DVC purchase with a Bankruptcy

[yitbos96bb]

My sister and her husband are looking to buy a DVC resort. Before they were married, her husband had to declare bankruptcy. That was about 2 to 3 years ago. They are both doing fine financially and do not currently have a lot of debt (car, house, etc. No CC).

My question: I can't remember from when we bought... was there anything on the financing application asking if you filed Bankruptcy? Do they do a credit check (again don't remember them doing one and I don't see OURS on a credit report at all)? Anyone have any experience with this?

They haven't talked with a sales person yet as they want to get all info before talking to the sales person.

Any help would be appreciated.

 

[luvindisneyworld]

They do a credit check.
I think that they would approve them but in order for that to happen they would just require a bigger down payment is all.I dont know how much they would require though maybe 20-25%.

 

[AKV707]

The DVC financing does not appear on credit reports, so you wouldn't see it there. I agree that they would likely be approved, but might have a larger payment or a slightly higher rate.

 

[tjkraz]

DVC currently has two prevailing finance rates: 10.75% and 14.25%. You can pretty much bet they'll have to pay the higher rate. (Ouch)

Standard downpayment is 10% and, as others have said, DVC occasionally asks those with risky credit history to make a larger downpayment.

 

[yitbos96bb]

Thanks for the reply! We may just sell them ours and buy elsewhere... not sure. Thanks for the info everyone.

 

[dvcmember]

I had the same issue. My husband had filed prior to our marriage. I bought in my name-using my credit no problem. Barb

 

[Mtnman44]

All I can say is that I hope he was able to first pay back all the people he had borrowed money from before he starts making luxury purchases like this.

My sister and her husband are looking to buy a DVC resort. Before they were married, her husband had to declare bankruptcy. That was about 2 to 3 years ago. They are both doing fine financially and do not currently have a lot of debt (car, house, etc. No CC).

My question: I can't remember from when we bought... was there anything on the financing application asking if you filed Bankruptcy? Do they do a credit check (again don't remember them doing one and I don't see OURS on a credit report at all)? Anyone have any experience with this?

They haven't talked with a sales person yet as they want to get all info before talking to the sales person.

Any help would be appreciated.

 

[epicureangirl]

Bankruptcy and then wanting to finance? I don't get it. Isn't bankruptcy a wake-up call that you shouldn't burden yourself with credit obligations? Hopefully your sister is running the finances. If they're doing financially well, wait and pay cash I say! Don't people save anymore?

 

[dianeschlicht]

I do have to agree on this one. If his bankrupcy was only 2-3 years ago, why finance a luxury item? That is especially true in slowing economy. I woujld reccomend they save up and pay for it in full without financing. Things you MUST have like a place to live, transportation, etc are okay , but luxury items like vacations, boats, etc, should be paid without financing in this case.

 

[Kathi OD]

All I can say is that I hope he was able to first pay back all the people he had borrowed money from before he starts making luxury purchases like this.

Bankruptcy and then wanting to finance? I don't get it. Isn't bankruptcy a wake-up call that you shouldn't burden yourself with credit obligations? Hopefully your sister is running the finances. If they're doing financially well, wait and pay cash I say! Don't people save anymore?

I do have to agree on this one. If his bankrupcy was only 2-3 years ago, why finance a luxury item? That is especially true in slowing economy. I woujld reccomend they save up and pay for it in full without financing. Things you MUST have like a place to live, transportation, etc are okay , but luxury items like vacations, boats, etc, should be paid without financing in this case.

Honestly, sometimes I wonder!

It's no one's business if they decide to finance this purchase or not. All OP wanted to know was if it was possible to finance with the bankruptcy on BIL's credit history, not if anyone thought they should.

 

[DisneyFreaks]

Our neighbors had a run of bad luck and had to file bankruptcy. They tried to finance through disney and were told since the BK was only three years old they would have to put 40% down. (ouch!) They decided to wait til they could pay cash. They just bought in with the current incentives and are eagerly planning their first trip.

 

[yitbos96bb]

All I can say is that I hope he was able to first pay back all the people he had borrowed money from before he starts making luxury purchases like this.

Bankruptcy and then wanting to finance? I don't get it. Isn't bankruptcy a wake-up call that you shouldn't burden yourself with credit obligations? Hopefully your sister is running the finances. If they're doing financially well, wait and pay cash I say! Don't people save anymore?

I do have to agree on this one. If his bankrupcy was only 2-3 years ago, why finance a luxury item? That is especially true in slowing economy. I woujld reccomend they save up and pay for it in full without financing. Things you MUST have like a place to live, transportation, etc are okay , but luxury items like vacations, boats, etc, should be paid without financing in this case.

These comments are OT to this thread and really not requested, needed, wanted or appreciated. What others do with their finances is of NO concern to any of you. I know that the three of you are absolutely perfect and have never made a mistake in this world. How you handle your money and purchases is your OWN business and how they handle THEIRS is their own. They can buy or do WHATEVER THE HECK THEY WANT. This thread was not discussing whether they should, it was simply gathering information. Do NOT post into a topic the kind of classless garbage you just did UNLESS THAT IS THE POINT OF THE THREAD! AND IN CASE YOU DIDN'T FIGURE IT OUT... IT WASN'T

However, for the record, his bankruptcy was due to medical bills with his mother, who passed away with no insurance and left him having to deal with it. It really was a sad thing and beyond his control. He had just finished school at the time and had to take a very low paying flexible hours job to take care of his mom. The bills mounted, it was just the two of them and she passed away. He filed BK, got the CLEAN START he wanted too, married my sister, got a great job and is very successful in it.

For the record, all three of your posts will be reported as abuse. I hope the moderator takes action against you as your posts both angered and offended me.

 

[yitbos96bb]

Our neighbors had a run of bad luck and had to file bankruptcy. They tried to finance through disney and were told since the BK was only three years old they would have to put 40% down. (ouch!) They decided to wait til they could pay cash. They just bought in with the current incentives and are eagerly planning their first trip.

Thanks! And for those above who decided that it was the forum to post MORAL JUDGEMENTS... THIS IS HOW YOU DO A POST ON THIS... Disneyfreaks post is neutral, not judgemental and appreciated.

 

[yitbos96bb]

Honestly, sometimes I wonder!

It's no one's business if they decide to finance this purchase or not. All OP wanted to know was if it was possible to finance with the bankruptcy on BIL's credit history, not if anyone thought they should.

Thanks... I appreciate that!

 

[Y-ASK]

How's your sister's credit and job? Maybe they could put it all in her name alone. Also I may get flamed but what about a loan from a 401K plan if they have any retirement funds built up. If they are comfortable that they won't lose their job in the next five years they could take out a loan and then pay themselves back the interest as well.

Y-ASK

 

[JimMIA]

These comments are OT to this thread and really not requested, needed, wanted or appreciated. What others do with their finances is of NO concern to any of you.

Well, I hope you don't take offense at this comment, but you are the one who put their finances out there for people to comment on.

Whenever you start a thread - on any topic - you need to be prepared for some points of view that differ from your own. That upsets some people, especially if the subject matter is sensitive to begin with...but that's the nature of a discussion board.

The comments you objected to were really not off topic -- they were discussing purchasing DVC with a bankruptcy in your past. They may not have been addressing the .0001% of the topic you wanted an answer on, but it's not like they were talking about lead in toys from China.

If you don't want to open things up for general discussion, it might be a better idea to just call DVC directly and ask them.

 

[jcf]

Looking at 14.25 but good news is after that automatically at 10% for any add-ons.

 

[Chuck S]

This thread seems to have run its course, and the OPs questions were answered, so I'm closing this thread.