Report Prepared by: Mark E. Hamilton, Housing Program Supervisor, Housing Division, Department of Economic Development
Title
SUBJECT: Request to Release Interest in Property Located at 1036 W. 10th Street to Allow a Short Sale
REPORT IN BRIEF
Request by the Estate of Manuel Valle to release the City's interest in property that was provided a Homeowner Rehabilitation Loan to allow for a short sale.
RECOMMENDATION
City Council - Adopt a motion authorizing the City of Merced Housing Division, second lien holder, to release interest in the property at 1036 W. 10th Street in order to allow a for short sale; and, authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to the City Manager for reconsideration of specific items (specific items to be addressed in City Council motion); or,
5. Continue to a future City Council meeting (date and time to be specified in City Council motion).
AUTHORITY
City of Merced Housing Division's Community Development Block Grant Homeowner Rehabilitation Loan Servicing Plan.
CITY COUNCIL PRIORITIES
As provided for in the 2015-16 Adopted Budget.
DISCUSSION
Staff is requesting Council to authorize the release the City's financial interest in 1036 W. 10th Street to allow for a short sale of this property. The property owner is ill and no longer resides at the property. The property owner currently is living at the Franciscan Health Center suffering from dementia and is not able to care for himself. Knowing the current market value was below the total of the two notes, $142,495.04, the Housing Division received a request to allow a short sale (Attachment 1 - Letter from Property Owner) after the property was in escrow.
In researching the property, the $97,000 accepted offer from the buyer is approximately $4,000 above the $93,188 estimated prop...
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