GLOVERSVILLE - Mayor Dayton King said he and his wife plan to settle a foreclosure on their home on Seventh Avenue.
"We fell behind a couple years ago due to family health issues and are now finalizing this process," King said last week. "We are moving forward, intend to raise our children in our home in the city and are in a better position now than we were a couple years ago."
According to court documents, the mayor and his wife are scheduled to appear at a settlement conference Wednesday in state Civil Supreme Court in Johnstown before Justice Joseph M. Sise.
"Hopefully, that is the last step in finalizing everything and moving forward," King said.
King said they have essentially refinanced their payment with a new lender and it is possible the issue may be settled outside of court.
"I believe many young families are struggling to live within their means and we are no different," King said. "When unexpected costs arise, it is very easy to fall behind on payments. We are very involved in our community and are asked to get involved in many things."
The attorney for Wells Fargo listed in court papers, Jordi Kushner of Bay Shore, Suffolk County, declined to comment on anything regarding the foreclosure.
According to court documents, Wells Fargo Bank is seeking foreclosure of the mayor's house at 27 Seventh Ave., claiming King and his wife failed to make payments due April 1, 2010, leaving a principal of $55,524. The documents said the principal balance is due and the bank may seek reimbursement for other expenses if necessary.
However, King said the loan is now being carried by Select Portfolio Servicing.
"Essentially, what we have done is refinanced with a new lender, Select Portfolio, and we are satisfying the Wells Fargo bank loan," King said.
He said the mayor's salary of $39,000 is little to raise a family of four people on.
"When some people complained that I should not be working a part-time job to subsidize this income, we cut back our expenses even more," King said. "We have decided to make sacrifices in our personal life to help our community as much as we can."