HomeMy WebLinkAbout~Master - Subordination of mortgage lien for 5448 Frost Drive DO NOT WRITE IN THE SPACE ABOVE THIS LINE,RESERVED FOR RECORDER
Prepared bv:Diane R.Voss,Ames Citv Clerk,515 Clark,Ames,IA 50010 Phone:515/239-5105
RESOLUTION NO. 02-393
RESOLUTION APPROVING REQUEST TO SUBORDINATE
SECOND MORTGAGE LIEN FOR
PROPERTY LOCATED AT 5448 FROST DRIVE
FOR THE CITY OF AMES,IOWA
WHEREAS, in June 1996, Paul and Lonna Green were participants 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, they are requesting the City to subordinate its Phase III Affordable Housing second
mortgage lien on their single-family home at t5448 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 re-financing the property has approved a mortgage loan in the amount of$95,550,
the property has been appraised at $124,000, and the City Assessor's tax assessment value of the property is
$119,000; and,
WHEREAS, the property was sold under the program for$77,500; 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 5448 Frost Drive is hereby approved.
ADOPTED THIS 23'day of July, 2002.
Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Cross
Seconded by: Hoffinan
Voting aye: Cross, Goodhue, Hoffman, Quirmbach, Vegge, Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 23'day of July, 2002.