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Written Communication 8.

BCC Regular Meeting

Meeting Date:	09/24/2015
Issue: State Housing Initiatives Partnership (SHIP) Program Mortgage Offer in Compromise for Property Located at 7320 Martinique Drive
From:	Tonya Gant
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

September 3, 2015, communication from Eric T. Magoon, Esq., McCalla Raymer, LLC, on behalf of Branch Banking & Trust requesting that the Board review and consider an Offer in Compromise for the State Housing Initiatives Partnership (SHIP) Program Mortgage for property located at 7320 Martinique Drive.

BACKGROUND:

On October 18, 2005, Robert W. and Maria Cochran entered into a $5000 mortgage (Exhibit I) with the Escambia/Pensacola SHIP program, which provides down payment and closing cost assistance to income-eligible first time homebuyers in Escambia County. The mortgage was recorded as a second mortgage against the property located at 7320 Martinique Drive. The mortgage terms are a 0% interest loan with no monthly payments, depreciating at 20% per year for 5 years, provided that the buyer is in compliance with the program and mortgage terms.

On August 12, 2008, a Lis pendens was filed against the property. Escambia County did not receive service at this time.

On November 24, 2008, the owners secured a third mortgage against the property, thereby violating Section 2.05 of the SHIP mortgage which prohibits any further encumbrances against the property within the five year loan term.

On February 26, 2014 a final judgment of foreclosure was entered and on April 15, 2014, a certificate of title was issued in favor of Branch Banking & Trust (BB&T). Neither the County nor the City received any notices regarding the foreclosure action.

On September 3, 2015, Eric T. Magoon, counsel for BB&T, submitted an email communication (Exhibit II) with an offer in compromise of $500 for the SHIP loan in lieu of the full balance owed.

BB&T is concurrently submitting an additional $500 offer in compromise to the City of Pensacola for release of its interest in the property.

BUDGETARY IMPACT:

Due to the owner's default on the SHIP second mortgage, the full $5000 is due to the Escambia/Pensacola SHIP Program. If the Board does not accept the offer in compromise, BB&T must re-foreclose on the property to include Escambia County and the City of Pensacola.

LEGAL CONSIDERATIONS/SIGN-OFF:

Not applicable.

PERSONNEL:

Not applicable.

POLICY/REQUIREMENT FOR BOARD ACTION:

Not applicable.

IMPLEMENTATION/COORDINATION:

If approved by the Board, the Neighborhood Enterprise Division (NED) will prepare a release after receipt of funds to the SHIP Affordable Housing Trust Fund. NED will coordinate with the City of Pensacola Housing office as needed.

Attachments
Ex I-Cochran SHIP Mortgage
Ex II-Email Communication SHIP Cochran