Buying DVC Foreclosures? Current Listings going to auction in March 2019

spacepoints

Earning My Ears
Joined
Jul 24, 2006
So this rush of trying to get contracts to ROFR before 1/19 to avoid the new restrictions has had me scouring the comptrollers website to see if I could get an idea of what Disney was exercising its right on. In searching, I came across something that I know people before me have, but it seems like a viable, albeit more risky, way to purchase DVC and avoid the ROFR process altogether. On this thread, I plan to update it with upcoming foreclosure auctions through Orange county. Most of these sales go straight back to Disney for ***$100*** for them to resell them at current costs.

Of course, there are additional fees such as settling the lien on the contract, but even so, Disney (with no one else bidding) is purchasing these contracts back at sometimes 40% of what they are ROFRing. For example, I saw one where after settling the back fees + their bid of $100, they got BLT points near $60pp.

I am not saying this is for everyone, but it just presents another purchasing option. With us bidding against Disney, we can *possibly* get contacts for less than even current resale rates. I know that I have identified a contract I will be bidding on in February if my current one in process gets taken by Disney.

The one thing I am not sure about, and I'd be interested to hear in comments, is what member benefits or restrictions these contracts will have. Are they treated as resales? Or if it's a foreclosed contract from an original owner who bought direct from Disney, will it be treated as a transfer like an inheritance? Regardless, it doesn't matter to me since if I bought resale right now, it would be restricted (and I already have my blue card).
 
Auction Date-Resort-UY-Points-Lien
5-Mar SSR Aug 100 $ 3,766.00
5-Mar AKL Sep 100 $ 12,515.00
5-Mar AKL Mar 300 $ 5,162.00
5-Mar AKL Feb 100 $ 5,587.00
5-Mar AKL Dec 170 $ 20,507.00
5-Mar OKW Apr 25 $ 1,520.00
5-Mar AKL Apr 220 $ 20,047.00
5-Mar OKW Apr 50 $ 1,261.00
5-Mar OKW Apr 250 $ 2,498.00

Updated to take out starting price per point.
 
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So this rush of trying to get contracts to ROFR before 1/19 to avoid the new restrictions has had me scouring the comptrollers website to see if I could get an idea of what Disney was exercising its right on. In searching, I came across something that I know people before me have, but it seems like a viable, albeit more risky, way to purchase DVC and avoid the ROFR process altogether. On this thread, I plan to update it with upcoming foreclosure auctions through Orange county. Most of these sales go straight back to Disney for ***$100*** for them to resell them at current costs.

Of course, there are additional fees such as settling the lien on the contract, but even so, Disney (with no one else bidding) is purchasing these contracts back at sometimes 40% of what they are ROFRing. For example, I saw one where after settling the back fees + their bid of $100, they got BLT points near $60pp.

I am not saying this is for everyone, but it just presents another purchasing option. With us bidding against Disney, we can *possibly* get contacts for less than even current resale rates. I know that I have identified a contract I will be bidding on in February if my current one in process gets taken by Disney.

The one thing I am not sure about, and I'd be interested to hear in comments, is what member benefits or restrictions these contracts will have. Are they treated as resales? Or if it's a foreclosed contract from an original owner who bought direct from Disney, will it be treated as a transfer like an inheritance? Regardless, it doesn't matter to me since if I bought resale right now, it would be restricted (and I already have my blue card).
My experience following the foreclosure sales is that Disney is bidding up to what the resale values are so when they aren’t bid up that high it is simply because no one else bid against them. Yes you skip ROFR, they are treated as resale for restrictions, and you have to settle any outstanding MF or liens. The only MF or liens you don’t have to settle are those the judgement that forced the forclosure are on. So if the judgement is for 2015 MF you will still need to pay 2016, 2017, etc but would only have the current and next use year points. So there is risk but can be higher reward. Usually you have better “deals” on bigger contracts.

When buying foreclosure it is important that any lien that is “reasonably searched for” becomes your responsibility if not satisfied by the judgement.

