|
20120201G
<br />covered by Uris Security Instrument� All of the foregoing is referred to in tUis Security Instrument as the "Property."
<br />Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security
<br />Instrument; but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender' s auccessors
<br />and assigns) has the right: to exercise any or all of those interests, including, but not ]imited to, the right to foreclose
<br />and sell the Property; and to take any action required of Lender including, but not limited to, releasing or canceling
<br />ttris Security Instrmnent
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and comey the Property and that the Property is unencombered, except for encumbrances of record Borrower
<br />warrants and will defend generally the title w the Property against all claims and demands, subject to any
<br />encim►brances of record
<br />THIS SECURITY INSTRUMINT combines uniform covenantc for national use andnon-imiform covenants with
<br />limited variations by jurisdiction to constitute a imiform security instrument covering real properiy.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prindpal, Interest and Latc G7iarge. Bonower shall pay when due the principal o� and
<br />intereat on, the debt evidenced by the Note aad late charges due under the Note.
<br />2. Monthly Payment of Tage�, Insarance, and Other Charges. Borrower shall include in each monflily
<br />payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and
<br />special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the
<br />�aP�Y, ���) Premiums for insurance recririred under paragraph 4. In any year ia wlrich the Lender must pay a
<br />mortgage insurance premiimm to the Secretary of Housing and Urban Development ("Secretary"), or in any year in
<br />wlrich such premi� would have been required if Lender still held the Security Instrument, each monthly payment
<br />shall also include either: (i) a s� for the annual mortgage insurance premium to be paid by Lender to the Secxetary,
<br />or (ri) a monthly charge instead of a mortgage insurance premium if Uvs Security Instrument is held by the Secretary,
<br />in a reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items
<br />are called "Escrow Items" and ihe sums paid to Leader are called "Eecrow Funds."
<br />Lender may, at azry time, collect and hold amounts for Esctow Items in an ag@regate amount not to exceed the
<br />maxim� amount thal may be required for Bonower' s escrow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. §2601 et sea, and implementing regulations, 24 CFR Part 3500, as they may be ameaded
<br />from time to time ("RESPA"), except that the cushion or reservepermitted by RESPA for unanticipated disbursements
<br />ot disburaements before the Borrower' s payment� are available in the accoimt may not be based on amotmts due for
<br />the mortgage insurance premium.
<br />If the amount� held by Lender for Escrow Items exce,ed the amounts permitted to beheld by RESPA, Lender shall
<br />accotmt to Borrower for the excess fimds as required by RESPA. If the amoimts of fimds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may norify the Bonower and require Bonower to make
<br />up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums sec�ued by this Security Instrument If
<br />Borrower tenders to Lender the full payment of all such sums, Borrower' s accoimt shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premiimm installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refimd any excess fimds to Borrower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisi6on by Lender, Borrower's account shall be
<br />credited with azry balance remaining for all installments for items (a), (b). and (c)•
<br />3. Application of Payment�. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIRST, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br />the Secretary instead of the monUily mortgage insurance premium;
<br />SECOND. to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />inswance premiums, as required;
<br />THIltD, to interest due imder the Note;
<br />FOUR1'H. to amorti�arion of the principal of the Note; and
<br />FIFTH. to late charges due under the Note.
<br />4. PSre, Flood and Ot6er Hazard Insm�ance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequenfly er�ted, against aay ha�ards, casualties, and contingencies, including fire,
<br />for wlrich Lender requires insiaance. This insurance shall be maintained in the amounts and for the periods that
<br />Lendet requires. Borrower shall also insure all improvements on the Property, whether now in existcnce or
<br />subsequently erected, ag��r loss by flaods to the entent required by the Secretary. All insurance shall be carriedwith
<br />companies approved by Lender. The insivance polici� and any renewals stiall be held by Lender and shall include
<br />loss payable clauses in favor of, and 'm a form acceptable to, Lender.
<br />1n the event of lass, Borrower shall give Lender immediate notice by mail. Lender may make proaf of loss if not
<br />made promptly by Borrower. Each insuraace company concerned is hereby authorized and dir� to make payment
<br />for such loss directly ta Lender, instead of to Horrower and to Lender jointly. All or any part of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness imder the Note and
<br />Uris Seciuity Inatrument, first to any delinquent amounts applied in the order in paragraph 3, and then to PrepaYment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shall not extend or postpone the due deYe of the monthly payments which are referred to in paragraph 2, or
<br />change the amount of such paymenis. Any excess insurance proceeds over an amouat required to pay all outstanding
<br />indebtedness imder the Note and this Se�u�ity Instrument shall be paid to the entity legally entitled thereto.
<br />FHA NEBRASKA D� OF TRUST - MERS �dEeg/e �
<br />NmOTZ.FHA 10/27111 Page 2 of 7 www.dcanagk.mm
<br />�IDI� I��I I� II� I I � I Q U I I IIIIII II� � I�
<br />
|