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A recent article posted in the Orlando Sentinel brought to light the foreclosure process that occurs each year for hundreds of Disney Vacation Club owners. Although DVC foreclosures are very low at less than 1% of total ownerships, its still a hard reality for some owners who cannot meet the financial requirements for their membership.
Foreclosure Process
The moment you miss the final deadline for payment, you will not be able to make new reservations, modify existing ones, or bank/borrow points. You are essentially “locked out” until your account is up to date.
Within a few months of being in default, Disney will place a lien on your contract for unpaid mortgage payments, unpaid maintenance fees or both. This will come from Disney Vacation Club and/or Palm Financial Services, the company that services DVC loans. This can come quickly, within a few months of missing payments so it’s important to be aware and get back on track with monies owed as quickly as possible. There will be added late fees and penalties, possible attorney fees as well.
If the lien is not paid, then they will move on to foreclosure proceedings and issue a Notice of Trustee’s Sale with a date for paying all owed funds as well as a date your property will be up for auction. If the amount due and fees are not paid by the date on the notice, your property goes to auction and that cannot be undone.
What Can You Do
If you are an owner struggling to make your mortgage payments or annual dues, please contact us about your options. Even if Disney has started the foreclosure process, there are still alternatives that you can pursue in order to avoid a foreclosure.
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