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HomeMy WebLinkAboutAgenda - 11-05-2003-8jORANGE COUNTY BOARD OF COMMISSIONERS Meeting Date: November 5, 2003 Action Agenda Item No. A_ SUBJECT: Approval of Subordination Agreement Related to Hurricane Floyd Mitigation Program DEPARTMENT: County Attorney /Manager PUBLIC HEARING: (YIN) No ATTACHMENT(S): INFORMATION CONTACT: 10/30/03 County Attorney Letter Geof Gledhill, 732 -2196 w /Attachments Rod Visser, ext 2300 9/15/03 Letter to State Employees' Credit Union w /Attachments TELEPHONE NUMBERS: Subordination Agreement Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336 - 227 -2031 PURPOSE: To approve an agreement related to a refinancing of property acquired by homeowners who participated in the federal Hazard Mitigation Grant Program (HMGP) following damage to their property during Hurricane Floyd in 1999. BACKGROUND: Orange County acquired property at 611 Yorktown Drive in the Heritage Hills subdivision south of Chapel Hill through the Federal Emergency Management Agency's Hazard Mitigation Program following Hurricane Floyd. The homeowners (Alex and Frances Hess) participated in the "buyout" aspect of that program and received fair market value for their property, title of which passed to Orange County under the provisions of the HMGP. The homeowners also received $17,070 in a deferred loan from the State Acquisition and Relocation Fund (SARF) to assist them in finding a comparably situated replacement home when they vacated 611 Yorktown in 2001. (Incidentally, the Yorktown home was thoroughly repaired following the flood damage and has since been moved to Little River Park, where it will serve as the caretaker residence for that new County park). The terms of the SARF program loan are described in the letter from the County Attorney. Because Orange County was the designated "grantee" for these funds and passed them along to the homeowners, the County has a security interest in the property for 10 years after the Hesses' new home purchase. The homeowners recently refinanced the purchase of the replacement home, thereby necessitating the preparation and approval of a subordination agreement. This subordination agreement will keep the County's deed of trust in a "second" lien position behind the Hesses' first mortgage. The County Attorney and the attorney for the homeowners have collaborated to prepare and compile the accompanying documents for the Board's review and approval. z FINANCIAL IMPACT: The County will experience no direct financial impact as a result of this action. Because the County is the "grantee' for the HMGP, SARF, and related grant funding programs, the County is a party to the subordination agreement. If the homeowners were to sell their replacement home before they have lived there ten years, they would repay to Orange County all or some portion of the SARF funds, which might in turn then need to be repaid to the original grantor, RECOMMENDATION(S): The Manager recommends that the Board approve the subordination agreement in substantially the attached form and authorize the Chair to sign it, LAW OFFICES COLEMAN, GLEDHILL, HARGRAVE &. PEEK A PROFESSIONAL CORPORATION 129 E TRYON STREET P. O- DRAWER 1529 HILLSBOROUGH, NORTH CAROLINA 27278 919. 732,2196 FAX 919 -732 -7997 % w v cgandhxom October 30, 2003 Mr, Rod Visser Assistant Orange County Manager Post Office Box 8181 Hillsborough, North Carolina 27278 FROM THE DESK OF GEOFFREY E. GLEDHILL EMAIL �cofficypicJMll @c�n�Jh.com RE: Hazard Mitigation Grant Program - Hess Property Dear Rod: This letter confirms our conversations concerning the requests made on behalf of Alex and Frances Hess for Orange County to subordinate a deed of trust to a first mortgage resulting from the refinancing by the Hesses of their home mortgage. The Hazard Mitigation Grant paid for the purchase of the former home of Mr. and Mrs. Hess that was flooded by Hurricane Floyd. The Grant also provided additional money to enable the Hesses to relocate to a new home, That additional money ($17,070.00) was provided to Mr. and Mrs. Hess as a deferred loan secured by a deed of trust on their new home. Orange County is the beneficiary of that deed of trust. The bank lender of the new mortgage loan is requiring its security for the loan to be in a first lien position. Therefore, in order for the Hesses to be able to secure their mortgage, they must either pay back the $17,070,00 or the County must agree to subordinate its deed of trust to the new mortgage. The terms of the deferred loan to the Hesses do not require them to repay the $17,070,00 if the Hesses own and live in their new home for 10 years. If they cease living in or sell their home within 5 years, they must repay the entire amount. If they cease living in it or sell it after 5 years but less than 10 there is a graduated amount of the loan which must be repaid. Orange County has an interest in insuring that the amount of its security in the property when added to the amount of a first mortgage is less than the market value of the property, Linnie Causey, a lawyer in Chapel Hill who has represented the Hesses in these matters, has provided the value information that is enclosed which indicates to me that the Hesses' home would sell for an U Mr. Rod Visser Page 2 October 30, 2003 amount greater than the total of the new Hess bank loan of $197,000.00 plus the deferred loan made possible by the Hazard Mitigation Grant of $17,070.00. I therefore think it is acceptable for Orange County to agree to subordinate its lien on the property to the lien for