Subordination Agreements

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Richfield Subordination Agreements

Homeowners who received a Richfield Housing and Redevelopment Authority (HRA) loan in the past and are looking to refinance their first mortgage may need to request a subordination from the HRA. Homeowners should notify their lender of the loan's existence early in the refinancing process.

Process
In order to request a subordination, lenders must submit a Subordination Request Form [PDF], the required supporting documentation, and a processing fee. Please submit a Subordination Request Form from this link or by requesting one from the Housing Specialist at housespecialist@cityofrichfield.org (note: Subordination Request Form is fillable but cannot be submitted online; form must be printed and submitted via U.S. mail, facsimile or e-mail along with supporting documentation). Requests will not be considered until all documents and the processing fee have been received.

Note: It takes 2 to 4 weeks to process a subordination. In the case of an appeal, processing can take up to 8 weeks.

Policy
Richfield HRA Subordination Policy (effective June 2013) [PDF] 

Required Documentation
The following information must be submitted with the Subordination Request Form:

  1. A typed letter dated and signed by the mortgagor, stating the reason for the requested subordination and the use of any equity being removed as part of the loan transaction.
  2. A copy of the current appraisal (dated within six months of application) or other evidence of market value of the property that is acceptable to the HRA.
  3. A copy of current title work (should indicate all debt against the property).  Title Commitment should be no more than six months old.  
  4. Estimated closing costs/settlement statement, where applicable.
  5. A copy of the mortgagor's loan application.
  6. Additional documentation may be required.

Questions can be directed to the Housing Specialist at 612/861-9778 or housespecialist@cityofrichfield.org.

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