Has anybody ever been refused a DVC contract?

[ty_n_cy]

My wife and I have been looking into DVC since our first trip in May and we decided over the long weekend to get serious about it and buy 160 points at AKV.

We're a little concerned about obtaining financing though. Our credit, while not terrible, isn't perfect. Basically, we have the money... we know we'll HAVE the money in the future... but we are concerned that our current credit scores would disqualify us.

Has anybody ever been disqualified before? If so... are there specific reasons?

No bankruptcies.
No foreclosures.
No repossessions.

Just stupid stuff from years ago that is still haunting us (low limit chargeoffs, etc).

Would that disqualify us... ?

Thanks for any help!

CY

 

[timandlesley]

I'm going to send you a PM : )

Lesley

 

[bumbershoot]

It didn't disqualify DH! He even got financing at the preferred rate. Like you, just a bunch of old stuff hanging on.

Nice thing about their financing is that you can pay extra on it at any time (they even have a link to pay anything from $10 to paying it off, as long as a payment isn't processing), so now that things are good in your house, you can just smash down the loan.

 

[disneynutz]

Since Disney is now carrying their own loans, they are a little more concerned about credit scores. Typically if you don't meet the preferred requirements, Disney will charge you a higher interest rate. If you should default on the loan, Disney just takes back the points and resells them.

Disney has a few hundred defaults per year either because of non payment of dues or loans.

Bill

 

[YourEveryDayAdam]

I was able to get financing directly from Disney for my DVC, even with a bankruptcy in my mid-term past. They aren't very picky about who they give money to.

They don't really need to be since if you ever default, it's very easy for them to repossess and resell. It's not like they need to evict you from your house :-D

 

[ppony]

I was able to get financing directly from Disney for my DVC, even with a bankruptcy in my mid-term past. They aren't very picky about who they give money to.

They don't really need to be since if you ever default, it's very easy for them to repossess and resell. It's not like they need to evict you from your house :-D

This was us as well. PM me if you have questions. I won't talk publicly because people get very nasty. We JUST signed pour contract a week ago.

 

[ty_n_cy]

Thanks everybody for your replies. I guess I'll find out tomorrow if I qualify or not. Waiting to hear back from our Guide and from Credit Underwriting.

It's odd because we were flat out approved back in May of 2009 but when we called our then guide (Larry Hope) to purchase, he NEVER got back to us about it. We took that as a 'sign' that we shouldn't do it at that point.

Now, our new Guide (Cathy Leahy) has run our credit and she said it was approved but with a pending status attached and that I'd need to speak to Credit Underwriting.

That has me worried because other than the same decrease that everybody else saw in July when FICO reworked their scoring system... nothing has changed. In fact, things have gotten BETTER... so - I guess we'll see.

I'm just nervous we're going to be told "sorry - try again later"... which if that happens, I'm not so sure when "later" would be... and we've got some plans we'd like to make over the course of the next 24 months or so... which DVC would be perfect for... and then going forward, it would be helpful to prepay for our rooms anyway.

Thanks again!

CY

 

[goodferry]

Good luck, we were approved in June, same boat, got preferred.

 

[YourEveryDayAdam]

Now, our new Guide (Cathy Leahy) has run our credit and she said it was approved but with a pending status attached and that I'd need to speak to Credit Underwriting.

This usually means that, given everything you've entered on the application (income, expenses, etc.) and your credit history is correct, then you are approved. They just want to verify your income or some other piece of what you've told them about your credit is true. Usually involved sending them a copy of your W2's, a paystub, or past tax returns.

God luck!

 

[bumbershoot]

It's odd because we were flat out approved back in May of 2009 but when we called our then guide (Larry Hope) to purchase, he NEVER got back to us about it.

And see that's completely weird, b/c when DH gave our guide his info on the phone, there was about a moment of silence, then Jim asked hubby how he'd like to do the downpayment. Hubby was stunned that it was SO fast. We were doing a giftcard deal and paying the rest from our checking, so we did all that when we got our big package fedexed to us then sent it back.

I wonder where the disconnect was with your guide?

And I wonder if you need to talk with underwriting because of whatever happened in May?


When we got our packet, everything needed to be filled out, and the wording *sounded* like it wasn't a done deal. But the reality was that DH was good to go. It was just the formal wording.

 

[christa112]

We don't have terrific credit either and got approved last year.

 

[dburg30]

Disney doesnt want you to default of course, they want their money BUT if you happen to default, what are they out? Of course the direct answer is, your money. But it's not like you actually own "something" you own points. So if you default they will take back your points and sell them. I'm sure they finance people that probably couldnt get financed on other stuff.

 

[BelleDVC]

Lots of people are in similiar situation due to bad economy... So I don't think you'll have a problem.

But I would advise to buy small contracts, if possible, in case you need to sell down the road.

Pixie Dust, Belle

 

[Greysword]

Disney doesnt want you to default of course, they want their money BUT if you happen to default, what are they out? Of course the direct answer is, your money. But it's not like you actually own "something" you own points. So if you default they will take back your points and sell them. I'm sure they finance people that probably couldnt get financed on other stuff.

In answer to your rhetorical question , Disney will likely incur significant expense in labor (collections, processing the foreclosure documents, MS rep telling the member they can't use their points and why, cancelation of planned vacations), postage, court fees, and possibly other fees (refunds on any deposits, etc) if a member is unable (or unwilling) to payoff a loan. Although these costs could possibly be transfered to active members (in the form of higher dues across the board), the cost of foreclosure is not insignificant.

