Point of Sale , Lorain- A history – a result

June 22, 2014 at 1:02 pm 13 comments

taxpayerlorOld buildings have been much on my mind and that of the county in recent days and the legal options
https://thatwoman.wordpress.com/2014/06/19/lorain-county-judges-crowing-with-chandra/
https://thatwoman.wordpress.com/2014/06/20/chandra-cha-chinging-away-county-coffers-and-how-it-is-done/

Living in this , Lorain’s oldest neighborhood, I have watched the deterioration as bank dumped foreclosures were passed around and on and on until as perfectly reasonable homes that were built with pride are left abandoned to their fate.

buy swap sell

No longer, are they the homes they once were in this neighborhood but now a commodity , to be used and abused until they are no longer worth anything.

Some of our home-grown banks are the biggest culprits
https://thatwoman.wordpress.com/2013/07/09/the-pos-and-nuisance-ordinance-a-lesson-in-history/
https://thatwoman.wordpress.com/2013/07/05/the-nuisance-and-point-of-sale-ordinance-lorain/

The Point of Sale will cause some large numbers of “in escrow dollars” and one has hit the headlines in the Morning Journal and all the kerfuffle of Wurmser front etc .

http://www.morningjournal.com/general-news/20140620/lorain-house-sets-record-with-45750-escrow-requirement

wurmser wrecked

AHHHHH!!!!, yes! that house– the Wurmser House – the house of mystery , the house on the “historical inventory register” . You can read all about the “history mystery” of that house here
https://thatwoman.wordpress.com/2012/05/30/lorains-history-mystery-the-wurmser-house-a-tale-of-two-houses/

Let us look at what happened after the tornado– when Wurmser

Henry Oswald Wurmser was a respected architect in Lorain and renowned throughout the state. He was responsible for designing many churches, businesses and residences.

lost one house
Tornado-5th Wurmser

and gained another –the current featured front page news and “poster child ” for the realtors, banks and landlords……

You see this house , like so many others passed from “pride of home to Mr. Wurmser” ( the probably date for this house is after 1924) and his family , a sale or two ( without Point of Sale of course ) a couple of foreclosures more purchasers who lost until what we have now !

property  search

from the MJ article

It appeared the home at 1348 W. Erie Ave. could have an escrow amount that is more than the house is worth.

The home is owned by the Federal National Mortgage Association, commonly known as Fannie Mae.

Oh dear Fannie Mae- well Fannie and her buddy Freddy have caused a lot of “bad happenings with the 2008 sub prime mortgages (MORT old English for “death”) and we can certainly GAGE that with Fannie and the banks.

In the years before the crisis, the behavior of lenders changed dramatically. Lenders offered more and more loans to higher-risk borrowers, including undocumented immigrants. Lending standards deteriorated particularly between 2004 and 2007, as the government-sponsored enterprise (GSE) mortgage market share (i.e. the share of Fannie Mae and Freddie Mac, which specialized in conventional, conforming, non-subprime mortgages) declined and private securitizers share grew, rising to more than half of mortgage securitizations.

Dumped
https://thatwoman.wordpress.com/2012/07/11/banks-banking-on-lorain-business-of-blight-devaluing-lorain/

And another one bites the dust in Lorain and you can see the drooling of the realtors to find the “bone of contention” as proof point of sale isn’t working –

NOTE: I would like to point out the homes in the article have been empty and for sale for a few years BEFORE the January 1st Point of Sale Lorain came into being- couldn’t sell them then either could you?

“It’s not wonderful in any sense of the imagination,” Myers said. “We have properties we can just not sell now. Everybody just walks away because nobody wants to put that kind of money in a house in Lorain.”

IN LORAIN – or just in Lorain’s oldest neighborhoods????

You see Point of Sale “isn’t about this Lorain’s oldest neighborhood or even Ward two and the areas that have deteriorated from homes that held families once upon a time and now hold vagrants, vermin and are the shopping places for copper!

THE POINT of point of sale is to stop in the rest of Lorain, that hasn’t experienced yet the bank dumps and slip shod workmanship as these house are passed around between property pimps from happening in Lorain’s other neighborhoods .

The rot has to stop somewhere – painful as it is and then just maybe the tale of 3620 Clinton won’t be coming to your ward!