For a little color a 25 point Boardwalk contract went for 3,900 and had no mortgage. However the judgement was for 2016 MF so the winner had to pay 2017, 2018, and 2019. To me that was overpaying. Also a lot of business bid on these in an attempt to flip them it appears.

I can provide details on how to find all the foreclosure sales and the auction website if you like. It’s fairly easy to search but connecting back to the deed that has the point and use year information is the “hardest” step. Else the foreclosure site just tells you the unit and resort at most which are too generic.
 


Ew. Didn't think about the previous MF. Maybe I won't maintain this post. :)
I think it’s an interesting thing that people should know about. But they should look to see what would be the max owed and any other liabilities. I’m sure there are deals out there. Plus if it is only 1-3 years behind the MF won’t be too big of an issue because you’ll have 2 years of points and can rent a year to offset.

Also sometimes the sales are less than the lien. If that happens it does satisfy that particular lien just the lien holder has to take a loss. But I suspect Disney would never let them go for less than that.
 
I can provide details on how to find all the foreclosure sales and the auction website if you like. It’s fairly easy to search but connecting back to the deed that has the point and use year information is the “hardest” step. Else the foreclosure site just tells you the unit and resort at most which are too generic.
Thanks, I’d be interested in how to run the search. I’m just curious so if explaining the “back deed search” is laborsome don’t worry about that part. I’m pretty familiar with OCC and have managed to noodle out a lot of things there.
 
Thanks, I’d be interested in how to run the search. I’m just curious so if explaining the “back deed search” is laborsome don’t worry about that part. I’m pretty familiar with OCC and have managed to noodle out a lot of things there.

Backdeed search isn't that hard. To start, you look at the judgement, which shows what the lien is against the prv. owner. That will have their name. Then you search the comptroller site for deeds with that person's name as the grantee. Since you already know the property, you can add that to the legal remarks on the advanced tab. For example, BLT - you'd enter contemporary, OKW original, just vacation, SSR saratoga, etc. PM me for any other help. That's how I compiled the list above.
 


Backdeed search isn't that hard. To start, you look at the judgement, which shows what the lien is against the prv. owner. That will have their name. Then you search the comptroller site for deeds with that person's name as the grantee. Since you already know the property, you can add that to the legal remarks on the advanced tab. For example, BLT - you'd enter contemporary, OKW original, just vacation, SSR saratoga, etc. PM me for any other help. That's how I compiled the list above.

Thank you, so for step one for the foreclosure listings(s) you do what?
 
Thank you, so for step one for the foreclosure listings(s) you do what?

You can search the site for "either party" as palm financial and "doc type" judgement. The judgement has the auction date on it. They always start at 11a Eastern

Alternatively, a more painstaking process is going day by day on the auction site, looking for the timeshares listed there.
 
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Auction Date-Resort-UY-Points-Lien-Starting Price PP
5-Mar SSR Aug 100 $ 3,766.00 - 38.66
5-Mar AKL Sep 100 $ 12,515.00 - 126.15
5-Mar AKL Mar 300 $ 5,162.00 - 17.54
5-Mar AKL Feb 100 $ 5,587.00 - 56.87
5-Mar AKL Dec 170 $ 20,507.00 - 121.22
5-Mar OKW Apr 25 $ 1,520.00 - 64.80
5-Mar AKL Apr 220 $ 20,047.00 - 91.58
5-Mar OKW Apr 50 $ 1,261.00 - 27.22
5-Mar OKW Apr 250 $ 2,498.00 - 10.39

To my knowledge these are not the starting price per point for the foreclosure. These are the outstanding amounts on these contracts. It could be simply back MF that were not paid, it could be mortgages that were not paid and the fees that added up. All auctions start at $100 or $0 (I forget which) and people bid up - Disney bids against people bidding. If you watch the foreclosures long enough you will see the same set of people winning the auctions, so there are people doing this as a business of flipping contracts or way to load up contracts for renting. I do believe DVC has a limit on the number of points or contracts that can be owned, but you will also see the deeds written differently with the same people typically winning the contracts.

