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Item N2 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: May 17, 2000 Division: County Attorney Bulk Item: Yes No AGENDA ITEM WORDING: Request for authorization for the Mayor to execute an Agreement subordinating a SHIP Mortgage given to Monroe County by Juanita LeBaron to a new first mortgage in favor of Eastern Savings Bank. ITEM BACKGROUND: Monroe County has instituted foreclosure proceedings against Clinton and Juanita LeBaron and Ralph Olson as a result of their default under the terms and conditions of two promissory notes and mortgages given to Monroe County. John D. Jones, the new owner and son of Juanita LeBaron, has acquired financing to payoff the note secured by the second mortgage, but wishes to subordinate the third mortgage (SHIP mortgage) to the new first mortgage in favor of Eastern Savings Bank. Mr. Jones has assured Monroe County that the subject property is being used as "affordable housing" as required by Section 9.5-266(a), Monroe County Code. PREVIOUS RELEVANT eocc ACTION: See above. STAFF RECOMMENDATION: Approval. TOTAL COST: Cost to County: BUDGETED: Yes No APPROVED BY: County Attorney x OMB/Purchasing Risk Management DIVISION DIRECTOR APPROVAQtt?~ DOCUMENT AnON: Included J< To Follow _ _ Not required AGENDA ITEM # \-N~ SUBORDINATION AGREEMEt.4T WHEREAS, under date of February 4, 1988, a second mortgage was given by Clinton LeBaron, Juanita LeBaron, and Ralph Olson, in favorbf Mon~9E!County, a political subdivision of the State of Florida, which mortgage was recbrdedindffidal Records Book 1040, Page 1958, of Monroe County, Florida; and WHEREAS, under date o('March 1, 1997, a third mortgage, also known as a "SHIP" mortgage, was given by Juanita LeBaron, in favor of Monroe County, which mortgage was recorded in Official Records Book 1448, Page 950, of Monroe County, Florida; and WHEREAS, the legal description of the property subject to said mortgages is attached hereto as Exhibit "A" and made a part hereof; and WHEREAS, Monroe County has filed a Complaint to Foreclose these mortgages as a result of the mortgagors' failure to make payments in accordance with the terms of said agreements; and WHEREAS, the accelerated amounts due on the notes secured by the second and third mortgages, exclusive of interest, fees and costs, total $139,121.19 and $47,994.00, respectively; and WHEREAS, the owner of the subject property has obtained financing to payoff the balance of the second mortgage; and WHEREAS, the owner of the subject property has proVided assurances to Monroe County that the subject property is available as "affordable housing," as defined in 99.5- 4(A-5), and complies with the requirements set forth in g9.5-266(a), Monroe County Code; NOW, THEREFORE, in consideration of full payment of the amount due on the note secured by the second mortgage in the amount of $153,741.09, and other good and valuable consideration, Monroe County agrees to subordinate the "SHIP" mortgCige to a new first mortgage in favor of EASTERN SAVINGS BANK, encumbering the subject property. The "SHIP" mortgage is by this instrument subordinated and mClde inferior to the Mortgage to be given by John D. Jones, in favor of EASTERN SA\(I'NGS ;BANK. IN WITNESS WHEREOF, the parties hereto have set their hands and seals this day of , 2000. ., (SEAL) AlTEST: DANNY L. KOLHAGE, CLERK BOARD OF COUNTY COMMISSIONER OF MONROE COUNTY, FLORIDA By Deputy Clerk By Mayor/Chairperson OWNER JOHN D. JONES jdmortgagesubord /~, I .----, ~ / Situated in the County of ~ ';;d State of Floriqa: as being a parcel ot' l~nd- c: ; of all Lots 9 8.l1~f~ 5, of the Resubdiv1:sion' ~k~~Block 2, and all;:(i _.' of MARATHON BEACH, '.a s.u,~,~ ,.J part of Gov~ :_~_:~ Section 10, Township 66 \'8 .",. J~'e 32 East on 'f"-" shown by Plat recorcled1n;EJ~:, I~Je~, Page 21 ofMot1~(t~ Florida, Public Recordf:l"':'R,(;t.:~.."". ..;e,el of contiguous, ft,,) " ~~ri~:s :land . in the GUl.,f :,.O~~f!~~'FO, bounded and descr1.;1j ~\ .. -;\ '.' , Beginning on the West.e:r;ly." d;':rlilii.,\~.'\*i! of First StreE!~.:;>{'"~.1i;';'~J!~ Southeasterly corner of Lot9.;/:J.l!,;P~k 2, of MARATHON BEA:.' ':. uI~~ VISION recorded as a foresa1ct,~i-~1}~:tF:).North 15 degre'es, 4:q\~!.~)I;J.~ !~.~ 00 seconds West along the saidiR ';erly line of First Str~~.;,.;.::~'Pd Northerly prolongation the. reo.f..,~,.. ~~;..".' ..82. feet, said p.r()lq~.. ~.g'..:~.~. ).,,[,p.,~n. being also a portion of the.E(fH"f..;~ply line of a parcelQ;f't'~~B- merged land described in Of'fic~~"1:t:\'Rf1!_cords Book 339, Pag~s472~)~~d 473 of Monroe County Public R~~6r:~s. thence bear South 74;;d,t!.- grees, 20 minutes, 00 seconds West 200.00 feet to a point ontbe Westerly line of said submerged lands described in Official Records Book 339, Pages 472. and 473 as aforesaid, thence bear South 15 degrees, 40 minutes, 00 seconds East along the said Westerly line of said submerged lands and Westerly lines of said Lots 10 and 9, Block 2 of MARATHON BEACH SUBDIVISION recorded as aforesaid 166.82 feet to the Southwesterly corner of said Lot 9, Block 2; thence bear North 74 degrees, 20 minutes, 00 seconds ~ ~