Just Won Bankruptcy Auction for 200 DVC Points at Animal Kingdom

[Princ3ssgldy]

Hey all!!! New member here, but as the title says, I just won a bankruptcy auction for 200 DVC Points at Animal Kingdom, and I'm very excited!!!

The total price I'm paying for the points is approximately $17,000 (including the bankruptcy judgment to be satisfied, so I'm paying approximately $85/pp (excluding closing costs). A good price, but still high enough I hope to make it through the ROFR.

My plan is to rent out 150 of my points every year (either directly or by making and selling reservations) so as to cover my MFs of $1,600 or so, and also to build up some cash to make up for my purchase. The other 50 will hopefully be used or bartered for personal vacations. I'm hoping to make back at least $2,250 each year from the rental of my points.

I know that I shouldn't get too excited before the ROFR comes back, but I can't help it! I just spent a few days at Disney as an adult with my two little girls, and honestly it was more magical then being there when I was a kid myself.

Just wondering if anyone has any advice for me? First thing I'm going to do now is order a title report and make sure that everything is clean. What else should I be doing? How easy or likely will it be for me to rent out my points? From what I understand, it's completely legit, and it is fairly easy to get $15/pp with enough time left in the UY.

Any and all advice is appreciated.

 

[capjak]

I use DVC Rentals from David's https://www.dvcrequest.com/ to rent out my points as it is very quick and easy.

 

[SandyPGravel]

I'm paying approximately $85/pp

it is fairly easy to get $15/pp

I know nothing about DVC, but what am I missing here? Costs $85, but can be rented for $15?

 

[Princ3ssgldy]

I know nothing about DVC, but what am I missing here? Costs $85, but can be rented for $15?

$85/pp is the initial purchase price, but they can be rented for yearly use at approximately $15/pp (keep in mind the annual MF of approx $8/pp, so the net profit is approx. $7/pp).

 

[rickandcindy23]

It's a good plan. I hope it passes ROFR for you. It should. Bankruptcy auctions can be a risk. I bought SSR, 250 points, on a bankruptcy auction from csassets, or something like that. It turned out okay, but it was a bit of a pain because the people owed so much money and had used more of the points than the attorney disclosed, so instead of paying $60 per point, it was quite a bit higher. I could have purchased it elsewhere for about the same price. It worked out fine, but it is risky.

 

[TravelTime]

You should not have to do anything. I am confused as to why you are ordering a title report. Do you have a title company handling this transaction and an escrow agent? Animal Kingdom is passing at about $100 so this might pass. I doubt I would buy from a bankruptcy just to save about $15 a point due to the risks. The closing could take a long time as there are many things that will need to be cleared and paid off first. Also, you want to check and see if there are any unpaid past due MFs that you will need to pay for. I would not give them all the money upfront. Normally you only need to put $2000 in escrow (sometimes less) and pay the balance at closing. I have heard that it is getting a bit harder to rent your points out. Animal Kingdom has lower rental demand because it always has availability well past the 7 month market.

 

[Princ3ssgldy]

It's a good plan. I hope it passes ROFR for you. It should. Bankruptcy auctions can be a risk. I bought SSR, 250 points, on a bankruptcy auction from csassets, or something like that. It turned out okay, but it was a bit of a pain because the people owed so much money and had used more of the points than the attorney disclosed, so instead of paying $60 per point, it was quite a bit higher. I could have purchased it elsewhere for about the same price. It worked out fine, but it is risky.

Thanks for the reply.

I will conduct an independent title search prior to sending any money, so I will know exactly how much is owed. If it is any higher than what was disclosed at the auction, I will either ask the seller to reduce the purchase price by an equal amount or I will refuse to purchase. Regarding the points, according to the seller, the MF for 2019 is due upon closing, but I will get my 2019 points in December of this year. Not sure how that part works, but I guess that MFs are all due at the same time for everyone regardless of their UY?

