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HomeMy WebLinkAboutKern, Debra; 2006-07-21;I I I DQC 1997-0631452 DECI SAN DIEGO COUNTY HOUSING AUTHORI Y NAME ~ _ , AooREss.5989 Ru r f 1 n Road ciTv& San Diego, Ca. 92123-1890 STATE 12, 1997 4:19 . OFFICIAL RECORDS AN DIEGO COUNTY RECORDER'S OFFICE R£GORY J. SMITH, COUNTY RECORDER FEES: 0.00 WAY: 2 PM Title Order No:28 7o2 7l7 Escrow No. ____ _ ___________ .... __l 1111111111111111 llllll ll~Wll~I 111111111111111 IIII IIII SPACE ABOVE THIS DEED OF TRUST WITH ASSIGNMENT OF RENTS This DEED OF TRUST, made RICHARD A. KERN and DEBRA K. KERN, HUSBAND AND WIFE, AS COMMUNITY PROPERTY , between whose address is 446 Chinquapin Avenue Carlsbad (Number and Street) (City) (State) (Zip Code) CHICAGO TITLE COMPANY, a California Corporation, herein called TRUSTEE, and Housing Auth0rity of the County of San Diego ,herein called BENEFICIARY, Trustor irrevocably grants, transfers and assigns to Trustee in Trust, with .Power of Sale that property in County San D1 ego CalifQrui.s., .described as: PARCEL 4 OF PARCEL MAP 445 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGd, StAtt U~ CALIFORNIA, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, FEBRUARY 2, 1971. Together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits. For the Purpose of Securing (1) payment of the sum of$ 20,000.00 with interest thereon according to the terms of a promissory note or notes of even date herewith made by Trustor, payable to order of Beneficiary, and extensions or renewals thereof; (2) the performance of each agreement of Trustor incorporated by reference or contained herein or reciting it is so secured; (3) Payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or his successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. To protect the security of this Deed o!Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A of that certain Fictitious Deed of Trust referenced herein, and it is mutually agreed that all of the provisions set forth in subdivision B of that certain Fictitious Deed of Trust recorded in the book and page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely: COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE Alameda 1288 556 Kings 858 713 Placer 1028 379 Sierra 38 187 Alpine 3 130-31 Lake 437 110 Plumas 166 1307 Siskiyou 506 762 Amador 133 438 Lassen 192 367 Riverside 3778 347 Solano 1287 621 Butte 1330 513 Los Angeles T-3878 874 Sacramento 71-10-26 615 Sonoma 2067 427 Calveras 185 338 Madera 911 136 San Benito 300 405 Stanislaus 1970 56 Colusa 323 391 Marin 1849 122 San Bernardino 6213 768 Sutter 655 585 Contra Costa 4684 1 Mariposa 90 453 San Francisco A-804 596 Tehama 457 183 Del Norte 101 549 Mendocino 667 99 San Joaquin 2855 283 Trinity 108 595 El Dorado 704 635 Merced 1660 753 San Luis Obispo 1311 137 Tulare 2530 108 Fresno 5052 623 Modoc 191 93 San Mateo 4778 175 Tuolumne 177 160 Glenn 469 76 Mono 69 302 Santa Barbara 2065 881 Ventura 2607 237 Humboldt 801 83 Monterey 357 239 Santa Clara 6626 664 Yolo 769 16 Imperial 1189 701 Napa 704 742 Santa Cruz 1638 607 Yuba 398 693 Inyo 165 672 Nevada 363 94 Shasta 800 633 Kern 3756 690 Orange 7182 18 San Diego Series 5 Book 1964, Page 149774 T 365 Legal (2-94) O/T W1lh Assignment of Rents Page 1 183 Said agreements, terms and provisions contained in said subdivisions A and B, (Identical in all counties} are preprinted on the following pages hereof and are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge thereof does not exceed the maximun allowed by laws. ---The foregoing assignment of rents is absolute unless initialed here, in which case, the assignment serves as additional security. The undersigned Truster, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him at his address hereinbefore set forth. STATE OF CALIFORNIA j,__ ~:" • COUNTY ~F ~ _l,:,l k ~~ ) S.S. On ~ ~::Xe .A~-t.A_ ~) \ ~ before me, ~ ll. ~ _, ~.J0v''-..fo- a No ry f:'ublic in and for aid County and State, personally appeared i..~ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s} whose name(s)-~subscribed to the within instrument and acknowledged to me that helsM@ executed the same in hislfler}Qjfili)author[zed capacity(ies}, and that by his/fler~ signature(s} on the instrument the person(s), or the entity upon behalf of which the person(s} acted, executed the instrument. WITNESS my hand and official seal Signature -~~ : ~ D1, Iv~ T 365 Legal (2-94) Off With Assignment of Rents RICHARD A. KERN DEBRA K. KERN (This area for official notarial seal} OCT O 1. 