CM-2014-377ROUND ROCK TEXAS
PURPOSE. RUSJOK VPMYRRY
City of Round Rock
Agenda Item Summary
Agenda Number:
Title: Consider executing a Release of Lien under the CDBG Home Ownership
Assistance Program (HOAP) for Francisco De La Rosa and Naomi N. R.
De La Rosa, for the property located at 1507 Lantern Light Drive.
Type: City Manager Item
Governing Body: City Manager Approval
Agenda Date: 4/11/2014
Dept Director: Cheryl Delaney
Cost: $75.00
Indexes:
Attachments: LAF LIEN RELEASE DELAROSA.pdf, LIEN RELEASE
DOCUMENT_DELAROSA.pdf
Department: Fire Department
Text of Legislative File CM -2014-377
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 costs from 1998 to 2005. This program required
that a five year 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 Francisco De La
Rosa and Naomi N.R. De La Rosa. The De La Rosas received a $5,000 grant under the CDBG Home
Ownership Assistance Program in 2004 to purchase a home on 1507 Lantern Light Drive (Lot Thirty-eight (38),
Block "K", SAM BASS TRAILS). The $75 fee to release the lien has been paid and Naomi De La Rosa is now
requesting that Lien #2004086447 be released.
Staff recommends approval.
City of Round Rock Page 1 Printed on 4/10/2014
LEGAL DEPARTMENT APPROVAL FOR CITY COUNCIL/CITY MANAGER ACTION
Required for Submission of ALL City Council and City Manager Items
Department Name: Finance
Project Mgr/Resource: Elizabeth Alvarado
Council Action:
ORDINANCE
Agenda Wording
Project Name: Down Payment Assistance Program
ContractorNendor: N/A
n RESOLUTION
City Manager Approval
CMA Wording
Consider executing Release of Lien filed under Down Payment Assitance Program for Francisco Dela Rosa, JR. and wife Naomi
N. R. Dela Rosa, for the property located at 1507 Lantern Light Drive, Round Rock, Texas 78681.
Attorney Approval
7,
Attorney
Notes/Comments
Date 4113'
O:\wdox\SCCInts\0179\1403\MUNICIPAL\00295829.XLS Updated 6/3/08
RELEASE OF LIEN
(Down Payment Assistance Program)
Date: *l 1 ' , 2014
Note:
Date: October 26, 2004
Original Amount: $5,000.00
Maker: Francisco Dela Rosa Jr. and wife, Naomi N. R. Dela Rosa
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: Community 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 Francisco Dela Rosa JR. and
wife, Naomi N. R. Dela Rosa to Charles D. Crossfield, Trustee, dated October 26, 2004,
recorded as Document No. 2004086447 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 Thirty-eight (38), Block "K", SAM BASS TRAILS, an Addition in
Williamson County, Texas, according to the map or plat thereof recorded
in Cabinet I, Slide 260-262, 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.
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.
295828
CM -2014-377
When the context requires, singular nouns and pronouns include the plural.
CITY OF ROUND ROCK, TEXAS,
a Texas home rule municipality
By:
Steve Norwood, City Manager
ACKNOWLEDGMENT
STATE OF reo. --- §
COUNTY OF V v i Imo[ 444 5 §
This instrument was acknowledged before me on this the 1444 day of VI L ,
2014, bySTEVE NORWOOD, CityManager, CITY OF ROUND ROCK, TEX a Texas
g>
home rule municipality, on behalf of said municipality.
SARA LEIGH WHITE
MY COMMISSION EXPIRES
July11, 2016
PREPARED IN THE OFFICE OF:
AFTER RECORDING RETURN TO:
Notary Public, State of Te
Printed Name: ga VA_ Lf i y� V\fli (I
My Commission Expires: 11,2M'I
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
Dt-;\ U=)? -3 ��cc ,--iv-n
111111111111111111111111111111111111111111111111111111111111
DEED OF TRUST
(Downpayment Assistance Program)
Date: nri-nbpr 76 , 2004
Grantor: FRANCISCO DELA ROSA, JR. and wife, NAOMI N. R. DELA ROSA
Grantor's Mailing Address (including county):
FRANCISCO DELA ROSA, JR. and wife, NAOMI N. R. DELA ROSA
15-07—Lantern—Light Drive
fe tek,: Texas 38681
Williamson ounty
Trustee: Charles D. Crossfield
Trustee's Mailing Address (including county):
Charles D. Crossfield
309 East Main
Round Rock, Texas 78664
Williamson County, Texas
Beneficiary: City of Round Rock, Texas, a Texas home rule municipality
Beneficiary's Mailing Address (including county):
Note(s)
Attn: Downpayment Assistance Program Manager
City of Round Rock, Texas
221 East Main
Round Rock, Texas 78664
Williamson County, Texas
DT
7 PGS
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL
PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE
FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE
IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE
NUMBER.
