Subordination Agreement Information & Form

The Town of Truckee recognizes and appreciates that homeowners may desire to refinance a first mortgage as a means of lowering their housing costs. The Town of Truckee will subordinate to a new first mortgage if all of the following conditions are met and the requested information is provided to the Town:

  1. The home must remain your primary residence.
  2. The new first mortgage must be a fully amortized, fixed-rate mortgage. (No adjustable-rate interest, interest only, or negative amortization loans acceptable.)
  3. No cash out to the borrower. The Town will not subordinate if the borrower is pursuing refinancing for the purpose of liquidating equity in the home.
  4. The Town's lien is to remain in second place.
  5. The terms and conditions of the Town loan do not change.
  6. The Town will not incur any costs related to the refinance of the first mortgage including, but not limited to, costs for courier service.
  7. Documentation will be provided that the current appraised value is sufficient to include the new first mortgage as well as the Town's lien. This documentation may be a copy of the current appraisal or written verification of the appraised value.
  8. A copy of the Estimated Settlement Statement is to be provided to the Town with the Subordination Request.
  9. The Subordination Agreement document shall include language that the agreement will be recorded concurrently with the new first mortgage.
  10. All documentation is subject to the Town's approval.
  11. The Subordination Agreement is to be prepared with the Town Manager as an authorized signatory.
  12. The Subordination Agreement and supporting documentation are to be forwarded to for processing:

    Kelly Carpenter, Town Clerk, Town of Truckee
    10183 Truckee Airport Road
    Truckee, CA 96161
    Phone: 530-582-2924
    Email Kelly Carpenter
  13. Please allow approximately seven days for Town processing.

At the Town's discretion, additional information and/or documentation may be required. Please emailHousing@townoftruckee.gov for more information.