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HomeMy WebLinkAbout2590In the case of the failure of the said partfes of the second part to make any of the payments or any part thereof or to perform any of the covenants and conditions on their part hereby made and entered into under the terms of this Agreement, this Agreement shall, at the option of the parties of the first part, be forfeited and terminated, and the parties of the second part shall forfeit all payments made by them on this Aqreement; and such payments shall be retained by the said parties of the first part in full satisfaction a~d liquida- tion of all damages by them sustained, and the said parties of the first part shall have the right to reenter and take possession of~ the premises aforesaid without being liable for any action therefore; and it is further agreed that the parties of the first part, in the event of default hereunder,~shall be entitled to institute legal proceedinqs to foreclose any right, title or interest of the parties of the second part in or to the above-described real property and in the event thereof, shall be entitled to collect their reasonable , attorney's fees and costs relative thereto. ' The parties acknowledge,that the above-described property is subject to a lien in favor of Amerifirst Federal Savings and Loan Association (hereinafter referred to as Amerifirst), who owns and holds a first mortgage lien on said property. With respect to the principal indebtedness owed to Amerifirst, parties of the first part hereby covenant and agree that such indebtedness has been validly incurred and the outstanding principal balance owing the=eunder is . $ 60.p00.00 . ' Parties of the second part agree to comply with all of the terms and conditions of the said mortgage held by Amerifirst other than with respect to payment of principal and interest due thereunder. In the event the parties of the second part shall fail to.so comply with all of the terms, provisions and conditions of Amerifirst's mortgage so as to result in a default thereunder (other than with respect to the payments of principal and interest due thereunder after this date) such failure on the part of the parties of the second part shall constitute a default under the terms of this Agreement and shall entitle parties of the second part, at their option to exercise any and all rights and remedies available to them as set forth herein, Parties of the first part agree to pay to Amerifirst the afore- said•unpaid principal balance owing under the mortgage held by Amerifirst, together with all interest thereon accruing from this date and such payments shall be made by the parties of the first part before the expiration of the applicable grace periods provided for such payment as contained in Amerifirst's mortgage. Notwithstanding the foregoing, the obligation of the parties of the first part to make such payments shall be conditioned upon parties of the second part not otherwise being in default hereunder. It is specifically understood and agreed that the parties of the second part are not assuminq any of the financial obligations owing under Amerifirst's mortqage and the indebtedness secured thereby. The parties, and each of them agree, that neither shall make any prepayments of principal or interest to Amerifirst under its aforesaid obligation and shall not enter into any agreement with Amerifirst modifying or amending any of the terms, covenants or provisions of its said mortgaqe, without the prior written consent of the other party hereto. In the event the unpaid-principal balance of Amerifirst's mortgage is reduced by applying insurance proceeds or condemnation proceeds in reduction thereof or by prepayments by -2- 6~'~K3~7 ~~t,~2~i8`3 . . j ~~ ~ .~ ~:::~