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HomeMy WebLinkAbout2016 CON HA (Subordination Agreement) Teresa Trujillo Labra - 1928 E "E" AvenueNOTE TO FILE 02-05-18 IN THE MATTER OF: Resolution 2016-44, of the City Council 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. Please note the following: A FULLY EXECUTED ORIGINAL RECORDED SUBORDINATION AGREEMENT WAS NEVER FILED WITH THE OFFICE OF THE CITY CLERK. A COPY OF THE SUBORDINATION AGREEMENT WAS PROVIDED. ORIGINATING DEPARTMENT: NTF CDC X Housing & Grants City Attorney Human Resources City Manager MIS Community Svcs. Planning Engineering Police Finance Public Works Fire FIDELITY 60TIONAL TITLE RECORDING RISTED BY FIRST AMERICAN TITLE COMPANY AND WHEN RECORDED MAIL TO: CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950 ATTN: HOUSING & ECONOMIC DEV ORDER NO.: 00148707-996-MCO-JH7 DOC# 2016-0668676 I III I I 1 1111111111 II I IIII 1111111111 I II 111111 IIII IF I IIII Dec 06, 2016 02:43 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $33.00 PAGES: 7 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 1st day of November 2016 by Teresa Trujillo Labra, owner of the land hereinafter described and hereinafter referred to as "Owners", and the Community Development Commission -Housing Authority of 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 March 13, 2014, to the Community Development Commission - Housing Authority 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: ALL OF LOTS 6 AND 7 IN BLOCK 1, OF POWELL'S SUBDIVISION OF THE WEST HALF OF LOT 13 IN QUARTER SECTION 153 OF RANCHO DE LA NACION, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1270, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE 29, 1910. EXCEPTING THEREFROM SAID LOTS 6 AND 7 THE WESTERLY 47.92 FEET. EXCEPTING THEREFROM ALSO FROM LOT 7 THE NORTHERLY 32 FEET. APN: 560-251-08-00 to secure a note in the sum of $18,026, dated March 13, 2014, in favor of The Community Development Commission -Housing Authority of the City of National City, a public body, corporation and politic, which deed of trust was recorded March 17. 2014, Recording Number 2014-0103793 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 $106,000 dated N D V . 2 sg., 2016, in favor of Wells Fargo Bank, N.A.,, 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 Non -Order Search Doc: SD:2016 00668676 Page 1 of 7 Requested By: j.portis, Printed: 5/24/2017 8:56 AM 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. That Lender would not make its loan above described without this subordination agreement. 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. (2) (3) Community Development Commission — Housing Authorityef?he City of National City fYGN&V LN Caa V CT /74- .T By: Ron Morrison, Chairman Teresa Trujillo Labra 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 Non -Order Search Doc: SD:2016 00668676 Page 2 of 7 Requested By: j.portis, Printed: 5/24/2017 8:56 AM 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 SAN DIEGO } SS: On November 2, 2016 before me, Angelita Palma a Notary Public, personally appeared Ron Morrison who proved to me on the basis of satisfactory evidence to be the person whose name, s1 is/art subscribed to the within instrument and acknowledg d to me that he/s11/tly executed the same in his/hhr/thetEr authorized capacity(ip) and that by his/l r/thejl! signature(,a')on the instrument the person(, or the entity upon behalf of which the personyf 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 Signature FOR NOTARY SEAL OR STAMP ANGELITA PALMA COMM. # 2046693 NOTARY PUBLIC • CALIFORNIA SAN DIEGO COUNTY emission Ewes 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 CALIFORNIA COUNTY OF } SS: On 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) is/arc 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 Non -Order Search Doc: SD:2016 00668676 Page 3 of 7 Requested By: j.portis, Printed: 5/24/2017 8:56 AM NOTARY SEAL Under the provisions of Government Code 27361.7, I certify under the penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of Notary: /721/ Ll TA- ��jGMT Commission no.: 02o'I 6 6 93 County where bond is filed: Date Commission Expires: • . fA71 3/.j b 6C7- 25, ozo i 7 Manufacturer/Vendor Identification number: to Si PLACE OF EXECUTION: DATE: L a N6 BEAcN /2-6 SIGNATURE: Non -Order Search Doc: SD:2016 00668676 Page 4 of 7 Requested By: j.portis, Printed: 5/24/2017 8:56 AM 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; Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, seeto 