HomeMy WebLinkAbout~Master - Subordination of Second Mortgage Lien for 5468 Frost Drive DO NOT WRITE IN THE SPACE ABOVE THIS LINE,RESERVED FOR RECORDER
Prepared By:Diane R.Voss,Ames City Clerk,515 Clark,Ames,IA 50010 Phone:515/239-5105
RESOLUTION NO. 01-383
RESOLUTION APPROVING REQUEST TO SUBORDINATE
SECOND MORTGAGE LIEN FOR
PROPERTY LOCATED AT 5468 FROST DRIVE
FOR THE CITY OF AMES,IOWA
WHEREAS,in March 1995,Douglas Taylor was participant in the City's Phase III Affordable Housing Program
to help low and moderate first-time home buyers purchase newly-constructed single-family homes in the Bentwood
Subdivision; and,
WHEREAS,he is requesting the City to subordinate its Phase III Affordable Housing second mortgage lien on
his single-family home at 5468 Frost Drive; and,
WHEREAS,in order for the City's mortgage to be secure,the value of the property must be equal to or greater
than all outstanding debts so that all debts can be repaid in the event of a sale or default on a mortgage; and,
WHEREAS,the City's second mortgage lien would require the home buyers to repay the City the greater of 8%
of the selling price or assessed value if the property is sold,transferred,abandoned,or rented within the first seven years;
and,
WHEREAS, the bank financing the property has approved a mortgage loan in the amount of$69,150, the
property has been appraised at$115,000,and the City Assessor's tax assessment value of the property is$104,600;and,
WHEREAS,the property was sold under the program for$72,000; and,
WHEREAS,City Staff recommends that the City subordinate its lien positions.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames, Iowa,that the request to
subordinate the City's second mortgage lien for property located at 5468 Frost Drive is hereby approved.
ADOPTED THIS 28th day of August, 2001.
Diane R.Voss,City Clerk Ted Tedesco,Mayor
Introduced by: Hoffman
Seconded by: Quirmbach
Voting aye: Cross,Hoffinan, Quirmbach,Wirth
Voting nay: None Absent: Campbell, Goodhue
Resolution declared adopted and signed by the Mayor this 28th day of August,2001.