200209576 - Laserfiche WebLink

Browse

200209576 Lender may, at any lime, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the maximum amount that may be required for Borrowers escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. § 2601 at seq, and implementing regulations, 24 CFR Pan 3500, as they may be amended ham 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 permitted to be held by RESPA, Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the shortage as permitted by RESPA. The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If Borrower tenders to Lander the full payment of all such sums, Borrower's account shall be credited with the balance remaining for all Installment items (a), (b), and (c) and any mortgage Insurance premium installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior 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 Lander to the Secretary or to the monthly charge by the Secretary instead of the monthly mortgage Insurance premium; Second, to any taxes, special assessments, leasehold payments or ground rents. and fire, flood and other hazard insurance premiums, as required; Third, to Interest due under the Note; Fourth, to amortization of the principal of the Note; and Fifth, to lots charges due under the Note. 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now In existence 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 periods that Lender requires. Borrower shall also insure all Improvements on the Property, whether now in existence or subsequently erected, against loss by flo0ds to the extent required by the Secretary. All insurance shall be carried with companies approved by Lander. The insurance policies and any renewals shall be held by Lender and shall include toss 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 H not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such lass directly to Lander, instead of to Borrower and to Lander jointly. All or any pan of the insurance 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 delinquent amounts applied n the order in Paragraph 3, and then to prepayment of principal, or (b) to the restoration or repay of the damaged Property. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance proceeds over an amount required t0 pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally emitted thereto. In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. 5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal msidenge within sixty, days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable wear and leer excepted. Lender may inspect the Property a the Property Is vacant or abandoned or the loan Is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned Property. Borrower shall also be In default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lander (or failed to provide Lender with any material Information) In connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument Is on a leasehold, Borrower shall comply with the provisions of the lease. If BOnowar acquires fee title to the Properly, the leasehold and fee title shall not be merged unless Lander agrees to the merger In writing. 6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance In place of condemnation, are hereby assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Nate and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend or postpone the tlue date of the monthly payments, which are referred to in Paragraph 2, or change the amount of such payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto. 7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or municipal charges, fines and Impositions that are not included in Paragraph 2. Borrower shall pay these obfgations on time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest In the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments. If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other covenants and agreements contained In this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights In the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lander may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, Including payment of taxes, hazard insurance and other items mentioned in Paragraph 2. r5B1¢LMa (sNin en 11 Page 4 or , CV[-