May
04

Myrtle Beach’s Bahama Island Land to be Auctioned

By

Auction set for Bahama Island
Purchasers may not see funds from land’s sale

May 04, 2008

By David Wren – The Sun News

Land where the failed Bahama Island condominium resort was supposed to be built is scheduled to be sold Monday during a foreclosure auction, but it still is not clear whether condo purchasers who lost $5.4 million worth of deposits will share in any of the proceeds.

Bahama Island’s developers were supposed to keep the deposits in an escrow account, but instead used the money to pay themselves, for travel and other personal expenses and for unrelated projects.

The misspent money has sparked an ongoing federal criminal investigation.

Bahama Island’s purchasers have been hoping the foreclosure sale will raise enough money to pay them back, but some now believe the legal battle is far from over.

Sharon Clark, who lost $60,000 in deposits on Bahama Island and another of the developer’s projects, said investors might have to sue the developers if Monday’s foreclosure doesn’t raise enough money.

“I think we’ll eventually get our money,” Clark said. “Do I think it will be a long time? Yes.”

National Bank of South Carolina is foreclosing on the 22.2-acre Bahama Island property because Ship Ahoy Marina LLC did not repay loans that now total about $9 million, including interest and attorney’s fees.

ARTICLE SHORTENED DUE TO LENGTH………

LINK TO COMPLETE ARTICLE HERE:
http://www.myrtlebeachonline.com/business/story/438774.html
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