UPDATE in post #34: "Time Sensitive Information about Your Disney Vacation Club Membership"

[WebmasterDoc]

FYI - I just received this email from DVC.

Dear Member Family, We recently noticed that you haven’t been utilizing your Disney Vacation Club Resort. It is always our goal to ensure that you are getting the most out of your Membership so that you and your family can enjoy magical vacations year after year. We understand that now may not be the right time for you and your family to travel. Or perhaps you were saving up for that extra special vacation. Don’t forget that you can bank points from your current use year to give you even greater flexibility for future vacations. However, if your family has decided that your Disney Vacation Club Resort isn’t the right fit for you right now, we would welcome the opportunity to speak to you if you are interested in selling back your ownership interest at Disney's Old Key West Resort. While we never want to see a Member leave, we understand that sometimes circumstances change. If this is the case for you and your family, please contact us at 800-782-6767 to speak with a Quality Assurance Cast Member. Business hours are 9am-6pm EST, 7-days a week. Additionally, for a limited time, you may be eligible for a 10% increase over the price per point that Disney Vacation Club would currently offer when choosing to exercise its options to reacquire an ownership interest.* Sincerely, Disney Vacation Club *This offer may be withdrawn at any time and prices are subject to change without prior notice.

 

[hhisc16]

" you may be eligible for a 10% increase over the price per point that Disney Vacation Club would currently offer when choosing to exercise its options to reacquire an ownership interest.*"

I am curious to how this equates to the price Disney would offer you?

Does Disney have to use a broker or can they purchase directly from you?

 

[kc51570]

So it seems like they don’t care about those members threatening to sell DVC with all the lack of perks, changes going on. They are more than happy to buy contracts back.

 

[thanxfornoticin]

That's a fascinating letter. First time I've seen that. Sounds like the resale market is strong and they want to be more involved with it than they have been in the past.

 

[TheEpcotForEver]

Wow, you have too find out what their offer is!

 

[BillPA]

The last $$$ I recall was DVD was offering $50 a point... so now it's $55, a bit less than half the resale rate. WOW!!!

 

[Memojo]

The last $$$ I recall was DVD was offering $50 a point... so now it's $55, a bit less than half the resale rate. WOW!!!

$55/point … must be some sort of typo???

 

[drusba]

Doc, are you a 2042 expiration date owner? I am just wondering if this is brought about mainly because of a shortage of points for DVD to sell at OKW, or if it is also something being done with the hope of further reducing the number of 2042 owners, in which case it may have been sent only to 2042 owners.

 

[RoseGold]

CALL THEM BACK!!! GET THE MATH!!!!! This letter is bananas.

Did you never sign the quitclaim for OKW???

 

[WebmasterDoc]

" you may be eligible for a 10% increase over the price per point that Disney Vacation Club would currently offer when choosing to exercise its options to reacquire an ownership interest.*"

I am curious to how this equates to the price Disney would offer you?

Does Disney have to use a broker or can they purchase directly from you?

Disney does not need to use a broker for purchases like this. Basically, I read this as they might go 10% over whatever their ROFR level is at any given time to purchase your contracts from them.

Our OKW contracts do not have the extension, so DVC is able to purchase them and then resell at their current rate ($170 per point) for 2057 expiration contracts. We did sign the quitclaim back in 2007 so all we have is 2042 expiration contracts.

We recently sold OKW contracts with the help of DVC Resale Market. Two were small stripped contracts (under 50 points) and they passed ROFR quickly. The third (which has a reservation attached that will delay closing) was also a stripped contract (no banked points, no 2021 points and full complement of 2022 points) was listed at $110, received an offer at $102, countered and accepted at $109, and then Disney took it quickly using ROFR. Closing won't happen for another couple of months. So, in this case, their pricing was $109 for those conditions for a 2042 expiration. The smaller contracts sold considerably higher.

The closing for this will be done by Disney (and not assigned to local closing agencies), the broker will get their commission, and we will receive same payout we would have received had they passed on ROFR.

I'm not sure how they determined that we haven't been using our membership as we have three existing reservations made for the next 5 months as two of those are using memberships we still have going forward.

