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My Journey Through the Rescission Process

mac5u

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On June 13, my wife and I visited Spinnaker Resorts in Hilton Head Island. As far as sales presentation go, it was pretty laid-back. We were presented with an offer we both thought was a decent deal compared to other sales presentations we had seen.

Getting a good deal from a developer probably does not happen. Still, our offer was affordable, less than I had expected to pay, and at a newer resort. The maintenance fees were reasonable. The loan terms were surprisingly reasonable: 12%. Now, I have credit cards that charge higher but those I pay off every month if i use them. But still, I was half-expecting 17-19% when they showed me the installment contract.

I knew about re-sales prior to the trip. I even looked at TUG from time to time but the problem we found was that either the units for sale were at resorts which were rated in the mid 8s or below at HHI, or for the better properties, the asking prices were really high.

We arrived home and I started thinking about it some more. I decided that if we were diligent and patient, we could probably find a property in our price range at a resort of our liking at HHI. In South Carolina, the Rescission period is 5 days following the sale.

I followed the instructions on the purchase contract and mailed the letter along with the page of the contract outlining the rescission details. For the letter, I used the sample format found elsewhere here at TUG and modified it slightly with some language found at Nolo.com. I sent it Certified with Return Receipt on the 4th day after contract signing.

After I received the signed Receipt for the letter, I also called the Verification Officer who handled our contract paperwork and left her a voicemail. I sent her an email too.

On June 29th, I called my credit card company to dispute the charge. It turns out they don’t need the notification to be in writing but I was given an email address to scan and email any supporting documentation I thought would be helpful. I also called my bank and asked about the procedures for placing a stop on an ACH.

A couple of hours later, I was called by someone in the sales department. It was probably a coincidence as I do not think my disputation notice to the credit card company would have made its way that quickly to Spinnaker.

He said he had our letter asking for the contract to be cancelled. We spoke for a few minutes. I was very complimentary of our sales agent – really, he was an O.K. guy. I was asked why we wanted to cancel. I simply said we had changed our minds. He said, OK, the contract is cancelled. I asked if we would get something in writing. He said no; just that everything would be refunded, the whole thing unwound as if it had never happened. This included the ACH authorization for the monthly loan payment.

That went a lot better than I expected.

Before hanging up, he asked me how many bedrooms the unit had that I had purchased. I told him we had been shown both a 2 and a 3 BR unit and had purchased the 2 BR with use every third year. He asked me if he offered me a three BR, if that would change things. I told him no, to just cancel.

I mention this last part because at this point, I wondered, after hanging up, just how good of a deal I might have been able to get. I know, I know, I am negotiating with a trained negotiator. It is better to do as I did and just conclude the call. No remorse.
 

TUGBrian

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Great job! I have no doubt you can find what you are looking for for a fraction of the price through an existing owner!
 

DavidnRobin

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Congrats on rescinding - you saved yourself $$$.

and another good rule of thumb - a TS is a luxury item - do not finance (unless you intend to payoff immediately). If you can't afford to buy with disposable income (money you are willing to lose...), then you shouldn't purchase a TS. IMO
 

mac5u

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Congrats on rescinding - you saved yourself $$$.

and another good rule of thumb - a TS is a luxury item - do not finance (unless you intend to payoff immediately). If you can't afford to buy with disposable income (money you are willing to lose...), then you shouldn't purchase a TS. IMO
Paying developer prices, no, I could not afford to buy other than on credit. But now that I am seeing the the re-sale possibilities, that is a different story.

@TUGBrian

Thanks. The "journey" is not over yet. Once I see the C/C reversal, then I know it's pretty much done. Hopefully it won't be more than a few days.
 

am1

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Try not to fall for it again. Lots do.
 

LannyPC

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Once I see the C/C reversal, then I know it's pretty much done. Hopefully it won't be more than a few days.
Hopefully, but not likely. It's not uncommon for some of these TS companies to take up to the maximum 45 days to refund. So be forewarned: if it is taking longer than expected, do not go phoning the resort or TS company. Likely they will try to talk you out of rescinding. And, while we're at it (if this hasn't been mentioned already), don't take any phone calls from any number you are not familiar with. It's possible that it's the resort or sales person calling for the aforementioned reason.
 
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mac5u

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I received an email yesterday from AMEX saying that the transaction has been credited because of the dispute. The merchant (Developer) has until Sept 25 to provide information to AMEX supporting the charge as valid. AMEX would then rebill my account and send me a letter with a copy of the information they received from the merchant.

So, in this scenario, Spinnaker will not need to do anything else. Even though the rescission would have compelled Spinnaker to take action within 45 days, I am glad I disputed the charge, even if it drags out the waiting period from Aug 2 to Sept 25. I can't imagine Spinnaker at this point doing anything more.
 

mac5u

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Journey's End!!!

So, it looks like I am closing this little story. I checked my CC statement and noticed that Spinnaker refunded my card on 07/02. All in all, rescinding was easier and faster than I expected: 19 days from Purchase to Refund. :whoopie:

Now to find that HH resale...:rolleyes:
 
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AnnaS

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Congratulations on rescinding!!! & Good luck in searching and finding the right one for you. I am sure you will.
 

heckp

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Congratulations! Was in the same situation 6 years ago and since then found the TS we wanted. We are currently looking for another one, again. Good luck!
 
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