AGENDA ITEM REPORT
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A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO NEGOTIATE A RELEASE OF LIEN FOR THE PROPERTY LOCATED AT 352 SUNSHINE DRIVE, COCONUT CREEK, FLORIDA 33066.
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BACKGROUND:
Erica Clarke (“Applicant”) was a purchase assistance applicant under the First-Time Homebuyer Purchase Assistance Program in June of 2009, funded by CDBG and SHIP monies. The Applicant purchased property located at 352 Sunshine Drive, Coconut Creek, Florida. The First Mortgage Holder is MERS, Inc./Indy Mac Bank in the amount of $144,021.24. The City is a Second Mortgage Holder in the amount of $31,421.00. The property is in foreclosure, which could potentially foreclose the City’s mortgage. The City was contacted by the title company because there is a potential short sale on the property. Payoff on the City’s Second Mortgage is based on net proceeds of the sale, which would result in a payoff to the City of $10,000.00.
DISCUSSION:
The City is committed to recapturing grant funds for future needs. Approval of this Resolution will authorize staff to negotiate the terms and execute the release of the second mortgage. Recapture funds on this transaction are considered program income and would be used to assist additional applicants.
RECOMMENDATION:
Staff recommends approval of this Resolution.
FISCAL IMPACT:
REVENUES: $ 10,000
EXPENDITURES: $ 21,421
BUDGETED? No
NOTES: Any program income received through this transaction will be deposited to Account 17-V33550, SHIP Program.