How TJ Waconia’s Legacy is Still Affecting North Minneapolis
Everyone in Minneapolis seems to have a different take on the TJ Waconia fraud cases associated with North Minneapolis. I don’t claim to know everything about it or even have an opinion if they are guilty or not. A great summary was written by MyFox9 News, with a nice counter point by the Minneapolis Mirror.
In April 2008, the City of Minneapolis “took charge” of 141 North Minneapolis properties previously owned by TJ Waconia. The interesting twist is these properties are no longer owned by TJ Waconia, but by the banks that foreclosed on them. Almost all of those properties are now on the market for sale via the MLS.
Recently, I was trying to write a purchase agreement on one of these properties. I spoke to the listing agent to see if the property was still available. They explained that they receently received an email detailing the following:
- A buyer would submit a purchase agreement as normal on one of these properties.
- Once it was accepted by the bank, the buyer’s agent would need to contact the Greater Metropolitan Housing Corporation, a non-profit.
- The non-profit will then have a new truth in housing inspection performed.
- The buyer will then be required to sign an assumption of all required repairs (which is typical with foreclosure properties).
- The buyer will also be required to submit a repair plan for the property including cost estimate, time tables, and contractor names.
- Once received, the non-profit will submit all this information to the attorney overseeing the lawsuit against TJ Waconia. He will approve the sale. How will approve it or what other information he may require is still uncertain.
- Only then can the closing be scheduled as the title company will need this approval in place to proceed.
Quote by listing agent for time requirement from acceptance to closing=90 days!
How does the City of Minneapolis believe this is going to help North Minneapolis? What buyers are going to wait 90 days to close on one of these 141 properties where there are almost 600 other ones to buy?
Thanks for sharing this information. You are right on the money in my opinion. Who in the world would wait when they can go onto the next property?!
Scott,
Turns out, my client has a purchase agreement pending on one of these properties. If it is a code compliance house, the GMHC deems that as a more complete inspection compared to what they will perform. My contact there wanted tons of info, such as, before and after pics of my clients rehabs from the MLS, verification of funds and the code compliance report. Not sure why they would need the report. You would think they could dig that up themselves.
The listing agent was not forthcoming with any of this and we “dug around” for this information ourselves. The agent…or should I say, “licensed assistant Krissy”, actually, seemed to know about it even though the broker didn’t tell us that when they originally said that the house was on the dreaded “list”.
Holy cow, if I didn’t have a sense of humor, I’d be a crazy person. Hmmm….
~ Jeanie Hoholik, Twin City Real Estate Chat
Jeanie Hoholik ~ Twin City Real Estate Chat »
Thanks for the additional information. Just like short sales, I am steering my customers away from these difficult buys right now. Bummer is that they are actually nice properties!
http://www.topix.com/forum/state/mn/T33FF75DCE765SO13/p44#lastPost
I hope you will consider coming to this blog as well.
Thank you!