Guest post and photos by the Hawthorne Hawkman
Residents in Hawthorne and Jordan have been passing on all sorts of helpful information about Pamiko Properties, so don't give me too much credit here. (For JNS readers joining this story in progress, a $2.5 million dollar foreclosure was discovered, leading to a more complete list of properties owned by Pamiko.) But my Hawkman superpowers include mortgage geekiness, and that came in handy today when I went down to the Hennepin County government center to look at Pamiko mortgage documents...
My initial guess was correct: The multimillion-dollar foreclosures at 4652 Aldrich Ave N, 2420 Bryant Ave N, and 1417 Logan Ave N were lines of credit encompassing multiple properties. Minnwest Bank Metro was the originator of these lines of credit, but Aspen Funding LLC also gave at least one, if not as many as three $500,000 lines of credit to Pamiko.
There is plenty of strangeness that abounds when looking at all these mortgage documents. I wish I had pdf links for you, dear JNS readers, but Hennepin County charges $1 per page. Given the vast amounts of documents on these three properties alone, I'd guess it would be around $400 just to print off all the documents I'd want.
So what follows is my summary of what I've found so far. And here is a detail probably so minute that it matters to me and perhaps three other people: The dates listed below are the dates when the mortgage documents were RECORDED with the county, not the dates when the events actually happened. Documents appear on searches at the government center based on recording dates, even though there's sometimes a 2-6 week lag between transaction and recording. I didn't have time to examine each document for the date of the transaction. Here's what I got:
4652 Aldrich Ave N
On 4/18/08 Liquidation Properties transferred the property to Pamiko via quitclaim deed. On that same day, Minnwest Bank gave Pamiko a $149,850 mortgage. Fellow mortgage geeks will note that even the transfer of property via quitclaim instead of warranty deed makes the deal fishy from the get-go.
On 10/17/08, a mechanic's lien is filed against the property by United Products Corporation of America (now THAT'S an original name) for $1,340.09 for siding work that went unpaid. On 1/4/09, Aspen Funding LLC approved a $500,000 revolving line of credit, and this property secured it. The $500,000 was applied to a long list of properties, which will be posted immediately following the summary of 4652 Aldrich Ave N. Many of those properties are already listed on the "Unabridged Pamiko List," although some were owned by Marklee Construction, and there are a few new ones too.
On 5/18/09, a notice of lis pendens was filed. This is the first public notice of an intent to foreclose. The pre-foreclosure action was taken by...United Products Corporation of America, for roughly $12,500 in unpaid mechanic's liens.
Six weeks AFTER a property almost went into foreclosure because the owner (who had a $149,850 mortgage and a $500,000 line of credit on the property ALREADY) couldn't or wouldn't pay $12,500, what did Minnwest Bank do? Some genius thought it would be a good idea to give Pamiko EVEN MORE MONEY. On 7/2/09, the mortgage was amended and increased to a maximum of $1,318,000.
On 10/20/09, a sheriff's certificate was filed, and the property went into foreclosure. So giving Pamiko a million dollars more didn't work out so well.
Here is a list of properties secured by the line(s) of credit at 4652 Aldrich Ave N. I will do another post about the properties appearing below that have not yet been researched. There are 59 properties here, so the list is long.
3053 15th Ave S
2626 Cedar Ave S
2321 Lyndale Ave N
1211 Knox Ave N
1403 21st Ave N
828 19th Ave N
2402 4th Ave S
2706 Girard Ave N
2719 Fremont Ave N
1547 Hillside Ave N
2420 Bryant Ave N
1318 Queen Ave N
1016 Newton Ave N
1414 16th Ave N
2708 Bryant Ave N
2435 Portland Ave S
3025 Clinton Ave S
1507 Newton Ave N
2905 Colfax Ave N
1611 Hillside Ave N
2710 Girard Ave N
1605 Girard Ave N
726 Morgan Ave N
1608 Hillside Ave N
2918 Colfax Ave N
3242 6th St N
2727 Girard Ave N
1229-31 Oliver Ave N
1622 Girard Ave N
1100 24th Ave N
907 Penn Ave N
3223 Fremont Ave N
3531 Emerson Ave N
2013 Hillside Ave N
1417 Logan Ave N
2211 6th St N
3101 Dupont Ave N
4652 Aldrich Ave N
3015 Oliver Ave N
2701 Aldrich Ave N
3213 4th St N
2943 Morgan Ave N
1812 16th Ave S
817 Penn Ave N
2827 Emerson Ave N
2400 Lyndale Ave N
2119 4th St N
1317 Emerson Ave N
621 26th Ave N
2316-18 Fremont Ave N
2736 16th Ave S
2314 Sheridan Ave N
2420 James Ave N
3238 Aldrich Ave N
1340 Sheridan Ave N
1017 22nd Ave N
2931 Bryant Ave N
4100 Dupont Ave N
2420 Bryant Ave N
On 9/21/07 A trustee's deed from Bank of New York was granted to Pamiko Properties, and Gemini Equity gave a loan of $178,750.
