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Residential Rehab - Subordination-1507 Revere Cir

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					                                          MEMORANDUM


Date:          December 6, 2010
To:            Village Manager
From:          Director of Community Development
Subject:       Residential Rehabilitation Loan Program - Subordination Request – 1507 Revere Circle
For:           Village President & Board of Trustees

Introduction
The homeowner at 1507 Revere Circle has requested that the Village of Schaumburg subordinate its 2nd
position on the rehabilitated home to CitiMortgage, Inc., which will refinance a new first mortgage. The
homeowner participated in the rehab program in 2003 for a total amount of $4,790, which would become due
in 30 years, when the property was no longer the primary residence of the homeowner, or upon change of
title, whichever occurs first.

Discussion
It has been past practice for the Village to subordinate requests through the Residential Rehabilitation
Program, provided that the homeowner is not incorporating other debt into the refinance. The homeowner is
requesting the refinance for a loan amount of $91,000. No additional funds will be advanced to the
homeowner. With the home appraised at $175,000, the homeowner will still have 45.3% clear equity in the
home. The Village of Schaumburg will retain 2nd position on the property. The Legal Division has reviewed
this document, and Staff has drafted a resolution to this effect.

Recommendation
The Village Manager recommends that the Village Board approve the resolution subordinating the Village’s
liens on the home located at 1507 Revere Circle in Schaumburg.

Attachments: Subordination Request
             Subordination Agreement
             Resolution

				
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