Waiting for foreclosure

[NicW]

My husband and MIL had bought a timeshare at Orange Lake. Without our realizing MiL stopped paying for years. We’ve been getting past due invoices for quite some time now and have planned to wait it out for it to be foreclosed on since we couldn’t negotiate anything with the company, and the owed fees were not worth paying (and we don’t want to keep it anymore).
I just got a notification that I have certified mail from Holiday Inn to get from the post office. I’m wondering if I should pick it up or ignore it. Any feedback or ideas? I’m not sure what it is.

 

[LeslieDet]

Well, does your H care about his credit? He's a co-owner; a foreclosure is going to impact his credit rating and last on his credit report for 7 years. Did you see if they'd take a deed in lieu?

 

[NicW]

Well, does your H care about his credit? He's a co-owner; a foreclosure is going to impact his credit rating and last on his credit report for 7 years. Did you see if they'd take a deed in lieu?

He does care about his credit. When we read in the forums before making the decision to let it go to foreclosure we decided to take the risk of a potential credit hit.

At the point we found out it had gone unpaid it was 3 years worth due and we couldn’t justify paying that much and paying their fees to sell it back to them. It was outrageous and not worth the costs.

 

[LeslieDet]

He does care about his credit. When we read in the forums before making the decision to let it go to foreclosure we decided to take the risk of a potential credit hit.

At the point we found out it had gone unpaid it was 3 years worth due and we couldn’t justify paying that much and paying their fees to sell it back to them. It was outrageous and not worth the costs.

Only you and your H can decide if he wants to try and mitigate the damage of a foreclosure. IMHO, avoiding picking up the mail is not going to do anything beneficial for you. I'd assume you would want to know what was actually happening instead of waiting to see it on an Equifax report.

 

[DrQ]

Have DH run his CR's on the big 3. If they are reporting it in collections, that will be almost as bad as a foreclosure.

Is the Timeshare in FL? Do you reside in the location of the Timeshare or FL?

 

[Snazzylass]

He does care about his credit. When we read in the forums before making the decision to let it go to foreclosure we decided to take the risk of a potential credit hit.

At the point we found out it had gone unpaid it was 3 years worth due and we couldn’t justify paying that much and paying their fees to sell it back to them. It was outrageous and not worth the costs.

Good job! Keep reading the forums!

I'm not so sure there will be a foreclosure. I get that it's an attempt to collect a debt. So, yes, do get copies of all three reports. In addition to your credit, do you have any plans to get a mortgage any time soon?

 

[DrQ]

Also, is this a paid off timeshare, or is there a mortgage too?

 

[NicW]

Have DH run his CR's on the big 3. If they are reporting it in collections, that will be almost as bad as a foreclosure.

Is the Timeshare in FL? Do you reside in the location of the Timeshare or FL?

The timeshare is in FL. We live in NY.

 

[NicW]

Good job! Keep reading the forums!

I'm not so sure there will be a foreclosure. I get that it's an attempt to collect a debt. So, yes, do get copies of all three reports. In addition to your credit, do you have any plans to get a mortgage any time soon?

We don't plan to need to take any loans soon. If anything, it would be a car loan, but not for a year (if not 2-3 years).

 

[NicW]

Also, is this a paid off timeshare, or is there a mortgage too?

The timeshare is paid off. No mortgage remaining.

 

[NicW]

The Certified Letter we received from Holiday Inn Club Vacations says that a lien was recorded in Orange County, FL. It was filed for unpaid assessments of common expenses and unpaid ad valorem property taxes. Balance due is $7100. If it isn't paid within 45 days, "this letter will serve as the Association's formal notice of its intention to foreclose its lien through the filing of a foreclosure lawsuit against you."

 

[DrQ]

The Certified Letter we received from Holiday Inn Club Vacations says that a lien was recorded in Orange County, FL. It was filed for unpaid assessments of common expenses and unpaid ad valorem property taxes. Balance due is $7100. If it isn't paid within 45 days, "this letter will serve as the Association's formal notice of its intention to foreclose its lien through the filing of a foreclosure lawsuit against you."

I am not a lawyer, nor am I giving legal advice, but if it were me, I would contact my family lawyer to recommend a consumer debt attorney to protect me from a judgment. If they just take the deed, that is a win.

 

[NicW]

I am not a lawyer, nor am I giving legal advice, but if it were me, I would contact my family lawyer to recommend a consumer debt attorney to protect me from a judgment. If they just take the deed, that is a win.

Thank you for your help. "Consumer debt attorney to protect me from a judgment" - sounds like a foreign language to me. DH did try to speak with the attorney we worked with when we got the mortgage for our home. He was not helpful.

 

[DrQ]

Thank you for your help. "Consumer debt attorney to protect me from a judgment" - sounds like a foreign language to me. DH did try to speak with the attorney we worked with when we got the mortgage for our home. He was not helpful.

