Loan Setup

Resort

Points

Contract Price

Loan Amount

Rates

Borrower Rate?The total interest rate the borrower pays. This includes the lender's return plus the service fee.

Service Fee?The loan servicer's cut. This is deducted from the borrower rate before paying the lender. Example: 14% borrower rate - 2% service fee = 12% to lender.

Lender Rate?What the lender actually earns. This is the borrower rate minus the service fee. This is the lender's return on the loan.

Term?How long the loan lasts in years. Shorter terms = faster payoff and less risk, but higher monthly payments.

Foreclosure Cost?Legal fees to foreclose on the timeshare deed and take possession of the contract from the defaulting borrower.

Scenario

Market Drift?How much the DVC resale market moves per year. Negative means contracts lose value over time. Positive means appreciation.-3.0%/yr

Walk-Away Floor?The minimum dollar amount the borrower would pocket after selling the contract and paying off the loan, commission, and estoppel. Once they can walk away with at least this much cash, they'd sell rather than let the lender foreclose.

Sale Costs

Commission?Real estate broker commission to resell the contract after foreclosure. Standard DVC resale commission is 6.9%.

Broker waives commission to protect lender?When checked, the broker will forgo their commission on any month where the lender would lose money. Commission stays full on months where the lender is already protected.

Estoppel Fee?Disney's mandatory admin fee required for every DVC resale transfer. Currently $150.

	Day 1 (Closing)	Default Day
RVC Appraisal
Loan Balance
Selling Costs?Commission + Disney Estoppel + Foreclosure Legal. These reduce the net proceeds when the lender resells the contract.
Net Proceeds
Lender Cushion
Payments Collected
Lender Net Result
Return

Lender Exposure Window

The red zone is when the borrower is underwater — if they default, the lender loses money. The green zone is when the borrower has enough equity to sell and walk away with cash. No rational borrower would default once they're in the green.

Default Month Mo 19 of 120 (Yr 1.6)

Drag to simulate when the borrower stops paying. The table above updates to show that month's numbers.

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