Sent in my deposit...anyone had a credit problem & had to pay more than 20% down?

[Disneyfun1]

Ok.......I have been talking to my rep Jenna, who is great by the way. I talked to her last year and we were talked out of buying by family members. Well this year we rented points and it was great at BWV. So, we talked to Jenna again this trip. Though the point cost has gone up, we think it will be worth it since we plan to go every year to WDW. We were going to buy 150 points, but now we decided to buy 200 after reading that a lot of people wish they would have bought more sometimes. So tomorrow, DVC is arranging to have Fed-X come by and pick up the $500 deposit from us. Are points will be a use month of April. We go in sept so that should be no problem. We are deeding in VWL, and will use the buy back program of the 2001 points to have $2000 towards our down payment. For the 20% down, we will need an additional $500, due in about a month?? She said we would get paperwork to fill out in about a week, then send it back and they will work on it. We have a bit of a credit problem, which i can discuss in private e-mail if anyone has been in our situation instead of posting it on the board, which im sure whoever has had it will probably know what im talking about right now. We are still going through and are about done. Has anyone had to put more than the 20% down?? Why did you have to and did they give you some time to get the rest?? I was told we may need more than the 20%, or we may need more and they will shorter the term to less than 10 years to get into it. Just wondering what i can expect if i have any hope of only going in with 20% down, or is it no way. Please e-mail me or i can e-mail you to discuss in private if you wish. I just want to know what to expect and what we have to come up with. We really want to get this approved and belong to DVC. Thanks for all you help in advance....Art Disneyfun1@home.com

 

[Disneyfun1]

BUMP

 

[Disneyfun1]

bump

 

[ssgan]

On our first contract in 1998 we had bad credit and had to put 40% and the contract is only for 5 years. But we went down in 1999 and added on with only 10% and could get the 10 year contract. And then last we added on again and was able to do the 10% and 10 year contract. So if you want to add on down the road you should not have to come up with more than 10% as long as you are not late on any payments. Hope this helps. If you need other info let me know.

Scott

 

[robinb]

I'm sure this isn't the answer you want, but I had to say it anyway. I wonder why, if you have "credit problems", that you are even thinking about putting yourself further into debt by buying DVC along with the on-going obligation of annual dues . I see that your "credit problems" did not stop you from going to WDW last week and staying in the finest that WDW has to offer (Grand Floridian 9/9-9/12, Wilderness Lodge 9/12-9/16, Boardwalk Villas 1 Bedroom 9/16-9/18, Animal Kingdom Lodge 9/18-9/19), so maybe your problems are not as bad as I assume. Even so, it is my opinion that people who are already heavily in debt to the point of problems, even if they are in the cleaning up stage, should wait until a better, more solvent, time to buy a treat like a timeshare. If you're worrying about how you will find $1000 or $2000 for the down payment, then you have not worked yourself enough out of the hole.

Wait until next year and open up a "DVC savings account" when you stash away $50-$100 per paycheck (about the same as your payments plus maintenance fees) and see how your budget handles it.

 

[Diznut84]

Art,

DVC has worked with many folks who have had credit problems. Many folks on this board know what it is like to have a credit problem, due to a host of unforeseen events such as medical emergencies, layoffs, etc. Of course, the financial effects of those events are severe. The effect on your credit rating can linger long after the financial crisis is over. I'm certain you've paid not only a financial price, but also a strong emotional one as well.

I'm delighted that you can now afford to purchase DVC and take WDW vacations. IMHO, there is no better use of your money than travelling with your family. In the past, people with past credit problems have posted on the board that they were able to secure DVC financing by putting 40% down and financing for 10 years. DVC will work to accomodate you!

 

[Disneyfun1]

Thanks to those who have replied in private to me.

