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2os�o5o40 In the event of foreclosure of tlus 5ecurity Insttument or other Cransfer of title to the Property tha.t extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. 5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) a.nd shall continue to occupy the Property as B orrower's principal residence for at least one year after the date of occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Bonower's control. Bortower shall notify Lender of any extenuating circumstances. Bonower shall not commit waste or destroy, damage or substantially change the Properly or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Properly if the Property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned Properly. Borrower sha.11 also be in default if Borrower, during the loa.n application process, gave materially false or inaccurate information or statements to Lender (or fa.iled to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Properly as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold a.nd fee title shall not be merged unless Lender agrees to the merger in writing. 6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other ta.king of any part of the Property, or for conveyance in place of condemnation, are hereby assigned a.nd sha11 be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and tlus Security Instrumen� Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly payments, which are referred to in Paragraph 2, or change the amount of such payments. Any excess proceeds over an a.mount required to pay all outstanding indebtedness under the Note a.nd tlus Securiiy Instrument shall be paid to the entity legally entitled thereto. 7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governtnental or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to the entity wluch is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments. If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Properly, including payment of taxes, hazard insurance and other items mentioned in Paragraph 2. HCFC3-00703 FHA Deed oi Truat-NE VMP� Wolters Kluwer Financial Serviees 201206784.1.1.2336-J20120129Y 1 1 8' Revisad 4l96 ov�2 Page 4 oi 10