An auction to sell off a portfolio of 86 properties in Kensington and Port Richmond that formerly belonged to an infamous slumlord has been postponed for two weeks, the organizers have announced.
New York-based auctioneer company Madison Hawk announced that the Kenpor auction has been "extended" from this Thursday, May 1, to Wednesday, May 14. More bidder's seminars and open houses will take place before the actual auction occurs.
“Kenpor, L.P. and city officials share a mutual objective of putting these homes into the hands of property owners who will complete needed repairs and subsequently elevate the quality of housing stock throughout North Philadelphia’s Kensington and Port Richmond neighborhoods,” said Jeff Hubbard, president of Madison Hawk, in a statement. "They agree the most efficient way to accomplish that goal is through an accelerated auction sale."
The auction was postponed as "a result of the seller’s intention to add additional product to the offering and the need to complete the necessary title work," a press release from Madison Hawk stated.
These properties belong to Kenpor L.P. (short for Kensington-Port Richmond), which acquired a portfolio of mortgages in default which were originally and fraudulently obtained by Bob Coyle Sr.
Coyle, known as the "slumlord millionaire," defrauded residents of these homes out of thousands of dollars through phony "rent-to-own" agreements and taking payments for utilities that Coyle allegedly pocketed.
Coyle is currently almost a year into his six-year federal prison sentence for mortgage fraud. He was convicted of making about $10 million in blanket mortgages on these and a few additional properties in the same area, which he successfully applied for based on phony paperwork that misrepresented the conditions of the properties and the tenants residing in them. In addition to the prison term, Coyle was ordered to pay $6.7 million in restitution.
Kenpor had initially said they would rehabilitate and sell off all the homes in the portfolio. While they have sold several properties, in February they announced at a court hearing on the matter that they had opted for an auction, as rehabbing the portfolio was no longer financially feasible.
The properties will be sold lien-free. Half the properties will be sold off regardless of price. However, all buyers will be required to put $6,500 into escrow per property purchased, to be used for demonstrable repairs, according to Madison Hawk.
According to a source familiar with the auction, about 400 individuals had already signed up to bid on the Kenpor properties as of last week.
Interested bidders will be required to sign up for a bidder's seminar. Four new seminar dates were also announced today, on Tuesday, May 6 and 13 from 6 p.m. to 8 p.m. and on Wednesday, May 7 from 11 a.m. to 2 p.m. All seminars will be held at First District Plaza, 3801 Market Street.
The new open house date for viewing the properties is on Saturday, May 10 from 11 a.m. to 2 p.m.
To register for bidder's seminars or an open house, visit Madison Hawk.