HomeMy WebLinkAbout2011 CON CDC Miguel & Alicia Hernandez - Subordination Agreement 1334 Tecolote CourtE
'RECORDING REQUESTED BY
Lawyers Title - SD
AND WHEN RECORDED MAIL TO:
OFFICE OF THE CITY CLERK
CITY OF NATIONAL CITY
1243 NATIONAL CITY BLVD
NATIONAL CITY, CA. 91950
APN: 558-092-39-00
Escrow No: CAL15844 -LT145 - NL
Title No: 311317905
D O C It 2011-0475073
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SEP 14, 2011 8:00 AM 5613
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr, COUNTY RECORDER
FEES: 27.00
PAGES
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Space above this line for Recorder's use
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE
PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR
LATER SECURITY INSTRUMENT.
THIS AGREEMENT, made this AUGUST 16, 2011 by MIGUEL S. HERNANDEZ AND ALICIA B. HERNANDEZ,
HUSBAND AND WIFE AS JOINT TENANTS owner of the land hereinafter described and hereinafter referred to
as "Owner", and COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY present
owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as
"Beneficiary";
WITNESSETH
THAT WHEREAS, Owner has executed a deed of trust, dated OCTOBER 10, 1996, to CONTINENTAL
LAWYERS TITLE , as trustee, covering:
For legal description of the real property, see Exhibit A attached hereto and made a part hereof.
Commonly known as: 1334 Tecolote Court, National City CA, 91950
to secure a note in the sum of $ 25,000.00, dated OCTOBER 10, 1996, in favor of COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, which deed of trust was recorded
OCTOBER 30. 1996, as instrument No. 1996-0549446 Official Records of said county; and
WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum
$195,000.00, dated 09/07/2011, in favor of SAN DIEGO COUNTY CREDIT UNION , hereinafter referred
as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is
be recorded concurrently herewith; and
of
to
to
WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall
unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior
to the lien or charge of the deed of trust first above mentioned; and
WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge
upon the above described property prior and superior to the lien or charge of the deed of trust first above
mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the
deed of trust first above mentioned to the lien or charge of the deed of trust in favor or Lender; and
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and
Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge
upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above
mentioned.
Page 1 of 5
Escrow No.: CAL15844 - LT145 - NL
NOW THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable
consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce
Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows:
(1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall
unconditionally be and remain at all times a lien or charge on the property therein described, prior and
superior to the lien or charge of the deed of trust first above mentioned.
(2) That Lender would not make its loan above described without this subordination agreement.
(3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or
charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender
above referred to and shall supersede and cancel, but only insofar as would affect the priority between the
deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but
not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for
the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or
mortgages.
Beneficiary declares, agrees and acknowledges that
(a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred
to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and
Lender for the disbursement of the proceeds of Lender's loan;
(b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has
Lender represented that it will, see to the application of such proceeds by the person or persons to whom
Lender disburses such proceeds and any application or use of such proceeds for purposes other than those
provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in
part;
5614
(c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of
trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender
above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment
and subordination specific loans and advances are being and will be entered into which would not be made or
entered into but for said reliance upon this waiver, relinquishment and subordination; and
(d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said
deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of
Lender above referred to.
NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON
OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE
EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND.
Beneficiary
Community Development Commission of the City of
National City
Ron Morrison, Chairman
Owner
M GU
. HERNANDEZ tJ
ALICIA B. HERNAND
0/-7
EZ
Page 2 of 5
5615
(All signatures must be acknowledged)
Form Furnished By Lawyers Title Carlsbad
IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE
PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
(SUBORDINATION FORM "A")
Deed of Trust to New Deed of Trust
Page 3 of 5
suborda
Escrow No.: CAL15844 - LT145 - NL
5 616
STATE OF CALIFORVI IA
COUNTY
}SS:
On N" 7-// before me, ( ir`at0fQ
(here in name and title of the officer)
appeared ROT) roarrl.Sern LLIVVVJJJ
who proved to me on the basis of satisfactory evidence to be the personfeer whose names. is/are subscribed to
the within instrument and acknowledged to me that he/s+e/they executed the same in his/krerfNteir authorized
capacityjjQs), and that by his/her{t#eir signature on the instrument the person €), or the entity upon behalf of
which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
true and correct.
WITNESS my hand and official seal.
Signature
STATE OF CALI • RNI .-
COUNTY•F
}Ss:
On • \\ before me,
c
appeared �� , . who proved tom on the basis o\COY(
atisfactory
the within instrument and acknowled
capacity(ies), and that by his/her
which the person(s) acted, executed the instrument.
1 /lie_l , a Notary Public, personally
of the State of California that the foregoing paragraph is
VIRGp9A MILLER
Y �`: Commission 0 1674996
-1 I.
rn • NotifSan Diego �
��_Ic°risir llfri:'
(This area for notary stamp)
" DC a Notary Public, personally
(herd 1sZert\ ame.and1tC , o hofficer� ,^^
dence to be the person(s) whose nbme(s)I are cribed to
•
ed to me that he/sh:;`i executed the same in his/her/ eir)authorized
ignature(s) on the instrument the person(s), or the entity upon behalf of
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITNESS my hand and official seal.
Sig ature
(This area for notary stamp)
TIFFANIE KAY NEENAN - L Commission # 1903602
<[a=er Notary Public - California
9 San Diego County
•
My Comm. Expires Sep 11, 2014
Page 4 of 5
5617
Exhibit A
All that certain real property situated in the City of National City, County of San Diego, State of California,
described as follows:
Parcel 1:
Lot 3 of Map 13296, in the City of National City, County of San Diego, State of California, maps in the
office of the County Recorder of San Diego County, California.
