Getting worried that Disney is going to excercises Rofr on my BWV purchase.

[Madhattr]

Except since they opened up direct purchase at the beginning of Feb there is a good waiting list now. They need to snag some points up.

[MickeyFan612]

With Disney's impending price increases, long waiting lists are forming thus creating the need to find more points- looks like through ROFR! More ROFR activity drives up resale prices helping to support new direct pricing! Ingenious plan by Disney!

[CarolMN]

Originally Posted by wdrl

...(snip)...... For the 14 months from January 2012 to February 2013, DVD ROFRed only 1,295 BLT points. However, it reacquired 61,823 BLT points through foreclosure proceedings during that same period.

Wow! Another good reason why financing a luxury purchase is very seldom (if ever) a good idea!

[wdrl]

Originally Posted by ELMC

Very interesting and very scary. Is there any way of knowing which contracts had balances on them and which didn't? I can understand giving back a contract with a balance, but in the case of a completely paid for contract the owner had other options.

No, there isn't any way (at least not for me) to know the financial status of the deeds that are foreclosed by Disney. However, there are two types of foreclosures exercised by Disney. One type is the "Warranty Deed in Lieu of Foreclosure." Based on the title and the wording of the document, it appears to be an internal document used by Disney to reacquire deeds from directly from a Member that is in arrears. I suspect that Disney uses this method of foreclosure when the Member willingly agrees to give up their ownership interest in exchange for some compensation. Its probably also the method used by Disney before it initiates court action against a Member.

The second type of foreclosure is a "Certificate of Title" issued by the 9th iCircuit Court for Orange County. Since this type of foreclosure is an official court action, its probably undertaken by Disney when all other methods of recovery have failed. Also, Palm Financial Services (DVD's mortgage loan operation) is almost always a party in these types of foreclosures. Thus, these foreclosures might be due to Members being in arrears on loan repayments rather than past due on maintenance fees.

Certificates of Title judicial foreclosures are slightly more common than Warranty Deeds in Lieu of Foreclosure, at least for BLT and AKV, the only two DVC resorts for which I track reacqusitions. Since sales started at BLT, DVD has reacquired 310 BLT deeds containing 53,903 points via Warranty Deeds in Lieu of Foreclosure and 331 deeds containing 59,012 points via Certificates of Title judicial foreclosures. For AKV, the numbers are 956 deeds/169,129 points and 981 deeds/175,181 points, respectively.

[ELMC]

Originally Posted by wdrl

No, there isn't any way (at least not for me) to know the financial status of the deeds that are foreclosed by Disney. However, there are two types of foreclosures exercised by Disney. One type is the "Warranty Deed in Lieu of Foreclosure." Based on the title and the wording of the document, it appears to be an internal document used by Disney to reacquire deeds from directly from a Member that is in arrears. I suspect that Disney uses this method of foreclosure when the Member willingly agrees to give up their ownership interest in exchange for some compensation. Its probably also the method used by Disney before it initiates court action against a Member.

The second type of foreclosure is a "Certificate of Title" issued by the 9th iCircuit Court for Orange County. Since this type of foreclosure is an official court action, its probably undertaken by Disney when all other methods of recovery have failed. Also, Palm Financial Services (DVD's mortgage loan operation) is almost always a party in these types of foreclosures. Thus, these foreclosures might be due to Members being in arrears on loan repayments rather than past due on maintenance fees.

Certificates of Title judicial foreclosures are slightly more common than Warranty Deeds in Lieu of Foreclosure, at least for BLT and AKV, the only two DVC resorts for which I track reacqusitions. Since sales started at BLT, DVD has reacquired 310 BLT deeds containing 53,903 points via Warranty Deeds in Lieu of Foreclosure and 331 deeds containing 59,012 points via Certificates of Title judicial foreclosures. For AKV, the numbers are 956 deeds/169,129 points and 981 deeds/175,181 points, respectively.

That is great information, thanks for doing the work and sharing. I would love to have a product that I can sell to the consumer, take it back a few years later and sell it again. What a great business model. Anybody in the market for some ABC gum?

[Caren90]

Originally Posted by ELMC

That is great information, thanks for doing the work and sharing. I would love to have a product that I can sell to the consumer, take it back a few years later and sell it again. What a great business model. Anybody in the market for some ABC gum?

My son's school bookstore does the exact same thing.

Stephen

[DeeCee735]

Originally Posted by Caren90

My son's school bookstore does the exact same thing.

Stephen

Yup!

[bobbiwoz]

Originally Posted by CarolMN

Wow! Another good reason why financing a luxury purchase is very seldom (if ever) a good idea!

We were in the market for BLT resale, and the 2 that we were interested in (because of UY) were owned by owners who could not take less than "X" because of their financing. One owner, did go down 1 more dollar, so whether to us or to Disney, that contract is sold!
If I were in trouble financially, I think I would rather lose just a little bit more than dig in my heels and wait for the full price.

[johnsbelt]

Originally Posted by bobbiwoz

We were in the market for BLT resale, and the 2 that we were interested in (because of UY) were owned by owners who could not take less than "X" because of their financing. One owner, did go down 1 more dollar, so whether to us or to Disney, that contract is sold!
If I were in trouble financially, I think I would rather lose just a little bit more than dig in my heels and wait for the full price.

It also comes down to spending more money on something you will not be able to keep (foreclosure/deed in leau) vs selling and throwing more good money after bad. From what I've read on the boards, Disney doesn't do a lot of checking on your credit report prior to the sale and also doesn't report the payment/non-payment of the loan on DVC. If there isn't any downside (credit reporting wise) to having Disney talking it back, then why sell and bring monty to the table.

I'm sure someone will let me know if I'm incorrect on this.


John

[ozzie2131]

Well I guess I had a reason to worry Disney excercised its rofr on my bwv contract. 150 pts march use year loaded contract. I guess i started one month early. With all the ROFR and the possibility of changes coming on March 20 i may never buy. Disney is screwing this up. They are going to price the middle class right out of Disney.

[dbs1228]

Originally Posted by ozzie2131

Well I guess I had a reason to worry Disney excercised its rofr on my bwv contract. 150 pts march use year loaded contract. I guess i started one month early. With all the ROFR and the possibility of changes coming on March 20 i may never buy. Disney is screwing this up. They are going to price the middle class right out of Disney.

IMO even though dvc is raising there price for direct sales there is always going to be a resale market that will fluctuate from time to time (like the frenzy right now and back in 2011 right before they changed rules for resale)

I do not believe resale will command anywhere near a price increase as direct and for that matter I do not see them going up that much at all once the demand decreases and after the dust settles!

I cannot believe people are lining up in waiting list to buy direct for 115.00PP because dvc has made them believe its a "DEAL". I do get the direct low point buys of 25 - 50 points other then that its crazy!

Good luck going forward hope you get what you want!

[CarolMN]

Originally Posted by ozzie2131

Well I guess I had a reason to worry Disney excercised its rofr on my bwv contract. 150 pts march use year loaded contract. I guess i started one month early. With all the ROFR and the possibility of changes coming on March 20 i may never buy. Disney is screwing this up. They are going to price the middle class right out of Disney.

I'm sorry you missed out on that one. Good luck next time!

[bakerworld]

Originally Posted by ozzie2131

Well I guess I had a reason to worry Disney excercised its rofr on my bwv contract. 150 pts march use year loaded contract. I guess i started one month early. With all the ROFR and the possibility of changes coming on March 20 i may never buy. Disney is screwing this up. They are going to price the middle class right out of Disney.

I'd re-offer on something after 3/20 - if re-sale becomes venue specific there's a real possibility re-sale will hit all time lows