Item S04
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:
September 20, 2000
Division: County Attorney
AGENDA ITEM WORDING:
Rescission of May 17, 2000 approval of executing a Subordination Agreement for a
SHIP loan upon full payment of a second mortgage held by Monroe County, and
approval of executing a new Subordination Agreement whereby the SHIP mortgage
would be subordinated to a new first mortgage as well as $50,000 of the second
mortgage being subordinated to the same new first mortgage with $103, 741.09 to
be paid to Monroe County on the second mortgage.
ITEM BACKGROUND:
See attached September 4, 2000 letter from Harrison Mortgage.
PREVIOUS RELEVANT BOCC ACTION:
May 17, 2000, BOCC approved accepting payment on the second mortgage and
subordinating the SHIP mortgage to a new first mortgage.
STAFF RECOMMENDATION:
No recommendation.
TOTAL COST:
BUDGETED: Yes
No
Cost to County:
APPROVED BY:
County Attorney
x
OMB/Purchasing
Risk Management
DIVISION DIRECTOR APPROVAcW~
DOCUMENTATION: Included -L. To Follow _ Not required
AGENDA ITEM #
I.S4
SUBORDINATION AGREEMENT
WHEREAS, under date of February 4, 1988, a second mortgage was given by
Clinton LeBaron, Juanita LeBaron, and Ralph Olson, in favor of Monroe County, a political
subdivision of the State of Florida, which mortgage was recorded in Official Records Book
1040, Page 1958, of Monroe County, Florida; and
WHEREAS, under date of 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 99.5-266(a), Monroe County
.. "".
Code;
.... .
, .
NOW, THEREFORE, in consideration of partial payment of the amount due on the
note secured by the second mortgage in the amount of $103,741.09, and other good
and valuable consideration, Monroe County agrees to subordinate the "SHIP" and the
remaining $50,000 balance of the second mortgage to a new first mortgage in favor of
INTERBAY FUNDING LLC, encumbering the subject property. The "SHIP" mortgage is by
this instrument subordinated and made inferior to the Mortgage to be given by John D.
Jones, in favor of INTERBAY FUNDING LLC.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals this
day of
, 2000.
(SEAL)
ArrEST: DANNY L. KOLHAGE, CLERK
BOARD OF COUNTY COMMISSIONER
OF MONROE COUNTY, FLORIDA
By
Deputy Clerk
By
Mayor/Chairperson
OWNERS:
JOHN D. JONES
JUANITA LEBARON
RALPH OLSON
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HARRISON
MORTGAGE
September 4, 2000
Office of the County Attomey
Attn: Suzanne Hutton
502 Whitehead Street
3rd Floor
Key west, Fl 33040
RE:Monroe County v. Juanita L~Baron. et al.
Case Number: CA-K-99-1290
Dear Suzanne:
When we last spoke, I explained to you that the lender for the above referenced
borrower tlas issued a letter of intent for a $450,000 mortgage loan on the Gulfshore
Apartments. The current terms of the subordination agreement issued by the county
would leave Mrs. leBaron approximately $50,000 short at the time of closing. We
are requesting that the county subordinate the $50,000 in the:form of a second
mortgage. If this would be possible, Ms. LeBaron would be able to:
; i
! I
~
. Satisfy the first mortgage with First National Bank of the Florida Keys
. Pay delinquent and current property taxes to the co nty
. Obtain new insurance policy from Johnson's Insuran e
. Pay the sum of $103,741.09 to Monroe County (wi the county
subordinating the $50,000 balance on the second rn rtg<Jge as well as the
"SHIpn mortgage to a new first mortgage in favor 0 nterbay Funding, lLC)
,
I am aware that this new proposal will need to be presente to the Board of County
Commissioners for final approval. Hopefully this letter can et this process
underway. Please give me a call when you receive letter. I ok forward the getting
this matter finally settled. Thank you for all of you help on his.
Tdv Tro
Sr. Loan Originator
2401 S\Neet Oa k St. Ocoee, Florida 34761
407.245.2800 407.245.2875 (f'ax) harrlsonmortg8ge@hotmail.com