HomeMy WebLinkAbout~Master - Subordinate second mortgage lien for 5462 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. 03-219
RESOLUTION APPROVING REQUEST TO SUBORDINATE
SECOND MORTGAGE LIEN FOR
PROPERTY LOCATED AT 5462 FROST DRIVE
FOR THE CITY OF AMES,IOWA
WHEREAS, in November 1996, Bruce and Michelle Adams 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 5462 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$65,750 plus
the City's second mortgage of$9,120,the property has been appraised at$114,000; and,
WHEREAS,the property was sold under the program for$80,896; 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 5462 Frost Drive is hereby approved.
ADOPTED THIS 1 Oth day of June,2003.
Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Goodhue
Seconded by: Cross
Voting aye: Cross, Goodhue,Hoffman,Mahayni,Vegge,Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 10th day of June,2003.