201107513 - Laserfiche WebLink

Browse

201107513 mortgage insurance premium to be paid by Lender to the Secretary, or (u) a monthly charge instead of a mortgage insurance premium if thia Security Instrument is held by the Secretary, in a reasonable amouut to be determined by the 5ecretary. Except for the monthly charge by the Secretary, these items are called "Escrow Items" and the sums paid to Lender are called "Escrow Funds." Lender may, at any time, collect and hold amounts for Bscrow Items in an aggregate amount not to exceed the maxiznum amount that may be required for Bonower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. Section 2601 et seq. and implementingregulations, 24 CFR Part 3500, as they may be amended from tune to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements before the Borrower's payments are available in the account may not be based on amounts due for the mortgage insurance premium. If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RE5PA, Lender shall accouut to Bonower for the excess funds as required by RESPA. If the amounts of fiands held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Bonower and require Borrower to make up the shortage as permitted by RESPA. The Escrow Funds are pledged as additional security for all sums secured by this Security Ins�irumei►t• If Borrower tenders to Lender the full payment of all such sutns, Bonower's account shall be credited with the balanceremaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refiwd any excess fitnds to Bonower. Immediatelyprior to a foreclosure sale of the Property or its acquisitionby Lender, Borrower's account shall be credited with any balanceremaiuing for all installments for items (a), (b), and (c). 3. Applicationof Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows: First, to the mortgage �neurance premiwn to be paid by Lender to the Secretary or to the monthly charge by the Secretary instead of the monthly mortgage insurance premium; Secon to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance premiums, as required; Third, to interest due under the Note; Fourth, to amortization of the principal of the Note; and Fifth, to late charges due under the Note. 4. Fire, Floodand Other Hazard Insurance.Borrower shall insure all improvements an the Property, whether now in existence or subsequently erected, agaiust any hazards, casualties, and contingencies, including fire, for which Lender requires insurance. This �nc��r�nce shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also in.sure all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All insutance shall be carried with companies approved by Lender. The ine�._rance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable ta, Lender. In the event of loss, Bonower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied by Lender, at its option, either {a) to the reduction of the indebtedness under the Note and this Secutity Instrument, first to any delinquent anaounts applied in the order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged Property Any application of the proceeds to the principal shall not extend or postpone the due date of the FHA Deed of Trust-NE VMP � VMP4R(NE) (1105).00 Woltera Kluwer Financial Services Page 3 of 10