they live in an area that is locked down right now? You would think they would want to close before the 2021 dues come due. It took the sellers of my first resale contract 3 weeks as well but one of their fathers had passed away and they were responsive about what the hold up was. I’m sorry this is happening to you as well!

 

[MICKIMINI]

Three weeks ago when I began asking, the seller was "trying to get an appointment to get docs notarized"... It has been nothing but excuses from the closing agent (for the seller) and I understand she can't force him to get docs notarized. A month ago it probably would have been easier to get notarization so why didn't he? I don't know. DH is more willing to wait than me but we agree, we can't wait indefinitely with no idea what the issue is or when he will do it. We really wonder if he wants to relist them for a higher price?

 

[Cupcake232]

Three weeks ago when I began asking, the seller was "trying to get an appointment to get docs notarized"... It has been nothing but excuses from the closing agent (for the seller) and I understand she can't force him to get docs notarized. A month ago it probably would have been easier to get notarization so why didn't he? I don't know. DH is more willing to wait than me but we agree, we can't wait indefinitely with no idea what the issue is or when he will do it. We really wonder if he wants to relist them for a higher price?

How frustrating. In (western) NY you don’t need an appointment to get documents notarized. I had my documents back the next day. I hope today is the day you hear some good news!!!

 

[MICKIMINI]

How frustrating. In (western) NY you don’t need an appointment to get documents notarized. I had my documents back the next day. I hope today is the day you hear some good news!!!

Thanks! I can get a doc notarized at my bank in five minutes for free (NH)...no excuse. I'm getting worried there is something "weird" going on as the weeks tick by. I can understand a death in the family for example, however I have nothing to explain the delay...that is what has me worried! Ughhhhh!

 

[gisele2]

Reading you I am freaking out a little bit. The title company said I should receive the closing documents soon, but I am in my fifth week since passing ROFR. Hoping to have a great christmas gift....

 

[MICKIMINI]

Reading you I am freaking out a little bit. The title company said I should receive the closing documents soon, but I am in my fifth week since passing ROFR. Hoping to have a great christmas gift....

Can the closing company define "soon"??? Don't you just want to know why? I'm going on 20 hours from the closing agent putting out an "emergency" email and phone call to the seller...not a word. It doesn't sound good to me. I hope you get your docs ASAP!

 

[RoseGold]

Don't you just want to know why? I'm going on 20 hours from the closing agent putting out an "emergency" email and phone call to the seller...not a word. It doesn't sound good to me. I hope you get your docs ASAP!

It could be anything. A power of attorney kind of situation, part of an ugly divorce, all kinds of things. Maybe it will all work out!

 

[sethschroeder]

Reading you I am freaking out a little bit. The title company said I should receive the closing documents soon, but I am in my fifth week since passing ROFR. Hoping to have a great christmas gift....

Is this your first DVC contract? Was this the super cheaper BLT contract?

 

[MICKIMINI]

It could be anything. A power of attorney kind of situation, part of an ugly divorce, all kinds of things. Maybe it will all work out!

Thanks! I sure hope so. We paid $100 for 50 OKW Oct in two 25 point contracts with one closing giving us 300 OKW points. Such a good deal considering there are 2020 points. I plan to switch out those 50 2020 points for 2021 points already booked for October/November trip and bank the 2021 points into 2022. Being tiny contracts means I can easily flip them even if OKW starts to tank with "age". Let me be clear I'm talking about OKW aging, not me or DH! 2042 was "forever away" when we bought in 1996 and I remember us all laughing about it...not so much now.

We are still three years out (four if I can talk him into it LOL) from retirement trips (Jan) so I have time to pick up another contract (or two) if needed. Lots of planning involved for 30+/- night stays!

 

[gisele2]

Is this your first DVC contract? Was this the super cheaper BLT contract?

No it is the cheaper BVC contract. BLT went really smooth. My points are coming in 2022...

 

[MICKIMINI]

Update: seller doesn't seem to want to close these contracts. Now I'm wondering if he's regretting selling OR has to bring $$ to the table? Broker confirmed we can walk and if we do seller has to pay commission.

He's put himself in a bad spot, with no one to blame but himself and all the nagging from the broker and closing agent so far, hasn't produced docs! We're giving it a few more days...(like the scene waiting in the taxi in "Airplane").