HomeMy WebLinkAbout2013 CON (Subordination Agreement) Joseph Rader - 2407 "J" AvenueDOC if 2014-0035465
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JAN 27. 2010 3:03 PM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 27.00
PAGES: 5
I IIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII
After Recording return to:
LandSafe Services
Attn: Recording
1831 Chestnut St. 6th FL
St. Louis, MO 63103
This instrument was prepared by:
Towana Garrett
LandSafe Title of California Inc.
1831 Chestnut St 6th FI St. Louis MO 63103
BOA Loan # 248698309
PARCEL TAX MAP ID NO: 5630211800
Real Estate Subordination Agreement
ORIGINAL
THIS SUBORDINATION AGREEMENT ("MAY RESULT" OR "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 Real Estate Subordination Agreement ("Agreement") is executed as of the date herein, by CITY OF
NATIONAL CITY having an address of 140 East 12th Street, National City 91950
("Subordinator"), in favor of Bank of America, N.A., having an address for notice purposes of
Bank of America
4161 Piedmont Parkway
Greensboro, NC 27410
Whereas, Subordinator is the owner and holder of, or creditor under, the indebtedness described in and
secured by a Deed of Trust or Mortgage dated 10/13/2011, executed by JOSEPH J. RADER
And which was recorded on 10/17/2011 in Volume / Book N/A, Page N/A, and if applicable, Document
Number 2011-0544016, of the land records of SAN DIEGO County, State of, California, in the amount of
$32,835.00 as same may have been or is to be modified prior hereto or contemporaneously herewith (the
"Senior Lien"), encumbering the land described therein (said land and such improvements,
appurtenances and other rights and interests regarding said land, if any, as are described in the Senior
Lien being called herein collectively the "Property") (see attached Exhibit "A"); and
Whereas, Bank of America has been requested to make a loan, line of credit or other financial
accommodation to JOSEPH J. RADER
(joint and severally, "Borrower"), to be secured by, without limitation, a deed of trust or mortgage, (the
"Junior Lien"), covering without limitation, the Property and securing the indebtedness described therein
including the payment of a promissory note, line of credit agreement or other borrowing agreement made
by Borrower and/or others payable to the order of Bank of America in the maximum principal face amount
of $120,000.00, including provisions for acceleration and payment of collections costs (the "Obligation")'
the Junior Lien and the Obligation to contain such other terms and provisions as Bank of America and
Borrower shall determine; and
Now, Therefore, for valuable consideration, Subordinator hereby subordinates the Senior Lien to Bank of
America's Junior Lien, subject to the terms of this Agreement. The Subordinator's Senior Lien is
subordinated to Bank of America's Junior Lien only to the extent of the Principal Amount of the Obligation
and any amounts advanced pursuant to the terms of the Obligation or the security instrument for the
payment of insurance premiums, taxes, costs of collection, protection of the value of the property or Bank
of America's rights in the Property or foreclosure. All other rights of Subordinator now or hereafter existing
in or with respect to the Property (including but not limited to all rights and to proceeds of insurance and
condemnation) are hereby subordinated, and are and shall remain completely and unconditionally
subordinate, to the Junior Lien and the rights of Bank of America regardless of the frequency or manner
of renewal, extension, consolidation or modification of the Junior Lien or the Obligation.
This Agreement shall inure to the benefit of the Subordinator and Bank of America and their respective
successors and assigns, including any purchaser(s) (at foreclosure or otherwise) of the Property or any
part thereof, and their respective successors and assigns.
CITY OF NATIONAL CITY
Signature
Leslie Deese
Printed Name
City Manager
Title
December 18,2013
Date
Acknowledgment:
State of Co'lt
County of Sc-. D tea
On IS day of t7cc'e J,-e-( 20 t 3 , before me,
t't. i tjl^ca-. -- , a Notary Public in and for said State, personally
appeared Le& ((1:- A. t).e.c,s-e-- , 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 California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
(seal)
c
/
✓1
Signature of Prserr'taking Acknowledgment
Printed name
Commission Expiration Date pc.1-D6.-X' a5 2o1"1
w y ccna 4 90,56 u c:
NOT YPJ,i3tic C :..r=ORNIA z
S=.N DlE 3O COUNTY
My Comm. Exp. October 25.2017
EXHIBIT A
LEGAL DESCRIPTION:
SITUATED IN COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND DESCRIBED AS FOLLOWS,
TO -WIT:
PARCEL 1:
LOT(S) 1, IN BLOCK 1 OF OLIVEWOOD TERRACE, IN THE CITY OF NATIONAL CITY, COUNTY OF
SAN D►EGO, STATE OF
CALIFORNIA, ACCORDING TO THE MAP THEREOF NO. 1542, FILED IN THE OFFICE OF THE
COUNTY RECORDER OF SAN DIEGO
COUNTY ON MARCH 8, 1913.
EXCEPTING THEREFROM THE EASTERLY 48.32 FEET THEREOF.
ALSO EXCEPTING THEREFROM THE WESTERLY 7.25 FEET OF THE EASTERLY 55.57 FEET OF
THE SOUTHERLY 50.00 FEET OF
SAID LOT 1 ABOVE DESCRIBED.
