Neighborhood Resources Department
MEMORANDUM
TO: Mike Wildgen, City Manager
THRU: Victor Torres, Director, Neighborhood Resources
FROM: Margene K. Swarts, Community Development Manager
DATE: March 1, 2005
The Community Development Division received requests for a Subordination Agreement for a Mortgage the City holds for a loan recipient. The information regarding the requests follows:
In February, 1996 and October, 1997, Danette Michaels, 945 Highland Drive, participated in the Emergency Loan and Comprehensive Rehabilitation Loan Programs. In order to participate in the programs, she was required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property. Ms. Michaels wishes to refinance her primary mortgage. In order to do this, the City must subordinate its mortgage to the new loan with Capitol Federal Savings. The City’s interest will still be protected and staff recommends approval.
In October, 2000, Lenny and Kimberly DeFazio, 1602 Irving Road, participated in the HOOT First Time Homebuyer Loan Program. In order to participate in the program, they were required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property. The DeFazio’s wish to refinance their primary mortgage. In order to do this, the City must subordinate its mortgage to the new loan with Capitol Federal Savings. The City’s interest will still be protected and staff recommends approval.
The City Clerk will have the documents for the Mayor's signature. If you have further questions, please let me know.