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2Q��04207
<br />TOGETf�R WITH all the improvements now or her�fter erected on the pro�rty , attd all
<br />easements, agpurtenances, and fixtures now or hereafter a part of the properiy. All replacemeats and
<br />additions shall also be covered by this Security Inscrument All of the foregoing is referred to in this Security
<br />Instrument as the "Property". Bonower understands and agees that MERS holds only 1egal title to the
<br />interests granted by Borrower m this Security Insttvment; but, if necessary to comply with law or custom,
<br />MERS (as nominee for Lender and Lende�s successors and assi�s) has We righ� to exercise any or all of
<br />thosa interests, iacluding, but not limited to, the right to foreclose and sell the Properiy; aad w take any
<br />action required of Lender including, but not limited to, releasin or c�nceling this Se,curity Insbnmaent,
<br />BORROWER COVENANTS that Borrower is lawfu�ly seiz$d of the estate hereby conveyed and
<br />has the right to grant and convey the Properiy �d that the Properiy is unencumbered, except for
<br />encumbrances of record Borrower warrants and will defend generally the tttle to the Property against all
<br />claims and dem�ds, subject to any encumbrances of recard.
<br />THIS SECURITY INSTRiJMENT combines uniform covenants for narional use and non-uniform
<br />covenauts with limited variations by j�isdiction to canstitute a uniform sacurity instrument covering real
<br />��� Borrower and Lender covenant and agree as follows:
<br />iJNIFORM COVENANTS.
<br />1. Payment of Principal, Interest and Late Charge. Borrower shallpay when due the principal of,
<br />and interest on, the debt evidenced by the Note and late charges due under the Note.
<br />Z. Monthly Payment of Tases, Insurancc, and Other Charges. Borrower shall include m each
<br />monthly payttient, together with the principal and interest as set forth in the Note and any late charges, a sum
<br />for (a) taxes and special assess�nents levied or to be levied against the Properiy, (b) leasehold payments or
<br />ground rents on the Property, and (c) gremiums for insurance required under Paragraph 4. In any year in
<br />w}uch the Lender must ay a mortgage msurazice premium to the S�retary of Housin� and Urban
<br />Development (°Secretary"�, or in any year in which such premium would have been required �f Lender still
<br />held the Security InsUUment, each monthly payment shall also include either: (i) a sum for the annual
<br />mortgage insurance premium to be paid by Lender to the Secretary, ar(ri) a monthly charge instead of a
<br />mortgage insurance premrum if this Security Instrument is held by the Se�retazy, in a reasonable amount to
<br />be detarmined by tha Secretaty. Except for the monthly charge by the Secretary, �ese items are called
<br />"Escrow Items" aad the sums �azd to I.�der are called "Escrow Funds.°
<br />Lender may,.at any tune, collect and hold a�nounts for Escrow Items in an aggrogate amount not to
<br />exceed the maximum .amount thatmay be required for Borrovi+er's escrow account under the Real Estate
<br />Settlement Procedure.c Act of 1974, 12 U.S.C. § 2601 et sea• and implementing regulations, 24 CFR Part
<br />3500, as they may be amended from time W time ("RESPA'�, except that the cushion or reserve permitted by
<br />RESPA for unantic�pated disbursemevts or disbursements l�fore the Borrower's payments are available in
<br />the account may not be based on amounts due for the mortgage insurance premivai.
<br />If the amounts held by Lender for Escrow Items exceed the aznounts permitted to be held by
<br />RESPA, Lender shall account to Borrower for .the excess funds as required by RESPA. If the amounts of
<br />funds held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may aotity the
<br />Boaower and require Bottower to make up the shortage as permitted by RESPA.
<br />The F.,scrow Funds are pledged as addirional secunty for all sums secwed by tlus Security
<br />Inst�umen� If Borrower tenders to Lender the full payment of all such sums, Boaower's account shall be
<br />credited with the belance remaining for all installment items (a), (b), aad (c) and any mortgage insurance
<br />premium installment that Lender has not become obligat� to pay to the Secretary, and Lender shall promptly
<br />refimd any exc�s funds to Borrower. Immediately prior to a foreclosure sale of Uae Pro�eriy or its
<br />acquisition by Lender, Borrower's account shall be credited with any balaz►ce remaining for a11 mstallments
<br />for items (a), (b), and (c).
<br />3. Appllcation of Payments. All payments under Paragiaphs 1 and 2 shall be applied by Lender as
<br />follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the 5ecretazy or to the monthly
<br />charge by the Secretary instead of the monthly mortgage msivance premi�;
<br />Second, to any taxes, special assessmen�s, leasehold payments or ground rents, and fQe, flood and
<br />other hazard 'msurance premiums, as required;
<br />Third, to interest.dueunder the Note; .
<br />Fourth, to amortization of the principal of the Note; and.
<br />FYt'th, to late charges .due under the Note.
<br />4. Fire, Flood and Other Ha7ard Insur�nce. Boaower shall insiue all �provements on the
<br />ProPeriY, whether now in existenc$ or subsequently erected, a�ainst any hazards, casualties, and
<br />contingencies, including fire, for wltich Lsnder reqnires msutance. Th�s mswance shall be mau►tained 'm the
<br />amounts and for �e periods that Lender requires. Borrower shall also insure all improvements on the
<br />Property, whether now m existence or suhsequently erected, against loss by floads to the extent rec�uir� by
<br />the Secretary. AIl insurance sha11 be carried with companies approved by I.ender. 'Ihe insurance pohcies and
<br />any renewals shall 6e held by Lender and sha11 includc loss payable clauses in favor of, and 'm a fomn
<br />accaptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may mek�e proof
<br />of loss if not made promptly by Borrower. Each ins�nance company concerned is hereby auti�orized and
<br />directed W maka �ayment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All
<br />or any part of the msmance proceeds may be applied by Lander, at its option, eithe,r (a) to the reduction of the
<br />iadebtedness under the Note and this Security Instrument, first to azy delinquent amou�s applied 'm the order
<br />in Paragraph 3, and then to prepayment of principal, or (b) to t�e restoration or repair of the damaged
<br />Properiy. Any applicarion of the proceeds W the pnncipal shall not extend or postpone the due date of the
<br />monthly payments wluch are referred to in Paragraph 2, or change the amount of such payments. Any eaccess
<br />insuranca proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Security Instnmeut shall ba paid to the entity legally entitled �ereto.
<br />In tha event of foreclosure of this Seciuity Instrument or othar hansfer of titla to the Property that
<br />extinguishes the indebtedness, all right, title and 'mterest of Bonower in and to insurance policies in forrese
<br />shall pass to the purchaser. ..
<br />5. Occapancy, Preservation, Maintenance and Protecdon of the Property; Borrower's Loan
<br />Ap�Hcatfon; L�seholds. Borrower sha11 occupy, establish, and use the Properiy as Borrower's principal
<br />res�dence within sixty days after the execution of this Security Instrument (or v�nthm sixty days of a later sale
<br />or tisasfer of tb.e Property) and sha11 continue to occupy the Property as Borrower's pruicipal residence for at
<br />least one year after the date of occupancy, unless Lender determines that requirement wiU causa undue
<br />hardship for Borrower, or unless extenuaUng cucumstances exist which ara beyond Borrower's control.
<br />Borrower shall notify Lender of any exteauating circumstances. Borrower shall not comrait wasta or destroy,
<br />16256.CV (9/11) O113035 Pege 2 of 5
<br />FHANehiaslm Deed ofTmst MERS C�,fa���
<br />C�L �,�.
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