Orange Lake Timeshare - Lien

[trafficzombie]

I was hoping someone could give me some advice please.

Around 20 years ago a friend and I bought a timeshare with Orange Lake in Orlando (worse decision of my life) and to be honest we haven't used it for about 10 years but continued to pay fees. We bought it in our mid 20's and naturally things have changed in our personal lives (marriage, kids, work, illness, etc)

Due to issues around the pandemic the maintenance fees haven't been paid for 2-3 years. And now OL have sent a letter of notice of intent to file a lien.

I have not got a clue what this means for us. I've read so much online and getting confused what will happen. It is just maintenance fees. The timeshare is fully paid and has no mortgage.

One thing to point out is we are based in the UK so I'm not sure what they can do if anything.

Any advice would be amazing.

 

[kanerf]

They really can't do much. You should ask if you can give back the timeshare. I believe HICV has such a program.

 

[tschwa2]

HICV charges $1200 plus you have to be up to date with all MF's. Being from the UK, I might tell them that you have no intention of paying them anymore and they can foreclose or you could do a deedback in lieu of foreclosure, their chose.

 

[trafficzombie]

HICV charges $1200 plus you have to be up to date with all MF's. Being from the UK, I might tell them that you have no intention of paying them anymore and they can foreclose or you could do a deedback in lieu of foreclosure, their chose.

With the last two options. How does that work.

 

[tschwa2]

With the last two options. How does that work.

They are all up to the resort and nothing that you can initiate other than to suggest it to them. Foreclosure is a a legal means for them to get the deed out of your name so they can resell it due to your payment default. There are expenses involved to the resort to foreclose. A deed in lieu of Foreclosure is also a process initiated by the resort and if they offer it and you cooperate it saves them a little time and money. If they make the offer and you accept they will send you a deed for you to sign. You would have to have the signature notarized. You send it back and the deed is back in the name of the developer.

 

[elaine]

Orange lakes (Florida) 1st tries nonjudicial foreclosure. You will get notice and if you do not object, they will take back the timeshares via Florida law. Your credit gets a hit (maybe). You’ll get a few demand letters, etc. do NOT object to anything. And some say do not try to make alternative deals with them (like take back my deed). If you object at all, then nonjudicial is not available. I also don’t know if it’s allowed for nonUSA residents.
If nonjudicial is not available, OL usually then does judicial foreclosure (in rem) which means only taking the land (timeshare) and not seeking any deficiency debt. This is what occurred when my relative passed and thus they could not send valid notice to him. You’ll get notice of court date-we did nothing (other than call thecqtty on the papers and confirm that we just do nothing). The process took 2-3 years and then we got notice from the court that it was finalized.

 

[trafficzombie]

Orange lakes (Florida) 1st tries nonjudicial foreclosure. You will get notice and if you do not object, they will take back the timeshares via Florida law. Your credit gets a hit (maybe). You’ll get a few demand letters, etc. do NOT object to anything. And some say do not try to make alternative deals with them (like take back my deed). If you object at all, then nonjudicial is not available. I also don’t know if it’s allowed for nonUSA residents.
If nonjudicial is not available, OL usually then does judicial foreclosure (in rem) which means only taking the land (timeshare) and not seeking any deficiency debt. This is what occurred when my relative passed and thus they could not send valid notice to him. You’ll get notice of court date-we did nothing (other than call thecqtty on the papers and confirm that we just do nothing). The process took 2-3 years and then we got notice from the court that it was finaliz

 

[trafficzombie]

Orange lakes (Florida) 1st tries nonjudicial foreclosure. You will get notice and if you do not object, they will take back the timeshares via Florida law. Your credit gets a hit (maybe). You’ll get a few demand letters, etc. do NOT object to anything. And some say do not try to make alternative deals with them (like take back my deed). If you object at all, then nonjudicial is not available. I also don’t know if it’s allowed for nonUSA residents.
If nonjudicial is not available, OL usually then does judicial foreclosure (in rem) which means only taking the land (timeshare) and not seeking any deficiency debt. This is what occurred when my relative passed and thus they could not send valid notice to him. You’ll get notice of court date-we did nothing (other than call thecqtty on the papers and confirm that we just do nothing). The process took 2-3 years and then we got notice from the court that it was finalized.

