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Old 02-07-2019, 12:29 PM   #1
Jasonv1
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Default How do I not know this? Bankruptcy sale where you must pay off loan

Scenario:

Contract for sale via bankruptcy trustee.
Terms of sale also require you to pay off existing loan.

What happens if DVC takes the contract in ROFR given that your per-point payment for the contract itself doesn't include the loan payoff? Seems like you might end up screwed.

Would you have to insist that the loan payoff be included in the contract purchase price that is recorded with DVC? I assume this is the case.
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Old 02-07-2019, 12:38 PM   #2
cpnkirk
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Quote:
Originally Posted by Jasonv1 View Post
Scenario:

Contract for sale via bankruptcy trustee.
Terms of sale also require you to pay off existing loan.

What happens if DVC takes the contract in ROFR given that your per-point payment for the contract itself doesn't include the loan payoff? Seems like you might end up screwed.

Would you have to insist that the loan payoff be included in the contract purchase price that is recorded with DVC? I assume this is the case.
You should be able to put "contingent upon loan payoff by buyer" or something similar in the contract. That way DVC would also be required to do that if they exercise the ROFR.
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Old 02-07-2019, 02:41 PM   #3
Goofygrl
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ROFR has Disney following all of the contract requirements not just price per point. If it's in the contract it must be paid then Disney would be required to do the same.

However - that isn't necessarily a normal term of bankruptcy. In fact it's probably unusual IMO and should be negotiable if it's something you did not want to do. Or rather - it would be something you could attempt to negotiate on although the bankruptcy trustee of course might night agree to changing.
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