Motel Scheduled for Bank Owned Foreclosures Auction

June 29, 2009 by on General

The foreclosure crisis in Massachusetts took another victim as the Stone Hotel Motel is scheduled for Bank Owned Foreclosures auction on July 2. The over 40-room property located in South Harwich is assessed at $1,233,900, with annual taxes of $7,771.

JJ Manning Auctioneers has advertised the Bank Owned Foreclosures auction for the property which consists of five buildings located on a 2.61-acre parcel of land. The facilities include two apartments, an office building and two hotel/motel buildings.

According to JJ Manning Auctioneers, the planned auction is on schedule but sometimes, with auctions, cancellation is a big possibility and so potential bidders are advised to call the company for confirmation on the day of the sale.

The property has been used both as a motel and for housing seasonal workers. It contains a 20-room dormitory used by its former owner, Doctor J. Richard Fennell to shelter seasonal workers of the Snow Inn and Thompson’s Clam Bar.

In June 1999, Fennell sold the facilities to Stone Horse Motel Inc. for about $600,000, with Harry Miller as the identified purchaser of the complex. In January 2002, Caribbean Cleaners Inc. bought the complex for a dollar. The following month, the company sold the complex back to Stone Horse Motel, also for a dollar.

Meanwhile, Douglas Levings, who declared himself as the only owner of the complex now under Bank Owned Foreclosures, operated the facilities as housing for seasonal workers and rental motel units. Last year, Levings decided to use the dormitory portion of the property into long-term rentals. He was concerned about the availability of foreign workers who worked seasonally under the H2b visa program.

Levings proposed using the complex to house people who have drug problems. He said that his research showed that there was a lack of housing for individuals who are recovering from drug addiction. He said that his proposal is aimed at providing housing to people who have successfully completed drug addiction recovery programs.

When he put his plan into action, residents living near the property staged a protest. The building department also served Levings a cease and desist order due to his failure to secure permits for conversion work.

The Bank Owned Foreclosures auction requires that successful bidders must have at least $25,000 in certified bank check. They must also be prepared to complete the sale within a month.