200903477 - Laserfiche WebLink

Browse

200903477 BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered. except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands. subject to any encumbrances of record. THIS SECURI1Y INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constiNte a uniform security instrument covering real property. Borrower and Lender covenant and agree as follows: UNIFORM COVENANTS. I. Payment of Principal, Interest and Late Cbarge. Borrower shall pay when due the principal of, and interest on. the debt evidenced by the Note and late chatges due under the Note. 2. Monthly Payment of Taxes, Insurance, and Otber Charies. Borrower shall include in each monthly payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and special assessments levied or to be levied against the Property. (b) leasehold payments or ground rents on the Property. and (c) premiums for insurancc required under Patagraph 4. In any year in which the Lender must pay a mongage insurance premium to the Secretary of Housing and Urban Development ("Secretary"). or in any )'l:at in which such premium would have been required if Lender still held the Security Instrument, each monthly payment shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary. in a reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary. these items are called "Escrow Items" and the sums paid to Lender are called "Escrow Funds." Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. ~ 2601 ~ and implementing regulations, 24 CFR Part 3500, as they may be amended from time to time ("RESPA"), except that the cushion or reserve pennitted 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 pennilled 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 permilled by RESP A. The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If Borrower tenders to Lender 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 Pr~erty or its acquisition by Lender, Borrower's account shall be credited with any balance remaining for alllllstallments for items (a), (b), and (c). 3. ApplicatioD of Payments. All payments under Patagraphs I and 2 shall be applied by Lender as follows: First, to the mongage insurance premium to be paid by Lender 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 tbe Note; and FI flh, to late charaes due under the Note, 4. Fire, Flood aDd Other Huard Insurance. Borrower shall insure all improvements on the Property. whether now in existence or subsequently erected. al!ainst 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 Proputy. whether now in existence or subsequently erected. against loss by floods to the extent required by the Secretary. AIl insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss 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 if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such foss dtm:tly to Lender. Instead of to Borrower and 10 LeDlkrjointly. All or any part of the tnsurance proceeds maybe 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 in the order in Paragraph 3, and then to prepayment of principaL or (b) to the restoration or repair of the damaged Properly. Any application of the proceeds to the prmcipal 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 to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto, In the event of foreclosure of this Security Instrument or other transler of title to the Propeny that extiniUishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. !i. Occupancy, PreservatlOll, l\lalntellance and Protection of the Propert)'; Borrower's Loan Appllcatloll; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal resIdence 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 BorrO\ver. or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify Lender ofany extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Properly to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if 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, ~ave materially false or inaccurate information or statements to Lender (or failed to provide Lender WIth any material infonnation) in connection with the loan evidenced by the Note. including, but not limited 10, representations concerning Borrower's occupancy of tbe Property as a principal residence. If this Security Instrument is on a leasehold, filA NcbnIka Deed ofT.... MERS 16Uli_CVtW07) 42OlU81 P.SC2of5 OOTO((lll2Id0<9)