on 7/14/08, Minnwest Bank granted a line of credit with a maximum of $2.5 million. There were thirteen properties listed at the point of the line being granted:
2420 Bryant Ave N
2708 Bryant Ave N
1507 Newton Ave N
1611 Hillside Ave N
726 Morgan Ave N
3119 Queen Ave N
1016 Newton Ave N
3025 Clinton Ave S
2435 Portland Ave S
2905 Colfax Ave N
2710 Girard Ave N
1318 18th Ave N
1414 16th Ave N
If you're starting to see an overlap of some of the same properties as were listed above, you're not alone. I don't have details yet as to exactly why this is the case. However, I can think of a lot of bad reasons and very few legitimate reasons on how and why this would happen.
On 1/16/09, a $500,000 line of credit from Aspen Funding was placed on this property (we're still talking about 2420 Bryant, in case anyone's getting lost in the sea of failures here). One of the documents on this line is a list that appears to be the same 59 properties as 4652 Aldrich. I haven't had a chance to review that list to see if it is the exact same or just very similar. Also, I haven't confirmed if this is a separate $500,000 line of credit or if that line is secured in part by this property as well. But it's still fishy.
On 5/14/09, a loan modification of the Minnwest Bank loan was filed. From what I can tell the only substantive change was to include MCK Investments as a mortgagee. JNS readers speculated whether MCK Investments was Michelle Koenig's company, and the loan documents indicate that is indeed the case. Exhibit C of that document included the following properties:
1417 Logan Ave N
2727 Girard Ave N
1608 Hillside Ave N
1100 24th Ave N
907 Penn Ave N
2211 6th St N
2013 Hillside Ave N
3025 Clinton Ave S
2435 Portland Ave S
2905 Colfax Ave N
726 Morgan Ave N
3119 Queen Ave N
1016 Newton Ave N
2918 Colfax Ave N
1622 Girard Ave N
3242 6th St N
1229 Oliver Ave N
3223 Fremont Ave N
3531 Emerson Ave N
2420 Bryant Ave N
2708 Bryant Ave N
1507 Newton Ave N
2710 Girard Ave N
1318 18th Ave N
1414 16th Ave N
1605 Girard Ave N
And one property where a legal description but no "common address" is given.
On 8/24/09 a notice of intent to foreclose was filed, and the sheriff's sale occurred on 10/20/09.
1417 Logan Ave N
On 11/7/07, US Bank sold the property to Pamiko via a trustee's deed. On 12/17/07, a mortgage from First Minnesota Bank was filed, with a maximum line of credit of $47,200. On 2/25/08, that line was increased to $77,210.
On 8/29/08, Minnwest Bank granted a line of credit up to $2,045,000. The following properties were listed under this line:
1417 Logan Ave N
2918 Colfax Ave N
1608 Hillside Ave N
1100 24th Ave N
907 Penn Ave N
2211 6th St N
2013 Hillside Ave N
2727 Girard Ave N
1622 Girard Ave N
3242 6th St N
1229 Oliver Ave N
3223 Fremont Ave N
3531 Emerson Ave N
Once again, there is significant overlap between these properties and those secured by other lines of credit. And once again, although it's not clear why, the likelihood that this is legitimate decreases even further.
