1366 FREMONT AVENUE within fifteen (15) days after the October
26, 2022, City Council Public Hearing. (To refer to December 13,
2022 Legislative Hearing)
Sponsors:
Prince
Layover to LH February 14, 2023 at 9 am for discussion on demo vs. rehab based on
completed CCIR. Property must be "broom clean", lockbox installed, and CCI applied
for by no later than January 13, 2023.
Sam Coleman, Trott Law o/b/o Wells Fargo, appeared via phone
Moermond: you folks were going to look at the building and do some assessments.
We will have Joe Yannarelly update us.
Staff update by Supervisor Joe Yannarelly: they needed to post a $5,000
Performance Deposit.
Moermond: last time we spoke it sounded like you hadn’t had boots on the ground to
assess the interior of the structures. Our folks were saying the house and garage
were full and trashed and broken into numerous times. Multiple boardings. Maybe the
paper assessment in house wouldn’t look the same as one after seeing the property
in person. You indicated your client wasn’t feeling comfortable ordering the Code
Compliance Inspection until after the redemption period ended. Tell me where things
are at?
Coleman: Wells Fargo is not the fee owner of the property yet. The property has
been fully secured. We are in the process of judicially foreclosing. I did get an order,
a default judgment granting foreclosure back on July 20, 2022. When we were about
to notice the Sherriff’s sale we noticed our title work missed a junior mortgagee. I
needed to bring a motion to correct that and add a new defendant. That was heard
November 28 to add that defendant and to get an order allowing Wells Fargo to at
least go in and tidy it up. The court granted that relief on December 6, 2022. We have
proceeded with getting the new defendant/junior mortgagee served with an amended
summons of complaint. It looks like that was done yesterday. They have 21 days to
answer. I’m not anticipating an answer from them. We’d get another hearing
scheduled with a judge, I’d guess late January, then we’d have the order granting the
foreclosure. Then we’d schedule the sheriff’s sale. I would think the sale would
happen in March, that would be my hope. Because its vacant we shouldn’t have an
issue reducing the redemption period to 5 weeks. If everything goes smoothly, I think
probably Wells Fargo would be the fee owner in May. At that point my client would
have more options with regard to the property. We did have contact from a legitimate
business who rehabs condemned property. I’ve briefly discussed this with them. That
may be an option even prior to the sale. At this point we’re moving as quickly as we
can to get Wells Fargo into title. They would prefer if we could do the cleanout after it
becomes the fee simple owner. That would happen in May. My preference is as long
as they are moving forward with foreclosure to allow us to keep it boarded until May.
Moermond: I am not comfortable with this. You have the court order to get it cleaned
out. I’m concerned given the property’s condition it won’t wash financially for Wells
Fargo given the mortgage amount and estimate of damages. I’d like them to make an
informed decision on that. Even to get it cleaned out to have an inspector to walk
through. The tickets to get layovers involves getting a Code Compliance Inspection
Report. Perhaps you could ask the court for permission to have inspectors do a
walkthrough. That doesn’t change anything besides getting more information that
helps everyone. Nothing can happen until that is done.
Yannarelly: has someone been there to look at the interior?
Coleman: I have personally been there.