the Hesses' home mortgage. I have enclosed a copy of the subordination agreement which will need to be completed. I recommend that this matter be placed on the County Commissioners consent agenda for Board of Commissioner consideration and for Board authorization for the execution of the subordination agreement on behalf of Orange County. GEG /lsg Enclosures xc: Linnie W Very truly yours, COLEMAN, GLEDHILL, HARGRAVE & PEEK, P.C. Causey, Esquire 1sg :1etters \visserhesssubagmt, 1tr 5 INFO REGARDING HESS HOME Agent Full Report 4 es5C-' S Y \e-W 4 00\6 597383 Closed Residential 1907 WHITE PLAINS. RD, Photo: 1 Area /Sub: 228/ Zip: 27514 - Subd: COLONY WOODS Seller's Name: ROBIN & JIM SHEEDY chool information Elementary 1: Ephesus Elementary 2: Middle 1: Guy Phillips Middle 2: High 1: East Chapel Hill High 2: LP: $ 209,900 City: Chapel Hill Yr Bit: 1970 Dir: EPHESUS CHURCH RD, TO SHARON TO RIGHT ON WHITE PLAINS Remarks: RAISED RANCH WITH HARDWOOD FLOORS. ALL FORMALS. MAIN LEVEL MBR. FENCED YARD 600 SOFT OF HEATED BASEMENT IDEAL FOR SHOP OR STORAGE. AC COMPRESSOR IN 97, ROOF 90, GAS FURNACE 91.. BAY WINDOW IN BREAKFAST RM. FULL WALK OUT LOWER LEVEL WITH BED IDEAL FOR TEENS OR OFFICE. GREAT FAMILY NEIGHBORHOOD. WALK TO SCHOOLS & SHOPPING. CLOSE TO t1NC x RTC+ Living Area Above Grade: 1600 Below Grade: 954 Total: 2554 Other Area Above Grade: 0 Below Grade: 600 Total: 600 # Rooms: 9 Beds: 4 Full Baths: 2 Half Baths: 1 Livin Area -Room Dim /Le_vals Entry Hall: 6x8 / Main Master BR: 11x18/ Main Living: 20x12 / Main Bedroom 2: 12x12 / Main Dining: 12x11 / Main Bedroom 3: 13x11 /Main Family: 23x14 / Lower Bedroom 4: 20x11 / Lower Office /Study: / Bedroom 5: / Kitchen: 12x12 /Main Utility: / Breakfast: 11x8 / Main Bonus: / BASEMT / 23x19 / Lower Financing and Taxes Other RoArca_om DmlLev_eis Garage: % Carport: / Storage: / Porch: / Patio:/ Deck: 25x13 / Main Scrnd Porch: / Foundation: BASEMT Zoning: RES In City: Yes New Construction: No Est Fin Date: / Heat- Forced Air Builders Name: Interior - Wind. Treat Restrictive Covenants: No HO Assoc. Mgmt: Entry Foyer Exterior - Deck HOA Phone: HOA Fax: Total HOA Dues: $ 0/ Exterior - Patio Financing and Taxes Wtr/Swr -City Sewer Tax Value: $ 202,197 Tax Rate: 0.0172 TMIBK/PAR/LT or Deed Page: Financial Comments: WID Loc - See Remarks Legal Desc: LOT 176 SEC 3 COLONY LAKE pin @• Q7QQAd5d 19 One Story A/C - See Remarks Dining - Breakfast Room Interior - Smoke Alarm Type - Detached Heat- Forced Air Dining - Separate Dining Room Interior - Wind. Treat .26 -.5 Acres Fuel - Natural Gas Entry Foyer Exterior - Deck Traditional Water Htr - Gas Pantry Exterior - Patio Ext Finish -All Brick Veneer Wtr/Swr -City Sewer Separate Livingroom Exterior - Storage Shed Bsmt - None Wtr /Swr - City Water WID Loc - See Remarks Roof Age 6.10 Years Lot Desc -Wooded Lot WID Loc - Utility Room Roof - Shingle Parking - None Equip - Dishwasher Floors - Carpet Fee Includes - None Equip - Disposal Floors - Hardwood Financing - New Needed Interior - Bath/Shower A/C - Central Air No Assumption Interior - Skviiaht(s) List Agent: C00038 / Shahla Rezvani List Office: C /HPWC / Howard Perry & Walston Co List Agent: Comm to Buy Agt: 2.5C2.4R List Tvoe: ER Sale Office: C /HOME / 1 Pending Date: 8/11/2001 Selling Info: Financial Concessions: Agent Phone: 919- 960 -6302 Office Phone: 919 - 960 -6300 CoList Agent Phone: Comm to Sub Ant: 25C2 4R SO Phone: 919 - 967 -6363 Closed Date: 10/30/2001 Appt Phone: (919)595 -8989 Appt Phone: Terms: CONVENT Sold Price: $ 201,000 http:// bluedevil .trianglemis.com/SearchDetail/ Scripts /PrLAgtFuUPrtAgtFul .asp ?CSSName... 10/9/2003 11 TerraTax Property Report 0 TRIANGLE MLS Property Report 1907 WHITE PLAINS RD CHAPEL HILL, 27514 Area Map Site Map 9799844538 r t 9799845538 Woodlawn - v` Mebane Hillsborough;; �r 9799844415» 6'7190 ���' "�• s9'1 �tl Cs1=. 9799845412 C dIIA t` r " r11'1KG_ r ''� a Y Durham v -^- �' 9799845398 f Saxapahaw Chapel N-cr�� �- Cartboro 4 ' 9799846353 9799843294 ' Owner Informatinn Name: HESS ALEX L III Address: 11907WHIT E PLAINS RD Owner Occupietl: NIA CitylState2lp I CHAPEL HILL NC Propertv Details Property ID: 9799846412 Address: 1907 WHITE PLAINS RD Lot: 6 CitylStatelZip: CHAPEL HILL, 27514 Subdivision: NIA Municipality: CH Map Reference: 62E Census Tract: NIA SecrrwplRnglMer: NIA Census Block: 370630020181 Land Use Desc: NIA Land Use Code: NIA Zoning: CH legal Description: #176 SEC 3 COLONY WDS P17198 Assessment P Tax lnfnrmatinn Taxable Val: $202,197.00 Tax Amount: NIA 4 Tax Exemption: NIA Tax Year: NIA Land Value: $57,532.00 Imp. Value: 1$144,665.00 Tax Jurisdiction: 22 http: / /tax.trianglemis.com/ tax / search / reports /dsp _ lropertyCard.cfm ?locationlD= 97998454.,.. 10/9/2003 7 TerraTax Property Report Sales History Sale Amount: $0.00 Book Number: NIA Sale Price Code: NIA Page Number: 24071421 Prior Sale Date: 10131/2001 Record Type: NIA Prior Sale Amount: NIA Record Date: NIA Prior Sale Price Code: NIA Document Type: NIA Physical Characteristics Building Area: 0 Garage Size: NIA Lot Size: 0.00 Pool: NIA Lot Frontage: NIA Stories: NIA Lot Width: NIA Style: NIA Lot Depth: NIA Type Construction: NIA 2.48 North Carolina Exterior Wall: NIA Year Built: NIA Foundation: S Bedrooms: NIA Roof: NIA Bathrooms: NIA Heat: NIA Partial Bathrooms: NIA Air: NIA Total Rooms: NIA Fireplace: NIA Garage Type: NIA Basement: NIA Deed /Transfer Information Transfer Date: 101/3/2001 Document Num: NIA Document Type: NIA Seiler Name: SHEEDY JAMES G & ROBIN J 1907 WHITE PLAINS RD CHAPEL HILL NC 27514 Buyer Name: HESS ALEX L III Sales Price: $201,000.00 Transfer Tax: NIA Lender Name: NIA Lender Type: NIA Loan Amount: NIA Loan Type: NIA Transfer Date: 1011312001 Document Num: NIA Document Type: N/A Seller Name: SHEEDY JAMES G & ROBIN J 1907 WHITE PLAINS RD CHAPEL HILL NC 27514 Buyer Name: HESS ALEX L III Sales Price: $201,000.00 Transfer Tax: NIA Lender Name: NIA Lender Type: NIA Loan Amount: NIA Loan Type: NIA transfer Date: 101/312001 Document Num: NIA Document Type: NIA Seller Name: SHEEDY JAMES G & ROBIN J 1907 WHITE PLAINS RD CHAPEL HILL NC 27514 Buyer Name: HESS ALEX L III Sales Price: $0.00 Transfer Tax: NIA Lender Name: NIA Lender Type: NIA Loan Amount: NIA Loan Type: N/A Population Information hftp: / /tax.trianglemis.comltaxl search / reports/ dsp _propertyCard,cfm ?locationlD= 97998454... 