In response to Robin, My credit problems did not stop me from staying in the finest that disney has to offer.....like i said, those who would understand know what im talking about......I am now totally debt free-with the exception of my home loan and 2 cars....but the effects on the credit report are what i am talking about as far as my individual problem and what shows up. Credit problems dont always mean someone is in debt. The 1000 or 2000 down is not the problem.....its if i have to put down 40%, or with the MB about 4000 down. It can be done in a short period if thats what it takes, but i of am hoping not to, if it is, i am trying to get prepared for it and just thought i could get a little help with what others had to do who may have been in the same boat i am in now.

 

[GAIL HAYDEN]

Robin,
No offense intended, but, he is asking not asking for a financial analysis. I am sure you intentions were good, but, frankly, your advice was not necessary and probably not wanted.

 

[robinb]

Art:

I'm glad to hear that you are debt-free (as am I, with a mortgage and a car loan). It's a difficult state to achieve and maintain and I commend you for doing it. I'm also glad to hear that you are financially solvent enough to buy into DVC and not overstretching. It seemed from your original post that you were worried about finding the additional downpayment needed due to your adverse credit rating.

As much as I love DVC and think that it's perfect for people such as you and I who take many trips, I never want to encourage someone from getting in over their head just to own a piece of The Mouse. Just because Disney will loan the money to someone doesn't mean it's really the best thing for them financially.

Good luck to you and I hope that we'll be able to welcome you home soon.

 

[Laurajean1014]

Not aware of credit issues first hand, however, we recommended a family to DVC and they were advised that they needed to put down 50% in total. (probably 10% then 40%).

I think DVC was very kind to them and allowed them extra time to acquire the 40%! They originally purchased 200 points this year, and that's a big chunk.

Did you ask your DVC rep that if you put down the 50% and pay each month, would they consider you for add-ons at 10% down-payment for a future purchase? I bet they will, (if you're considering) they seemed to be very accommodating.

Let us know how you do....

 

[Disneyfun1]

Bump.....any others by chance?? e-mail me directly if you wish Disneyfun1@home.com Spoke to my rep Jenna today, they have my deposit and docs for us to fill out should be mailed tomorrow or monday. Then we will fill out and mail back to them and see what they say.

 

[dianeschlicht]

Good luck to you today, Disneyfan1!

 

[Cru*Ella]

We didn't want long term debt (to us, with no mortgage and cars paid off, 10 years is long term) hanging over us, so we chose to put 50% down (we had it) and finance for a year. We could have paid cash for the total amount, but hesitated since it may have placed us in a bind later. We have three more automatic payments, and we are clear.

I feel it's the way to go if you can swing it. 10 years ago, we couldn't have (and DVC was not around) but we've been blessed.

It is wonderful to own a house with no mortgage and no car loans, and be able to pay off credit cards monthly. I can sympathise with those who can't .... we were there too long. It isn't easy to erase debt, so it makes you think twice about accruing big debt again.

Good luck, Art! However you choose, you'll be Welcome at Home!

 

[Mr.Darcy]

Art,
DVC is perfect for a Disney-loving family and from ours to yours:
"GOOD LUCK" As far as judgemental posters, let's just pretend they don't exist because as far as I'm concerned the DISboards are full of generous helpful people who care about each other. Unfortunately, odd ones seep in through the cracks. I'm posting under a different name because I'm going to get personal. In '96 we had a motorhome ($675/mo. payment). In October my hubby was hurt pretty bad off the job. He was on disability for 3 months (very low payments). We called the bank and asked for a postponement (don't remember the correct word) on the payment. They said sure, no problem, glad you asked (not that nice, but they did agree to it). So when December came they sent a statement saying amount due 12/__ - we called and were told the paperwork was going through slow, but it WAS in the process. In January we got another statement saying payment due 1/__ , but it included Dec. & Jan. We called to find out what was going on and they said the paperwork was still going through, but we would have to pay the total payment in order to get the "postponement". Well, we couldn't do it. We could do 1 month but not both. They said pay the 1 month and we'll complete the paperwork. Well, Feb. comes around and they want Dec. & Feb. saying Jan. was paid. Only now they say we can't postpone the payments because there's an outstanding balance (duh!!!) Anyway, we tried every avenue - all the supervisors, managers (I'll never forget one in particular "Lowell" a complete jerk - had the nerve to tell my 7 yr. old that Dad needs to pay his bills or he'll come pick up our motorhome!!!) March came around and they sent an official notice that our total loan balance ($48,000) is due now because the account is late. We were beyond frustration - it was a total nightmare. We let them come and get it - we had no choice. But it left a great big hole in our credit report. Even though my hubby makes well over $150,000 a year, Disney wanted 20% down because of this "blemish". At least they gave us the opportunity to keep improving our credit (proving our credit-worthiness). And the "guide"(?) was extremely helpful, polite and NONjudgemental throughout the entire process. So from one who has been there, done that, we say Way To Go! You'll love it like we do and it'll give you yet another chance to improve that report. Nobody has a right to snarl at another person for their decision. Only YOU know what is the right decision to do with YOUR money. We wish you Good Luck! Hope to see you at BWV or VWL someday (we have 450 points at each).

