|
� 20120�564
<br />from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements
<br />or disbursements before the Borrower's payments are available in the account may not be based on amounts due for
<br />the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Bonower for the excess funds as required by RESPA. If the amounts of funds 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 malce
<br />up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If
<br />Bonower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Bonower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Bonower's account shall be
<br />credited with any balance remaining for all installments for items (a), (b), and (c).
<br />3. Application of Payments. 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 monthly mortgage insiai�ance premium;
<br />SECOND, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />THIRD, to interest due under the Note;
<br />FOURTH, to amortization of the principal of the Note; and
<br />FIFTH, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insnrance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire,
<br />for which Lender requires insurance. 1'his insurance shall be maintained in the amounts and for the periods that
<br />Lender requires. Bonower shall also insure all improvements on the Property, whether now in existence or
<br />subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with
<br />companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Bonower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made promptly by Bonower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss directly to Lender, instead of to Bonower and to Lender jointly. All or any pazt of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the reducrion of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applied in the order in pazagraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any applicarion of the proceeds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br />change the amount of such payments. Any excess insurance proceeds over an azr►ount required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be paid to the entity legally enritled thereto.
<br />In the event of foreclosure of this Se�urity Instrument qt other transfer of title to the Property that extinguishes the
<br />indebtedness, all right, tide and interest of Borrower in and to insurance polici�s in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Lease6olds. Bonower shall occupy, establish, and use the Properly as Borrower's principal residence within sixty
<br />days after the execurion of this Security Instrument (or within sixty days of a later sale or transfer of the Property)
<br />and shall continue to occupy the Property as Bonower's principal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstances exist wluch are beyond Bonower's control. Borrower shall notify Lender of any extenuating
<br />circumstances. Bonower shall not commit waste or destroy, damage or substantially change the Property or allow
<br />the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is
<br />vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant
<br />or abandoned Property. Bonower shall also be in default if Bonower, during the loan applicarion process, gave
<br />FHA NEBRASKA DEED OF TRUST - MERS p�e���
<br />NEDOTZ.FHA 07/03/12 Page 3 of 9 www.docmaglc.mm
<br />,.',�°
<br />��
<br />
|