90-18 Authorizing Subordination of Mortgage-89 Watchung Avenue.pdf

90-18 March 13, 2018 RESOLUTION WHEREAS, the Township of West Orange Housing Rehabilitation Program has a mortgage against certain real property owned by Nelson B. Mejia and Sandra E. Mejia (the “Owners”) residing at 89 Watchung Avenue, Block 131, Lot 14 (the “Property”), in the amount of Fifteen Thousand Dollars ($15,000.00), which was dated January 29, 2004 and recorded in the Essex County Register’s Office on March 11, 2004 in Book 9630, Page 404 (the “WOHRP Mortgage”); and WHEREAS, there is a first mortgage on the Property held by Wells Fargo Bank in the outstanding amount of Seventy-Seven Thousand, Seven Hundred Seventy-Three Dollars and Eighty-Two Cents ($77,773.82) (the “First Mortgage”) at an interest rate of 5.087%; and WHEREAS, the Owners desire to refinance their home to obtain a new mortgage loan from Quicken Loans, Inc. (“Quicken”) in the amount of One Hundred Forty-Two Thousand Dollars ($142,000.00), and with an interest rate of 3.98% (the “New Mortgage”); and WHEREAS, the New Mortgage will pay off the First Mortgage; and WHEREAS, the Owners have requested that the Township of West Orange subordinate the WOHRP Mortgage to the New Mortgage; and WHEREAS, the appraised value of the property is $240,000; and WHEREAS, based on the amount of the New Mortgage as compared to the First Mortgage, the proposed subordination will not materially change the equity available to satisfy the WOHRP Mortgage; NOW THEREFORE, BE IT RESOLVED BY THE TOWNSHIP COUNCIL OF THE TOWNSHIP OF WEST ORANGE, that the Mayor be and hereby is authorized to execute a Subordination of Mortgage, annexed hereto as Exhibit “A,” in favor of Quicken with respect to the Property and the Owners; and be it further

2 RESOLVED, that the Municipal Clerk be and is hereby authorized to attest to the Mayor’s signature on the Subordination of Mortgage; and be it further RESOLVED, that a copy of this Resolution shall be made available in the Clerk’s office in accordance with applicable law. Karen J. Carnevale, R.M.C. Susan McCartney Municipal Clerk Council President Adopted: March 13, 2018 4821-3400-6878, v. 1