If I am financed through DVC for a contract, and I need to get out, will Disney just take back the contract?

[robinb]

I would simply rent out your points until you can sell and come out whole.

 

[suemom2kay]

What resort did you buy at and at what price? I agree that renting points until you are right side up on your loan is a good idea. Also, renting gives you time to see if your work schedule changes allowing you to use your contract for yourself again.

Definitely crunch the numbers regarding what you can get in the resale market. The ROFR thread in the purchasing DVC forum is a great resource.

 

[suebeelin]

If you rented your points at $15pp, you would cover your maintenance fees and still have $8.60 “profit” per point.

Presumably, that $8.60 will cover the financing costs plus a profit of some sort.

So, if you have 200pts, the maintenance fee is $6.40pp, or $1,280. If you rent it out, you get $3,000. You’ll “make” $1,720.

What are your financing payments a year?

 

[starry_solo]

I wonder why Disney doesn't do deeds in lieu of foreclosure? Years ago (20+), I used to work for a property management company that managed timeshares and they did that a lot....although, now that I think about it, nothing was owed on the mortgage, just the years of outstanding member dues....

 

[Dean]

I wonder why Disney doesn't do deeds in lieu of foreclosure? Years ago (20+), I used to work for a property management company that managed timeshares and they did that a lot....although, now that I think about it, nothing was owed on the mortgage, just the years of outstanding member dues....

The reality is they don't want it back if they don't have to. Now they can take it administratively without a full court proceeding but they want you to pay every single amount you can/will.

 

[Bearval]

One question I had though. Normally, if you are underwater on a home mortgage and a bank forecloses, they sell the house at auction, then you owe the difference between what you owe and what they got, is that correct?

DVC is sort of a different beast. If you financed directly through DVC, and they foreclosed, they would just take the contract, correct? However, DVC doesn't sell at a loss, they sell at full direct price. So how would the amount owed be determined?

DVC can subtract the cost of marketing, commissions and maintenance fees they have to pay from what they resell it for. I am sure they have some type of formula they use to show a lose otherwise everyone who wanted out who bought direct would just let DVC foreclose since they would get aleast what they paid instead of what resale goes for in the secondary market.