 

[Princ3ssgldy]

You should not have to do anything. I am confused as to why you are ordering a title report. Do you have a title company handling this transaction and an escrow agent? Animal Kingdom is passing at about $100 so this might pass. I doubt I would buy from a bankruptcy just to save about $15 a point due to the risks. The closing could take a long time as there are many things that will need to be cleared and paid off first. Also, you want to check and see if there are any unpaid past due MFs that you will need to pay for. I would not give them all the money upfront. Normally you only need to put $2000 in escrow (sometimes less) and pay the balance at closing. I have heard that it is getting a bit harder to rent your points out. Animal Kingdom has lower rental demand because it always has availability well past the 7 month market.

I am familiar with real estate transactions in the NY area, but I've never done a timeshare purchase or any real estate transaction in FL, so I'm new to this. I know that in NY, when purchasing any real property, the first step would be to order a title report to make sure that title is clear. I don't want to buy these points only to find out down the line that there is a mortgage or judgment on them. Regarding the MF, I will need to see an Estoppel from Disney confirming that all MFs are paid (except for 2019). I'm not planning on giving any money until I have these documents. At the very most, I would put some money in escrow with an attorney which is to be returned in full in the event that the title report and/or Estoppel doesn't return clean.

As for the time to close, I'm looking at this as a long term investment, so if it closes in 3 months or a year, it's not such a big deal to me, as long as I don't lose use of my 2019 points.

 

[TravelTime]

I am familiar with real estate transactions in the NY area, but I've never done a timeshare purchase or any real estate transaction in FL, so I'm new to this. I know that in NY, when purchasing any real property, the first step would be to order a title report to make sure that title is clear. I don't want to buy these points only to find out down the line that there is a mortgage or judgment on them. Regarding the MF, I will need to see an Estoppel from Disney confirming that all MFs are paid (except for 2019). I'm not planning on giving any money until I have these documents. At the very most, I would put some money in escrow with an attorney which is to be returned in full in the event that the title report and/or Estoppel doesn't return clean.

As for the time to close, I'm looking at this as a long term investment, so if it closes in 3 months or a year, it's not such a big deal to me, as long as I don't lose use of my 2019 points.

What I meant is if you have a title company handling the transaction, you do not need to do anything yourself. I would never move forward with a timeshare without one. It sounds like you are closing on this yourself without a title company or escrow company? It is very inexpensive to hire a title company so there is really no need to handle all this without one.

 

[Princ3ssgldy]

What I meant is if you have a title company handling the transaction, you do not need to do anything yourself. I would never move forward with a timeshare without one. It sounds like you are closing on this yourself without a title company or escrow company? It is very inexpensive to hire a title company so there is really no need to handle all this without one.

Oh, I definitely plan on working with a title company. Will I need an attorney too? Just from browsing different pages, I found Jeffrey C. Sweet, who seems to be highly recommended.

 

[TravelTime]

Oh, I definitely plan on working with a title company. Will I need an attorney too? Just from browsing different pages, I found Jeffrey C. Sweet, who seems to be highly recommended.

I highly recommend Paul Larkin. He is an attorney and a title company person so he can help with both.

Paul M. Larkin
TIMESHARE CLOSING GROUP
815 Murray Avenue
Myrtle Beach, SC 29577
T 843-531-9296 x202 F 843-353-2604
www.timeshareclosinggroup.com

 

[Crafty71]

Oh, I definitely plan on working with a title company. Will I need an attorney too? Just from browsing different pages, I found Jeffrey C. Sweet, who seems to be highly recommended.

+1 for Jeffrey C. Sweet...I have worked with him for all my DVC transactions (more than a dozen). A special shout-out to Melissa, his assistant. She is top-notch and always on the ball.

Cheers!

 

[Janann]

I found Jeffrey C. Sweet, who seems to be highly recommended.

I closed on a DVC resale in June 2018, and Mr. Sweet was the assigned attorney through ResalesDVC.com. Everything turned out perfectly.

 

[lovetotravel77]

Hope that it passes. Hope that the title is clean, bankruptcy of course can be complicated I would imagine. We own at AKV. We have never rented out points, but from my understanding of the rental market, I would rent for no less than $15.00 per point. Good Luck to you!

