DVC RESALES
DVC RESALES

Go Back   The DIS Discussion Forums - DISboards.com > Disney Vacation Club > Purchasing DVC
facebooktwitterpinterestgoogle plusyoutubeDIS UpdatesDIS email updates
Register Chat FAQ Tickers Search Today's Posts Mark Forums Read





Reply
 
Thread Tools Rate Thread Display Modes
Old 09-30-2008, 08:36 AM   #1
jschrots
We LOVE Disney!
 
jschrots's Avatar
 
Join Date: Jul 2008
Posts: 41

DVC Foreclosure?

How does Disney handle things if you cannot pay due to economic times? Does Disney buy back the contract? So if people cannot pay their financing to DVC, will Disney just take it away from them or foreclose? What else will happen? Collections agency? Bad Credit score?
What do you think?
__________________

Jen
jschrots is offline   Reply With Quote
Old 09-30-2008, 08:51 AM   #2
chalee94
I thought all sand was ground up rocks
He's used to walking n00bies
 
Join Date: Aug 2006
Location: Winston-Salem, NC
Posts: 7,947

i'm pretty sure disney will just take back the asset.

you may be better off selling for some value, rather than just giving it back for nothing...
__________________
-Charles

chalee94 is offline   Reply With Quote
|
The DIS
Register to remove

Join Date: 1997
Location: Orlando, FL
Posts: 1,000,000
Old 09-30-2008, 09:18 AM   #3
LisaS
DIS Veteran
 
LisaS's Avatar
 
Join Date: Feb 2005
Location: MA & AKV/BWV/VWL
Posts: 10,042

Based on the documents I've seen on the Orange County website the first step they take is to get a lien against the contract. If the owner doesn't pay what they owe within the specified period of time, the next step is foreclosure and then an auction of the contract.
__________________
LisaS is offline   Reply With Quote
Old 09-30-2008, 09:21 AM   #4
jschrots
We LOVE Disney!
 
jschrots's Avatar
 
Join Date: Jul 2008
Posts: 41

Quote:
Originally Posted by LisaS View Post
Based on the documents I've seen on the Orange County website the first step they take is to get a lien against the contract. If the owner doesn't pay what they owe within the specified period of time, the next step is foreclosure and then an auction of the contract.
Hi Lisa,
But will this effect credit scores if going into foreclosure since DVC does not even run the credit to give the loan?
I am only asking because we are thinking of joining DVC. We can afford the payments, but am afraid with this economy the "what if's"? What if we lose our jobs, etc.???
__________________

Jen
jschrots is offline   Reply With Quote
Old 09-30-2008, 09:25 AM   #5
december14disney
December Magic
 
december14disney's Avatar
 
Join Date: Jul 2008
Posts: 645

From what I have heard if you finance you credit IS pulled. Are you speaking of not making payments on the loan of the initial contract or not making your annual dues? These are probably two different things. I am sure it will go against you in a negative way either way. I guess unfortunatly now-a-days even in the most "stable" jobs you have a "what if" question to ask. I dont think any jobs are stable anymore.
__________________
Trips since joining DVC in 12/08:
04/09, 05/09, 09/09, 12/09, 01/10.
Upcoming trips!
08/10 Trip with 30 friends!
10/10 at Beach Club or Boardwalk Villas!

Proud member of the Kidani Club and proud DVC owner!


Follow me on Twitter: www.twitter.com/kidanikatie
december14disney is offline   Reply With Quote
Old 09-30-2008, 09:54 AM   #6
5forDiz
DIS Veteran
 
5forDiz's Avatar
 
Join Date: Dec 2001
Location: Staten Island, New York
Posts: 3,367

Quote:
Originally Posted by jschrots View Post
Hi Lisa,
But will this effect credit scores if going into foreclosure since DVC does not even run the credit to give the loan?
I am only asking because we are thinking of joining DVC. We can afford the payments, but am afraid with this economy the "what if's"? What if we lose our jobs, etc.???
I could be mistaken, but my brother financed his DVC purchase through Disney and I am certain he told me they ran credit check, etc. just as lender typically does. Unless I completely misunderstood my bro, this was how Disney determined down payment they had to give & the interest rate.

