Many people who own their home have a mortgage.
I don't know all the interlocking ownership and relationships. It's possible Pete can sell the contracts with a reduced commission or Pete gets part of the commission.
I don't know the math. Can Pete get emough $$$ renting the points to cover dues and financing payments?
You don't own your home if it's mortgaged. The bank owns it.
Monera Financial effectively owns those resale contracts. That's how they can offer financing with no credit check (the only kind Pete was capable of obtaining). The DVC contract itself is the collateral. Whatever direct contracts he bought he can sell, but will take a loss, most likely.