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HomeMy WebLinkAboutValla/Shea - Forgivable Real Estate Mortgage - 9/8/2017iDi►i►iiiiiii►ii IIIIii►i►ii►i►i►iii►ii►►iii►►ii►►iii►►iii►►iiiii►ii►►i pe: GEN 1 Recorded: 10/02/201700atT01:32:49 PM Fee Amt: $7.00 Page 1 of 1 Black Hawk County Iowa SANDIE L. SMITH RECORDER Fi1e2018-00005 / 51 Please Return to: Wanda Hill -Dorris, Waterloo Housing Authority 620 Mulberry Street, Waterloo, IA 50703 (319) 233-0201 FORGIVABLE REAL ESTATE MORTGAGE Section 8 Down Payment Assistance Program This indenture made this date, 9/8/17 by Cynthia R. Vaala & Donald F. Shea Mortgagor, and The City of Waterloo, Iowa acting by and through the Waterloo Housing Authority, Mortgagee: That Mortgagor by these presents hereby grants, sells, conveys and mortgages to the Mortgagee, the following described property to wit: 216 Leonard Ave. Waterloo. IA 50703 Street Address City State Zip Legal Description: Soash Park Addition Lot 3 BLK 3 in the City of Waterloo, Iowa. As security for the payment by the Mortgagor of the forgivable loan provided for down payment assistance as authorized by the City in the Section 8 Down Payment Assistance Program in the principal amount of $ 3,500.00 (Forgivable Loan Amount). The mortgage secures to the Mortgagee the recapture of Section 8 Down Payment Assistance Program funds during the five-year period of limitation on resale profit. The Mortgagor must occupy the property described above as their principle place of residence. Leases or subleases are not permitted. The mortgagor agrees to keep all mortgage payments, property taxes, insurance and utility payments current in order to prevent the property from being foreclosed upon, uninsured or substandard due to utility shutoffs. In the event of a sale of the property before five years, the City shall have the power to review and approve of the sale price in order to preclude collusive resale that would circumvent the intent of limiting windfall profit. "Windfall profit" means all or a portion of the resale proceeds attributable to the purchase price discount. Determinations of fair market value shall be made on the basis of an independent appraisal within a reasonable time prior to the sale by an independent appraiser to be selected by the City. In the event that Mortgagor transfers, sells or rents the property to another, whether by contract, deed or lease agreement, either recorded or unrecorded, said property at any time prior five - years from the mortgage date, the outstanding balance of the mortgage shall be due and payable pursuant to the following schedule plus any windfall profit. If the property is transferred or rented: During 1st Year 100% Due During 4th Year 40% Due During 2nd Year 80% Due During 5th Year 20% Due During 3rd Year 60% Due During 6th Year 0% Due In the event that the Mortgagor retains legal possession of said property for a period of five years from the date of this Mortgage, Mortgagee hereby agrees to release in full, said mortgage, and said mortgage shall become null and void. All notices required to be given hereunder shall be in writing and deemed to be given when personally delivered, or deposited in the U. S. mail, postage prepaid, sent certified or registered, addressed as follows: If to Mortgagee: City of Waterloo Waterloo Housing Authority 620 Mulberry Street Waterloo, Iowa 50703 If to Mortgagor: Cynthia R. Vaala & Donald F. Shea 216 Leonard Ave. Waterloo, Iowa 50703 In the event any portion of this Mortgage, for any reason, is held to be invalid, illegal or unenforceable in whole or in part, the remaining provisions shall not be effected thereby and shall continue to be valid and enforceable. If for any reason, a court finds that any provision of this Mortgage is invalid, illegal, or unenforceable as written, but that by limiting such provision it would become valid, legal and enforceable, then such provision shall be deemed to be written, construed and enforced as so limited. X �"L� ��•A G` _ V (ca_ iC MORTGAGOR STATE OF IOWA, BLACK HAWK COUNTY SS. MORTGAGOR On this date, 9/8/2017, before me the undersigned, a Notary Public in and for the County of Black Hawk, State of Iowa, personally appeared Cynthia R. Vaala & Donald F. Shea to me known to be the persons named in and who executed the foregoing instrument and acknowledged that she executed the same as her voluntary act and deed. IN WITNESS WHEREOF, I have hereunto signed my name and affixed my Notarial Seal, the day and year last above written. 1A.1 JULIE DAWSON COMMISSION NO. 744481 M i l EXPIRES'ow �l1u oo Notary Public, in and for_tlie $t�te o Iowa. Commission expires !'S 1t