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: January 9, 2013
RE: Subordination Agreement
The Community Development Division received a request for a Subordination Agreement for a lien the City holds for a loan recipient. The information regarding the request follows:
In 2000, Craig Nowatzke, 838 Elm, participated in the City’s First Time Homebuyer 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 primary mortgage on the property and retain a second mortgage with a flexible line of credit. In order to do so the City must subordinate the lien to these loans with Capitol Federal Savings Bank. The City’s interest will be protected and staff recommends approval.
The City Clerk will have the document for the Mayor's signature. If you have further questions, please let me know.