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Chief Administrative Office, Economic Development Division, Housing, Community and Economic Development Program recommending the Board consider the following:
1) Approve a short sale settlement offer to release a County lien securing a First-Time Homebuyer Loan; and
2) Authorize the Acting Assistant Chief Administrative Officer to execute documents related to the short sale and, upon receipt of payment, issue a full Reconveyance and complete the necessary steps to internally discharge the remainder of the loan balance.
FUNDING: Federal Community Development Block Grant Funds.
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DEPARTMENT RECOMMENDATION
Chief Administrative Office, Economic Development Division, Housing, Community and Economic Development (HCED) Program recommending the Board approve a short sale settlement offer to release a County lien securing a First-Time Homebuyer Loan and authorize the Assistant Chief Administrative Officer to execute documents related to the short sale and, upon receipt of payment, issue a full Reconveyance and complete the necessary steps to internally discharge the remainder of the loan balance.
DISCUSSION / BACKGROUND
The Chief Administrative Office, Housing, Community and Economic Development Programs (HCED), provides housing acquisition loans to eligible first-time homebuyers through State and federal grant-funded programs including the Community Development Block Grant (CDBG) program.
On September 30, 2015, HCED received a request to accept a reduced payment, or short sale, offer to satisfy the terms of a first-time homebuyer loan. A short sale occurs when the sales price of a home is less than the total amount of liens encumbering the property. Staff reviewed the conditions experienced by the borrower that necessitated the short sale and verified that they meet State policy.
This is the second short sale request received by the County under the CDBG program since program inception in 1993. As determined by County Counsel in 2013, acceptance of ...
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