T
he Prospect Historic Hotel, a Victorian landmark on the edge of Crater Lake National Park, failed to attract any cash‑check bidders at a foreclosure auction held on Monday at the Jackson County Courthouse in Medford. The 5.6‑acre site at 391 Mill Creek Drive, once a bustling stagecoach stop, had been sold in October 2024 for $2.8 million to Prospect Collective LLC. The resort closed in July, the same month lender ThorMar LLC foreclosed because the owners missed payments.
ThorMar set the minimum bid at $1,682,149 to cover the loan balance, accrued interest, taxes, trustee and attorney fees, and court costs. Randy Thornton, ThorMar’s partner, said the firm would not accept less than the minimum and would keep the hotel running until a buyer is found. If the property remains unsold, ThorMar and partner Rob Marken plan to reopen the hotel on Tuesday and continue operations.
The defaulting owners of Prospect Collective signed a $1.4 million loan with long‑time hotel operators Fred and Karen Wickman, who also own a fully operational 21‑mile‑south property listed for $3 million in June. The Wickmans’ hotel features a 3‑story, 5,492‑sq‑ft main house with 10 B&B rooms, a 50‑seat dining hall, 14 motel rooms, and a 2,700‑sq‑ft log house built in 1990. The grounds include evergreen and deciduous trees, a giant sequoia, a lighted gazebo with barbecue pits, a barn, and a fenced corral. The property sits on a tax lot adjacent to Mill Creek, which feeds Mill Creek Falls and the Rogue River, and holds grandfathered water rights. It is listed on the National Register of Historic Places. “All repairs met historic standards,” Wickman said, adding that the hotel offers a century‑old experience just an hour from Medford.
Prospective buyers can contact ThorMar’s attorney, Alison Hohengarten of Hohengarten Law, at 541‑647‑7437.
Buying at auction differs from a typical real‑estate sale. Bidders must conduct their own due diligence before bidding, as no agent writes a contract. Foreclosure auctions, usually oral and held outside the courthouse, require a cash or cashier’s check deposit and full payment on the day or within 24 hours. If the bid falls short of the minimum, the lender may “credit bid” the full amount, taking possession. The sale is “as is,” and buyers must clear all encumbrances without a prior title search.
Owner‑initiated auctions, such as those run by Realty Marketing/Northwest Oregon, use sealed bids, require a 10% deposit, and a signed purchase agreement with closing 30–45 days after acceptance. These auctions differ from sheriff or trustee foreclosures in terms of bidding process and payment timelines.
The Prospect Historic Hotel’s failure to sell highlights the challenges of selling historic properties at foreclosure auctions, where buyers must weigh the costs of restoration, historic compliance, and potential operational hurdles against the purchase price.