I think they don't run your credit if you want financing from them for a future add-on contract.

Your questions re foreclosure, etc. a extremely important & need definite answers. Just MHO but I would guess a DVC foreclosure could impact credit scores because it is defaulting on a loan.
5forDiz is offline   Reply With Quote
Old 09-30-2008, 09:56 AM   #7
drusba

DIS Veteran
 
drusba's Avatar
 
Join Date: Aug 1999
Location: Chicago
Posts: 10,198

Failure to pay first results in suspension of your ability to reserve rooms and then a lien and ultimately a foreclosure. The lien and foreclosures will be a matter of public record in the files that contain your applicable mortgage/deed documents and as a result will definitely show up in any credit check that is done on you and lower your credit rating.
__________________
Everything has to have a beginning and an end ... but it is not necessary to have a purpose in between.
drusba is offline   Reply With Quote
Old 09-30-2008, 10:41 AM   #8
Tozzie
DIS Veteran
 
Join Date: Jun 2008
Posts: 2,844

I think there is some confusion a credit check is run by disney if you finance to determine the rate, it has been stated by several people that a DVC finance will not show up on your credit report (don't know if that is true or not) A foreclosure would more than likely show up on your credit report.


I will say if you don' t own at the present time and are thinking in terms of not being able to pay for the loan why are you considering even purchasing DVC is a luxury in the scheme of things and if I was unsure about my job 6 months or a year from now I wouldn't be buying DVC.
Tozzie is offline   Reply With Quote
Old 09-30-2008, 10:47 AM   #9
dbertola
Mouseketeer
 
Join Date: Sep 2005
Location: connecticut
Posts: 202

When we were there in August the sales rep told us that it would not show up or affect our credit because Disney does there own financing and they are not a bank. I don't know if that is true, but that's what he told us.
__________________
dbertola is offline   Reply With Quote
Old 09-30-2008, 10:56 AM   #10
kjd469
Addicted to WDW
 
kjd469's Avatar
 
Join Date: Sep 2008
Posts: 618

I have to agree with previous posters and say that if there is even a hint in your mind that you may not be able to meet the payments - perhaps you should not be considering buying at this time. Why put yourself through that stress?
__________________
ABD Backstage Magic August 2012
ABD Sacred Valleys & Incan Cities - 2nd time! June 2012
ABD Italy/Swiss Alps July 2011
ABD Southwest Splendors July '09
ABD Sacred Valleys & Incan Cities Oct. '08
Inaugural Sailing of Disney Magic August '98
7 night Western Carib. Disney Magic October 2003
3 night Bahamas Disney Wonder March 2006
4 night Bahamas Disney Wonder March 2008
4 night DVC S.S. Member Cruise - Disney Wonder Sept. 2010
3 night Bahamas Disney Dream October 2011
7 night Eastern Carib. Disney Fantasy June 2012
www.whencanwego.blogspot.com
kjd469 is offline   Reply With Quote
Old 09-30-2008, 12:24 PM   #11
drusba

DIS Veteran
 
drusba's Avatar
 
Join Date: Aug 1999
Location: Chicago
Posts: 10,198

Quote:
Originally Posted by dbertola View Post
When we were there in August the sales rep told us that it would not show up or affect our credit because Disney does there own financing and they are not a bank. I don't know if that is true, but that's what he told us.
Not sure what the rep was talking about. Disney does its own financing but the loan document is filed in the local recorder's office as is the deed and your name will be on those. Moreover, you will be paying for any loan out of your bank account. When someone runs a credit check it includes a check of public records. It also includes a check of your bank accounts and any regular payments you are making will show up. Essentially everything that appears in a public record filing, your bank and credit card accounts, and anything you are paying to a lending institution and whether there has been a late payment, regardless of whether it is a bank, is going to show up in any credit report done on you. Your financial life, except for things for which you pay cash, is all recorded in computer databases somewhere and a credit agency doing a credit check will find those.
__________________
Everything has to have a beginning and an end ... but it is not necessary to have a purpose in between.
drusba is offline   Reply With Quote
Old 09-30-2008, 12:37 PM   #12
Desnik
I actually love packing and planning
I'm glad DH and I were friends first then a couple
 