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 'I'HE 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. (b) Community Development Commission — Housing Anthorithe City of National City 5764.0Cv /A/atm/ /71,21 By: Ron Morrison, Chairman Beneficiary Teresa Trujillo Labra (All signatures must be.aeknowledgcd) IT IS RECOMMENDED THAT, PRIOR TO I'HE EXECUTION OF THIS SUBORDINATION AGREEMENT, I HE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. Page 2 of 3 Owner Non -Order Search Doc: SD:2016 00668676 Page 5 of 7 Requested By: j.portis, Printed: 5/24/2017 8:56 AM which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF _50% r1 1)t e 10 On D (c u 4 ( , Z 01 Co before me, chv r S r�lo.Gyi o,.NLYkool PvID a Notary Public, personally appeared esa tillrit1t'.i \o 1:.a\Yc who proved to me on the basis of satisfactory evidence to be the person(' whose name,(s'j is/arE subscribed to the within instrument and acknowledged to me that he/she/they executed the same in krs/her/thew authorized capacity(ieS) and that by ,iai/her/thelir signature(s'fon the instrument the person(s'f, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the Iaws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and o 1 Signature Non -Order Search Doc: SD:2016 00668676 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 SAN DIEGO SS: On November 2, 2016 before me, Angelita Palma,a Notary Public, personally appeared Ron Morrison who proved to me on the basis of satisfactory evidence to be the person�a'J whose naive j is/a'subscribed to the within instrument and aclmowledg to me that he/MI6/My executed the same in his/h r/th authorized capacity(iy) and that by his/lr/ he� signature( )on the instrument the person f, or the entity upon behalf of which the personcesf 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 . eal. Signature FOR NOTARY SEAL OR STAMP ANGEUTA PALMA ool►fi.# NOTARY POEM. CAUFORN A 2046893 SAN DEGO COMM Cantimitti WuOCTOBER 25, 2017 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to J } SS: FOR NOTARY SEAL OR STAMP o�^� CHRIS-. FLANAGAN i Notary Public - California z •311 San Diego County z z ' �r Commission # 2166226 r 3` _ N. _ M/r Comm. Ex�ires Sep 30_2020 t Page 3 of 3 Page 6 of 7 Requested By: j.portis, Printed: 5/24/2017 8:56 AM NOTARY SEAL Under the provisions of Government Code 27361.7, I certify under the penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name ofNotary: C/,fS FL-AA/A-6AA/ Commission no.: 02-/ 6 2zd County where bond is filed: .5/4"� Z'/E 6 Date Commission Expires: • ciL:=197. to 2D,10 Manufacturer/Vendor Identification number: /7/061 2 PLACE OF EXECUTION: L d n(4 8E/4 L'79 DATE: SIGNATURE: Non -Order Search Doc: SD:2016 00668676 Page 7 of 7 Requested By: j-portis, Printed: 5/24/2017 8:56 AM RESOLUTION NO. 2016 — 44 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 $104,000 TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME REHABILITATION LOAN ON A SINGLE-FAMILY RESIDENCE LOCATED AT 1928 "E" AVENUE IN NATIONAL CITY WHEREAS, Teresa Trujillo Labra ("Borrower") is the owner of a single-family residence located at 1928 "E" Avenue in National City; and WHEREAS, on March 13, 2014, the Community Development Commission of the City of National City made a loan for $18,026 from the HOME Investment Partnerships Program to assist in the rehabilitation of a single-family residence; and WHEREAS, the Borrowers desire to refinance the existing first mortgage to reduce the interest rate to 4% for a term of 30 years with a new mortgage with a principal amount not -to -exceed $106,000 from Wells Fargo Bank, N.A. ("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, of the Subordination Agreement will be on file in the office of the City Clerk. PASSED and ADOPTED this 15t day of Novembe a 16. Morrison, Chairman ATTEST: Leslie Deese, Secretary APPROVED AS TO FORM: -, George H. Eiser III Interim City Attorney Passed and adopted by the Community Development Commission — Housing Authority of the City of National City, California, on November 1, 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. 