HomeMy WebLinkAbout2017 CON (Subordination Agreement) Christopher and Maverick Manlongat - 726 Mariposa CircleNOTE TO FILE
02-07-18
IN THE MATTER OF: Resolution 2017-218, of the City of National
City authorizing the Mayor to execute a Subordination Agreement
allowing a new mortgage to be and remain a Lien at 726 Mariposa
Circle. Please note the following:
A FULLY EXECUTED ORIGINAL RECORDED SUBORDINATION AGREEMENT
WAS NEVER FILED WITH THE OFFICE OF THE CITY CLERK.
NOTE: RESCINDED BY RESOLUTION NO. 2018-7 ADOPTED ON 02-06-18.
ORIGINATING DEPARTMENT:
CDC X Housing & Grants
City Attorney Human Resources
City Manager MIS
Community Svcs. Planning
Engineering Police
Finance Public Works
Fire
*Per A-200 on 02-06-18, the Lender made an error in the original not -to -exceed first lien amount by not
including the customary closing costs.
NTF
RESOLUTION NO. 2017 — 218
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 $265,100
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME PURCHASE
ASSISTANCE LOAN ON A SINGLE -UNIT PROPERTY LOCATED
AT 726 MARIPOSA CIRCLE IN NATIONAL CITY
WHEREAS, Cristopher G. Manlongat and Maverick V. Manlongat ("Borrowers")
are the owners of a condominium located at 726 Mariposa Circle in National City; and
WHEREAS, in 2017 the City of National City made a loan for $67,400 from the
HOME Investment Partnerships Program to assist in the purchase of the condominium; and
WHEREAS, the Borrowers desire to refinance the existing first mortgage to
reduce the interest rate to 4.125% with a new mortgage with a principal amount not -to -exceed
$265,100 from Impac Mortgage Corp dba Cashcall Mortgage ("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
Recorder's Office, a copy of the Subordination Agreement will be on file in the office of the City
Clerk.
PASSED and ADOPTED this 21st day of November, 2017.
n M iris' n,
ATTEST:
Michael R. Dalla, 'City Clerk
APPROVED TO FORM:
rris-Jones
—City-R rney
Passed and adopted by the Council of the City of National City, California, on
November 21, 2017 by the following vote, to -wit:
Ayes: Councilmembers Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: Cano.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City
erkofthe tycy�
National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2017-218 of the City of National City, California, passed and
adopted by the Council of said City on November 21, 2017.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: November 21, 2017
AGENDA ITEM NO. 8
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 $265,100 to be and remain a
lien prior and superior to a home purchase assistance loan on a single -unit property located at 726
Mariposa Circle in National City.
PREPARED BY: Angelita Palma, Comm. Dev. Spec. II DEPARTMENT:EN-Hf ng &Econ Dev.
PHONE: (619) 336-4219 APPROU�ED BY:
EXPLANATION:
On April 6, 2017, the City of National City ("City") made a loan for $67,400 from the HOME
Investment Partnerships Program to assist in the purchase of a condominium located at 726 Mariposa
Circle in National City. The City loan is deferred for thirty years charging 3% simple interest with an
outstanding principal balance of $67,400. Cristopher G. Manlongat and Maverick V. Manlongat
("Borrowers") are interested in refinancing the first mortgage loan on the property and have been
approved for a new loan from Impac Mortgage Corp dba Cashcall Mortgage. ("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 4.125% and there will be no cash proceeds to the Borrowers through the refinance. Staff has
satisfactorily reviewed the combined loan -to -value, preliminary title report, new loan terms, and good
3ith estimate that outline the closing costs of the transaction.
FINANCIAL STATEMENT:
ACCOUNT NO.
N/A
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
APPROVED:
APPROVED:
Finance
MIS
STAFF RECOMMENDATION:
Adopt the Resolution.
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
1. Subordination Agreement
/Ce er ND 261�-2,2
Attachment No. 1
RECORDING REQUESTED BY
MORTGAGE CORPORATION, DBA
CASHCALL MORTGAGE
AND WHEN RECORDED MAIL TO:
CITY OF NATIONAL CITY
1243 NATIONAL CITY BLVD
NATIONAL CITY, CA 91950
ATTN: HOUSING & ECONOMIC DEV.
ORDER NO.: 6100224159
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 21st day of November, 2017 by Cristopher G. Manlongat and Maverick V. Manlongat,
husband and wife as joint tenants 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 have executed a deed of trust, dated April 6, 2017, to Lawyers Title Company as trustee, covering:
PROPERTY ADDRESS: 726 MARIPOSA CIRCLE, NATIONAL CITY, CALIFORNIA 91950
SEE ATTACHED EXHIBIT A FOR FULL DESCRIPTION
ASSESSOR'S PARCEL NUMBER: 557-050-34-26
to secure a note in the sum of $67,400.00, dated April 6, 2017, in favor of The City of National City, a public body, corporation
and politic, which deed of trust was recorded April 13, 2017, Official Records of said county; and
WHEREAS, Owners has executed, or is about to execute, a deed of trust and note in the sum of $265,100.00 dated
, in favor of Mortgage Corporation, dba Cashcall Mortgage, 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
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.