Desnik's Avatar
 
Join Date: Oct 1999
Location: NY, SSR, AKV
Posts: 8,324

DVC does a credit check when you want to finance through them. That determines your interest rate and down payment. If your credit isn't good they will charge you a higher interest rate and/or ask for a bigger down payment. The loan does NOT show on your credit report. I have checked my credit report numerous times and DVC never shows up on any of the reports from all the agencies. If you do an add on and want to finance and already have financed through them(and are in good standing with them) they will NOT check your credit again. I make my DVC payments through the DVC website using my debit card and it does show DVC payments on my checking account statements. With that said I have never had any financial institution I was trying to get a loan from check my checking account statements to see who I am making payments to.
__________________
Our Disney Vacations: SSR AUG 2014 * PoP, DISNEY DREAM, AKV JAN 2014 * AoA, BLT AUG 2013 * AoA, WLV Xmas 2012 * AKV AUG 2011 * SSR AUG 2010 * BWI, AKV JUNE 2010 * GF NOV 2009 * POLY JUNE 2009 * AKV, BCV JAN 2009 * BWV JULY 2008 * OKW APRIL 2008 * AKV, SSR NOV 2007 * CR MK VIEW! OCT 2007 * BWV APRIL 2007 * SSR NOV 2006 * BWV, SSR MAY 2006 * SSR, VERO JUNE 2005 * POR, WL, BWV NOV 2004 * ASMo, BWV NOV 2003 * BWI May 2002 * GF NOV 2001 * CSR, VERO NOV 2000 * Offsite Oct. 1998, July 1997 and 1983
Our Disney Vow Renewal TR
Desnik is offline   Reply With Quote
Old 09-30-2008, 12:48 PM   #13
np4gp
Always down for a day at Disney
 
np4gp's Avatar
 
Join Date: Aug 2008
Location: Sanford, FL
Posts: 311

Although I know that Disney does run a credit report, I do not understand how or why it would not show up on a credit report. I received mail from DVC today for myself and my husband that was disclosure of the credit scores they used as a basis for our financing.

The only other debt I have not had show up on my credit report was a business credit card I had when I was working from home. I won't complain about it not showing on my credit report, but I would have to guess that if the DVC does go into foreclosure or there is any lien placed against you that it WILL show up on the public records section of the credit report - and those can negatively impact your credit score.
__________________
ME :::: DH :::: DS5 DD2::rincess:::



np4gp is offline   Reply With Quote
Old 09-30-2008, 01:04 PM   #14
scout68
We dig the Duck
 
scout68's Avatar
 
Join Date: Oct 2007
Posts: 214

This is just a guess. I believe the main advantage with financing through Dis. is it dosn't count against your earnigs to debt ratio.
__________________
"There are lots of horrid people on this planet, that I would love to give a lashing to."

Doofenshmirtz


Headed home 11-1
scout68 is offline   Reply With Quote
Old 09-30-2008, 01:42 PM   #15
crisi
DIS Veteran
 
crisi's Avatar
 
Join Date: Feb 2002
Posts: 22,397

Quote:
Originally Posted by scout68 View Post
This is just a guess. I believe the main advantage with financing through Dis. is it dosn't count against your earnigs to debt ratio.
That's an advantage???!!!!
crisi is offline   Reply With Quote
Reply



Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

DVC-Resales.com | 1-800-550-6493 (Contact The Timeshare Store) | DVC Resale Listings

facebooktwittergoogle plus youtube itunesDIS Updates
GET OUR DIS UPDATES DELIVERED BY EMAIL



All times are GMT -5. The time now is 04:37 AM.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

Copyright © 1997-2014, Werner Technologies, LLC. All Rights Reserved.