DVC Foreclosures

[lmkoons]

Has anyone purchased a resale DVC foreclosure? We've been looking for a good deal on AKL for a few months and were just offered a foreclosure listing by one of the websites I've seen recommended on these boards. The agent told us the only downside of purchasing a foreclosure is that it may take a little longer (~3 months until closing). Is that really the only difference vs purchasing a regular resale? They've told us there are no back dues that will need to be paid off. Is there anything else we should be aware of before we sign on this? I just want to make sure we don't run into any issues down the road.

 

[chalee94]

Has anyone purchased a resale DVC foreclosure? We've been looking for a good deal on AKL for a few months and were just offered a foreclosure listing by one of the websites I've seen recommended on these boards. The agent told us the only downside of purchasing a foreclosure is that it may take a little longer (~3 months until closing). Is that really the only difference vs purchasing a regular resale? They've told us there are no back dues that will need to be paid off. Is there anything else we should be aware of before we sign on this? I just want to make sure we don't run into any issues down the road.

I would read this to start:

http://www.pressreader.com/usa/sun-sentinel-broward-edition/20151228/282166470151166/TextView

but as long as there are no back dues, that would be a good start. (article also mentions title issues.)

 

[supersnoop]

Has anyone purchased a resale DVC foreclosure? We've been looking for a good deal on AKL for a few months and were just offered a foreclosure listing by one of the websites I've seen recommended on these boards. The agent told us the only downside of purchasing a foreclosure is that it may take a little longer (~3 months until closing). Is that really the only difference vs purchasing a regular resale? They've told us there are no back dues that will need to be paid off. Is there anything else we should be aware of before we sign on this? I just want to make sure we don't run into any issues down the road.

If you're working with a broker, I imagine it's not a foreclosure, but rather a contract included in bankruptcy. It will take longer because the sale will require court approval.

 

[disneynutz]

Or a broker who buys and sells contracts directly.

Bill

 

[pangyal]

If it is indeed a bankruptcy, I would suggest staying away. We had more than one purchase cancelled due to the sale involving a bankruptcy (we were not told by the brokers either, except for the first time!) where the court would not approve the sale. This was after at least three months of waiting.

 

[lmkoons]

If it is indeed a bankruptcy, I would suggest staying away. We had more than one purchase cancelled due to the sale involving a bankruptcy (we were not told by the brokers either, except for the first time!) where the court would not approve the sale. This was after at least three months of waiting.

Yes, sorry for the confusion. I re-read the emails from the website and it is indeed a bankruptcy, not a foreclosure. They did tell us the bank already approved them to sell it at the price they offered to us. So, hopefully that will won't be an issue for us. But I'm trying not to get my hopes up. It sounds like bankruptcy listings can be a bit of a gamble.

 

[pangyal]

If they already have the approval paperwork, it shouldn't be a guessing game, just a bit of a delay. The lower price is usually worth the wait in the long run .

 

[hayesdvc]

Using the web site for OCC, etc, there were some SSR's forecloses I wanted to bid (as the market is in the $80's per point, I was going to bid no more than $$50-$60?!?!?!). Those that are not familiar with the process, you have to determine the points by looking at the original deed and tie the numbers together with the foreclosure. Well ....................... after getting out bid and out bid on other lots, I got down tho the lot I really wanted. I bid and bid and the price kept going up with the proxy bid until I bid up to $10,000. The bid then moved to something like $10,098.12. I knew if I bid $10,100 the prize was mine. As I was waiting for the answer of ROFR on my resale contract (which Disney did buy), I decided to watch the clock of the auction run out without bidding again. I was sick until ......................... I re-looked at the deed associated with the foreclosure lot. I had transposed a contract number as it related to the foreclosure listing and instead of a SSR 200 point contract, it was SSR but ONLY 60 points. I almost became physically ill knowing what just about happened. If I had bid that extra $100, I would have paid over $168 per point for SSR, however, our friends at DVD "paid" that amount. With all these variables, I am out of the foreclosure business.

 

[DisneyFansInLINY]

I bought a bankruptcy resale. It took a month longer than regular resale so. But for $45 per point, it was worth it. Good luck!

 

[hayesdvc]

I bought a bankruptcy resale. It took a month longer than regular resale so. But for $45 per point, it was worth it. Good luck!

Where and what did you purchase ?

 

[DisneyFansInLINY]

Where and what did you purchase ?

Purchased 150 points at Saratoga Springs from Fidelity back in 2013. There were two bankruptcy contracts by the same owner. If I knew then what I know now, I would have bought both contracts.