1997 1 1 l""rn:~-r= l ~11 DO NOT RECORD The following is a copy of Subdivisions A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein. A. To protect the security of this Deed of Trust, Trustor agrees: (1) To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor per- formed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not ex- cluding the general. (2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may deter- mine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. (4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may, make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such pur- poses; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge, or lien which in the judgement of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby, any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: (1) That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assign- ed and shall be paid to Beneficiary who may apply or release such moneys received by him or her in the same manner and with the same effect as above provided for regarding disposition of proceeds of fire or other insurance. (2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his or her right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any exten- sion agreement or any agreement subordinating the lien or charge hereof. (4) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." (5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his or her own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebetedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (6) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediatly due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law. Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in ~uch deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. (7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. (8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, suc- cessors, and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured here~,-wht~bar.,91'--1\ot named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the fi~r,~~ tif~tff,l0aa,rn\1 tM1singular number includes the plural. n.lLW:~JJ_LtkL • _!~\\ l W l\ I o CT O 1 1997 ;/ 1 ~ T 365 Legal (2-94) :aWdl1$lGtiAl.dl• ... •o, O/T W1lh Assignment of Rents Page 3 (9) The Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. DO NOT RECORD REQUEST FOR FULL RECONVEYANCE TO CHICAGO TITLE COMPANY The undersigned is the legal owner and holder of the note or notes, and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, and all other evidence of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated ____________ _ Please mail Deed of Trust, Note and Reconveyance to __________________________________________ _ Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made I-....... = (/) Cd ::::> Q.. a: s I-0 u LL Q) -0 -..... ~ C 0 bl) w Cd u w ..... C -= u T 365 Legal (2-94) OfT With Assignment of Rents Page 4 lllll lllll \111111 A.lJCi 11 .. ;~oou UI ril. li\l I :u.ui:u RECORDING REQUESTED BY -- AND WHEN RECORDED MAIL TO: ',;'.!·i I ,,1 i ,: I l I II Ii l i., f :1 I 1_11 ii I h''., 1.il'f ;I L ldi[l,ili: .I ,Hllll l .. ,11 11·1I, -1[t:1·1HL1FF: City of Carlsbad I t t', 1 'J 1:1CI Housing & Redevelopment Department 2965 Roosevelt Street, Suite B Carlsbad CA 92008-2389 t-'.-'\l ~ L 1'.:, ~=-I 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 •~ \ day of ::::I=.)\ 7 , 2006, by Debra Kern, owner of the land hereinafter described and hereinafter referred to as "Owner, " and The City of Carlsbad, a municipal corporation present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary"; WITNESS ETH 11111 1111 THAT WHEREAS, Owner did execute a deed of trust, dated December 12, 1997, to Chicago Title Company, as trustee, covering: Complete legal description as more particularly described in Exhibit" A " attached hereto and made a part hereof. to secure a note in the sum of $20,000, dated December 12, 1997, in favor of Beneficiary , which deed of trust was recorded December 12. 1997, as Instrument No. 1997-0631452 of Official Records of San Diego County; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $50,198.71 dated July 20, 2006 in favor of Household Financial, hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; 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 the deed of trust in favor of Lender; and June 4, 2002 SUBORDINATION AGREEMENT CONTINUED ON NEXT PAGE 1 CON rlNUATION OF SUBORDINATION AGREEMENT 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 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 shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore 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 subord.ination of the lien or charge thereof to another deed or deed of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) 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) He 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 note secured by 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. SUBORDINATION AGREEMENT CONTINUED ON NEXT PAGE June 4, 2002 2 CONTINUATION OF SUBORDINATION AGREEMENT City of~~ ~, / _ r),, ~ By: i '---'--'j-f"" ~ ~ 1.../'-...