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HomeMy WebLinkAbout0445 t:arh nwnthly installmem t~or items ~a), (b), and shall equal one-tv?•elfth of the annual amounts, as reasonabl~- estima~ed t•~ Lrnder, plus ar~ amount sufficient to maintain an additional balance o` not more than c~ne-sixth of the es[imaced amounts. 1 he tull annual anzount for each item shall be arcumulated b~~ Lender within a period ending one month before an item w•ould h«ume delinyuent. Lender shall hold the amounts collected in trust to pay~ items (a), (b), and (c) beFore the~~ become delinquent. If at any time the total of the parments held by Lender for items (a), (b), and (cl, together with the future monthly pa~~ments tur su~h items pa~~able to Lender prior to the due dates of such items, exceeds by more than one-sixth the estimated amount ~~i payments required to pa~~ such items when due, and if payments on the Note are current, then ~ender shall either refund ihe exress over one-sixth of the estimated ~ayments or credit the excess over one-sixth of the estimated payments to subsequent ~a~ments b~~ BorroH~er, at the option of Borrower. If the total of the payments rnade by Borrower for item (a), (b), or (c) i~ insufficient to pa}• the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency un or before the date the item becomes due. As used in this Securit~• Instrument, "Secretarl•" means the Secretary of Housing and Urban Development or his or her ~ic,ignee. tilost Security Instruments insured by the Secretar}~ are insured under programs which require advance payment of ~t~e entire mortgage insurance premium. If this Security Instrument is or w~as insured under a program which did not require ad~ance payment of the entire mongage insurance premium, then each monthly payment shall also include either. (i) an installment ~ of the annual mortgage insurance premium to be paid by~ Lender ro the Secretary, or (ii) a monthty charge instead of a mortgage ~ in~urance premium if this Security Instrument is held by the Secretary. Each monthly installment of the mortgage insurance ~ , remium shall be in an amount sufficient to accumulate the full annual mortgage insurance premium with Lender one month ~ ~rior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security lnstrument is held b~~ the Secretary, ea~h monthl}~ charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principal ~ balance due on the Note. ; If Borrower tenders to Lender the full payment of all sums secured by this Security lnstrument, Borrower's account shal! ~ be credited with the balance remaining for all installments for 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 refund an~• eYCess funds to Borrower. Immediately~ prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall he credited with an~~ balance remaining for all installments for items (a), (b), and (c). 3. Applicxiion of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows: . First, to the mortgage insurance premium to be paid b~• Lender to the Secretary or to the monthly charge by the Secretar}~ instead of the monthl~~ mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this Security Instrument w•as signed; Second, to an~~ taxes, special assessments, leasehold pa~~ments or ground rents, and ~re, flood and uth~r hazard insurance ` nremiums, as required; ~ Third, to interest due under the tvote; i Fourth, to amortization of the principal of the Note; ~ Fifth, to late charges due under the Note. ~ ~ 4. Fire. Flood s~nd Other Hazard Insurance. Borrower shall insure all improvements on the Property, w•hether noH in ~ existence or subsequently erected, against any hazards, casualties, and contingencies, including Cre, for H~hich Lender requires E ; insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all improvements on the Property, whether now~ in existence or subsequently erected, against loss by floods ta the extent ~ , ~equired by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and an~• j renew•als shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. E ~ In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made 1 ~romptl}~ 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 pan of the insurance proceeds may be applied ~ ~ b~ Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, 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 monthly payments which are referred to in Paragraph 2, or change the amount of such payrnents. Any excess insurance ~roceeds over an amount required to pay all outstanding indebtedness under the Note and this Security lnstrument shatl be ' ~ paid to the entity~ legally entitled thereto. i f In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the ~ indebtedness, all right, title and interest of Borrower in and ro insurance policies in force shall pass to the purchaser. ~ 5. Preservation and MAintenance of fhe Propert3~~ Les~seholds. Borrower shall not commit waste or destroy, damage or ~ ~ubstantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect ~ ehe property if the property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect s ~ and preserve such vacant or abandoned property. If this Security [nstrument is on a leasehold, Borrower shall comply ~~ith the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless ~ Lender agrees to the merger in writing. a 6. Charges to Borrower xnd Protect6on of Lender's Rights in the Property. Borrower shall pay all governmental or municipal ~ :harges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations ~n time directly to ` che entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's reyuest Borrower shall promptly furnish to Lender receipts evidencing these payments. If Borrower fails to make these payments or the payments required by Paragraph 2, or fails ro perform any other covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may signi~cantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes, hazard insurance and other items mentioned in Paragraph 2. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured _ b~ this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the ; uption of Lender, shall be immediatelp due and payable. € ~ ~ 7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this Securit~~_Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security ~Instrument, first to an}• delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. Page2ol~ 900i( ~ FI?j~E , . ~ ~ ~ ~ ~