The Orlando Sentinel is reporting that Disney has begun using a new system of handling foreclosures of its Disney Vacation Club contracts. Nonjudicial foreclosures allow trustees of the lienholders (Disney) to act as auctioneers. This allows the auctions to take place at a law firm that works with Disney instead of online through Orange County’s clerk of court.
Hundreds of Disney Vacation Club deeds go into foreclosure every year. While Disney typically wins the deeds back, others have won them at times as well. It would seem that this new process would increase the chances of Disney winning the deeds back.
The Florida Legislature in 2010 passed a law allowing nonjudicial foreclosures for time shares. Florida joined about 30 other states that allow the process, according to time-share trade group American Resort Development Association.
Disney has said that third-party bidders continue to participate in the process and that some of them have won deeds.