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Monday, 21 December 2009 23:31

Plymouth Could Lose $125K in HUD Revolving Funds

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slide2-jackson_girls_sell_mistletoe_for_charity.pngAmador County – The Plymouth City Council earlier this month released a federal loan house to escrow on staff recommendation, and the city likely will lose about $125,000 in future revolving home-buyer loan funds. In a staff report December 10th, City Finance Director Jeff Gardner said the home owned by Jaime and Laura Lozano “has gone into foreclosure and a short sale is pending with the bank.” The “city is in second position on the property” and the home “originally sold at $250,000 and now is valued at $140,000,” and is owned by the bank. Vice Mayor Greg Baldwin said “the sickest thing is, you can’t build a house for that price now.” Mayor Jon Colburn said a friend of “bought a house in River Pines for $39,000” and “that’s less than our impact fees” in the city of Plymouth. Gardner said the reduction in value effectively eliminated “the city’s share of equity in the property,” under the Housing and Urban Development funding program. HUD’s “settlement statement” included $3,000 “as a payoff to the city to sign off on the loan.” He said it could result in the loss of grant money for future revolving loans, with no “immediate” fiscal impact, but a “long term loss of $125,415 in revolving loan funds.” On Gardner’s recommended, the city council voted 5-0 to acknowledge the foreclosure and short sale and direct staff to send a letter of release to the escrow company. Lilly Greathouse, Realtor with Coldwell Banker Sutter Creek, in a November e-mail to Gardner said the release letter would allow Bank of America to pay the $3,000 sign-off funds to Plymouth. The Lozanos wrote a letter asking for a short sale on their home, at 18904 Wheeler Way in Plymouth. They said it was their first home and they were not able to make payments due to the cost of gasoline and health insurance, and Jaime Lozano’s mother is very ill and needs financial help. The council discussed city water and sewer fees in relation to the cost of building the Plymouth Pipeline. Gardner said consultant Bob Reed would have the new numbers and costs “dialed in” once they “have the final numbers” in construction costs. Baldwin said they will reevaluate rates then. Maria Nunez Simon said the already rising bills in the city have caused a decrease in the value of her home from $345,000 to $165,000. Baldwin disagreed, saying: “I just built by house for $375,000, at least, plus 2,000 hours of my labor,” and it has fallen to $250,000, “at least.” Baldwin said: “Our heart is here as well as yours.” Agreeing, Councilwoman Patricia Shackleton said: “We pay bills too.” Baldwin said: “We’re going to do the utmost to bring the rates down.” Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.

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