Does DVC foreclose on non-payers, if so how?

[Mississippian]

I'm sure Disney has lots of people who don't make their payments on their DVC points.

Since this is a deeded interest, I would assume the property has to be auctioned off on the courthouse steps. And since Disney is bringing the action, I would assume there is no ROFR.

Anyone know the details? I buy a lot of foreclosures -- it's essentially my day job -- and figure I might be able to pick up a deal.

Thanks!

 

[bongo59]

disney buys them all back due to the ROFR.............it has never lost a foreclosed property to anyone according to my source. Theoretically you could buy it if you beat there ROFR on it...........but as you know buying distressed properties carries risk but there is usually a big reward at times too.............the ROFR removes that upside in this case...........

 

[pkgman]

Does Florida use a sealed bid or an open auction for foreclosures. They could seal bid it close to their ROFR price point. If it was an open auction, they could just keep bidding until ROFR reached. Either way you would not get a great price. They are just looking to prop up prices and plan on resaling the points.

 

[Mississippian]

>>but as you know buying distressed properties carries risk but there is usually a big reward at times too<<

Bongo,

I've found the risk is generally fairly low, although it does exist. But in the case of a Disney foreclosure, there would seem to be little risk at all.

It amazes me that Disney is able to get 10 and 11% interest. I'm in the credit-sales business, and I charge 11.9%, but I'm a little guy without Disney access to cheap credit.

I'm not adverse to paying a top price at a foreclosure sale. I would guess that Disney's ROFR has to be exercised right there on the courthouse steps, since they are bringing the action.

Anyway, you seem to know a little bit about this. Where can I get more information? Where are the legal notices run? Again, thanks for your help!

 

[Mississippian]

>>If it was an open auction, they could just keep bidding until ROFR reached. Either way you would not get a great price. They are just looking to prop up prices and plan on resaling the points.<<

Pkgman,
The difference between a foreclosure sale and a private sale is that you would KNOW at a foreclosure sale what the ROFR is. The ROFR is whatever Disney bids, and you always get a second chance to outbid it.


As I understand the rules, if you lose your contract to ROFR, that's it. At a foreclosure sale, it would seem to me that you would be getting the points at the absolute minimum cost. But then, I don't know, which is why I'm asking.

 

[bongo59]

disney calls the auction and sets the price ............youre right there is little risk to your or them..........because they have a built in poison pill with the ROFR.........the legal notices are all posted in the orlando papers on friday and sat...........

 

[PamOKW]

Related to the problem of being defaulting on payments...the member site lists an increase in penalties for late payment of dues.

 

[Dean]

I know I bought a contract that DVC had a lien on. I bought it $4 pp below the ROFR price at that time. I'm told by someone in the know, that sells DVC and is banned from this board, that this prevented DVC from buying it back. She was really concerned about why DVC let it go through when they were buying others back at much higher prices. Since she and I have had our run ins on a couple of issues, I didn't see any reason to doubt what she said in the situation. I've also seen it for auction for drug and other criminal related situations and have been told it had to clear prior to transfer. It sounded more complicated that I wanted to fool with.

 

[bongo59]

it is..........but generally dvc buys all distressed contracts via the rofr pervision.............