WHy does closing on a re-sale take so long?

[KathyPet]

I am selling my GO week through Marriott. A sales contract with the buyer has been signed. MArriott sent me a letter saying it will take 90"days to get my settlement package and once that is returned another 30 days to closing. REally 120 days to close on a time share???
I have bought single family family homes and gone from contract signing to settlement in 45 days with a mortgage approval as part of the 45 days. THis seems absurd to me. ANyone know why this lengthy, drawn out time frame?

 

[StevenTing]

I wish I knew. I'm the buyer on a few TS where I signed the contract back on Feb 28. I'm almost to the 4 month mark. It's been a long wait.

 

[DeniseM]

IMNSHO, it takes so long, because resales are not a priority.

 

[TXTortoise]

I've only done one, fast, and the midst of number two, slow. I've about decided it really depends on the broker and the closing company.

 

[vacationtime1]

I've only done one, fast, and the midst of number two, slow. I've about decided it really depends on the broker and the closing company.

+1

There is absolutely no reason for the slow escrows we accept in timeshare transactions. The escrow for the sale of a typical residence goes quickly, and timeshare transfers are easier (no inspections, no appraisals, no mortgage applications, etc.).

Perhaps the low escrow fees we seek for independent timeshare escrows has created a "race for the bottom" on price -- and therefore quality. But there is zero excuse for the slow escrows on in-house escrows by the mass eBay sellers; they are well paid and should be able to close these things within a month.

 

[SueDonJ]

IMNSHO, it takes so long, because resales are not a priority.

But Marriott has a unit singularly devoted to processing internal resales so it's not like they're putting buybacks/brokered transactions aside to do something else. I think KathyPet's GO transaction could be impacted by the fact that South Carolina requires Marriott to use an attorney for the closing. (If you search SC records you'll find that SC recordings happen in bunches rather than singly, usually all filed by the same law firm.) Also, there's simply no way of knowing how many transactions Marriott Resales Operations is handling at any certain time.

 

[dougp26364]

I'm going to say the obvious......it's not a priority for them

 

[GrayFal]

Agree with Denise, resales are low priority even with Marriott taking their cut.

 

[bazzap]

It does make a difference if you have a Resale agent who has a good relationship with MVC and is pro-actively chasing them up.
None of our Resale purchases have taken more than 2 months, which still seems like a long time to me.

 

[davidvel]

But Marriott has a unit singularly devoted to processing internal resales so it's not like they're putting buybacks/brokered transactions aside to do something else. I think KathyPet's GO transaction could be impacted by the fact that South Carolina requires Marriott to use an attorney for the closing. (If you search SC records you'll find that SC recordings happen in bunches rather than singly, usually all filed by the same law firm.) Also, there's simply no way of knowing how many transactions Marriott Resales Operations is handling at any certain time.

I don't think Marriott has anything to do with closing. They just take the deed and transfer the ownership on its books.

 

[SueDonJ]

I don't think Marriott has anything to do with closing. They just take the deed and transfer the ownership on its books.

If this were an external resale then I'd say the same thing. But I was responding to Kathy saying she's selling her Week through Marriott and she doesn't understand their delay, and Denise saying the delay may be because whoever is working on it has more important priorities. With this being an internal resale it's being processed through Marriott Resales Operations and they don't have any other function but to work on internal resales, so who at Marriott would supposedly not prioritize this single transaction?

That's why I mentioned SC closings requiring an attorney, and in reviewing SC filings it's obvious that the law firm Marriott uses for internal resales routinely does bulk filings. I seem to remember that Resales Operations says pretty much the same thing with every SC transaction, that it can take up to 120 days. Sometimes it does, sometimes it doesn't, probably depending equally on any backlog in Resales Operations and on whatever point in the law firm's cycle a particular resale is processed.

That's my take.

 

[davidvel]

If this were an external resale then I'd say the same thing. But I was responding to Kathy saying she's selling her Week through Marriott and she doesn't understand their delay, and Denise saying the delay may be because whoever is working on it has more important priorities. With this being an internal resale it's being processed through Marriott Resales Operations and they don't have any other function but to work on internal resales, so who at Marriott would supposedly not prioritize this single transaction?