__. Lisa Hildabrand • Assistant City Manager ~;:t3eb¼J ~ Name: Debra Kern Owner(s) By:----------- Name: ---------- (ALL SIGNATURES MUST BE ACKNOWLEDGED) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. APPROVED AS TO FORM: RONALD R. BALL, City Attorney J e Mobaldi ssistant City Attorney June 4, 2002 3 , . CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT personally appeared -----"'""'---J'---"-''-"---+-LL¥-->"=1.J........,U-,:'--'---"'~~---------------• Name(sJ of Signer(s) ~ersonally known to me ~ L CRESCENTI CommllllOn ti 1661400 ~ Notary N:lllc • Calfomk> J SanOllgoCCM'IIV lt,Conm--Mc:ri2', □ proved to me on the basis of satisfactory evidence to be the person~· whose name~ is/a1'9- subscribed to the within instrument and acknowledged to me that Re/she/they.executed the same in ms/her/their authorized capacity(k®, and that by his/her/thefr signature~on the instrument the perso~ or the entity upon behalf of which the person_ts( acted, executed the instrument. OPTTONAL------------ Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: s )I:)QnQ'u·-cc~ 10a l\cbte.e'c(-0 al"' Document Date : :r O \ f o,\ '°"ai00 lo Number of Pages: ----'3=------Signer(s) Other Than Named Above: ______________________ _ Capacity(ies) Claimed by Signer Signer's Name: \ :, 8), fu \cOobru.Dn □ Individual □ Corporate Officer -Title(s): __________________ _ □ Partner -□ Limited □ General □ Attorney-in-Fact □ Trustee □ Guardian or Co~servator ~ l .. ~ • .-Q(Qther: D ss I .s:\o.. err::. ~ j \,,, I 8 / Signer Is Representing: ___ ..----__________________ _ © 1999 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationalnolary.org Prod. No. 5907 Reorder: Call Toll-Free 1 ·800-876·6827 I • . ' CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Sci () o ·l ~0 On ::S-u \ y ~)1 •~OC)(a before me, _,_..,,....._,___,_,_,_.,,___,,~...,,...,.,..__,.,,~'=l----':-:-'7'-~,--'---'-t-1-.,,,_...,\;c_ personally appeared Deb \'CL K.Q.,r n Name(s) of Signer(s) □ personally known to me ~oved 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 <flelshel#lay executed the same in ms/her/their authorized capacityti:M}-, and that by hls/her/ttrnir signatur~) on the instrument the person~, or the entity upon behalf of which the perso¥) acted, executed the instrument. ------------OPTIONAL ------------ Though the information below is not required by Jaw, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Sut:orQ (' oo.b'u (\ Document Date: 7 -d-\ -~00 ~ ~v::e e . V\o.Q__,o I Number of Pages: _ _-3.:>~~-- Signer(s) Other Than Named Above: _____________________ _ Capacity(ies) Claimed by Signer Signer's Name.--=---=----------------------- □ Individual ----------- □ Corporate Officer -Title(s): __ ---------------="'=------------ □ Partner -□ Limited □ General ~ □ Attorney-in-Fact -----~ □ Trustee □ Guardian or Conservator □ Other:------------------------"-....... Signer Is Representing: _____________________ _ © 1999 National Notary Association• 9350 De Soto Ave., P.O. Box 2402 • Chatswor1h, CA 91313·2402 • www.nationalnotary.org Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827 RECORDING, REQUESTED BY Commo!lwealth Land Title Co. AND 'i.!VHEN RECORDED MAIL TO: Housin,g Authority of the County of San 020581 DOC JI JUN 17, 2002 4:59 OFFICIAL RECORDS ·m99 :re~~~ ~o•:2123-1890 IIIIIIHIIIIIIIIIIIIIIIIIIIIHIH/1 2002-0512826 SAN DIEGO COUNTY RECORDER'S OFFICE GREGORY J. SMITH, COUNTY RECORDER FEES: 19.00 APN: 206-042-44 Escrow No: 01.086786-937-CPJ Title No: 1086786-8 Space above this line for Recorder's use SUBORDINATION AGREEMENT PM 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 31 st day of May 2002 by Richard A. Kern and Debra K. Kern, Husband and Wife as Community Property owner of the land hereinafter described and hereinafter referred to as "Owner", and Housing Authority of the County of San Diego present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary"; WITNESSETH THAT WHEREAS, Owner has executed a deed of tru'st, dated September 29, 1997 , to Chicago Title Company, as