I will call the provided number to see what information I can get about this process. The email did come from a DisneyVacationClub.com email address and otherwise seems legitimate.

My guess is that they may be trying to control any OKW contracts they can get ahold of to minimize resale purchases and maximize the 2057 ownerships for the near future.

Stay tuned!

 

[WebmasterDoc]

Doc, are you a 2042 expiration date owner? I am just wondering if this is brought about mainly because of a shortage of points for DVD to sell at OKW, or if it is also something being done with the hope of further reducing the number of 2042 owners, in which case it may have been sent only to 2042 owners.

I suspect it may be to further reduce the number of 2042 owners as you suggest.

 

[WebmasterDoc]

The last $$$ I recall was DVD was offering $50 a point... so now it's $55, a bit less than half the resale rate. WOW!!!

I read this as they may be willing to go 10% over their current ROFR ceiling, but it could be based on the old (old, old, old) rumors about buying back contracts.

For years they were not buying back any contracts - they simply referred those cases to their preferred resale broker (which I think is currently fidelity). It seems they are now actively looking to purchase OKW contracts.

I will try go get more information.

 

[cedricandsophie]

We got the same email today. And we have three upcoming Disney reservation. No interest in selling. We have points at old key west, aulani, boardwalk, animal kingdom, bay lake and vero beach. About 1200 in total.

 

[AaronEuth]

Did they specifically mention your OKW deed like they did for the OP? I suspect they are trying to solve the 2042 vs 57 problem they created now before it is a major problem.

I mean what happens if there is a unit at OKW that ends up with just one 2057 owner and the entire rest of that building expires in 2042? Disney all of a sudden owns most of a building they don't want, and will have trouble reselling it with a 15 year expiration. Better to identify all of that now, when they can still easily buy back, convert, and resell.

 

[fixerupper]

They've also recently fixed it so that OKW is the preferred "cheap" buy in. I am sure that is by design so they can convert as many points as possible, but may also be causing inventory issues. I'm sure we are going to see plenty of 2042 OKW rofrs, though I am not sure how they can ever get all of them.

 

[Sandisw]

They've also recently fixed it so that OKW is the preferred "cheap" buy in. I am sure that is by design so they can convert as many points as possible, but may also be causing inventory issues. I'm sure we are going to see plenty of 2042 OKW rofrs, though I am not sure how they can ever get all of them.

They don’t have to get all of them. When an owner with 2042 sells, they have to sign the quit claim which means the contract ends.

So between that, and getting them so they can sell the points, I bet the hope is by 2042, the number of original owners who didn’t sign away is small.

 

[RoseGold]

Why wouldn't they want the 2042s to just hold? They get a free foreclosure in 2042. The best explanation I can come up with is that this is short term thinking because they mark it up and sell it as extended, and RIV is going so badly they need to go get some of that great OKW.

This email seems pretty desperate, when they have millions of Aulani and RIV points just sitting around. The more I think about it the less it makes sense. Unless they are targeting people with paperwork issues on the quitclaim...

 

[FinnFogg]

Question: Has anyone who bought resale received this email? We are resale (2042) owners, so quitclaim would have been resolved when we purchased, and we did not receive the email.

 

[AaronEuth]

Why wouldn't they want the 2042s to just hold? They get a free foreclosure in 2042. The best explanation I can come up with is that this is short term thinking because they mark it up and sell it as extended, and RIV is going so badly they need to go get some of that great OKW.

Because I don't think they want to own half of OKW in 2043. Especially when it is broken up into random specific portions of various units/buildings. They won't be able to rebrand it and sell those as a DVC 2.0 property. They won't have the option to demo and reuse the land for a more compact/efficient vertical hotel. The random units that are owned by 2057 deed holders prevent that. Instead all they will be able to do is extend and try to resell them as OKW with a 15 year experiation date. And in the meantime, they will be responsible for the maintenance of all those expired 2042 contracts that fall into their lap at once.

 

[RoseGold]

Because I don't think they want to own half of OKW in 2043. Especially when it is broken up into random specific portions of various units/buildings.

Why not? It would be like repossessing half of BR or BC right now. Mark it up and sell it. Or rent it. Get rid of that chart and all those cheap legacy buyers.