The homeowner at 1327 Fairlane Drive has requested that the Village of Schaumburg subordinate its lien position on the rehabilitated home to Guaranteed Rate, Inc. The homeowner participated in the Residential Rehabilitation Loan Program with a total loan amount of $23,265.00, which would become due in 30 years, when the property was no longer the primary residence of the homeowner, or upon change of title, whichever occurs first.
It has been past practice for the Village to subordinate requests through the Residential Rehabilitation Program, provided that a homeowner is not incorporating other debt into the refinance. The homeowner is requesting the refinance for a loan amount of $230,000 to reduce the interest rate. No additional funds will be advanced to the homeowners. With the home estimated at $306,000, the homeowners will still have 17.3% clear equity in the home, including the Village’s mortgage. The Village of Schaumburg will retain 2nd position on the property. The Legal Division has reviewed this document, and Staff has drafted a resolution to this effect.