trustee, covering: See Exhibit A attached hereto and made a part hereof. Commonly known as: 446 Chinquapin Avenue, Carlsbad, CA 92008 to secure a note in the sum of $20,000.00, dated September 29, 1997 , in favor of Housing Authority of the County of San Diego, which deed of trust was recorded December 12, 1997 as instrument number 1997-0631452, Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $161,000.00, dated June 7 , 2 0 0 2 , in favor of Sierra Pacific Mortgage Company,· hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; 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 the deed of trust in favor or 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. Page 1 of 4 Escrow N,o.: 01086786-937-CP3 NOW THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consicJeration, 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 shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore 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) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) 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) He 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 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 note secured by 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 THE LAND. Beneficiary Owner ~rn a?-d~ra K. Kern ~tf~--Pt Carol A. Arrollado Richard A. Kern ])~61 w k • /4::L<La Debra K. Kern (All signatures must be acknowledged) Form Furnished By Commonwealth Land Title Company IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. (SUBORDINATION FORM "A") Deed of Trust to New Deed of Trust Page 2 of 4 State of California C~unty of J.:i!/a, £1 ~fr' 0 before me, ~~'.LLL=-~-,L:.ct::.....I....L.J""--'-...LL~:......u.~~ (NAME/TITLE OF OFFICER-i.e. "JANE DOE, personally appeared _ _,_U ....... n~-....... co ............ l,....A_.• A__._._r _y_,.<J ...... ! ....... /4"'"'"a~d=---o.___ __ (NAME(S) OF SIGNER(S)) ~ personally known to me -OR-□ 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 person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. (SEAL) ~~d'L (Sl'TURE OFOTARYJ ATTENTION NOTARY The information requested below and in the column to the right is OPTIONAL. Recording of this document is not required by law and is also optional. It could, however, prevent fraudulent attachment of this certificate to any unauthorized document. THIS CEATIFICA TE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: Trtle or Type of Document ________________ _ Number of Pages ___ Date of Document __________ _ Signer(s) Other Than Named Above _____________ _ WOLCOTTS FORM 63237 Rev. 3-94 (price cl1u 8·2A) ©1994 WOLCOTTS FORMS, INC. ALL PURPOSE ACKNOWLEDGMENT FOR CALIFORNIA WITH SIGNER CAPACITY/REPRESENTATION/TWO FINGERPRINTS RIGHT THUMBPRINT (Optional) w rr: w :c .. ! i': u. 0 .. f! CAPACITY CLAIMED BY SIGNEA(S) DINDIVIDUAL(S) □CORPORATE ______ _ OFFICER(S) --~=---1nrus1 □PAATNER(S) □LIMITED □GENERAL □ATTORNEY IN FACT □TAUSTEE(Sl □GUAADIAN/CONSERVA TOA □OTHER: _______ _ SIGNER IS REPRESENTING: (Name of Person(s) or Entity(iea) RIGHT THUMBPRINT (Optional) w ffi :c .. ! :c ... u. 0 .. f! CAPACITY CLAIMED BY SIGNER(Sl DINDIVIDUAL(S) □CORPORATE ------- OFFICER(S) ______ _ (TITLES) □PARTNER(S) □LIMITED □GENERAL □ATTORNEY IN FACT □TRUSTEE(S) □GUARDIAN/CON SERVA TOR □OTHER: -------- SIGNER IS REPRESENTING: (Name of Person(s) or Entity(ies) Escrow No.: 01086786-937-CP3 o2oss4 } SS : _....,..,==\,,b-'"l-"" ..... '--'<,,""'-.,L;._-+-+~-=t---'--'....a..--+---+----b'"-"'--4c..L->-.----1...-.,_"-"'LL-<~"---4-,-'-'-+-;...a._,__.L------,-----:-----,---------,---:-----:-' peJ;S{JL/:IQ.1-1¥-~~Q...J;.Q-l+ie.-\Or pro ed to me on tlie basis of satisfactory evidence) to e the IS)QFS0A(s) whose nttme(s)-isfare subscribed to the within instrument and acknowledged to me that he~ey executed the same in -Ais/he1/their authorized ca-pacity'(ies), and t by -lfflfher/their si~(s) on the instrument the p~), or the entity upon behalf of which the p.sFSSi+(s) acted, ex c ted the instrument. WITNESS my hand a STATE OF CALIFORNIA COUNTY OF ______________ _ } SS: On ____________________________________________ _ before me, the undersigned, a Notary Public, in and for said County and State, personally appeared _________ _ personally known to me (or 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 person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature __________________ _ (This area for official notarial seal) Page 3 of 4 Exhibit A All that certain real property situated in the County of San Diego, State of California, described as follows: Parcel 4 of Parcel Map 