They did what?! Resale issues

[CarolMN]

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").

Sorry for your situation. Hope it does resolve in your favor very soon.

I know the seller would owe commission even if he/she decides not to proceed, but it may be tough for the broker to collect. Might cost more to collect than it's worth.

 

[RoseGold]

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.

I would bet they have to bring cash to close the transaction and can't. As DVC stops appreciating as crazy as it has been, there will be more of this. It's just math -- the obvious outcome when financing rates for timeshares are so high and the asset is stable or even depreciating.

 

[Sandisw]

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?

I am so sorry, I know there where I live, many banks have closed inside visits so getting things notarized has been very difficult.

I just had to do it for a friend because she simply could not get her bank to set up a time for her to get it done,

Ugg...I know that sometimes it can take a little bit, but 3 weeks does seem like a long time. Hopefully, whatever the real reason is they become upfront.

 

[MICKIMINI]

Thanks fellow disboarders for the encouraging words! The broker called last night and is as frustrated as me. It came to me this morning - what do you think?

There were four 25 point OKW Oct listings that popped up one morning. DH and I over coffee at 5 am decided to grab two to add to our other two OKW Oct contracts. We got an agreement on both. The other two were gone that day. The seller signed that day - no delay.

I was sent docs November 9 and sent a check next day. I've always known closing docs to go to both parties the same day. Okay, now back on Thanksgiving week he was sent the closing docs and now says he never got them. The broker and closing agent have called and emailed repeatedly and about a week ago (he finally got them) he said he would get them right out. My guess (only a guess) is that he bought 100 points direct split in four contracts about a year ago (again, a guess) say at $15000 + $2000 closing on four and financed them. Buyers of the other two in the same boat...he won't close.

Now he wants to sell, but they are all financed "together" and he can't pay off DVC without $$ from all four sales and can't close (as he needs to bring $$ to the table). A "Catch 22". Again, a guess.

What do you think?? Thanks friends!!

 

[RoseGold]

Now he wants to sell, but they are all financed "together" and he can't pay off DVC without $$ from all four sales and can't close (as he needs to bring $$ to the table). A "Catch 22". Again, a guess.

What do you think?? Thanks friends!!

This isn't your deal. That's OK, plenty more out there. I think it's fun to keep looking! I almost pulled the trigger last week, but I am waiting until January, historically an uptick in resale listings.

 

[CarolynFH]

Thanks fellow disboarders for the encouraging words! The broker called last night and is as frustrated as me. It came to me this morning - what do you think?

There were four 25 point OKW Oct listings that popped up one morning. DH and I over coffee at 5 am decided to grab two to add to our other two OKW Oct contracts. We got an agreement on both. The other two were gone that day. The seller signed that day - no delay.

I was sent docs November 9 and sent a check next day. I've always known closing docs to go to both parties the same day. Okay, now back on Thanksgiving week he was sent the closing docs and now says he never got them. The broker and closing agent have called and emailed repeatedly and about a week ago (he finally got them) he said he would get them right out. My guess (only a guess) is that he bought 100 points direct split in four contracts about a year ago (again, a guess) say at $15000 + $2000 closing on four and financed them. Buyers of the other two in the same boat...he won't close.

Now he wants to sell, but they are all financed "together" and he can't pay off DVC without $$ from all four sales and can't close (as he needs to bring $$ to the table). A "Catch 22". Again, a guess.

What do you think?? Thanks friends!!

I’m so sorry to say that it sounds like you should back out. Especially since he won’t close on any of the four, if I’m understanding correctly. Might as well cut your losses (time only, right? No $) and start looking for other contracts for sale.

 

[Wakey]

Wow some terrible stories here, real scumbags some of these sellers. Luckily I bought 3 resale with no such issues.

 

[MICKIMINI]

Thanks you guys! I've spoken with the brokers again geez they've tried really hard. This guy has an issue or issues, no question. I've given him a deadline to get the docs shipped. I'll be shocked if it gets done. High noon tomorrow...or we're moving on!