PARCEL 2:
LOT(S) 1, IN BLOCK 1 OF OLIVEWOOD TERRACE, IN THE CITY OF NATIONAL CITY, COUNTY OF
SAN DIEGO, STATE OF
CALIFORNIA, ACCORDING TO THE MAP THEREOF NO. 1542, FILED IN THE OFFICE OF THE
COUNTY RECORDER OF SAN DIEGO
COUNTY ON MARCH 8, 1913.
EXCEPTING THEREFROM THE WESTERLY 74.65 FEET THEREOF.
ALSO EXCEPTING THEREFROM THE EASTERLY 7.25 FEET OF THE WESTERLY 81.90 FEET OF
THE NORTHERLY 48.6 FEET OF
SAID LOT 1 ABOVE DESCRIBED.
BEING THAT PARCEL OF LAND CONVEYED OR ASSIGNED TO JOSEPH J. RADER, AN
UNMARRIED MAN FROM OWNER OF RECORD BY DATED 10/24/2006 AND RECORDED
10/31/2006 IN DEED INSTRUMENT 2006-0773664 OF THE SAN DIEGO COUNTY, CALIFORNIA
PUBLIC REGISTRY.
PARCEL NO. 5630211800
LOAN #: 248698309 ORDER #: 1600504700
ILLEGIBLE NOTARY SEAL DECLARATION
Government Code 27361.7
I certify under penalty of perjury under the laws of the State of California that the notary
seal on the document to which this statement is attached reads as follows:
Name of Notary
Name of County
Angelita Marchante
San Diego California
Date of Commission Expires
Notary Identification Number
October 25, 2017
GSNI
/020V&te r3
Signature of person (firm names if any) making verification
Date /-0?'-o?o/1'
Location
St. Louis
(City)
State of Missouri
RESOLUTION NO. 2013 — 193
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE A SUBORDINATION
AGREEMENT ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $120,000
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO HOUSING
REHABILITATION ASSISTANCE LOAN ON A SINGLE -UNIT
PROPERTY LOCATED IN NATIONAL CITY
WHEREAS, the City of National City ("City") made a loan for $32,835 from the
HOME Investment Partnership Program to Joseph J. Rader ("Borrower") on October 17, 2011 to
assist the Borrower with the rehabilitation of an owner occupied single-family residence located
at 2407 "J" Avenue in National City (the "Property"); and
WHEREAS, the City is owed an outstanding balance of approximately $33,424;
and
WHEREAS, the Borrower is interested in refinancing the debt on the property
and has been approved for a new loan with Bank of America (the "Lender") that requires the
City to execute a Subordination Agreement allowing the new loan to hold superior position to
the City Loan to 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 4.5% and use loan proceeds to pay off unsecured debt to lower monthly debt
payments; and
WHEREAS, maintaining a second lien position pursuant to the Borrower
refinancing to lower the interest rate while consolidating and lowering total monthly debt
payments further preserves and secures the City's interest in the Property.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the City Manager to execute a Subordination Agreement in
favor of a new First Trust Deed with Bank of America 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 17th day of December, 2013.
on Morrison, Mayor
ATTEST: A'C;' •VED AS TO FORM:
Micael R. Dalla it y Clerk
Clau: is
City Attor
Silva
Passed and adopted by the Council of the City of National City, California, on
December 17, 2013 by the following vote, to -wit:
Ayes: Councilmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City Clerk of the Ci y of ational City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2013-193 of the City of National City, California, passed and
adopted by the Council of said City on December 17, 2013.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA c a o1 - B 0
COUNCIL AGENDA STATEMENT
MEETING DATE:
December 17, 2013
AGENDA ITEM NO. 9
ITEM TITLE:
Resolution of the City Council of the City of National City authorizing the City Manager to execute a
Subordination Agreement allowing a new mortgage not -to -exceed $120,000 to be and remain a lien prior
and superior to a housing rehabilitation assistance loan on a single -unit property located in National City
Housing, Grants, &
PREPARED BY: Carlos Aguirre, Community Dev. Manage DEPARTMENT: Asset Management
PHONE: 619 336-4391 APPROVED BY:
EXPLANATION:
The City of National City (City) made a loan for $32,835 from the HOME Investment Partnership Program
to Joseph J. Rader ("Borrower") on October 17, 2011 to assist the Borrower with the rehabilitation of an owner
occupied single-family residence located at 2407 "J" Avenue in National City. The City is owed an outstanding
balance of $33,424. The Borrower is interested in refinancing the first mortgage loan on the property and has been
approved for a new loan with Bank of America ("Lender").
The Lender is requiring that the City execute the attached subordination agreement allowing the new loan
to hold superior position to the City issued loan. The City 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 4.5% and to
consolidate unsecured debts with loan proceeds thereby lowering total monthly debt payments. Staff has
satisfactorily reviewed the combined loan -to -value, preliminary title report, new loan terms, and good faith estimate
and draft settlement statement that outline the closing costs of the transaction.