445 in the City of Carlsbad, County of San Diego, State of California, recorded in the Office of the County Recorder of San Diego County, February 2, 1971. HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO NOTICE TO BORROWER THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS AND HAS A BALLOON PAYMENT PROMISSORY NOTE CITY OF CARLSBAD $20,000.00 Date:SEPTEMBER 17, 1997 FOR VALUE RECEIVED, the undersigned (individually or collectively naorrower") promises to pay the Housing Authority of the County of San Diego on behalf of THE CITY OF CARLSBAD (referred to as the "Lender") , or Holder, the principal sum of TWENTY THOUSAND AND NO/loous---Dollars,($20,000a00 ), without interest on the unpaid principal balance from the date of this Promissory Note ("Note") until paid, at the rate of zero percent (0%) per annum. Principal shall be payable at the principal office of the holder hereof, 3989 Ruffin Road, San Diego, California 92123 or such other place as such holder may designate. One payment of principal and accrued interest shall be due in a single payment upon any occurrence outlined in paragraph #3. 1. Borrower's Obligation. This Note evidences funds loaned to Borrower to rehabilitate ·that certain property owned and occupied by the Borrower and described as follows~ Legal Description:PARCEL 4 OF PARCEL MAP 445 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, FEBRUARY 2u 1971. Mobilehome Descriptiong 2. Principal Place of Residence. BORROWER WARRANTS THAT BORROWER WILL OCCUPY THE PROPERTY AS BORROWER'S PRINCIPAL RESIDENCE AND THAT FAILURE TO DO SO SHALL CAUSE ALL PRINCIPAL AND INTEREST ON THIS NOTE TO BECOME IMMEDIATELY DUE AND PAYABLE. 3. Due on Sales Clause. THE UNPAID BALANCE IS DUE AND PAYABLE UPON DEATH OF THE BORROWER, CHANGE OF RESIDENCY OF BORROWER, OR SALE, CONVEYANCE, ALIENATION OR TRANSFER OF THE PROPERTY DESCRIBED ABOVE AND FURTHER DESCRIBED IN THE DEED OF TRUST, OWNERSHIP CERTIFICATE (PINK SLIP) OR CERTIFICATE OF TITLE SECURING THIS NOTE, TO OTHER THAN THE PRESENT OWNER OF RECORD OR SURVIVING SPOUSE. 4. Late Charge. The Borrower agrees that it would be impracticable or extremely difficult to fix the actual damage to the holder hereof in the event the Borrower shall be late in the making of any payment due hereunder, and that therefore in the event the Borrower shall fail to make any such payment within fifteen (15) days after the due date thereof, the holder hereof, at its option and addition to any other remedy hereunder, may impose under the Borrower, and the Borrower shall pay, a "late charge" of five percent (5%) of the amount of such delinquent payment. 5. Acceleration. In the event of default under this Note, the entire principal amount outstanding and accrued interest thereon will at once become due and payable at the option of the Note holder. The date specified will be not less than thirty (30) days from the date notice is mailed. The Note holder may exercise this option to accelerate this Note during any default by Borrower regardless of any prior forbearance. If suit is brought to collect this Note, the Note holder shall be entitled to collect all reasonable costs and expenses of suit, including, but not limited to attorney's fees. 6. Application of Payments. Borrower may prepay, without penalty, the principal amount of this Note outstanding in whole or in part at any time. Any partial prepayment will be applied first against accumulated interest and then against the principal amount outstanding. No prepayment will postpone the due date of any subsequent scheduled installment or change the amount of such payment, unless the Note holder otherwise agrees in writing. 7. Borrower's Waiver. Presentment, notice of dishonor, and protest are hereby waived by all makers, sureties, guarantors and endorsers hereof. This Note is the joint and several obligation of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their successors and assigns. 8. Notices. Any notice to Borrower provided for in this Note will be given by mailing such notice by certified mail addressed to Borrower at the property address stated below, or at such other address as Borrower may designate by notice to Note holder. Any notice to the Note holder will be given by mailing such notice by certified mail, return receipt requested, to the Note holder at the address stated in the first paragraph of this Note, or at such other address as may have been designated by potice to Borrower. ~4 f .. et; ICHARD1 A·. KERN ,I, h. Jc. . 1L-'-·· DEBRA K. KERN 446 CHINQUAPIN AVENUE CARLSBAD, CA. 92008 Address