|
200909804
<br />may be amended from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA far
<br />unanticipated disbursements or disbursements before the Borrower's payments are available in the account may not
<br />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 R1/SPA,
<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 hscrow 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 balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be
<br />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 Z shall be applied by Lender as
<br />follows: -
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary ar 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 fire,
<br />for which Lender requires insurance. This insurancc shall be maintained in the amounts and for the periods that
<br />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 carried
<br />with companies approved by Lender. The insurance policies and any renewals shall be held by Lender and sha11
<br />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 insurancc company concerned is hereby authorized and directed to make
<br />payment far such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the
<br />insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the
<br />Note and this Security Instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to
<br />prepayment of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds
<br />to the principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph
<br />2, or change the amount of such payments. Any excess insurance proceeds over an amount required to pay all
<br />outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled
<br />thereto.
<br />lu 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 shall pass
<br />to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leasehplds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
<br />within sixty days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the
<br />Property) and shall continue to occupy the Property as Borrower's principal residence for at least one year after the
<br />date of occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless
<br />FHA Nebraska Deed of Trust with MERS - 4/96 Amended 7/04
<br />4N(NE) (0407).01 Page 3 of 10 Initials: ~. l _ /.
<br />
|