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CM-12-04-075ROUND ROCK, TEXAS PURPOSE PASSION. PROSPERITY 014-17.- RECEIVED APR 19 2012 City Manager Approval Form Item Caption: Home Ownership Assistance Program (HOAP) Lien Release for Jose Arauja and Juana A. Zambramo Approval Date: Friday, April 20, 2012 Department Name: Finance Department Project Manager: Elizabeth Alvarado Assigned Attorney: Jason Rammel Item Summary: In an effort to increase home ownership opportunities for the people of Round Rock, the Community Development Block Grant Program provided down payment assistance to eligible low to moderate income first time home buyers with grant funds up to $5,000 for closing cost from 1998 to 2005. This program required that a five lien be placed on the property and could be released after it expired and if the homeowner requested. Consider executing a Release of Lien under the Home Ownership Assistance Program for Jose Aruajo and Juana A. Zambramo. The Zambranos recieved a $5,000 grant under the Home Ownership Assistance Program in 2003 to purchase a home on 1906 Easton Drive (GREENHILL SEC 3, BLOCK E, LOT 23). The Zambramos paid the $75.00 fee and are now requesting that Lien #2003021935 be released. No. of Originals Submitted: 1 Project Name: Home Ownership Assistance Program Lien Release Cost: $75.00 paid by homeowner Source of Funds: Select Source Fund Source of Funds (if applicable): Select Source Fund Account Number: Finance Director Approval: Cheryl Delaney by S. Carter Date: 04/18/2012 Department Director Approval: Cheryl Delaney by S. Carter Date: 04/18/2012 **Electronic signature by the Director is acceptable, Please only submit ONE approval form per item.'" CIP ❑� ❑ Budget N/A OK ❑� ❑ N/A OK Purchasing ❑ Accounting N/A OK N/A OK ITEMS WILL NOT BE PLACED ON THE COUNCIL OR CM AGENDA W/OUT PRIOR FINANCE AND/OR LEGAL APPROVAL REV. 6/20/11 Date: 1 Z: , 2012 Note: IIIIIIIIIIIIIIIIIIIillllllllllilllilllllll 71 -,Gs RELEASE OF LIEN (Down Payment Assistance Program) 2012029760 Date: March 10, 2003 Original Amount: $5,000.00 Maker: JOSE ARAUJO ZAMBRANO and wife, JUANA A. ZAMBRANO Payee: CITY OF ROUND ROCK, TEXAS, a Texas home rule municipality Date of Maturity: as therein provided Holder of Note and Lien: CITY OF ROUND ROCK, TEXAS, a Texas home rule municipality Holder's Mailing Address (including county): Attn: Conununity Development Assistant City of Round Rock, Texas 221 East Main Round Rock, Texas 78664 Williamson County, Texas Note and Lien are Described in the Following Documents, Recorded in: Deed of Trust (Downpayment Assistance Program) executed by Jose Araujo Zambrano and wife, Juana A. Zambrano, to Charles D. Crossfield, Trustee, dated March 10, 2003, recorded as Document No. 2003021935, Official Public Records, Williamson County, Texas, securing CITY OF ROUND ROCK, TEXAS, a Texas home rule municipality, in the payment of one certain note for the principal sum of $5,000.00, due and payable and bearing interest as therein provided; and all the terms, conditions and stipulations contained therein, including, but not limited to, any additional indebtedness, if any, secured by said instrument. Property (including any improvements) Subject to Lien: Lot Twenty-three (23), Block "E", GREENHILL, SECTION THREE, a subdivision in Williamson County, Texas, according to the neap or plat thereof recorded in Cabinet D, Slide 111, Plat Records, Williamson County, Texas. Holder of the note and lien acknowledges its payment and releases the property from the lien and from all liens held by Holder of the note and lien without regard to how they were created or evidenced. 248317Doc/ CM' 17-01-- D1-5 Holder of the note and lien expressly releases all present and future rights to establish or enforce the lien as security for the payment of any future or other advances. When the context requires, singular nouns and pronouns include the plural. CITY OF ROUND ROCK, TEXAS, a Texas home rule municipality Steve Norwood, City Manager ACKNOWLEDGMENT STATE OF Te Xa' § COUNTY OF 11\1;11kovisth § This instrument was acknowledged before me on this the 'day of , 2012, by STEVE NORWOOD, City Manager, CITY OF ROUND ROCK, TEXA , a Texas home rule municipality, on behalf of said municipality. PREPARED IN THE OFFICE OF: AFTER RECORDING RETURN TO: Notary Public, Sta Printed Name: My Commission Expires: Sheets & Crossfield, P.C. Attorneys at Law 309 E. Main St. Round Rock, Texas 78664 Attn: Community Development Assistant Planning & Community Development City of Round Rock 301 W. Bagdad, Suite 140 Round Rock, Texas 78664 2 (Page 1 of 6) U ., te: antor: Grant 11 1 0A /r7 , 2003 JO 2003021935 6 p'gs DEED OF TRUST (Downpayment Assistance Program) AMBRANO and wife, JUANA A. ZAMBRANO dress in -N0 1 .41.