Thankyou. It appears I've received the nonjudicial foreclosure as they have given me until a certain fate to pay the balance or they will proceed to file a lien.

 

[elaine]

since annual fees have not been paid for 2 years, I’d doubt you can even give it away and OL is unlikely to “take back” the deed absent nonjudicial foreclosure. Only you can decide what is best for you. But, nonjudicial foreclosure was designed as streamline way for developer to take back timeshare while protecting timeshare consumers (so they only get TS back-No back fees, attorney/court fees, etc.). You’ll get a few more letters and official court notice-there is standard language they use-it’s not personal. They process hundreds each year. People default for finance, divorce, illness, age, etc.
Based on a survey on tug in the past, it seems less likely that timeshare developer will even notify credit agencies when it does nonjudicial route when only annual fees were owed. If you still owe a loan, there is higher chance. If that matters to you.
I don’t know if they’d bother with UK citizens, or are even allowed, or how UK credit law works.

 

[dysonrichard801]

Since you are based in the UK, it's important to note that US laws regarding liens and timeshares may differ from those in the UK. It may be helpful to consult with a US-based attorney who specializes in timeshare law to better understand your rights and options. In general, it's important to communicate with Orange Lake about your situation and try to work out a payment plan for the unpaid maintenance fees. It may also be helpful to explore options for selling or transferring ownership of the timeshare if you are no longer able to use it or afford the fees.

 

[elaine]

I’d imagine with the outstanding debt, the TS is worthless on resale/give away market. I would be cautious about asking for a payment plan if they are interested in nonjudical foreclosure. This could be counter-productive and even possibly negate that process.

 

[dioxide45]

The lien is the first step in the foreclosure process. Just one of the necessary steps they must take. There are certain timeframes and milestones that need to be met during the foreclosure process on real estate deeds. YOu might want to talk to them and ask if they will take a deed in lieu. That would be the easiest method to get out. If they don't go that rout, you can let them foreclose and also be out. Being in the UK, there is little chance of a hit on your credit.

 

[trafficzombie]

The lien is the first step in the foreclosure process. Just one of the necessary steps they must take. There are certain timeframes and milestones that need to be met during the foreclosure process on real estate deeds. YOu might want to talk to them and ask if they will take a deed in lieu. That would be the easiest method to get out. If they don't go that rout, you can let them foreclose and also be out. Being in the UK, there is little chance of a hit on your credit.

Thank you, I have contacted them to discuss this, but knowing HIVC I won't be surprised if they ignore me, they are one of the worst organisations I have ever dealt with, personally or professionally.
With regards to letting them foreclose, I think you are right about my credit rating being hit as I am in the UK, I don't think none UK companies affect the rating, I am however unsure of what will happen if they go to foreclose, do I just leave it after speaking to them and let them foreclose, will I need to do anything, it is a little unclear as to what the process is and what I will personally need to do

 

[dioxide45]

Thank you, I have contacted them to discuss this, but knowing HIVC I won't be surprised if they ignore me, they are one of the worst organisations I have ever dealt with, personally or professionally.
With regards to letting them foreclose, I think you are right about my credit rating being hit as I am in the UK, I don't think none UK companies affect the rating, I am however unsure of what will happen if they go to foreclose, do I just leave it after speaking to them and let them foreclose, will I need to do anything, it is a little unclear as to what the process is and what I will personally need to do

You would do nothing further. They will send additional required notices related to the foreclosure process. Just let them do their thing. At this point I don't think it matters if it is judicial or non judicial foreclosure for you. The process will play out and at some point the deed will be changed out of your name. You already aren't paying the fees, so nothing really changes.

