Arena Deal Gives City Tools on Foreclosed Homes, Unregistered Cars

A recent article released by the Milwaukee Journal Sentinel discussed Senate Bill 209, a piece of legislation that includes a “provision that forces buyers of foreclosed properties from Milwaukee County sheriff’s sales to record their deeds.

Arena deal gives city tools on foreclosed homes, unregistered cars

While negotiating a deal for a new downtown arena, Milwaukee officials saw an opportunity to resolve a couple of unrelated but nonetheless nagging problems:

  • How to force buyers of foreclosed properties to record their deeds with the county.
  • How to make sure car buyers are registered with the Department of Transportation.

Buried in the bill that provides $250 million in public subsidies for a new arena for the Milwaukee Bucks is a provision that forces buyers of foreclosed properties from Milwaukee County sheriff’s sales to record their deeds — an action that ensures the new owners will receive the property tax bills.

Another provision requires the seller of a vehicle to register the buyer’s identity with the Department of Transportation — an action that makes it easier for the city to track down those responsible for such things as unpaid parking tickets.

The arena bill passed 21-10 and now goes to the Assembly.

“This was real big deal to the city, so we brought it up during negotiations,” Patrick Curley, chief of staff for Mayor Tom Barrett, said in explaining why the foreclosure provision was attached to the arena financing. “We had a receptive audience, and we saw an opportunity to not just help downtown but to help the neighborhoods.”

The Wisconsin Bankers Association, which is opposing the foreclosure provision, has a different view.

“When we heard that the (foreclosure) provision was in there, we were very shocked,” said Rose Oswald Poels, the association’s president and chief executive.

“It is wholly unrelated to the economic decision” for arena financing.

Property tax bills at issue

Currently, most property buyers routinely file their titles with their county register of deeds even though no law requires they do so. The action provides notice to various governments about who owns a piece of land so officials know where to send tax bills and other vital correspondence.

A Milwaukee Journal Sentinel investigation published in May found that at least 14% of the third-party purchases at Milwaukee County’s weekly sheriff’s sales in the past two years were not recorded with the county. As a result, city and county officials were often unsure of who owned the properties so the tax bills continued to be sent to the former property owner. Those taxes — along with fines for building code violations — often go unpaid.

The foreclosure provision will require the Milwaukee County clerk to forward the deed to the register of deeds when a judge approves the sale of foreclosed property that was sold at a sheriff’s sale.

“The deed will automatically flow from the sheriff to the clerk of courts to the register of deeds,” said Gregg Hagopian, an assistant city attorney who helped draft the provision.

The provision covers only Milwaukee County sales.

The provision’s original language covered sheriff’s sales throughout the state. The banker’s association argued that the provision be limited to Milwaukee County and that lenders be exempt.

Oswald Poels said the association will continue to fight passage of the provision as it moves to the Assembly.

The provision should be introduced as a stand-alone bill so it could be reviewed and debated at public hearings and meetings, Oswald Poels said, noting there are some technical points in the provision that concern the banker’s association. Rep. Evan Goyke (D-Milwaukee) had planned to bring in a stand-alone bill.

“We want the Bucks to stay,” she said. “This has nothing to do with Bucks staying or leaving.”

The vehicle owner registration provision is less controversial. The city has about $14 million in uncollected parking citations to unregistered vehicles.

About 40% of all citations have been issued to vehicles without a registered owner, according to Jennifer Gonda, the city’s chief negotiator in the arena deal.

The provision will not only help the city go after major scofflaws, she said, but will help the city track salvage sales and hold the proper people accountable in accidents.

“It’s a safety provision,” she said.

Please click here to view the article online.

Please click here to view the full proposed text of Senate Bill 209 [pdf].

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties