Foreclosure auctions are to be held next week for Westin Kaanapali Ocean Resort Villas and Westin Kaanapali Ocean Resort Villas North.
The auction will be held in Maui on Wednesday, October 17 for foreclosed inventory of past due maintenance fees. I have access to that information and have noticed that the balances at which the foreclosings will take place looks like most of the people have not paid their maintenance fees for one year or perhaps two years. It appears Westin is very aggressive in the foreclosing of inventory.
At the moment there are 56 units in weeks in the South Villas and 49 units in the North Villas – combined this represents less than one third of 1 per cent of the total number of owners that are in default or are delinquent. This is an extremely low percentage by industry standards. I think this low number of delinquencies is part of the reason why the maintenance fees are so stable at the North and South Villas resorts. There are very few delinquent accounts.
I’ve attended these foreclosure auctions for the past several years, and there is always a representative from the Developer there out-bidding people who are attempting to purchase inventory on the auction market. I’ve represented quite a few clients and in some cases my clients have been successful in winning their bids. Of course, keep in mind, Starwood is out there bidding on these properties, too. NOTE: The owner has until the morning of October 17, 2018 to pay off the outstanding balance due.
When there is a winning bidder, there is a 10% deposit they pay, which is paid to the title company. Then the licensed title company will complete the transaction. The whole closing process takes about 45 to 60 days. You will get title insurance on the property and closing costs runs about $800 – $900 in addition to the winning bid amount.
The winning bid amount includes the 2018 maintenance fees of the year of that usage, so in this case it will include 2018 fees. The winning bidder will have access to that unit for this year which they can either use or with the limited inventory available they will probably end up having to bank it with Interval International.
Another factor to keep in mind with these auctions is that they don’t have to go through a right of first refusal option because it is not being purchased through a private party.
I hope to get you more information after the auction and hope this information has been helpful to you.
Syed Sarmad, Principal Broker for Advantage Vacation