Although my response is off topic and may seem argumentative, I think it is important to note the process is not simple nor without burden.

As to Chuck's question, since Disney self-finances each deal, they are more lenient on creditworthiness than mortgage companies (then again, so are car dealers). Please note that Disney does not report your loan to the credit bureaus, thus this loan will not assist you in rebuilding your credit nor will it harm your credit.

Good luck!

- Chris

 

[ty_n_cy]

In answer to your rhetorical question , Disney will likely incur significant expense in labor (collections, processing the foreclosure documents, MS rep telling the member they can't use their points and why, cancelation of planned vacations), postage, court fees, and possibly other fees (refunds on any deposits, etc) if a member is unable (or unwilling) to payoff a loan. Although these costs could possibly be transfered to active members (in the form of higher dues across the board), the cost of foreclosure is not insignificant.

Although my response is off topic and may seem argumentative, I think it is important to note the process is not simple nor without burden.

As to Chuck's question, since Disney self-finances each deal, they are more lenient on creditworthiness than mortgage companies (then again, so are car dealers). Please note that Disney does not report your loan to the credit bureaus, thus this loan will not assist you in rebuilding your credit nor will it harm your credit.

Good luck!

- Chris

Good post. We understand that it would cost Disney money if one were to default... but as that's not our intention, we're hoping they are lenient on us as far as the percentage needed down.

We also understand that it won't rebuild our credit... but we have been taking the time to clear are negatives up ourselves rather than let them fall by the wayside and just 'disappear' from our credit.

That's why we are concerned, because our more distant history has quite a few negatives on it that we feel would possibly prevent us from obtaining financing. But, on the OTHER side of that... our more recent history (4 years ago and sooner) is immaculate including car loans, credit cards and other miscellaneous loans that have been repaid on time, etc.

What our big worry was... that our history from 4-7 years out would prevent us from obtaining financing. Our paperwork is supposed to be here tomorrow... and we're supposed to sign it and send it back along with income verification, etc. Then, we'll have to wait and see what type of deposit they'll require.

We were basically told we wouldn't be DENIED, per se... but our deposit requirement could prevent us from joining. Since we're willing to 'pay the piper', so to speak, for our past credit issues... we'll be fine and SHOULD be official members by the end of next week.

Thanks again to everyone for all the replies!

CY

 

[ppony]

Good post. We understand that it would cost Disney money if one were to default... but as that's not our intention, we're hoping they are lenient on us as far as the percentage needed down.

I believe what they wanted down was 10%. You could do more of course. But the GOOD thing that helped tha out in getting more $ towards your 10% was discounts given and promotions worked towards your deposit. So for example, if you 10% deposit was 4K, a bunch of the promotion dollars off and such were (for us) applied towards that deposit so what we actually had to pay in was about 5% OOP initially.

 

[bumbershoot]

Our paperwork is supposed to be here tomorrow... and we're supposed to sign it and send it back along with income verification, etc. Then, we'll have to wait and see what type of deposit they'll require.

I would be surprised if there wasn't a spot in your paperwork stating exactly what your deposit is, and showing the arrangements for paying it...

 

[dburg30]

In answer to your rhetorical question , Disney will likely incur significant expense in labor (collections, processing the foreclosure documents, MS rep telling the member they can't use their points and why, cancelation of planned vacations), postage, court fees, and possibly other fees (refunds on any deposits, etc) if a member is unable (or unwilling) to payoff a loan. Although these costs could possibly be transfered to active members (in the form of higher dues across the board), the cost of foreclosure is not insignificant.

Although my response is off topic and may seem argumentative, I think it is important to note the process is not simple nor without burden.

As to Chuck's question, since Disney self-finances each deal, they are more lenient on creditworthiness than mortgage companies (then again, so are car dealers). Please note that Disney does not report your loan to the credit bureaus, thus this loan will not assist you in rebuilding your credit nor will it harm your credit.

Good luck!

- Chris

I'm not saying it wouldnt cost them ANYTHING, but it's not like they are stuck with a house that has a 200k loan balance on it and is only worth $125k now. And while the things you listed are very true, I have a feeling DVC has people on staff to deal with all of that, so it's not like they would be paying extra for most of that.
And I found the part about MS having to tell members why they couldnt use their points... I think said member would have a pretty darn good idea why they couldnt...

 

[bumbershoot]

So? Did you get the paperwork?

 

[ty_n_cy]

So? Did you get the paperwork?

Not yet... called our guide yesterday and she said they had a backlog but that we SHOULD have received it today. Nothing arrived though... so, hopefully tomorrow.

I did call and question about the downpayment... because she didn't orignally say that the $2400 incentive would be applied towards a downpayment. But she did say that if we were required to put down the 30%, it'd only really be an extra $1100 give or take because the incentive would be applied towards our downpayment.

I don't quite understand how that works since she said she needed at least 10% down ($1792) on TOP of the incentives... but, whatever.

At this rate... 30% would be $5376. We'll have put down $1792 already, leaving a balance of $3584... taking the $2400 incentives leaves $1184. Easy enough... IF that's the way it works.

We'll see. Right now, we're just anxious because the paperwork is STILL floating around out there.

CY