News

Homeowner's default cost city $100K

Between legal fees and missed loan payments and homeowners' association dues, the default on loans by a homeowner of a below-market-rate housing unit in the Menlo Square complex cost Menlo Park about $100,000, according to the city.

The city re-acquired the one-bedroom condominium Dec. 1, 2009, through a court ruling, after covering mortgage installments and homeowners' fees for over two years to prevent various lenders from foreclosing. The payments came through the city's flush below-market-rate purse, funded by land developers.

City management is recommending that the City Council at its Feb. 23 meeting choose to resell the home to another applicant for below-market-rate housing, rather than recoup its losses by selling the unit at market rate.

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Homeowner's default cost city $100K

Uploaded: Mon, Feb 22, 2010, 11:37 pm

Between legal fees and missed loan payments and homeowners' association dues, the default on loans by a homeowner of a below-market-rate housing unit in the Menlo Square complex cost Menlo Park about $100,000, according to the city.

The city re-acquired the one-bedroom condominium Dec. 1, 2009, through a court ruling, after covering mortgage installments and homeowners' fees for over two years to prevent various lenders from foreclosing. The payments came through the city's flush below-market-rate purse, funded by land developers.

City management is recommending that the City Council at its Feb. 23 meeting choose to resell the home to another applicant for below-market-rate housing, rather than recoup its losses by selling the unit at market rate.

Comments

Concerned
Menlo Park: Downtown
on Feb 23, 2010 at 2:49 pm
Concerned, Menlo Park: Downtown
on Feb 23, 2010 at 2:49 pm
Like this comment

The $100,000 does not include the staff time to deal with the program and this problem. Current estimates for staff time are in the millions of dollars for the BMR program.

Our council majority doesn't care.


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