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Written Communication 8. B.

BCC Regular Meeting

Meeting Date:	08/04/2016
Issue: Written Communication - CDBG Mortgage - Hipolito Santiago
From:	Tonya Gant
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

July 22, 2016, communication from Hipolito Santiago, Property Manager Specialist, Florida State Trust, requesting a release of the Community Development Block Grant (CDBG) Mortgage for property located at 200 West Winthrop Avenue.

BACKGROUND:

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 July 22, 2016, Hipolito Santiago submitted an email communication (Exhibit II) requesting that the County consider an offer of $5000 as an offer in compromise for release of the CDBG Mortgage.

BUDGETARY IMPACT:

Due to the owner encumbering the property, the full $23,194 is due to the CDBG 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 to be executed upon receipt of funds.

Attachments
Ex I-Franko CDBG Mortgage
Ex II-HS Written Communication