IRS Auctioning 620 VWL points?

[zalansky]

My DH found this - 620 points up for auction that were seized from someone:

http://www.treas.gov/auctions/irs/obfl_real_1554.htm

Will that get through ROFR?

 

[kimberh]

Anyone know how this works?

 

[rinkwide]

And this folks, is why you don't freakin' finance. DVD is still owed $48 per point on that loan.

 

[DVCLiz]

Sweet - if all you had to do was pay off the balance, that would be about $48 a point. I wonder if ROFR applies in a case like this??? I'm sure Disney has a team of lawyers and they have had this situation before. If anyone knows, it would be interesting to hear the final outcome!!

 

[mydogdrew]

Does not say what points are available? Since it is in default, you might get all 2006 points. You would have to assume the note, pay off the 2006 dues and pay at least $3000 more? That's still under $60. But ROFR would take that deal.

 

[Judy WI]

I think there was another post a while ago about this or one like it and there were more fees attached. Someone posted that Disney was sending someone to the auction.

 

[Plutofan]

The auction is already over and buying the property would have been very risky. The property had a large balance on the loan that you would have to assume and two years of dues owed. Disney thought that they would not go after you for the past dues but they were not sure. If you won the auction you would not get the deed until 6 months from today (IRS seizure rules). It is disappointing since it would have been agood contract since there was over 1000 available points. By that time you would have lost all banked points and just got the current points. I belive that it was a February use year. I went as far as having several conversations with the IRS agent and a conversation with Disney. The bottom line is that you would not gain much more than buying a contract with bank points and renting them off.

Also Disney was going to send someone to the auction becuase an IRS auction by passes ROFR.

 

[FertilityDoc]

As you have all read, this IRS foreclosure auction was completed yesterday. There were 3 absentee bids which were submitted to the auction. The first bid was for about 54.50 per point. The second bid was 55.40 per point. I had bid 72.50 per point. I adjusted these numbers for the mortgage ($29,785) due DVC. The acutal bid amounts were $4000, $4500 & my bid of $15,101 dollars. There was an additional encumbrance on the property amounting to $2862 or about $4.62 per point for maintenance dues. This encumbrance was behind the IRS claims. It is uncertain whether DVC would have been able to collect this from the winning bidder. If the IRS was wrong on this it could have brought my price per point total up to about $77.12 per point. The 2006 points could have been lost since this was potentially a stripped contract due to the 6 month waiting clause. It was unclear whether the 2006 could have been banked at all. I was certainly not willing to go any higher than that. The winning bidder got the contract for $15,250. Of course the mortgage of $29,785 would have still been due disney as the 1st encumbrance. I bid as high as I was comfortable. The winning bidder was on site at the auction. I did not have that luxury. I am not sure who was the winning bidder. The IRS agent who was quite helpful did not volunteer that. I don't suspect it was DVC. He indicated prior to the auction that he did not expect them to participate. It was not clear whether Disney could have exercised their ROFR.

It was an interesting experience. God bless the winning bidder. I am not sure they got bargain unless it was DVC who can turn around and sell the the points at $95.

 

[canwegosoon]

Do you think that was the points from that person in Westchester that committed theft while working in a bank?

 

[Plutofan]

I personally talked to the IRS agent and Disney prior to the auction and they both had concerns that there would be no points available until the six months were up. No points could be banked from prior years since the IRS and owner had no rights to bank. You would probably only get 2006 points which you would miss some of the banking windows.

 

[WOW]

This can and does happen all the time. People overextend themselves and then they go bankrupt and if they owe money to the IRS or any other Federal Agency, they have the right to seize assets. They have made the bankruptcy laws much harder than they used to. People would just do it over and over again and guess who it hurts?????? People who pay their bills.

 

[offtheice]

This can and does happen all the time. People overextend themselves and then they go bankrupt and if they owe money to the IRS or any other Federal Agency, they have the right to seize assets. They have made the bankruptcy laws much harder than they used to. People would just do it over and over again and guess who it hurts?????? People who pay their bills.

Oh please! I am sure you take advantage of somethings that hurt people some time or some place down the road. People lose jobs ,divorce and so on . Dont stand on that box to long and act like your god. What goes around comes around . I guess you dont look at the news. The cost of living is sky rocketing to an all time high . It wasnt like this 5 yrs ago..

 

[Laurajean1014]

The IRS would supercede the ROFR clause in a DVC contract.

I think this was a very good price to pay for 620 points even if they did lose some 2006, suspectively.

 

[DVCconvert]

Oh please! I am sure you take advantage of somethings that hurt people some time or some place down the road. People lose jobs ,divorce and so on . Dont stand on that box to long and act like your god. What goes around comes around . I guess you dont look at the news. The cost of living is sky rocketing to an all time high . It wasnt like this 5 yrs ago..

that sounds like an over-reaction to what WOW was saying. I don't personally see anything there that should make you ask if WOW thought he/she were God like.

 

[Cruelladeville]

If the IRS was auctioning off the contract, it wasn't because of bankrupsy or not paying their dues. The IRS seizes anything that is potentially an asset in order to pay for overdue taxes that can't be paid. I would guess that there had been an agreement with the IRS that the DVC owners couldn't pay. They could have been self-employed, and it's easy to rack up a large amount of unpaid taxes if they weren't paying their 1/4ly tax bills. Whether the owners financed DVC or not has nothing to do with the IRS seizure.

 

[dvc_john]

One thing not mentioned is that apparently this is all one contract.
I would never buy a single contract that large, almost no matter the price.

 

[zalansky]

Thanks for the replies, I was very interested in how this process works. We did not have interest in trying to get it, we couldn't afford it right now!

 

[rinkwide]

...I would never buy a single contract that large, almost no matter the price.

Personally, I'd try to find twelve 50 point contracts (all with different use years).

 

[greenban]

Personally, I'd try to find twelve 50 point contracts (all with different use years).

[public service announcement]

Dear Newbies!

Our dear Rinkwide is joshing you, we all know there are only 10 Use Years in a Calendar Year!

Please do not call MS looking for the missing 2 Use Years!

-Tony

[/public service announcement]

 

[Dumbo]

There are only 8 use years.