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HomeMy WebLinkAbout~Master - Subordination of Lien for 231 Main Street, McCallsburg, Iowa 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. 01-522 RESOLUTION APPROVING REQUEST TO SUBORDINATE SECOND MORTGAGE LIEN FOR PROPERTY LOCATED AT 231 MAIN STREET IN McCALLSBURG,IOWA, FOR THE CITY OF AMES,IOWA WHEREAS, in August 2000, Timothy and Joanna Sarver were participants in the Ames/Story County Partnership (ASCP) Affordable Housing Program to help low and moderate first-time home buyers purchase single-family homes in eight participating cities in Story County; and, WHEREAS,they are requesting the that City, on behalf of the ASCP, subordinate the second mortgage lien on their single-family home at 231 Main Street in McCallsburg, Iowa; 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 second mortgage lien would require the borrowers to pay a recapture interest of 5% of the amount loaned for the period from the date of the loan until the date of such sale of the property 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 plus the second mortgage in the amount of$58,759,the property has been appraised at$71,000,and the City Assessor's tax assessment value of the property is $59,955; and, WHEREAS,the property was purchased under the program for$62,500; and, WHEREAS,City Staff recommends that the City, on behalf of ASCP, subordinate the second mortgage lien position. 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 231 Main Street in McCallsburg,Iowa, is hereby approved. ADOPTED THIS 27th day of November,2001. C::��,�,"K`�LX.I& ' Diane R.Voss,City Clerk Ted Tedesco,Mayor Introduced by: Hoffman Seconded by: Wirth Voting aye: Campbell, Cross, Goodhue,Hoffman, Quirmbach,Wirth Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 27th day of November, 2001.