Settlement ends foreclosure threat by Palm Bay against owner of ‘Homes for Warriors' house

PALM BAY, Fla. — In 2016, Eric Davidson and his family moved into a mortgage-free home as part of Palm Bay’s “Homes for Warriors” program.

In exchange for living in the home mortgage free, the Davidsons agreed to live in the home for 15 years.

Recently, though, the family decided to move and sell the home, which prompted the city to file a foreclosure on the property and ask the court for an emergency injunction to halt the sale.

Instead, the two sides reached a settlement agreement, in which the Davidsons would pay the city the outstanding balance on the home, about $155,000, and a $1,200 storm water assessment.

Without the settlement, the Davidsons would have only owed the city $50,000 for the home, which had a list price of $200,000.

Palm Bay deputy city attorney Rodney Edwards said recent press coverage of the “Homes for Warriors” program and questions about the oversight of grant dollars may have played a part in the family’s decision to walk away from the home.

The city took the actions it did because it had to, he said.

“In order to be compliant with (Housing and Urban Development) and various requirements, we had to recoup as much of the funds as possible,” Edwards said.

The Davidsons closed on the sale of the house Monday.

City officials were working with the remaining recipients in the program to update mortgage documents and make sure they, and the city, are meeting the HUD requirements that come with the properties, Edwards said.

Cox Media Group