That's why I mentioned SC closings requiring an attorney, and in reviewing SC filings it's obvious that the law firm Marriott uses for internal resales routinely does bulk filings. I seem to remember that Resales Operations says pretty much the same thing with every SC transaction, that it can take up to 120 days. Sometimes it does, sometimes it doesn't, probably depending equally on any backlog in Resales Operations and on whatever point in the law firm's cycle a particular resale is processed.

That's my take.

Aaah, I missed it was an internal resale.

 

[TXTortoise]

FWIW, I just had a external resale week clear ROFR in about one week.

Submitted 6-14, cleared 6-23.

 

[hangloose]

FWIW, I just had a external resale week clear ROFR in about one week.

Submitted 6-14, cleared 6-23.

Congrats. That was fast! Another MOC? Don't forget to add to the ROFR Db.

 

[hangloose]

Off topic a little bit.

But, I am also curious how long it takes most of you to find the resale week you want at the price you want to pay? I've started looking for three specific resale weeks at prices within reason of those posted in the ROFR Db. Not a lot of luck yet. Perhaps I just need to be patient? I'm wondering if there are also fewer weeks available in 2Q/3Q, as maintenance fees aren't in front of the potential seller?

 

[NTP66]

It took 42 days to complete our first purchase, and 25 for our second (both MOC resale weeks). As for how long it took to find these units, once I decided that was the direction that I wanted to go, it didn't take very long at all. Probably a week or two for our 1BR, and a few weeks for our 2BR. We wanted EOY-Even OV units, and there were a good amount available. While I think we made out well in terms of pricing, I did see a 2BR OF go for slightly more than what we paid for our OV unit, and would have pounced on it had it been available at the time, but I can't say that I'm disappointed in our OV unit at all.

 

[dioxide45]

Off topic a little bit.

But, I am also curious how long it takes most of you to find the resale week you want at the price you want to pay? I've started looking for three specific resale weeks at prices within reason of those posted in the ROFR Db. Not a lot of luck yet. Perhaps I just need to be patient? I'm wondering if there are also fewer weeks available in 2Q/3Q, as maintenance fees aren't in front of the potential seller?

Q4 and Q1 probably have the most number of units available for sale. Mainly because MFs are coming due, are due, or are past due and people want to unload them before they have to pay. In the summer, everyone is happy and not thinking about it because they are using their units while on vacation.

 

[SueDonJ]

The search depends also on which resorts you're looking for, doesn't it? Stands to reason that the bigger the resort, the more units will be available on the market.

 

[Saintsfanfl]

If this were an external resale then I'd say the same thing.

The sale might be internal but the closing is not. Marriott farms out their closings to all kinds of 3rd party individuals and companies, so they are not solely in control of the timing. It's not legal for them to be both realtor and closing agent and most of the work is done by the closing agent.

They actually end up being one of the slowest in the industry because they do everything by the book just like they would a house including a complete chain of title search.

If it is less work than a house with a mortgage why does it take so much longer? In short it takes so long because nobody really cares. You don't have a seller that is waiting for the proceeds so they can buy another, you don't have a buyer waiting for closing so they can move in, and you don't have realtors waiting to get their fat commission checks. The answer is nobody is motivated to move things along in an urgent manner like they would a house.

Even a direct repurchase and not a brokered resale will take MVCI about 100 days for the closing paperwork to be ready and that is before the deed is even recorded. At least they distribute proceeds the day the deed and paperwork is received rather than waiting for the deed to be returned from the county and the transfer department to process the transfer. That would be at least another 30 days on top of the 100. It's insane.

 

[suenmike32]

I sold two individual units, (2 at MOP) last year myself, utilizing LT Transfers. By doing all the paper work myself, staying in close contact with the buyers and the closing company, I think the whole deal took about 6 weeks.
However, there were several slowdowns. All of them with Marriott. Their paperwork process is extremely slow unless you stay on top of it. ROFR waiver languished on someones desk (even though I knew it was approved). They then misplaced the waiver fee. There was something else as well but I don't recall. It was a pain but nonetheless by staying on top of them...it got done and it took no where near 4 months. I'd do it again in a heart beat. Actually, I'm trying to.