What happens if you're the winning bidder - but can't come up with the money?

Today an auction was published for a unit I knew I had seen before: Elima Lani #1803.  I had always been told that if you bid on a unit and cannot complete the purchase, that your 10% bid would be returned, less the expenses for re-publishing the notices and holding the auction again.  However, I had never seen it happen.  

Apparently, after winning the bid and depositing his 10% with the commissioner, the bidder could not come up with the balance of the purchase price.  From the court minutes: 

Court: Orders the commissioner to re-auction as a NEW auction and to publish in a newspaper. Will GRANT plaintiffs motion and CANCEL the sale to the high bidder based on the representation that were unable to secure financing but will maintain possession of the 10% deposit until the costs to re-auction are sorted. 

Commissioner: Tenant moved out; inquires as to open houses and to rechecking out the property. 

Court: YES the commissioner shall treat this as a new auction and hold more open houses. 

Bidder: Pleads for the Court to release his deposit due to serious financial hardship; 

Court: The order states the deposit is to be held

I am interested to continue watching this one to see how much of his deposit the bidder is actually able to recover.  

Please remember: 

• Don't bid unless you have the full amount readily available to you. 
• Financing is very risky during a court foreclosure process.
• Just because this judge is willing to return some of this bidder's deposit, does not mean other judges would do the same under other circumstances.  Do not count on receiving any of your 10% deposit back if you cannot complete the purchase.  

Be sure to Subscribe to email alerts do you don't miss the updates as this case makes its way back through the new auction and the final accounting of bidder's deposit return is completed.  

Kyra Bronson R(B) 23930

LUVA Real Estate

68-3883 Lua Kula Street #1803, Waikoloa, HI 96738 - Foreclosure Notice

 From West Hawaii Today 5/31/23:

Notice #: 0001417825-01
Foreclosures

---

NOTICE OF FORECLOSURE SALE Pursuant to the verbal orders of the court concerning Plaintiff’s Motion for (1) Cancellation of Sale; (2) for Forfeiture of Purchaser’s Deposit; and (3) for Court Instructions, filed on April 6, 2023, in U.S. Bank Nat. Assn., et al. v. Chinen, et al., Civil No. 15-1-395K, Third Circuit Court of the State of Hawaii, the Commissioner identified below has been directed to sell the following property at a public auction. DESCRIPTION: 68-3883 Lua Kula Street #1803, Waikoloa, HI 96738, TMK: 3-6-8-003-004-0083, a 2-bedroom, 2-bathroom Elima Lani condominium reportedly built in 1988 with 854 square feet of living area, and lanai. Fee simple. OPEN HOUSES: June 3, 2023 from 2:00 p.m. to 4:00 p.m., and June 10, 2023 from 10:00 a.m. to 12:00 p.m. PUBLIC AUCTION: July 7, 2023 at 12:00 Noon at the Keahoulu Courthouse, 74-5451 Kamakaeha Ave, Kailua Kona HI 96740, to the south of the “Ho’o Pohaku” sculpture in the shade near the northwest corner of the building. TERMS OF SALE: No upset price. Property will be sold in “as is” condition with no warranty of title or possession or any other warranties. No less than ten percent (10%) of the highest successful bid price must be deposited with the Commissioner at the close of the auction, and payment to be made in cash or cashier’s check. Potential bidders must be able to provide proof of their ability to comply with the 10% bid requirement or status as a party entitled to credit bid prior to participating in the public auction. The balance of the purchase price shall be paid to the Commissioner upon approval and confirmation of the sale by the Third Circuit Court of the State of Hawaii and tender of the document(s) transferring title. At the confirmation hearing, the Court may allow further bidding on the condition that the initial opening bid must be at least one hundred ten percent (110%) of the highest bid at the public auction. All costs and expenses of securing possession of the property and closing, including conveyance and recordation fees and conveyance taxes, shall be paid by the successful purchaser. The ten percent (10%) down payment may be forfeited in full or in part if the successful purchaser fails to pay the balance of the purchase price after court confirmation of the sale. Neither the availability of title insurance nor securing possession of the property shall be a condition of closing. Real estate brokerage commissions will not be paid from sales proceeds. The sale will not be final until approved by the court. For further information contact Daniel S. Peters, Esq., 74-540 Honokohau Street, Kailua-Kona, Hawaii 96740, (808) 331-1199, daniel@danielspeters.com, Commissioner. (WHT1417825 5/31, 6/7, 6/14/23)

See all open houses and auctions on the calendar.