Attachment No. 1
(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, a municipal corporation
Cristopher G. Manlongat
By: Ron Morrison, Mayor Maverick V. Manlongat
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.
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 SAN DIEGO
} SS:
On before me,
Anielita Palma, a Notary Public, personally appeared Ron
Morrison 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
Attachment No. 1
EXHIBIT "A"
Legal Description of the Property
Property Address: 726 Mariposa Circle, National City, California 91950
THE LAND REFERRED TO HEREIN IS SITUATTID IN THE COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
A CONDOMINIUM COMPRISED OF:
PARCEL 1:
AN UNDIVIDED FRACTIONAL INTEREST AS TENANT IN COMMON IN AND TO THE BUILDING
ENVELOPE IN WHICH THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED
EQUAL TO THE RECIPROCAL OF THE NUMBER OF RESIDENTIAL UNITS WITHIN THAT BUILDING
ERNE DPE BE NG A PORTION OF LOT 1 OF MARIPOSA WALK IN THE CITY OF NATIONAL Cry, E-
2003-0B, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA.
ACCORDING TO MAP THEREOF NO. 14890, FILE) IN THE OFFICE OF THE COUNTY RECORDER OF
SAN DIEGO COUNTY, CALIFORNIA, ON OCTOBER 7, 2004.
EXCEPTING THEREFROM EACH RESIDENTIAL UNIT LOCATED WITHIN SUCH BUDDING ENVELOPE,
AS SHOWN ON THE CONDOMINIUM PLANS DESCRIBE) IN PARCH. 2 BELOW;
PARCEL 2:
RESIDENTIAL UNIT NO. 26, AS SHOWN UPON THE MARIPOSA WALK CONDOMINIUM PLANS
RECORDED JANUARY 31, 2005, AS DOCUMENT NO. 2005-0079088, IN THE OFFICE OF THE
COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA (THE "CONDOMINIUM PLANS').
PARCEL 3:
NON-EXCLUSIVE APPURTENANT EASEMENTS IN AND TO THE ASSOCIATION PROPERTY NOW OR
HEREAFTER OWNED BY. MARIPOSA WALK CORPORATION, A CALIFORNIA NONPROFIT MUTUAL
BENEFIT CORPORATION (THE "ASSOCIATION"), AS DEFINED AND SET FORTH IN THE
DECLARATION (DESCRIBED BELOW). USE OF PRIVATE STREETS AND DRIVES IS SUBJECT TO THE
TERMS AND CONDmONS OF THE ACCESS DECLARATION DESCRIDEJ BELOW.
PARCEL 4:
A NON-EXCLUSIVE APPURTENANT EASEMENT FOR INGRESS AND EGRESS OVER THE "DRIVES"
WITHIN LOT 1 OF MARIPOSA WALK IN THE CITY OF NATIONAL CITY, S-2003-08, IN THE CITY OF
NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF
NO.14890, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY,
CALIFORNIA, ON OCTOBER 7, 2004, PURSUANT AND SUBJECT -TO THE TERMS AND PROVISIONS
OF THE ACCESS DECLARATION DESCRIBED BELOW.
PARaLL 5:
THE EXCLUSIVE RIGHT TO USE ANY EXCLUSIVE USE AREA SHOWN ON THE CONDOMINIUM PLANS
AS BEING APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBE) IN PARCEL 2 ABOVE.
ASSESSOR'S PARCEL NUMBER: 557-050-34-26
EXHIBIT "A"
RESOLUTION NO. 2017 —
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 $265,100
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME PURCHASE
ASSISTANCE LOAN ON A SINGLE -UNIT PROPERTY LOCATED
AT 726 MARIPOSA CIRCLE IN NATIONAL CITY
WHEREAS, Cristopher G. Manlongat and Maverick V. Manlongat ("Borrowers")
are the owners of a condominium located at 726 Mariposa Circle in National City; and
WHEREAS, in 2017 the City of National City made a loan for $67,400 from the
HOME Investment Partnerships Program to assist in the purchase of the condominium; and
WHEREAS, the Borrowers desire to refinance the existing first mortgage to
reduce the interest rate to 4.125% with a new mortgage with a principal amount not -to -exceed
$265,100 from Impac Mortgage Corp dba Cashcall Mortgage ("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
Recorder's Office, a copy of the Subordination Agreement will be on file in the office of the City
Clerk.
PASSED and ADOPTED this 21st day of November, 2017.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Angil P. Morris -Jones
City Attorney