|
20�104�09
<br />items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to pay to the
<br />Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure sale of the
<br />Property or its acquisition by Lender, Borrower's account shall be credited with any balance remaining for all installments for
<br />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 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 undee the Note;
<br />FOURTH, to amortization of the principal of the Note; and
<br />FI FTH, to late chazges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower 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 requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender reyuires. Borrower shall also
<br />insure all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent
<br />reyuired by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any
<br />renewals shall be held by Lender and shall 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 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, and then to prepayment of principal, or (b) to the restoration or repair of
<br />the damaged Property. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly
<br />payments which are referred to in paragraph 2, or change the amount of such payments. Any excess insurance proceeds over
<br />an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity
<br />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 Borrower 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 Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the
<br />execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy
<br />the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender deterrr►ines that
<br />requirement will cause undue hardship for Boreower, or unless extenuating circumstances exist which are beyond Bonower's
<br />control. Boreower shall notify Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the
<br />Property if the Property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve
<br />such vacant oe abandoned Property. Borrower shall also be in default if Bonower, during the loan application process, gave
<br />materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in
<br />connection with the loan evidenced by the Note, including, but not limited to, representations conceming Borrower's occupancy
<br />of the Properly as a principal residence. [f this Security Instrument is on a leasehold, Borrower shall comply with the provisions
<br />of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to
<br />the merger in writing.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned
<br />and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
<br />Security [nsteument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br />Instrument, first to any delinquent amounts applied in the order provided in paragraph 3, and then to prepayment of principal.
<br />Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly payments, which are
<br />referred to in paragraph 2, or change the amount of such payments. Any excess 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 thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental
<br />or municipal charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these obligations on time
<br />NEBRASKA FHA DEED OF TRUST
<br />NEBRASKA-MERS
<br />ITEM 2696L3 (101509)
<br />0000302560
<br />6/96
<br />GreatDocs`�
<br />(Page 3 of 8)
<br />321-3000611-703
<br />
|