SUBJECT/RECOMMENDATION:
Title
Request for authority to initiate a foreclosure action on behalf of the City against the Estate of Willie B. Holmes to seek recovery of a delinquent note secured by a mortgage on property located at 505 North Garden Avenue. (consent)
Body
SUMMARY:
In 2002, the City issued a loan to Willie B. Holmes in the amount of $80,000 to replace a single-family home located at 505 North Garden Avenue. Mr. Holmes passed away in 2011, requiring full payment of the loan at that time. Repeated attempts by staff to contact Mr. Holmes’ estate on this matter have been unsuccessful. Staff has followed direction provided in the Economic Development and Housing Department Affordable Housing Loan Foreclosure and Loan Foreclosure Alternative Policy. In accordance with the policy, notices of delinquency, default and intent to seek council approval to initiate foreclosure were sent to the borrower’s address of record. Staff is now recommending the last-resort option of initiating foreclosure. The principal balance of the loan is $69,900.23 and there appears to be no superior debtors with an interest in this property.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS: