David Ryan's Restaurant Facing Foreclosure

may be sold at the auction block next week, unless the owners of the popular Edgartown bar and restaurant are able to halt foreclosure proceedings currently underway.

A foreclosure sale for the property has been scheduled for March 16 at noon by the , which holds a mortgage on the property at 11 North Water Street.

The two-level restaurant located steps from Edgartown's Main Street has been owned by husband and wife Richelle (Shelly) and Robert O'Neil since 2005.

“We always continue to work with our customers, right up until it's no longer possible to do it, which is literally seconds before the auction occurs,” said Bradford Egan, executive vice president and chief lending officer for Martha’s Vineyard Savings Bank.

The auction may be called off if the owners are able to repay the default on their loan. “At this time," said Egan, "the auction is scheduled for the 16th.”

The restaurant has remained open for business.

Employees referred reporters to the O”Neil family, who did not respond to several calls for comment. Reportedly, the O'Neils have told employees they are working to resolve the matter.

According to the legal notice, at issue is a mortgage on the real estate given by Territory Properties II, LLC, in 2005 to what was at the time known as Dukes County Savings Bank. Martha's Vineyard Savings Bank became the mortgage holder following its merger with the Dukes County bank in 2007.

Legal notices announcing the foreclosure sale have been running in the Martha's Vineyard Times since February 17.

If the auction proceeds as scheduled, the land on which David Ryan's is located, at the corner of North Water Street and Mayhew Lane, as well as all furniture, fixtures and equipment onsite, will be sold to the highest bidder. McLaughlin & Co. of Boston will conduct the auction sale on the restaurant's premises.

A $10,000 deposit in the form of cash or certified check is required at the time of sale, according to the auctioneer’s published bid package. The balance of the sale would be due within 45 days of receipt of the deed, with the buyer assuming any unpaid taxes, liens or assessments.

“We work with customers and are always looking for solutions,” Egan said of the banks ongoing negotiations with the O'Neils. “You’ve seen our track records. We have had very nominal foreclosures over the past few years . . . We proceed very carefully and very cautiously.

“If we're lucky,” said Egan, “this one will work out as well.”