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Help me get out of Orange Lake Contract

NicW

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I've just begun the process of learning EVERYTHING about timeshares, specifically HIVC. I've never owned one, so I'm starting from zero, trying to learn all that I can. My husband and MIL purchased at Orange Lake in 1999 and they no longer want to own it. My MIL has been paying for it and using it without input from DH for at least 15 years. She was told (she says by someone with HIVC) that if she didn't want it any longer to just stop paying and they'll reposes it. DH received a bill earlier this month for 2021, 2022, and 2023, plus late fees. It was a total shock to us, since she hadn't kept us in the loop of what her plan was. As we now understand it, we have to pay all 3 of these years of maintenance fees, membership fees, and taxes and once those are paid we can use the Horizon program and pay them $1200 to give the property back and no longer have any responsibility for it.

Is this our only option? Is this the best option?

I know that when they purchased it, it was considered a mortgage for a specific unit for a specific week. I understand it now to be points. I can't figure out when it changed or if they signed something agreeing to that. If they didn't, is that some sort of breech that could get us an out on the contract?

I've been searching the web and reading as many threads in this forum trying to learn more. Anything you can share is greatly appreciated.
 

bnoble

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At this point I would probably ignore it. It will eventually be foreclosed. There may or may not be a ding on his credit but probably not so bad as to justify what is probably going to be mid-four figures to make it current and pay for disposal.

But those are your options: make it current and pay to dispose of it, or ignore it. There is no third option.
 

NicW

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At this point I would probably ignore it. It will eventually be foreclosed. There may or may not be a ding on his credit but probably not so bad as to justify what is probably going to be mid-four figures to make it current and pay for disposal.

But those are your options: make it current and pay to dispose of it, or ignore it. There is no third option.
Thanks for this. DH and MIL are both concerned about the credit ding, but we can't figure out how big of a ding it would be. DH and I have outstanding credit currently.

We're currently trying to negotiate away the late fees. If we can, DH is considering paying for the 3 years (it seems this will be $3,500-$5,000 total), then trying to use any points we can by the summer, then working with Horizons (another $1200) to give it back and be done with it before 2024 is due.
Does this seem like the best plan, if DH and MIL don't want the credit ding? Will we be able to secure reservations to actually use the points between Jan and July (again - I'm new to this and don't even know how the reservations process works. Are there extra fees to make reservations???)

I see where some points seem to be more valuable (I see a couple of threads about ebay sales on good deals recently). Might our situation be valuable to someone? If we were to sell it - would we still need to pay all the back due amounts plus the amount to Horizons to transfer the deed?
 

Passepartout

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I assume it's (the mortgage) is fully paid off, and what remains is maintenance & internal 'club' membership. I'd simply ignore them. The only 'teeth' they have is to cut off your (his) use, and that's what you want anyway. I don't believe they can file a bad credit report due to delinquent MFs. Even if they do, you are entitled to file a mitigating letter with your credit report, and I can't see any potential lender holding delinquent timeshare MFs disqualifying for any loan you may be seeking later. Paying the delinquency and fees is just throwing good money after bad. Ignore their letters and block their calls. Eventually, they'll foreclose and re-sell the interval to someone else.

Good Luck!

Jim
 

bnoble

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DH is considering paying for the 3 years (it seems this will be $3,500-$5,000 total), then trying to use any points we can by the summer, then working with Horizons (another $1200) to give it back and be done with it before 2024 is due.
When you total all of this up, it is going to be about $5K and up just to get out of it. How much will you sacrifice in e.g. a higher interest rate in the next few years if his credit score drops a bit? Even if your husband's credit does take a ding, yours won't, and you can apply for any loans only in your name if you need to, avoiding the imact of a slightly reduced credit rating. Does your MIL imagine ever needing to borrow money again for anything? If not, that further argues for just ignoring this and taking a (what may be minor) credit it.

The alternative is to bring it current and then plan to use it for many years. That is still probably not the most cost-efficient idea in the world, but the value in timeshare is in using it to take great vacations. This could be that thing for you! The purchase price is already gone, and given that it is converted and in the points system, that may be the best way to make lemonade out of these lemons.

Might our situation be valuable to someone? If we were to sell it - would we still need to pay all the back due amounts plus the amount to Horizons to transfer the deed?
Probably not. Orange Lake is one of the (majority of) HIVC resorts at which the points do not carry their full benefits if you sell them to someone else. (I don't know the details on this, but others probably do.) You would not need to pay the Horizons amount, but you would need to make it current. There is no guarantee you would be able to quickly dispose of it, and that might put you on the hook for one extra year's worth of maintenance fees.

I don't believe they can file a bad credit report due to delinquent MFs.
They can. But, they might not bother.

OP: Take a look at these links. Florida is a non-deficiency/non-judicial foreclosure state, and that might make the foreclosure process faster and simpler for you if that's the route you decide to go: https://tugbbs.com/forums/threads/links-to-official-state-timeshare-laws-and-guides-manuals.298554/
 

rickandcindy23

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I would walk away in a heartbeat. It's not worth anything to keep it and pay past due fees.
 

kanerf

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Yes, Orange Lake points can only be used at Orange Lake if sold to someone else. The original owner can use the points anywhere within the system subject to the reservation time restrictions.
 
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