On 1/16/09, an Aspen Funding line of credit of $500,000 is recorded on this property, and the what appears to be the same 59 properties are also listed here. This could be a repetition of the same loan, or it could be a second or third half-million line of credit. On 5/14/09, this loan was modified, although it's not clear (from my notes, at least) exactly what changes occurred.
On 6/8/09, the Minnwest loan was modified. This time, the credit limit was lowered to $1,520,000, but MCK Investments was added to this loan as well. Just like at 2420 Bryant, this did not bode well for the property or the loan. On 8/27/09, a notice of intent to foreclose was filed, and the sheriff's sale was filed on 10/20/09.
A more speculative post about what all of this might mean will be forthcoming. For now, getting the information out is paramount. JNS Readers, feel free to post comments, and pose questions. I'll do my best to use the information you provide, and to answer questions as well.
O.M.G.....
ReplyDeleteO....M......G......
holy &*#@$!^ %#@>!!!!!!
Thanks for the great detail in this post. As one of the 3 people in the world who care about your point regarding transaction date vs. recording date, I would make the following 2 comments:
ReplyDelete1. A notice of lis pendens is recorded notice that court proceedings are pending. This can be due to foreclosure of a mechanic's lien (and usually is), but it can also relate to any other issue involving real estate that would be settled in court.
2. I agree with you that so far what you have unearthed regarding the indebtedness of Pamiko, et al. is stupid and irresponsible on the part of the banks, with a side order of neighborhood devastation thrown in. However, that alone doesn't make the loans "illegal" per se. Commercial lending transactions can be much more individualized in their structure compared with loans for personal residences.
That having been said, is it possible to turn this research over to bank regulators? Perhaps they would investigate the stability of the banks involved, and their lending practices. Legal or not, stupid and irresponsible are not OK in the banking industry. Since NoMi is left to deal with the neighborhood devastation, I think that's only fair.
Good work, Hawkman, good work!
ReplyDeletesorry random unrelated to post comment. have you heard of all the break-ins by the pond? I think 5 more in addition to the one you documented here.. what to do?
ReplyDeleteNot aware of the other break-ins. Can you provide more details without naming the addresses of the citizens who were robbed?
ReplyDeleteA general comment about this blog post: this is looking very big. It is bigger than this blog and our ability to get to the bottom of this. I hope to write an editorial in the near future but, for now...
ReplyDeletePoliticians. Journalists. Prosecutors and law enforcement. Take note of what is documented here and come to the aid of our neighborhood.
Help, help, help.
Something smells rotten in Pamiko-land.
I have also heard of more break-in's around the pond area. I will try to find out more info and post it back here, being sensitive of privacy, I'll do what I can.
ReplyDeleteHere's a little of what I have found, feel free to add more..
ReplyDeleteIncident Location: 2724 James A N
Date and Time: 12/17/2009 6:45:00 PM - 12/17/2009 7:30:00 PM
Offenses Recorded: Burglary of Dwelling Public Information:
Unknown suspect(s) first tried to gain entry by removing a screen from a rear ground level window, but apparently abandoned this when they found a pit bull inside the house. Suspect(s) then entered vcitims basement room by breaking out an egress window. ...
Incident Location: 2520 23 A N
Date and Time: 12/17/2009 5:30:00 PM - 12/17/2009 10:30:00 PM
Offenses Recorded: Burglary of Dwelling -Public Information:
Officers were dispatched to the listed location on a report of a BURGD. Upon arrival Officers spoke to V1. V1 said when she returned home today she found her front door unlocked and she never leaves the front door unlocked. When she went into the house ...
Incident Location: 2700 James A N
Date and Time: 12/16/2009 8:30:00 AM - 12/16/2009 7:45:00 PM
Offenses Recorded: Burglary of Dwelling -Public Information:
On the listed date and time the victim arrived home to find her back door was open and a window had been broken in. The victims loss is listed and was given a blue card. Car 21 responded to process the scene. No suspect information at this time.
Incident Location: 26 AV N / Logan AV N Date and Time: 12/11/2009 5:47:00 PM - 12/11/2009 5:49:00 PM Offenses Recorded: Robbery of Person -Public Information: Victim reported being robbed at gun point ...
