unbelievable!! Can't afford this! Please help

[JimMIA]

Originally Posted by Dean

Plus, if all of your contracts were financed, they likely were financed as a unit meaning it's unlikely you could sell one or two without paying off the remaining ones.

OUCH! I didn't even think of this possibility. Hopefully this is not the case, because it would severely limit OP's options.

[DougEMG]

I understand that Disney will taken back or foreclose on contracts where you don't pay the maintenance fees. Do they do the same thing if you have a loan with them? What would happen if they walked away, anyone know? Would this be cheaper than the amount they would be under if they sold all their points.

I have no idea.

[Dean]

Originally Posted by JimMIA

Dean, CaptDadSparrow is not the person in the trick bag here -- vinmar4 is. CaptDad is just in the process of buying in, as I understand it.

thanks, I did get them confused.

[DizBub]

Originally Posted by vinmar4

Is it really complicated to rent?
and how long does it usually take to rent them?
thanks

You could contact David's Vacation Club Rentals. He can rent your points for you. Not sure what his process is but I think that he charges $13 per point to the people renting from him and gives the owners $10 per point.

[vinmar4]

Originally Posted by Dean

I'm sure Jim didn't mean to be harsh, just honest

OP, Actually it is pretty far off base as I'm sure you're figuring out by now. I see several incorrect assumptions, these include that resale prices track retail and that market forces are broad enough to give a true value on the open market. Regardless, the market is as you see it, maybe a little over half of what you paid. Plus, if all of your contracts were financed, they likely were financed as a unit meaning it's unlikely you could sell one or two without paying off the remaining ones.

Your situation is one of a number of reasons why I try to press those looking to buy to make sure they understand the risks and negatives, to never finance and to not overbuy the number of points they truly need or the higher cost resort. I can't tell you what to do but for most people in this situation I think the first question is whether they can afford DVC (or even Disney) at all. Truthfully if $1800 a year gets one into trouble, the answer is likely no. For most the best decision is likely to sell all, pay the upside down amount and start saving for when they really can afford it so it'll be a blessing and not a curse. Let us know how it works out and what you end up finding out along the way, esp how it works with trying to sell part with a loan in place.

I will admit that I made the mistake of getting a loan in the first place and maybe even getting too many points, we can afford to pay the loans or " Disney" but my surprise was to see that every year the increase in the anual fees are almost 200.00. We love DVC but maybe we are rethinking if we want to spend all that money for those loans or just sell even with the upside down amt and rent when we want to go until we buy resale.
I will post how things go
thanks

[disneynutz]

Originally Posted by Dean

Plus, if all of your contracts were financed, they likely were financed as a unit meaning it's unlikely you could sell one or two without paying off the remaining ones.

Each contract is separate and they each have their own loan. Paying off one doesn't affect the others.

Defaulting puts you on the DVD black list and any future direct purchase would be on a cash bases only and they would require monthly dues payments.

Bill

[LisaS]

I suspect a lot of people don't think about how much the dues will cost them over the lifetime of the contract. They focus on the cost of the contract because that's the big number but the dues will go up every year and over time the running total will far exceed what you paid for your contract.

When we were considering buying in to DVC I put together a spreadsheet to estimate the dues each year. I used 3.5% as the average annual increase. I paid just under $15,000 for my BWV contract but I estimate I will pay over $50,000 in dues if I hold on to it until it expires on Jan 31, 2041. In the last year, assuming an average annual increase of 3.5%, dues will be over $15 per point! But who knows what a hotel room will cost by that time.

[bumbershoot]

Originally Posted by vinmar4

yes, but we would not have the loan

I was just in pain thinking of you paying nearly 6K to get OUT of something. When that "something" could be SO valuable to your family.

Sounds like we bought at the same time as you, we bought at Bay Lake and I think that that time they were around the same cost, and yet we only got 160. How much would we LOVE to have 320 to play with, you have NO idea.....

We financed as well, so I know half of your pain, LOL. My long-talked about plan to pay it off quicker hasn't materialized, so comparing what we've paid to what we have left to pay is hard...but at the same time, oh the JOY we have gotten from that money.

