City of Oak Creek

Common Council Report

Meeting Date:  Sept. 16, 20003

Item No.:         13

Recommendation:  That the Council consider the subordination of our Home Improvement Loan with Keith Soto on his property at 8800 S. Carol Court.

Background:  Keith Soto has a home improvement loan with the City with a current balance of $2400.00.  This Loan is secured by a lien on his property located at 8800 S. Carol Court.  He is currently applying to refinance his current first mortgage through Maritime Mortgage.  His lender is requesting that the City subordinate this home improvement loan so that it would be in a second portion behind the first mortgage.  His new loan amount would be $56,000.  The present assessed value of the property is $113,700 which is more than the total outstanding debt including our loan and the new first mortgage.

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

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