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HomeMy WebLinkAbout2016 CON HA (Subordination Agreement) Daniel and Debbie Ceballos - 929 E 13th StreetRecorded Requested By First American Title San Diego AND WHEN RECORDED MAIL TO: CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950 ATTN: HOUSING & GRANTS ORDER NO.: DCVE-5242515 — 12-- DOC# 2016-0480538 111111111111111111111111111111111111111111111111111111111111 Sep 13, 2016 04:36 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $21.00 PAGES: 3 SPACE ABOVE THIS LINE FOR RECORDER'S USE SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST 1N THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT, made this 6T" day of September 2016 by Daniel Alvaro Ceballo Sr. and Debbie Virginia Ceballos, husband and wife as joint tenants owners of the land hereinafter described and hereinafter referred to as "Owners", and The City of National City, a public body , corporate and politic as present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary". WITNESSETH THAT WHEREAS, Owners has executed a deed of trust, dated August 9, 2002, to The Community Development Commission of the City of National City as trustee, covering the Real property in the City of National City, County of San Diego, State of California, described as follows: LOT 14 IN BLOCK 1 OF AUSTIN HEIGHTS, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1938, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, SEPTEMBER 3, 1926. APN: 561-011-18-00 to secure a note in the sum of $30,500.00, dated August 9, 2002, in favor of The Community Development Commission of the City of National City, a public body, corporation and politic, which deed of trust was recorded August 15, 2002, Recording Number 2002-690413 Official Records•of said county; and WHEREAS, Owners has executed, or is about to execute, a deed of trust and note in the sum not to exceed $ 29 7 , 500 00 dated September 3 2016, in favor of Sierra Pacific Mortgage Company, Inc., A California Corporation hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and 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 kimes 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 Page 1 of 3 Casuborda Recorded Requested By First American Title San Diego AND WHEN RECORDED MAIL TO: CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950 ATTN: HOUSING & GRANTS ORDER NO.: DCVE-5242515 — 2,- 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 6TH day of September 2016 by Daniel Alvaro Ceballo Sr. and Debbie Virginia Ceballos, husband and wife as joint tenants owners of the land hereinafter described and hereinafter referred to as "Owners", and The City of National City, a public body , corporate and politic as present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary". WITNESSETH THAT WHEREAS, Owners has executed a deed of trust, dated August 9, 2002, to The Community Development Commission of the City of National City as trustee, covering the Real property in the City of National City, County of San Diego, State of California, described as follows: LOT 14 IN BLOCK 1 OF AUSTIN HEIGHTS, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1938, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, SEPTEMBER 3, 1926. APN: 561-011-18-00 to secure a note in the sum of $30,500.00, dated August 9, 2002, in favor of The Community Development Commission of the City of National City, a public body, corporation and politic, which deed of trust was recorded August 15, 2002, Recording Number 2002-690413 Official Records of said county; and WHEREAS, Owners has executed, or is about to execute, a deed of trust and note in the sum not to exceed $297,500.00 dated September 3 2016, in favor of Sierra Pacific Mortgage Company, Inc., A California Corporation hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and 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 Page 1 of 3 Casuborda • Order No.: DCVE-5242515 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. 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/She 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; (c) He/She 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. Community Development Commission — Housing Authoyty-gf the City of National City By: Ron Morrison, Chairman Beneficiary Daniel varo Ceballos Sr. Debbie Virgini Ceballos (All signatures must be acknowledged) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. Owners Page 2 of 3 Casuborda A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF [ ] Sart b�-et • b On [ ] S-Gp ate 1 i o(0 before me, 1 1 t. f, titan h v+f , a Notary Pub ic, personally appeared j ]17-on, tilom Sor+ who proved to me on the basis of satisfactory evidence, to be the person(/)whose name( is/art subscribed to the within instrument' and acknowledged to me that he/s a/t11fry executed the same in his/h�r/th r authorized capacity(i0) and that by his/h�r/their signature( ')on the instrument the person(s6, or the entity upon behalf of which the person() 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 offici eal. Signature } SS: FOR NOTARY SEAL OR STAMP ti /f ANGELITA MARCHANTE COMM. # 2046693 G) NOTARY PUBLIC.CALIFORNIA z SAN DIEGO COUNTY My Comm. Exp. October 25. 