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201302504
<br />CASE #: NE3213205336703 DOC ID #: * * * * * ** *328002013
<br />Lender, Borrower's account shall be credited with any balance remaining for all installments for items (a),
<br />(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 insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other
<br />hazard 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 Insurance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against any hazards, casualties, and contingencies,
<br />including fire, for which Lender requires insurance. This insurance shall be maintained in the amounts and
<br />for the periods that Lender requires. Borrower shall also insure all improvements on the Property, whether
<br />now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All
<br />insurance shall be carried with companies approved by Lender. The insurance policies and any renewals
<br />shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to,
<br />Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss
<br />if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed
<br />to make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any
<br />part of the insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the
<br />indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied in the
<br />order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged
<br />Property. Any application of the proceeds to the principal shall not extend or postpone the due date of the
<br />monthly payments which are referred to in paragraph 2, or change the amount of such payments. Any
<br />excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and
<br />this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that
<br />extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force
<br />shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br />residence within sixty days after the execution of this Security instrument (or within sixty days of a later
<br />sale or transfer of the Property) and shall continue to occupy the Property as Borrower's principal residence
<br />for at least one year after the date of occupancy, unless Lender determines that requirement will cause
<br />undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's
<br />control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not commit waste
<br />or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable
<br />wear and tear excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan
<br />is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned Property.
<br />Borrower shall also be in default if Borrower, during the loan application process, gave materially false or
<br />inaccurate information or statements to Lender (or failed to provide Lender with any material information)
<br />in connection with the loan evidenced by the Note, including, but not limited to, representations concerning
<br />Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold,
<br />MERS FHA Deed of Trust -NE
<br />1004M -NE (12/11) Page 4 of 10
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