DVC auction

[tinagirl]

Just to let you know I have heard tall tales of DVC's coming up for bid in seizure auctions (Bankruptcy, Government stuff {I've always said I hate drug dealers, but they have good taste}) The truth is that there are no "Government auctions" that I know of anymore, as the government asks private auctioneers to sell on their behalf. If you are in the Florida area, you may want to pull out your telephone book. Look under the Auctioneer/auction house heading and call all the numbers. When they pick up, just ask to be put on the mailing list for that auction house. That way when they have auctions coming up they'll send you little flyers with listings of what will be sold. That way you may be able to pick up a DVC "resale" at a very cheap price. As well, as cars, houses or whatever.

I heard this from a friend who does some real estate there, and so it is worth a try. I know I'm doing it, and even if it only works for one person, at least it's something.

I hope this helps, and I wish you the best
~Tina

 

[zurgswife]

What about Disney's buy back price????Does this not apply?

 

[DebbieB]

Disney would still have their first right of refusal, probably preventing a really good deal from going through.

 

[tinagirl]

True,
Hopefully you could get caught up in their "backlog" though. hehe. I'm going to check into it in the coming weeks, as I'm already on a few auction houses mailing lists, I'll update you if anything amazing comes through. I figure might as well give it a try. (I'm not in Florida, I'm in California, but if something is great in a flyer, I will give my proxy bid, so the auctioneer can purchase on my behalf...we'll see what happens).

All my best
~Tina

 

[CaptainMidnight]

It seems like the best deal you could hope for is at Disney's current buy back rate. Given that we can find out that rate, perhaps another strategy is just to offer that rate to all currently available resales and see if anyone would take you up on it. I'd be surprised if it worked for DVC, but you might find lots of other neat stuff. That's also probably where you'd have to make your auction offer. We're in the market for a boat (small jetboat, be fun on the Vero waterway) your approach might be a great way to find one of those.

Let us know, I could certainly be wrong.

 

[drusba]

The three avenues that a DVC property could possibly end up in an auction like the ones you mention is bankruptcy of the owner, foreclosure for failure to pay dues, and foreclosure due to failure to pay on the loan (a forth is seizure due to criminal activity but that would be very rare). However, don't expect to get DVC cheaply through them. If it is a bankruptcy, the bankruptcy trustee is going to use an auction only if he believes he can get a higher price than placing the property with a broker. In fact a trustee is most likely going to first try reselling to Disney or selling through a broker (like one of the ones mentioned on these boards), and then to auction only as a last resort. If there is a foreclosure for failure to pay dues or failure to pay on the loan, Disney's right of first refusal does not apply (these are forced sales covered by statutory provisions and contractual rights of first refusal generally do not apply to such statutory sales). However, a Disney entity is the one that is likely going to bring about that foreclosure and is likely to be the main bidder if an auction actually occurs (the only exception is when the lender on a loan foreclosure is not a Disney entity). In other words, your main adversary at such an auction is likely to be Disney itself. You might be able to bid an amount to prevent Disney from bidding higher, and the price you bid may actually be lower than market, but then you face redemption rights which delay your actually being the real owner for a while; i.e., the right of the original owner to redeem the property for a certain period of time by paying the buyer at auction the amount paid by the buyer. These auctions are full of "professionals"--lender and real estate company agents and others who actually specialize in buying at auctions. I guess what I am saying is (a) don't get your hopes up to be able to get DVC cheaply through these, and (b) you better learn what the rules are first and how it actually works before you embark on being a buyer at auctions for foreclosure sales.