You need to get a trusted attorney to recommend someone who specializes in defending against debt collection. DO NOT search on the internet. Debt relief scams are as prevalent as timeshare relief scams. There are legitimate lawyers that defend against collection, but they would be better known within the profession. I would start with someone in general practice. You say "timeshare" to a real estate attorney, and they cover their ears and say: "LA LA LA LA LA LA LA"

 

[NicW]

You need to get a trusted attorney to recommend someone who specializes in defending against debt collection. DO NOT search on the internet. Debt relief scams are as prevalent as timeshare relief scams. There are legitimate lawyers that defend against collection, but they would be better known within the profession. I would start with someone in general practice. You say "timeshare" to a real estate attorney, and they cover their ears and say: "LA LA LA LA LA LA LA"

LOL. Thank you. I've been googling a bit to understand better, but would be sure to get a referral if we contact a consumer debt attorney.

What are you thinking that the lawyer would do for us?

We've researched as much as we can before deciding to let this go into default. Best we could tell is that the most likely scenario was that as long as we didn't dispute anything and just continued to essentially ignore them that they'd eventually just foreclose on it and take it back. And that DH and his mother (the property "owners") would potentially take a credit hit. Is there another scenario you've seen and think that we should at least be prepared for?

DH and I have always had outstanding credit and are very financially responsible. So the idea of just letting something go unpaid and it impacting our credit goes against everything we do. My MIL inquired about getting out the timeshare before she stopped paying a few years ago. I now know that at that time they had a FREE give back program we could have used, but no one told her about that when she inquired. As I recall, it is now thousands of dollars to just give the property back, but you have to be current with your fees. We were NOT going to give them approx $10,000 to take back the property and get nothing in return. Especially when it would have been free if they were upfront about it when she first asked!

 

[LeslieDet]

I am not a lawyer, nor am I giving legal advice, but if it were me, I would contact my family lawyer to recommend a consumer debt attorney to protect me from a judgment. If they just take the deed, that is a win.

The way someone is “protected from a judgment” is by paying their legal obligations. The HOA has done absolutely nothing wrong. When the HOA is forced down the path of foreclosure then this is how it happens. No one can “protect” the person being foreclosed against unless it’s someone who steps in and pays off the debt.

So many folks on TUG always say “just let them foreclose”. Well, that’s the process. This is what happens. So, instead of wasting money trying to find a way to avoid the legal process, why not simply use that money towards reducing the debt? The HOA doesn’t create the laws. It just has to follow them. The HOA isn’t the “bad guy” here. The last thing the HOA wants to do is spend money foreclosing. Because that only results in all owners having higher maintenance fees to cover the legal costs required when other owners fail to pay the maintenance fees.

 

[LeslieDet]

You need to get a trusted attorney to recommend someone who specializes in defending against debt collection. DO NOT search on the internet. Debt relief scams are as prevalent as timeshare relief scams. There are legitimate lawyers that defend against collection, but they would be better known within the profession. I would start with someone in general practice. You say "timeshare" to a real estate attorney, and they cover their ears and say: "LA LA LA LA LA LA LA"

You’re ignoring the fact that it’s a valid debt.

 

[LeslieDet]

The Certified Letter we received from Holiday Inn Club Vacations says that a lien was recorded in Orange County, FL. It was filed for unpaid assessments of common expenses and unpaid ad valorem property taxes. Balance due is $7100. If it isn't paid within 45 days, "this letter will serve as the Association's formal notice of its intention to foreclose its lien through the filing of a foreclosure lawsuit against you."

Basically, you played a game of chicken with them and you lost. Yes, it’s insanely frustrating your MIL stopped paying the bills and didn’t tell your H, but your H KNEW he was the co-owner of this property. Being an owner comes with legal obligations. When those obligations are ignored, legal process results. That’s how the HOA must proceed. Now’s your window of opportunity to resolve the debt and avoid the legal consequences of foreclosure. It will stay on your H’s credit report for 7 years.

 

[NicW]

The way someone is “protected from a judgment” is by paying their legal obligations. The HOA has done absolutely nothing wrong. When the HOA is forced down the path of foreclosure then this is how it happens. No one can “protect” the person being foreclosed against unless it’s someone who steps in and pays off the debt.

So many folks on TUG always say “just let them foreclose”. Well, that’s the process. This is what happens. So, instead of wasting money trying to find a way to avoid the legal process, why not simply use that money towards reducing the debt? The HOA doesn’t create the laws. It just has to follow them. The HOA isn’t the “bad guy” here. The last thing the HOA wants to do is spend money foreclosing. Because that only results in all owners having higher maintenance fees to cover the legal costs required when other owners fail to pay the maintenance fees.

