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Time will cure the Blue Heron
Published Friday, February 8, 2008
It was a sad day last Friday when the developers of the proposed Blue Heron Bay were notified that they were being foreclosed upon.
Company officials planned to build a 94-unit housing development on the land. At one time 151 units were proposed.
Some championed the project, many more saw Blue Heron Bay as a death blow for Dead Lake.
The development resulted in many contentious debates at coffee shops and zoning meetings.
But putting all the tension aside, we never like to see anyone fail in Otter Tail county, especially to the tune of $3 million — the sum Blue Heron Bay president Jim Erickson says will be needed to refinance the loan and redeem the property. The BHB property is currently on the market for $5.9 million.
A sheriff’s sale of the BHB property is slated for March 13. State law allows a one-year redemption period in which to refinance or sell foreclosed property.
Timing is everything — especially in the real estate market. We hope the time will come again when the right project can be proposed that will work for Dead Lake and the land company that worked hard to make the Blue Heron a reality.
Comments
The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Witty is great. Abusive is not. If you think a post violates these standards, don't escalate the situation. Instead, flag the comment to alert us. We'll take action if necessary. It's not hard. This should be a place where people want to read and contribute -- a place for spirited exchanges of opinion. So those who persist with racist, defamatory or abusive postings risk losing the privilege to post at all.Posted by misadventurer (anonymous) on February 8, 2008 at 12:54 p.m. (Suggest removal)
Doesn't the editor even read the articles written by their staff? The article written by Mr. Hintgen was very clear that the crook(s) behind Blue Heron Bay were elated that the bank had foreclosed on the property. Mr. Erickson of Blue Heron Bay was almost crowing about how he was "going to conserve their cash and let the bank carry the debt" with the stated intent of redeeming the property. They didn't fail in Otter Tail County, they just don't have the 'nads to take something less than the windfall they had anticipated.
Normally, before foreclosure proceeds something has to make it happen, like not making the payments you agree to make. Here's an outfit that sold a bit over 50 acres from the parcel to the State of Minnesota for something near $1.5 million recently, and still missed payments..............no better than a shoplifter at WalMart thinking "well they won't miss it...."
Posted by misadventurer (anonymous) on February 8, 2008 at 1:10 p.m. (Suggest removal)
I was so shocked by the editorial that I forgot to include a link to the relevant article. This article should have carried the headline "Scam Hits Otter Tail County". http://www.fergusfallsjournal.com/news/2...
Posted by bucksteel (anonymous) on February 8, 2008 at 1:14 p.m. (Suggest removal)
It's not a crime to go through the foreclosure process. And calling people "crooks" can be considered libelous unless you have proof that they committed a crime. Blue Heron had a contract with the bank. Part of that contract specifies what happens if payments are not made in a timely fashion. That is what is happening. The payments that are not made have been and will be added to the outstanding principal, and interest will continue to accrue until it is settled. Just because you do not agree with another's actions and/or are ignorant of how our banking system works, does not make someone a criminal.
Posted by number6 (anonymous) on February 8, 2008 at 3:25 p.m. (Suggest removal)
For "misadventurer" to illude to the fact that BHB took the proceeds from the $1.5 million dollar sale and kept them instead of paying down on the loan is incorrect. The original note amount with the bank was for $4,275,000. When the tract was sold to the State of Minnesota the bank, having the first lien on the property, has to concede to releasing the tract being sold, thereby requesting monitary compenstaion for that release. The redemption amount that is listed on the sheriff's sale is $3 million. It doesn't take a rocket scientist to figure out that BHB paid down a considerable amount to that loan at the time of the sale. Again, that amount was determined by the bank, not what BHB decided to give them. Also, by not making your payments as agreed upon, the interest is not forgiven as you implied. When they redeem that property they will not only have to pay back that oustanding principal balance but all interest and penalties accrued on that balance up to the day of redemption. It is sometimes difficult to make scheduled payments when the revenue on expected sales are not coming in.
Posted by misadventurer (anonymous) on February 8, 2008 at 3:56 p.m. (Suggest removal)
I didn't illude to anything, whatever that is. I have reread my post, and feel I haven't even alluded to anything that wasn't stated in the original article. I understand things of a legal and financial nature, and appreciate the input of both bucksteel and number6. It may be best to discuss the article instead of each other, we've already got three people involved, maybe there are more with thoughts.
Posted by bucksteel (anonymous) on February 9, 2008 at 9:43 a.m. (Suggest removal)
You use the terms "crook" and "scam". I'm curious as to what particular crimes were committed. Also, I have read the article several times, and I did not sense any elation or "crowing". Mr. Erickson's comments seemed rather matter-of-fact. I personally did not want the development to happen. These people took a risk in developing the property, spent a ton of time and effort, as well as lots of legal fees. Stuff happens. Too bad for them. But I still don't see anything that they did that was illegal. Foreclosures happen every day. You make a high risk investment, sometimes you get a big reward, sometimes you strike out. They obviously have cashflow issues right now, and they are exercising their legal right to let the bank carry the debt. Bankers deal with this everyday.
Posted by vike (anonymous) on February 11, 2008 at 3:29 p.m. (Suggest removal)
I believe that the redemption period on this type of loan is 6 months, not one year. If they are banking on a year from this March they probably have a shock ahead of them.
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