08-03-2009 HRA MIN - Laserfiche WebLink

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Housing & Redevelopment Authority August 3, 2009 ----------------------------- Page 4 the open house event. Commissioner Toth asked if the foreclosed homes have agents now. Ms. Decker stated that a percentage of them are listed and some are not. She indicated that staff periodicallyworks with realtors to go through the MLS listings. She noted that Mr. Myers has been aggressively soliciting people to list their homes, but that it is difficult for the city to be the "go between" for the mortgage companies and property owners. She stated that the city does provide a foreclosure list to those who request it. Commissioner Toth asked if there will only be minimal amount of foreclosed homes in the open house. Mr. Myers stated that he did not parcel out which are foreclosures and which are traditional sales, and that the primaryfocus is to move Elk River's market forward whether it is large percentage of foreclosed homes or not. He stated that the problem is the foreclosure process is complicated, starting with default to sheriff's sale, to redemption to equitable redemption; anywhere along that process a property can change status. He stated the property could be a short -sell, deed in lieu, or a number of other things could happen to a property. He stated that by the time a foreclosed property makes it into the MLS System, it has an agent. Whether or not an agent decides to participate in this program is not only up to them but also up to the seller. Commissioner Toth stated asked if it was correct that foreclosures technically are not in the MLS inventory. Mr. Myers stated that it depends upon where the property is in the foreclosure process. He stated that a completed foreclosure that goes back to the bank is likely to be listed immediately. If a foreclosure is in the six-month equitable redemption period that Minnesota has, the property may or may not be listed depending upon the option of the owner at the time. The owner has the option of listing or not. If not, he could be looking to short -sell, or allow the foreclosure process to complete itself. Commissioner Toth stated that the NSP program is for foreclosures and we should be promoting the sale of foreclosures. Ms. Decker stated that all the realtors that sign up for the open house, regardless of whether or not their properties are foreclosures, will receive all of the NSP information to give to homeowners and potential buyers, and they can contact the city for more information. Commissioner Toth stated that as a former realtor, he was aware that realtors prefer to sell their own listings. He stated that he is not opposed to the open house but feels the NSP program is for foreclosures. Mr. Meyer stated that the realtors are very aware of the NSP program and have been involved in the discussions. He stated they are very supportive of the NSP program and that all of the city's NSP information as well as their own will be brought together on their web page. Chair Wilson stated it is his understanding that NMRA will be promoting all real estate inventories in Elk River, including foreclosures. Mr. Myers stated that was correct. Chair Wilson stated that some type of press release buy the local paper on the event would be appreciated. 7.1. Other Business - Commissioner Motin Item Commissioner Motin stated that the Highway 10 interchange grant requested was not approved. He stated that the City Council will be discussing howto move forward on the FAST Study at an upcoming meeting. 7.2. Other Business - Commissioner Toth Item