My Poster Child of flippers and entrepreneurs
The history of a second chance

3620-clifton-house

Lisa wrote about 3620 Clifton January 13th of 2013

http://bustershouse.wordpress.com/2013/01/13/as-seen-in-lorain-3620-clifton-avenue-and-the-second-chance/

http://bustershouse.wordpress.com/2013/06/16/whatever-happened-to-3620-clifton-avenue/

In that article, it was mentioned that the owners of one of the houses on the demolition list were given a second chance to make repairs. Even though it was noted by Demolition Board member, 5th ward Councilman, and neighborhood resident Eddie Edwards that “Before the sale, the house sat empty for about five years, with its doors and windows open and generally falling apart…” and “The new owners also waited a year before taking action to repair it…” AND the Board went out to see this house for themselves AND took the Fire Chief with them AND talked to the unhappy neighbors – the owners have $17,000 and a plan and that was enough for the Board to grant them a second chance.

“According to this article, “…owners of 3620 Clifton Ave. will get another five weeks to make repairs to that South Lorain home. For a second week, the condition of the structure sparked the most discussion in the demolition appeals board meeting.”

Demolition Board of Appeals meetings are held during the week and are impossible for me to attend. At the meeting held February 28, 2013, the owners were given another month to continue their work on the property. They were granted this extra time because they had roofed and secured the house, plus cleaned up the yard. [

So here we are ONE YEAR and Three Months later and the flip is apparently a flop…..(

No point of sale when this property was purchased….. the house is still “curvy “, “sagging” and not so cute , no electricity and obviously no tenants except of the groundhogs.

June 2014 Canon 318-1

ps 3620

POS is not to make these old neighborhoods better it basically is to stop Lorain’s newer neighborhoods from deteriorating as we have done.

Let us look at the history of the other houses mentioned in the article from the POS Morning Journal

• 330 Connecticut Ave., $12,925; the auditor’s value is $98,680.
330 Connecticut
Ps 330

3204 Garfield Blvd., $19,400; the auditor’s value is $44,420.
3204 Garfield
ps 3204

• 704 E. 32nd St., $28,300; the auditor’s value is $54,350.
This property is owned by NEW SUNRISE PROPERTIES – WHO OWN 28 OTHER PROPETIES IN AND AROUND THE COUNTY
704 32nd
nEW SUNRISE

• 1502 New Mexico Ave. has an escrow amount of $40,500; the auditor’s office valuation of the house is $36,000.

1502 New Mexico
This one is now owned NOW by Veterans Affairs ( another possible foreclosure???
ps veterans affairs

There we have it out of the 4 highest escrow accounts 2 are owned by the “mortgage holders” ( which brings to mind poor business practices of the sub prime) and one non-profit agency.

As they say the rest of the story!!!!!

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Entry filed under: a Cow -elle opinion, Charleston Village, city of lorain, hell is other people, Lorain Multi Property Owners, media, Morning Journal Lorain. Tags: , , , , , , , , , , .

Chandra – Cha-chinging away- County Coffers and how it is done Kinks – On being a hyphenated – American part three

13 Comments Add your own

  • 1. Robert J. Gargasz  |  June 22, 2014 at 1:33 pm

    The point of sale ordinance is an unconstitutional intrusion into the rights of property owners! It has been advocated that this would ensure viability of the housing stock. What it has accomplished is a devaluation of ALL Lorain, Ohio properties. It has shrunk the pool of investors and lenders who want to do business in Lorain, Ohio. It has been pushed by progressive politians who have failed to consider the practical realities of the law despite more than adequate warnings of the local banking, real estate and legal communities. Well the answer to the damage caused is REPEAL! Then debate and consider how you will convince the investing risk taking public community why they should risk doing business in Lorain, Ohio. Lorain must honor the Constitution, the state statutes, it’s contracts and it’s hard working business people! A welfare government desiring excessive control of all that kills off incentives and profit by greater regulation, higher taxes, unrestrained over-budget spending and ever escalating anti-liberty policies will result in the destruction of America and Lorain has again fallen prey to these Marxist policies! Where to start, order the removal of Obama and Kasich pictures so prominently displayed in City offices and plaster the Bill of Rights and the Constitutions applicable to the walls of government and require that each employee and official read the same!

