Affordable Housing Programs, Loan Subordination and Payoff Instructions
For the Boulder County Down Payment Assistance Program,
Community Housing Program
and City of Longmont Housing Rehabilitation Programs
Loan Subordination Instructions
Loan Payoff Instructions
Loans may be subordinated for the following reasons only:
- Refinance with no cash out
- Refinance of the home, with cash out ONLY because of a medical emergency
- For Community Housing Program properties without a down payment assistance loan and/or rehabilitation loan, cash out may be considered ONLY for improvements to be made to the affordable property; the refinance can be for no more than the current resale value as determined by the City of Longmont.
1. Call the City of Longmont CDBG Office at 303-651-8444 to request a loan subordination. Refinances must be straight loans (no cash out) or for bona-fide, documentable medical emergencies (if cash out) or for improvements (if cash out) to be made to a Community Housing Program property without a down payment assistance and/or rehabilitation loan for subordination approval.
For Community Housing Program properties, a refinanced loan may be for no more than the current estimated value of the home as determined by the City of Longmont. Your client must contact program staff at the number above to request a current valuation calculation.
2. All households must then meet with a housing counselor with the Boulder County Housing Counseling Program before subordination will be considered. Your client must call the Boulder County Housing Counseling Program at 720-564-2279 to schedule an appointment to have the proposed loan documents reviewed. The City does not accept any subprime, interest-only or adjustable-rate mortgages.
3. If the refinance is approved by both the Housing Counseling Program and City staff, a statement signed by the client and the financing institution that no cash will be given to the client from the refinance must be submitted to the city.
4. Prepare a subordination agreement in a form acceptable to the City (the mortgage or title company must supply), have the borrower sign the agreement, have it notarized, and then submit the original for the City’s review to Sally Raney, 350 Kimbark Street, Longmont, CO 80501. Note: An original subordination agreement must be submitted with borrower’s signature(s) before the City will review the agreement, and it must be fully completed and legible.
5. Please allow at least two weeks for the City’s review and signature. The Mayor must sign this form, and documents are signed by Mayor only one day a week.
6. After the Mayor has signed the agreement, City staff will call you to let you know that the original subordination agreement is ready to be picked up from the CDBG/Affordable Housing Programs Office. If you prefer to have the original agreement sent priority mail, please provide an account number to be charged.
The City of Longmont reserves the right in its sole discretion to deny a subordination request for any reason.
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If the borrower does not make monthly payments:
Call the Housing Specialist at the City of Longmont CDBG Office (303-651-8444) to request a payoff. Please provide the borrower’s name, address, payoff date, and your name, company and fax number. A letter with the payoff amount and the per diem charges will be faxed to you.
If the borrower makes monthly payments to the Housing Authority of the City of Loveland:
Fax a payoff request to Antonia Rojas at HACOL 970-278-9904. In this fax, include the name and address of the borrower, the payoff date, an authorization to release information form, and your contact information (name, company, fax and phone number).
Homeowners who purchased through the Community Housing Program and have not been released from the program - and received a down payment assistance loan and/or rehabilitation loan and are refinancing to payoff the down payment assistance and/or rehabilitation loan must have their proposed loan reviewed by a housing counselor before subordination of the $10.00 Deed of Trust will be considered. The City does not accept subprime, interest-only or adjustable-rate mortgages. Your client must set up an appointment with the Boulder County Housing Counseling Program at 720-564-2279
In the payoff letter, you will be advised as to where to send the check.
Once receipt of the payoff has been recorded through our program, the Deed of Trust will be released. Please allow at least one month for the Deed to be released, recorded and the Released Deed sent to you. Be sure to give the City the address to where the Released Deed should be mailed.
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