Item O10
BOARD OF COU:'\lTY co.'nllSSI0~F.RS
.-\GE~DA ITF.M SLIHMARY
\.1eeting Date. August..l. 7, 2005
Division:_ County Attorn~y
Bulk ll~':m: ''{C~
1\0 xX"
Dcpflrtment: COLJl1lV .Attorney B.Qh Shillinger x 347Q
AGE~D"\ I'n:1\1 WORDING; Authorization to 1) initiak legal action again:-;l Ricky' and Barhara
..-\ll~I] to foreclose the COlJllly'5 Sl UP loan and ~) negotiate purdlase orWcll~ Fargu Bank's f~rst
1llortg(lge
ITE:\'l HACKc.:RO(~I\D~ On .April 14,2000, the County loaned S3(;))()O to \1r. and :\1rs. Allen under
the SHrp loan prDgram Fur the ~econd time jn L",'O years, the CounLy has. been named a~ a dejcndant in
fl)rcclo~ure actions due to allegations thm lhc Allens hav~ defaulted on the first mortgage. ,)'ee, Wells
Farr:o Hunk 1'. Ricky Allen, Har/lara Allen, .Honroe County, ef nl., CA 1\.-1 05.177. \Vdb Fargo alleges
that it has not reccived any paymenls. iI-om tnc Allen~ ~lnce February of 2005. The fll i ng oft.hat suit
constitute,:, a breach of' [he terms oftl1~ SHl P mOl1gage the County extended to tn~ All~us.
In order to pmt~c.t Lhc County's illtert's.l in the property, statr i5 s.ceki~lg authorization to J) forcdo~e
the County:'s SHIP mmlg.age, and 2) purchase Wells. Fargo's first mongagc. Although an exact figur~
has. nOl yet becn provided, Wells Fargo's i:; seeking <ipproximatdy SS7 ,000.00 in its actioll.
If the County were to ontain the propc1iy. the Hous.ing Authority \.....ould impose atTordability
res.lriclinn:-; on any tunner tnlm;fers The propeny in qu~S11on ls.located at n~u. Dolphin Drive in
\-1arathon and was ,,'allied at just over $200,000 by lhe Property Appraist:r's. office in 2004 Three olJWf
propeniDs in the subdivi$ioTl are listed f'-1r sale for 2-3 timt::s. that amount.
PREVIOLS R.E.LEVA '-IT ROee ACTION: nOllf'.
rOI\TR4.CT/AG REK\1 E.:'\' r CHA:'\lGES: n/a
STAFF H: I'TO M 1\'1 E.~DA TIONS~ Approval.
TOTAL COST:
~a)S90,OOO.()O
BLL>Gt:TF.D: y~s
No
COST TO COL[\']'Y:
nil:!
SOrRel: OF FI.T~DS: n/a
R}:VF.SlJF. PRODlJCING~ Yes ~ No
AMOUNT PER 1\101\TII n./a \'car nJa
A I~"ROV f: () BY:
County Auy ~
01\1 B/Puryh(1sing Rish Management _
../l . I ~ /1 .. '. /... -/ I ' .
:.. - ..ft 0-~-~/----- L!; l "'--... ...... Z J/ 'I It.i
John R Cullins, Coumy Attorney
I>I\'JSIO[\' DIRECTOR APPROVAL:
DO(:I;1\-1 F.:NTA TION ~
Included
'\Jot Rl;tlLlired xx
n ISJ>OSITIOl\:
AGF.NDA ITEM if
U,-...,.;<M .1"fl~