 

[Diznut84]

The original post simply asked for individual experiences with down payment and repayment terms for someone with less than ideal credit. I think this is a worthwhile thread if we keep it focused on that question. Many potential DVC members have asked that question previously on this board. Let's not scare them away!

 

[ducklite]

Originally posted by Mr.Darcy
Art,
We called the bank and asked for a postponement (don't remember the correct word) on the payment.

The word you are looking for is a forebearance.

I was a loan officer for 6 years, specializing in home mortgages for people with not the best credit. (I wasn't one of those "Money Store" type lenders!) Anyone with questions can free to email me privately I would be happy to offer advice. BTW--I'm no longer in the business, so I'm not trying to solicit for business...

Anne

 

[ducklite]

Oh--Interestingly, DVC does not report to the major credit agencies. I found that out when I refinanced my house earlier this year! (However if you go into arrears and they send it to collection I would imagine it would appear...)

Anne

 

[Disneyfun1]

I feel bad that someone resorted to name-calling to Robin. All is fine. She said her piece and i explained mine a little further. Please dont resort to any name calling over my thread, as i said, i wanted opinions, good or bad.

As an update, i received a box from dvc via fed-x at my door when i got home. I still need to open it, but assume my application info is in their. It will probably go back next week and i will update when i hear back from them.....thanks......Art

 

[HDawnH]

We'll be going to Hilton Head for a "tour of the resort" sales pitch while staying in a 2 br villa. We've been to Disneyworld twice, once on the land/sea vacation and once at Wilderness Lodge. This is our first time to visit HH and we are really looking forward to it.

We've been thinking about buying DVC but so far we've talked ourselves out of it. Our home is part of my husband's job perk (no payments, etc.) and we have two car loans with balances just under 10 thousand each.

Our credit is just okay, because eight years ago he was laid off every winter from his other job and we got way behind in our bills. Now he has a much steadier job with much better pay and I'm working too (wasn't before) and I make a decent amount as well. It is true what they say about those stupid credit reports - ours makes us look like shysters - but we're not!

I don't know if we'll allow ourselves to get into a big debt with a vacation home. We've been thinking about buying (or trying to buy) a home of our own to move into when the kids get grown and we retire. Would Disney be the thing for us in this situation? Or should we look into traditional timeshares or plain old real estate.

Many questions. In a sentimental way I'd love to buy into Disney because I associate so many great memories with our vacations there.......but our kids are 15 and 11 now - how would this work out for us at our age? I am 37 and husband is turning 40 this year. If you can help with any advice please do so. I'm more confused than ever.

In the meantime, I'm going to try and clear my mind and just enjoy a beautiful vacation to Asheville NC and Hilton Head when the leaves are changing colors and the ocean still might be warm enough to splash in. (Sharks be damned - here I come)

Another Disney Dreamer,
Dawn

 

[TnRobin]

Ladies and Gentlemen,

I remind you that you need to stay on topic. Furture personal attacks on this (Or any) post will not be tolerated.

End this NOW.