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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