10/9/2003 i Total Population 2003 Projected Change from 2003 to 2008 Housing Units Median Age Avg Household Size Local Area 1,459 11% 722 Local Area 42 2.17 Orange County 705,377 19% 298,216 Orange County 36 2.48 North Carolina 8,501,654 9% 3,832,775 North Carolina 38 2.47 hftp: / /tax.trianglemis.comltaxl search / reports/ dsp _propertyCard,cfm ?locationlD= 97998454... 10/9/2003 i TerraTax Property Report I Em to ment & Money Unemployment Median Nouse Median percapita Median Rate Value Household Income Household Net Income 30% Worth Local Area 1 7.10% $239,286 Local Area $ 70,544 $ 43,563 $ 163,061 Orange County 4.01% $186,999 Orange County $ 58,999 $ 28,85p $102,417 North Carolina 7.83% $112,859 North Carolina $ 41,912 $ 21,736 $ 86,028 Education (Highest Levell Grad. Degree Bach. Degree Assoc. Degree Some College High School Grad. Below H.S. Grad LocalArea 1 36% 1 39% 1 40/, F 10% Orange County 14% 1 30% 1 8% 20% 18 °/, 11% North Carolina 7% 1 15% 7% 20% 28% 22% htt p:/ /tax.trianglemis.comltaxlsearchl reports /dsp _propertyCard.cfm ?locationlD= 97998454... 10/9/2003 a SEP -25 -2003 12:52 AN Lot No. i •ri6ed by ., ...., ... r ,.. itulaa Tax $402-00 Parent identiller No. 9799�PA�54 - County on the _., day of fail actor racordipp to ,OR,pNTF.E., 'him Instrument was prepared by Lpvne W.,Gducy 1829, E,- rtenldln St. Ste .600 Ghopel H, I, „ .tier description for the Index 7,T I7d, SEC D. Colony Woods NORTH. C:AROLIN.A. C3HNERAL WARRANTY DEED 'HLS D19BD made thin .....7,9.0:... day of _•� ^�_.____. , ?COI by and between � RANTEE GRANTOR G Alay l.. Has III and wde, (amen G. Shee�fy mild Prances B, lien Robin J. Shady t 9D7 White. Plains Rd. Chapel dill, NU 27514, :eta In ap►raprfak black for nun o•rty: new, •ddeeee. #PA if apprapdate, ebaradem a entity, ea, tatpannon at patlare • •halldas nde singular, plural, education. feman oe oar neuteriad reduired Ipiyrcontcxttnir hairs, sdeceesora, and 89eipns, ah haT inelode that the Grantor, for a Valuable consideration paid by the Grantee, the roeoipt of which is hereby All that i eknowiedsed, has and by those presents doer grant, harparn. Chapeland convey unto the CriIFYEI'HiLL °tmpl Township I erenin for or parcel of land o;tvAted in the City of ' _ Q7;nge. Cnunty. North CsrolinA and n'.ore Darticularly dpst Abed As To owe; BRING ALL OF LOT NO, 176, SECTION 111, COLONY WCIODS SUBDIVISION, ACCOROT�'G TO PLAT BOOK 17, AT PAGE 96, ORANGE COUNTY REGISTRY, TO WHICH RRFERBNCE IS HEREB'f MADE POR A MORE pART1CULAR DESCRIPTION OF SnMP.. PIN: 979964 -5412 TM, 7 52E,C,5 �D 9 SEP -25 -2003 12:52 HOME TERM i i 1. 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Road City: Chapel Hill Photo: 1 Area /Sub: 2281 Zip: 27517 Yr Bit: 1964 Subd: Colony Woods Full Baths: 2 Seller's Name: Lewis and Margaret Miles School Information Master BR: 11.4x13.9 /Main Elementary 1: Ephesus Elementary 2: Middle 1: Guy Phillips Middle 2: High 1: East Chapel Hill High 2: Din Ephesus Chruch Road to left on Sharon. House is on the left one block up Remarks : Now vacant and so much easier to see how big the spaces are AC 2002, waterheater 2000, well maintained home in Colony Woods with great yard, separate studio for artist or workshop, wired with window unit AC. gas logs in FP, Tranquil sunroom with mature plantings just outside, raised bed gardens, garden shed much more! Living Area Above Grade: 2015 Below Grade: Total: 2015 Other Area Above Grade: 168 Below Grade: Total: 168 # Rooms: 8 Beds: 3 Full Baths: 2 Half Baths: 0 Living Area�Roon DimlLevels Other Area Room DimlLevels Entry Hall: 11x4.6 / Main Master BR: 11.4x13.9 /Main Garage:/ Living: 17.7x11.6 / Main Bedroom 2: 10..8x11 6 /Main Carport: / Dining: 14.7x 13.5 / Main Bedroom 3: 11..6x10 3 / Main Storage:/ Family: 21..7x14.5 /Main Bedroom 4: / Porch:/ Office /Study: 9 9x11 4 / Main Bedroom 5: / Patio: / Kitchen: 16x11.5 / Main utility: 6.4x4.6 / Main Deck: 12x12 /Main Breakfast: / Bonus: ! Scrod Porch: / Sunnn / 13.6x11.8 / Main Floors - Hardwood studio / 16x12 / Main 1-131 Ulm: uxu Lot 7E: Appx Acres: 0 Foundation: crawl Zoning: resident In City: Yes New Construction: No Est Fin Date: I .26 -.5 Acres Builders Name: Financing - Conventional Restrictive Covenants: HO Assoc. Mgmt: Heat Age 6 +Yrs No Assumption HOA Phone: HOA Fax: Total HOA Dues: $ 0/ n rmac. W <v<, wv Iax nave: I./ IInItlNVAMI -1 or Financial Comments: 48 hour kickout on sale of home .. show for back ups Legal. Desc: #82 Sce 3 Colony WDS Pin #: 9799851170 One Story A/C - Central Air Fee Includes - None Equip - Dishwasher Type - Detached AIC Age 0 -3 Years Financing -Cash Equip - Disposal .26 -.5 Acres Heat - Forced Air Financing - Conventional Equip - Refrigerator Ranch Heat Age 6 +Yrs No Assumption Interior -Attic Pull Down Ext Finish - Partial Brick Fuel - Natural Gas Dining - Eat -in Kitchen Exterior - Deck Ext Finish -Wood Water Htr - Gas Dining -Separate Dining Room Exterior - Detached Workshop Bsmt - None Water Htr Age 3 -6 Yrs Dining - See Remarks Exterior - Garden Area Roof -Shingle FP - Gas Logs 1st Floor Master Bedroom Floors - Hardwood Wtr /Swr - City Sewer Sun Room Floors -Tile Wtr/Swr - City Water W /DLee - IatFloor Floors - Vinyl Parking - DW /Concrete W/D Loc - Utility Room Show Instruct: Appointment Only, Notice Required Make Appointment List Agent: CMONRO / Robin Moon Agent Phone: 919. 