Just Won Bankruptcy Auction for 200 DVC Points at Animal Kingdom

Discussion in 'Purchasing DVC' started by Princ3ssgldy, Feb 13, 2019.

  1. Princ3ssgldy

    Princ3ssgldy Earning My Ears

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    Hey all!!! New member here, but as the title says, I just won a bankruptcy auction for 200 DVC Points at Animal Kingdom, and I'm very excited!!!

    The total price I'm paying for the points is approximately $17,000 (including the bankruptcy judgment to be satisfied, so I'm paying approximately $85/pp (excluding closing costs). A good price, but still high enough I hope to make it through the ROFR.

    My plan is to rent out 150 of my points every year (either directly or by making and selling reservations) so as to cover my MFs of $1,600 or so, and also to build up some cash to make up for my purchase. The other 50 will hopefully be used or bartered for personal vacations. I'm hoping to make back at least $2,250 each year from the rental of my points.

    I know that I shouldn't get too excited before the ROFR comes back, but I can't help it! I just spent a few days at Disney as an adult with my two little girls, and honestly it was more magical then being there when I was a kid myself.

    Just wondering if anyone has any advice for me? First thing I'm going to do now is order a title report and make sure that everything is clean. What else should I be doing? How easy or likely will it be for me to rent out my points? From what I understand, it's completely legit, and it is fairly easy to get $15/pp with enough time left in the UY.

    Any and all advice is appreciated.
     
  2. MB_01

    MB_01 Earning My Ears

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    I thought if you bought it at auction Disney effectively already waived their rofr?
     
    Marionnette likes this.
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  4. crvetter

    crvetter DIS Veteran

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    That is a foreclosure auction. I don't know about a bankruptcy auction though. The only thing major the OP should also be aware of is any outstanding MFs will need to be paid by them before they can use the points.
     
    jerseygal likes this.
  5. kniquy

    kniquy DIS Veteran

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    I would presume there are back MF due on those 200 points. Even if you have to pay 2 years of MF i think it would bring you up to what the current resale market is at, so not a bad deal. On the foreclosure site for Orange County it is presumed that MF for at least a couple years are due.

    OP - How did you come about the bankruptcy auction? I thought they were all held/handled by Orange County, FL.
     
  6. crvetter

    crvetter DIS Veteran

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    Bankruptcy and foreclosure auctions are different. I'm assuming they bought from someone who declared bankruptcy so the court is ordering them to liquidate assets, not a foreclosure where the lienholder wants to be made whole.
     
  7. Princ3ssgldy

    Princ3ssgldy Earning My Ears

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    @kniquy, @crvetter is correct. This was a bankruptcy auction which is different from a foreclosure. The foreclosure auctions are all held in Orange County (as far as I know), but a bankruptcy auction can be held in any jurisdiction as it is processed by the local courts of the debtor.

    Regarding the MFs owing, I was told by the auctioneer that they are up-to-date (except for 2019, but that those points have not yet been used). I will wait to confirm that with Disney (via Estoppel) before paying for anything.

    Thanks for the advice.
     
    crvetter likes this.
  8. kniquy

    kniquy DIS Veteran

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    This is an interesting avenue for buying. If all you have to pay is 2019 MF then you did get a pretty good deal. I guess DVC could still take it in ROFR, but keep us updated!
     
    jerseygal likes this.
  9. Drewferin

    Drewferin Mouseketeer

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    Agreed keep us updated on ROFR!!
     
    jerseygal likes this.
  10. Rebecca wallis

    Rebecca wallis Earning My Ears

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    where did you find them listed interested in buying if there more for sale that way?
     
  11. TinyTGO

    TinyTGO Mouseketeer

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    If the auctioneer gave you accurate information, that's a great snag. In my experience, the auctions at the county are a crapshoot. You are either getting the elevator or the shaft. I've had some hit with only current dues required only, and some hit with 6 years of back dues. You never know.
     
  12. blueant315

    blueant315 Mouseketeer

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    Sounds like a great deal! Keep in mind any money you make from renting out the points would be considered taxable income, less expenses (such as amortized purchase price and MFs). I doubt you will have any problems renting them out. In the off chance you do at some point, you'll just be able to take extra trips yourself, gift them to friends and family, or rent rooms that take more points than you'd normally splurge for - all winning options in my book!
     

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