City of Lawrence

Planning and Development Services Department

 

MEMORANDUM

 

TO:              David L. Corliss, City Manager

 

THRU:                        Victor Q. Torres, Assistant Director, Development Services

 

FROM:         Margene K. Swarts, Community Development Manager

 

DATE:           December 12, 2007

 

 

 

The Community Development Division received requests for a Subordination Agreement for Mortgages the City holds for loan recipients.  The information regarding the requests follows:

 

In July, 2000, Craig Nowatzke, 838 Oak, participated in the HOOT First Time Homebuyer Loan program.  In order to participate in the program, he was required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property.  Mr. Nowatzke wishes to refinance the first mortgage.  In order to do this, the City must subordinate its mortgage to the new loan with Capital Federal Savings Bank.  The City’s interest will be protected and staff recommends approval. 

 

In October, 2004, Lori Phillips, 2104 Tennessee, participated in the Comprehensive Rehabilitation Loan program.  In order to participate in the program, she was required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property.  Ms. Phillips wishes to refinance the first mortgage.  In order to do this, the City must subordinate its mortgage to the new loan with Countrywide Home Loans.  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.