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TO: DISCUSS FORECLOSURE CODE ENFORCEMENT BOARD LIEN Assistant County Attorney Chris Paull reviewed the following memo: Members of the Board DATE: May 9, 1984 FILE: of County Commissioners Forclosure of County SUBJECT: Code Enforcement Board Lien - Request for Direction FROM: Chris Ker J. Paull REFERENCES: Assistant County Attorney Indian River County has been named a co-defendant in a foreclosure action by a mortgagee against a certain piece of property known as Jimmy Collins Junk Yard at 4506 45th Street. The County is named the co-defendant because it has a lien on this property resulting from a Code Enforcenent Board action to have the junk yard operated in accordance with the zoning code requirements. The Board had imposed fine of $50 per day till such time as the violation was corrected. The amount of this fine presently totals approximately $15,000. The Court has scheduled a judicial sale of this property for May 21, 1984 at 11:00 a.m., at which the property will be sold to the highest and best bidder for cash. Because the mortgage has priority in time over the County's fine and lien, it is quite likely that the property will be sold for an ameunt VMch is sufficient only to pay the mortgagee's claim and there will be no additional funds available to pay the County's fine. At this point, the County's claim is extinguished. If the County wishes to realize any proceeds from this fine, it will be necessary to appear at the sale and to bid on the property in order to drive up the sale price to a level sufficient to generate _ additional proceeds over and above the first mortgage. Should the County bid on the property, it will then nun the risk of having to buy the property if there are no other bidders willing to out -bid the County. The mortgagee has a claim for $28,029.09 and should the sale of this property generate a price above this amount, the County will apply for distribution of any surplus. There is a possibility that there will be others interested in this property who will bid at the sale thereby generating this surplus. Otherwise, it is requested that the Board give direction as to whether it wishes the County to appear at the sale for the purpose of bidding to protect our lien interest Note that if the County is the high bidder, the County will be required to buy this property for cash, after which we would then own the property and could dispose of it on the market at whatever price can be obtained. 47 :MAY 16 1984 BOOK 57 PACE 47