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Written Communication 8. B.

BCC Regular Meeting

Meeting Date:	05/05/2016
Issue: Written Communication - SHIP Mortgage - Faith Woods
From:	Tonya Gant
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

April 20, 2016, communication from Faith Woods, Paralegal, Quintairos, Prieto, Wood & Boyer, P.A. requesting a release of the State Housing Initiatives Partnership (SHIP) Program Mortgage for property located at 3037 Flintlock Drive.

BACKGROUND:

On May 17, 2001 Tami Marquis entered into a $15,000 mortgage (Exhibit II) with the 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 at 3037 Flintlock Drive. The mortgage term is a 0% interest loan, which would be forgiven if the owner stays in the home for the term of the first mortgage. Alternately, if the SHIP mortgage is not in default and conveyed after one year, then 40% of the balance would be forgiven, with 60% to be repaid to the SHIP Program.

On February 25, 2015, a LIS pendens was filed against the property. Escambia County did not receive service. Default of the first mortgage constitutes a default of the SHIP second mortgage.

On June 25, 2015, a final judgment of foreclosure was entered and on November 18, 2015, a certificate of title was issued in favor of Federal Home Loan Mortgage Corporation. The County did not receive any notices regarding the foreclosure action.

On April 20, 2016, Faith Woods submitted an email communiction (Exhibit I) requesting that the County release the entire SHIP Mortgage.

BUDGETARY IMPACT:

Due to the owner's default on the first mortgage, the full $15,000 is due to the SHIP Program. If the Board does not release the Mortgage, the bank will have to re-foreclose on the property to include the County.

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 of mortgage.

Attachments
Ex I-Written Communication
Ex II-SHIP mortgage 3037 Flintlock