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2oioo5~4s
<br />CAS>; #: rtE3212894$86703
<br />DOG ID #: 00022127199107010
<br />w amortization of the principal of the Note; and
<br />if - w late charges due under the~Note.
<br />4. Fire, Flood and Qther Hazard Insurance. Borrower shall insure all improvements on the Property, whether
<br />now in existence or ,subsequently erected, against any hazards, casualties, and contingencies, including fire, for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and far the periods that Lender requires.
<br />Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against
<br />lass by floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender.
<br />The insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in
<br />a form acceptable ta, 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 enmpany concerned is hereby authorized and directed to make payment for
<br />such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may
<br />be applied by Lender, at its option, ei,'ther (a) to the reduction of the indebtedness under the Nvte and this Security
<br />lnstrument, first to any delinquent amounts applied in the order in paragraph 3, and then W prepayment of principal, or (b)
<br />to the restoration or repair of the damaged Property. Any application of the proceeds tv the principal shall not extend ar
<br />postpone the due date of the monthly payments which are referred to in paragraph 2, or change the amount of such
<br />payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note
<br />and this Security Instrument shall be paid rd 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 interest of Harrower 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 ApplicatTion;
<br />Leaseholds. Borrower .shall occupy, establish, and use the Property as Borrower's principal residence within sixty days
<br />after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall
<br />continue to occupy the Property as Bort~ower's principal residence for at least one year after the date of occupancy, unless
<br />Lenders determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist
<br />which are beyond Borrower's control. I~rOrrower shall notify Lender of any extenuating circumstances. Borrower shall not
<br />commit waste or destroy, damage ar substantially change the Property ar allow the Priaperty to deteriorate, reasonable
<br />wear and tear excepted. Lender may inspect the Property if the Property is vacant ar abandoned or the lean is in default.
<br />Lender may take reasonable action to protect and preserve such vacant or abandoned Property. Bot~rower shall also be in
<br />default if Borrower, during the loan application process, gave materially false or inaccurate information ar statements to
<br />Lender (or failed to provide Lender with any material informatinn) in connection with the loan evidenced by the Nnte,
<br />including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If
<br />this Security Instrument is on a leasehold, Harrower shall comply with the provisions of the lease. If Borrower acquires
<br />fee title to the Property, the leasehold acid fee title shall not be merged unless Lender agrees to the merger in writing.
<br />6. Condemnation. The proceeds of any award or claim for datnages, direct or consequential, in connection with
<br />any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby
<br />assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the
<br />Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Nate
<br />and this Security Instrument, first to any delinquent amounts applied in the order provided in paragraph 3, and then to
<br />prepayment of principal. Any application of the proceeds to the principal shall not extend or 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 proceeds
<br />over an amount required w pay all puts"`landing indebtedness under the Note and this Security Inswrnent shall be paid tv
<br />the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Burrower shall pay all
<br />governmental or municipal charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these
<br />obligations on time directly to the entity which is owed the payment. If failure to pay would. adversely affect Lender's
<br />interest in the Property, upon Lender request Borrower shall promptly furnish to Lender receipts evidencing these
<br />payments. ,
<br />If Burrower fails to make these ~ayrnents or the payments required by paragraph 2, or fails to perform any other
<br />covenants and agreements contained i~ this Security Instrument, nr there is a legal proceeding that may significantly
<br />affect Lender's rights in the Property ~ (such as a proceeding in bankruptcy, far condemnation or to enforce laws or
<br />regulations), then Lender may da and pay whatever is necessary to protect the value of the Property and Lender's rights in
<br />the Property, including payment of taxes, hazard insurance and other items mentioned in paragraph 2.
<br />Any amounts disbursed by Lender under this paragraph shall become an additional debt of Borrower and be secured
<br />by this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the
<br />option of Lender, shall be immediately due and payable.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the'obligation secured by the lien in a manner acceptable to Lender; (b) contests in
<br />good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />operate to prevent the enforcement of;the lien; ar (c) secures from the holder of the lien an agreement satisfactory to
<br />Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a
<br />lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien.
<br />Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
<br />8. Fees. Lender may collect fees and charges authorized by the Secretary.
<br />9. Grounds for Acceleration ctf Debt.
<br />(a) Default. Lender may, except as limited by regulations issued by the Secretary, in the case of payment
<br />defaults, require immediate payment in full of all sums secured by this Security Instrument if:
<br />(i) Borrower defaults. by failing w pay in full any monthly payment required by this Security
<br />Instnrment prior to or on the due date of the next monthly payment, or
<br />(ii) Borrower defaults,by failing, for a period of thirty days, to perform any other obligations contained
<br />in this Security Instrurn'ent.
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<br />MERS FHA Deed of Trust-NE iS
<br />2004N-N~ (11/07) Page 3 of 6
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