DVC RESALES
DVC RESALES

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Old 08-19-2013, 11:42 AM   #1
twinsouvenirs
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DVC Foreclosure Sheriff/Public Sales

Question for some of you who have been watching the foreclosure crisis and it's affect on DVC... do the DVC properties go through the same public judicial foreclosure process as other deeded properties, and if so, do the properties usually sell at public auction as other deeded properties? I know that many take a deed in lieu of foreclosure, but where an owner simply becomes unresponsive that is theoretically impossible. If so, has anyone bought one at sheriff/public sale?
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Old 08-19-2013, 12:14 PM   #2
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It would only happen if the owner did outside financing.

DVC just takes back contracts that they finance and contracts that didn't get the dues paid.

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Old 08-19-2013, 12:40 PM   #3
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How do they take them back? Is it through any kind of due process? We didn't finance so I've never seen any of the language.
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Old 08-19-2013, 12:49 PM   #4
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DVC contracts are sold at public auction. Search the Orange County Comptroller website for foreclosures and you'll eventually find some with accompanying documentation which lists details on the sale process.

I understand that at least one DVC reseller will occasionally buy contracts and then re-sell at a profit. Disney can also bid on the contracts but I suspect it is not a high priority; more work than ROFR and they don't even utilize ROFR to its full extent.

I'm sure there are also private individuals who try to flip contracts for profit.
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Old 08-19-2013, 12:56 PM   #5
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Huh!

I have to see if it's easy to sign up... if so, that would be a good way to add on. However, bidding against a broker might be a pain... almost as much as bidding against plaintiff to total debt, but if they aren't bidding, that makes it easier.

I just saw one that sold in mid July to Plaintiff (Palm Financial Services) for $100.00. It was .449 of an AKV unit. For a $100. GULP.
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Old 08-19-2013, 01:00 PM   #6
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Palm Financial Services is DVC's internal financing outfit. Without seeing the documentation, that one sounds like a foreclosure. Probably $100 in fees associated with the transfer.
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Old 08-19-2013, 09:31 PM   #7
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Foreclosures are tricky business and it largely depends on the lender and the accompanying contract if how it goes down. A timeshare is like a deed and contract hybrid. To that extent,the method for resolving a delinquency can vary by lender and by circumstance. Failure to pay MF would result in one method and failure to make monthly payments on the indebtedness could result in another. One would be a breach of contract with Disney and the other a loan default. Foreclosures can also be expensive there are filing fees, notice fees and sometimes advertisement expenses. that is why you see so many deeds in lieu of foreclosure.....a less expensive mechanism to revert title back to DVD.

I used to do some foreclosure work and I would be wary of trying to find a "deal"by foreclosure. When a resale closes there is a title check of sorts done to ensure no pending reservations made after contract by the broker, and I am told by Disney as well. Imagine the quagmire of attempting to buy a contract at foreclosure, trying to verify the status of reservations as a non member prior to bidding and then waiting for the process to finalize. There are other pitfalls like notice to the owner and verifying that the foreclosure was procedurally correct. Some attorneys make a living by doing foreclosures and examining the title of properties coming out of foreclosure. Lots of bases to be tagged and opportunities to have a de-rail.

You probably could do it, and it may work out just fine..... But It makes me think of a soup sandwich given you can buy resale and have a broker and then the title company to ensure proper transfer....

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Old 08-20-2013, 11:01 AM   #8
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Quote:
Originally Posted by Trooper8286 View Post
Foreclosures are tricky business and it largely depends on the lender and the accompanying contract if how it goes down. A timeshare is like a deed and contract hybrid. To that extent,the method for resolving a delinquency can vary by lender and by circumstance. Failure to pay MF would result in one method and failure to make monthly payments on the indebtedness could result in another. One would be a breach of contract with Disney and the other a loan default. Foreclosures can also be expensive there are filing fees, notice fees and sometimes advertisement expenses. that is why you see so many deeds in lieu of foreclosure.....a less expensive mechanism to revert title back to DVD.

I used to do some foreclosure work and I would be wary of trying to find a "deal"by foreclosure. When a resale closes there is a title check of sorts done to ensure no pending reservations made after contract by the broker, and I am told by Disney as well. Imagine the quagmire of attempting to buy a contract at foreclosure, trying to verify the status of reservations as a non member prior to bidding and then waiting for the process to finalize. There are other pitfalls like notice to the owner and verifying that the foreclosure was procedurally correct. Some attorneys make a living by doing foreclosures and examining the title of properties coming out of foreclosure. Lots of bases to be tagged and opportunities to have a de-rail.

You probably could do it, and it may work out just fine..... But It makes me think of a soup sandwich given you can buy resale and have a broker and then the title company to ensure proper transfer....

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Old 08-20-2013, 01:37 PM   #9
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So I've been digging, looks like most are purchased back by the mouse. In fact I am still looking for one purchased by a third party. I see some competitive bidding but not a lot, and it looks like only one bidder, who is outbid at the $6k mark by DVD.

