City to recoup half of home loan balance from former city manager after short sale
City to recoup part of loan balance after short sale of former city manager's home
April 7, 2016
Steamboat Springs — Former Steamboat Springs City Manager Alan Lanning is set to repay a little more than half the amount he owes on a home loan the city extended him nearly a decade ago when he was hired.
Lanning will make the $68,553 payment after he closes on a short sale of his house in Silver Spur in the coming weeks.
City Attorney Dan Foote said the city is now discussing a plan to have Lanning repay the remaining $64,446 of the loan in monthly installments.
Foote told the Steamboat Springs City Council on Tuesday the monthly payment schedule could extend as long as nine years.
Lanning purchased his home here in 2006 for $665,000 when the local housing market was near its peak.
He was given the $133,000 loan due to the difficulty of finding housing here at the time.
Recommended Stories For You
He is planning to sell the home in a short sale for $625,000.
Foote said another lien holder on the property made a concession that allowed the city to receive a little more than half of what it is owed following the closing.
The council was told last month that Lanning expected to have $80,000 available after the short sale to pay back the city and Mountain Valley Bank, which is owed $50,527.
The mortgage lender is owed $535,803.
Foote added the city’s part of the negiotiations regarding the short sale are complete.
"We’re just spectators at this point," Foote said.
The City Council unanimously endorsed the short sale following a controversial executive session last month.
Two council members did not want to enter the session because they preferred to begin discussions about the loan in public.
When they returned from the session, only Council President Walter Magill offered his rationale for why he supported the sale.
He said he did not want the property to enter foreclosure, because the city would be second in line to be repaid on the loan.