489 -5894 Appt Phone: 919- 595 -8989 List Office: C /FRNK / Franklin Street Realty Office Phone: 919- 929 -7174 Co List Agent: Robin Moon CoList Agent Phone: 919-489 -5894 Appt Phone: 888- 954 -7469 Comm to Buy Agt: 3CHD2 4R Comm to Sub Agt: 3CHD24R ListTvoe: ER ana.o Nr f, nnen. Sale Office: CNSU06 / York Simpson Underwood_ Realty SO Phone: 919- 929 -7100 Terms: CONVN Pending Date: Closed Date: 8/2912003 Sold Price: $ 225,000 Selling Info: Financial Concessions: Other Concessions: http: / /bl uedevi l.trianglemis.com /SearchDctail/ Scripts/ PrtAgtFu l /PrtAgtFul.asp ?CSSName... 10/9/2003 Agent Full Report 1% 691629 Closed Residential LP: $ 225,000 402 LANDERWOOD LANE City: Chapel Hill Photo: 1 Area /Sub: 228/ Zip : 27517 Yr Bit: 1967 Subd: COLONY WOODS Half Baths: 1 Seller's Name: WITHHELD, CALL LA 1School Information Elementary 1: Ephesus Elementary 2: Middle 1: Guy Phillips Middle 2: High 1: East Chapel Hill High 2: Dir: FROM 15/501 TURN ONTO EPHESUS CHURCH RD OPPOSITE EASTGATE. TURN LEFT ON LEANDERWOOD (JUST PAST TINKERBELL). HOUSE ON L. NEAR END OF RD.. Remarks: ALL BRICK RANCH WITH FINISHED LOWER LEVEL FAMILY ROOM, SECOND FIREPLACE & BEDROOM CURRENTLY USED AS HOME OFFICE. SUNROOM ON MAIN LEVEL OVERLOOKS BRICK PATIO & LOVELY LOW - MAINTENANCE LANDSCAPING. KITCHEN REDONE IN 1990, YOU MUST SEE THE CUSTOM PANTRYI THERE'S EVEN A SM. WORKSHOP IN THE CRAWL SPACE OFF THE I Al INnRYIRATH nM I nin=o I cvci Living Area Above Grade: 1614 Below Grade: 640 Total: 2254 Other Area Above Grade: 0 Below Grade: Total: 0 # Rooms: 10 Beds: 4 Full Baths: 2 Half Baths: 1 Living Area�Room Dim/Levels Other Area-Room DimlLev_els Entry Hall: 07.5X05.0 / Main Master BR: 116X11.7 / Main Garage: l Living: 18.7X11.5! Main Bedroom 2: 10.5X11.3 / Main Carport: / Dining: 13.5X11..5 / Main Bedroom 3: 11.3X10.0 / Main Storage: / Family: 24..3X10..0 / Lower Bedroom 4: 11.5X 16.3 /Lower Porch: / Office /Study: / Bedroom 5: / Patio: / Kitchen: 11.0X08.0 / Main Utility: / Deck: / Breakfast: / Bonus: / Scrnd Porch: / SUNROM / 15.8X10.9 / Main Exterior - Storm Doors Floors - Hardwood Foundation: BASMNT New Construction: No Builders Name: HO Assoc. Mgmt: HOA Phone: Financial Comments: NEW NEEDED Legal Desc: #76 SEC 2 COLONY WOODS Lot #: 14 Appx Acres: 0.4 Zoning: R -2 In City: Yes Est Fin Date: / Restrictive Covenants: No HOA Fax: Total HOA Dues: $ 0/ or Deed Page: One Story Fuel - Natural Gas Entry Foyer Interior - FP Screen Type - Detached WaterHtr - Gas Office Interior - Tub /Shower .26 -.6 Acres FP - In Family Room Pantry Exterior - Ins. Window Ranch Wtr /Swr - City Sewer SeparateLivingroom Exterior - Landscaped Ext Finish - All Brick Veneer Wtr /Swr - City Water W/D Loc - Utility Room Exterior - Patio Bsmt - Daylight Lot Desc - Hardwood Trees Equip - Dishwasher Exterior - Porch Bsmt - Finished Parking - DW /Concrete Equip - Disposal Exterior - Storage Shed Roof - Shingle Parking Pad Equip - Electric Range Exterior - Storm Doors Floors - Hardwood Fee Includes - None Known Equip - Microwave Floors - Parquet Financing - Cash Equip - Range Hood Floors - Tile Financing - Conventional Equip - Self Clean Oven Floors - Vinyl No Assumption Interior - Attic Skutt A/C - Central Air Dining - Separate Dining Room Interior - Bookshelves Heat - Forced Air 1st Floor Bedroom Interior -Ceiling Fan Heat Age 6 +Yrs 1st Floor Master Bedroom Inrerinr - rornx. Wnn List Agent: C00035 / Marilyn. Avis Agent Phone.919- 226 -2447 Appt Phone: 919- 595.8989 List Office: C /HOME / The Home Team Office Phone: 919- 967 -6363 Co List Agent: CoList Agent Phone: Appt Phone: 888- 954 -7469 Comm to Buy Agt: 3CHD2 411 Comm to Sub Alit: 0 ListT e:ER Possession:ATC DOM: P _..._.. Comparable Information http:// bluedevil ,trianglemis.comlSearchDetailI Scripts IPrtAgtFullPrtAgtFulAsp ?CS SName... 10/9/2003 Agent Full Report E 652186 Closed Residential 416 Overland Drive Photo: 1...... Area /Sub: 228/ Zip: 27517 Subd: Colony Woods Seller's Name: Carr, Kendall and Marjorie School Information Elementary 1: Ephesus Elementary 2: Middle 1: Guy Phillips Middle 2: High 1: East Chapel Hill High 2: Din Ephesus Church Rd to Sharon.. Left on Overland.. LP: $ 232,900 City: Chapel Hill Yr Bit: 1968 Remarks : 5 bedroom brick ranch in lovely park -like setting. Extra lot available. Relax on the wonderful screened porch. 