You can bid online at the OC Clerk. Lots of Upcoming sales, many on SSR, BLT and OKW.
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Old 08-27-2013, 01:37 PM   #10
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I have to say I was curious as well on this foreclosure idea.

I can't find one time that DVD didn't buy back. Can anyone find any outside buyers that win any of the bids?
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Old 08-27-2013, 01:44 PM   #11
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I have to say I was curious as well on this foreclosure idea.

I can't find one time that DVD didn't buy back. Can anyone find any outside buyers that win any of the bids?
How much are they paying to buy them back?

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Old 08-27-2013, 01:52 PM   #12
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Almost all that I can find were purchased by Tom Yeary, owner of the Timeshare Store, and the last one was in 2008.

On the Orange County web site, search for deeds where the grantor is "ORANGE", put "-DISNEY" for "both parties" and set that to "wildcard search" and then on the second page of criteria put "DISNEY" in the legal remarks field. Then uncheck the "Uncheck to search specific document types" box and select "Deed" as the document type.

I get 98 hits. Some are clearly misfiled, and are not a Disney property at all. A bunch went to Thomas Yeary. Some went to Palm Financial, which is Disney's financing arm. Some went to Baker and Hostetler, which is Disney's law firm. There are a couple where it was bought back by the people who owned it originally. That's about it. There might be one or two others where someone else bought the property.

I would guess in a lot of these cases, there is money owed on the property that is worth more than the property itself, so the only entity interested in bidding on it is Disney. Those are the ones that are transferred for the minimum price to Disney or Palm Financial. The ones where the property is worth something, I would guess there are a few people who are willing to bid it up until it hits a reasonable resale value, and then Disney overbids and takes it.

It's almost always going to be worth more to Disney than to a reseller, so I doubt there are any screaming deals to be had. If there were, Tom Yeary or someone else would be snapping them up.
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Old 08-28-2013, 10:41 AM   #13
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I was curious so I took a look at the web site and found a BLT contract that looked like it might be a good deal, but I am not sure. It said that the unit number was 22A and the ownership interest was 0.5092%. So the big question is how many points is that? I figure the A probably means it is part of a lock off, but is it the one bedroom or the studio? Is it a standard view or a theme park view? Is there any way to know?
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Old 08-28-2013, 12:35 PM   #14
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I was curious so I took a look at the web site and found a BLT contract that looked like it might be a good deal, but I am not sure. It said that the unit number was 22A and the ownership interest was 0.5092%. So the big question is how many points is that? I figure the A probably means it is part of a lock off, but is it the one bedroom or the studio? Is it a standard view or a theme park view? Is there any way to know?
You can find the Unit information by looking up the floor plans for the resort on the Orange Country Comptroller's website. Someone here has probably done that for the Units at BLT and could tell you about Unit 22A. However, you would need to know the total points assigned to that Unit and then multiply that by 0.5092% to get the number of points in that contract.

Units can vary in size. For example, at AKV a Unit could be as small as 3 studios or as large as two 2BR lockoffs or a GV. As far as the "A" on the Unit number, some Units have just a number, some have a number with an "A" on the end. There is nothing significant I can see about the AKV Units ending in "A" other than that they are adjacent to Units with the same number without the "A". Just a guess but since all of the Units with an "A" on the end are in the first parts of the resort to be declared, it's possible they split up some Units so they could offer points for all Use Years while still holding down the total number of points in the initial declarations. This is for AKV/Jambo House however. I have no idea about the assignment of Unit numbers at BLT.

The only time your Unit number would matter is if part of a resort was damaged due to a fire, hurricane or other disaster and Disney opted not to rebuild that section. Those members who owned a piece of the damaged Units would receive any insurance proceeds and would no longer be owners at that resort unless they owned other contracts there in areas that remained open.
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Old 08-28-2013, 01:06 PM   #15
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I was curious so I took a look at the web site and found a BLT contract that looked like it might be a good deal, but I am not sure. It said that the unit number was 22A and the ownership interest was 0.5092%. So the big question is how many points is that? I figure the A probably means it is part of a lock off, but is it the one bedroom or the studio? Is it a standard view or a theme park view? Is there any way to know?
Which web site? The Orange County Comptroller's? Or is there a web site listing deeds that are coming up for auction?

A "Unit" in DVC deeds is an arbitrary chunk of rooms that is a convenience for complying with Florida timeshare laws. Units vary in the number of points, though often there are only a handful of sizes. For BLT, most of the units have a total 19,640 or 39,280 points. Unit 22A is one of the 39,280-point units, so 0.5092% of it is 200 points. Each unit has a single use year assigned to it, and 22A's is February.

The "A" is meaningless, as far as I can tell. Some resorts have just numbers, some have numbers and letters, some have numbers and letters for some units and numbers for other units.
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