MEMORANDUM
Planning and Development Services Department
TO: David L. Corliss, City Manager
FROM: Danelle Dresslar, Management Analyst, Development Services
CC: Scott McCullough, Director, Planning and Development Services
DATE: March 5, 2013
RE: Subordination Agreement
The Community Development Division received requests for a Subordination Agreement for a lien the City holds for a loan recipient. The information regarding the requests follows:
In 1998, Arthur and Shirley Tarpy, 625 Lake, participated in the City’s Comprehensive Rehabilitation 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. Ms. Tarpy wishes to finance a primary mortgage on the property. In order to do so the City must subordinate the lien to the loan with US bank. The City’s interest will be protected and staff recommends approval.
In 2005, James Martinez, 2471 Brookside Drive, participated in the City’s Homeowners Out of Tenants (HOOT) program. In order to participate in the program, he was required to sign a mortgage note to protect the City’s interest in the property. Mr. Martinez wishes to finance a primary mortgage on the property. In order to do so the City must subordinate the lien to the loan with Mainstreet Credit Union. The City’s interest will be protected and staff recommends approval.
In 1997, Ruth Townsend, 1061 Home Circle, participated in the City’s First Time Homebuyer program. In order to participate in the program, she was required to sign a mortgage note to protect the City’s interest in the property. Ms. Townsend wishes to finance a primary mortgage on the property. In order to do so the City must subordinate the lien to the loan with Central National Bank. The City’s interest will 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.