3 bedrooms main level and 2 on lower level. Workshop on lower level plus an office, family room and storage. Lots of room for avP.mnna Living Area Above Grade: 1740 Below Grade: 1290 Other Area Above Grade: 0 Total: 3030 # Rooms: 13 Beds: 5 Below Grade: 450 Full Baths: 3 Total: 450 Half Baths: 0 Living Area_Room Dim /Levels Other Area -Room Dim /Levels Entry Hall: 12.0x05.0 / Main Master BR: 11.8x16.0 /Main Living: 23.0x15.9 / Main Bedroom 2:12 Ixl2 1 / Main Garage: / Carport: / Dining: 10.6x11.6 / Main Bedroom 3: 12.1x12.9 / Main Storage:/ Family: 29.4x13.4 / Lower Bedroom 4: 10.9x13..0 / Lower Porch: 25 6x06 1 / Main Office /Study: 13.0x09.9 / Lower Bedroom 5: 09.0x14.0 / Lower Patio: / Kitchen: 10.0x11.6 / Main utility: 12.0x05,0 / Lower Deck: 12.0x08.0 / Main Breakfast: 09.0x11.6 / Main Bonus: / Scrnd Porch: 12.0x13.9 / Main Worksh / 33.6x 13.4 / Lower FP - Masonry Family Room LOt Dim: 0 - Lot M Appx Acres: 0.32 Foundation: Bsmnt Zoning: Res In City: Yes New Construction: No Est Fin Date: / Traditional Ext Finish -All Brick Veneer Builders Name: Financing - New Needed No Assumption Restrictive Covenants: No HO Assoc. Mgmt: Water Htr - Gas Dining - Breakfast Room HOA Phone: HOA Fax: Total HOA Dues: $ 0/ Dining - Separate Dining Room Financi and Taxes Tax Value: $ 207,411 Tax Rate: 1.575 TM /BK/PARILT or Deed Page: 7.62B.1..12 Financial Comments: FP - Masonry Family Room 11 One Story Type - Detached Floors -Vinyl A/C - Central Air Lot Desc - Hardwood Trees Parking - DW /Concrete W/D Loc - Basement .26 -.5 Acres AIC Age 3.6 Years Fee Includes - None Equip - Dishwasher Equip - Disposal Traditional Ext Finish -All Brick Veneer Heat - Forced Air Fuel - Natural Gas Financing - New Needed No Assumption Equip - Refrigerator Interior Bsmt - Outside Entrance Water Htr - Gas Dining - Breakfast Room - Attic Pull Down Exterior - Deck Bsmt - Part Finish Bsmt-Workshop Water Htr Age 0 -3 Yrs FP Dining - Separate Dining Room Exterior - Gutters Roof - Shingle - In Basement FP - In Living Room 1st Floor Bedroom 1st Floor Master Bedroom Exterior - Screen Porch Floors - Carpet FP - Masonry Family Room Floors - Hardwood Wtr/Swr - City Sewer Study Floors - Parquet Wtr/Swr - City Water Workshnn List Agent: 000299 / Donna Lloyd Agent Phone. 919- 226 -2552 Appt Phone: (919) 595 -8989 List Office: C /HOME / The Home Team Office Phone: 919 - 967 -6363 Co List Agent: Barbara Levine CoUst Agent Phone: 919 -929 -1089 Appt Phone: Comm to Buy Alit: 3CHD2 413 Comm to Sub Alit: 3CHD2 4R List Type: ER Possession: ATC DOM: 51 Sale Office: G /HOME /The Home Team SO Phone: 919-967-6363 Terms: CONVN Pending Date: 9/2612002 Closed Date: 11/25/2002 Sold Price: $ 229,000 Selling Info: http:// bluedevil .trianglemis.com /SearchDetail/ Scripts/ PrtAgtFu l /PrtAgtFul.asp ?CSSName... 10/9/2003 Agent Full Report �q Sale Agent: C00479 / Rick Robinson Sale Office: C /FRNK / Franklin Street Realty Pending Date: Selling Info: Financial Concessions: Other Concessions: "Information deemed RELIABLE but not GUARANTEED— SA Phone: 919 -967 -8347 SO Phone: 919 -929 -7174 Terms: CONVN Closed Date: 8/1/2003 Sold Price: $ 230,000 "Copyright: 2001 -2003 by Triangle MLS, Inc." http:// bluedevil .trianglemis.com/SearchDetail/ Scripts/ PrtAgtFul /PrtAgtFul.asp ?CSSName.., 10/9/2003 Agent Full Report 672014 Closed Residential 59 OAKWOOD DRIVE Photo: 1 Area /Sub: 228/ Zip: 27514 Subd: GLEN LENNOX LP: $ 239,900 City: Chapel Hill Yr Bit: 1955 Seller's Name: MAR. WALTHER 7 MARTHA POWELL drool Information Elementary 1: Glenwood Elementary 2: Middle 1: Grey Culbreth Middle 2: High 1: East Chapel Hill High 2: Dir: FROM 15/501 BYPASS TURN ONTO CLELAND RD. MAKE SECOND RIGHT ON OAKWOOD. HOME ON RIGHT. Remarks: WOW! ALL BRICK IN GREAT CONDITION. PRE - INSPECTED. REFINISHED HARDWOOD FLS. IN LR, DR, BDRS. FRESH INTERIOR PAINT. BIG LIVING ROOM WITH MASONRY FIREPLACE. FAMILY ROOM HAS GAS LOGS. NICE KIT .& SEP. BKFST, RM. SCREENED PORCH. HUGE ATTIC FOR LOTS OF STORAGE. BACKS UP TO PARK, COMMUNITY TENNIS & PLAYGROUND. FABULOUS LOCATION TO RTP AND gHnppiNr, Other Area Above Grade: 0 Below Grade: Total: 0 # Rooms: 8 Beds: 3 Full Baths: 2 Half Baths: 0 Living Area-Roorp D.im /Levels Other Area_Room Dim /Levees Entry Hall: 5.3X4/ Main Master BR: 14X13.2 ! Main Garage: / Living: 18X14.7 / Main Bedroom 2: 12.2X 11 / Main Carport: / Dining: 14.7X12.1 / Main Bedroom 3: 12.1X11 I Main Storage:/ Family: 16..6X11.61 Main Bedroom 4: / Porch: 8.2X4 / Main Office /Study: / Bedroom 5: / Patio: / Kitchen: 16.7X12.1 / Main Utility: ! Deck:/ Breakfast: 12.4X8.41 Main Bonus: / Scrod Porch: 18.1X12 / Main Foundation: CRAWL New Construction: No Builders Name: UNKNOWN HO Assoc. Mgmt: HOA Phone: Financial Comments: NEW LOAN NEEDED One Story Type - Detached .26 -.5 Acres Traditional Ext Finish - All Brick Veneer Bsmt -None Roof - Shingle Floors - CerBath Fir Floors - Hardwood Floors - Vinyl A/C - Central Air Heat - Forced Air Fuel - Natural Gas Lot #: Appx Acres: Zoning: RES in City: Yes Est Fin Date: / Restrictive Covenants: Yes Fax: Total HOA Water Htr - See Remarks FP - In Family Room FP - In Living Room Wtr/Swr - City Sewer Wtr/Swr - City Water Lot Desc - Hardwood Trees Parking - DW /Gravel Fee Includes - None Known Financing - Cash Financing - Conventional Financing - New Needed No Assumption Dinine - Breakfast Room List Agent: D01869 ! AmyAr List Office: C /PRU1 / Prudent Co List Agent: Jay Andorfer -- Comm to Buy Agt: DCH3W2 4 Sale Office: C /HARP / H Pending Date: 1123/2003 or Dining - Separate Dining Room 1st Floor Bedroom 1st Floor Master Bedroom Attic Unfinished Entry Foyer Separate Livingroom W/D Loc - Kitchen Equip - Dishwasher Equip - Dryer Equip - Electric Range Equip - Microwave Agent Phone: 919- 933 -3693 Office Phone: 919- 929 -2186 CoList Agent Phone: 919- 313 -3455 Comm to Sub Agt DCH3W2.4 SO Phone: 919- 967 -7713 Closed Date: 3/3/2003 0/ Interior - Attic Floored Interior, Attic Pull Down Interior - Cable TV Available Interior - Tub /Shower Exterior - Garden Area Exterior - Gutters Exterior - Landscaped Exterior - Porch Exterior -Screen Porch Appt Phone: (919) 595-8989 ApptPhone: Terms: CONVN Sold Price: $ 245,000 FIN http:// bluedevil. trianglemis. com/ SearchDetail /Seripts/PrtAgtFuUPrtAgtFul .asp ?CSSName... 