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HomeMy WebLinkAboutSubordination Agreement (3) **This document was electronically submitted to San Luis Obispo County for recording** 2020037457 Tommy Gong San Luis Obispo-County Clerk-Recorder RECORDING REQUESTED BY: 07/22/2020 01 47 PM Recorded at the request of Placer Title Company PLACER TITLE COMPANY-PISMO Titles: 1 Pages:7 WHEN RECORDED MAIL TO: Fees:$39.00 Taxes: $0.00 Total: $39 00 City of Arroyo Grande 300 E. Branch Street Arroyo Grande, CA 93420 Attn: City Clerk Order No: P-404754 APN: 077-255-027 Subordination Agreement __ _ _ _ -. - (Please fill in-document title(s)on this line) ---- _- - -The undersigned declares exemption under the following: Exempt from fee per GC27388.1 due to being recorded in connection with concurrent transfer that is subject to the imposition of documentary transfer tax,or, Exempt from fee per GC27388.1 due to the maximum fees being paid on documents in this transaction,or, n Partially exempt from fee per GC27388.1. Only$75.00 to be charged as$150.00 in fees has been paid on documents recorded immediately prior hereto or, X Exempt from fee per GC27388.1 due to being recorded in connection with concurrent transfer that is a residential dwelling to an owner-occupier,or, n Exempt from the fee per GC27388.1(a)(1); Not related to real property,or, Exempt from fee under GC27388.1 for the following reasons: THIS PAGE ADDED TO PROVIDE SENATE BILL 2 EXEMPTION INFORMATION (Additional recording fee applies) RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF ARROYO GRANDE 300 E. BRANCH STREET ARROYO GRANDE, CA 93420 ATTN: CITY CLERK SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY SUBORDINATION AGREEMENT -NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT, made this 14th day of June, 2020 by Omar Jacobo and Nora Jacobo, owners of the land hereinafter described and hereinafter referred to as "Owner," and the City of Arroyo Grande, present owner and holder of the deed of trust first hereinafter described and hereinafter referred to as"Beneficiary"; WITNESSETH WHEREAS, Owner executed a Deed of Trust and Security Agreement, dated March 28, 2007, recorded as Instrument No. 2007021775 (the "Deed of Trust") to the City of Arroyo Grande as Trustee, covering: See Exhibit"A," attached hereto and incorporated by reference herein. (APN: a portion of 077-255-027) to secure performance under the Buyer's Occupancy and Resale Agreement with Option to Purchase, dated March 28, 2007, recorded as Instrument No. 2007021774, in favor of Beneficiary; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of$213,000 dated 07/14/2020 in favor of Guild Mortgage Company, hereinafter referred to as "Lender," payable with interest and upon the terms and conditions described therein, which deed of trust is also to be recorded concurrently herewith; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of said deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood, and agreed as follows: 1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned. _ 2) That Lender would not make its loan above described without this subordination agreement. 3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of lender above referred to and specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees, and acknowledges that a) It consents to the note and deed of trust in favor of Lender above referred to, and all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; c) It intentionally and unconditionally waives, relinquishes, and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and d) An endorsement has been placed upon the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF LAND. BENEFICIARY: OWNER: - - - elle — - --4 - -- - Bill Robeson, cting City Manager <---Omar> obo/------ If ArA ------IfA ,• a acobo (ALL SIGNATURES MUST BE ACKNOWLEDGED.) EXHIBIT A Lot 26 of Tract No. 2310-2, in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to the map recorded May 23, 2006, in Book 28, Page 45 of Maps, in the office of the County Recorder of said County. APN: 077-255-027 Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of San Luis Obispo �/ On 1u.(4 ZO 4 20 VO , b ore me, t`$ 4'( IAJ4,�4 .Ori, notary public, personally appeared gill KO Oe.6oln , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the _._ persoa(s),_or the entity_upon_behalf_of_which_the_pers_on(s)__acted,_executed the__—- _ _ _ _ _ instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my . • -nd offi ial .e _ � • KELLYWETMORE (Notary Signature) / (Seal) �' NotaryPublicpCCounty (l� z � - San Luis Obispo County g 45., Commission#2181303 My Comm.Expires Feb 21,2021 Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) CotLlty of San Luis Obispo On 1, 16) 2a before me �S-�siotary •public, personally aOpeared dflhj.3U cTet.CAba, who proved to me on the basis of satisfactory evidence to be the person's whose name(•$is/ace-subscribed to the within - - instrument and acknowledged to me that he/chc/they executed the same in his/Bair authorized capacitykiee) and that by his/fae##•heir signatures on the instrument the person{e) or the entity upon behalf of which the perso ) acted, executed the instrument. I certify under PENAL 1 OF PERJURY under the laws of the State of California that the foregoing paragr. • G - - :• correct. WITN ES 0 „' :j• I. (Notary 'ignature (Seal) sem..°'..� SANDRA A.SANSONI ��� Notary Public-California z San Luis Obispo County • Commission R 2304609 'L”..." My Comm.Expires Oct 8,2023 Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County_of San Luis Obispo ) On U -2,(72e9 , before me,�Sa A Q A SalAg (r tary public, personally JOU' ( 5YTA , who proved to me on the basis of satisfactory evidence to be the person{&) whose name$)-is/are subscribed to the within instrument and acknowledged to me that hcisheithey executed the same in-tans/her/their authorized capacity(+es) and that by Iris/her/t +r signature(e) on the instrument the persorg, or the entityupon behalf of whicltthe person( -acted, executed the instrument. I certify under P e LTY OF PERJURY under the laws of the State of California that the foregoing pa - e - •d correct. WITN o ,, offi •=I seal. (Notary Signature) (Seal) SANDRA A.SANSONI Notary Public-California - San Luis Obispo County Commission#2304609 `' °w" My Comm.Expires Oct 8,2023