Subordination Agreement Requests

Process

Richfield Housing and Redevelopment Authority (HRA) loan recipients requesting subordination of the interest of the HRA in real property must submit a Subordination Request Form, the required supporting documentation, and a processing fee.  Please submit a Subordination Request Form from this link or by requesting one from the Community Development Department at 612-861-9760 (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.    

Policy

Richfield HRA Subordination Policy (effective June 2011)

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 (must indicate all debt against the property).

4.                   Explanation of remaining debts or liens with supporting documentation (i.e., most recent mortgage bill).

5.                   Estimated closing costs/settlement statement, where applicable.

6.                   A copy of the mortgagor's loan application.

7.          Additional documentation may be required.