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I <br />'1 <br /> I <br /> I <br /> I <br /> <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> <br />I2tter of Credit -3- ............. <br /> <br />Therefore, the developer would have either a contract for deed (with his <br />vendee's- Lq~e~t pledged to the lender) or a mortgage ~with his iutereSt ~';~'~i~- .... " <br />pledged to the lender) or a first real estate mortgage (to the lender). In <br />none of the above cases would a developer be able to provide a first mortgage. <br /> <br />Someone may then say, well how about a second mortgage? I would answer that <br />a second mortgage is only as good as the mortgage holder's will to pay off <br />the first mortgage if somethiug goes awry. <br /> <br />I doubt that the City of Ramsey would ever be willing to foreclose on a <br />~ortgage and pay off a first mortgage. If that is true, the mortgage filing <br />becomes au expensive piece of paper (to the developer) of little value to <br />the City. <br /> <br />I urge the City to require a Letter of Credit or cash bond for developmentt <br />and forego the mortgage requirement. <br /> <br />Sincerelyt <br /> <br />J. Stephen Schmidt <br />Chairman <br /> <br />sk <br /> <br /> <br />