The Sheraton Keauhou Bay Resort has defaulted on the $60 million left on its mortgage, interest and fines, and will be put on the auction block on July 31st. For the short term, at least, nothing will change in outward appearances. The property is leasehold, owned by Kamehameha Schools, with 521 rooms, a spa and approximately 20 acres of land. The title would probably be transferred to the new owner in September. Complaints from guests in the past ranged from the lack of beach, even though the property is oceanfront, to the feeling that it is an inconvenient location for long stays.