HomeMy WebLinkAbout2013 CON CDC HA (Subordination Agreement) Javier and Irma Garcia - 519 "I" Avenue• RECORDED ATTHE
REQUEST OF =
Ti
After Recording Return To:
City of National City
Office of the City Clerk
1243 National City Blvd.
National City, CA 91950
Prepared By: Tameshia Mills
2-.Ob/3SV
D O C # 2013-0318374
1111101111111111111111111111110111111111111111111111111111
MAY 21, 2013 8:OO AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 21.00
9 051 PAGES: 3
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SUBORDINATION AGREEMENT
Escrow No: 57667012
This Agreement is made this April 22 , , 2013 by and between Community Development
Commission ("Junior Lender") whose address is 1243 National City Blvd, National City, CA 91950 and
JPMorgan Chase Bank, N.A. ("New Senior Lender"), whose address is 1111 Polaris Parkway,
Columbus, OH 43240.
WHEREAS the Junior Lender is the holder of a security instrument in the principal amount of $ 25,000.00,
executed by Javier Garcia, Jr. and Irma Garcia ("Borrower/s"), to Community Development
Commission.
WHEREAS, said lien is dated June 11, 1999 and recorded on June 24, 1999, as Instrument/Case No.
1999-0441066, of Official Records in the records of San Diego County, and legally described as:
(SEE ATTACHED LEGAL DESCRIPTION)
Property Address: 519 I AVE , NATIONAL CITY, CA 91950 ("Property")
Parcel Number: 5563120200
WHEREAS, the New Senior Lender intends to make a loan to the Borrower(s) in a principal amount up to
$62,717.00 and dated on or about April 22 , , 2013 to be secured by a mrAgegeldeed
of trust granted by and between the New Senior Lender and the Borrower(s) covering the Property, and
WHEREAS the New Senior Lender will only make the loan to the Borrower(s) provided that the Junior
Lender's Lien is subordinate to the New Senior Lender's Lien and
WHEREAS the Junior Lender intends that the New Senior Lender's lien be prior and superior to the Junior
Lender's lien. Junior Lender consents without possibility of revocation, and accepts all provisions, terms,
and conditions of the New Senior Lender's security instrument.
NOW, THEREFORE, it is agreed that in consideration of one dollar and other good and valuable
consideration, the adequacy and receipt of which is hereby acknowledged, the Junior Lender agrees to
subordinate and make the Junior Lender's lien subordinate and junior in all respects to the New Senior
Lender's lien. This agreement shall be binding upon the Junior Lender and Senior Lender, and their
successors, and/or assigns.
4,
9052
SIGNED:
Name:Ron Morrison
Position: Chairman of the Community Development Commission- Housing Authority of the City of
National City
ACKNOWLEDGMENT
State of Cg h. -r ,/'nicer )
County of
On +//„2.rr 3 before me, Vi/YIn,ram Ali /kJ"A,'/OCr CC, bI(c_
f� Mc) - ( sert name and title of the of i er)
personally appeared f"G /i rri ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature -141,, 4iKL
I ) (Seal)
1 Ii
n/-ni 4..that the
VIRGIN IA MILLER
Commission 11874996
Notary Public - California
San Diego County
Comm. Eaaks$ Ose 26, 2013
9053
EXHIBIT A - LEGAL DESCRIPTION
Tax Id Number(s): 5563120200
Land Situated in the City of NATIONAL CITY in the County of San Diego in the State of CA
LOT 1 AND 2 AND THE WESTERLY ONE-HALF OF LOT 3 OF PEPPERPLAT, IN THE CITY OF NATIONAL CITY,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, BEING A RESUBDIVISION OF BLOCK 15 OF THE
SUBDIVISION OF THE SOUTH 1/2 OF 20 ACRE LOT 3 IN QUARTER SECTION 131, RANCHO DE LA NACION,
MAP 1515, FILED DECEMBER 31, 1912.
EXCEPTING THE NORTHERLY 74 FEET THEREOF.