My husband and I understand that there are obligations to something that he signed up for. We tried our best to resolve this with the company once we became aware of the situation. He spoke with them multiple times and attempted to resolve it by paying for it then. But we would have had to pay $10,000 at that time to just walk away (as I recall, that was about $6000 of back fees + $4000 for their exit program). We understand it was a risk to wait for foreclosure. I'm just trying to understand what to expect and how to best handle it going forward.

To be clear. MIL spoke with someone at the company when she wanted to be done with the timeshare. She was told by them to just stop paying and wait for foreclosure. Based on my research, at that time they had a program where you could just give back your property for free. No one ever mentioned that to her. So, implying that I'm in the wrong and that the HOA is just an honest company trying to do business, isn't accurate.

 

[DrQ]

The way someone is “protected from a judgment” is by paying their legal obligations. The HOA has done absolutely nothing wrong. When the HOA is forced down the path of foreclosure then this is how it happens. No one can “protect” the person being foreclosed against unless it’s someone who steps in and pays off the debt.

So many folks on TUG always say “just let them foreclose”. Well, that’s the process. This is what happens. So, instead of wasting money trying to find a way to avoid the legal process, why not simply use that money towards reducing the debt? The HOA doesn’t create the laws. It just has to follow them. The HOA isn’t the “bad guy” here. The last thing the HOA wants to do is spend money foreclosing. Because that only results in all owners having higher maintenance fees to cover the legal costs required when other owners fail to pay the maintenance fees.

If it were me, I would MAKE them jump through EVERY hoop, DOT every i and CROSS every t. That is my legal right. I don't have to make it easy for them. If they are counting on a default judgment, then they can pound sand. If they determine the reward is not worth the work, then it is on them. I will sleep well.

 

[DrQ]

You’re ignoring the fact that it’s a valid debt.

Not until it has been adjudicated.

 

[LeslieDet]

My husband and I understand that there are obligations to something that he signed up for. We tried our best to resolve this with the company once we became aware of the situation. He spoke with them multiple times and attempted to resolve it by paying for it then. But we would have had to pay $10,000 at that time to just walk away (as I recall, that was about $6000 of back fees + $4000 for their exit program). We understand it was a risk to wait for foreclosure. I'm just trying to understand what to expect and how to best handle it going forward.

To be clear. MIL spoke with someone at the company when she wanted to be done with the timeshare. She was told by them to just stop paying and wait for foreclosure. Based on my research, at that time they had a program where you could just give back your property for free. No one ever mentioned that to her. So, implying that I'm in the wrong and that the HOA is just an honest company trying to do business, isn't accurate.

Who knows what your MIL did or who she asked? . For all you know she may have called the salesperson and never actually spoke with anyone at the HOA. All I’m saying is your H knew he was the legal owner. That comes with legal obligations. Folks on TUG seem to always say “just let them foreclose”. You acknowledge that was the approach you decided to take. The comments by another to find yourself a lawyer to protect you from the debt reflect the lack of understanding of how the legal process works.

Hopefully you can negotiate something now. Idk if you ever tried to negotiate earlier, all I know is your OP basically asked if you should bother to pick up a certified mail. So, yes, I did assume that you were just hoping to ignore the legal process that resulted from your MIL deciding to stop paying the bills on property she co-owns with your H.

Hopefully you’ll be able to negotiate a resolution. Best of luck to you.

 

[LeslieDet]

Not until it has been adjudicated.

It’s a foreclosure of a lien. The lien is the debt.

 

[LeslieDet]

He does care about his credit. When we read in the forums before making the decision to let it go to foreclosure we decided to take the risk of a potential credit hit.

At the point we found out it had gone unpaid it was 3 years worth due and we couldn’t justify paying that much and paying their fees to sell it back to them. It was outrageous and not worth the costs.

This is what I’m referring to when I said you basically decided to play a game of chicken and you lost. You knowingly took the risk this unpaid HOA debt would go to foreclosure. You said you were willing to take the risk of the credit hit.

Now that it’s going down that path, you cannot blame the HOA for pursuing the required legal steps. Hopefully you’ll be able to negotiate some resolution. Good luck.

 

[TUGBrian]

I believe the distinction is that the OP (nor anyone) id disputing the foreclosure....the dispute/fear is a judgement and or attempt to collect on said judgement. Speaking with an attorney that specializes in debt collection in your state provides you with valid legal information one can use to choose their next course of action.

in many cases the risk of judgement (or efforts to collect said judgement across state lines) is minimal at best even if the foreclosure happens as it wouldnt even be contested by the owner and Ive truly never heard of any situation where a timeshare foreclosure resulted in any monetary judgement against an owner (though im sure if someone dug hard enough they could find something somewhere), heck its even rare for a resort to go thru the foreclosure process at all in cases like this vs just threatening to do so as part of the normal default/delinquent policy. more often than not the resort simply reaches out to the owner to negotiate a voluntary surrender to avoid that added cost and time.