TITLE: Title
Consider authorizing the Town Manager to enter into an agreement for a loan modification with Brian Russell and Ruby Sinreich.
PURPOSE: The purpose of this item is to authorize the Town Manager to enter into an agreement with Brian Russell and Ruby Sinreich to allow them to accept an offer to purchase for their townhome for less than the outstanding debt against property held as collateral.
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DEPARTMENT: Economic and Community Development
CONTACT INFORMATION: Annette D. Stone, AICP ECD Director 919-918-7319
INFORMATION: Brian Russell and Ruby Sinreich are requesting the town provide them with a written agreement that the Town will not exercise its right as a lien holder against their property located at 138 Ridge Trail, Carrboro, NC in the event of a sale that is less than the total liens against the property up to an amount not to exceed $12,000. Mr. Russell and Ms. Sinreich need to sell the property. The outstanding balance on the loan is approximately $51,000. The agreement will stipulate that Mr. Russell will in the event of a sale of the property enter into a separate loan agreement with the Town for an amount, not to exceed $12,000. In addition, the agreement will allow for a negotiated payment plan with annual re-evaluation of the loan, also any future purchases of real property by Mr. Russell will be required to become collateral for any outstanding balance. The ESC has reviewed this request and recommended approval by the Board of Aldermen.
FISCAL & STAFF IMPACT: There is no direct fiscal impact to the general fund as these funds are included within the Town's Revolving Loan funding.
RECOMMENDATION:r Staff recommends the Board consider authorizing the Manager to enter into an agreement with Brian Russell and Ruby Sinreich.