Subscribe to receive these notices via email. 

Kyra Bronson R(B) 23930

LUVA Real Estate

Maealani Place, Volcano, Island and County of Hawaii - Foreclosure Notice

 From Hawaii Tribune Herald 5/21/23:

Notice #: 0001416727-01
Foreclosures

---

NOTICE OF FORECLOSURE SALE CIVIL NO. 1:21-CV-00261 DKW-KJM United States District Court for the District of Hawaii MFY Funding LLC v. Ohia Opportunities, LLC; Kanoa Ross Bristol, et al. PROPERTY ADDRESS AND DESCRIPTION: Two (2) adjoining properties situated on Maealani Place, Volcano, Island and County of Hawaii in the residential project known as the Volcano Golf Course Lots and bearing Tax Map Key Nos. (3) 9-9-002: 021 and 022. A single-family fee simple home is located on the two parcels containing approximately 0.45 acres or 20,909 square feet. The house covers approximately 1,822 square feet and contains five (5) total rooms: three (3) bedrooms, two and one half (2.5) baths with kitchen, pantry and two separate spacious living and family rooms. Covered garage (approximately 600 sq. ft.); outside laundry and concrete areas (approximately 280 sq. ft.). A separate stand-alone outdoor storge building (approximately 300 sq. ft.) exists. Ample outdoor open spaces with dense vegetation. AUCTION DATE: WEDNESDAY, JUNE 21, 2023 at 12:00 O’CLOCK NOON, Front entrance to Hale Kaulike Courthouse Building, 777 Kilauea Avenue, Hilo, Hawaii. OPEN HOUSES: BY ADVANCE APPOINTMENT ONLY on Sunday, June 4, 2023 from 2:00 p.m. to 4:00 p.m. and on Sunday, June 11, 2023 from 2:00 p.m. to 4:00 p.m. To attend the open houses, you must make an advance appointment to attend the open house on the designated dates. Walk-ins will not be granted access. Please contact Commissioner to make an advance appointment. TERMS OF SALE: Property will be sold in “AS IS” condition, without any express or implied warranties or representations of any kind, at public auction with 10% of the highest bid payable in cash, certified or cashier’s check at the close of auction. THERE SHALL BE NO UPSET PRICE. Balance of highest bid shall be paid in full upon court approval and confirmation of sale. Potential bidders must be able to provide proof of ability to comply with the 10% bid requirement BEFORE participating in the public auction. Purchaser shall pay ALL costs of closing, including, but not limited to, escrow fees, recordation fees, conveyance taxes and is responsible for securing possession of the Property upon escrow closing and recordation. Neither the availability of title insurance nor securing possession of the Property shall be conditions of sale closing. Sale closing usually occurs not later than thirty-five (35) days after the entry of the order confirming sale. Real property taxes shall be prorated as of the date of closing and recordation of the documents transferring title. The Property, including all improvements, will be sold without personal property. Property is currently unoccupied. ALL SALE AND TERMS OF SALE ARE SUBJECT TO COURT CONFIRMATION. DUE DILIGENCE INFORMATION: A Foreclosure Fact Sheet containing additional limited information is available upon request from the Commissioner. The information made available has been collected from various sources including tax records, a title report, and pleadings and appears to be reliable but it is not guaranteed. Photographs are available upon request. Potential bidders are expressly advised to perform and complete their own investigation and due diligence prior to bidding. For further information, contact Wayne K. T. Mau, Commissioner, 1003 Bishop Street, Pauahi Tower, Suite 320, Honolulu, Hawaii 96813; Telephone (808) 781-8494 (cell); (808) 380-8498 (ofc.); email: wayne@wmaulaw.com (HTH1416727 5/21, 5/28, 6/4/23)

See all open houses and auctions on the calendar.

Subscribe to receive these notices via email. 

Kyra Bronson R(B) 23930

LUVA Real Estate