Buying DVC Foreclosures? Current Listings going to auction in March 2019

suspect doing it where they don’t lien all of the dues is beneficial to Disney also because it makes foreclosure less desirable.

This is probably correct I can’t see Disney doing anything that’s not 100% in their favor
 
I have been intrigued by this for a very long time but need a Buying Foreclosures 101 tutorial! Any suggestions? Also I found a contract I was interested in but its being offered up for sale @ MDK. So would that actually be a bankruptcy vs. foreclosure? How does one go about bidding on a contract through them? Thanks!
 
I have been intrigued by this for a very long time but need a Buying Foreclosures 101 tutorial! Any suggestions? Also I found a contract I was interested in but its being offered up for sale @ MDK. So would that actually be a bankruptcy vs. foreclosure? How does one go about bidding on a contract through them? Thanks!
All foreclosure auctions happen at the county level. If it is auctioned off outside of that it is bankruptcy, estate, pre-foreclosure auctions. Could really be anything except a judicial foreclosure.

Edit: I forgot about Trustee foreclosures see https://www.disboards.com/threads/b...on-in-march-2019.3732551/page-4#post-60294645
 
Last edited:


I have been intrigued by this for a very long time but need a Buying Foreclosures 101 tutorial! Any suggestions? Also I found a contract I was interested in but its being offered up for sale @ MDK. So would that actually be a bankruptcy vs. foreclosure? How does one go about bidding on a contract through them? Thanks!
Attorneys with the Manley Deas Kochalski law firm are acting as the Trustee for a DVC Condominium Association. The DVC deeds that the Trustee offers for auction are legally defined as Nonjudicial Foreclosures, or Trustee Foreclosures. They are not bankruptcy proceedings.

Here is an article I wrote in January 2016 shortly after Disney started to use Trustee Foreclosures to bypass judicial system foreclosures. At that time, an attorney with the law firm of Baker Hostetler was the Trustee and the Trustee Foreclosure auctions were conducted in person at the offices of Baker Hostetler. Beginning in 2017, attorneys who are associated with Manley Deas Kochalski have taken over most, if not all, of the Trustee Foreclosures for Disney.

Initially, very few third parties participated in these auctions, mainly because the auctions were not done electronically. However, that appears to have changed and more and more Trustee Foreclosures have attracted third party bidders. I have not tracked MDK's operation so I do not know if it offers electronic bidding or if it still requires that a bidder attend an auction in person.
 
Okay, I feel like I have just enough information to be dangerous...to myself! lol For anyone that was successful with this, how would you decide what to bid? Would you determine a price based on the amount of points, current "assumed" resale value, and then deduct from the total to cover possibly three years worth of maintenance fees? What about the amount on the judgement? Is that simply what the current owner would have to pay to avoid foreclosure? How does that amount relate to bidding (if at all)? Lastly, do you see who wins the auctions once you register on the OC site? Feel free to PM me if you'd rather. Any help would be greatly appreciated as although this has always interested me, I can see where it might end up costing more than buying resale. Thanks!!!
 


For anyone wanting to try and get a contract in a online auction
I gave it a try and Ended up with a 120 point SSR contract.

Day of auction was feb 12
My final wining bid was 10100
From the time I won the auction
Till the time I got my member # / club id was 6 weeks
Once logged in I had to square up on the the dues still owed
($1950) that was not covered by the final judgment

So the total I ended up paying was 12,050 I did get my points for 2019 and have already schedule a visit for October

This is the only time I did this so I can’t say for sure if this is always the case of the points being there

This foreclosure was not because of non payment of mortgage but for the dues/MF

I would think a contract being Foreclosed on for missed mortgage payments the owner could get one last stay on their points if they borrowed them before Disney starts the process

Anyway Looking at resale I probably saved very little if any $ at all

then what this could have cost on the resale market
The only advantage is the window of time taken between winning the auction and when I got my points And this may not be the case all the time as well

Plus
you also know once u are the winning bidder Disney’s right of refusal is done and you won’t need to wait on pins and needles for 30 days to see if they take it back
 
Anyway Looking at resale I probably saved very little if any $ at all

Thanks for sharing your purchase details, jrbenji! You definitely don't save money going the foreclosure route and I'm just watching it because I have a certain number of points and use year I'm looking for that is rarely on the resale market - which also means DVD will probably outbid me if it shows up because it must be a high demand combination. So for now I will watch and wait for the next few months.
 
