HomeMy WebLinkAbout~Master - Subordination of mortgage lien for 5414 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. 02-554
RESOLUTION APPROVING REQUEST TO SUBORDINATE
SECOND MORTGAGE LIEN FOR
PROPERTY LOCATED AT 5414 FROST DRIVE
FOR THE CITY OF AMES,IOWA
WHEREAS,in December 1996,Virginia Brown was a 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,they are requesting the City to subordinate its Phase III Affordable Housing second mortgage
lien on her single-family home at 5414 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 refinancing the property has approved a mortgage loan in the amount of$70,500(plus
the City's second mortgage of$8,560 making the total indebtedness against the property$79,060),the property has
been appraised at$107,000, and the City Assessor's tax assessment value of the property is $95,400; and,
WHEREAS,the property was sold under the program for$77,100; 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 5414 Frost Drive is hereby approved.
ADOPTED THIS 22nd day of October,2002.
`UM&
Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Cross
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 October, 2002.