2017 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORN� COUNTY OF [ ] c�\� •e c�� } SS: On J. , \CP before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) as/are subscribed to the within instrument and acknowledged to me that 11itiie/they executed the same in his/$tr/their authorized capacity(ies) and that by his/hhr/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 d official seal. Signature FOR NOTARY SEAL OR STAMP I. lr�c�:v�l�titnvc>��� Q--.R-\ \\C resiboammisirerbammirmirtomiamist CRYSTAL GUERRERO `4; • 44• 1,11s: COMM. #2090646 - "1 i � NOTARY PUBLIC-CALIFORNIA SAN DIEGO COUNTY t My Commission Expires DECEMBER 16 2018 Page 3 of 3 suborda RESOLUTION NO. 2016 — 40 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT ALLOWING A NEW MORTGAGE THAT IS NOT -TO -EXCEED $296,000 TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME PURCHASE ASSISTANCE LOAN ON A SINGLE -UNIT PROPERTY LOCATED AT 929 EAST 13TH STREET IN NATIONAL CITY WHEREAS, Daniel Alvaro Ceballo, Sr. and Debbie Virginia Ceballos ("Borrowers") are the owners of a single -unit property located at 929 East 13th Street in National City; and WHEREAS, on August 9, 2002, the Community Development Commission of the City of National City (CDC) made a loan for $30,500 from the Low Moderate Income Fund to assist in the purchase of the single -unit property; and WHEREAS, the Borrowers desire to refinance the existing first mortgage to reduce the interest rate to 3.5% and term of the loan to 20 years from 30 years with a new mortgage with a principal amount not -to -exceed $296,000 from Sierra Pacific Mortgage Company, Inc., a California Corporation ("Lender"); and WHEREAS, in order to provide the loan, the Lender requires the subordination of the Deed of Trust that secures the HOME funds. 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 and any other Escrow related documents as necessary. After being recorded by the County of San Diego. A copy of the Subordination Agreement will be on file in the office of the City Clerk. PASSED and ADOPTED this 6th day of Sept er 2�16. on Morrison, Chairman ATTEST: Leslie Deese, Secretary APROVED TO F ' M: \)/ 1 A. �Wk. 0.6-4 j • C-u:ia G.cat a Val General •oun .el Passed and adopted by the Community Development Commission — Housing Authority of the City of National City, California, on September 6, 2016 by the following vote, to - wit: Ayes: Boardmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Nays: None. Absent: None. 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. 2016-40 of the Community Development Commission — Housing Authority of the City of National City, California, passed and adopted on September 6, 2016. Secretary, Housing Authority By: Deputy caoNG-ma CITY OF NATIONAL CITY, CALIFORNIA 4 c, y - . COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY COUNCIL AGENDA STATEMENT =ETING DATE: September 6, 2016 AGENDA ITEM NO. 28 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 that is not - to -exceed $296,000 to be and remain a lien prior and superior to a home purchase assistance loan on a single -unit property located at 929 East 13TH Street in National City. PREPARED BY: Angelita Palm Comm. Dev. Specialist II PHONE: 619-336-4219 EXPLANATION: APPROVE DEPARTMENT: Housing & Economic Dev. On August 9, 2002, the Community Development Commission of the City of National City ("CDC") made a loan for $30,500 from the Low and Moderate Income Fund to assist in the purchase of a single-family residence located at 929 East 13TH Street in National City. The loan has an outstanding principal balance of $30,500. Daniel Alvaro Ceballo Sr. and Debbie Virginia Ceballos ("Borrowers") are interested in refinancing the first mortgage loan on the property and have been approved for a new loan from Sierra Pacific Mortgage Company, Inc., A California Corporation ("Lender"). The Lender is requiring that the Community Development Commission -Housing Authority (CDC -HA) execute the attached subordination agreement allowing the new loan to hold superior position to the CDC -issued loan. The CDC -issued loan will maintain second lien position on the property. The purpose of the refinance is to reduce the interest rate to 3.5% and term of the loan to 20 years from 30 years. There will not be cash proceeds to the Borrowers through the refinance. Staff has satisfactorily reviewed the combined loan -to -value, preliminary le report, new loan terms, and