Parcel 2:
Non-exclusive easements for access, ingress, egress and other purposes, all as described and subject to
the Declaration of Restrictions recorded on February 2, 1996, as file no. 1996-0053669, official records of
San Diego County, California.
RESOLUTION NO. 2011 — 202
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY ("CDC") AUTHORIZING
THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT
WITH MIGUEL S. HERNANDEZ AND ALICIA B. HERNANDEZ
ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $196,000
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO
A FIRST-TIME HOMEBUYER ASSISTANCE LOAN OF $25,000
ISSUED BY THE CDC ON A SINGLE -UNIT PROPERTY
LOCATED AT 1334 TECOLOTE COURT IN NATIONAL CITY
WHEREAS, the Community Development Commission of the City of National
City ("CDC") made a loan of $25,000 ("CDC Loan") issued from the Low Moderate Income Fund
to Miguel S. Hernandez and Alicia B. Hernandez ("Borrowers") on October 10, 1996, to assist
an eligible household in the purchase of a single-family house located at 1334 Tecolote Court n
National City (the "Property"); and
WHEREAS, the existing CDC Loan is an Enforceable Obligation entered into
before January 1, 2011; and
WHEREAS, the CDC Loan is fully deferred until 2029, as long as the residence
is occupied by the Borrowers and the Borrowers perform under all other Covenants and
Agreements contained in the Deed of Trust of the CDC Loan; and
WHEREAS, the Borrowers are interested in refinancing the debt on the property
and have been approved for a new loan with San Diego County Credit Union ("Lender") that
requires the CDC to execute a Subordination Agreement allowing the new loan to hold superior
position to the CDC Loan that will maintain second lien position on the Property; and
WHEREAS, the purpose of the refinance is to allow the Borrowers to reduce the
interest rate paid on their current mortgage to 4.0% with no cash proceeds to the Borrowers
through the escrow tied to the refinance; and
WHEREAS, maintaining a second lien position pursuant to the Borrowers
refinancing to a lower interest rate without cash -out acts to further preserve and secure the CDC
interest in the Property.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes its Chairman to execute a
Subordination Agreement in favor of a new First Trust Deed with San Diego County Credit
Union as beneficiary. After being recorded by the County of San Diego, said Subordination
Agreement will be on file in the office of the City Clerk.
PASSED and ADOPTED this 6th day of Septemb 2011.
on Morrison, Chairman
'PROVED ' . TO FORM:
fti
a.`'dia Ga - Silva
CDC Gener: ��unsel
Passed and adopted by the Community Development Commission of the City of
National City, California, on September 6, 2011, by the following vote, to -wit:
Ayes: Commissioners Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary, Zb+uulopment Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-202 of the Community Development Commission of the City
of National City, California, passed and adopted on September 6, 2011.
Secretary, Community Development Commission
By:
Deputy
?ETING DATE:
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION
COUNCIL AGENDA STATEMENT
September 6, 2011
AGENDA ITEM NO. 40
ITEM TITLE:
Resolution of the Community Development Commission of the City of National City authorizing its
Chairman to execute a Subordination Agreement with Miguel S. Hernandez and Alicia B. Hernandez
allowing a new mortgage not -to -exceed $196,000 to be and remain a lien prior and superior to a First -
Time Home Buyer assistance loan of $25,000 issued by the CDC on a single -unit property located at
1334 Tecolote Court in National City ,p/
PREPARED BY: Carlos Aguirre, Comm. Dev. Specialist II DEPARTMENT: Adminstrative Services
PHONE: 619 336-4391 APPROVED
EXPLANATION:
The CDC made a loan for $25,000 from the Low -Moderate Housing Fund to Miguel S. and Alicia B.
Hernandez ("Borrowers") on October 10, 1996 to assist and eligible household in the purchase of a new
single-family house located at 1334 Tecolote Court in National City. The CDC loan is fully deferred until
October 10, 2029 as long as the residence is occupied by the Borrowers and the Borrowers perform under
all other Covenants and Agreements contained in the Deed of Trust of the CDC loan. The Borrowers are
interested in refinancing the current debt on the property and have been approved for a new loan with San
Diego County Credit Union. The new lender is requiring that the CDC execute a subordination agreement
allowing the new loan to hold superior position to the CDC -issued loan. The CDC loan will maintain second
lien position on the property. The purpose of the refinance is to allow the Borrowers to reduce the interest
rate paid a fixed rate of 4.0% and there will be no cash proceeds to the Borrowers through the refinance
ansaction. The new combined loan -to -value (CLTV) ratio will be 72% as substantiated by a current
appraisal of the property at $305,000. Staff has also satisfactorily reviewed the Borrowers' credit report,
preliminary title report, new loan note terms, and closing statement.
FINANCIAL STATEMENT:
ACCOUNT NO.
APPROVED: /,.. Fidance
APPROVED: IS
There is no fiscal impact associated with this request. The existing CDC loan is an "enforceablebbligation"
entered into before January 1, 2011.
ENVIRONMENTAL REVIEW:
The subordination agreement is exempt from environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Staff recommends the approval of the resolution to execute the Subordination Agreement.
BOARD 1 COMMISSION RECOMMENDATION:
There is no board or commission recommendation required for the Subordination Agreement.
,TTACHMENTS:
1. Subordination Agreement between CDC and Borrowers
2. New First Trust Deed with San Diego County Credit Union as the Beneficiary
- INCORpO tATEl)
OFFICE OF THE CITY CLERK
1243 National City Blvd.
National City, California 91950
Michael R. Dalla, CMC - City Clerk
619-336-4228 phone / 619-336-4229 fax
MIGUEL & ALICIA HERNANDEZ
Resolution No. 2011-202
Subordination Agreement
1334 Tecolote Court
Carlos Aguirre (Housing & Grants)
Forwarded Agreement to Borrower