Commonly known as: 519 I AVE , NATIONAL CITY, CA 91950
RESOLUTION NO. 2013— 13
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION — HOUSING AUTHORITY OF
THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN
TO EXECUTE A SUBORDINATION AGREEMENT ALLOWING
A NEW MORTGAGE NOT -TO -EXCEED $65,000 TO BE AND
REMAIN A LIEN PRIOR AND SUPERIOR TO A FIRST-TIME
HOMEBUYER ASSISTANCE LOAN ON
A SINGLE -UNIT PROPERTY LOCATED IN NATIONAL CITY
WHEREAS, the Community Development Commission — Housing Authority of
the City of National City ("CDC -HA") made a loan for $25,000 from the Community Development
Block Grant Program to Javier and Irma Garcia ("Borrower") on June 24, 1999, to assist the
Borrower in the rehabilitation of a single-family residence located at 519 "I" Avenue in National
City (the "Property"); and
WHEREAS, the CDC -HA loan is an installment loan with an outstanding balance
of approximately $2,481.64; and
WHEREAS, the Borrower is interested in refinancing the debt on the property
and has been approved for a new loan with JP Morgan Chase Bank (the "Lender") that requires
the CDC -HA to execute a Subordination Agreement allowing the new loan to hold superior
position to the CDC -HA Loan that will maintain second lien position on the Property; and
WHEREAS, the purpose of the refinance is to allow the Borrower to reduce the
interest rate to 3.5% with no cash proceeds to the Borrower through the escrow tied to the
refinance; and
WHEREAS, maintaining a second lien position pursuant to the Borrower
refinancing to a lower interest rate without cash -out acts to further preserve and secure the
CDC -HA interest in the Property.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission — Housing Authority of the City of National City hereby authorizes the Chairman to
execute a Subordination Agreement in favor of a new First Trust Deed with JPMorgan Chase
Bank 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 19th day of March, 20
n Morrison, Chairman
ATTEST: OVED AS TO FORM:
Leslie Deese, Secretary
Cl: G-' UT' Silva
CDC Gen al nsel
Passed and adopted by the Community Development Commission — Housing Authority
of the City of National City, California, on March 19, 2013 by the following vote, to -wit:
Ayes: Boardmembers Cano, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: Boardmember Natividad.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Housing Authority
Secretary, Housing Authority
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2013-13 of the Community Development Commission — Housing
Authority of the City of National City, California, passed and adopted on March 19,
2013.
Secretary, Housing Authority
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY '-'
COUNCIL AGENDA STATEMENT
EETING DATE:
March 19, 2013
AGENDA ITEM NO. 23
ITEM TITLE:
Resolution of the Community Development Commission- Housing Authority of the City of National City
authorizing the Chairman to execute a Subordination Agreement allowing a new mortgage not -to -exceed
$65,000 to be and remain a lien prior and superior to a housing rehabilitation assistance loan on a single -
unit property located in National City
PREPARED BY: Carlos Aguirre, Comm. Dev. Specialist I DEPARTMENT: Housina and Grantsl
PHONE: 619 336-4391APPROVED BY.
EXPLANATION:
The Community Development Commission -Housing Authority of the City of National City (CDC -HA) made
a loan for $25,000 from the Community Development Block Grant Program to Javier and Irma Garcia
("Borrower") on 6/24/1999 to assist the Borrower in the rehabilitation of a single-family residence located at 519
"I" Ave in National City. The CDC -HA loan is an installment loan with an outstanding balance of $2,481.64. The
Borrower is interested in refinancing the first mortgage loan on the property and has been approved for a new
loan with Chase Bank ("Lender").
The Lender is requiring that the CDC -HA execute the attached subordination agreement allowing the new
loan to hold superior position to the CDC -HA issued loan. The CDC -HA loan will maintain second lien position on
the property. The purpose of the refinance is to allow the Borrower to reduce the interest rate paid to a fixed rate
of 3.5% and there will be no cash proceeds to the Borrowers through the refinance. Staff has satisfactorily
reviewed the combined loan -to -value, preliminary title report, new loan terms, and good faith estimate that outline
the closing costs of the transaction. The CDC-HA's legal counsel will be provided the new Deed of Trust and final
Subordination Agreement to review and approve before the Subordination Agreement is executed by the CDC -
HA.
FINANCIAL STATEMENT: APPROVED: 1/412G",u,,� Finance
ACCOUNT NO. APPROVED: MIS
There is no fiscal impact associated with this request.
ENVIRONMENTAL REVIEW:
Entering into the subordination agreement is exempt from environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Staff recommends the adoption of a resolution to execute the Subordination Agreement.
BOARD / COMMISSION RECOMMENDATION:
There is no board or commission recommendation required for the Subordination Agreement.
