DVC Foreclosure?

[jschrots]

How does Disney handle things if you cannot pay due to economic times? Does Disney buy back the contract? So if people cannot pay their financing to DVC, will Disney just take it away from them or foreclose? What else will happen? Collections agency? Bad Credit score?
What do you think?

 

[chalee94]

i'm pretty sure disney will just take back the asset.

you may be better off selling for some value, rather than just giving it back for nothing...

 

[LisaS]

Based on the documents I've seen on the Orange County website the first step they take is to get a lien against the contract. If the owner doesn't pay what they owe within the specified period of time, the next step is foreclosure and then an auction of the contract.

 

[jschrots]

Based on the documents I've seen on the Orange County website the first step they take is to get a lien against the contract. If the owner doesn't pay what they owe within the specified period of time, the next step is foreclosure and then an auction of the contract.

Hi Lisa,
But will this effect credit scores if going into foreclosure since DVC does not even run the credit to give the loan?
I am only asking because we are thinking of joining DVC. We can afford the payments, but am afraid with this economy the "what if's"? What if we lose our jobs, etc.???

 

[december14disney]

From what I have heard if you finance you credit IS pulled. Are you speaking of not making payments on the loan of the initial contract or not making your annual dues? These are probably two different things. I am sure it will go against you in a negative way either way. I guess unfortunatly now-a-days even in the most "stable" jobs you have a "what if" question to ask. I dont think any jobs are stable anymore.

 

[5forDiz]

Hi Lisa,
But will this effect credit scores if going into foreclosure since DVC does not even run the credit to give the loan?
I am only asking because we are thinking of joining DVC. We can afford the payments, but am afraid with this economy the "what if's"? What if we lose our jobs, etc.???

I could be mistaken, but my brother financed his DVC purchase through Disney and I am certain he told me they ran credit check, etc. just as lender typically does. Unless I completely misunderstood my bro, this was how Disney determined down payment they had to give & the interest rate.

I think they don't run your credit if you want financing from them for a future add-on contract.

Your questions re foreclosure, etc. a extremely important & need definite answers. Just MHO but I would guess a DVC foreclosure could impact credit scores because it is defaulting on a loan.

 

[drusba]

Failure to pay first results in suspension of your ability to reserve rooms and then a lien and ultimately a foreclosure. The lien and foreclosures will be a matter of public record in the files that contain your applicable mortgage/deed documents and as a result will definitely show up in any credit check that is done on you and lower your credit rating.

 

[Tozzie]

I think there is some confusion a credit check is run by disney if you finance to determine the rate, it has been stated by several people that a DVC finance will not show up on your credit report (don't know if that is true or not) A foreclosure would more than likely show up on your credit report.


I will say if you don' t own at the present time and are thinking in terms of not being able to pay for the loan why are you considering even purchasing DVC is a luxury in the scheme of things and if I was unsure about my job 6 months or a year from now I wouldn't be buying DVC.

 

[dbertola]

When we were there in August the sales rep told us that it would not show up or affect our credit because Disney does there own financing and they are not a bank. I don't know if that is true, but that's what he told us.

 

[kjd469]

I have to agree with previous posters and say that if there is even a hint in your mind that you may not be able to meet the payments - perhaps you should not be considering buying at this time. Why put yourself through that stress?

 

[drusba]

When we were there in August the sales rep told us that it would not show up or affect our credit because Disney does there own financing and they are not a bank. I don't know if that is true, but that's what he told us.

Not sure what the rep was talking about. Disney does its own financing but the loan document is filed in the local recorder's office as is the deed and your name will be on those. Moreover, you will be paying for any loan out of your bank account. When someone runs a credit check it includes a check of public records. It also includes a check of your bank accounts and any regular payments you are making will show up. Essentially everything that appears in a public record filing, your bank and credit card accounts, and anything you are paying to a lending institution and whether there has been a late payment, regardless of whether it is a bank, is going to show up in any credit report done on you. Your financial life, except for things for which you pay cash, is all recorded in computer databases somewhere and a credit agency doing a credit check will find those.

 

[Desnik]

DVC does a credit check when you want to finance through them. That determines your interest rate and down payment. If your credit isn't good they will charge you a higher interest rate and/or ask for a bigger down payment. The loan does NOT show on your credit report. I have checked my credit report numerous times and DVC never shows up on any of the reports from all the agencies. If you do an add on and want to finance and already have financed through them(and are in good standing with them) they will NOT check your credit again. I make my DVC payments through the DVC website using my debit card and it does show DVC payments on my checking account statements. With that said I have never had any financial institution I was trying to get a loan from check my checking account statements to see who I am making payments to.

 

[np4gp]

Although I know that Disney does run a credit report, I do not understand how or why it would not show up on a credit report. I received mail from DVC today for myself and my husband that was disclosure of the credit scores they used as a basis for our financing.

The only other debt I have not had show up on my credit report was a business credit card I had when I was working from home. I won't complain about it not showing on my credit report, but I would have to guess that if the DVC does go into foreclosure or there is any lien placed against you that it WILL show up on the public records section of the credit report - and those can negatively impact your credit score.

 

[scout68]

This is just a guess. I believe the main advantage with financing through Dis. is it dosn't count against your earnigs to debt ratio.

 

[crisi]

This is just a guess. I believe the main advantage with financing through Dis. is it dosn't count against your earnigs to debt ratio.

That's an advantage???!!!!

 

[Terry S]

I also checked my credit reports many times when I had a loan through Disney. The check of your credit does show up as an inquiry, BUT the actual loan does not show up on your credit report. Now.... if you default on the loan, I assume they would report that.

 

[disneynutz]

How does Disney handle things if you cannot pay due to economic times? Does Disney buy back the contract? So if people cannot pay their financing to DVC, will Disney just take it away from them or foreclose? What else will happen? Collections agency? Bad Credit score?
What do you think?

I think it was back in May... DVD filed liens on several hundred contracts due to dues not being paid.

 

[scout68]

It certainly is for the self employed.

 

[np4gp]

It certainly is for the self employed.

LOL- true! Really, it not counting against your DTI is a benefit if you are looking for a home loan. You can get at a lower rate with a chance of qualifying for a bigger loan. BUT - You have to be honest with yourself in that situation. Just because a lender may say you can afford a certain amount, you still have to be comfortable with the payment and not forget about that DVC payment...lol.

 

[Brian Noble]

No kidding. For our first house, we sat down and figured out what we thought we could afford in monthly payments. My lender wanted to qualify me for almost twice that much---and this was well before the subprime boom.

I'm glad I didn't listen---those first few years were lean as it was.