Foreclosure Auctions

[com_op_2000]

From the Orlando Sentinel.
Checkout this article:
http://www.orlandosentinel.com/busi...vacation-club-foreclosure-20151224-story.html
Quoted from the article:
Foreclosures are not uncommon in the time share world. The default rate for time-share loans last year was 6.3 percent, according to the American Resort Development Association, an industry trade group. Disney did not provide its default rate but says it is "significantly less," and that the number of annual auctions makes up only about half of 1 percent of its membership of more than 200,000.

 

[LoveBWVVBR]

My friend buys foreclosed houses in our area (coastal FL) and sees Vero come up for foreclosure sometimes. He asked me about it, but I told him I really wasn't sure since Disney has rights of first refusal on all contracts right? Even if you "won" it for cheap at a foreclosure auction, couldn't Disney buy it out from under you anyways? Maybe I'm wrong.

 

[wdrl]

My friend buys foreclosed houses in our area (coastal FL) and sees Vero come up for foreclosure sometimes. He asked me about it, but I told him I really wasn't sure since Disney has rights of first refusal on all contracts right? Even if you "won" it for cheap at a foreclosure auction, couldn't Disney buy it out from under you anyways? Maybe I'm wrong.

Court ordered foreclosures are not subject to ROFR. The Court issues a Certificate of Title to the winning bidder, meaning the bidder owns the property. DVD can't step in and try to take over the deed because the title has already transferred to the new owner.

 

[hayesdvc]

Quick story. 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.

 

[LoveBWVVBR]

Court ordered foreclosures are not subject to ROFR. The Court issues a Certificate of Title to the winning bidder, meaning the bidder owns the property. DVD can't step in and try to take over the deed because the title has already transferred to the new owner.

Interesting...why aren't more people going this route to buy a DVC resale then? It sounds like it could potentially be a good deal.

 

[supersnoop]

Interesting...why aren't more people going this route to buy a DVC resale then? It sounds like it could potentially be a good deal.

Because DVC tends to outbid you. There is no reason for DVC to allow the bidding to end at less than the amount owed.

 

[LoveBWVVBR]

Because DVC tends to outbid you. There is no reason for DVC to allow the bidding to end at less than the amount owed.

Ah, that makes sense. Don't know why I thought they couldn't bid lol.

 

[wdrl]

Interesting...why aren't more people going this route to buy a DVC resale then? It sounds like it could potentially be a good deal.

There are uncertainties in the public foreclosure auction process. The Orange County Clerk of the Courts, which administers the public auctions, forewarns bidders that neither it nor the Courts guarantee clear title on the deeds won at auction. The public foreclosure auction will resolve all debts against the deed that are identified in the Court's final judgment, but it doesn't necessarily foreclose on other liens and debts not identified by the Court.

Besides possible title issues, bidders have to be aware of additional expenses associated with a deed for which the winner bidder will be liable. The most notable will be maintenance fees that accrued since the final judgment amounts were calculated. These additional expenses could add several hundreds of dollars, if not more, to the final acquisition price.

If someone really understands how DVC works in terms of maintenance fees and points, and can follow the paper trail on the Clerk of the Courts website, then he or she can make educated guesses as to what the final acquisition price will be for a specific deed. But given the amount of uncertainity involved with public foreclosure auctions, are the risks worth the amount of potential savings?

 

[summabreeze85]

I looked at all the dvc auctions scheduled this last week of December and all owed more than what they were worth. Definitely not a good deal to bid, especially if maintenance fees are owed. I wonder how many years the maintenance dues can be tacked on?