Joan kills him and hides this from their daughter upstairs. What's the long-term plan, Joan? She hears a radio report about an escaped lunatic wearing a Santa suit being out there. Uh oh, Lobo is free! She locks up and hides when he passes by. Wow, genuine tension. That goes away quickly, however, as she closes the blinds and begins to arduously clean the scene up. She goes to check on the daughter, only to find her missing. She goes back downstairs and learned that the girl let in Santa. Ruh roh. He chases her to the fire and kind of chokes her. It's mostly a massage, but whatever. We cut back to the group. Happy Holidays.
That's only the first fifteen minutes or so of the film, mind you. A lot more happens. They rip off 'The Monkey's Paw' (and reference it in the tale!) along with other stuff. It all ends with one guy falling into Hell. Got to love 1970's rear-projection effects, huh?