MEMORANDUM
Planning and Development Services Department
TO: David L. Corliss, City Manager
FROM: Margene K. Swarts, Assistant Director, Development Services
CC: Scott McCullough, Director, Planning and Development Services
DATE: October 19, 2010
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 2005, Sandra Unfred, 828 Locust, participated in the First Time Homebuyer 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. Unfred wishes to refinance the primary mortgage on the property and in order to do so the City must subordinate the lien to the new loan with Capitol Federal Savings Bank. The City’s interest will be protected and staff recommends approval.
In 1995, Stan and Cathy Weil, 1706 Vermont, participated in the Comprehensive Rehabilitation 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. Mr. and Mrs. Weil wish to refinance the primary mortgage on the property and in order to do so the City must subordinate the lien to the new loan with Capital City 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.