HomeMy WebLinkAbout2016 CON (Subordination Agreement) Venus Mcnight - 2738 Melrose Streetrorr!.inC rrr »" I by
2o'to -149
��aa , r^ �, Tn. L L,OMPANY
RECCII j� E'QUE TED BY
FIRST AMERICAlr' TITLE COMPANY
AND WHEN RECORDED MAIL TO:
CITY OF NATIONAL CITY
1243 NATIONAL CITY BLVD
NATIONAL CITY,,CA 91950
ATTN: HOUSING & ECON DEV
ORDER NO.: 10034169
DOC# 2016-0505025
11111111111111111111111111111111111111111111111111111111
Sep 23, 2016 08:00 AM
OFFICIAL RECORDS
Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $24.00
PAGES: 4
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 20' day of September 2016 by Venus McKnight, owner 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 April 1, 2015, to 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 53 OF NATIONAL AWARD HOMES, UNIT NO. 1 IN THE CITY OF NATIONAL, COUNTY OF SAN DIEGO, STATE
OF CALIFORNIA, ACCORDING TO MAP, THERE OF NO. 4268, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY, JULY17, 1958.
APN: 554-243-07-00
to secure a note in the sum of $23,809.00, dated April 1, 2015, in favor of the City of National City, a public body, corporation
and politic, which deed of trust was recorded April 2, 2015, Recording Number 2015-0155148 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 $268,000.00
dated Septembers. 1 6 2016, in favor of First California Funding, 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
R vprellr
y;, A .
• 9�!{ C �T ,i L APANY
RECORDfG E 'TED BY
FIRST AMERICAN TITLE COMPANY
AND WHEN RECORDED MAIL TO:
CITY OF NATIONAL CITY
1243 NATIONAL CITY BLVD
NATIONAL CITY, CA 91950
ATTN: HOUSING & ECON DEV
ORDER NO.: 10034169
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 20TH day of September 2016 by Venus McKnight, owner 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 April 1, 2015, to 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 53 OF NATIONAL AWARD HOMES, UNIT NO. 1 IN THE CITY OF NATIONAL, COUNTY OF SAN DIEGO, STATE
OF CALIFORNIA, ACCORDING TO MAP, THERE OF NO. 4268, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY, JULY17, 1958.
APN: 554-243-07-00
to secure a note in the sum of $23,809.00, dated April 1, 2015, in favor of the City of National City, a public body, corporation
and politic, which deed of trust was recorded April 2, 2015, Recording Number 2015-0155148 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 $268,000.00
dated September 1 6 2016, in favor of First California Funding, 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.
City of National City
By: Ron Morrison, Mayor
Vitimmvitid
enus McKnight
Beneficiary Owner
(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
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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 [ ] Y`4'` Dt,c30
} SS:
On 1 P m-6•—r .94 1"0 1 ( before me,
f ] Per•teUfa. Mj&re..6- -
a Notary Public, personally appeared f 112.on Morn co-l.,
who proved to me on the basis of satisfactory evidence to be
the personV)whose name') is/ale subscribed to the within
instrument and acknowledged to me that he/sl/th$ executed
the same in his/h r/thetr authorized capacity(i< and that by
his/h fir/thOr signature(s)on the instrument the personcsir 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 official sealfi i
iu
Signature
FOR NOTARY SEAL OR ST
ANGEUTA MARCHANTE yI
COMM. # r46693 G2
NOTARY PUBLIC'CALIFORNIA
0 SAN DIEGO COUNTY -;
r �4 My Comm. Exp. October 25, 2011
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 CALIFO A
COUNTY OF [ 1Wifi I'E'
On
i 1 n ) .'Tpr i
a Notary Public, personally appear
who proved to me on the basis of`Satisfactory evidence tNbe
the person(p}whose name(?) ,Mare subscribed to the within
instrument and acknowledged to me that he//they executed
the same in his/h %their authorized capacity(4) and that by
his/, e)their signaturefA)on the instrument the person(,, or the
entiTy upon behalf of which the persons) 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.
Sig
before me,
YY0\6_
FOR NOTARY SEAL OR STAMP
MORIENE J. TOOMEY
Commission # 2127926
Notary Public - California
San Diego County
Comm. Expires Sep 25, 201
Page 3 of 3
suborda
PRELIMINARY REPORT PACIFIC COAST TITLE COMPANY
ESCROW NO.: 10034169-- TITLE NO.: 10034169-OCT-SM
EXHIBIT A
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF NATIONAL CITY, COUNTY OF SAN
DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
LOT 53 OF NATIONAL AWARD HOMES UNIT NO. 1, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO,
STATE OF CALIFORNIA, ACCORDING TO MAP NO. 4268, FILED IN THE OFFICE OF THE COUNTY RECORDER OF
SAN DIEGO COUNTY, JULY 17, 1959.
