Financing

[Brian Noble]

Florida has an option for a non-judicial foreclosure; it's quite a bit simpler, and therefore less expensive.

I think California does too, but am not sure.

 

[CarolynFH]

Wouldn't it cost money for them to drag people to court and do all of that?

Nope, as Brian says above it’s pretty easy in Florida if someone defaults on a timeshare loan or dues. As long as the owner in default doesn’t object, the timeshare company or mortgage holder files some papers and poof! gets the timeshare.

 

[Brian Noble]

...and the owner has an incentive not to object, because if they do not, they are protected by "anti-dificiency". This means that the developer cannot come after the owner for the unpaid balance of the loan or back MFs; they can only obtain title to the property. But, if the owner objects, there is no anti-deficiency protection.

 

[Girlstar30]

Nope, as Brian says above it’s pretty easy in Florida if someone defaults on a timeshare loan or dues. As long as the owner in default doesn’t object, the timeshare company or mortgage holder files some papers and proof! gets the timeshare.

Makes total sense now, i was thinking it was a whole process like evicting someone

 

[Girlstar30]

Nope, as Brian says above it’s pretty easy in Florida if someone defaults on a timeshare loan or dues. As long as the owner in default doesn’t object, the timeshare company or mortgage holder files some papers and poof! gets the timeshare.

Why do you think Disney would be more strict than resale?

 

[CarolynFH]

Why do you think Disney would be more strict than resale?

What do you mean? The foreclosure process on a timeshare default (mortgage or dues) is the same for Disney as for a resale mortgage company. Or for any timeshare located in Florida, for that matter. Wyndham, Marriott, Westgate, ... they all get to take back the timeshare with no court involvement, as long as the owner doesn't object.

 

[Girlstar30]

What do you mean? The foreclosure process on a timeshare default (mortgage or dues) is the same for Disney as for a resale mortgage company. Or for any timeshare located in Florida, for that matter. Wyndham, Marriott, Westgate, ... they all get to take back the timeshare with no court involvement, as long as the owner doesn't object.

Disney is more strict in their lending requirements than Monera is what i meant and I thought that was interesting, I would think it would be the opposite

 

[CarolynFH]

Disney is more strict in their lending requirements than Monera is what i meant and I thought that was interesting, I would think it would be the opposite

LOL, maybe Disney doesn't like flipping contracts as much as Monera's owners do!

 

[juliebee]

Monera is owned by the same organization that owns https://www.dvcresalemarket.com/ On older episodes of the DVC Fan Podcast (which is sponsored by DVC Resale Market, Monera, etc) there was this one guy who will not be named that use to call Monera "the crack dealer of DVC" supposedly meaning it was so easy to get financing. It was super cringy to hear that statement, but the point was probably accurate.

 

[Girlstar30]

Monera is owned by the same organization that owns https://www.dvcresalemarket.com/ On older episodes of the DVC Fan Podcast (which is sponsored by DVC Resale Market, Monera, etc) there was this one guy who will not be named that use to call Monera "the crack dealer of DVC" supposedly meaning it was so easy to get financing. It was super cringy to hear that statement, but the point was probably accurate.

Super cringe indeed!

 

[kmcco]

Out of pure curiosity (and maybe being irresponsible) has anyone actually financed a direct contract and paid the monthly payments and nothing extra?

 

[Girlstar30]

I have not, but this would be the damage if we did that with Riviera (give or take closing costs and deposit)

 

[kmcco]

that is absolutely insane !

 

[Girlstar30]

that is absolutely insane !

It is shocking that the interest ends up being more than the cost! I wonder how many people do the math before taking the plunge, I would guarantee most don't!

 

[atthebeachclub]

It is shocking that the interest ends up being more than the cost! I wonder how many people do the math before taking the plunge, I would guarantee most don't!

I guarantee you most people don’t look at the math, just the payment. Especially when buying while feeling the Disney happiness. I noticed my Guide never tried to make a financial sale; it’s all about getting people to be excited about future vacations and the wonderful places you’ll stay. Unfortunately for them, this isn’t too effective (for me at least) as a sales technique after discovering a much less expensive resale market. And FOMO isn’t in my vocabulary.

I have taken finance calculators with me to car dealers to kill bad deals for exes (neither the ex nor the dealer appreciated this I suspect. Ha.). There might be a happy medium somewhere here. LOL.

That said, if you ever want to know more about how or why we buy what we buy and how salespeople can manipulate us into needing things (DVC included) I can’t recommend Influence by Cialdini enough. It’s older now but it was very interesting when I first read it; I learned a lot from it.

 

[Cfabar1]

Out of pure curiosity (and maybe being irresponsible) has anyone actually financed a direct contract and paid the monthly payments and nothing extra?

I would imagine that the majority of those who finance do so....

We know some owners who would do so until the contract was paid off, then take the payment and keep making that amount of payment to acquire more points through Disney... I doubt that is that unusual....

 

[Tatebeck]

A loan over 17%???? Absolutely not, saving up and buying smaller contracts once you have the cash has to be better than that, even if it takes a bit longer to get started with DVC.

 

[Tatebeck]

And I think that total was just for 150 points direct?? That final cost of over 66K is almost 20k MORE than we paid for ALL 300 of our RIV direct points last year. Absolutely nuts

 

[Girlstar30]

And I think that total was just for 150 points direct?? That final cost of over 66K is almost 20k MORE than we paid for ALL 300 of our RIV direct points last year. Absolutely nuts

Yes this is based on a 150 point contract 17.5% is what they wanted to run our credit for to see if we qualified when we were interested so that's when I punched it in and laughed

 

[Cfabar1]

Yes this is based on a 150 point contract 17.5% is what they wanted to run our credit for to see if we qualified when we were interested so that's when I punched it in and laughed

They'll remind you there's no prepayment penalty....

Personally I think between balance transfers and Disney Visa promotional financing that's probably the better way to go, or going direct with Disney for financing which you can then make payments on with the Disney Visa - though I don't know if those payments qualify for 6 months no interest...