TOWN OF TRUCKEE
SUBORDINATION REQUESTS INFORMATION
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:
- The home must remain your primary residence.
- The new first mortgage must be a fully amortized, fixed-rate mortgage. (No adjustable rate interest, interest only or negative amortization loans acceptable.)
- No cash out to the borrower. The Town will not subordinate is the borrower is pursuing refinancing for the purpose of liquidating equity in the home.
- The Town’s lien is to remain in second place.
- The term and conditions of the Town loan do not change.
- The Town will not incur any costs related to the refinance of the first mortgage including, but not limited to, costs for courier service.
- 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 current appraisal or written verification of the appraised value.
- A copy of the Estimated Settlement Statement is to be provided to the Town with the Subordination Request.
- The Subordination Agreement document shall include language that the agreement will be recorded concurrently with the new first mortgage.
- All documentation is subject to the Town’s approval.
- The Subordination Agreement to be prepared with Tony Lashbrook, Town Manager as authorized signatory.
- The Subordination Agreement and supporting documentation to be forwarded to for processing:
Town Clerk, Town of Truckee
10183 Truckee Airport Road
Truckee, CA 96161
- Please allow approximately seven days for Town processing.
At the Town’s discretion additional information and/or documentation may be required.
Please click on the following link for the standardized Subordination Agreement form.