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<br /> 201004323
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<br /> and sell the Property; and to take any action required of Lender including, but not limited to, releasing or canceling
<br /> this Security Instrument,
<br /> BORROWER COVENAN=TS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
<br /> grant and convey the Property and.that 4he Property is unencumbered, except for encumbrances of record. Borrower
<br /> warrants and will defezad, generally the title to the Property against all claims and demands, subject to any
<br /> encumbrances of record'.
<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with
<br /> limited variations by jurisdiction to constitute a uniforan security instrument covering real property.
<br /> UNIFORM: COVENANTS. Borrower and Lender covenant, and agree as follows:
<br /> 1. Payment of Principal, Interest and Late. Charge. Borrower shall pay when due the principal of, and
<br /> interest on, the debt .evidenced by the Note and late ..charges due .under the Note.
<br /> 2. Monthly Payment of Taxes, Insurance, and.:Othcr Charges. Borrower shall include in each monthly
<br /> payment, together with .the.;principal and interest as.set.forth in the Note and..any late charges, a sum for (a) taxes and
<br /> special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the
<br /> Property, and (c) premiums::for insurance required under paragraph 4. In any year in, which the Lender must pay a
<br /> mortgage insurance premium. to the Secretary of Housing. and Urban Development ("Secretary"), or in any year in
<br /> which such premium would have been required if 'Lender still- held the Security instrument, each monthly payment
<br /> shall also include either.: (i): A.sum .for the annual mortgage insurance premium to..be.paid by Lender to the Secretary,
<br /> or (ii) a monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary,
<br /> in a.reasonable amount to be determined: by the. Secretary. Except :for:the monthly charge by the Secretary, these items
<br /> are called. "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 exceed the
<br /> maximum, amount. that may be,;required.for Borrower's escrow account -under the Real Estate Settlement Procedures
<br /> Act of 1974, 12 U.S.:C. §2601 gLEa..and;implementing regulations, 24 CFR Part 3500, as they may be amended
<br /> from time to time .(":RESPA" except:that.the cushion or reserve permitted by RESPA for unanticipated disbursements
<br /> or disbursements before the Borrower's payments are. available in. the account may not be based on amounts due for
<br /> the mortgage insurance premium..
<br /> If the.amounts held:by:Lender:for Escrow items.exceedthe amounts permitted. to be held by RESPA, Lender shall
<br /> account to Borrower for the.,excess :funds as required 'by.R.ESPA. If the amounts of funds held by Lender at any time
<br /> are not.sufficient to pay the:'Escrow Items when due, Lender may notify the. Borrower and require Borrower to make
<br /> up the shortage as permitted. by RESPA.
<br /> The Escrow 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 rein aiting: 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
<br /> the Secretary instead of the monthly .mortgage. insurance premium;.
<br /> SiCON;D, 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 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 -hazarrds, ,casualties,.:and. contingencies, including fire,
<br /> for which Lender requires insurance. This insurance 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 with
<br /> companies approved by Lender. The insurance .policies .and any renewals shall be held by Lender and shall include
<br /> 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 if not
<br /> made.promptly by Borrower. Each insurance .company concerned,is-hereby-authorized and directed to make payment
<br /> for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br /> proceeds may be applied by Lender, at its option, either (a)..to the reduction of the. indebtedness under the Note and
<br /> this Secur=ity Instrument, first :to; any delinquent amounts applied iu the order n. paragraph:3, and then to prepayment
<br /> of principal, or (b) to the-.,restoration or repair of the damaged Property. Any application of the proceeds to the
<br /> principal shall. not extend.:or .postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br /> change the amount of such.payments. Any excess. insurance proceeds over an amount required to pay all outstanding
<br /> indebtedness under the Note and` this Security Instrument shall be paid. to the .entity legally entitled thereto.
<br /> In 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 intereNt..of Borrower in. and to insurance policies in force :shall pass to the purchaser.
<br /> 5. Occupancy, Preservation, Maintenance and Protcction,.of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower:shall :occupy, establish, and use the. Property as Borrower's ;principal residence within sixty
<br /> days after the execution: of`this Security Instrument (or within -sixty days of a later sale or transfer of the Property)
<br /> FHA, NEBRASKA. DEED OF TRUST -.MERS DocMaglc 9MMVMM 800-64e-1362
<br /> NEDOTZ:FHA. 11401/08 Page Z of 7 www.dbcmagic.com
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