How to Avoid Foreclosure of Your DVC

Owning a Disney Vacation Club (DVC) timeshare can be a dream come true for many families, offering a way to enjoy the magic of Disney vacations year after year. However, financial hardships can strike unexpectedly, putting owners in a difficult position trying to avoid foreclosure on their beloved timeshare. Foreclosure can have significant negative effects on your credit score and financial history, making it crucial to take proactive steps to prevent this from happening. This article aims to guide DVC owners through various strategies and options available to avoid foreclosure.

Understand Your Financial Obligations

The first step in preventing foreclosure is to thoroughly understand your DVC membership and the financial obligations it entails. Knowing the specifics of your agreement, including payment due dates, grace periods, and late payment penalties, is critical.

Your membership fees are due each year by January 15th. They are considered “late” if not paid by February 15th. If you financed your purchase through Disney Vacation Club, your loan payments will be due monthly, typically on the 1st or 15th of every month.

Once 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” of using your membership until your account is up to date.

Know the Foreclosure Process

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. There will be added late fees and penalties, possible attorney fees as well.

If you don’t pay the lien, your lender will begin foreclosure proceedings. They will issue a Notice of Trustee’s Sale with a deadline for paying all owed funds and a date for auctioning the property. If the amount due and fees are not paid, your property will be auctioned off, and this cannot be reversed.

Communicate Early and Often

If you’re facing financial difficulties, it’s important to communicate with DVC or the loan holder as soon as possible. Many owners make the mistake of avoiding communication out of fear or embarrassment, which can exacerbate the situation. Early communication can open up a dialogue for potential solutions and demonstrate your commitment to resolving the issue. The lender may offer temporary relief or modified payment plans to help you through tough times.

TIP: Set up the monthly payment plan for your annual dues at the beginning of the year so that you can pay over the course of the year instead of in one lump sum. If you’re struggling with a mortgage/loan payment, contact a third-party lender like Vacation Club Loans about re-financing your mortgage to make the monthly payments more manageable.

Consider Renting Out Your Timeshare

Renting out your DVC points can be an effective way to generate income to cover your dues and fees. This option can be particularly useful if you’re unable to travel due to financial constraints or other reasons. Brokers like Vacation Club Life specialize in timeshare rentals and make it easier to find renters. Your accounts must be in good-standing with DVC to book reservations so this avenue should be explored before you are in distress or behind on payments.

Sell Your Timeshare

If your financial situation makes it unlikely that you’ll be able to afford your DVC in the long term, selling it may be the best option. The resale market for DVC timeshares can be competitive, but there is a demand for these properties. It’s important to approach the resale process with realistic expectations and to be wary of scams targeting timeshare sellers. Consider working with a reputable reseller or a real estate agent, like the team at Vacation Club Life, who specializes in DVC resales to navigate the process.

Join Support Groups and Forums

Connecting with other DVC owners through support groups and online forums can offer moral support and practical advice. Many owners have gone through similar experiences and can share strategies that worked for them. These communities can also be a source of recommendations for legal assistance, reputable resellers, and rental platforms.

Plan for the Future

Once you’ve navigated the immediate threat of foreclosure, it’s essential to plan for the future to prevent similar situations. This may involve reassessing your vacation priorities, creating a more robust savings plan, or even reevaluating whether timeshare ownership aligns with your long-term financial goals.

Avoiding foreclosure of your DVC requires prompt action, open communication, and a willingness to explore all available options. By taking proactive steps and utilizing the resources available, you can work towards a solution that preserves your credit, financial health, and your ability to enjoy magical vacations for years to come.

Are you facing foreclosure? Contact us today and we’ll walk you through options!

Posted By:

Kristen Tutas