Foreclosure Question

[PVA]

We referred a family a few years ago who ended up buying into DVC. Now they are in the process of a divorce and the contract is going into foreclosure. I'd like to help them out and buy out the contract and put it into my family's name. Anyone have any idea what the first steps would be? who would we contact? Is it even possible? Any info is greatly appreciated.

 

[Sandisw]

I would suggest you have them contact DVC and tell them they may have a buyer and go from there.

 

[disneynutz]

If the foreclosure benefits Disney, I doubt if they would let the owner sell, it's all in the numbers.

Bill

 

[Dean]

We referred a family a few years ago who ended up buying into DVC. Now they are in the process of a divorce and the contract is going into foreclosure. I'd like to help them out and buy out the contract and put it into my family's name. Anyone have any idea what the first steps would be? who would we contact? Is it even possible? Any info is greatly appreciated.

Since DVD has the right to make foreclosed points new points for resale and even break up or combine them to different size contracts, I doubt they'll have much interest in cutting a deal for this situation. It's easy, cheap and straightforward on their side and they are essentially whole other than minimal in house legal costs and recording/court fees. What you could do is to make a low ball offer and see if DVC takes it ROFR instead of letting it sell. However, the fees would have to be up to date for them to consider it ROFR. It'd be illegal to put one price on the contract and pay another as an under the table deal.

 

[chunkygal]

Would it not be like in regular real estate that you could buy it at any time before it goes "on the courthouse steps?"

 

[Dean]

Would it not be like in regular real estate that you could buy it at any time before it goes "on the courthouse steps?"

Assuming no bankruptcy, it's just like any real estate except for the ROFR attached. The problem with the ROFR is that if the price is too low, DVC just takes it at that price and avoids the bankruptcy proceedings. However, to pass ROFR, you have to be in good standing with DVC is my recollection.

 

[sweetdana]

Also if they only bought a few yrs ago, it may be cheaper to buy resale.

 

[Dean]

Assuming no bankruptcy, it's just like any real estate except for the ROFR attached. The problem with the ROFR is that if the price is too low, DVC just takes it at that price and avoids the bankruptcy proceedings. However, to pass ROFR, you have to be in good standing with DVC is my recollection.

Let me correct myself. The pending fees have to be paid at closing and the contract must specify who's paying them.