10/9/2003 a Unnie W. Causey Attorney at Law 1.829 F. Franklin Streot, 600 Franklin Square Chapel Hill, NC 27514 (919)967 -0010 phone (919)967.0210 rax September 15, 2003 State Employees' Credit Union RE: Refinance for Alex and Franccs Hcss 1907 Wbite Plains .Road Chapel Hill, NC Please find enclosed a copy of the second Deed of Trust to Orange County on the referenced property. Please note the "Loan Terms" as indicated in Exhibit A attached to the recorded document.. These loan terms includes repayment/defennent of said loan as follows: The Deferred Loan shall be secured against the property for ten years.. As long as Alex and Frances Hess own the property and do not convey their interest in the property during that ten year period, the subject lien shall be released, and Mr. and Mrs. Hess shall be forgiven any repayment for this loan. Ve y truly youQ ���\,�� innic W. Causey as SATISFACTION: The debt eeeumd by the wllhln Deed of Twsnognher wi,h he ver eul seanad thm,hy has he 11tuBed In full m, tPo —dayof glgned I +arlr.2407 veer 440 FILED 31 Orr 2001, at 02:l6x44vm POOR. 2407, Pape 440 -• 444 7OYCO H. Pcarsun Register 0.4 0eeds, Oranpe County, N. C. Recordlog: nme. vom.,,u r..e Tu Lm Na 7 SJF !' S Parcel ldcnllget NO. _4Z5.2BiiS417Yw4g Vedfledb, — CMM1'Mtthe T._dvVnf by Mail ahn mvo,d!ngro _S,jnniu IJ (' 7� •_ 79JD F, Frwnkiln._$,t,,,,,. Hfi00 - Chanel Hill, NC 27514 ThhlMNmemp,eparOdby LAnnie 11 CauseY gdel Derviodut to, the MfIt [,Ot 176 sec. 3 Col Ott 'TNd NORTH CAROLINA DEED OF TRUST CRAN70R ALEX L. HESS, III and Wife, FRANCES B. TRUSTEE LINNZE V. CAUSEY BENEFlCIARY ORANGE COUNTY NORTH CAROLINA EdRr m oppromiem hlnd, r,,,MMh p.m name. addrn4 and. If ap,Mp,ne. eh.metdr of oebtV, 06• eo romllpn or onnn!nhlp. n,, d.bM tlon Cram., Tlunee. epd B.,fielory U ,,M hcmin shall include uId mnles they h.il, tucrosor, n,e n,tlgn,. and chill Indadc,lnpvlu. plum, mnlemine. ke,IIIne os ..Ines as Ieo,tmd by eamvf WRiJE5gE7H.ThnWhtn<arlhe Cmnmfµlndcbtsdulhe Ran.Bdsryln d:eprndpat sum of _9flYPnt ^7s ThOV9,atld_SEy +PT}:Y a, .Wlennd W a lvnmusory rvom n, ...n a.a „nR11'A11.tiAl1• °Pai •• _.. ... Pmminery Note, gna soonerpvld. is �- K �N �� NOW, THERYORE, ., eetalty for uld Indelncdnel, ndvanremmm end other sums eeoended by heneddnq pgClant to MI, Deed of Tnni and emit of mlkcdan BndudinganomeV7lee. provided In the Pmminory lblel and alhervnhnhir comidrndan, the,•:cnlpi e(whlph b hnnby vc`"M +aged, the Grnm., bw bRg.mrd. sold, 91,01, gvnmd and vo.nyvd and doa by these pml<nu b.,galn, seq. slam, grunt and ccmey to s.Id Ttunee, ht, he1....eucgNwr. and Chapel Hill Chapel Hill Towmhln, udgm. the Oveelli of land eltuvled M the Clly of ,�� , _ Or.al" Cdumy. Nonh Cerollne.l the "PmmUa "') nntlmo,e paniculnlydncrlbed a bBuwu BEING ALL OF LOT NO, 178, SECTION III. COLONY WOODS SUBDIVISION, ACCORDING TO PLAT BOOK 17. AT PAGE 98, ORANGE COUNTY REGISTRY. TO WHICH REFERENCE IS HEREBY MADE FOR A MORE PARTICULAR DESCRIPTION OF SAME PIN: 9799845612 TM: 7.52E C5 N. f,. gaMm! "I 5 :, 1076. yw'a'D 6enl"M"' ,ne! • P14n61, 1plr•e,nl -0 tl, A G !b Ant - I>71 • JNn M' -"G., M1c • An q) • bft ✓a' 111:0511 MY2407 fhc¢ 441 km r^m�...t` +n Nayn.rn.omal... <e In,a.nk ed• +hi le ox r. ^w. n.r tiAr ...z[r<n. •Nl.ml.. mr+r nlrm W wnr. rrma mdm.an,.., m.. r...n..r,. 1, WEFiRNIO Oi L911EifL G'vm Mlrvnsam[4nrinn•IrN rn rn].[M1nn[9tu.11nnin flY1N 11 YiiM1xn'. sr[ rvru[ rr, n, rvnrl, J.< irlKrrnom •4[In/4[o /vn.4nnron[r Mrxr:mlorrn krM1lvrrn�iYNerrNmly wpry rvN nr. urr. pr +I.rTml.,mrrvvNM14��Y1v4.,vuwvuM nr prn nllFr rvP/ ^: r�vlc•In[n ^T n�7ulvrlm alW.m•, r1r[hn /r R'I+m mNvJ in0 alrTn m n n[mO ozv mte AJw Nn. ironM.[. Oi t¢[HISE5. ENAtI NOT APPLY UNLESS THE ¢t0[t TO iX[ ltT MAIM OF iMlS SENTENCE 16 HE pIC ADMO NAWD AND10P INIT A110. y.Npl[ a� rreinL M' ✓Nm loYr,r.m./[[1•mI.JNmmi Yr. +w! +••Lw rn•nR \14,prl nrlruv lr uJntTnnr •nJl tvelvvx M•uF nfrNNMt 4 LIML 0Yu114v 011. u 01....... t t��ri -6-q fbLACy S F�UW� T �i an Pia ,• : a waNLlvxPl0idbenrn,+m tinxnnJ oaml!.vN•mmm•mmwmM nrrv�ennJ eePprJuamP[w.mrer Wiu.J nn... mlNrnluh N.,rurWkb •mMNrvW a°•+ItlournmlAeJry W ... rr+ Ecarpornc Nnmel 0 ¢L.L `_IiEAW AT1ER: - _ 6EAU �— stcmum ¢nrpclaie scan ' IsEAu +j 1 -NORTH CAROLINA, J+�-� CiiP q .�:� /• Q. •yc.Ca NPIRryPJbh•ol eCPUntyandl atop id,cmllvlhal PLC •a od VQL I G .c6:. ae /fPnplly apaomd b Ner mc th6 day a d aelmg•.rlsihc nL 7 e 11" Pre¢Piri¢ m wltnas r ^^ dN" my he ^d and r j taNidal sump Pr.nah thl' PI��6 .\ �.� � M Gmml;don rJ 'ror. yPuhlk JHlaltlnlfl GPmy SEI,t.'�HP NORiHGRDUNA ' IaNPtnlyEUbAcPlih [CO,ImY And pnleabrcevlJ[enihlhat °IN, a``�yNIE, y I ........ Q om` _— • '•.9G� Penvneny appnred beforz mn not day and aeknPWledtpd lhn —hell kcn,'.NVI ! �E?c% NOP nNnnh bmlln +corpendnn andibl byav!hodlyduh' ""�¢\ :porn anda san as Pn6 ^cnmoollPV.ihclm!FNnB lmuum[nl wrt rifnrd In luname by lD , 'A-[� i/ \� pPrruJeni. scaledu+lh�a comomie twl a ^dnOnard 6Y_� —n•il• — _ B 5lemnry % is win'. my hand W,, omdoi acme or mllhu _._ day Pl — '��`Ni•. ^'�!L� •NG� My CemmieslPn nPil!5: Nary Public uh[ rnpGnd m be coc!r TMl invrnnrm and Ih6 cvn�lrtale are dviY / +Ebmrcd m the do <Tnri rlmr and In ihn AeP4 and Pape Chown Pn Ihr Ilr[I PapC RPI REGISM OF DIMS FOR __,,.^,-- COUNTY Sy_ -� - „_Deputy /ASIUIam- Repifur of DCCdl NCRr n. n:. m, r-. N^] m.... aob.dn5[pmmh•,1W•yd- WI,Pln•nl Wlnlptm. +un- IJaI-J -1 goer 5b.a ^nn '2' 1'0H pt anr.4 00' ° aim tp Of ' 1 r 0 �i Grt� Cate Joyce H. Pearson Register of Deeds Orange County North Carolina I State of North Carolina, County of Orange The foregoing certificate /s of Linnie W. Causey, Not Governmental units is /are certified to be correct Se. This day October 31, 200I JOYCE H. PEARSON, REGISTER OF DEEDS By: aq_ MO)2407 PACE 442 as 25 -2aal a /:]die Ncn- (-�(f i g, ( tl �• bw2407 P46E 443 �1�� �sg ' ��; �' I.