•„� F o pt.irargiral uding county): 0 and wife, JUANA A. ZAM13RANO .rte 7844* J'. COUNTY Trustee: Charles D. Trustee's Mailing Add rofield es ►ydngc�,�ty): Id Charles D. Crossft 309 East Main Round Rock, Texas 7: Williamson County, Te 64 Beneficiary: City of Round Rock, as home rule , unicipality Beneficiary's Mailing Address (including county): Note(s) Attn: Downpayment Assistance Pro City of Round Rock, Texas 221 East Main Round Rock, Texas 78664 Williamson County, Texas Date: Amount: Maker: Payee: A /0/Z003 $5,000.00 JOSE ARAUJO ZAMBRANO and wife, JUAN CITY OF ROUND ROCK, TEXAS, a Texas ho Final Maturity Date: As provided in the Note. Terms of Payment (optional): As provided in the Note. Property (including any improvements): The certain real property more particularly described on Exhibit "A” attached to this this reference incorporated in it, all fixtures and improvements situated thereon and interests appurtenant thereto. 1. (Page 2 of 6) (s) (including recording information): ens securing another note in the original principal amount of $91,563.00, of even date, executed by payable to the order of STERLING CAPITAL. MORTGAGE, its successors and or assigns (herein al Institution"), including without limitation the liens evidenced by that certain deed of trust and gteeihen of even date, executed by Grantor in favor of Financial Institution and recorded in the rty = •r• of Williamson County, Texas. Other Fepti s t onve ane and Warranty: 1. herewith, between Grantor and Beneficiary (the "note"). All obligations and to shall terminate on the date Beneficiary, in its sole discretion, issues a release of a pr t s lure rights to establish or enforce the deed of trust lien that secures the note. The rel e s in sue form as to enable it to be recorded in the real property records of Williamson Coun , T 2. Basemen riptive rights, whether of record or not; all presently recorded instruments operty; taxes for 2003, the payment of which Grantor assumes; and subsequent asses •r d prior years due to change in land usage, ownership, or both, the payment of whi For value received and to scour pa of ih no G for conveys the property to Trustee in trust. Grantor warrants and agrees to defend the i o the o y. 1 c cantor performs all the obligations and covenants in the note and pays the note according to of trust shall have no further effect, and Beneficiary shall release it at Grantor's expense. Grantor's Obligations Grantor agrees to: 1. keep the property in good repair and co 2. pay all taxes and assessments on the prop 3. preserve the lien's priority as it is established in is d = f at; 4. maintain, in a form acceptable to Beneficiary, : i ti t po icy that: a. covers all improvements for their full insu :bl 'a e = d ed when the policy is issued and renewed, unless Beneficiary approves a sma ier.amo m writ' _; b. contains an 80% coinsurance clause; c. provides fire and extended coverage, including wi dst' ' co •ra e; d. protects Beneficiary with a standard mortgage cla e. provides flood insurance at any time the property is • zard ea' and f. contains such other coverage as Beneficiary may reasonab - 5. comply at all times with the requirements of the 80% coinsur 6. deliver the insurance policy to Beneficiary and deliver renews Bene r, at ast ten days before expiration; 7. keep any buildings occupied as required by the insurance policy; 8. if this is not a first lien, pay all prior lien notes that Grantor is perso ab to pa s abide by all prior lien instruments; 9. if all or any part of the Property or an interest in it (including a beneficial sol • • r transferred without compliance with the terms of the note and this deed of trust, ' ' ' edia = 11 to Beneficiary all sums secured by this deed of trust; and 10. comply at all times with the terms, representations, and conditions of the note. Beneficiary's Rights 1. Beneficiary may appoint in writing a substitute or successor trustee, succeeding to responsibilities of Trustee. 