The Sunset Cay commercial and residential development project in Moneta, Virginia has been placed on the foreclosed home list. The property will be auctioned off on September 17.
StellarOne foreclosed on the property after its developer, Smith Mountain Lake Partners, defaulted on a mortgage loan. The developer also filed for bankruptcy early this year. The Bedford County Circuit Court ruled in favor of the bank and awarded it about $6.1 million in addition to interest.
According to industry experts, the trustee foreclosure sale will include all developments located at the Hendricks Store Road, excluding a commercial property which was foreclosed by Wachovia early this year. Wachovia also repossessed the Sunset Cay development project located on Virginia 122.
The Sunset Cay properties scheduled for foreclosure auction include nine houses. Six of these houses have three bedrooms, while one is a four-bedroom residence. The remaining two are still under construction and are not expected to be completed by auction time.
Additionally, 22 residential lands parallel to the nine houses have been also placed on foreclosure auction. Included in the auction are a 27-acre land and two undeveloped commercial lands.
According to industry analysts, the foreclosure sale will be absolute, with StellarOne accepting the highest bids.
A typical foreclosure auction process requires winning bidders to pay at least 10 percent in deposit. Winning bidders can pay the deposit in cash, letters of credit from banks or certified funds before the close of auctions. Sales should be closed within a month.
The auction for the Sunset Cay property will be held at Mariners Landing's Pointe Conference Center. Before the foreclosure auction, prospective bidders can view properties on sale on August 30, September 6, 10, 13, 15 and 16 and on the day of the auction.
The original development plans for the Sunset Cay project included over 1,500 houses, restaurants, shopping center and a golf course. There was an option to buy a 400-acre farmland for the project expansion but it never materialized.
Meanwhile, the Sunset Cay project on Virginia 122 is involved in a lawsuit currently pending on court. Early this year, a complaint was filed by Wachovia against SML Partners to force developer Jim Fields to pay up over $8.5 million.
The Virginia 122 project features a hotel, a marina nearly 50 boat slips, commercial and office spaces.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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