Selling tax foreclosed properties - It takes a Village10.3.19

Cheri Hipenbecker

Gen. Counsel Knight Barry Title cah@knightbarry.com

Amy Turim

Real Estate Dev. - City of Milwaukee aturim@milwaukee.gov

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By the numbers:Milwaukee, WisconsinCity Population: 599,000Metro Area Population: 1,572,000

St. Louis, Missouri City Population: 303,000Metro Area Population: 2,800,000

Atlanta, Georgia City Population: 498,000Metro Area Population: 5,950,000

Source: HUD ACS & CHAS 2011-2015

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By the numbers:

City of Milwaukee, Wisconsin

Median Home Value: $118,000

Owner-Occupied Homes: 42%

Renter-Occupied Homes: 58%

Median Income: $35,958

Source: HUD ACS & CHAS 2011-2015

#1 City of Milwaukee

How we GET the properties

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Overview - In personam and In rem

6 Mural Artist: Kate Madigan

#2City of Milwaukee

How we SELL the properties

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60 Days

Owner Occupancy Restriction

Partner Broker lists the property

After 60 Days

InvestorsCBOsOwner Occupants

LISTING TIMELINE CITY ORDINANCE + DEPT. PROCEDURE

30 Days

Owner Occupancy RestrictionCompetitive Bid Period500+ Letter

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Common Council Authorization to Use Listing Brokers

Pilot Program - 5

1st RFP - 2014

Pilot Status Ends - 5 more

2nd RFP - 2014

Contracts up - 10 new

3rd RFP - 2017

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2206 N. 37th St.

1730 SF

2/2 Duplex

Built 1894

#3City of Milwaukee

Public and Private sectors UNITE

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1-4 Unit Property Sales Since Jan. 1, 2014:

2,036 Properties Sold

772 Properties Sold by Broker Listing (38%)

Capacity = Built

#4City of Milwaukee

How we make our City BEAUTIFUL

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Shift in OperationsPartnership with Realtors

OLD:Purchase Price + (100% of Scope of Work - sweat equity) = Proof of Funds

CHANGE:Purchase Price + Essential Repairs + Performance Deposit = Proof of Funds

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Regular Sale Essential Repairs

✔ $ 1000 Owner Occupants

✔ $ 2000 Investors (for each/every property)

Project-based Requirements for Code Compliance

BEFORE AFTER

Code Compliance Required Workforce Project

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Partnership with settlement company:

✔ Fund Verification

✔ Performance Deposit Escrow

#5A few words of Caution

What Could Go Wrong?

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https://www.clickorlando.com/news/schemes-and-ripoffs/orlando-home-buyers-lose-46000-in-title-company-impostor-scheme

Cyber risks and best practices● 2 factor

authentication● Educate● Avoid wires?● If it happens, do

you have your team in place?

https://www.clickorlando.com/news/schemes-and-ripoffs/orlando-home-buyers-lose-46000-in-title-company-impostor-scheme

Baltimore - Ransomware and Extortion

● Attack on May 7, 2019 - RobbinHood encrypted hard drive data

● Hackers demanded $76K in bitcoin

● Baltimore said NO - estimated costs of $18.2M in lost or delayed revenue and direct costs to restore services

What affected?● All servers taken offline except

“essential services”. Not all back up until mid-June?

● More than 1500 real estate sales delayed - no water or property tax bills

● Affected hospitals, factories producing vaccines, airports etc…

● Baltimore failed to budget to insure against cybercrime, train and protect

Other cities attacked- Atlanta $17M to repair the damage; Riviera Beach FL paid $600K and Lake City FL pid $500K to get data unlocked

#6Audience

‘Because that’s the way it’s always been done’

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Connect the People in YOUR Village

Lenders

RealtorsCity

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Title Co.

SUCCESSFUL HOME

OWNERSHIP

“I’m a Wisconsin kid, so I like brats and burgers and stuff

like that. Cheese curds.

J.J. Watt

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Thanks for the Invite!

Any questions?Find us at cah@knightbarry.com

aturim@milwaukee.gov

milwaukee.gov/DCD