73-4920 Manu Mele Street - Auction Recap

The Manu Mele St. foreclosure was held today, 1-10-24.  This was the property that had only the shell of a house and a private lender.  

There appeared to be many folks in attendance for the auction, but only one party was bidding against the private lender.  

Although in most cases, the banks typically only send a representative with one bid, this private bidder started the bid at $780k and ran the 3rd party bidder up to $879k.  I found this interesting for two reasons: 

1.  It was risky!  I don't believe the private lender wanted the hassle of dealing with this property, and with every bid above what he was owed, he could have pushed the 3rd party bidder out. 

2.  Only $850k total was owed on the property.  There was no reason for the private lender to bid above this amount and yet he did, three times!  Every increment above $850k was a risk that the other bidder might drop out and also, every cent above the total owed goes to the borrower in the default!  The private lender just earned $29k for the borrower by running the bid up.  Very interesting.  

73-4920 Manu Mele Street - Open House walk through

On January 7th I attended the commissioner's open house for 73-4920 Manu Mele St.  It sure was open, in fact, it has no doors at all!  Well, there are some doors, but they're not installed.  There is plenty of lumber and materials on site, but sadly it is not installed.  

Here is the foreclosure listing:  http://www.bigislandforeclosures.com/2023/12/73-4920-manu-mele-street-kailua-kona.html

This is a private lender foreclosure, and unlike most open houses, the private lender was present.  He shared details about the home and has the blue prints to pass along if a third-party bidder outbids him at auction.  There was significant interest, but the amount owed is $850k and that is what the private lender intends to bid.  Anyone with the capacity to finish the home and work with the county could get a fabulous deal, but for everyone else, this seems like a big can of worms.  

Here is a link to the house plans provided by the private lender.  If you plan to bid, please do thorough due diligence with the county planning department to understand what you're getting into. 

Two story shell, set on a hill on a one acre lot:

The view: 

Framing has been started.  Per the private lender - the ground rough inspection has been completed, but not the framing inspection: 

Beautiful tongue and groove ceiling and beams, but no roofing on top.  😟

1945 Keo Street, Hilo, Hawaii - Foreclosure Notice

 From Hawaii Tribune Herald 01/07/24:

Notice #: 0001442904-01
Foreclosures

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NOTICE OF FORECLOSURE SALE Pursuant to the Findings of Fact, Conclusions of Law and Order Granting Plaintiff’s Motion for Summary Judgment and Decree of Foreclosure Against All Defendants on Complaint Filed September 5, 2019 filed February 26, 2020 in Wells Fargo Bank, N.A. v. J. Arthur Pinkney, et al., Civil No. 3CC191000247, Third Circuit Court, State of Hawaii, the following described real property will be sold by the undersigned Commissioner at public auction on the date and at the time set forth below: PROPERTY DESCRIPTION: Fee simple property that contains a 3 bedroom, 2 bath residence built in 2003 located at 1945 Keo Street, Hilo, Hawaii (Tax Map Key: (3) 2-5-050-066). TERMS OF SALE: The property will be sold “AS IS” to the highest bidder, at public auction, with NO UPSET PRICE. The successful bidder is required to make a down payment to the Commissioner at the close of the auction in an amount of not less than ten percent (10%) of the highest successful bid price, and said payment shall be made in cash, certified check or cashier’s check. The down payment may be subject to forfeiture if the successful bidder fails to pay the remaining balance of the bid, fails to complete the transaction in a timely manner, or as otherwise ordered by the Court. The balance of the purchase price shall be paid in cash, certified check or cashier’s check to the Commissioner upon approval and confirmation of the sale by the Third Circuit Court and upon tender of the document(s) transferring title. The purchaser shall pay closing costs, including but not limited to costs of escrow fees, title insurance premiums, conveyance document preparation fees, accrued and unpaid real property tax, conveyance tax, accrued and unpaid ground rent payments, recordation and costs of securing possession after closing. Neither availability of title insurance nor securing possession of the property shall be a condition of closing. The subject property will be conveyed in fee simple by Commissioner’s Deed pursuant to order of the Third Circuit Court. THIS SALE SHALL NOT BE FINAL UNTIL APPROVED AND CONFIRMED BY THE THIRD CIRCUIT COURT, STATE OF HAWAII. OPEN HOUSES: Sunday, January 28, 2024, 10:00 a.m. to 12:00 noon, and Thursday, February 1, 2023, 10:00 a.m. to 12:00 noon. Please contact the Commissioner (see below) for a Fact Sheet and further information. DATE, TIME AND PLACE OF AUCTION: Monday, February 5, 2024, 12:00 noon, main entrance to the Hilo Judiciary Building, 777 Kilauea Avenue, Hilo, Hawaii. COMMISSIONER: KRIS A. LaGUIRE, Attorney at Law, 688 Kinoole Street, Suite 204, Hilo, Hawaii 96720. Telephone: (808) 961-1080; E-Mail: kalaguire@aol.com. (HTH1442904 1/07, 1/14, 1/21/24)

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Kyra Bronson R(B) 23930

LUVA Real Estate