2. (Page 3 of 6) If the proceeds of the note are used to pay any debt secured by prior liens, Beneficiary is subrogated to all of the rights and liens of the holders of any debt so paid. eneficiary may apply any proceeds received under the insurance policy either to reduce the note or to it or replace damaged or destroyed improvements covered by the policy. rantor fails to perform any of Grantor's obligations, Beneficiary may perform those obligations and by Grantor on demand at the place where the note is payable for any sums so paid, ty's fees, plus interest on those sums from the dates of payment at the rate stated in the paid amounts. The sum to be reimbursed shall be secured by this deed of mist. the note, or if Grantor fails to perform any of Grantor's obligations, or if all or or an interest in it (including a beneficial interest) is sold or transferred without of the note and this deed of trust, or if default occurs on a prior lien note or ent, the default continues after Beneficiary gives Grantor notice of the default and the ch it must be cured, as may be required by law or by written agreement, then Be foci: r a. b. /Wing f• r . any c 0 efaults of the r •the e s requ: •t t notic • of c. purcha + :� credited on 6. If the Grantor Trust, the Benefi correspondence Iran tee 'ofr ores Trustee's Duties au o. ore shall y cipal balance and carried interest on the note immediately due; ecl� is lien, in which case Beneficiary or Beneficiary's agent shall give provided by the Texas Property Code as then amended, and ny foreclosure sale by offering the highest bid and then have the bid If requested by Beneficiary to foreclose th 1. a ir ote o 'de Gran 1' r fails to perfonn any of Grantor's obligations under this Deed of the Fi, = tial Institution, a prior lienholder, with copies of all r re; d' the default or notice of acceleration. Trustee shall - either personally or by agent give notice as then amended; 2. sell and convey all or part of the binding Grantor, subject to prior liens 3. from the proceeds of the sale, pay, in this a. expenses of foreclosure, including a tonus b. to Beneficiary, the full amount of princi unpaid; c. any amounts required by law to be paid befo d. to Grantor, any balance, and 4. if the prior lien has not been released, give written default under this deed of trust and a copy of the notice sale as required by the Texas Property Code est bidder for cash with a general warranty tions to conveyance and warranty; of 5% of the bid; rney's fees, and other charges due and General Provisions , and ial Institution that Grantor is in 'ven Grantor. 1. If any of the property is sold under this deed of trust, Grantor :: + y nder possession to the purchaser. If Grantor fails to do so, Grantor shall become a uff _ i v- of the purchaser, subject to an action for forcible detainer. 2. Recitals in any Trustee's deed conveying the property will be presum 3. Proceeding under this deed of trust, filing suit for foreclosure, or puns : an is re...y will not constitute an election of remedies. 4. This lien shall remain superior to liens later created even if the time of pant o : 4ar�ip rt*of the note is extended or part of the property is released. 5. If any portion of the note cannot be lawfully secured by this deed of trust, paymq ' ts,sf�a1N applied fust to discharge that portion. 6. Grantor assigns to Beneficiary all sums payable to or received by Grantor from con part of the property, from private sale in lieu of condemnation, and from damages ea works or construction on or near the property. After deducting any expenses incu attorney's fees, Beneficiary may release any remaining sums to Grantor or apply such s 3. (Page 4 of 6) ‘04 the note. Beneficiary shall not be liable for failure to collect or to exercise diligence in collecting any such sums. ollowing the maturity of the above described Financial Institution loan, Grantor assigns to B neficiary absolutely, not only as collateral, all present and future rent and other income and receipts the roperty. Prior to such maturity Borrower's rights shall not arise under this paragraph 7. assigned. Grantor warrants the validity and enforceability of the assignment. Grantor iaryfs licensee collect rent and other income and receipts as long as Grantor is not in ote or this deed of trust. Grantor will apply all rent and other income and receipts to e = and performance of this deed of trust, but if the rent and other income and receipts n . e under the note and deed of trust, Grantor may retain the excess. If Grantor f the note or performance of this deed of trust, Beneficiary may terminate rent collect and then as Grantor's agent may rent the property if it is vacant and collect tf ome and receipts. Beneficiary neither has nor assumes any obligations as lessor or any occupant of the property. Beneficiary may exercise Beneficiary's rights gra h 7 without taking possession of the property. Beneficiary shall apply t eipts collected under this paragraph 7 first to expenses incurred in remedies and then to Grantor's obligations under the note and this ermined by Beneficiary. Beneficiary is not required to act under this er s paragraph 7 does not waive any of Beneficiary's other rights or ntary or involuntary bankrupt, Beneficiary's filing a proof of claim . u e ap t of a receiver under Texas law. t shall not exceed the maximum amount of nonusurious t erved, charged, or received under law; any interest in etrs credited on the principal of the debt or, if that has been paid, �iued or perm • prepayment, any such excess shall be canceled opt on or prepa . t or, if already paid, credited on the principal of the debt or, if the principal of the debt has bee • aid, refu. ed.