2016-44 of the Community Development Commission — Housing Authority of the City of National City, California, passed and adopted on November 1, 2016. Secretary, Housing Authority By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY COUNCIL AGENDA STATEMENT G a 0\ G- 5 EETING DATE: November 1, 2016 AGENDA ITEM NO. 20 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 $106,000 to be and remain a lien prior and superior to a home purchase assistance loan on a single-family residence located at 1928 E Avenue in National City. PREPARED BY: Angelita Palma` -Comm. Dev. Specialist II PHONE: 619-336-4219 DEPARTMENT: Hoeg & Economic Dev. EXPLANATION: APPRO On March 13, 2014, the Community Development Commission . o N..Ional ity ("CDC") made a loan for $18,026 from the HOME Investment Partnerships Program to assist in the rehabilitation of a single- family residence located at 1928 E Avenue in National City. The loan has an outstanding principal balance of $17,795. Teresa Trujillo Labra ("Borrower") is interested in refinancing the first mortgage loan on the property and has been approved for a new loan from Wells Fargo Bank, N.A. ("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 4°/0 for a 30 year term. There will not be cash proceeds to the Borrower through the refinance. Staff has satisfactorily reviewed the combined loan -to -value, preliminary title report, new loan terms, loan application, and underwriting summary. 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: ►TTACHMENTS: Attachment No. 1: Subordination Agreement 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 & ECONOMIC DEV ORDER NO.: 00148707-996-MCO-JH7 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 1st day of November 2016 by Teresa Trujillo Labra, owner of the land hereinafter described and hereinafter referred to as "Owners", and the Community Development Commission -Housing Authority of 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 March 13, 2014, to the Community Development Commission - Housing Authority 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: ALL OF LOTS 6 AND 7 IN BLOCK 1, OF POWELL'S SUBDIVISION OF THE WEST HALF OF LOT 13 IN QUARTER SECTION 153 OF RANCHO DE LA NACION, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1270, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE 29, 1910. EXCEPTING THEREFROM SAID LOTS 6 AND 7 THE WESTERLY 47.92 FEET. EXCEPTING THEREFROM ALSO FROM LOT 7 THE NORTHERLY 32 FEET. APN: 560-251-08-00 to secure a note in the sum of $18,026, dated March 13 2014, in favor of The Community Development Commission -Housing Authority of the City of National City, a public body, corporation and politic, which deed of trust was recorded March 17, 2014, Recording Number 2014-0103793 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 $106.000 dated 2016, in favor of Wells Fargo Bank. N.A., 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 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) (2) (3) 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. That Lender would not make its loan above described without this subordination agreement. 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 By: Ron Morrison, Chairman Teresa Trujillo Labra 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 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 } SS: On 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) 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 } SS: On 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) 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 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 $104,000 TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME REHABILITATION LOAN ON A SINGLE-FAMILY RESIDENCE LOCATED AT 1928 "E" AVENUE IN NATIONAL CITY WHEREAS, Teresa Trujillo Labra ("Borrower") is the owner of a single-family residence located at 1928 "E" Avenue in National City; and WHEREAS, on March 13, 2014, the Community Development Commission of the City of National City made a loan for $18,026 from the HOME Investment Partnerships Program to assist in the rehabilitation of a single-family residence; and WHEREAS, the Borrowers desire to refinance the existing first mortgage to reduce the interest rate to 4% for a term of 30 years with a new mortgage with a principal amount not -to -exceed $106,000 from Wells Fargo Bank, N.A. ("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, of the Subordination Agreement will be on file in the office of the City Clerk. PASSED and ADOPTED this 1st day of November, 2016. Ron Morrison, Chairman ATTEST: Leslie Deese, Secretary APPROVED AS TO FORM: George H. Eiser III Interim City Attorney 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 TERESA TRUJILLO LABRA Subordination Agreement 1928 "E" Avenue Angelita Palma (Housing & Economic Development) Forwarded Copy of Agreement to Teresa Trujillo Labra.