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Request for Forgiveness of Second Mortgage for Paulo Batista and Tammy Batista Through Homeownership Down Payment Assistance Program
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BRIEF OVERVIEW
Under the State Housing Initiative Partnership Program (SHIP), applicants Paulo and Tammy Batista entered into a second mortgage with Hernando County Housing under Hernando County, Florida Homeownership Program Down Payment Assistance Program on November 30, 1993, in the amount of $5,000.00.
According to Hernando County Housing Authority, all loans during that time were zero percent (0%) interest to qualified recipients and were repaid in full at the time the home was sold, transferred, foreclosed upon, ceased to be the recipient's primary residence, or after thirty years, whichever may occur first. Recipients would be allowed to repay their loan at any time in a lump sum payment. All payments of the loan prior to and including the thirty-year payment are considered program income.
The Recipients' thirty-year time frame has passed, and the property still serves as the recipient's primary residence. However, in staff review of the second mortgage and note, there is no mention of repayment of the loan after 30 years only repayment upon the sale of the property or when it is no longer the recipient's primary residence.
Staff seeks the Board's direction whether to maintain a second mortgage until the home is sold or no longer the recipient's primary residence or to forgive the loan, since the home is still the recipient's primary residence and 30 years have passed. Repayment terms in the current SHIP Local Housing Plan would require the loan to be forgiven after 30 years. Should the Board recommend that the loan be forgiven, a satisfaction of mortgage is attached for the Chairperson's signature.
FINANCIAL IMPACT
Funds to pay the cost of recording the satisfaction of the mortgage in the amount of $10.00 are available in Fund: 1271 - ST Housing Init Partnership, Department: 35051 - SHI...
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