FINANCIAL STATEMENT: APPROVED:
ACCOUNT NO. APPROVED:
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:
Finance
MIS
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 City and the Borrower
9 O>..Vt1013 No• Qe\3-1q3
Attachment No. 1
After Recording return to:
CITY OF NATIONAL CITY
140 East 12th Street, National City 91950
CA — LST File No: 1600504700
This instrument was prepared by:
Towana Garrett
LandSafe Title of California Inc.
1831 Chestnut St 6th FI St. Louis MO 63103
BOA Loan # 248698309
PARCEL TAX MAP ID NO: 5630211800
Real Estate Subordination Agreement
THIS SUBORDINATION AGREEMENT ("MAY RESULT" OR "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 Real Estate Subordination Agreement ("Agreement") is executed as of the date herein, by CITY OF
NATIONAL CITY having an address of 140 East 12`h Street, National City 91950
("Subordinator"), in favor of Bank of America, N.A., having an address for notice purposes of
Bank of America
4161 Piedmont Parkway
Greensboro, NC 27410
Whereas, Subordinator is the owner and holder of, or creditor under, the indebtedness described in and
secured by a Deed of Trust or Mortgage dated 10/13/2011, executed by JOSEPH J. RADER
And which was recorded on 10/17/2011 in Volume / Book N/A, Page N/A, and if applicable, Document
Number 2011-0544016, of the land records of SAN DIEGO County, State of, California, in the amount of
$32,835.00 as same may have been or is to be modified prior hereto or contemporaneously herewith (the
"Senior Lien"), encumbering the land described therein (said land and such improvements,
Attachment No. 1
appurtenances and other rights and interests regarding said land, if any, as are described in the Senior
Lien being called herein collectively the "Property") (see attached Exhibit "A"); and
Whereas, Bank of America has been requested to make a loan, line of credit or other financial
accommodation to JOSEPH J. RADER
(joint and severally, "Borrower"), to be secured by, without limitation, a deed of trust or mortgage, (the
"Junior Lien"), covering without limitation, the Property and securing the indebtedness described therein
including the payment of a promissory note, line of credit agreement or other borrowing agreement made
by Borrower and/or others payable to the order of Bank of America in the maximum principal face amount
of $120,000.00, including provisions for acceleration and payment of collections costs (the "Obligation")'
the Junior Lien and the Obligation to contain such other terms and provisions as Bank of America and
Borrower shall determine; and
Now, Therefore, for valuable consideration, Subordinator hereby subordinates the Senior Lien to Bank of
America's Junior Lien, subject to the terms of this Agreement. The Subordinator's Senior Lien is
subordinated to Bank of America's Junior Lien only to the extent of the Principal Amount of the Obligation
and any amounts advanced pursuant to the terms of the Obligation or the security instrument for the
payment of insurance premiums, taxes, costs of collection, protection of the value of the property or Bank
of America's rights in the Property or foreclosure. All other rights of Subordinator now or hereafter existing
in or with respect to the Property (including but not limited to all rights and to proceeds of insurance and
condemnation) are hereby subordinated, and are and shall remain completely and unconditionally
subordinate, to the Junior Lien and the rights of Bank of America regardless of the frequency or manner
of renewal, extension, consolidation or modification of the Junior Lien or the Obligation.
This Agreement shall inure to the benefit of the Subordinator and Bank of America and their respective
successors and assigns, including any purchaser(s) (at foreclosure or otherwise) of the Property or any
part thereof, and their respective successors and assigns.
CITY OF NATIONAL CITY
Signature
Leslie Deese
Printed Name
City Manager
Title
December 18,2013
Date
State of
Acknowledgment:
County of
On day of 20 , before me,
a Notary Public in and for said State, 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 California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
(seal)
Signature of Person taking Acknowledgment
Printed name
Commission Expiration Date
RESOLUTION NO. 2013 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE A SUBORDINATION
AGREEMENT ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $120,000
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO HOUSING
REHABILITATION ASSISTANCE LOAN ON A SINGLE -UNIT
PROPERTY LOCATED IN NATIONAL CITY
WHEREAS, the City of National City ("City") made a loan for $32,835 from the
HOME Investment Partnership Program to Joseph J. Rader ("Borrower") on October 17, 2011 to
assist the Borrower with the rehabilitation of an owner occupied single-family residence located
at 2407 "J" Avenue in National City (the "Property"); and
and
WHEREAS, the City is owed an outstanding balance of approximately $33,424;
WHEREAS, the Borrower is interested in refinancing the debt on the property
and has been approved for a new loan with Bank of America (the "Lender") that requires the
City to execute a Subordination Agreement allowing the new loan to hold superior position to
the City Loan to 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 4.5% and use loan proceeds to pay off unsecured debt to lower monthly debt
payments; and
WHEREAS, maintaining a second lien position pursuant to the Borrower
refinancing to lower the interest rate while consolidating and lowering total monthly debt
payments further preserves and secures the City's interest in the Property.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the City Manager to execute a Subordination Agreement in
favor of a new First Trust Deed with Bank of America 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 17th day of December, 2013.
Ron Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, City Clerk Claudia Gacitua Silva
City Attorney