201107813 - Laserfiche WebLink

Browse

�0�107�� mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage insurance premium if this Security In.gtrument is held by the Secretary, in a reasonable amount to be determined by the Secretary. 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 Escrow Items in an aggregate amount not to exceed the maxi.mum amount that may be required for Borrower's escrow account under the Real Estate 5ettlement Ptocedures Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be amended from time to time ("RESPA"), except that the cushion or reserve petmitted by RESPA for unan4icipated disbursements or disbursements before the Bonower's payments are available in the account may not be based on amounts due for the mortgage insutance premitun. If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall account to Bortower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Bortower and require Bortower to make up the shortage as permitted by RESPA. The Escrow Funds are pledged as additional security for all sums secured by this Security Inshvment. If Bonower tenders to Lender the full payment of all such sume, Borrower's account shall be credited with the balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that I,ender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Bonower's account shall be credited with any balanceremaining for all installments for items (a), (b), and (c). 3. Applicationof Payments All payments under paragaphs 1 and 2 shall be applied by Lender as follows: First, to 4he mortgage insurance premium 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 'ansurance premiums, as required; Third, to interest due under the Note; Foutth, to amortization of the principal of the Note; and Fifth, 40 late charges due twder the Note. 4. Fire, Floodand Other Hazard Insurance .Borrower shall insure all improvements on the Property whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires ine�rance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Bonower shall also insure all improvements on the Property, whether now in existence or subsequently erected, agaiust loss by floods to the extent required by the Secretary. All insnr�nce shall be cartied with companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly by Bonower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to Lender, instead of to Bonower 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 Security Instn�ment, first to any delinquent amounts 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 D�eed of Trust-NE �� p4R(NE) (1105 � Wolters Kluwer Financial Sarvicea Pege 3 of 10 