City of Oak Creek

Common Council Report

Meeting Date:             April 15, 2003

Item No.:         20

Recommendation:  That the Council authorize the execution of a subordination agreement with Wells Fargo Home Mortgage for the home improvement loan with Nora Bakr on her property located at 1512 E. Meadowview Drive.

Background:  Nora Bakr has a home improvement loan with the City with a current balance of $6246.26.  This loan is secured by a lien on her property located at 1512 E. Meadowview Drive. She is currently applying to refinance her mortgage with Wells Fargo Home Mortgage.  Her lender is requesting that the city subordinate our home improvement loan, so that it would be in second position behind the first mortgage.  Her new loan amount would be $135,000.00.  The fair market value of her property is $150,500 and the assessed value of the property is $140,600.00.  There would appear to be sufficient 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 payment 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