Agenda 09/26/2017 Item #16D 709/26/2017
EXECUTIVE SUMMARY
Recommendation to accept the tentative settlement amount of $6,000, in the foreclosure action
styled New Penn Financial, LLC d/b/a Shellpoint Mortgage v. Elain K. O’Donnell, Collier County, et.
al. (Case No. 11-2017-CA-000779), now pending in the Circuit Court of the Twentieth Judicial
Circuit in and for Collier County, Florida, and authorize the Chair to execute a Satisfaction of
Mortgage.
____________________________________________________________________________________
OBJECTIVE: To accept the tentative settlement amount of $6,000 in satisfaction of the State Housing
Initiatives Partnership Program (SHIP) mortgage loan provided to Elaine K. O’Donnell.
CONSIDERATIONS: SHIP, a state affordable housing grant, offers financial assistance to first-time
qualified homebuyers for monies toward a portion of the required down payment for a newly acquired
home. As a condition of the award, the homeowner must repay the assistance provided upon loss of the
homestead exemption, sale, or refinance. Ms. O’Donnell was awarded a SHIP grant for $23,985.00 for
the purchase of a home.
Ms. O’Donnell has defaulted on her first mortgage payments, and the foreclosure action has ensued by the
bank. The County’s interest in the subject property is subordinate to the Plaintiff’s first mortgage.
Ms. O’Donnell has been working with New Penn Financial, LLC d/b/a Shellpoint Mortgage in an attempt
to transfer the deed to the bank, in lieu of a final judgment of foreclosure against her. As the County’s
interest is subordinate to the bank mortgage, a foreclosure judgment would operate to extinguish the
County’s interest in the property. The property would be sold at auction if it were foreclosed, and the
County would only be able to claim funds in the very rare event that there were surplus funds remaining
after the first mortgage was satisfied, including accrued interest, costs, and the bank’s attorney’s fees. The
County’s second option would be to proceed against Ms. O’Donnell for the deficiency and full payment
but, given her inability to pay her original mortgage, full recovery from her is improbable.
Through negotiations with Ms. O’Donnell and bank representatives, a tentative settlement has been
reached wherein the County shall receive $6,000 in satisfaction of the $23,985.00 SHIP loan. The $6,000
represents 25% of the County’s original loan amount.
Given the strong probability of the County recovering no monies in a foreclosure action, as the
outstanding amount owed on the original mortgage is $122,870.57, not including attorney fees, interest
accrued and costs, the staff and County Attorney’s office believe this settlement is very favorable to the
County and recommends acceptance.
The Board of County Commissioners adopted a Short Sale Policy several years ago that was subsequently
discontinued on May 13, 2014.The policy called for staff to accept either 6% of the Collier County loan
amount or $6,000 (whichever is less, but never less than $500). Under that scenario, Collier County
would have received $1,439.10.
Approval of this item will authorize the Chairman to accept the proposed settlement amount of $6,000
and sign the Satisfaction of Mortgage for recording once the funds are received.
FISCAL IMPACT: The repayment amount of $6,000.00 will be considered program income and will be
deposited in SHIP Grant Fund (791), Project No. 33525. Such funds may be reused for eligible SHIP
program activities. The $10 recording fee will be paid by the recipient.
16.D.7
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09/26/2017
GROWTH MANAGEMENT IMPACT: There is no growth management impact.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote
for approval. -JAB
RECOMMENDATION: To accept the proposed settlement amount and authorize the Chair to execute
the Satisfaction of Mortgage.
PREPARED BY: Elizabeth Hernandez, Grant Support Specialist
ATTACHMENT(S)
1. SOM O'Donnell Short Sale (PDF)
2. Mortgage (1) O'Donnell Short Sale (PDF)
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09/26/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.7
Doc ID: 3632
Item Summary: Recommendation to accept the tentative settlement amount of $6,000, in the
foreclosure action styled New Penn Financial, LLC d/b/a Shellpoint Mortgage v. Elain K. O’Donnell,
Collier County, et. al. (Case No. 11-2017-CA-000779) now pending in the Circuit Court of the Twentieth
Judicial Circuit in and for Collier County, Florida, and authorize the Chair to execute a Satisfaction of
Mortgage.
Meeting Date: 09/26/2017
Prepared by:
Title: – Community & Human Services
Name: Elizabeth Hernandez
08/15/2017 2:49 PM
Submitted by:
Title: Division Director - Cmnty & Human Svc – Public Services Department
Name: Kimberley Grant
08/15/2017 2:49 PM
Approved By:
Review:
Public Services Department Kristi Sonntag Additional Reviewer Completed 08/15/2017 3:38 PM
Community & Human Services Leslie Davis Additional Reviewer Completed 08/15/2017 3:46 PM
Community & Human Services Kristi Sonntag Additional Reviewer Completed 08/15/2017 4:21 PM
Community & Human Services Maggie Lopez Additional Reviewer Completed 08/15/2017 5:25 PM
Operations & Veteran Services Sean Callahan Additional Reviewer Completed 08/16/2017 7:38 AM
Public Services Department Joshua Hammond Level 1 Division Reviewer Completed 08/16/2017 12:45 PM
County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 08/16/2017 2:20 PM
Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 08/17/2017 11:50 AM
Grants Erica Robinson Level 2 Grants Review Completed 08/21/2017 11:29 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/22/2017 9:05 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 08/22/2017 4:26 PM
Budget and Management Office Ed Finn Additional Reviewer Completed 08/24/2017 10:57 AM
Grants Therese Stanley Additional Reviewer Completed 08/25/2017 2:39 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 08/27/2017 9:48 AM
Board of County Commissioners Michael Cox Meeting Completed 09/12/2017 9:00 AM
16.D.7
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16.D.7.aPacket Pg. 1708Attachment: SOM O'Donnell Short Sale (3632 : SHIP SOM Short Sale)
16.D.7.b
Packet Pg. 1709 Attachment: Mortgage (1) O'Donnell Short Sale (3632 : SHIP SOM Short Sale)
16.D.7.b
Packet Pg. 1710 Attachment: Mortgage (1) O'Donnell Short Sale (3632 : SHIP SOM Short Sale)
16.D.7.b
Packet Pg. 1711 Attachment: Mortgage (1) O'Donnell Short Sale (3632 : SHIP SOM Short Sale)
16.D.7.b
Packet Pg. 1712 Attachment: Mortgage (1) O'Donnell Short Sale (3632 : SHIP SOM Short Sale)