• „`��i%�'y'y��p�annrrya�W °¢'l��:�E�yi�'�y `�,,','t'��p����i,?gi`��7�; r� QNIvimH1110V�1t! bYlaiaNltiYY1AaTZWtUiSPtlAKll y: ���y��` ��p�." ��la�y�� ,[VL',��.U: Lit• AL�l,' A: 1- 1: In�wPddR+ 8dW4FalMytlm�LUJll377aIGClai �W '�WN+AaMlaat�AY: Policy Statement The policy of the Orange County's Supplemental Relocation Assistance Grant Program will be to provide relocation assistance to homeowners whose primary residence has been destroyed as a result of Hurricane Floyd and whose destroyed home was subsequently purchased in the Orange County Hazard Midgatlon Grant program (HMGP). The purpose of the program is to assist homeowners in purchasing comparable housing and to support other public investment in recovery and redevelopment programs to benefit victims of Hurricane Floyd. Orange County acknowledges that the Supplemental Relocation Assistance Grant Program does not trigger the Uniform Relocation Act, (URA) regulations at 49 CFR 24.2(g)(iv) as this is a volumAry program.. Orange County will provide Supplemental Relocation Assistance to all eligible applicants per the programs Optional Relocation Plnn. This program is designed to Assist families in affording comparable housing. Comparable housing is generally defined as similar in square footage, bedrooms, batlutebms and amenities, and within The corporate limits of Orange County. The County will work to assist homeowners with the purchase of comparable housing that lies outside of the 100 -year floodplain and will provide advisory services to all applicants to aid in their search for safb, comparable housing. General Eligibility and Program Information Applicant Eligibility • Homeowner must be a participant its Orange County's Hazard Mitigation Grant Program (HMGP) buyout and complete t(rc buyout transaction • Homeowner must have been the owner of the damaged home on the date of flooding in September 1999. Homes purchased after the flood are eligible for the buy -out but will not be eligible for this program • Maximum supplement cannot exceed funds needed to purchase new home. • Families are required to occupy %he replacement home for at least ten years to avoid repayment • Maximum deferred loan cnn not exceed the comparable housing cost, unless a specific appeal has been approved. Appeals will be accepted only if no comparable housing can be identified.. • If homeowner has already purchased a replacement home and meets All program requirements, assistance will be provided based on comparability determination and NOT necessarily ou the price oftbe actual replacement home. Any homeowner whose damaged residence is included In the Orange County HMGP meeting the eligibility criteria defined above shell be eligible to apply for assistance through this program. No funds will be disbursed prior to Closing on a replacement home I i uct- YS -Zuul U4124in t1ul. MOY124O7 ?ACE 444' Eligible Replacement Property • Applicants can purchase any eligible prgperty within the Orange County corporate limits. • The rcplgeemertt property must be located outside of the floodplein. • The replacement home must meet mini" um housing code standards, • L.can Terms All supplements shall be in the for of a do[arred loan. All Dofoned Loans shall be. secured by a Deed of Trusr. The Deferred Loan will be ecurcd against the property for a period or ten years As long as the homeowner does not sell the property and continues to occupy the property as the primary residence within the ten -year peri the lien will be automatically released. After the fifth year, tho loan will be forgiven at a rate f 20% per year for the five -year period. In tfie event the homeowner sells, transfers or no long r occupies the property as their primary residence within the ren.yoor period, the loan will bee me due and payable. 51th' 02 000.5 10 50 hK An employee -awned company August 16, 2001 Bill Kearns Equity Mortgage 3510 University Drive Durham, NC 27707 Dear Mr. Kearns: btl_U C.'HHYtL HILL 1 yly 96'! 990.5 lu 96110210 Per your request, this letter is intended to provide information regarding Alex and Frances Hess and the funding they are receiving through the Federal Emergency Management Agency's Fiaeard Mitigation Grant Program and the State of North Carolina's Acquisition and Relocation Fund. Here is a little background information: The Hesses are participating in the Hazard Mitigation Grant Program (HMGP) buyout, which provides grant funds for Orange County to acquire their property at 611 Yorktown Drive in Chapel Hill (at the property's pre - Hurricane Floyd fair market value). These funds will be provided by the State to the County, who will cut a check to the Hesses for the accepted sale amount of $182,000 at closing. This grant program is not a loan, but is a cash settlement to the Hesses for allowing Orange County to purchase their property in conjunction with this acquisition project. The Hesses also will receive some assistance through the a2te Acquisition and Relocation F i to help them purchase their approved new property at 1907 White Plains Road in Chapel Hi ii, SARF costs, to five For the purchase of the property at 1907 White Plains Road, the $17,010,00 may he used for: • Any surveys, appraisals, termite inspection (and treatment, if necessary), title searches. closing costs (including any fees associated with the loan), title insurance, end recording fees required. e Any monetcry differeace between the amount paid for the property at 611 Yorktown Drive and the purchase price of the property at 1907 White Plains Road AFTER the Fiesses's loan amount is determined (it should be equal to the payoff for the current loan from the property at 611 Yorktown Drive). If you have any questions or need additional information /clarification, please do not hesitate to contact me at(919)876-6888. Thank you for your cooperation. S'ncerely, C �l p�1�Wx�j%)t Stacy F. Robinson Technical Coordinator Hazard Mitigation PBS &3 Cc: Alex Hess 3214 Spring Farast Rosd. Raleigh, North Carolina 27616 • Telephone, 919176 6888 • Fax: 919,876 6848 • www phsl.com ** TOTPL PRGE.02 ** Prepared by and RETURN to: LINNIE W., CAUSEY, ATTORNEY. 