[Board] Mortgage Modification

[Dan Gingras]

I think it’s reasonable to borrow only the amount necessary to pay off Custom float if using the 17K we’ve already put down will not affect our operations.   The fees, in my opinion, should be paid out of operating expenses to reduce interest. 

 

Needless to say, we should execute this instrument as late as possible to meet the conditions of payment with Custom Float thereby reducing our interest a bit.

 

Dan

 

From: board-bounces at portsmouthyc.org [mailto:board-bounces at portsmouthyc.org] On Behalf Of Greg Gebow
Sent: Monday, November 22, 2010 12:46 PM
To: PYC BOD
Subject: [Board] Mortgage Modification

 

Greetings,

 

I spoke with Tim Dargan at Federal Savings Bank this morning. He clarified some of the question I raised regarding the loan offer. On page 1: loan increase is to be what the BOD decides is appropriate not necessarily what the offer shows. On page 2 : Prepayment penalty : This would apply only on an early payoff. For example a re-finance with another bank. Pay-downs of principle or the entire loan by the Club from our internal resources would not trigger the penalty.

 

The original mortgage did not have title insurance because the Bank did not require it. Title insurance is now required by the Bank.

 

Total cost of the transaction:

     a. Flood Certificate:    $22.00

     b. Attorney’s Fees       $648.75  (includes title & title insurance)

     c. Documentation:      $500.00

 

                       Total:       $1,170.75

 

 

Since The Club already has paid a deposit to Custom Floats of $17,000 + I suggest we only borrow that amount necessary to satisfy the remainder of the contractual amount. This would be approx. $35,000 +or-.  John you can remind us of the exact dollar figures, thanks. Also we should decide whether to pay the closing cost out of current funds or add these to loan amount. (which, of course incurs more interest!!)

 

Your comments, please,

 

Regards,

 

Greg

 

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