I would just hate to see you make a decision based on dues, then buy back in later only to face the same, or higher, dues. Even when financing, dues are still the higher total price over the years that one owns DVC.

[zavandor]

Originally Posted by DizBub

You could contact David's Vacation Club Rentals. He can rent your points for you. Not sure what his process is but I think that he charges $13 per point to the people renting from him and gives the owners $10 per point.

I support this idea too.
You could rent all your points and get 3200$. You could even try to rent those yourself, with a bit of effort you could get something more, but many report that with David you can rent your points easily (I've not done this myself).
So you could skip this year vacation at Disney, pay the MF and have some money to repay the loan. Or you could rent half the point, pay the MF and have a shorted vacation.

Selling your contract it's a big loss now, I would keep that option only as last resort.

[Daddio]

I'd be happy to assist you with the rental of your points. Animal Kingdom Villas are in extremely high demand right now. Full details of my program are available at http://www.dvcrequest.com/associate/

I wish you the best with your situation.

~ David

[vinmar4]

Originally Posted by bumbershoot

I was just in pain thinking of you paying nearly 6K to get OUT of something. When that "something" could be SO valuable to your family.

Sounds like we bought at the same time as you, we bought at Bay Lake and I think that that time they were around the same cost, and yet we only got 160. How much would we LOVE to have 320 to play with, you have NO idea.....

We financed as well, so I know half of your pain, LOL. My long-talked about plan to pay it off quicker hasn't materialized, so comparing what we've paid to what we have left to pay is hard...but at the same time, oh the JOY we have gotten from that money.

I would just hate to see you make a decision based on dues, then buy back in later only to face the same, or higher, dues. Even when financing, dues are still the higher total price over the years that one owns DVC.

I know what you mean. We are going to look at all the different options, but you are right, if we get out of the loan now if we buy later resale we are still going to have the annual fees. we would hate to loose it too. thanks for your advice. Renting is sounding better and better as an option.

[vinmar4]

Originally Posted by Daddio

I'd be happy to assist you with the rental of your points. Animal Kingdom Villas are in extremely high demand right now. Full details of my program are available at http://www.dvcrequest.com/associate/

I wish you the best with your situation.

~ David

Thanks David,
I will for sure contact you if we decide to rent

[vinmar4]

Originally Posted by zavandor

I support this idea too.
You could rent all your points and get 3200$. You could even try to rent those yourself, with a bit of effort you could get something more, but many report that with David you can rent your points easily (I've not done this myself).
So you could skip this year vacation at Disney, pay the MF and have some money to repay the loan. Or you could rent half the point, pay the MF and have a shorted vacation.

Selling your contract it's a big loss now, I would keep that option only as last resort.

I agree with you, thanks for your opinion
you guys are really great!!

[ssawka]

Originally Posted by LisaS

When we were considering buying in to DVC I put together a spreadsheet to estimate the dues each year. I used 3.5% as the average annual increase. I paid just under $15,000 for my BWV contract but I estimate I will pay over $50,000 in dues if I hold on to it until it expires on Jan 31, 2041. In the last year, assuming an average annual increase of 3.5%, dues will be over $15 per point! But who knows what a hotel room will cost by that time.

Yes, 3.5% was probably a good number to use when you bought, but I think what is throwing owners off is that MFs seem to be escalating at a much higher rate than that. MFs at BLT are going up by 6% next year. If we did not buy when we did (June 2009) I don't think we could afford to buy, at least not at BLT.

Financing actually paid off well for us since we didn't really have the money saved when we bought. We paid off the Loans on our contracts in 1 year, so we paid the 11% and took the tax deduction. In that year however, the price per point at BLT went up 22%. I agree that financing points does not make sense unless you know you will pay it off quickly.

[crisi]

Originally Posted by ssawka

Yes, 3.5% was probably a good number to use when you bought, but I think what is throwing owners off is that MFs seem to be escalating at a much higher rate than that. MFs at BLT are going up by 6% next year. If we did not buy when we did (June 2009) I don't think we could afford to buy, at least not at BLT.
.

Additionally, dues are going up, living expenses are going up, but most people have had fairly stagnant salaries. So what was affordable three years ago may no longer be. And no one really plans for groceries getting more expensive and the heat bill going up while getting paid the same.