HomeMy WebLinkAbout5.B.2. Release of Lien for Rehabilitation Loan for Property located at 129 Main St N
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CITY OF SHAKOPEE
Memorandum CONSt:lIT
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CASE NO.: Not Applicable
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: R. Michael Leek, Community Development Director ~+~-L-
SUBJECT: Request to Release Lien for Rehabilitation Loan for Property Located at
129 Main Street North
MEETING DATE: July 1,2008
REVIEW PERIOD: Not Applicable
INTRODUCTION:
The City has received the attached request to release a lien in the amount of $1,111.50 against the
subject property.
DISCUSSION:
Several years ago the City secured a Small Cities Development Block Grant, and with at least a
portion of the funds established a residential rehab loan program. This program is administered
for the City by the Carver County Community Development Program.
Apparently, in 1995 the property owner received a loan under the program, and in December of
2000, entered into a loan repayment agreement in the amount of $3,705.00. The loan was not
totally repaid, and is thus subject to a lien in the amount set forth above. Ms. Egan, who is 95
years old, entered nursing care in February. Because of a reverse mortgage she owed more on the
property than its current valuation, Ms. Egan attempted to turn the property over to the lender.
Because of the lien the lender has not been able to accept the property. On her behalf, Anita
Lewis has requested that the lien be released so the property can revert to the mortgage company.
VISIONING RELATIONSHIP:
This action supports Goal F, "Housekeeping."
ACTION REQUESTED:
Offer a motion to authorize the appropriate City officials to take the necessary steps to release the
City's lien in the amount of$1,111.50 against the property located at 129 Main Street North, and
move its adoption.
H:\CC\2008\07 -01 \Egan Lien Release.doc
To: Carver County Community Development Program
Regarding: Dorothy Egan's property at
129 North Main Street
Shakopee, MN
To Whom It Concern:
My great aunt is Dorothy Egan and she is 95 years old. Back in February I
moved her into a nursing home when her health no longer allowed her to live alone.
At that time she signed over her property at 129 North Main Street to her mortgage
company as she had acquired a reverse mortgage and owed more on the property
than it was valued at.
I was recently contacted by C & L Morris Company, her mortgage company,
and informed that they cannot take over the property as there is a small lien on the
title with Carver County. I found out that apparently back in 1995 she was one of
the lucky recipients of money to do some type of improvements on her property but
it was never repaid. Now the mortgage company cannot assume the property with a
lien still on the title.
The lien amount is for $1,111.50. I am writing you on behalf of her to ask if
this debt can be forgiven as she has no assets and to have the lien removed from
the deed.
Please let me know if there is more information needed to resolve this matter.
Sincerely,
Anita Lewis
(great niece wjPOA)
Doc. No. A 492518
OFFICE OF THE COUNTY RECORDER
SCOTT COUNTY, MINNESOTA
Certified RIed and/or Recorded on
12-28-2000 at 11:00 Receipt: 67807
Pat Boeckman, County Recorder 01
EXEM~ by ( }P ,Deputy Fee: $19.50
-
COMMUNITY DEVELOPMENT PROGRAM
REPAYMENT AGREEMENT ~ ~ {)urr!7t IJ!2A
City of 5hakopee
THIS AGREEMENT, made and entered into this 19th day of December, 2000, by and
between Dorothy L Eoan, a sinole person (hereinafter referred to as "Borrower"), and The
City of Shakopee, having its principal office at 129 Holmes Street South, Shakopee,
Minnesota (hereinafter referred to as "Lender).
WHEREAS, the Borrower has applied for a loan under said program to improve and
rehabilitate that certain real estate situated. in the City of Shakopee described below and;
WHEREAS, Lender has paid Three Thousand Seven Hundred Five and 00/100** Dollars
($3705.00**) on Borrower's behalf as a no-interest loan (hereinafter referred to as "Loan")
for improving the below described real estate under the Small Cities Development
Program, the receipt and sufficiency of which is hereby acknowledged by Borrower; and;
WHEREAS, Borrower and Lender desire to set forth herein the provision for Borrower's
repayment of the Loan, and to provide for securing said repayment with the mortgage on
the property described below (herein referred to as the "Mortgage").