 

[lovetotravel77]

If this passes ROFR, your two little girls will love AK, as well as the other resorts. We don't stay at our home often, think only 3 times since 2008, but both Kidani and Jambo are so nice. We stayed at Kidani, 2 BR, 3 bath, very spacious with our now 2 adult sons. Prefer Jambo, pool has been refurbished, love having Mara, the quick service right there for my morning coffee, just enjoying the ambiance of the beautiful lobby! We have stayed at most of the resorts, enjoy them all! If you get a chance, think your two little girls would love Beach Club Villas at the Boardwalk, the pool Stormalong Bay is one of my favorite on property. We stay there during Food And Wine, love the walking proximity to Epcot, wow!

 

[TheHolleys87]

<snip> Regarding the points, according to the seller, the MF for 2019 is due upon closing, but I will get my 2019 points in December of this year. Not sure how that part works, but I guess that MFs are all due at the same time for everyone regardless of their UY?

MFs are per calendar year and are due January 15 each year and considered late after February 15. Thus the MFs for 2019 are due now, but any of the title companies you’re considering will know how to deal with them at closing.

 

[AnnaS]

Good luck with the whole process/transaction. Let us know how you make out. No experience with auction/bankruptcy/foreclosure/resales. Only bought Direct.

After 18 years, I did rent out a few points last year (for a stay this early Feb.) through the DVC rental store. No issues.

 

[littlestar]

Good luck with the whole process/transaction. Let us know how you make out. No experience with auction/bankruptcy/foreclosure/resales. Only bought Direct.

After 18 years, I did rent out a few points last year (for a stay this early Feb.) through the DVC rental store. No issues.

I am always in borrowing mode. I will probably never have any extra to rent - LOL.

Good luck to the original poster on your deal.

 

[TravelTime]

We are 100% liquid

 

[AnnaS]

I am always in borrowing mode. I will probably never have any extra to rent - LOL.

It's a long story....I don't usually have extra to rent - that was definitely a first after 18 years. Both my married sons - own a small number of points each - they are always in need of extra points. I banked some purposely for that reason (as I have before) but this time it did not work out for one. Now my youngest daughter is getting married end of year. She has also gone to WDW without us with our points. It's only a matter of time before she goes more and more.

An add-on is in the future. I might just buy my sons each a small amount to add to theirs (they can pay their own MFs) and and another small contract under my daughter and son-in-law.

 

[Princ3ssgldy]

Disney waved ROFR! Woohoo!

 

[AnnaS]

Disney waved ROFR! Woohoo!

Congratulations and Welcome Home!!!

 

[rickandcindy23]

I am very happy for you. What a great price. Makes me think I want more DVC.

With DVC, I always want to stay in the smallest unit possible, to use it for more nights, but then I wish I didn't do that because I like the big bathtubs and the bigger beds of the one bedrooms. I don't like to be cheap! Those studios are just not as comfy.

So when we booked our Aulani stay for next month, one night, it was 50 points for a one bedroom, one night. CRAZY! I would love to save points, but I want to experience Aulani in the one bedroom unit. There was actually no studio available, so it's not like I had a choice.

 

[AnnaS]

I am very happy for you. What a great price. Makes me think I want more DVC.

With DVC, I always want to stay in the smallest unit possible, to use it for more nights, but then I wish I didn't do that because I like the big bathtubs and the bigger beds of the one bedrooms. I don't like to be cheap! Those studios are just not as comfy.

So when we booked our Aulani stay for next month, one night, it was 50 points for a one bedroom, one night. CRAZY! I would love to save points, but I want to experience Aulani in the one bedroom unit. There was actually no studio available, so it's not like I had a choice.

Nice - have a great time!

 

[rickandcindy23]

Nice - have a great time!

Thanks! I am so excited to see Aulani, and also the Marriott next door. I got a match for Ko Olina, and who can resist? We just left Maui Saturday night. Rick would think I am crazy, except he has been wanting to go to Oahu, just the two of us, so this is our chance.