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201401 733
<br />LOAN ID # 0478056542
<br />TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements,
<br />appurtenances and fixtures now or hereafter a part of the property. Ml replacements and additions shall also be
<br />covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the
<br />"Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by
<br />Borrower in this Security Instrument; but, if neeessary to comply with law or custom, MFRS, (as nominee for
<br />Lender and Lender's successors and assigns), has the right: to exercise any or all of those interests, including,
<br />but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender
<br />including, but not limited to, releasing or canceling this Security Instnunent.
<br />BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the
<br />right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of
<br />record. Borrower warrants and will defend generally the title to the Property against all claims and demands,
<br />subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non - uniform covenants
<br />with limited variations by jurisdiction to constitute a uniform security instrument covering real property.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows;
<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and
<br />interest on, the debt evidenced by the Note and late charges due under the Note.
<br />2. Monthly Payment of Taxes, Insurance and Other Charges. Borrower shall include in each monthly
<br />payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a)
<br />taxes and special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents
<br />on the Property, and (c) premiums for insurance required under paragraph 4. In any year in which the Lender
<br />must pay a mortgage insurance premium to the Secretary of Housing and Urban Development ( "Secretary"), or
<br />in any year in which such premium would have been required if Lender still held the Security Instrument, each
<br />monthly payment shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by
<br />Lender to the Secretary, or (ii) a monthly charge instead of a mortgage insurance premium if this Security
<br />Instrument is held by the Secretary, in a reasonable amount to be determined by the Secretary. Except for the
<br />monthly charge by the Secretary, these items are called "Escrow Items" and the soma paid to Lender are called
<br />"Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed
<br />the maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement
<br />Procedures Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 12 CFR Part 1024, as
<br />they may be amended from time to time ( "RESPA "), except that the cushion or reserve permitted by RESPA for
<br />unanticipated disbursements or disbursements before the Borrower's payments are available in the account may
<br />not be based on amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA,
<br />Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by
<br />Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and
<br />require Borrower to make 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 />Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the
<br />balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment
<br />that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds
<br />to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's
<br />account shall be 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
<br />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, including
<br />fire, for which Lender requires insurance. This insurance sba11 be maintained in the amounts and for the periods
<br />that Lender requires. Borrower 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
<br />carried with companies approved by Lender, The insurance policies and any renewals shall be held by Lender
<br />and shall include loss payable clauses in favor of, and in a form acceptable to, 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 to
<br />make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of
<br />the insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness
<br />under the Note and this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3,
<br />and then to prepayment of principal, or (b) to the restoration or repair of the damaged Property. Any application
<br />of the proceeds to the principal shall not extend or postpone the due date of the monthly payments which are �-
<br />11111 74.01414 K `v
<br />FHA Nebrgek6 bead of Trust with MERS - 4/96 41 Amended 0006
<br />NEPMM2 • 07022013 te=e 2 0 6 www.ProCtore.com
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