HomeMy WebLinkAbout~Master - Subordination of mortgage lien for 4209 Ontario Street DO NOT WRITE IN THE SPACE ABOVE THIS LINE,RESERVED FOR RECORDER
Prepared Irv:Diane R.Voss,Ames Citv Clerk,515 Clark,Ames,IA 50010 Phone:515/239-5105
RESOLUTION NO. 02-031
RESOLUTION APPROVING REQUEST TO SUBORDINATE
SECOND MORTGAGE LIEN FOR
PROPERTY LOCATED AT 4209 ONTARIO STREET
FOR THE CITY OF AMES,IOWA
WHEREAS, in August 2000, Souad Mejdouli was a participant 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,she is requesting the City,on behalf of the ASCP,to subordinate the second mortgage lien on
her single-family home at 4209 Ontario Street; and,
WHEREAS, in order for the second 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 is in the form of a 12-year,2%low-interest loan; and,
WHEREAS, if the property is sold, transferred, abandoned, or rented within the 12-year loan term, the
borrower shall pay a recapture interest fee of 5%of the amount loaned for the period from the date of this loan until
the date of such sale of the property; and,
WHEREAS,the bank financing the property has approved a mortgage loan in the amount of$83,700 plus
the second mortgage of $11,014 making the total indebtedness $94,714, the property has been appraised at
$105,000, and the City Assessor's tax assessment value of the property is$96,520; and,
WHEREAS,the property was sold under the program for$98,500; and,
WHEREAS,City Staff recommends that the City,on behalf of the 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 second mortgage lien for property located at 4209 Ontario Street is hereby approved.
ADOPTED THIS 22nd day of January, 2002.
Diane R. Voss, City Clerk Ted Tedesco,Mayor
Introduced by: Quirmbach
Seconded by: Hoffman
Voting aye: Cross,Goodhue,Hoffman, Quirmbach, Vegge, Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 22nd day of January, 2002.