DVC Foreclosure?

[scout68]

I' am in complete agreement, caution is an understatement. although the self-employed enjoy many many perks they usually don't have the benefit of a steady pay stream. I can say without question I wouldn't trade the luxury of packing up the fam and heading to hang with the mouse when ever we get the urge for a mind numbing 9 to 5.

 

[meriface11]

as it's been stated before, disney does run a credit check to determine which tier of interest to offer. because disney owns the property, and dvc is a real estate interest--not an outright ownership, they do not report the "loan" to credit agencies because they still own the property--think of the "loan" as more of a high interest lay-a-way. however, if you default on the agreement that you have, it will get reported negatively on your credit. there is a benefit to to finance through disney since they don't report--when you are applying for another loan, you have more income to credit on your ratio.

 

[swilshire]

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

Are these auctioned at the "courthouse steps" like I've seen for other resorts?

Does DVC buy them all back? How high do they go?

Thanks,

Sheila

 

[JimMIA]

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

Yeah...it is if you really want to load up with debt you can't repay!!!

*****
I think the OP's original questions were:

Would Disney foreclose if you don't pay your dues/loan?

The answer is yes.

Would that trash your credit?

The answer is yes.

 

[stopher1]

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.

Lenders check your bank balances and peruse your checking or savings account when you are applying for a regular home mortgage and YOU have to turn over 3 or more months of bank statements to support your application. This doesn't happen for your average run of the mill credit checks for things like getting cable tv, a department store cc, gas card, major cc like VISA or Discover, a car, a DVC purchase... DVC will do an inquiry on your report, but it does NOT show up on your report after that like your home mortgage, car, or any cc's you might have do.

 

[disneynutz]

Lenders check your bank balances and peruse your checking or savings account when you are applying for a regular home mortgage and YOU have to turn over 3 or more months of bank statements to support your application. This doesn't happen for your average run of the mill credit checks for things like getting cable tv, a department store cc, gas card, major cc like VISA or Discover, a car, a DVC purchase... DVC will do an inquiry on your report, but it does NOT show up on your report after that like your home mortgage, car, or any cc's you might have do.

Remember that the only items that show up on your credit report are items that have been reported. Not all companies and banks share information with the credit reporting agencies. DVD does not report your loan and in our case there was no record of their inquiry.

 

[lockedoutlogic]

Credit Reports are more important right now than they ever have been.....

I strongly suggest that anyone who is thinking about doing something that could potentially lower their credit score should STOP what they are doing and step away from the Visa.....

you will pay.....bigtime....once all this market crash hub-ub is figured out.

unless something changes is the national election in a hurry.....the pre-deregulated lending laws are going to be hammered through early next year.....and the end of by now.....pay later....if you can......is close on the horizon

 

[lockedoutlogic]

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.

I respect you for being one of the few american's left with a brain and that isn't controlled by his Greedney (my theory is that the Spleen is actually a greed generating organ....and should therefore be renamed appropriately as the "Greedney")

 

[deedeetoo]

Disney does foreclose on contracts that are behind in payments. We bought a resale from the Timeshare Store, After it closed we had some difficulty showing up in the MS system and found out that it was because the contract we purchased had been in the middle of the foreclosure process. They had to undo some things before they could post the points to our account.

 

[troynkasey]

Working at a financial institution, I can give you the correct info. If you finance your loan, then it could show up on your credit report. Your credit score will be effected because when someone checks your credit, that effects your credit score. Usually not by much unless you've tried to extend credit recently.

With that being said, it is up to the financial institution to report your credit info to the credit agencies. Most banks report monthly, some report bi-monthly for certain lines of credit and some even less than that. So yes, it could show up on your credit report, but it's up to Disney to report your credit to the credit agencies for it to show up.

So...if there is a doubt in your mind that you can't afford it or you're worried about it effecting your credit score, then it's not something you probably want to invest in...