•This provision overrides other provisions efa as It exc aul G re e n •e e the • O the of s and not 0 rinse Cr ., Ian •� and all rent exercisin_ deed of paragraph 7, an remedies. If Or t�rrbe in bankruptcy wi i 8. Interest on the debt interest that may be excess of that maximu refunded. On any acceler automatically as of the ace or • es d u Be espect his Cr e ctin co aragra e s gder o •, • •tam ec ., .•. a vo to y this tract a It or or r ee all en the • bt. • en• in this and all other instnunents conce 9. Grantor represents that this deed of the property. 10. Except where otherwise required or death, divorce, legal separation, or lege i this deed of trust may not be assumed. 11. If Grantor fails to pay any part of principal o when it becomes payable or defaults on any p shall immediately become payable at the option 12. Beneficiary and Grantor acknowledge and agree that respects to the liens, terms, covenants and conditio made or which may hereafter be made pursuant to th purpose of (a) protecting or further securing the lien o repairing, furnishing, fixturing or equipping the Property. The paramount and controlling, and they supersede any other to conflict therewith. In the event of a foreclosure or deed in provisions herein or any provision in any collateral agreement r or moderate income households or otherwise restricting the Granto have no further force or effect on subsequent owners or purchas including his successors or assigns (other than the Grantor or a person o = receiving title to the Property through foreclosure or deed in lieu of for 1 r receive title to the Property free and clear from such restrictions. Further, acquires title to the Property pursuant to a deed in lieu of foreclosure, the lie automatically terminate upon the Financial Institution's acquisition of title, yr Beneficiary has been given written notice of a default under the prior lien and ( another party acting on its behalf) shall not have cured the default under the pri pursued curing the default as determined by the Financial Institution, within the s provided in such notice sent to the Beneficiary. st ermined b int or • are it v iven in part payment for purchase -money on e Beneficiary in connection with a transfer on a ntor as provided in the note, the note and • by a prior Hen or liens on the property the debt secured by this deed of trust sd of pn e pn tru en, 0 s 1' "lien rms a is subject and subordinate in all n and to all advances heretofore all sums advanced for the constructing, renovating, • ,. ions of the prior lien are f this deed of trust in the prior lien, any e Property to low e Property shall Any person, a e Grantor), rior lien shall e Uri titution shall t the f fo vtst .1 0 III! . abili• 4 • e e use• 0 Il Prop to 4. nary th 0 the deed •• t nefi .. lie y r entj 'od (Page 5 of 6) 3. This dead of trust and the note implement 42 USC 12701 et seq, and 24 CFR Part 92 and shall be construed in accordance therewith. To the extent not inconsistent therewith, these documents shall be 0overned by the laws of Texas and the local jurisdiction in which the Property is located. 14. en the context requires, singular nouns and pronouns include the plural. Th term "note" includes all sums secured by this deed of trust. T s • o t shall bind, inure to the benefit of, and be exercised by successors in interest of all ies. Granto : n er are not the same person, the term "Grantor" shall include Maker. EXEC of the date first above written. GRANTOR: ORAVIA11.6-4—.1-1221476t2°ZAMBRANO ATTACHED EXHIBIT A - Legal OWLED STATE OP TEXA COUNTY OF //l/Q/4,0n This instrument was acknowledged be ARAUJO ZAMBRANO and wife, JUANA A. ZA /0 day of AV/CA , 2003 by JOSE Attn: Downpayment Assistance Program Manager City of Round Rock, Texas 221 East Main Round Rock, Texas 78664 Williamson County, Texas V After recording return to: Texas American Title 4201 S. Congress Ave. Suite 203 Austin. TX 7$745 5. (Page 6 of 6) EXHIBIT A (Legal Description of Property) ()ocrt including any improvements) referred to in this agreement is described as follows: Lo e . ty=t ub, .vtsio reo r ,r C, •ty ex• tc (23), Block "E", GREENHILL, SECTION THREE, a illiamson County, Texas, according to the map or plat in Cabinet D, Slide 111, Plat Records, Williamson 03-11-2003-0 ANDERS° NARCY E. WILLIAMSONEC 6.