The problem with seeking this type of advice here is that most people here aren't in the same situation. They are paying their fees and aren't going through the foreclosure process and don't have first hand knowledge. People that have gone through a timeshare foreclosure usually don't come back to provide advice to others. None of the people (including me) are not providing legal advice and it is rare that an attorney will jump into the discussion as they probably don't practice law in Florida and also don't want to give out legal advice online. Just how it goes.

 

[elaine]

We did go thru it with OLCC for deceased owner. I can’t say that it will be the exact same for you in UK. But that was how it worked for OLCC in FL 5 years ago.

 

[pissedoffguy]

Orange lakes (Florida) 1st tries nonjudicial foreclosure. You will get notice and if you do not object, they will take back the timeshares via Florida law. Your credit gets a hit (maybe). You’ll get a few demand letters, etc. do NOT object to anything. And some say do not try to make alternative deals with them (like take back my deed). If you object at all, then nonjudicial is not available. I also don’t know if it’s allowed for nonUSA residents.
If nonjudicial is not available, OL usually then does judicial foreclosure (in rem) which means only taking the land (timeshare) and not seeking any deficiency debt. This is what occurred when my relative passed and thus they could not send valid notice to him. You’ll get notice of court date-we did nothing (other than call thecqtty on the papers and confirm that we just do nothing). The process took 2-3 years and then we got notice from the court that it was finalized.

Mind if I PM you? My elderly parents are in the same situation with this company except they are US residents/citizens.

 

[elaine]

I do not have any additional information other than what you can find with searching on TUG (and otherwise online) that describe the nonjudicial foreclosure process for timeshares in Florida. When someone stopping paying annual fees (and/or monies owed on any loan), they will 1st get a reminder, then delinquency letter, maybe another letter or two, then a notice that they cannot use the property or their points, then possibly a collections call/letters. After (I'd guess) 18-24 months, Orange Lakes will start the nonjudicial foreclosure process, which is an abbreviated process. There will likely be an attorney on the papers, whom you could call and ask general questions. But, I believe they just sign the papers and DO NOT add anything, explain, deny, etc.
My case did not involve nonjudicial foreclosure, as my relative was deceased and could not be served or sign the paperwork. Best Regards, Elaine

 

[pissedoffguy]

I do not have any additional information other than what you can find with searching on TUG (and otherwise online) that describe the nonjudicial foreclosure process for timeshares in Florida. When someone stopping paying annual fees (and/or monies owed on any loan), they will 1st get a reminder, then delinquency letter, maybe another letter or two, then a notice that they cannot use the property or their points, then possibly a collections call/letters. After (I'd guess) 18-24 months, Orange Lakes will start the nonjudicial foreclosure process, which is an abbreviated process. There will likely be an attorney on the papers, whom you could call and ask general questions. But, I believe they just sign the papers and DO NOT add anything, explain, deny, etc.
My case did not involve nonjudicial foreclosure, as my relative was deceased and could not be served or sign the paperwork. Best Regards, Elaine

Thanks for the response!

My parents didn't pay their maintenance fees for 2 years (this will be the third year). They got the reminder and, just a week ago, got a Notification of Intent to File Lien (against the timeshare). It seems like it's just a template letter with their due date and balance added manually. Do you remember receiving this document?

I'm just trying to determine if this is more likely to be the start of a judicial or nonjudicial process.

 

[dioxide45]

This is just the first step in a longer process. Filing a lien however doesn't necessary mean foreclosure. You can pay the lien off and all further collection action stops. I don't think you can tell from this letter alone if they opt to go judicial or non-judicial.

 

[CalGalTraveler]

I am not a lawyer but my understanding is the default is non-judicial and not a choice unless the owner OBJECTS to the foreclosure. Here is the interpretation that was developed by a lawyer for TUG. (but not legal advice.)