NOW, THEREFORE, in consideration of said Loan and in accordance with Minnesota
Statutes, the parties hereto do hereby agree as follows:
1. Borrower covenants and agrees with Lender to pay to the order of the Lender a sum .
equal to a percentage of the full amount of the Loan with 10% of the full amount of
the Loan forgiven each year the borrower remains in the home, without interest, at
such place Lender may designate in writing to Borrower, upon the occurrence of
any of the following events within the period of ten (10) years after the date of the
Loan as set forth above:
a. The sale, transfer, or conveyance (whether by deed, contract for deed, or
otherwise); and whether voluntary or involuntary; either while the Borrower is
living or by reason of the death of the Borrower; or
b. The below-described real estate ceases for any reason to be the principal
place of residence of the Borrower;
Repayment of the loan as required under the terms of this paragraph 1 shall be
made to lender not later than the 30th day following the sale, transfer, or other
conveyance referred to in paragraph 1 (a) above. For the purposes of this
Agreement this will be Maturity Date.
2. As security for Borrower's obligation of repayment, and subject to the terms and
conditions of this agreement, Borrower hereby grants, and lender shall and hereby
does have, a lien on the real estate hereinafter described in the full amount
necessary to satisfy said repayment obligation and the cost, including reasonable
Attorney fees, or collecting the same. The real estate subject to said lien is situated
in Shakopee, Minnesota, in the County of Scott and is legally described as:
The South 58 feet of the West 108 feet of the North Half (N1/2) of Block One
(1), East Shakopee, Scott County, Minnesota, according to the plat thereof on file and of
record in the office of the Register of Deeds in and for said County and State; subject to
utility easement now existing over said premises, and reserving to parties of the first part,
their heirs and assigns, an easement to maintain and repair the existing water line
extending to the property of parties of the first part retained by them, as same now exists in
the above-described premises.
PID # 27,0040090
3. Promptly after the date if any sale, transfer or other conveyance of the above
described real estate (or, in the event of a sale by contract or deed at least ten (10)
days prior to such date of sale), Owner or his/her heirs, executors, or
Representatives, shall give the City notice thereof.
4. In the event Owner or his/her heirs, executors or representatives shall fail or refuse
to make a required repayment within said limited period, the City may, with or
without notice of Owner, foreclose said lien in the same manner as an action for the
foreclosure of mortgages upon said real Estate, as by statute provided.
5. Said lien shall terminate and shall be of no further force or effort in the event the
City has not, on or before December 19.2010 commenced an action in the
aforesaid manner to foreclose the same.
State of Minnesota )
)
County of Carver )
On the 19th day of December, 2000, before me, a Notary Public with and for the said
County, personally appeared Dorothy L. Eoan, a sinole person to me known to be the
person(s) described in and who executed the foregoing instrument and acknowledging that
lW:kedie,~~e~;;reeaaandd~ .
Notary Public 1 e....." AMANDA B. SMOOT I
'ii:: NOTARY PUBLIC - MINNESOTA
.,' My Commission Expires 1-31-2005
. . III
State of Minnesota )
)
County of Carver )
On the 19th day of December, 2000, before me, a Notary Public with and for the said
County, personally appeared Amanda Smoot, Community Development Specialist to me
known to be the person(s) described in and who executed the foregoing instrument and
acknowledging the she executed the same as her free act and deed.
~a-"'J {/ ea-"-,,,
. Not ry Public
.~"io.""v...."'''''~>>~V''''''.a.....
1,,',"""\< JUDITH A. CASS I .
~"""':~l' NOTARY PUBLiC.MINNESOTA ThiS document was prepared by:
,'.'!\II'. MY COMMISSION EXPIRES1-31.2005 '\,. Carver County Housing & Redevelopment
· · Authority
500 North Pine Street Suite 204
Chaska MN 55318
This instrument is exempt from registration tax under Section 287.06 of Minnesota Statutes.
6. This agreement shall run with the aforesaid real estate and shall inure to the benefit
of and be binding upon the parties hereto and their respective heirs, executors,
representatives, successors, and assigns.
7. If this Agreement is executed by the contrad for deed vendor or a mortgage of the
property, as one of the Owners, such execution shall be deemed for the purpose of
establishing and continuing the existence of the indebtedness described herein and
the lien granted herein. However, in the event of default of the terms hereof, neither
the City of Shakopee nor its assigns shall take any action against such contract for
deed vendor except such as may be necessary in order to subject to the satisfaction
of said indebtedness the property described herein.
IN TESTIMONY WHEREOF, the parties have executed this Agreement as of the day and
year first written above.
~;r>~
Borrower: Dar hy L. E~an Borrower:
Borrower Borrower
Contract Vendor (if applicable) Contract Vendor (if applicable)
Contract Vendor (if applicable) Contrad Vendor (if applicable)
The Carver County HRA for the ~t~t
City of Shakopee
Grant Administrator By: Amanda Smoot, its
Community Deyelopment Specialist