ATTACHMENTS:
1. Draft Subordination Agreement between the CDC -HA and the Borrower
�3- \`;
Attachment No. 1 Draft Subordination Agreement
After Recording Return To:
Title Source, Inc.
662 Woodward Ave
Detroit MI 48226
Prepared By: Tameshla Mills
SUBORDINATION AGREEMENT
Escrow No: 57296744
This Agreement is made this , 2013 by and between Community Development
Commission ("Junior Lender') whose address is 1243 National City Blvd, National City, CA 91950 and
JPMorgan Chase Bank, N.A. ("New Senior Lender"), whose address is 1111 Polaris Parkway,
Columbus, OH 43240.
WHEREAS the Junior Lender is the holder of a security instrument in the principal amount of $ 25,000.00,
executed by Javier Garcia, Jr. and Irma Garcia ("Borrower/s"), to Community Development
Commission.
WHEREAS, said lien is dated June 11, 1999 and recorded on June 24, 1999, as Instrument/Case No.
1999-0441066, of Official Records in the records of San Diego County, and legally described as:
(SEE ATTACHED LEGAL DESCRIPTION)
Property Address: 519 I AVE , NATIONAL CITY, CA 91950 ("Property")
Parcel Number. 6663120200
WHEREAS, the New Senior Lender intends to make a loan to the Borrower(s) in a principal amount up to
$62,717.00 and dated on or about , 2013 to be secured by a mortgage/deed
of trust granted by and between the New Senior Lender and the Borrower(s) covering the Property, and
WHEREAS the New Senior Lender will only make the loan to the Borrower(s) provided that the Junior
Lender's Lien is subordinate to the New Senior Lender's Lien and
WHEREAS the Junior Lender intends that the New Senior Lender's lien be prior and superior to the Junior
Lender's lien. Junior Lender consents without possibility of revocation, and accepts all provisions, terms,
and conditions of the New Senior Lender's security instrument.
NOW, THEREFORE, it is agreed that in consideration of one dollar and other good and valuable
consideration, the adequacy and receipt of which is hereby acknowledged, the Junior Lender agrees to
subordinate and make the Junior Lender's lien subordinate and junior in all respects to the New Senior
Lender's lien. This agreement shall be binding upon the Junior Lender and Senior Lender, and their
successors, and/or assigns.
Attachment No. 1 Draft Subordination Agreement
SIGNED:
Name:
Position:
ACKNOWLEDGMENT
State of )
County of
On before me,
(insert name and title of the officer)
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of that the
foregoing paragraph Is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
RESOLUTION NO. 2012 —
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION — HOUSING AUTHORITY OF
THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN
TO EXECUTE A SUBORDINATION AGREEMENT ALLOWING
A NEW MORTGAGE NOT -TO -EXCEED $65,000 TO BE AND
REMAIN A LIEN PRIOR AND SUPERIOR TO A FIRST-TIME
HOMEBUYER ASSISTANCE LOAN ON
A SINGLE -UNIT PROPERTY LOCATED IN NATIONAL CITY
WHEREAS, the Community Development Commission — Housing Authority of
the City of National City ("CDC -HA") made a loan for $25,000 from the Community Development
Block Grant Program to Javier and Irma Garcia ("Borrower") on June 24, 1999, to assist the
Borrower in the rehabilitation of a single-family residence located at 519 "I" Avenue in National
City (the "Property"); and
WHEREAS, the CDC -HA loan is an installment loan with an outstanding balance
of approximately $2,481.64; and
WHEREAS, the Borrower is interested in refinancing the debt on the property
and has been approved for a new loan with JP Morgan Chase Bank (the "Lender") that requires
the CDC -HA to execute a Subordination Agreement allowing the new loan to hold superior
position to the CDC -HA Loan that will maintain second lien position on the Property; and
WHEREAS, the purpose of the refinance is to allow the Borrower to reduce the
interest rate to 3.5% with no cash proceeds to the Borrower through the escrow tied to the
refinance; and
WHEREAS, maintaining a second lien position pursuant to the Borrower
refinancing to a lower interest rate without cash -out acts to further preserve and secure the
CDC -HA interest in the Property.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission — Housing Authority of the City of National City hereby authorizes the Chairman to
execute a Subordination Agreement in favor of a new First Trust Deed with JPMorgan Chase
Bank 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 19th day of March, 2012.
Ron Morrison, Chairman
ATTEST: APPROVED AS TO FORM:
Leslie Deese, Secretary Claudia Gacitua Silva
CDC General Counsel