Perhaps HICV thought from the scam lawyer that your parents were objecting. Perhaps contact HICV in writing and letting them know that your parents DO NOT OBJECT to foreclosure on the timeshare and expect that this will be a non-judicial action for them to retake the timeshare.

Florida – FL, inaction or non-objection results in estate, anti-deficiency foreclosure, but objection leads to judicial, deficiency action: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0721/0721.html
https://www.flrules.org/gateway/ChapterHome.asp?Chapter=61B-37

 

[elaine]

I do not recall the specifics. It was almost 10 years ago. If it’s a timeshare in Florida, I seem to recall that they might be required to pursue nonjudicial1st. I don’t know what happens if someone on behalf of the owner contacts orange lakes-maybe this was viewed as objecting. I concur with above to contact and ask for nonjudicial options.

 

[dioxide45]

If it’s a timeshare in Florida, I seem to recall that they might be required to pursue nonjudicial1st. However, 10 years ago Orange Lakes did the judicial foreclosures in batches as in rem, meaning they only seek to get the deed to the timeshare back.

I believe the Florida law related to non-judicial foreclosure came in to place in 2015 along with other updates to the statues around timeshares and vacation clubs?

 

[pissedoffguy]

This is just the first step in a longer process. Filing a lien however doesn't necessary mean foreclosure. You can pay the lien off and all further collection action stops. I don't think you can tell from this letter alone if they opt to go judicial or non-judicial.

Thanks for the response. This is the conclusion I came to as well.

I am not a lawyer but my understanding is the default is non-judicial and not a choice unless the owner OBJECTS to the foreclosure. Here is the interpretation that was developed by a lawyer for TUG. (but not legal advice.)

Perhaps HICV thought from the scam lawyer that your parents were objecting. Perhaps contact HICV in writing and letting them know that your parents DO NOT OBJECT to foreclosure on the timeshare and expect that this will be a non-judicial action for them to retake the timeshare.

Florida – FL, inaction or non-objection results in estate, anti-deficiency foreclosure, but objection leads to judicial, deficiency action: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0721/0721.html
https://www.flrules.org/gateway/ChapterHome.asp?Chapter=61B-37

I do not recall the specifics. It was almost 10 years ago. If it’s a timeshare in Florida, I seem to recall that they might be required to pursue nonjudicial1st. I don’t know what happens if someone on behalf of the owner contacts orange lakes-maybe this was viewed as objecting. I concur with above to contact and ask for nonjudicial options.

Since I made this post, I've been reading the Florida statutes in great depth. I found this one:

(5). If the trustee receives the written objection from the obligor, the trustee may not proceed with the trustee foreclosure procedure as to the default specified in the notice of default and intent to foreclose under subsection (5), and the lienholder may proceed thereafter only with a judicial foreclosure action as to that specified default.

This indicates, to me, that if they were planning on going nonjudicial, they would need something in writing that specifically states that the obligor doesn't want to go to nonjudicial foreclosure.

I talked to my mom about contacting them, but she's just done with all of this. This timeshare has been a burden for many many years and she's had extremely negative experiences with HICV. She doesn't want to try with them anymore, doesn't want to try with lawyers now (because she thinks all of the lawyers in this industry are scammers now - probably right), and just wants to let the chips fall where they may.

Thanks again for all of the helpful and well-thought-out response!

 

[elaine]

Good luck. If no one has objected, then I’d think it’d go nonjudicial foreclosure. This is a quicker, abbreviated procedure, which gives the developer the ability to get the timeshare back without involving the courts and the prior owners usually do not owe anything else.
But, as Florida is an anti-deficiency state, I do not know that regular foreclosure via court action is any worst for the obligor-if it’s an in rem action, and the end result is the developer getting the timeshare back.

 

[pissedoffguy]

Just an update: my parents got a letter in the mail stating that they will start adding more charges now and that, if they don't pay, they will seek other means to collect the money "owed". Not sure if this is just them trying to scare them or indicating that they will try to sue them and get a judgment.