1829 E. Franklin Street, 600 Franklin Square Chapel Hill, North Carolina 27514 1. IIR111�072►[4]_va11:0W.V1Fi1If ./.1 SUBORDINATION AGREEMENT COUNTY OF ORANGE �P THIS SUBORDINATION AGREEMENT, made this the _ day of , 2003, by and between , ORANGE COUNTY (HEREINAFTER "COUNTY ") and LINNIE W. CAUSEY, (HEREINAFTER "CAUSEY ") Trustee for ORANGE COUNTY, parties of the first part, and ALEX L. HESS, III AND FRANCES B. HESS (HEREINAFTER `BORROWER "), and STATE EMPLOYEES' CREDIT UNION (HEREINAFTER "SECU ") its successors and /or assigns, parties of the second part; WITNESSETH: WHEREAS, SECU has agreed to make a loan to BORROWER in the amount of $197,000.00, and secured by a deed of trust to SECU on the property described as BEING ALL OF LOT NO. 176, SECTION III, COLONY WOODS SUBDIVISION, ACCORDING TO PLAT BOOK 17, AT PAGE 98, ORANGE COUNTY REGISTRY, TO WHICH REFERENCE IS HEREBY MADE FOR A MORE PARTICULAR DESCRIPTION OF SAME. PIN: 9799 -84 -5412 TM: 7.52E.C.5; which has an address of 1907 WHITE PLAINS ROAD, CHAPEL HILL, ORANGE COUNTY, NC. WHEREAS, there is a prior deed of trust on said premises bearing date of OCTOBER 29, 2001, executed by BORROWER, to CAUSEY, Trustee for COUNTY, recorded in Book 2407, Page 440 ORANGE County Registry, which instrument secures an original indebtedness therein described of $17,070.00 evidenced by a promissory note, whose terms and conditions are referenced herein and are incorporated and made a part of this Agreement,; and WHEREAS, the aforesaid borrower can procure said loan from LENDER only upon condition that the aforesaid existing deed of trust to CAUSEY, TRUSTEE FOR COUNTY be subordinated to the lien of said proposed deed of trust to , Trustee for LENDER; and WHEREAS, the aforesaid borrowers have requested the party of the first part to execute this subordination agreement and the party of the first part has agreed to such subordination; and WHEREAS, the party of the first part represents that the aforesaid promissory note from BORROWER, and the aforesaid deed of trust to CAUSEY, Trustee, are in the possession of COUNTY, and is controlled by it to such extent as to absolutely bind all assignees, transferees and grantees to the terms of this subordination agreement; NOW THEREFORE, in consideration of the aforesaid premises and of LENDER making a loan to ALEX L. HESS, III AND FRANCES B. HESS, the party of the first part, binding its successors and assigns, do by the execution of this instrument, subordinate the aforesaid deed of trust dated OCTOBER 29, 2001 to CAUSEY Trustee for ORANGE COUNTY, recorded in Book 2407, Page 440 of the ORANGE County Registry, to the lien, operation and effect of that certain deed of trust to be executed by the aforesaid borrower to ' Trustee for LENDER securing an indebtedness of $197,000.00 so that the aforesaid deed of trust shall be a Lien and charge superior to the lien and charge of that certain deed of trust to CAUSEY Trustee for COUNTY, recorded in Book 2407 Page 440 of the ORANGE County Registry, and for no other purpose. That except for the terms of this subordination agreement, the rights of the parties of the first part in and to the aforesaid recorded deed of trust in Book 2407 Page 440 the ORANGE County Registry and the note evidenced thereby are and shall be in full force and effect. IN TESTIMONY WHEREOF, LINNIE W. CAUSEY Trustee, has caused this instrument to be executed in its name, and ORANGE COUNTY, has caused this instrument to be executed in its name by RODERICK VISSER, Assistant County Manager; all by authority duly given this the day and year first above written. RODERICK VISSER'S authority to execute this document is indicated in Orange County Board of Commissioners Resolution attached hereto as Exhibit "A ". LINNIE W. CAUSEY TRUSTEE 3v ORANGE COUNTY IN ATTEST: Donna S. Baker Clerk to the Board of Commissioners Margaret Brown Chair, Orange County Board of Commissioners STATE OF NORTH CAROLINA, COUNTY OF I, , a Notary Public of the County and State aforesaid, do hereby certify that LINNIE W. CAUSEY personally appeared before me this day and acknowledged the execution of the foregoing instrument. Witness my hand and official stamp and seal, this day of , 2003. Notary Public My Commission Expires: NORTH CAROLINA, ORANGE COUNTY I, , a Notary Public of the County and State aforesaid, certify that Donna S. Baker personally came before me this day and acknowledged that she is Clerk to the Board of Commissioners for Orange County, North Carolina and that by authority duly given and as the act of said County, the foregoing instrument was signed in its name by the Chair of said Board of Commissioners and attested by her as Clerk to said Board of Commissioners. Witness my hand and official stamp or seal, this the day of 2003. Notary Public My Commission Expires: The foregoing certificate is certified to be correct. Filed for registration this the day of 2003 at o'clock in Book, Page Register of Deeds By: Assistant /Deputy Register of Deeds