Disney Vacation Development (DVD) has been selling Disney Vacation Club points for Disney’s Animal Kingdom Villas since February 2007. Although DVD is in the business of selling Vacation Club points to new and existing members, there are situations when it will buy back or otherwise reacquire some of those deeds and points.
Each time a deed is sold or reacquired DVD, the deed is filed with the Orange County Comptroller (OCC). By reviewing records filed with OCC, it is possible to track deeds and points that are reacquired.
As of July 31, 2011, DVD has sold about 28,767 deeds and 4,713,663 Vacation Club points for the resort. They have also reacquired 1,129 deeds representing 202,164 points.
The vast majority of reacquired Animal Kingdom Villas points -- 185,848 (91.9%) -- were due to foreclosures. Foreclosures occur when a DVC member is in default of either their mortgage or their annual maintenance fees.
There are two types of foreclosures: Judicial foreclosures, in which Florida's Ninth Circuit Court issues a Certificate of Title and effectively orders that the ownership interest be returned to DVD; and Non-judicial foreclosures, in which the DVC member agrees to return their ownership interest to DVD via a Warranty Deed in Lieu of Foreclosure. At Animal Kingdom Villas 80,762 points were reacquired through judicial foreclosures and 105,086 were reacquired through non-judicial foreclosures.
The remaining points -- 16,316 (8.1%) -- were reacquired by DVD for different reasons. Included in this category were deeds that DVD reacquired when it exercised its Right of First Refusal (ROFR) on deeds being resold on the secondary market. Also included in this category were deeds that were bought back by DVD because of apparent errors in the original deeds, such as how the deed was titled or which Use Year was assigned. The deeds reacquired in this category have a Warranty Deed filed with OCC to document the change of ownership to DVD.
The 202,164 points reacquired by DVD represent 4.29% of the points sold at AKV through July 31, 2011. By comparison, DVD has reacquired far fewer points at Bay Lake Tower at Disney’s Contemporary Resort. As of July 31, 2011, DVD has reacquired only 38,367 (0.74%) of the points it has sold at Bay Lake Tower.
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As shown in the chart above DVD began reacquiring Animal Kingdom Villas deeds in February 2008, about 12 months after sales began. Only 5,292 points were reacquired in 2008. But, as time goes on, more opportunities arise for owners to default on their loans or their annual maintenance fees. Thus, the number of foreclosures has also risen. In 2009, the number of reacquired points jumped to 43,107 points, and in 2010 it rose to 91,108 points. Through July 31, 2011, 62,657 points have been reacquired in 2011.
