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201002342
<br />Lender may, at any time, collect and hold amounts far Escrow Items in an aggregate amount not to exceed the maximum
<br />amount that may be required For Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12
<br />[J,S.C. Section 2601 et seq. and implementing regulatipns, 24 CFR Part 3500, as they may be amended from time to time
<br />("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements before
<br />the Borrower's payments arc available in the account may not be based an amounts due far the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess funds as required by RESPA. if the amounts of funds held by Lender at any time are not
<br />sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the shortage as
<br />permitted by RESPA.
<br />The Escrow Funds are pledged as additional security far all sums secured by this Security [nstrument. if Borrower
<br />tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for all
<br />installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to
<br />pay to the Secretary, and Lender shall promptly refund any excess funds to Harrower. Immediately prior to a foreclosure sale
<br />of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance remaining far all
<br />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 />Fist to the mortgage insurance premium to be paid by Lender to the Secretary ar to the monthly charge by the
<br />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 hazard
<br />insurance premiums, as required;
<br />Third. to interest due under the Note;
<br />Fourth. to amortixatian of the principal of the Note; and
<br />Fifth to late charges due under the Nate.
<br />4. Fire, Flood and Other Ha2ard Insurance. Harrower 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
<br />requires insurance. This insurartcc shall be maintained in the amounts and far the periods that Lender requires, Borrower shall
<br />also insure all improvements on the property, whether now in existence or subsequently erected, against loss by floods to the
<br />extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies
<br />and any renewals shall be held by Lender and shall include loss payable clauses in favor nf, and in a form acceptable ta,
<br />Lender.
<br />In the event of loss; Borrower shall give Lender immediate notice by mail, Lender may make proof of loss if not made
<br />promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss
<br />directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied by
<br />Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to any
<br />delinquent amounts applied in the order in paragraph 3, attd titers to prepayment of principal, or (b) to the restoration or repair
<br />of the damaged Property. Any application of the proceeds to the principal shall oat extend pr postpone the due date of the
<br />monthly payments which are referred to in paragraph 2, or change the amount of such payments. Any excess insurance
<br />proceeds over an amount required to pay all outstanding indebtedness under the Nate and this Security Instrument shall be
<br />paid to the entity legally entitled thereto.
<br />[n the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the
<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. 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
<br />of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the
<br />Property as Borrower's principal residence far at least one year after the date of occupancy, unless Lender determines that
<br />requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's
<br />control. Borrower shall notify Lender of any extenuating circumstances.
<br />FHA Deed oSTrua4NE
<br />VMP A
<br />Wottera KIUWer FManGel Services
<br />AAS-NE4
<br />A 4186
<br />VMp4R(NE) (0888.80
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