City of Oak Creek

Common Council Report

Meeting Date: May 6, 2003

Item No.:         27

Recommendation:  That the Council consider the subordination of our home improvement loan with Barbara Booth on her property at 2075 E. Montana Avenue.

Background:  Barbara Booth has a home improvement loan with the City with a balance of $5349.43.  This loan is secured by a lien on her current first mortgage through Countrywide Home Loans.  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 mortgage loan amount would be $106,000.  The present fair market value of her property is $130,700 and the assessed value is $139,900, which is more than the total outstanding debt, including our loan and the new first mortgage.

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

File name: S:\CLERK\COMMON COUNCIL AGENDAS\WEBSITE COMMON COUNCIL REPORT REVISED 4.Doc

Print Date: 2/28/2003 4:42 PM

Revision No. 6