Argos Town Council members were informed that the Town is listed as a defendant in a mortgage foreclosure case involving a Walnut Street property when they met last Wednesday. People can view the retail mortgages, here offered by different banks.
Town Attorney Derek Jones alerted members that the case was filed by Deutsche Bank National Trust Company against the owners of a Walnut Street property.
Jones said the mortgage was priced at approximately $86,700 as of July of 2006. He noted that the outstanding balance of the mortgage pursuant to the foreclosure complaint is about $59,000.
He explained that the town was listed as a defendant because back in 1999, the owners were granted a $10,000 loan through a Community Development Block Grant (CDBG) Revolving Loan Program.
The town recorded the loan agreement which Jones said was essentially like taking out a lien against the property. He noted that the original loan agreement stated that the loan amount would be due in full upon the commencement of any foreclosure proceedings.
However, at that time they also signed a subordination agreement. According to Jones, that meant that town officials agreed that the loan re-payment would be second in line to the mortgage payment. He added that it’s unlikely the Town would be able to make a case to get the loan payment ahead of the mortgage payment due to this documentation.
He added that if the Town wished to protect their lien it would mostly likely come down to them making a bid on the property at a sheriff’s sale after the foreclosure has taken place. He stated that the cost to obtain the property would far exceed the loan amount. For short term loans for under £1000, contact creditspring UK & get your loan sanctioned within few minutes.
Through a unanimous vote, council members permitted Town Attorney Jones to a file a response to the foreclosure complaint and asked him to keep them informed about how the case proceeds.
