On the heels of an article by Wil Lovato on the sale of DVC deeds at public foreclosure auctions comes this morning’s article in the Orlando Sentinel.
Disney Vacation Club foreclosures attract interest
Hundreds of Disney Vacation Club contracts go to foreclosure sales each year.
December 28, 2015 | Orlando Sentinel | Sandra Pedicini
Disney advertises ownership in its time-share resorts as “vacations you never outgrow.” If the vacations outgrow their owners’ bank accounts, though, the properties can end up in foreclosure.
Orange County’s foreclosure auctions each year include hundreds of Disney Vacation Club deeds, as owners walk away from or can’t pay their loans or annual assessments. Disney often ends up getting the contracts back, but a small group of entrepreneurs wins some of them.
Foreclosures are not uncommon in the time share world. The default rate for time-share loans last year was 6.3 percent, according to the American Resort Development Association, an industry trade group. Disney did not provide its default rate but says it is “significantly less,” and that the number of annual auctions makes up only about half of 1 percent of its membership of more than 200,000.
Still, that there is any significant number of foreclosures surprises some in the industry because Disney time shares are known for their high resale value.
“I’m shocked and surprised,” said Chris Skeldon, vice president of sales for Fidelity Real Estate, which resells time shares from companies including Disney Vacation Club. “I think virtually anyone who’s in foreclosure with a Disney property, the vast majority of them have options they may not know about.”
Read the complete article at orlandosentinel.com