RecDoc 2009-076594 - Laserfiche WebLink

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19. Riehts of Mortgaeees; Mortsaee Lender Acquisition. This Section 20 exists to accommodate and balance the City's interest in maintaining a supply of affordable housing units and the interest of property mortgage lenders ("Lender(s)") in selling Subject Affordable Unit if acquired through foreclosure action or deed in lieu of foreclosure (collectively, "Foreclosure"). Mortgagees shall notify the City within twenty (20) days of filing a Notice of Default against the Subject Affordable Unit. Before acquisition of the Subject Affordable Unit through Foreclosure, the Ciry shall have the option, but not the obligation, to cure such default. Upon acquisition of the Subject Affordable Unit by a Lender through Foreclosure, the Lender shall, at least sixty (60) days prior to selling, conveying, transferring or otherwise disposing of the Subject Affordable Unit, offer to sell the Subject Affordable Unit to the City for a purchase price equal to the original purchase price of the Subject Affordable Unit paid by the defaulting Owner. In the event the City elects to purchase the Subject Affordable Unit, the City and Lender shall open escrow with a mutually agreeable escrow company and shall share equally in escrow related expenses except that City shall not pay any expenses customarily paid by sellers in San Mateo County, Califomia. Such escrow period shall be no less than thirty (30) days. At any time between receipt of offer to purchase the Subject Affordable Unit and the close of escrow as described herein, even after the City notifies Lender that it exercises its option, the City may assign i[s right to purchase the Subject Affordable Unit to a person or entity of its choosing. The City may re-assign its right to purchase to succeeding persons or entities of its choosing in the event that the initial assignees withdraws or is disqualified from the purchase, provided that the close of escrow is within the original ninety (90) days or such additional period as is agreed to by Lender. If the City or an assignee of the City fails to complete the purchase for any reason, the City may withdraw from the purchase without penalty or liability and Lender may sell the Subject Affordable Unit as if the City had failed to exercise its option. In the event Ihe City declines to purchase the Subject Affordable Unit within sixty (60) days of receipt of a written offer to sell the Subject Affordable Unit to the City, or the City elects not to purchase after ninety (90) days in the event escrow is opened as provided herein, the Lender shall be permitted to sell the Subject Affordable Unit, free of [his Resale Agreement, to any third party willing to purchase the Subject Affordable Unit. In such event, in recognition of the City's loss of the Subject Affordable Unit as an affordable housing unit, any sales proceeds received by a Lender in excess of those amounts due the Lender (including reasonable foreclosure expenses and closing costs), shall be remitted to the City concurrendy with the close of escrow for the sale. In connection with such sale, the City shall cooperate with the Lender in the timely execution of any documents reasonably necessary to terminate this Resale Agreement with respect to the particular Subject Affordable Unit. 20. Main[enance of Propertv. During such time as this Resale Agreement is in effect, the Subject Affordable Unit shall at all times be maintained in a neat and orderly condition, good order and repair, consistent with good ownership practices, and in accordance with all applicable Federal, State and local laws. 21. Notices. Any notice required to be given hereunder shall be given by personal delivery or by registered or certified mail at the addresses specified below or at such other addresses as may be specified in writing by the parties hereto: Exhibit B Page 10