HomeMy WebLinkAbout12. 13-493
NOVEMBER 12, 2013 13-493 RESOLUTION
(CARRIED__6-0_____LOST_______LAID OVER_______WITHDRAWN_______)
PURPOSE: AUTHORIZE ACQUISITION OF PROPERTIES / 114 EAST
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IRVING AVENUE AND 808 WEST 7 AVENUE
INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT
WHEREAS, in 1999 a housing improvement project was undertaken by the City
on the property at 114 East Irving Avenue utilizing Federal Community Development
Block Grant (CDBG) dollars and a mortgage was placed on the property; and
WHEREAS, in 2011 a housing improvement project was undertaken by the City
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on the property at 808 West 7 Avenue utilizing Federal Community Development Block
Grant (CDBG) dollars and a mortgage was placed on the property; and
WHEREAS, one of the conditions included in each mortgages is that the
mortgage is not due and owing unless the original mortgagees, Sandra Mullins and
Joan Robertson, respectively, sells the house or no longer lives at the property; and
WHEREAS, the original mortgagee at 114 East Irving Avenue passed away in
2012 and staff has made numerous attempts to resolve this matter with Ms. Mullin’s
decedents to no avail; and
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WHEREAS, the original mortgagee at 808 West 7 Avenue passed away in 2011
and staff has made numerous attempts to resolve this matter with Ms. Robertson’s
decedents to no avail; and
WHEREAS, the City initiated foreclosure proceedings and both properties will be
for sale at an upcoming Sheriff’s sale; and
WHEREAS, the Department of Community Development desires to bid on the
properties at the Sheriff’s sale with the intent of reselling the properties to recoup the
mortgage amounts and expenses of foreclosure; and
WHEREAS, staff requests that a not to exceed amount of Twenty Four Thousand
Eight Hundred Fifty Seven and 50/100 Dollars ($24,857.50) be authorized to bid on the
property at 114 East Irving Avenue.
WHEREAS, staff requests that a not to exceed amount of Twenty Two Thousand
Six Hundred Twenty Eight and 71/100 Dollars ($22,628.71) be authorized to bid on the
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property at 808 West 7 Avenue.
NOVEMBER 12, 2013 13-493 RESOLUTION
CONT’D
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City officials are hereby authorized to bid on the property at
114 East Irving Avenue at the upcoming Sheriff’s sale in an amount not to exceed
Twenty Four Thousand Eight Hundred Fifty Seven and 50/100 Dollars ($24,857.50).
BE IT FURTHER RESOLVED by the Common Council of the City of Oshkosh
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that the proper City officials are hereby authorized to bid on the property at 808 West 7
Avenue at the upcoming Sheriff’s sale in an amount not to exceed Twenty Two
Thousand Six Hundred Twenty Eight and 71/100 Dollars ($22,628.71).
BE IT FURTHER RESOLVED that the proper City officials are authorized and
directed to execute all documents necessary to consummate this transaction.
CITY HALL
215 Church Avenue
P.O.Box 1130
Oshkosh, 90 -1180 130
54903-1 City of Oshkosh
OIHKOIH
TO: Honorable Mayor and Members of the Common Council
FROM: David J. Praska, Assistant City Attorney
DATE: November 8, 2013
RE: Approve Authority to bid on foreclosed property
BACKGROUND
The Department of Community Development entered into residential rehabilitation loans
several years ago to facilitate repairs to properties at 114 East Irving Avenue and 808
West 7th Avenue. In both instances, the City obtained and filed mortgages against each
property to ensure repayment of the City's loans. Repayment terms of these loans were
flexible, but in both instances payment in full was due when the homeowner no longer
lived at the property. Unfortunately, the both of these homeowners recently passed
away. We believe that the only property in each estate is the residence. No relative or
other interested person has stepped forward to open a probate of either estate, or to
otherwise liquidate either of the properties. The City's mortgage on each property has
priority over all other liens, and therefore the City has instituted foreclosure proceedings
against both properties to protect and recoup its investment in both properties. As part
of the foreclosure process, a sheriffs sale for both properties is set for December 3,
2013.
ANALYSIS
Staff requests the authorization to protect the City's investment in both properties by
bidding on one or both properties at the Sheriffs sales. Staff will only submit bids if
necessary, and hopes that others will bid an amount at or exceeding the City's judgment
amount so that the City can recoup its investment without having the related property
ownership issues.
114 East Irving Avenue: The City's mortgage is in the principal amount of $22,666.97.
The amount due will be the principal amount plus costs, for a total requested bid
authorization of $24,857.50. The City Assessor's 2013 assessed value for this property
is $59,500.00.
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808 West 7th Avenue: The City's mortgage due is in the principal amount of$20,160.21.
The amount due will be the principal amount plus costs, for a total requested bid
authorization of $22,628.71. The City Assessor's 2013 assessed value for this property
is $68,000.00.
FISCAL IMPACT
Authorizing staff to bid on these two properties at the December 3, 2013 Sheriff's Sale
will assist the City with protecting and recouping its investment in these two properties.
The City's subsequent marketing and sale of these two properties may allow the City to
realize some level of additional return in its investment, all of which would be reinvested
in its rehabilitation program.
RECOMMENDATION
Staff recommends that Council authorize it to enter bids at the Sheriffs sale for the
properties at 114 East Irving Avenue and 808 West 7th Avenue.
- •ectfull ubmitted, Approved:
....3-4(.4.,.. 4, A ...41,4440.
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Da d J. raska Mark A. Rohloff
Assistant ity Attorney City Manager