Memorandum

City of Lawrence

Planning and Development Services

TO:	David L. Corliss, City Manager
FROM:	Danelle Dresslar, Community Development Manager, Planning and Development Services
CC:	Scott McCullough, Director, Planning and Development Services
DATE:	May 27, 2014
RE:	Mortgage Modification

Background:

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

1) Clarence E. Erickson (deceased) & Betty J. Erickson, 2114 Maple Lane, participated in the Emergency Loan Program in 2007.

Based on the program the individuals participated in, a mortgage was placed on the property.  The mortgagor needed to access the program for additional eligible services and there was room within the program assistance limits to accommodate them.  Staff has determined that a mortgage modification would save staff time and program funds compared to releasing the old mortgage and recording a new mortgage for the new total amount of assistance.

Staff Recommendation:

The mortgage provisions of the original mortgage are protected with a mortgage modification, the city’s interests are protected and the modification is in the best interest of the mortgagor, mortgage registration taxes will only be paid on the increase to the amount owed and it should be modified.

Action:

Modify the mortgage for Betty J. Erickson, 2114 Maple Lane, if appropriate.

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