We need "extra" points by January 2022. I have all year next to play and DH got a raise yesterday LOL! No really, I increased the 401K fund substantially. We have to eat as well as "live" at WDW in retirement! I can start stalking resale again...tomorrow.

 

[MICKIMINI]

The deadbeat seller didn't send his docs or even contact the brokers despite the urgent calls and emails. His last communications were lame excuses last week. At this point, the brokers agreed to mail our total payment back to us today. IF the seller ever comes through we will be given an opportunity to "buy" the contracts we agreed to. DH and I will feel better having the $$ in our account.

Wow, I didn't see this coming back in September when I got a great deal on two 25 point OKW contracts that would be closed together saving $$. Despite keeping our end of the bargain our seller didn't. Both the brokers and I maintain a friendly, professional relationship. This is neither their fault nor ours. We will be made whole. I won't see those two contracts pop up on their website unless I decline them. It is a fair end to an unfortunate situation.

 

[Cupcake232]

The deadbeat seller didn't send his docs or even contact the brokers despite the urgent calls and emails. His last communications were lame excuses last week. At this point, the brokers agreed to mail our total payment back to us today. IF the seller ever comes through we will be given an opportunity to "buy" the contracts we agreed to. DH and I will feel better having the $$ in our account.

Wow, I didn't see this coming back in September when I got a great deal on two 25 point OKW contracts that would be closed together saving $$. Despite keeping our end of the bargain our seller didn't. Both the brokers and I maintain a friendly, professional relationship. This is neither their fault nor ours. We will be made whole. I won't see those two contracts pop up on their website unless I decline them. It is a fair end to an unfortunate situation.

Ugh. So sorry this happened. I’m still waiting to hear in my 90 points as well. I’m really not sure where to go from here with it.

 

[RoseGold]

DVC has been largely spared this kind of issue because it has been going up in value so quickly for so long, but it was always going to stop. If nothing else, the contracts are losing years. As contracts go more and more underwater, I’d expect more of this.

I wouldnt take it personally — on to the next!

 

[Champagneandpixiedust]

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?

Curious to know what was the purchase price that passed ROFR? My 400 points at poly are currently listed for sale. I need to get rid of them because of my divorce.

 

[MICKIMINI]

Curious to know what was the purchase price that passed ROFR? My 400 points at poly are currently listed for sale. I need to get rid of them because of my divorce.

Go to the ROFR thread here on disboards. You can find the most recent info from disboards members that have posted their Poly ROFR info!

 

[MICKIMINI]

Soap Opera Alert! I just got a note from the broker. Seller sent docs this morning. DH and I had moved on last night...we were just over it. Geez!

 

[RoseGold]

Soap Opera Alert!

Well, the drama is over now? You still going to close? The math was good right?

 

[MICKIMINI]

Well, the drama is over now? You still going to close? The math was good right?

Closing on Wednesday! It took me setting a deadline, which he still didn't meet, but close enough LOL!

 

[vincenza8907]

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!

Same here in Florida. Just go to the bank.

 

[Memorymakerfor4]

Wow. I feel like stories like these should be on a recommended reading list for potential DVC members as both a buyer be wary and reasons not to finance a timeshare.

 

[KAT4DISNEY]

Same here in Florida. Just go to the bank.

My bank will not notarize unless it's a transaction with them. Something I consider a knock against them for lack of service actually. I can go to the UPS store and pay them to notarize pretty much anything.

 

[mustinjourney]

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.

I read a bankruptcy case involving fraud and DVC from a few years ago. The people owned 2000 points and two months before filing for bankruptcy, they transferred 1250 worth of points (not a one time transfer -- but 1250 worth of points) to their son and DIL. They didn't disclose the transfer of the contracts in any of the paperwork with the bankruptcy court.

They got slammed hard by the judge. Husband lost his portion of discharging of debt.

http://www.njb.uscourts.gov/opinions/RTL/docs/2012/Lawrence.pdf