location, the block adjacent to the new shopping center at Alton and Fifth Street. Porosoff saidhis ballpark price is $1.5 million.Our photographer spoke with Porosoff after noticing the property was sold.
He said it was thedeal of a lifetime. He boasted that it took two years to complete the transaction, and that he hasdone many realty deals in the past thanks to favors from city officials, implying that they helped
him secure the property dirt cheap.”
Porosoff, when questioned about the low purchase price, said he only wished it was $110k, thatit was actually unimaginable, and that he absorbed liabilities the seller had.He certainly owes thanks to Melinda Payan, who was the listing agent for the property. Payanowns The Truth About Lending company, which specializes in the negotiation short sales for homeowners.
The suggestion that the city had anything to do with negotiating or setting the value is
completely false,” she said. “On a short sale the b
ank is the only one that determines the value.After seven months of negotiating with Bank of America I finally got the short sale approved onthe property. There were three different appraisals on done, and at the end of the day the bank determined the value based on their licensed appraisers.
When asked for the value of the bank appraisals, she informed us that banks do not discloseappraisal values in short sales. That is, the appraisals are proprietary. As for the suggestion of impropriety, it appertained to alleged cooperation or negligence of city officials in allowing the property to become an eyesore endangering the public. Our suggestion was to impose severalhundred thousands of dollars in fines on the property and to foreclose or seize it, which wouldhave a profound effect on its valuation.Payan initially contacted us after reading our 2012 article on the troublesome property,
„AnAppearance of Impropriety,‟
to inform us that the owner had an active contract to stay with aninvestor who planned to fix up the property and restore it to good condition. She said Bank of America had sent their appraiser out to the property to appraise it, but since they were unable toaccess the first floor of the building, they claimed that they could not appraise the house so thereis nothing they can do but close to file. She did not accept that excuse because there were other ways to view and appraise the property. Actually, loosened boards could have been pulled back for access.
I have forwarded a copy of your article to the asset managers at Bank of America and I believe
that will help a lot,” Payan said.
If Bank of America prevents the sale, I will be down therestanding with signs in front of the building and calling the local news. We have to take our town back and clean
it up one property at a time.”
We asked her about the $110,000 selling price after the transaction took place.
is what it sold for
,” she said,
but keep in mind it was technically a tear-down thatcould not be torn down because of the historic nature. The property was just a shell the entireinside was gone, no electrical, drywall, et cetera, in really bad shape. The buyer took responsibility for part of the liens, the bank paid a portion. As far as fines go I know we received