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

[dvc lover 1970]

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.

Can you please share how and where to find these

 

[CastAStone]

Can you please share how and where to find these

The link is in post 10 of this thread. It’s a very labor intensive process; it’s not like there’s a list. You have to check every single timeshare auction to see if it’s DVC.

 

[SuzGM84]

Curious question for anyone who won a foreclosure. Once you won, HOW do you get the points into your account? I'd presume you'd need a title company to assist (if you're not local to the area). Curious about the logistics of this piece to the puzzle.

 

[VGCgroupie]

I have came back to this thread many times over the last year but never jumped in and asked questions since it seems too risky for my taste, I actually have figured out how to access all the foreclosures and I have looked many many times. But never felt the need to think about it further.

Has anyone recently within the last year successfully purchased at auction willing to share their experience?

 

[HyperspaceMountainPilot]

Has anyone recently within the last year successfully purchased at auction willing to share their experience?

+1

Do they tell you the amount of dues outstanding before you bid?

 

[VGCgroupie]

+1

Do they tell you the amount of dues outstanding before you bid?

From the research I have done they do not. You have to try and guess based off when it went into foreclosure.

I am still trying to understand ALL of the fees involved in addition to bid price.

There are lot of BW and BC, I am assuming its due to how old the resorts are.

 

[HyperspaceMountainPilot]

From the research I have done they do not. You have to try and guess based off when it went into foreclosure.

I am still trying to understand ALL of the fees involved in addition to bid price.

There are lot of BW and BC, I am assuming its due to how old the resorts are.

I guess the real question is “how frequently are the dues over $100/pt” in theory that would be at least 8 years of arrears, but don’t know about fines, interest, other penalties?

 

[cruisehopeful]

I always thought the foreclosures went back to Disney. Is it still a rofr situation? If someone wants to buy the foreclosure, does Disney step in and take it?

 

[achinforsomebacon]

Sometimes you can find info on dues since DVD will file a lien. I remember looking at this a few years ago and there would be filings on the same site as where the deeds are recorded that would list a bunch of owners and amounts due. Now that would be at a point in time and not sure how current it was from when it was filed so it wouldn't be exact.

The bigger issue I saw was I'm pretty sure you had to deposit funds prior to actually bidding because you had to pay within 24 hours. Unless you were local and could go in person. I wasn't familiar enough with that part of it (is it easy to get your money back? Fees for transferring?). Maybe it's changed now. Have you gotten that far with your research?

 

[VGCgroupie]

I always thought the foreclosures went back to Disney. Is it still a rofr situation? If someone wants to buy the foreclosure, does Disney step in and take it?

No ROFR process but Disney often bids and buys them back.

 

[VGCgroupie]

Sometimes you can find info on dues since DVD will file a lien. I remember looking at this a few years ago and there would be filings on the same site as where the deeds are recorded that would list a bunch of owners and amounts due. Now that would be at a point in time and not sure how current it was from when it was filed so it wouldn't be exact.

The bigger issue I saw was I'm pretty sure you had to deposit funds prior to actually bidding because you had to pay within 24 hours. Unless you were local and could go in person. I wasn't familiar enough with that part of it (is it easy to get your money back? Fees for transferring?). Maybe it's changed now. Have you gotten that far with your research?

This was a very thorough article on it. You pay deposit by ACH and can request a refund. https://dvcnews.com/dvc-program-men...ing-a-dvc-deed-via-public-foreclosure-auction

 

[Girlstar30]

Is there a website to do this, im afraid to ask

This was a very thorough article on it. You pay deposit by ACH and can request a refund. https://dvcnews.com/dvc-program-men...ing-a-dvc-deed-via-public-foreclosure-auction

 

[VGCgroupie]

Is there a website to do this, im afraid to ask

hahaha yes. As of now I have opted to not jump into it. Further up the the thread is the site and the link I posted above shares a bunch of info too. This is also a good one https://dvcnews.com/disney-news/fea...ying-dvc-deeds-at-public-foreclosure-auctions

 

[Girlstar30]

T

hahaha yes. As of now I have opted to not jump into it. Further up the the thread is the site and the link I posted above shares a bunch of info too. This is also a good one https://dvcnews.com/disney-news/fea...ying-dvc-deeds-at-public-foreclosure-auctions

Thank you I will opt for the same

 

[VGCgroupie]

I guess the real question is “how frequently are the dues over $100/pt” in theory that would be at least 8 years of arrears, but don’t know about fines, interest, other penalties?

Okay was going through my notes and links. Some of them will list delinquent dues w/ interest.

The part I was so unsure of was of if what was listed was all fees owed or if there could be more or how to be sure there arent any other liens against that would also need to be paid.

 

[achinforsomebacon]

This was a very thorough article on it. You pay deposit by ACH and can request a refund. https://dvcnews.com/dvc-program-men...ing-a-dvc-deed-via-public-foreclosure-auction

That's interesting. I don't remember it only being a 5% deposit but verified that's still correct. Maybe I just got too scared to bid without knowing what all was due. This was a while ago.

What's interesting is there are a few LLCs that buy a lot from auctions. I think they're commercial renters or brokers who strip and flip or just flip the contracts.

Points status is another thing you have no clue about. Eventually the contract gets locked if you don't pay dues but points could have been banked or borrowed prior to that. Lots of unknowns!

 

[VGCgroupie]

That's interesting. I don't remember it only being a 5% deposit but verified that's still correct. Maybe I just got too scared to bid without knowing what all was due. This was a while ago.

What's interesting is there are a few LLCs that buy a lot from auctions. I think they're commercial renters or brokers who strip and flip or just flip the contracts.

Points status is another thing you have no clue about. Eventually the contract gets locked if you don't pay dues but points could have been banked or borrowed prior to that. Lots of unknowns!

In my searches I actually saw an llc buying them currently. So that was also off putting thinking I could be wasting my time.

Someone up thread said only points will be given for current UY no banked would be given. Not sure about if they were borrowed though? Maybe the foreclosure process takes so long that it wouldn’t have any effect.

 

[jolynne28]

I went down this rabbit hole last fall, and as someone who deal hunts like it's my full time job, I decided auctions weren't worth the risk. There are too many unknowns for people like us that are just looking to add on say one or two contracts at a time.

 

[Girlstar30]

Why would anyone do this, cant they potentially get a worse deal than on the resale market?

That's interesting. I don't remember it only being a 5% deposit but verified that's still correct. Maybe I just got too scared to bid without knowing what all was due. This was a while ago.

What's interesting is there are a few LLCs that buy a lot from auctions. I think they're commercial renters or brokers who strip and flip or just flip the contracts.

Points status is another thing you have no clue about. Eventually the contract gets locked if you don't pay dues but points could have been banked or borrowed prior to that. Lots of unknowns!

 

[Girlstar30]

In my searches I actually saw an llc buying them currently. So that was also off putting thinking I could be wasting my time.

Someone up thread said only points will be given for current UY no banked would be given. Not sure about if they were borrowed though? Maybe the foreclosure process takes so long that it wouldn’t have any effect.

Another reason I dont get why people would do this, pay so much and dont even know what they're paying for??