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<br />'.'
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<br />200601483
<br />
<br />vI WBCD LOAN # 500982523
<br />
<br />which has the address of 2003 East wildwood Drive, Grand Island
<br />
<br />(Street, City],
<br />
<br />Nebraska
<br />
<br />68801
<br />[Zip Code]
<br />
<br />("Property Address");
<br />
<br />TOGETHER WITH all the improvements now or hereafter erected on the property , and all easements, appurtenances and fixtures
<br />now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instmment. All of the
<br />foregoing is referred to in this Security Instmment as the "Property." Borrower understands and agrees that MERS holds only legal
<br />ti tle to the interests granted by Borrowed n this Security Instmment, but, if necessary to comply with law or custom, MERS (as nominee
<br />for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to,
<br />the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and
<br />canceling this Security Instmment.
<br />
<br />BORROWER COVENANTS that Borrower is lawfully seized ofthe estate hereby conveyed and has the right to grant and convey
<br />the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally
<br />the title to the Property against all claims and demands, subject to any encumbrances of record.
<br />
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited
<br />variations by jurisdiction to constitute a uniform security instmment covering real property.
<br />
<br />Borrower and Lender covenant and agree as follows:
<br />
<br />UNIFORM COVENANTS.
<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and interest on, the debt
<br />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 payment, together
<br />with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxcs and special assessments levied or to
<br />be levied against the Property, (b) leasehold payments or ground rents on the Property, and (c) premiums for insurance required under
<br />paragraph 4. In any year in which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban
<br />Development ("Secrctary"), or in any year in which such premium would havc been required if Lender still held the Security
<br />Instrument, each monthly payment shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender
<br />to the Secretary, or (ii) a monthly charge instead of a mortgage insurance premium ifthis Security Instmment is held by the Secretary,
<br />in a reasonable amount to be determined by thc Secretary. Except for the monthly charge by the Secretary, these items are called
<br />"Escrow Items" and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to cxceed the maximum amount
<br />that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U. S. C. Section 2601
<br />et seq. and implementing regulations, 24 CFR Part 3500, as they may be amended from time to time ("RESPA"), except that the
<br />cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements before the Borrower's paylllents are
<br />available in the account may 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 RESP A, Lender shall account to
<br />Borrower for the excess funds as required by RESP A. If the amounts of funds held by Lender at any time is not sufficient to pay the
<br />Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the shortage as permitted by RESP A.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instmment. If Borrower tenders to
<br />Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for all installment items
<br />(a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to pay to the Secretary, and
<br />Lender shall promptly reCund any excess funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition
<br />by Lender, Borrower's 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 follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary instead
<br />of the monthly mortgage insurance premium;
<br />~, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to amortization oCthe 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, whether now in
<br />existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure
<br />all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by
<br />the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall be
<br />held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event ofloss, Borrower shall give Lender immediate notice by mail. Lender may make proof ofloss if not made promptly
<br />by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to Lender,
<br />instead of to Borrowcr and to Lender jointly. All or any part ofthe insurance proceeds may be applied by Lender, at its option, either
<br />(a) to the reduction of the 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 pri ncipal, or (b) to the restoration orrepair ofthe damaged Property. Any application
<br />ofthe proceeds to the principal shall not extend or postpone the due date ofthe monthly payments which are referred to in paragraph
<br />2, or change the amount of such paymen ts. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness
<br />under the Note and this Security Instmment shall be paid to the entity legally entitled thereto.
<br />In the event offoreclosure of this Security Instmment or other transfer of title to the Property that extinguishes the indebtedness,
<br />all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution ofthis
<br />Security Instmment (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the Property as
<br />Borrower's principal residence 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 control. Borrower shall notify
<br />Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property
<br />or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant or
<br />abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vac~nt ?r abando~d prope~.\
<br />In1t1alsl W 't"
<br />FHA Nebraska Deed of Trust - 4/96 Page 2 of 5 NEEFHADE
<br />02-16-2006 17112
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