Tuesday, May 4, 2010
Pamiko-Induced Foreclosure Crisis Gets Even Bigger
Post and photo by the Hawthorne Hawkman
I've been stopping at the Hennepin County Government Center on occasion when I've had other business to do downtown recently. In what little spare time I've got, I researched more about various slumlords and the mortgages behind them. I found out something new on the property above, 3053 15th Ave S.
On 5/23/05, a $575,000 mortgage to Marklee Construction, a company known to be operated by Paul Koenig, was filed against this property by US Federal Credit Union. But the dollar amount wasn't the only thing that was strange about the loan. There was also...
...a satisfaction of the mortgage filed on 2/23/06. US Federal Credit Union signed off on the satisfaction, but it was a senior mortgage loan officer, Pete Olson, who did the deed. Fellow mortgage geeks will recognize how rare it is for a mortgage originator to be involved in signing satisfactions in any way whatsoever.
But little quirky things like this wouldn't merit a blog post all by their lonesome. On 11/5/08, US Federal Credit Union filed an intent to foreclose on 3053 15th Ave S AGAINST PAMIKO, not Marklee Construction.
But wait, there's more! The original mortgage to Marklee Construction included a total of ten OTHER properties as collateral. The first seven are currently owned by private individuals, so it's possible that Koenig sold them properly. Those seven properties are:
1418 11th Ave N
625 Newton Ave N
1032 Knox Ave N
1034 Knox Ave N
3434 6th St N
2822 Colfax Ave N
1317 Knox Ave N
There were three properties besides 3053 15th Ave S that are currently listed on the Hennepin County website as owned by US Federal Credit Union. I believe it is reasonable to assume that US Federal foreclosed upon these properties while Koenig or one of his LLC's was the owner.
2200 Irving Ave N, which is boarded and vacant.
3128 5th Ave S
2324 Queen Ave N
None of these properties is on the Unabridged Pamiko list.
The more one digs into the Pamiko problem, the worse it appears. When will charges be filed against Koenig? That seems inevitable at this point.