Item No: 4.C.7.
Meeting Date: February 27, 2012
From: Ken Thomas, Director of Economic Development & Housing
Subject: Resolution approving a Subordination Agreement with Mortgage Investors Corporation for refinancing a loan for Randy R. Amburgey and Connie S. Amburgey at 1509 Floradel Avenue
Staff recommends approval of the Subordination agreement with Mortgage Investors Corporation regarding Randy and Connie Amburgey.
The Amburgey’s were provided down payment assistance in the amount of $1,000 from the Lake County Neighborhood Stabilization Program (NSP) to purchase a home. However, the Amburgey’s signed a Promissory Note to repay the City of Leesburg $1,000 if the subject property is sold, transferred, refinanced, no longer occupied, or rented within 15 years of ownership. Mortgage Investors Corporation has offered to provide refinancing of the Amburgey’s existing loan with a lower 3.000 adjustable rate (this rate is fixed for three years and cannot go up or down more than 1% thereafter and can never exceed a rate of 8.000%). In order for the mortgage company to secure a superior lien on the real estate, the City of Leesburg must subordinate the existing lien on the property.
1. Approve the subordination agreement between the City of Leesburg and Mortgage Investors Corporation; or
2. Such alternative action as the Commission may deem appropriate.
$1,000 has been received in the Leesburg NSP restricted account.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
RESOLUTION OF CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A SUBORDINATION AGREEMENT BETWEEN RANDY R. AMBURGEY AND CITY OF LEESBURG AND IN RETURN THE CITY RECEIVES $1,000.00; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an agreement with Mortgage Investors Corporation whose address is 6090 Central Avenue, St. Petersburg, Florida 33707, for refinancing a mortgage for Randy and Connie Amburgey who resides at 1509 Floradel Avenue, Leesburg, Florida 34748.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _27th ____ day of _February ____ 2012.