  • 2. Loraine Ritchey  |  June 22, 2014 at 2:27 pm

    I have to disagree – POS is all over this USA- I am sure that point would have been taken to the courts eg. Lakewood by now- and quite frankly the banks have devalued Lorain with their dumping and so this neighborhood goes so does Lorain . On my block alone the dumped houses went for no more than 11,000 what do you think happens to my property values well lets see the latest house up for sale which was purchased a few years ago in the 80’s now 29,000 the house next to the demo house next door just over 10,000 house on the corner of 5th and Oberlin was on the market for $1,000 yes that is right First Federal trying to sell it for one thousand dollars.. Sorry but I will have to disagree on this one the “behavior” has to stop here and if the investors see the articfe on who owns what in Lorain these caliber of investors I am sorry are takers not giving Lorain a positive image

    s

    PROPERTY OWNERS AND NUMBER OF PROPERTIES OWNED

    GEORGE SCHNEIDER = (Under his own name) = 164
    Also
    G AND S PROPERTIES = (INCLUDING Jay Metals 1965 E 28th) 3

    Also a
    GNS PROPERTIES = 1
    GEORGE (misspelled ) SCHENIDER= 6
    Also affiliated with
    reds
    REDS ALL AMERICAN RECYCLING = ( David Carter) = 52
    DAVID CARTER= 12

    Also affiliated with

    FGSK PROPERTIES (inc Gustav AND Anna Krause) = 19
    GUSTAV KRAUSE = 12
    ANNA KRAUSE = 6
    TOTAL PROPERTIES FOR THIS GROUPING = 275

    ED Note- You can find the linkage in this post https://thatwoman.wordpress.com/2012/09/07/who-holds-the-key-george-schneider-david-carter-gustav-krause/

    landlord leasing

    DEAN HUNKER ( AMHERST) – LANDLORD LEASING -IS ALSO-
    BELLA VILLAS LLC 3
    BETTER HOMES INVESTMENTS LLC 25
    BRADEN CAPITAL LLC 14
    CROSSROADS LLC 13
    GRAND HARBOUR HOLDINGS LLC 8
    JCA FUITION REALTY 3
    SELECT RESIDENTIAL LLC 20
    WILLOW CREEK INVESTMENTS LLC 22
    MIDCITY RESIDENTIAL INVESTMENTS 29
    JCA PROPERTY 2
    TOTAL PROPERTIES UNDER DEAN HUNKER LLC’S = 139

    Kent Sutton
    Kent Sutton

    KENT SUTTON (AMHERST) 19
    KTS LLC 77
    SUTTON RENTALS 46
    TOTAL PROPERTIES FOR KENT SUTTON AND CO =142

    DEBORAH AND JOSEPH AKIN – NORTH RIDGEVILLE
    TOTAL PROPERTIES FOR AKIN = 47

    JASON E DAVIS AND GINA )- DAVIS PROPETY RENTALS – GRAFTON
    TOTAL PROPERTIES FOR DAVIs = 31

    LEWIS STRNAD – deceased –without a will- properties not being well managed
    TOTAL PROPERTIES FOR STRNAD = 47
    *****All data gathered from the Lorain County Auditors site June 29th 2013 and print media archives

    Research as to the number of property owners listed under LLC and Ltd. companies:
    llc-2010

    ** All data gathered from Lorain County Auditors site, Ohio Secretary of State June 29th 2013 “Clarification” the only LLC shown below are those that are not under known names – such as Spitzer, Veard, religious communities, funeral homes etc.

    The number of LLC’s tracked totaled “197” OWNING PROPERTY IN LORAIN.

