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HomeMy WebLinkAbout5-D-1 Housing Subordination AgreementQ�SQU7' Department of Community Investment Wednesday, June 12, 2019 TO: South Bend Redevelopment Commission FROM: Kandee Block-Tinkel, South Bend Home Improvement Program Staff SUBJECT: Root Subordination Submitted June 13, 2019 South Bend Redevelopment Commission m Shannon Root was approved for a South Bend Home Improvement Program (SBHIP) loan at a regular meeting by the South Bend Redevelopment Commission. Ms. Root received repairs on her home through the SBHIP; repair costs were funded by CDBG funds appropriated to the program by the City of South Bend; Ms. received a $7,500 grant and the remaining $3,400 in a due upon sale loan with 0% interest. Ms. Root is not required to make monthly payments on the City of South Bend loan. The SBHIP loan was is a second position mortgage, as Ms. Root has a first mortgage in the amount of $45,90.0.00. Ms. Root also had a Real Estate Retention Agreement (NIP Grant) in third place that has was released in Record Number 2019-11110 on May 20, 2019. Ms. Root is in the process of obtaining a HELOC (Home Equity Line Of Credit) loan at 1St Source Bank in the amount of $5,000; she is asking SBHIP to subordinate their 0% interest loan to third position. As this is a line of credit there are no closing documents. 1St Source Bank's consumer loan application, Home Equity Line of Credit Terms, Property Owner's Fraud Affidavit and a current property appraisal for the new loan have been reviewed by SBHIP staff. With respect, SBHIP staff asks that the Subordination be allowed and the agreement signed. Thank you. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574-235-9371 1 FAX: 574-235-9021 1 SOUTHBENDIN.GOV SUBORDINATION AGREEMENT For value received, receipt of which is hereby acknowledged, the lien of a certain mortgage from City pf South Bend for the use and benefit of its' Department of Redevelopment to Shannon L. Root in the original principal amount of $3,400.00 dated June 28, 2005 and recorded on Jules 2005 as document number 0533189 in the Office of the Recorder of St. Joseph County, Indiana, is hereby made subordinate, junior and inferior to the lien of home equity line of credit from Shannon L. Root to 1 St Source Bank dated in the amount of $5,000 and recorded in the Office of the Recorder of St. Joseph County on as document number Property Address is 1026 N Adams Street, South Bend, Indiana 46628 Dated: June U.2019 STATE OF INDIANA ) ) SS: ST. JOSEPH COUNTY ) City of South Bend Redevelopment Commission Before me a Notary Public, personally appeared and acknowledge execution of the foregoing agreement this day of 112-0-1-9. My Commission Expires: , Notary Public Residing in St. Joseph County, Indiana