Incident Location: 2649 James A N
Date and Time: 12/12/2009 2:00:00 PM - 12/12/2009 3:00:00 PM
Offenses Recorded: Burglary of Dwelling -Public Information
Victim came home to discover her rear door kicked in. Suspects kicked in the rear door of the home which is a patio door that is apprx 3 feet above ground level with no deck yet built. Unk how suspects were able to brake the door lock as it is apprx 6 fee ...
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Here's something that seems connected: don't think it's residential.
ReplyDeletePAUL KOENIG
ADDRESS
5575 County Rd #101
Minnetonka, MN 55345
PHONE
(612) 799-4405
Employment History
Marklee Construction Llc
Position: Member
Actually, I do think that address on Cty Rd 101 in Minnetonka is residential - I found it on google street view and it's all homes around there. Not sure that's his most recent, perhaps once he started pillaging our neighborhood he moved his family to a roomier, cushier 'burb.
ReplyDeleteBastard.
I believe this is a picture of them with their racehorse "Creative Control" - it's about half way down the page,
ReplyDeletelook for a brown horse with number 6 on his saddle pad... Says "Creative Control" under one of the pics.
http://www.starofthenorthbloodstock.com/currentrunners2007
there were 2 break ins on the 2700 block of knox. one while the homeowner was there.
ReplyDeleteand then 2 on the 2700 block of james ave. n.
and yesterday my alarm went off in the middle of the day, but when i and the police got here, there was no sign of entry or anything.
wonder what all should do?
Megan
ReplyDeleteThat might be him in the photo - the 4th guy from the left. He is bald and kind of fat, but when I tried to enlarge the photo all the facial features were too blurry for a positive ID. Where's the CIA and all their fancy equipment when we need them??
One more tidbit: By his own admission, Paul K is hardcore Republican (surprise, surprise) and really dislikes all these city liberals.
you really need to get that 'recent comments' gadget thingy.
ReplyDeleteHoly Balko and Helgason, Hawkman! This smacks of some sort of potential wrong-doing... This seems like it's a pyramid of cards that's tumbled down... even though much might be somewhat protected by "Limited Liability" I would hope that this info is reviewed and forwarded to some one or some agency that can really dig into what's going on here...
ReplyDeletehttp://apps.ci.minneapolis.mn.us/PIApp/StructureInformationRpt.aspx?Structure=All&Action=Show&PIN=3910
ReplyDeleteHere is another property at 818 19th Ave NE owned by
PAUL M KOENIG -- 651-776-4730
8362 TAMARACK VILLAGE #119-207 , WOODBURY, MN 55125
that appears to be financed through the US federal Credit Union.
I am waiting for the day when rental licenses will be handled more like liquor licenses. When a liquor license is applied for, if it's in a company name, all owners of the company must be identified in the application and a provision must be added to the company bylaws to require that in the event that the ownership changes, the city must give the OK to the change in company ownership. That way it is crystal clear who is holding. I think there is also a restriction on the number of liquor licenses people can own. How about a similar limitation on rental licenses?
ReplyDeleteSuch requirements could be implemented starting with new licenses issued, and with old licenses as they come up for renewal. Current bulk owners of rental property would probably need to be granfathered in, but when such owners inevitably implode, the successors would be held to the then current licensing requirements.
Or is that just rediculously simplistic?
AKL
@AKL - very logicaly proposal, Perhaps you should write that up and send to CM Don Samuels, who is chair of regulatory services (atleast he was, up until end of this year)
ReplyDeletealso - as many of us have vocalized before, we (citizens) should have the ability to search by property owner name, and see all properties owned by that individual.
And for investment entities, the inc's and llc's and such... I think principle partners should be required to be listed, and again have search capabilites by the partners names. Imagine how much that would untangle and dissolve some of the smoke infront of the mirrors.
Appears to be a sound proposals.
ReplyDeleteHow about annual inspections on subsidized rental property also?
Why are we subsidizing substandard housing so that shoddy developers can make a profit on the underprivileged?
Why can't the City/County/State enforce their Nuisance Property Laws? This would add teeth to prevent communities from being impacted by developers who run amok.