Date: October 26, 2004
Amount: $5,000.00
Maker: FRANCISCO DELA ROSA, JR. and wife, NAOMI N. R. DELA ROSA
Payee: CITY OF ROUND ROCK, TEXAS, a Texas home rule municipality
Final Maturity Date: As provided in the Note.
Terms of Payment (optional): As provided in the Note.
00073665/kg
2004086447
Property (including any improvements):
The certain real property more particularly described on Exhibit "A" attached to this deed of bust
and by this reference incorporated in it, all fixtures and improvements situated thereon and all
rights, titles and interests appurtenant thereto.
Prior Lien(s) (including recording information):
The liens securing another note in the original principal amount of $97,231.00, o f even date,
executed b y G rantor, p ayable t o the o rder o f CYPRESS MORTGAGE COMPANY, INC., its
successors and or assigns (herein "Financial Institution"), including without limitation the liens
evidenced by that certain deed of trust and security agreement, of even date, executed by Grantor
in favor of Financial Institution and recorded in the real property records of Williamson County,
Texas.
Other Exceptions to Conveyance and Warranty:
1. Note dated of even date herewith, between Grantor and Beneficiary (the "note"). All
obligations and covenants in the note shall terminate on the date Beneficiary, in its sole
discretion, issues a release of all present and future rights to establish or enforce the deed of
trust lien that secures the note. The release shall be in such form as to enable it to be
recorded in the real property records of Williamson County, Texas; and
2. Easements, rights-of-way, and prescriptive rights, whether of record or not; all presently
recorded instruments that affect the property; taxes for 2004, the payment of which Grantor
assumes; and subsequent assessments for that and prior years due to change in land usage,
ownership, or both, the payment of which Grantor assumes.
For value received and to secure payment of the note, Grantor conveys the property to Trustee in trust.
Grantor warrants and agrees to defend the title to the property. If Grantor performs all the obligations and
covenants in the note and pays the note according to its terms, this deed of trust s hall have n o 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 condition;
2. pay all taxes and assessments on the property when due;
3. preserve the lien's priority as it is established in this deed of trust;
4. maintain, in a form acceptable to Beneficiary, an insurance policy that:
a. covers all improvements for their full insurable value as determined when the policy is
issued and renewed, unless Beneficiary approves a smaller amount in writing;
b. contains an 80% coinsurance clause;
c. provides fire and extended coverage, including windstorm coverage;
d. protects Beneficiary with a standard mortgage clause;
e. provides flood insurance at any time the property is in a flood hazard area; and
f. contains such other coverage as Beneficiary may reasonably require;
5. comply at all times with the requirements of the 80% coinsurance clause;
6. deliver the insurance policy to Beneficiary and deliver renewals to Beneficiary at least 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 personally able to pay and
abide by all prior lien instruments;
2.
9. if all or any part of the Property or an interest in it (including a beneficial interest) is sold or
transferred without compliance with the terms of the note and this deed of trust, immediately
pay in full 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 all rights
and responsibilities of Trustee.
2. 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.
3. Beneficiary may apply any proceeds received under the insurance policy either to reduce the
note or to repair or replace damaged or destroyed improvements covered by the policy.
4. If Grantor fails to perform any of Grantor's obligations, Beneficiary may perform those
obligations and be reimbursed by Grantor on demand at the place where the note is payable
for any sums so paid, including attorney's fees, plus interest on those sums from the dates of
payment at the rate stated in the note for matured, unpaid amounts. The sum to be
reimbursed shall be secured by this deed of trust.
