On May 27, 1998, Glenda Franko entered into a $23,194 mortgage (Exhibit I) with the Escambia County CDBG Program, to provide moderate rehabilitation of her homestead property. The mortgage was recorded against the property at 200 W. Winthrop Avenue. The mortgage term was a 0% interest, no monthly payment loan, which would be forgiven after 20 years if the owner did not sell, transfer, rent or further encumber the property during those 20 years. On March 31, 2000, a mortgage with Laguna Capital Mortgage was recorded against the property in the sum of $29,300. On September 30, 2008, a LIS pendens was filed against the property, which was released in the public records on May 13, 2011. Another LIS pendens was filed against the property on May 6, 2014, but Escambia County did not receive service. On February 6, 2015, a final judgment of foreclosure was entered, and on April 8, 2015, a certificate of title was issued in favor of Trust Mortgage LLC. The County did not receive any notices regarding the foreclosure action.
On August 4, 2016, after receiving written communication from Hipolito Santiago representing Trust Mortgage, LLC, requesting that the County consider an offer of $5000 as an offer in compromise for release of the CDBG Mortgage, the Board voted to initiate foreclosure proceedings on the property (Exhibit II). The CDBG mortgage has been contested by Trust Mortgage, LLC as the original note is lost. Trust Mortgage, LLC offered $10,000 as a settlement offer in this case which was taken to the Board on January 18, 2018, but the Board authorized a counter offer of $17,000 (Exhibit III). Since this time, the case was to go to jury trial, but the motion was amended and the defendant has stated that they will consent to judgment in exchange for $5000 from the County (Exhibit IV).
The foreclosure proceedings are being handled by Sirote & Permutt, PC. |