 

[lmkoons]

Purchased 150 points at Saratoga Springs from Fidelity back in 2013. There were two bankruptcy contracts by the same owner. If I knew then what I know now, I would have bought both contracts.

That's who I'm working with. Wow, you got a great price! The bankruptcy contract we were offered is 160 pts at AKL for $80/pt.

 

[indyannamom]

How does one go about finding bankruptcy listings?

 

[disneynutz]

How does one go about finding bankruptcy listings?

DVD now uses their attorney to process foreclosures instead of the county so getting the information will be next to impossible.

Bill

 

[suebeelin]

FYI- article on what bill said
http://www.laughingplace.com/w/news/2016/01/18/disney-uses-new-process-dvc-foreclosures/

 

[wdrl]

How does one go about finding bankruptcy listings?

To my knowledge, there is no such thing as a "bankruptcy listing" of DVC deeds. I think what you are actually looking for is a list of the public foreclosure auctions that are conducted by Orange County Clerk of the Courts and by the Trustees for the lien holders.

Both types of public auctions require that notification be published before the public auction is held, so it is possible for a third party to find out about and participate in these auctions. This article explains the judicial foreclosure process and how to participate in the public auctions are held by the Clerk of the Courts. The article also explains how to find out about when the Clerk of the Courts will be conducting public auctions on specific deeds.

A few months ago, Disney started to use a nonjudicial process to foreclose on DVC deeds. This process, called a Trustee Foreclosure, bypasses the courts and is conducted by a Trustee for the lien holder. This article explains the Trustee Foreclosure process. Post #12 in the Forum Comments section explains how someone can view Notices of upcoming Trustee Public Auctions.

FYI: At least for right now, foreclosure activity on DVC deeds is almost at a standstill. No judicial foreclosure complaints have been initiated by Palm Financial (Disney's subsidiary) since November 10, 2015, and Michael Hutter, Disney's Trustee in these matters, has filed only two "Trustee's Notice of Sale" since December 2015.

 

[::danielle::]

To my knowledge, there is no such thing as a "bankruptcy listing" of DVC deeds. I think what you are actually looking for is a list of the public foreclosure auctions that are conducted by Orange County Clerk of the Courts and by the Trustees for the lien holders.

Both types of public auctions require that notification be published before the public auction is held, so it is possible for a third party to find out about and participate in these auctions. This article explains the judicial foreclosure process and how to participate in the public auctions are held by the Clerk of the Courts. The article also explains how to find out about when the Clerk of the Courts will be conducting public auctions on specific deeds.

A few months ago, Disney started to use a nonjudicial process to foreclose on DVC deeds. This process, called a Trustee Foreclosure, bypasses the courts and is conducted by a Trustee for the lien holder. This article explains the Trustee Foreclosure process. Post #12 in the Forum Comments section explains how someone can view Notices of upcoming Trustee Public Auctions.

FYI: At least for right now, foreclosure activity on DVC deeds is almost at a standstill. No judicial foreclosure complaints have been initiated by Palm Financial (Disney's subsidiary) since November 10, 2015, and Michael Hutter, Disney's Trustee in these matters, has filed only two "Trustee's Notice of Sale" since December 2015.

Yesterday the Orange County Clerk auctioned off several DVC contracts. I watched some amazing contracts go for pennies on the dollar (240 BLT points for $900) while others were a good, not great, deal (200 SS points for $13,800). After the auction, you can view who won. In all cases where the auction was a steal, it was Palm Financial who won. In the cases where the contracts were reasonable, it was a third party seller. It's a rigged system that benefits Palm Financial.

Keep in mind that these bid do not include any service fees or overdue maintenance fees. While $69/point may seem like a great deal for SS it can quickly reach or exceed the rates you would find on any of the resale sites.

 

[beer dave]

So doesn't DVD still have rofr on these? Why wouldn't they pick up the "free" ones?

 

[wdrl]

So doesn't DVD still have rofr on these? Why wouldn't they pick up the "free" ones?

No, DVD cannot exercise its Right of First Refusal on deeds that are part of a public auction conducted by the Courts or pursuant to Chapter 721, Sections 855 or 856. The Court issues a Certificate of Title and the Trustee issues a Trustee Deed to the winning bidders, thereby conveying the title to the new owner. Keep in mind that DVD has every opportunity to participate in these auctions, so if it wants the deed, it can bid on it.

 

[miTnosnhoJ]

So doesn't DVD still have rofr on these? Why wouldn't they pick up the "free" ones?

Disney owns Palm Financial. They are headquartered in Celebration FL.

(I see wdrl already mentioned this. My apologies. )