Loading...
HomeMy WebLinkAbout1467 . ; ! Earh monthly in~talimcnt for items (a), (b), and (c) shall equal one-twelfth of the annual amounts, as reasunab{y estimated h~~ l.ender, plus an amount sufficient to maintain an addisional bafance of not more than one-sixth of the estimated amounts. ; The full annual amount for each item shail be accumulated by Lender within a period ending one month before an item wouid I hecome delinquent. Lender shall hold the amounts collected in trust to pay items (a). (b), and (c) before they become delinquent. ; lf at any time the total of the payments held by Lender for items (a), (b), and (c1, togethcr with the fuwre monthiy payments ~ for such items payable to Lender prior to the due dates of such items, exceeds by more than one-sixth the estimated amount ! of payments required ro pay such items when due, and if payments on the Note are current, then Lender shall either refund I ihe excess over one-sixth oP the estimated payments or credit the excess over one-sixth of the estimated payments to subsequent payments by Borrower, at the option of Borrower. lf the total of the payments made by Borrower for item (a), (b), or (c) is insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency on or before the date the item becomes due. As used in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her designee. Most Security lnstruments insured by the Secretary are insured under programs w-hich require advance payment of ihe entire mortgage insurance premium. lf this Security Instrument is or was insured under a program which did not require ad~~ance payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment of the annual 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 lnstrument is held by the Secretary. Each monthly instaUment of the mortgage insurance premium shall be in an amount sUfficient to accumulate the full annual mortgage insurance premium with Lender one month prior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is heid by the Secretary, each monthly charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principal balance due on the Note. lf Borrower tenders to Ler.der the full payment of all sums secured by this Security Instrument, Borrower's account shall be credited with the balance remaining for all installments for items (a), (b), and (c) and any mortgage insurance premium inssaltment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds ca Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance remaining for all installments for items (a), (b), and (c). 3. ApplicAtioa 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 by Lender to the Secretary or to the monthly charge by the Secretary instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this Security lnstrument w~as signed; Second, to any taxes, special assessments, leasehold payments or ground rents, and tire, flood and other hazard insurance premiums, as required; Third, to interest due under the Note; Fourth, to amortization of the principal of the Note; Fifth, to late charges due under the Note. 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in eristence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insu~ance. 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 existenc:. or subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried 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 ioss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly by Borrower. Fach 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 Security Instrument, ~rst 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 payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be ~ paid to the entity legally entitled thereto. ; 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 to insurance policies in force shall pass to the purchaser. ~ 5. Preservs~tion and Maintenance of the Property, I.easeholds. Borrower shall not commit waste or destroy, damage or ~ substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect ~ ~he property if the property is vacant or abandoned or the toan is in default. Lender may take reasonable action to protect ~ and preserve such vacant or abandoned property. If this Security Instrument is on a leasehold, Borrower shall comply with ~ 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. 6. C6arges to Borrower and Proiection oi Lender's Rights in the Property. Borrower shall pay all governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to ~ :he entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Froperty, upon Lender's request 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 to perform any other covenants i and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcr, 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. k ~ Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured ~ by this Security [nstrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the ~ option of Lender, shall be immediately due and payable. ~ 7. Condemn~tion. 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 shail be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this ~ Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security tnstrument, first to any delinquent amounts appJied in the order provided in Paragraph 3, and then to prepayment of principal. : Page ~ of, ~ p ~7~ ~~~E14S7 ~ soc~ ~ _ . . _ . . . . _ ~ ~ _