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201306822
<br /> CASE #: NE3213253167703 DOC ID #: ********277408013
<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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