Explanation
BACKGROUND: This legislation authorizes the City of Columbus, Department of Development to release its recorded mortgage interests in a residential property (referenced below) that secures two City loans with outstanding balances totaling $56,398.55 made to borrower Viola Williams. The purpose of the release is to enable the City to receive a $10,000 payment rather than receiving nothing if the property is resold through an unavoidable foreclosure action.
The Franklin County Treasurer already conducted a foreclosure action and sold at sheriff's sale the property securing the City's loans in Franklin County Court of Common Pleas case Franklin County Treasurer v. Viola Williams, et al., case number 01 CVE 07-7178. The City was inadvertently excluded from this foreclosure proceeding and, consequently, its interests were not represented. Rather than requiring the County Treasurer to vacate the foreclosure judgment and sale, reopen and re-prosecute the foreclosure suit to include the City's interests, and then resell the property at a sheriff's sale for the outstanding property tax amounts, which would result in the City receiving nothing, this legislation enables the City to receive $10,000 from the current property owner in exchange for the release of its mortgage interests.
The property address is: 920-922 Cleveland Avenue, Columbus, Ohio 43201.
Emergency action is requested to expedite authorization for a settlement.
FISCAL IMPACT: There is no impact on current operating funds.
There will be a potential $46,398.55 loss in accounts receivable for Community Development Block Grant Loan Repayments.
Title
To authorize the Director of the Department of Development to release the recorded mortgage interests of the City of Columbus in a property that secures loans with outstanding balances totaling $56,398.55 and to accept $10,000 in exchange for said release; and to declare an emergency.
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