Bump ... It seems the sentiment on this thread was don't go down this rabbit hole. Does anyone think given the current situation Disney might back off a bit on foreclosure auctions?
 
I doubt it. You might get lucky and sneak one by them though. Unless you know what you're doing though I wouldn't mess with it. There will be other people out there with the same idea as you, and they probably know more and have deeper pockets than you.
 
I doubt it. You might get lucky and sneak one by them though. Unless you know what you're doing though I wouldn't mess with it. There will be other people out there with the same idea as you, and they probably know more and have deeper pockets than you.
I’ve got to imagine that Disney is not going to be aggressively buying things back right now. Seems like they’re going to have a severe cash flow problem on their hands.
 
Day of auction was feb 12
My final wining bid was 10100
From the time I won the auction
Till the time I got my member # / club id was 6 weeks
Once logged in I had to square up on the the dues still owed
($1950) that was not covered by the final judgment

So the total I ended up paying was 12,050 I did get my points for 2019 and have already schedule a visit for October

So you ended up paying the same price as you could buy on the resale market?
 
So you ended up paying the same price as you could buy on the resale market?
At that time a little less then resale was going for
But once u win that’s
Disney’s right of refusal so at that point the points are yours and you don’t have to worry about disney coming in at the last seconds and taking the contract back

once I started to go down this avenue I personally enjoyed all the detective work involved I must have spent a whole weekend looking up contracts
By the end a had at least 2 dozen listed for the auction I was going to do
 
I’ve got to imagine that Disney is not going to be aggressively buying things back right now. Seems like they’re going to have a severe cash flow problem on their hands.

With foreclosures, the foreclosing party can "credit bid" up to the amount of judgment. For example, if DVD gets a judgment for $10000, they can bid up to that amount without opening their wallet. Just an FYI for anyone interested in pursuing foreclosures.
 
In this case, you are required to put the money into an account with the county 4 days ahead of time. There is no credit bidding. Also, having spent several hours looking, Disney or a flip company is still bidding all contracts up so far this year and almost all of them are over resale or have additional liens currently. All closed and scheduled so far for this year at least.
 
Bump...anyone been watching the auctions the last few months? Is Disney still actively bidding? Are prices still roughly same as standard resale?
 
I am not even seeing any DVC auctions set for all of August at this point? So there might not have been really any as possibly Disney is giving people a pass on MFs for more of an extended time right now?
 
Last auction was June 9 - I watched and most were bid up by a "supposed" third party to basically resale prices. Given the uncertainty of other liens, additional fees outstanding and no idea of banked or borrowed points, I didn't see any value. I say "supposed" because I've monitored these for a long time and often some sort of shell company ends up being the winning bidder on these wherever there is "action". I even researched a few and the deed was eventually assigned over to Disney, so I suspect Disney uses other entities to bid. I found it strange this time around given ROFR has not been active.

Rather than DVC giving a pass on MFs, I suspect the lack of auctions has more to do with difficulty in pursuing the foreclosure process with both limited resources at the OC Clerk, a preference for non-judicial foreclosures wherever possible and lack of DVC staff in office to move the process along. Like everything else, I expect these will pick up over time. I also watch the required public posting for these (that covers both judicial and non-judicial foreclosures) and there has been a trickle of postings in the last few weeks...but no date set for actual auctions yet.
 

GET A DISNEY VACATION QUOTE

Dreams Unlimited Travel is committed to providing you with the very best vacation planning experience possible. Our Vacation Planners are experts and will share their honest advice to help you have a magical vacation.

Let us help you with your next Disney Vacation!




Latest posts






Top