KoOlina Beach Club Foreclosures

[rudy]

No Bargains for most of US

I talked to the lawyer Rodney Grant handling the auction... He told me that you must attend in person and that the units will be sold in blocks.. ie. all Maui units in one block, all Ko-olina in another block.. they break these large blocks into samller blocks at Marriott's discretion. Bottom line is that you will likely have to buy multiple units as in 10-20.

THis leaves me out of the hunt... but for you investors out there.... go to it.

 

[bradsprague]

After the auction

I am planning on having a representative to bid for me on an MKO unit.

Anyone have a suggestion on who could handle all closing details for me?

Brad

 

[vacationtime1]

I talked to the lawyer Rodney Grant handling the auction... He told me that you must attend in person and that the units will be sold in blocks.. ie. all Maui units in one block, all Ko-olina in another block.. they break these large blocks into samller blocks at Marriott's discretion. Bottom line is that you will likely have to buy multiple units as in 10-20.

How convenient for Marriott.

 

[Time2Buy]

Anyone going to the auction today?

Greg

 

[betsy2010]

info for today - anyone?

Hey Greg I was thinking of going just to check it out. We're about 30 minutes away and I can't find the details (the page is no longer up)

does anyone have all of the original star advertiser post they could post with the details on location, etc?

thanks
bd

 

[Time2Buy]

Betsy,

Sorry, I didn't see your post until late last night. Did you find the location of the auction?

Greg

 

[mdonato]

I have been to quite a few auctions over the years and if there is a mortgage the starting bid is $1 over that. So if there is an oustanding mortgage of $10000 then the starting bid is $10001. Plus often times if an owner isnt paying mortgage they are also not paying the maint fees. Also in Hawaii at least in the past they do group of sales where they sell a large group of like 10 timeshares at a time. So you are stuck with the good and the bad. They go for about $80k. There has been auctions for all timeshare pretty monthly regularly since they got started. One thing is Marriott used to take much longer to forclose on properties then they are today. They arent playing around! Any units that I have purchased in the past have come with the reward points benefit I believe. I will check again though to confirm.

 

[mdonato]

I am planning on having a representative to bid for me on an MKO unit.

Anyone have a suggestion on who could handle all closing details for me?

Brad

Marriott will have a closing company handle everything. In the past they have had FA do them.

 

[SueDonJ]

I have been to quite a few auctions over the years and if there is a mortgage the starting bid is $1 over that. So if there is an oustanding mortgage of $10000 then the starting bid is $10001. Plus often times if an owner isnt paying mortgage they are also not paying the maint fees. Also in Hawaii at least in the past they do group of sales where they sell a large group of like 10 timeshares at a time. So you are stuck with the good and the bad. They go for about $80k. There has been auctions for all timeshare pretty monthly regularly since they got started. One thing is Marriott used to take much longer to forclose on properties then they are today. They arent playing around! Any units that I have purchased in the past have come with the reward points benefit I believe. I will check again though to confirm.

Many of the resort HOA's/BOD's elected last year to allow non-judicial foreclosure proceedings for non-payment of MF's and mortgages. I agree they're not playing around, and this is one way they've made it simpler and quicker for them to turn around the non-performing inventory.

It's interesting to learn about the block sales, didn't realize those were an option. If you purchase a block, can you then re-sell them as individual Weeks?

 

[betsy2010]

no one showed at "auction"

ok, I'm pissed. My mom and I went to the appropriate location at the appropriate time yesterday for the Ko Olina Auction (3PM @ 415 S Beretania on the steps of the rotunda facing the queen whoever statue). No one showed, no posting of a reschedule, no answer from Ronald or his assistant. I bet they went through with the sale and Marriott turns out to be the 'only' bidder. not true! grrrrrr

 

[gblotter]

ok, I'm pissed. My mom and I went to the appropriate location at the appropriate time yesterday for the Ko Olina Auction (3PM @ 415 S Beretania on the steps of the rotunda facing the queen whoever statue). No one showed, no posting of a reschedule, no answer from Ronald or his assistant. I bet they went through with the sale and Marriott turns out to be the 'only' bidder. not true! grrrrrr

From what the auction document says, you were at the right place at the right time. I would be upset too.

There is supposed to be another auction today (12/21) at noon in Honolulu at a different location. Wonder if anyone will be there. December 21, 2010 beginning at 12:00 noon, on the Court Lanai fronting the Circuit Court of the First Circuit, 777 Punchbowl Street, Honolulu, Hawaii.

 

[betsy2010]

all sold in one batch for $1.1 million back to Marriott

1st of all the woman at the law firm swears they held the auction on the steps (where we were and they were NOT) we got there within minutes of 3pm and no one was there and some employees from the capitol said no one had been there for a while, so IF they did the auction they did it earlier than 3pm.

second, they sold them all in ONE batch (no opportunity to even bid for 10 at a time!) and since the only bidder who (they say) showed up couldn't afford that they reverted to the lender (I'm assuming Marriott) for $1.1 million.

sheesh what a racket and what a waste of time!
best,
bd

 

[GregT]

1st of all the woman at the law firm swears they held the auction on the steps (where we were and they were NOT) we got there within minutes of 3pm and no one was there and some employees from the capitol said no one had been there for a while, so IF they did the auction they did it earlier than 3pm.

second, they sold them all in ONE batch (no opportunity to even bid for 10 at a time!) and since the only bidder who (they say) showed up couldn't afford that they reverted to the lender (I'm assuming Marriott) for $1.1 million.

sheesh what a racket and what a waste of time!
best,
bd

This is for 60 or so weeks? $1.1M? That's a little under $20K/week?

Hmmmm.....Marriott is welcome to them.

Thanks for the info, interesting to follow!

Best,

Greg

 

[gblotter]

This is for 60 or so weeks? $1.1M? That's a little under $20K/week?

Hmmmm.....Marriott is welcome to them.

For mortgage foreclosures, I would expect the amount owed to be quite high - and for that reason no bargains should be be anticipated at auction time. That could be the justification for grouping all of them together. If everyone involved (including non-Marriott bidders) realizes that you can buy a unit on the resale market for much cheaper, why go through the tedious process of doing this 59 times?

For maintenance fee lien foreclosures, the amount owed may be much lower so perhaps a deal could be found on those auctions. However, I didn't notice any Ko Olina lien foreclosures when I examined the auction documentation.

I couldn't determine the differentiating factor for the units being sold at auction on December 21st. For some reason those units were not included in the December 20th auctions, but I have no idea why they needed to be sold separately. Perhaps they are being foreclosed because of both unpaid mortgage payments AND unpaid maintenance fees (pure speculation on my part).