5. If Grantor defaults on the note, or if Grantor fails to perform any of Grantor's obligations, or
if all or any part of the Property or an interest in it (including a beneficial interest) is sold or
transferred without compliance with the terms of the note and this deed of trust, or if default
occurs on a prior lien note or other instrument, and the default continues after Beneficiary
gives Grantor notice of the default and the time within which it must be cured, as may be
required by law or by written agreement, then Beneficiary may:
a. declare the unpaid principal balance and carried interest on the note immediately due;
b. request Trustee to foreclose this lien, in which case Beneficiary or Beneficiary's agent
shall give notice of the foreclosure sale as provided by the Texas Property Code as then
amended, and
c. purchase the property at any foreclosure sale by offering the highest bid and then have
the bid credited on the note.
6. If the Grantor defaults on the Note or fails to perform any of Grantor's obligations under this
Deed of Trust, the Beneficiary shall provide the Financial Institution, a prior lienholder, with
copies of all correspondence transmitted to Grantor regarding the default or notice of
acceleration.
Trustee's Duties
If requested by Beneficiary to foreclose this lien, Trustee shall:
1. either p ersonally or by a gent g ive notice o f the foreclosure s ale a s r equired b y the T exas
Property Code as then amended;
2. sell and convey all or part of the property to the highest bidder for cash with a general
warranty binding Grantor, subject to prior liens and to other exceptions to conveyance and
warranty;
3. from the proceeds of the sale, pay, in this order:
a. expenses of foreclosure, including a commission to Trustee of 5% of the bid;
b. to Beneficiary, the full amount of principal, interest, attorney's fees, and other charges
due and unpaid;
c. any amounts required by law to be paid before payment to Grantor, and
d. to Grantor, any balance, and
4. if the prior lien has not been released, give written notice to Financial Institution that Grantor
is in default under this deed of trust and a copy of the notice of foreclosure sale given
Grantor.
3.
General Provisions
1. If any of the property is sold under this deed of trust, Grantor shall immediately surrender
possession to the purchaser. If Grantor fails to do so, Grantor shall become a tenant at
sufferance of the purchaser, subject to an action for forcible detainer.
2. Recitals in any Trustee's deed conveying the property will be presumed to be true.
3. Proceeding under this deed of trust, filing suit for foreclosure, or pursuing any other remedy
will not constitute an election of remedies.
4. This lien shall remain superior to liens later created even if the time of payment of all or part
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, payments shall be
applied first to discharge that portion.
6. Grantor assigns to Beneficiary all sums payable to or received by Grantor from
condemnation of all or part of the property, from private sale in lieu of condemnation, and
from damages caused by public works or construction on or near the property. After
deducting any expenses incurred, including attorney's fees, Beneficiary may release any
remaining sums to Grantor or apply such sums to reduce the note. Beneficiary shall not be
liable for failure to collect or to exercise diligence in collecting any such sums.
7. Following the maturity of the above described Financial Institution loan, Grantor assigns to
Beneficiary absolutely, not only as collateral, all present and future rent and other income
and receipts from the property. Prior to such maturity Borrower's rights shall not arise under
this paragraph 7. Leases are not assigned. Grantor warrants the validity and enforceability of
the assignment. Grantor may as Beneficiary's licensee collect rent and other income and
receipts as long as Grantor is not in default under the note or this deed of trust. Grantor will
apply all rent and other income and receipts to payment of the note and performance of this
deed of trust, but if the rent and other income and receipts exceed the amount due under the
note and deed of trust, Grantor may retain the excess. If Grantor defaults in payment of the
note or performance of this deed of trust, Beneficiary may terminate Grantor's license to
collect and then as Grantor's agent may rent the property if it is vacant and collect all rent
and other income and receipts. Beneficiary neither has nor assumes any obligations as lessor
or landlord with respect to any occupant of the property. Beneficiary may exercise
Beneficiary's rights and r emedies under this p aragraph 7 without t aking p ossession o f the
property. Beneficiary shall apply all rent and other income and receipts collected under this
paragraph 7 first to expenses incurred in exercising Beneficiary's rights and remedies and
then to Grantor's obligations under the note and this deed of trust in the order determined by
Beneficiary. Beneficiary is not required to act under this paragraph 7, and acting under this
paragraph 7 does not waive any of Beneficiary's other rights or remedies. If Grantor becomes
a voluntary or involuntary bankrupt, Beneficiary's filing a proof of claim in bankruptcy will
be tantamount to the appoint of a receiver under Texas law.
