Disney Vacation Club Foreclosures Attract Potential Investors

by San Antonio Attorney

Every year, Orange County’s foreclosure auction includes hundreds of deeds belonging to the Disney Vacation Club.  This typically happens when owners walk away when they fail to pay loans or their annual assessments.  Disney obtains some of the contracts and the rest goes to entrepreneurs who are willing to assume the property.

Foreclosures are common particularly in a timeshare setup.  However, a high number of foreclosures are deemed as a surprise since Disney timeshares are known for their high resale value.

Various companies can handle contract reselling and Disney intervenes by exercising a right of first refusal.  This move allows the purchase of memberships back again prior to auction to third parties.

In 2015, more than 900 deeds sold at an auction sponsored by Palm Financial Services, according to records from Orange County Clerk of Court’s office.

A brief review of foreclosure records indicate that Disney takes back the property, especially for nominal bids because the demand for the property is not that high.

The price for each property depends on factors including how much is owed.  Some buyers revealed that they used to make a successful foreclosure purchase for 15 percent to 20 percent under the price on the resale market.

However, that margin seems to have shrunk to 10 percent or less nowadays.

Timeshares will depend on the annual points system.  The prices seen are generally no less than $70 a point and can go up to $110.

Disney has become more aggressive in doing their bidding since more people have been interested in buying.

Home resorts that appear most of the time in auction listings are Saratoga Springs Resort & Spa and Disney’s Animal Kingdom Villas located in Orlando, two of its largest memberships among the resorts.

There is another property that appears somewhat often, though not as frequently as Saratoga Springs and Animal Kingdom, is the recent Bay Lake Tower at the Contemporary Resort.

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