City of Oak Creek

Common Council Report

Meeting Date:  Oct. 21, 2003

Item No.:         9

Recommendation:  That the Council authorize the execution of a subordination agreement with Countrywide Home Loans, Inc. for the home improvement loan with Phyllis Stopp on her property located at 10853 S. Nicholson Road.

Background:  Phyllis Stopp has a home improvement loan with the City with a current balance of $12,494.24. This loan is secured by a lien on her property located at 10853 S. Nicholson Road.  She has applied to refinance her mortgage with Countrywide Homes Loans, Inc. Her lender is requesting that the City subordinate our home improvement loan so that it would be in second portion behind the first mortgage.  Her new loan amount would be $97,000.  The 2003 fair market value of her property is $124,772 and the assessed value of the property is $109,800.  There would appear to enough equity to cover the City’s portion of these debts.  She has been making payments and is current with the City.

Fiscal Impact:  She is current with her payments on the home improvement loan, which does include a late payment penalty clause.

Prepared by: Douglas Seymour, AICP Director of Community Development	Respectfully submitted, Robert L. Kufrin City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk