Memorandum

City of Lawrence

Planning and Development Services

TO:	Diane Stoddard, Interim City Manager
FROM:	Danelle Dresslar, Community Development Manager, Planning and Development Services
CC:	Scott McCullough, Director, Planning and Development Services
DATE:	March 10, 2016
RE:	Mortgage Modification

Background:

The following individual participated in a Community Development Division loan program. 

1) Gabriel Gutierrez, 306 Clayton Court, participated in the Homeowners Out of Tenants program in 2004, and the Emergency Loan Program in 2005.

Based on the program the individual participated in, a mortgage was placed on the property with no monthly payments required.  The balance is due when the property is no longer owner-occupied, however individuals have the option to pay off the loan at any time.  Staff has determined that the property is no longer owner-occupied and has agreed to modify the original mortgage to require monthly payments until the unpaid principal balance is retired.

Staff Recommendation:

The Loan Modification Agreement requires thirty-six (36) monthly payments of $330.00, and one balloon payment of $6,720.15 on or before March 21, 2019.  When the Mortgagee has received the full sum of the $18,600.15 and the unpaid principal balance is retired.

Action:

Sign the Loan Modification Agreement for Gabriel Gutierrez, 306 Clayton Court, if appropriate.

The City Clerk will have the documents ready for the Mayor's signature.  If you have further questions, please let me know.