8. Interest on the debt secured by this deed of trust shall not exceed the maximum amount of
nonusurious interest that may be contracted for, taken, reserved, charged, or received under
law; any interest in excess of that maximum amount shall be credited on the principal of the
debt or, if that has been paid, refunded. On any acceleration or required or permitted
prepayment, any such excess shall be canceled automatically as of the acceleration or
prepayment or, if already paid, credited on the principal of the debt or, if the principal of the
debt has been paid, refunded. This provision overrides other provisions in this and all other
instruments concerning the debt.
9. Grantor represents that this deed of trust and the note are given in part payment for purchase -
money on the property.
10. Except where otherwise required or permitted by the Beneficiary in connection with a
transfer on death, divorce, legal separation, or legal incapacity of a Grantor as provided in
the note, the note and this deed of trust may not be assumed.
11. If Grantor fails to pay any part of principal or interest secured by a prior lien or liens on the
property when it becomes payable or defaults on any prior lien instrument, the debt secured
by this deed of trust shall immediately become payable at the option of Beneficiary.
4.
•
12. Beneficiary and Grantor acknowledge and agree that this deed of trust is subject and
subordinate in all respects to the liens, terms, covenants and conditions of the prior lien and
to all advances heretofore made or which may hereafter be made pursuant to the prior lien,
including all sums advanced for the purpose of (a) protecting or further securing the lien of
the prior lien or (b) constructing, renovating, repairing, furnishing, fixturing or equipping the
Property. The terms and provisions of the prior lien are paramount and controlling, and they
supersede any other terms and provisions of this deed of trust hi conflict therewith. In the
event of a foreclosure or deed in lieu of foreclosure of the prior lien, any provisions herein or
any provision in any collateral agreement restricting the use of the Property to low or
moderate income households or otherwise restricting the Grantor's ability to sell the Property
shall have no further force or effect on subsequent owners or purchasers of the Property. Any
person, including his successors or assigns (other than the Grantor or a person or entity
related to the Grantor), receiving title to the Property through foreclosure or deed in lieu of
foreclosure of the prior lien shall receive title to the Property free and clear from such
restrictions. Further, if the Financial Institution acquires title to the Property pursuant to a
deed in lieu of foreclosure, the lien of this deed of trust shall automatically terminate upon
the Financial Institution's acquisition of title, provided that (i) the Beneficiary has been
given written notice of a default under the prior lien and (ii) the Beneficiary (or another party
acting on its behalf) shall not have cured the default under the prior lien, or diligently
pursued curing the default as determined by the Financial Institution, within the sixty-day
period provided in such notice sent to the Beneficiary.
13. 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 governed by the laws of Texas and the local jurisdiction in which the
Property is located.
14. When the context requires, singular nouns and pronouns include the plural.
15. The term "note" includes all sums secured by this deed of trust.
16. This deed of trust shall bind, inure to the benefit of, and be exercised by successors in
interest of all parties.
17. If Grantor and Maker are not the same person, the term "Grantor" shall include Maker.
EXECUTED AND DELIVERED as of the date first above written.
LA ROSA, JR
�J :-)n 'R
NAOMI N. R. DELA ROSA
ATTACHED EXHIBIT A - Legal Description of Property
ACKNOWLEDGMENT
STATE OF TEXAS
COUNTY OF M
�ruIne unn„u' 22 of QCi�
This `�strumenY�'���cknowledged before me on this the y 04
by FRANCISE'8tELtcR ,;�J'`R; and wife, NAOMI N. R. DELA ROSA.
Sy
't•• co
� 0 '. ....... ``�`
Notary Public, State
5.
exas
LitdArnerica Austin Title Company
Approved Attorney Department
1515 Capital of Texas Hwy South
Suite 500
parAsrAustin, T, s 78746
TO:
Attn: Downpayment Assistance Program Manager
City of Round Rock, Texas
221 East Main
Roiind Rock, Texas 78664
Williamson County, Texas
6.
EXHIBIT A
(Legal Description of Property)
The Property (including any improvements) referred to in this agreement is described as follows:
Lot Thirty-eight (38), Block "K", SAM BASS TRAILS, an
Addition in Williamson County, Texas, according to the map or
plat thereof recorded in Cabinet I, Slides 260-262, Plat Records,
Williamson County, Texas.
FILED AND RECORDED
OFFICIAL PUBLIC RECORDS 2004086447
11/04/2004 12:30 PM
DVITEK $26.00
NANCY E. RISTER, COUNTY CLERK
WILLIAMSON COUNTY, TEXAS