    THEY OWN APPROXIMATELY 2,289 PROPERTIES / PARCELS BETWEEN THEM

    ” 193” TRACKED BACK TO “OWNER PLACE OF RESIDENCE”

    “146” OUTSIDE LORAIN LLC. ETC OR “75.64 %” percent of ownership is outside Lorain

    47 LORAIN OWNED LLC ETC. or 24.35 %

    ******Breakdown is as follows (OUTSIDE OWNERSHIP) PROPERTIES CAN RANGE FROM 1 PARCEL TO over 100 AT THE TOP END)

    AMHERST = 30 REG. LLC = 15.5 %
    ELYRIA = 12 REG. LLC = 6.2 5%
    WESTLAKE = 11 REG. LLC = 5.7%
    AVON = 10 REG. LLC = 5.2 %
    AVON LAKE =7 REG.LLC= 3.6 %
    NORTH RIDGEVILLE = 7 REG.LLC=3.6 %
    SHEFFILED LAKE/VILLAGE= 6 REG.LLC= 3.1%
    CLEVELAND = 5 REG.LLC= 2.5%
    VERMILION = 5 REG.LLC =2.5%
    COLUMBUS = 3 REG.LLC = 1.55%
    CALIFORNIA= 3 REG.LLC= 1.55% NOTE AT LEAST ONE CALIFORNIA OWNER HAS 58 PROPERTIES
    PENNSYLVANIA= 3 REG.LLC = 1.55%
    HURON- 2 REG.LLC = 1.03 %
    WELLINGTON= 2 REG.LLC = 1.03%
    LAKEWOOD= 2 REG LLC. = 1.03 %
    FLORIDA = 2 REG.LLC= 1.03%
    BEECHWOOD= 2 REG LLC= 1.03%
    NORTH OLMSTEAD = 2 REG.LLC = 1.03%
    MEDINA= 2 REG.LLC = 1.03%
    GRAFTON= 2 REG.LLC = 1.035
    AURORA= 2 REG.LLC= 1.03%
    BAYVILLAGE= 2 REG.LLC= 1.03%
    CANADA = 2 REG. LLC =1.03% (NOTE: ONE IS FOR A TRAILER PARK)

    BRECKSVILLE, COLORADO, TEXAS, AKRON, ARIZONA , TOLEDO, KENT, UNION TOWN, CHAGRIN FALLS, MARSHALVILLE, ROCKY RIVER, MILAN, NORTH ROYALTON, AKEMAN, CHAGRIN FALLS, NEWARK OH, LICHFIELD , STONGSVILLE, SEVEN HILLS, BRUNSWICK , ST. MARY’S, OBERLIN 1 REG LLC

  • 3. Tammy Ramirez  |  June 22, 2014 at 4:15 pm

    I completely agree with the POS and so do those who live in the these places! Why would a family want to move into an unsafe home? Most banks use an appraiser before they will lend the money, do you think the appraiser is going to sign off on some of these places? And home buyers (those who plan to live in the house and contribute to the community) have the house inspected so they know what the issues are. The real issue is the slum lords who want to pick these places up for $5000.00 then get their money out of them the first two years they have them and do as little as possible with the upkeep. Even with Section 8, they have to meet basic requirements. I wonder how many of the rentals listed above are part of the section 8 program?

  • 4. ladalang  |  June 22, 2014 at 5:27 pm

    I agree with Robert. It is Unconstitutional POS is a train wreck. It keeps young families from buying a fixer upper low cost home and making it into valuable housing stock. The only direction for POS is to be repealed. We have far too much deterioration for it work. We’re past the tipping point. It’s like “day late dollar short” legislation. Frankly it’s embarrassing that our leaders actually put it in place. Anyone who has any real estate experience beside just looking out their front window at their neighbors homes will tell you this is terrible legislation that will only allow nice homes to sell and the older run down homes to sit or be bank owned and eventually demolished. People will just walk away and let the banks deal with it. Once more people are affected we’ll have angry mobs at city hall demanding it be stopped.

  • 5. Loraine Ritchey  |  June 22, 2014 at 6:04 pm

    I did the research Joyce and not just outside my window- I live in the dumping ground and the landlords of hell I have watched the dying process

    – this isn’t about families and buying a family home – this is about people being able to purchase homes that meet minimum inspection standards and the rest of Lorain not going the way we have in this ward and 5th.

    I agree the legislation needs to be tweeked in some areas but had a point of sale inspection been in place 20 – 30 years ago we would NOT have the glut of George Schneider, Lewis Strnad , etc properties. we have now – those numbers don’t lie. We certainly wouldn’t have had the Wurmser House poster child.

