The hotel's doors were closed seven weeks ago. It has since been unsuccessfully for sale by tender.
The mortgagee sale was forced by mortgage holder Auckland-based Property Funding Ltd, understood to be for several hundred thousand dollars because of payment defaults.
A company spokesman declined to verify any details of the sale when contacted yesterday.
The seven-bedroom $800-a-night hotel, on 2.8ha of land, was closed at short notice in early September, with the loss of 12 jobs.
In 2004, the hotel, which has a capital value of $1.8 million, was for sale for more than $2 million.
Corstorphine House has been owned and redeveloped since 1999 by Nico and Irina Francken.
Attempts were made yesterday to contact Mr Francken overseas, by email, but he did not respond, having last week told the ODT that interested parties "may have to bid well over valuation levels" to buy the hotel.
"Also, we ourselves are talking to potential buyers in India and Russia and expect them to enter the tender process too," Mr Francken said at the time.
Metro Realty agent Craig Palmer said when contacted the mortgagee sale was by "quick" tender and open only until Monday.
The house was built in 1863 for John Sidey and carries a New Zealand Historic Places Trust category 1 status.
