It appears that articles about Disney Vacation Club foreclosures by the DVCNews and Sandra Pedicini from the Orlando Sentinel have spurred interest in the public auction process. Documents filed with the Orange County Comptroller show that more individuals are now participating in both the non-judicial Trustee public auctions and the judicial public auctions mandated by the Courts.
From November 2015 through January 2016, 121 non-judicial public auctions were completed by the Trustee appointed by Disney Vacation Club. In every case, Disney Vacation Development won the DVC deed at auction with a bid of $100. Since $100 is the minimum bid, it is apparent that no one other than DVD participated in these auctions.
In February 2016, OCC records show that third parties are now getting involved in these Trustee auctions. Through February 10, 2016, 11 DVC deeds were auctioned by the Trustee. Five of the deeds were won by DVD, but six deeds were won by a third party. Of the five won by DVD, only one was won with a minimum bid of $100. On the four other auctions, DVD had to make competitive bids in order to win the deeds. The chart below shows the amounts of the winning bids and the average price per point paid for each deed.
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Increased participation by third parties is also occurring with the judicial public auctions conducted by the Orange County Clerk of the Courts. In July 2015, DVD had the winning bid on 120 deeds that were auctioned by the Clerk of the Courts. Of those, 60 were won by DVD with bids of only $100.00, meaning that exactly half of these auctions did not have third party participation.
Six months later, in January 2016, DVD had the winning bid in 54 judicial auctions. But only two of the 54 deeds were won with bids of $100.00, meaning that over 96% of the judicial auctions had bids from other parties besides DVD.
One byproduct of increased bidding on these auctions is that there is a greater chance that the winning bid will be large enough so that some of the proceeds will be dispersed to the original owner. In nine of the 11 Trustee auctions cited above, the winning bid was more than the outstanding lien amount, so the difference can be given to the deed’s original owner.
Wil Lovato is a contributor to DVCNews.com and has been a Disney Vacation Club owner since 2009. His DVC Home Resorts include Bay Lake Tower, Animal Kingdom Villas, and Aulani. He can be found posting on many Disney discussion forums under the username of “wdrl”.
