things.  
					Moermond: I’m curious if you have an update on where you are at in the foreclosure  
					process?  
					Hargrove: as of right now the main issue we’ve been having is the location. Being in  
					Ramsey County it makes it a bit different. Usually, we can shorten the redemption  
					period to five weeks. Ramsey County has 12 months.  
					Moermond: that isn’t true. If you are hearing that it must be due to another reason.  
					Dropps: this was a reverse mortgage, a HECM, and those do have a 12-month  
					redemption period. It is the only foreclosure that has that, outside of a federal tax  
					default.  
					Moermond: so, it’s the type of loan, not the location.  
					Hargrove: in other counties we can petition for it to be shortened, but Ramsey County  
					doesn’t have that due to the type of loan.  
					Moermond: unusual. So, what is your lawyer talking about on timing?  
					Hargrove: right now the redemption period is set to expire August 9, 2023. That is when  
					it went to auction and reverted back with no bidders. We are stuck now in that  
					12-month timeframe. That was our concern about some of the level of repairs. We  
					want to maintain the property because it is in the best interest of everyone. Now we are  
					tied to this $109,000 bid we set at auction. The more we improve the property the value  
					increases but we’re only tied to being able to collect that $109,000 bid. We’re in a  
					tough spot financially.  
					Moermond: I understand Anthony Pilla has been deceased since 2019. It has been a  
					while.  
					Hargrove: what happens with the HUD mortgages, it ensures that in the event the  
					originating loan company is unable to fulfill the payout made by the loan, HUD steps in  
					the continue the payments. Once the owner passes away and the loan goes into  
					default they then have an insurance policy that pays them their portion of their policy or  
					whatever they step forward to insure. They don’t start the foreclosure. The properties  
					we purchase pull reverse mortgages from HUD throughout the year. They deteriorate,  
					once they are paid out that claim, at some point they package them up and decide to  
					sell to smaller financial institutions like us. We didn’t take ownership of the mortgage  
					until January 2022. We immediately issued notices and the foreclosure took place  
					August 2022. We’re in California. There was 3 months before we realized something  
					was behind the placard and understood what needed to be done. The magnitude of the  
					repairs, we thought we could rehab and then our attorney told us know.  
					Moermond: this went into the Vacant Building program September 2021, not long after  
					Mr. Pilla passed.  
					Yannarelly: it was a Category 1 when it came in, but it upgraded to a 2 because it  
					wasn’t being taken care of.  
					Moermond: my question is if the City Council has the temperament to wait for a year to  
					see if it will be rehabbed. Certainly, the Code Compliance Inspection Report and steps  
					to maintain work in your favor. But I’m putting this out there that this is an exceedingly  
					long time. It may be in your best interest to have someone local come testify to  
					Council. What does your General Contractor tell you?