Why no "deed-backs?"

[Matt K.]

Can someone please explain to me why a resort like Orange Lake would not jump at the opportunity to get my (paid-off) deed back free of charge, so they could turn around and resell it? I do not understand why they are so against this.

Thank you,
Matt

 

[DeniseM]

Most timeshares in Orlando have negative value - in other words, to get rid of them, you have to give them away and pay someone to take them off your hands by paying for the transfer fee, and a year's maintenance fee.

This is mostly because Orlando is WAY overbuilt with timeshares, and there is more supply than demand. Therefore, Orange Lake would rather have you on the hook paying the maintenance fee, than to have to spend their money to resell the unit.

 

[Matt K.]

Thank you. Any thoughts on how we might "get out" of our paid-off week at Orange Lake?

 

[DeniseM]

How to give your timeshare away on TUG: https://www.tugbbs.com/forums/index.php?threads/how-can-i-give-away-my-timeshare-on-tug.132509/

 

[davidvel]

Most timeshares in Orlando have negative value - in other words, to get rid of them, you have to give them away and pay someone to take them off your hands by paying for the transfer fee, and a year's maintenance fee.

This is mostly because Orlando is WAY overbuilt with timeshares, and there is more supply than demand. Therefore, Orange Lake would rather have you on the hook paying the maintenance fee, than to have to spend their money to resell the unit.

All true, but it doesn't answer the question asked.

 

[Panina]

All true, but it doesn't answer the question asked.

I think she is right, they want people paying maintenance fees. They probably have more then enough timeshares to sell. If they took back everyone’s timeshare who no longer wanted it, they would have to pay the maintenance fee on those timeshares. Their profit margin probably does better by not taking them back.

 

[DeniseM]

The last line answers the question: Therefore, Orange Lake would rather have you on the hook paying the maintenance fee, than to have to spend their money to resell the unit.

I also suspect that they have their hands full just trying to resale foreclosures, and other units that they are forced to take back.

 

[davidvel]

The last line answers the question: Therefore, Orange Lake would rather have you on the hook paying the maintenance fee, than to have to spend their money to resell the unit.

I also suspect that they have their hands full just trying to resale foreclosures, and other units that they are forced to take back.

Sorry, the last line didn't show up on my screen.

So Orange Lake isn't actively selling? (I know nothing about this resort.) It is an interesting question as to places where they are actively selling.

 

[LannyPC]

So Orange Lake isn't actively selling? (I know nothing about this resort.

I'm pretty sure they are actively selling. As Denise said, they probably have their hands full with foreclosures to resell. They have to try to resell to get more fees-paying owners in there.

 

[LannyPC]

Thank you. Any thoughts on how we might "get out" of our paid-off week at Orange Lake?

In addition to Denise's suggestion about using the free giveaway method here on TUG, you could contact the resort's Homeowners' Association and give them an ultimatum: Take the unit back amicably (perhaps with you offering to pay the next MF and closing costs) or go through the rigours and costs of foreclosure because you are not paying another dime in MFs.

If you say it clearly, they might acquiesce realizing that it would be cheaper and easier for them to take it back rather than to foreclose.

But most TUGgers here would strongly advise not to use any of these supposed rescue/relief/release/escape companies, law firms, charities, etc., that promise to get you out of your timeshare. They will make a bunch of promises, charge you an upfront fee in the thousands, and then may or may not do as promised.

 

[alexanderwang]

Orange Lake does deed back [redacted], no closing costs. just keep the account current and they will process your deed back. you need to request to speak with either capital management for a warranty deed back or the general club line

 

[theo]

Can someone please explain to me why a resort like Orange Lake would not jump at the opportunity to get my (paid-off) deed back free of charge, so they could turn around and resell it? I do not understand why they are so against this.

Truth to tell, most timeshares (particularly independent, non-"chain" properties) will not accept "deedbacks". The bottom line is that HOA-owned weeks do not pay maintenance fees and maintenance fees are what keep a place up and running.

It is noteworthy that Wyndham (and more recently, DRI) will now accept deedbacks, but when you think about this, it's the "deep pockets" of the underlying corporations that make that option even possible in the first place. Independent non-"chain" properties simply cannot afford to absorb continuous financial shortfalls, unless they have an active (and successful) resale program to turn deedbacks into fee-paying owned weeks, which is more easily said than done.

 

[jwalk03]

Orange Lake does deed back (redacted) , no closing costs. just keep the account current and they will process your deed back. you need to request to speak with either capital management for a warranty deed back or the general club line

This comment seems pretty unnecessary.