underwriting summary that outline the closing costs of the transaction. FINANCIAL STATEMENT: N/A ACCOUNT NO. APPROVED: APPROVED: Finance MIS ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: N/A TTACHMENTS: Attachment No. 1: Subordination Agreement Attachement No. 1 RECORDING REQUESTED BY FIRST AMERICAN TITLE COMPANY AND WHEN RECORDED MAIL TO: CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950 ATTN: HOUSING & GRANTS ORDER NO.: DCVE-5242515 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 6 .' day of September 2016 by Daniel Alvaro Ceballo Sr. and Debbie Virginia Ceballos, husband and wife as ioint tenants owners of the land hereinafter described and hereinafter referred to as "Owners", and The City of National City, a public body , corporate and politic as present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary". WITNESSETH THAT WHEREAS, Owners has executed a deed of trust, dated August 9, 2002, to The Community Development Commission of the City of National City as trustee, covering the Real property in the City of National City, County of San Diego, State of California, described as follows: LOT 14 IN BLOCK 1 OF AUSTIN HEIGHTS, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1938, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, SEPTEMBER 3, 1926. APN: 561-011-18-00 to secure a note in the sum of $30,500.00, dated August 9, 2002, in favor of The Community Development Commission of the City of National City, a public body, corporation and politic, which deed of trust was recorded August 15, 2002, Recording Number 2002-690413 Official Records of said county; and WHEREAS, Owners has executed, or is about to execute, a deed of trust and note in the sum not to exceed $296,000.00 dated 2016, in favor of Sierra Pacific Mortgage Company, Inc., A California Corporation hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and 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 Page 1 of 3 Casuborda Attachement No. 1 Order No.: DCVE-5242515 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. 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/She 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; (c) He/She 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. Community Development Commission — Housing Authority of the City of National City Daniel Alvaro Ceballos Sr. By: Ron Morrison, Chairman Debbie Virginia Ceballos Beneficiary Owners (All signatures must be acknowledged) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. Page 2 of 3 Casuborda Attachement No. 1 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF [ ] On[ ] f 1 } SS: before me, a Notary Public, personally appeared j ] 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. Signature FOR NOTARY SEAL OR STAMP A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF 1 ] Onf ] [ ] a Notary Public, 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. } SS: WITNESS my hand and official seal. before me, Signature FOR NOTARY SEAL OR STAMP Page 3 of 3 suborda RESOLUTION NO. 2016 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT ALLOWING A NEW MORTGAGE THAT IS NOT -TO -EXCEED $296,000 TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME PURCHASE ASSISTANCE LOAN ON A SINGLE -UNIT PROPERTY LOCATED AT 929 EAST 13TH STREET IN NATIONAL CITY WHEREAS, Daniel Alvaro Ceballo, Sr. and Debbie Virginia Ceballos ("Borrowers") are the owners of a single -unit property located at 929 East 13th Street in National City; and WHEREAS, on August 9, 2002, the Community Development Commission of the City of National City (CDC) made a loan for $30,500 from the Low Moderate Income Fund to assist in the purchase of the single -unit property; and WHEREAS, the Borrowers desire to refinance the existing first mortgage to reduce the interest rate to 3.5% and term of the loan to 20 years from 30 years with a new mortgage with a principal amount not -to -exceed $296,000 from Sierra Pacific Mortgage Company, Inc., a California Corporation ("Lender"); and WHEREAS, in order to provide the loan, the Lender requires the subordination of the Deed of Trust that secures the HOME funds. 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 and any other Escrow related documents as necessary. After being recorded by the County of San Diego. A copy of the Subordination Agreement will be on file in the office of the City Clerk. PASSED and ADOPTED this 6th day of September, 2016. Ron Morrison, Chairman ATTEST: Leslie Deese, Secretary APPROVED AS TO FORM: Claudia Gacitua Silva General Counsel CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950-4397 619-336-4228 Michael R. Dalla, CMC - City Clerk DANIEL CEBALLO & DEBBIE CEBALLOS Subordination Agreement 929 East 13th Street Angelita Palma (Housing & Economic Development) Forwarded Copy of Agreement to Daniel Ceballo & Debbie Ceballos.