    Tammi is correct most banks use an appraiser ( when families etc try to purchase the VA does and so does HUD – but when George Schneider acts as the bank for his buddies to purchase properties for pennies on the dollar as the banks like First Investment dump those properties – he does NOT do an appraisal. The flip them between each other and the “citations die with each new Building permit pulled —-

    This legislation may need to be tweeked but I disagree it should be repealed .

  • 6. ladalang  |  June 22, 2014 at 6:11 pm

    My point was the city needed to consult real estate professionals to learn the ramifications of this legislation. I wasn’t referring to you.

  • 7. Loraine Ritchey  |  June 22, 2014 at 7:06 pm

    the problem is Joyce real estate professionals have their own agenda—– I do know the current administration had researched the legality the programs – not only in Ohio but through out the mid west.

    And whilst I agree it certainly isn’t a great solution for those areas and buildings already past the tipping point in these old neighborhoods – and quite frankly it was never meant to be a solution in those neighborhoods it is meant for the areas that haven’t reached the glut of “distressed properties” we have here.

    One problem I can see is that for instance the Wurmers House – it is now what it is – too is “underwater” the home needs more money poured into it than the realtors say it is worth – so what happens
    ( remembering that it already sat on the market for about 3 .5 years BEFORE POS and nobody wanted to purchase.

    We had the same problem on 958 Lakeview with the Direct Action House
    http://chronicle.northcoastnow.com/2013/08/14/action-slow-for-lorain-houses-demolition/

    “Leon Mason, Lorain’s deputy safety service director for community programs and affairs, said building a new house is unlikely because the cost of demolition and construction far exceeds area property values” and the latest info
    3/7/2014 $0 2014090788 1
    Parcel Grantor Grantee
    0202028103034 DIRECT ACTION FOR CENTRAL LORAIN CDC
    now owned by the CITYOF LORAIN

    A tear down which is a shame this house went from $121,300.00 at its highpoint in 2006 and changed hands 7 times since 2005 and anytime had there been a minimum standard of POS this city would not have ended up owning a this now decrepit home.

    What can be done – I believe the city is asking not only for minimum standards ( the time of the building codes as to when the home was built) I in my 1926 home do not have to meet the same building codes (when selling ) as does my daughters 2007 new build. But they are saying if you are buying a property that needs work then they are asking validation that you intend to rehab and that you have the money to do so. See the Clifton House and the city bent over backwards to help those flippers ( much to the annoyance of those that attended those demo hearings)

    As for the underwater homes – maybe there is a compromise as to the amounts and capping. All I do know is doing nothing doesn’t get us anywhere .

  • 8. ladalang  |  June 22, 2014 at 7:45 pm

    Agenda? The city has the worst agenda. I would trust a realtor’s agenda before I would trust the city’s. They want to be able to do business in Lorain without too much red tape. POS blew that concept out of the water. They made it legal for the city to decide if a house sells; that’s insane in a free society. They just want that inspection money on every house that sells. They don’t really care what the city looks like. Look around!

  • 9. Wordpress Blogs - Wordpress Blogs .NET  |  June 23, 2014 at 10:09 am

    […] Point Of Sale , Lorain- A History – A Result June 22nd, 2014 — “Old buildings have been much on my mind and that of the county in recent days and the legal options https://thatwoman.wordpress.com/2014/06/19/lorain-county-judges-crowing-with-chandra/ https://thatwoman.wordpress.com/2014/06/20/chandra-cha-chinging-away-county-coffers-and-how-it-is-done/ Living in this , Lorain’s oldest neighborhood, I have watched the deterioration as bank dumped foreclosures were passed around and on and on until as perfectly reasonable homes that were built with pride […]” 8 Comments […]

  • 10. Joe Koziura  |  June 25, 2014 at 12:47 am

    I enjoy reading your comments. You do great research and your points are well taken. I believe that POS will be positive for the city. I wanted it back in the late 1990’s and I am convinced the housing stock would not be in its present condition.

  • 11. thatwoman  |  June 25, 2014 at 11:41 am

    I agree Joe and it is so sad what has happened and continues to happen to some of the historic homes in his neighborhood as they become derelict . Lorain has to do something to stop the rot in my opinion difficult though it may be at first. For the mega landlords some with over 250 homes . these homes are part of their “business” inventory and imho their businesses should be treated as a “business” one that is having a negative impact on the area.

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