APN: 554-243-07-00
CLTA Preliminary Report Form — Modified (11/17/06) Page 3
RESOLUTION NO. 2016 — 149
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A SUBORDINATION AGREEMENT
ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $268,000
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME
PURCHASE ASSISTANCE LOAN ON A SINGLE -UNIT PROPERTY
LOCATED AT 2738 MELROSE STREET IN NATIONAL CITY
WHEREAS, Venus McKnight ("Borrower") is the owner of a single -unit property
located at 2738 Melrose Street in National City; and
WHEREAS, on April 1, 2015 the City of National City made a loan to Borrower
for $23,809 from the HOME Investment Partnerships Program to assist in the rehabilitation of
the single -unit property; and
WHEREAS, the Borrower desires to refinance the existing first mortgage to
reduce the interest rate to 3.49% with a new mortgage with a principal amount not -to -exceed
$268,000 from First California Funding, 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 City Council of the City of
National City hereby authorizes the Mayor 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 20th day of Septembej_ p16
Morrison, Mayor
ATTEST:
el R. Dalla C t
PPROVED AS TO FORM:
audia Gacitua
City Attorney
Michy Clerk
Passed and adopted by the Council of the City of National City, California, on
September 20, 2016 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios.
Nays: None.
Absent: Councilmember Sotelo-Solis.
Abstain: None.
AUTHENTICATED BY:
RON MORRISON
Mayor of the City of National City, California
// ie
City CI rk of the City of%Jational City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2016-149 of the City of National City, California, passed and
adopted by the Council of said City on September 20, 2016.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
C`Ao‘6-''5
MEETING DATE: September 20, 2016
AGENDA ITEM NO. 9
ITEM TITLE:
Resolution of the City Council of the City of National City authorizing the Mayor to execute a
Subordination Agreement allowing a new mortgage that is not -to -exceed $268,000 to be and remain a
lien prior and superior to a home purchase assistance loan on a single -unit property located at 2738
Melrose Street in National City.
PREPARED BY: Angelita PaIm Comm. Dev. Specialist II DEPARTMENT: 'sing & Economic Dev.
PHONE: 619-336-4219 APPROV Y:
EXPLANATION:
On April 1, 2015, the City of National City ("City") made a loan for $23,809 from the HOME
Partnerships Program to assist in the rehabilitation of a single-family residence located at 2738 Melrose
Street in National City. The City loan is a shared 1 % deferred interest with an outstanding balance of
$23,809. Venus McKnight ("Borrower") is interested in refinancing the first mortgage loan on the
property and has been approved for a new loan from First California Funding, a California Corporation
("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 reduce the interest rate paid to a fixed rate
of 3.49% for a term of 30 years. There will be no cash proceeds to the Borrower through the refinance.
rItaff has satisfactorily reviewed the combined loan -to -value, preliminary title report, new loan terms,
nd underwriting summary that outline the closing costs of the transaction.
FINANCIAL STATEMENT:
ACCOUNT NO.
N/A
ENVIRONMENTAL REVIEW:
IN/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
APPROVED:
APPROVED:
Finance
MIS
STAFF RECOMMENDATION:
Adopt the Resolution.
BOARD / COMMISSION RECOMMENDATION:
N/A,
ATTACHMENTS:
1. Subordination Agreement
.oww0NO • ra0k6•\N9
Attachment 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 & ECON DEV
ORDER NO.: 10034169
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 20Tn day of September 2016 by Venus McKnight, owner 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 April 1, 2015, to 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 53 OF NATIONAL AWARD HOMES, UNIT NO. 1 IN THE CITY OF NATIONAL, COUNTY OF SAN DIEGO, STATE
OF CALIFORNIA, ACCORDING TO MAP, THERE OF NO. 4268, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY, JULY17, 1958.
APN: 554-243-07-00
to secure a note in the sum of $23.809.00, dated April 1, 2015, in favor of the City of National City, a public body, corporation
and politic, which deed of trust was recorded April 2, 2015, Recording Number 2015-0155148 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 $268,000.00
dated 2016, in favor of First California Funding. 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
Attachment 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.
City of National City
By: Ron Morrison, Mayor Venus McKnight
Beneficiary Owner
(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
Attachment 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 f 1
On[ ]
f 1
} SS:
before me,
a Notary Public, personally appeared f ]
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 Califomia 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
On ]
f 1
} SS:
before me,
a Notary Public, personally appeared f ]
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
Page 3 of 3
suborda
RESOLUTION NO. 2016 — 149
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A SUBORDINATION AGREEMENT
ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $268,000
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME
PURCHASE ASSISTANCE LOAN ON A SINGLE -UNIT PROPERTY
LOCATED AT 2738 MELROSE STREET IN NATIONAL CITY
WHEREAS, Venus McKnight ("Borrower") is the owner of a single -unit property
located at 2738 Melrose Street in National City; and
WHEREAS, on April 1, 2015 the City of National City made a loan to Borrower
for $23,809 from the HOME Investment Partnerships Program to assist in the rehabilitation of
the single -unit property; and
WHEREAS, the Borrower desires to refinance the existing first mortgage to
reduce the interest rate to 3.49% with a new mortgage with a principal amount not -to -exceed
$268,000 from First California Funding, 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 City Council of the City of
National City hereby authorizes the Mayor 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 20th day of September, 2016.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Claudia Gacitua Silva
City Attorney
........ ..unll////pGe
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
VENUS MCKNIGHT
Subordination Agreement
2738 Melrose Street
Angelita Palma (Housing & Economic Development) Forwarded
Copy of Agreement to Venus McKnight.