Defaulting on your loan

[candielips]

I first want to start off by saying that in no way are we about to default on our DVC loan. If we couldnt afford it, we never would have bought it.
But what happens if someone defaults? I know for us, we live in Canada, so our cc is charged every month the loan payment, which should be paid off within the year!
What if I cancelled my CC and just didnt make anymore payments? I'm sure its had to have happened before.
Just curious.

 

[rlovew]

Your account would be frozen and you would have all current reservations cancelled and then you could not make any additional ones until you were caught up. If you did this long enough they would foreclose on the account and you would lose it.

 

[disneynutz]

What happens if you don't make your house payment? Same thing.

Bill

 

[candielips]

I know you would lose it, I just didnt know if it would affect people's credit the way it would if I foreclosed on my house or car.
I imagine there must be people who have had this happen to them.

 

[disneynutz]

I know you would lose it, I just didnt know if it would affect people's credit the way it would if I foreclosed on my house or car.
I imagine there must be people who have had this happen to them.

It happens more than you would think. Disney gets back thousands of points every year through defaulted loans and non-payment of dues. I haven't heard of Disney putting a black mark on peoples credit reports but that doesn't mean that they don't.

At one time they didn't even run a credit check on buyers, now they use a credit check to determine your interest rate.

Bill

 

[LisaS]

I know you would lose it, I just didnt know if it would affect people's credit the way it would if I foreclosed on my house or car.
I imagine there must be people who have had this happen to them.

I don't know if they report it to the credit bureaus but for the WDW resorts it does show up on the Orange County comptroller's website initially as a lien and then as a foreclosure if the owner doesn't pay up in time.

 

[zeferjen]

It happens more than you would think. Disney gets back thousands of points every year through defaulted loans and non-payment of dues.

Interesting. I wonder if this is one of the reasons they aren't executing ROFR more often? They don't need to because they are replenishing their inventory with all of the loan defaults.

 

[sweetdana]

Interesting. I wonder if this is one of the reasons they aren't executing ROFR more often? They don't need to because they are replenishing their inventory with all of the loan defaults.

I am certain that mixed with the contracts yrs are getting shorter, is a big diff. IE you couldn't charge the same amount for say a BWV with 30 yrs as a BLT with 48 yrs on it. .. Well you could try, but it just wouldn't make mathmatical sense to the buyers. Eventually the diff will be even more so.

 

[SuperRob]

That's why we paid cash. Sure, we only got 60 points, but no debt and our dues are ridiculously cheap. We never would have done it if we had to take on debt.

Being debt-free (except for my student loans) is a WONDERFUL thing.

 

[DenLo]

Interesting. I wonder if this is one of the reasons they aren't executing ROFR more often? They don't need to because they are replenishing their inventory with all of the loan defaults.

I think that could be a factor. I know that my DH, wdrl has written some articles about contracts required by the DVC. Here's some links:


AKV Points Taken back by Disney

http://dvcnews.com/forum/showthread.php?9110-AKV-Points-Taken-Back-by-Disney

BLT points taken back by Disney

http://dvcnews.com/forum/showthread.php?8326-BLT-points-taken-back-by-Disney

 

[candielips]

Being debt-free (except for my student loans) is a WONDERFUL thing.

I only dream of the day when my house is finally paid off!

 

[ckpoodge]

I'm sure it would show up on your credit report, because it is a loan. If you default on a car loan/home loan/store cc/etc it shows up. This should be the same thing.

I'd be surprised if it isn't.