Loan Payoff & Subordination

The following information is for current URA residential loan clients.

For the URA to make an informed decision about whether it is willing to postpone its mortgage, judgment lien, or other encumbrance in favor of another lender, all borrowers must follow the information outlined below. If you wish to make a subordination request, please contact Donna Freeman, URA Housing Quality Control Analyst, at dfreeman@ura.org. No cash out is permitted.

Instructions:

1. Download Subordination Guidelines and Form (You will need to download Adobe Acrobat Reader, for free, to view and print these documents.)     
    
2. Review the Borrower Beware fact sheet on pages 3-5 to ensure you’re aware of home equity, mortgage refinancing, and debt equity loans.       
   
   
3. After you review the Borrower Beware information, if you wish to proceed, the URA requires the following information from the lending institution:
   
   • Mortgage Subordination Request Form (pages 3-5 of this document) signed by the borrower(s) and the Lender Mortgagee clause
     
     
   • Closing Disclosure, or HUD 101 Settlement Sheet, or Good Faith Estimate
     
     
   • First mortgage payoff letter
     
     
   • Home improvement estimates
     
     
   • Commitment letter from the lending institution confirming the loan terms
     
     
   • Property report or an appraisal dated within the last 60 days of loan application. (Please note that the total loan amounts cannot exceed the appraised value of the property.)
     
     
   • Proof of paid property taxes (The homeowner must not have any outstanding property taxes. Evidence of a payment plan for at least three months is acceptable.)
     
     
   • Copy of Title Commitment, if available

 

As soon as all the required documentation is received and reviewed, the URA will inform you of our decision. If we agree to a subordination, the lender will be required to prepare the subordination
agreement for review by the URA. If approved, the lender is required to record the subordination agreement. At closing, the borrower will be responsible for paying a Processing Fee to the URA in the amount of $200.00. The URA is not responsible for any recording fees associated with the subordination agreement.

Please know that subordinations are done as a service to you, the borrower, and we are not obligated to do so if it will jeopardize our loan security.