201206611 - Laserfiche WebLink

Browse

2012066�� mortgage �n��*a�p premium to be paid by Lender to the Secretary, or (u) a monthly charge instead of a mortgage �n�,�*ansp premium if this Security Instrument is held by the Secretary, in a reasonable amount to be determined by the 5ecretary. Except for the monthly charge by the Secretary, these items are called "Escrow Items" and the sums paid to Lender are called "Escrow Funds." Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U.5.C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be amended from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements before the Borrower's payments are available in the account may not be based on amounts due for the mortgage insurance premium. If the amounts held by Lender for Escrow Items exceed the amounts germitted to be held by RESPA, Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of fuuds held by Lender at airy time are not sufficient to pay the Escrow Items when due, Lender ma.y notify the Borrower and require Borrower to make up the shortage as permitted by RESPA. The Escrow Funds aze pledged as additional security for all sums secured by this 5ecurity Instrument. If Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for all installment items (a), (b) 3IId (C) and 3IIy moltgage inc�iransP premium installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediatelyprior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance remaining for all installments for items (a), (b), and (c). 3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows: First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary instead of the monthly mortgage insurance premium; Second, to auy taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazazd �nc�*ansp premiums, as required; Third, to interest due under the Note; Fourth, to amortization of the principal of the Note; and Fifth, to la.te charges due under the Note. 4. Fire, Flood and Other Fiezard Insurence. Borrower shall insure all improvements on the Progeriy, whether now in e�stence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insurance. �This insurance shall be maintained in the amounts and for the geriods that Lender requires. Borrower shall also insure all improvements on the Properly, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not ma.de prompfly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss direcfly to Lender, instead of to Borrower and to Lender jointly. All or any part of the inc�„�n� proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinque� amounts applied in the order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged Property Any application of the proceeds to the principal shall not extend or postpone the due date of the FHA Deed of Trust-NE 4188 VMP � VMP4RINE) (11061.00 Wolters Kluwar Firmrxial Sarvic� Paga 3 of 10