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South Bed Redevelopment Commission <br />Regular Oeeting - June 6, 1980 <br />6. NEW <br />i. continued..... <br />. Butler: Okay, then the releases of those <br />rtga2es will have to be obtained. <br />Robinson: Tam sure that we have had this <br />ained before, but what happens if these <br />le default on their loans? <br />:rs. Baumgartner: Kissler Corporation turns <br />t over to HUD who will attempt to reconcile <br />ith the people and work with them. <br />Dr. Robinson: Then, who owns it...HUD... <br />d does HUD then pay us for the difference <br />eft on the balance? <br />r. Ellison: No, it is HUD's money that is <br />oaned to the recipient and HUD simply <br />orecloses and acts as a lender. It then <br />ecomes the owner of the property. HUD <br />ometimes trys to dispose of them through <br />rokers and in the event that they <br />annot, then they sometimes offer them a <br />ocality to Homestead. <br />. Ellison: One other question.... will the <br />an terms change? <br />. Baumgartner: No, it will still be <br />my years. In essence, what will happen <br />that one of the old documents will exist. <br />. Ellison: Will the amount that they have <br />paid on the previous loan be credited <br />ainst their loan so that they will end <br />with a loan slightly less than this <br />ount? <br />rs. Baumgartner: No, they will end up <br />ith a loan of this amount, however, the <br />ayments they have paid to Kissel will be <br />efunded to them in total and they will <br />eceive $600.00 from Kissel. <br />17 <br />