Would you know how long I would have to “ convert to points”?
You can convert by cancelling the reservation.
In theory, this can be any time - but if you cancel within a month of the stay, points would go into holding status.
But in practice, you will tend to cancel at (or right before) your 11 month booking window, if you are staying at your home resort, and at the 7 month booking window if you want to stay anywhere else. This is so the points will be there for you when you need them. Another key date would be five months out from the end of your use year, when you could consider banking the points.
There are advantages of canceling - it takes fewer points, you have more flexibility on dates, you can start your trip on other than a Sunday, and you can do a trip that is less then 7 nights. There are some times of the year where you would definitely want to keep the fixed week if you could go then. An example would be if you are trying to book a studio in the month of December. You will learn what those times are. (Another example is if you are buying a race week).
The FW process seems to be somewhat manual. I have never had my FW show up online as booked. If I ever wanted to use that week in July, I would call Member Services at the 12 month mark and ask them to make the reservation. But if I call, they will book it. I am a data point of one, so it could be that they don’t have good records of FWs for resales and that most other people don’t have to call in. Also, when you cancel, check to make sure that they give you the correct amount of points. I had to call and fuss at them about it. I am not sure they understood. I ended up getting three extra points.