OP- please don't let this comment dissuade you from asking questions and seeking advise here. MOST are very knowledgeable and willing to help!

 

[theo]

This comment seems pretty unnecessary.

OP- please don't let this comment dissuade you from asking questions and seeking advise here. MOST are very knowledgeable and willing to help!

I agree. The unnecessary remark originates from someone who has been on TUG now for all of one day, perhaps never to be heard from again.
Accordingly, I'd take that "input" with a grain of salt anyhow. YMMV.

 

[Zinjanthropus]

Orange Lake does deed back (redacted) , no closing costs. just keep the account current and they will process your deed back. you need to request to speak with either capital management for a warranty deed back or the general club line

Back in 08, we deeded back our Sheraton/Starwood Desert Oasis but at the same time, Orange Lake wouldn't accept a deed back. We had maint. fees paid and everything. I don't know how you did it, but it wouldn't work for us. We spoke with everyone we could. We still own there sooo...

 

[tschwa2]

People on the HICV facebook page seem to insist that Orange Lake will take back any fully paid up to date account. In fact multiple owners there suggest you simply do a quit claim to the developer. I have mentioned that isn't acceptable and the developer like anyone else for a valid transfer you have to have acceptance by the transferee.

Another owner received the answer that deed backs can be done but there is a case by case decision. I wouldn't give up with the first no and would continue to contact various departments to see if you can get a yes from anyone.

 

[bogey21]

How times change. About 15 years ago I had a deal with a Resort (who I will not name) to gobble up all their Weeks offered for nothing or next to nothing on Ebay. They paid me $150 over my cost for each and resold them for thousands. I don't have the records anymore but bet I did this 20-25 times.

George

 

[alexanderwang]

Back in 08, we deeded back our Sheraton/Starwood Desert Oasis but at the same time, Orange Lake wouldn't accept a deed back. We had maint. fees paid and everything. I don't know how you did it, but it wouldn't work for us. We spoke with everyone we could. We still own there sooo...

If you want to request a warranty deed go ahead and call the club and request to speak with capital management about it or just call capital management directly if you have their phone number. simply tell them you want to request for a warranty deed

 

[Zinjanthropus]

If you want to request a warranty deed go ahead and call the club and request to speak with capital management about it or just call capital management directly if you have their phone number. simply tell them you want to request for a warranty deed

Ok that's good to know, but we're good now. Like I said we tried through many channels back in 08 to give the deed back and it just wouldn't happen. This was after doing the very same thing(deed back) over at Vistana, so we knew the terminology and the basic method to accomplish it. They just wouldn't do it. We were given an answer similar to this below.

Therefore, Orange Lake would rather have you on the hook paying the maintenance fee, than to have to spend their money to resell the unit.

 

[simpsontruckdriver]

Not only does HICV do deed-backs, but they actively take resale’s by ROFR. I tried to buy an OLCC East Village, HICV took it by ROFR. Then, I tried buying Panama City Beach, HICV took it by ROFR. I am giving up on buying HICV for a while, they apparently want to take FREE resales and sell them for full price.

TS

 

[Matt K.]

Not only does HICV do deed-backs, but they actively take resale’s by ROFR. I tried to buy an OLCC East Village, HICV took it by ROFR. Then, I tried buying Panama City Beach, HICV took it by ROFR. I am giving up on buying HICV for a while, they apparently want to take FREE resales and sell them for full price.

TS

Wow, thanks for this. What does "ROFR" stand for?

 

[tschwa2]

ROFR means right of first refusal. This means that if you find someone to buy or take your timeshare then you have to submit the offer to HICV and they have the right to accept the deal and take the deed for themselves under the same terms. Just because a developer has ROFR and is even exercising it doesn't mean they automatically accept deed backs. Sometimes they make the owners find someone willing to take the timeshare before they would step in and take it. HICV is also selectively exercising ROFR only for weeks they specifically are interested in. Off season weeks may solicit no ROFR while a higher season might.

 

[LannyPC]

What does "ROFR" stand for?

Right of First Refusal.

What it basically means is that the resort or timeshare company has the right to nix a sale by an owner to another party by purchasing for the price that the other two parties agreed upon. It's rare that this happens.

 

[simpsontruckdriver]

Actually, the week I lost to ROFR at OLCC was a “Value” (low demand) week. Same with the HICV Panama City Beach, it was a “Gold” (one step higher than Value but not Prime) week. They’re taking all weeks, not just high demand ones.

TS

 

[Zinjanthropus]

I wish that had happened back in 08 when I was on a money mission. I'm actually glad I still have it. My brother paid the yearly MF, visited every year and had a blast for 10 years. I just started exchanging with it.