From what i have read before - the winning bidder pays what they won the auction for and they are responsible for MF -- That is the real unknown. Do you own MF for that contract for everything that has been outstanding? I see some contracts which started the foreclosure process in 2017 which are just going up for auction now - so does that mean you owe MF for 2017, 2018 and 2019? Maybe someone who has gone through the process can shed some light on this part.

I think if you research the contracts, points, UY and get an estimate of what might be due for MF you might be able to purchase for slightly less than resale. I think DVC has their hand in it enough to make sure no one is walking away with a contact for $100 -- only they are.
 
To my knowledge these are not the starting price per point for the foreclosure. These are the outstanding amounts on these contracts. It could be simply back MF that were not paid, it could be mortgages that were not paid and the fees that added up. All auctions start at $100 or $0 (I forget which) and people bid up - Disney bids against people bidding. If you watch the foreclosures long enough you will see the same set of people winning the auctions, so there are people doing this as a business of flipping contracts or way to load up contracts for renting. I do believe DVC has a limit on the number of points or contracts that can be owned, but you will also see the deeds written differently with the same people typically winning the contracts.

From what i have read before - the winning bidder pays what they won the auction for and they are responsible for MF -- That is the real unknown. Do you own MF for that contract for everything that has been outstanding? I see some contracts which started the foreclosure process in 2017 which are just going up for auction now - so does that mean you owe MF for 2017, 2018 and 2019? Maybe someone who has gone through the process can shed some light on this part.

I think if you research the contracts, points, UY and get an estimate of what might be due for MF you might be able to purchase for slightly less than resale. I think DVC has their hand in it enough to make sure no one is walking away with a contact for $100 -- only they are.
My understanding is you owe all liens and MF that were not on the judgement. So if the judgement was for 2015 MF then you would owe 2016 forward (assuming, which is likely, the owner didn’t pay the later ones). It is also possible for a lien/mortgage to be present to that you would then be resoponsible for if they liened on the MF but not the mortgage. It is very important that you do a title search to know any outstanding debt that might exist on the property.
 
Auction Date-Resort-UY-Points-Lien
5-Mar SSR Aug 100 $ 3,766.00
5-Mar AKL Sep 100 $ 12,515.00
5-Mar AKL Mar 300 $ 5,162.00
5-Mar AKL Feb 100 $ 5,587.00
5-Mar AKL Dec 170 $ 20,507.00
5-Mar OKW Apr 25 $ 1,520.00
5-Mar AKL Apr 220 $ 20,047.00
5-Mar OKW Apr 50 $ 1,261.00
5-Mar OKW Apr 250 $ 2,498.00
i have been trying for a couple hours now but cant figure out how you are able to find the points and use year that goes along with each foreclosure. i did find 1 copy of someones financing contract and from the dates and price paid was able to guesstimate what the point total could be but that's it
any suggestions would be greatly appreciated
 
i have been trying for a couple hours now but cant figure out how you are able to find the points and use year that goes along with each foreclosure. i did find 1 copy of someones financing contract and from the dates and price paid was able to guesstimate what the point total could be but that's it
any suggestions would be greatly appreciated
They take the judgement which will have the people’s name. Then on the Comptroller’s website they search for a deed with that name. You then can find that deed that refrences the contract number. In there it will have the point information.
 
They take the judgement which will have the people’s name. Then on the Comptroller’s website they search for a deed with that name. You then can find that deed that refrences the contract number. In there it will have the point information.

thank you finding them now
 
You can search the site for "either party" as palm financial and "doc type" judgement. The judgement has the auction date on it. They always start at 11a Eastern

Alternatively, a more painstaking process is going day by day on the auction site, looking for the timeshares listed there.
Thank you
 
I don't believe you can get UY available points information either way (I'm sure someone will correct me if I'm wrong.) Based that I'd bid with the assumption that they're fully stripped.
 
I don't believe you can get UY available points information either way (I'm sure someone will correct me if I'm wrong.) Based that I'd bid with the assumption that they're fully stripped.
You can get the UY but not the available points correct. Though if being sold in foreclosure it was likely Locked Out by Disney so you could assume they couldn’t use the points based on a judgement call. For example if being foreclosed for not paying 2015 dues the most that could have been stripped away was the 2015/2016 points depending on use year.
 

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