HomeMy WebLinkAbout0165 f~a~h munthly in~taUm~nt lor i~im, (a). (bl, and (r),hall equal ~ne-t~~rlt~h c~t~ [hr annual amuunu, ati rca~unahly c~timated
h~ Lcnclrr, ~lin ar~ amount suft~i~ient to m~~intain an additional bala~~re oi~ nut mure than c~ne-,ixth ot~ the e~tinu?ted amuunt~.
I he tull annual amuunt tor earh item ~hall be arrumulated by Lender ~~ithin a period ending one month before an item ~~~uuld
h~r~~me delinyuent. l_ender shall hold the amounts colle~ted in trust to pa}~ items (a), (b), and (c) brfore the}~ become delinyuent.
If at an~~ time the total of the pa~•m~nts held by Lender for items (a), (b), and (c), together ~~~ith the future monthly~ pa}~ments
t~~r ,urh items pa~~able to l.ender prior to the du~ dates of surh items, e~reeds by more than one-si~th the estimated amount
~~t ~a~ments required to pay such items ~~~hen due, and if payments on the Note are rurrent, then Lender shall either refund
~he exce.s o~er one-s~xth of the estimated pa~~ments ur credit the excess a~~er one-sixth of the estimated payments to subseyuent
~~a>ments by Borro~ver, at the option of Borro~~er. If the total of the ~ayments made b~~ BorroH~cr for item (a), (b), or (c)
i, insuffirient to pa~~ the i~em ~~~hen due, thrn Borro~~er shall pay to Lender any amount necessar}~ to make up the defic;ency
t~n ur bel~ore thr date the item becomes due.
A~ used in this Securit~~ Instrument, "Secretar~~" means the Secretary of Housing and Urban Development or his or her
~i~,ignee. 11ost Securit~~ Instruments insured by the Secretary are insured under programs ~vhirh reyuire ad~~ance payment ot~
the e~tire mortgage insurance premium. If this Security lnstrument is or H~as insured under a program which did not reyuire
~u1~an~e payment of the entire mortgage insurance premium, then each monthly pa~ment shall also include either: (i) an i~stallment
~>f the annual mortgage insuranre premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
intiurance premium if this Security Instrument is held b}• the Secretary. Each monthly installment of the mortgage insurance
~remium shall be in an amount sufficient to accumulate the full annual mortgage insuranre premium ~vith Lender one month
~7rior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security lnstrument is hetd
h~ the Secretary, each monthl~• charge sha!1 be in an amount equal to one-twelfth of one-half percent of the outstanding principal
balance due on the Note.
If Borro«~er tenders to l.ender the full paymenc of all sums serured by~ this Security tnstrument, Borro~~er's account shall
he ~redited ~~•ith the balance remaining for all installments for items (a). (b), and (c) and any mortgage insuranre premium
installment that Lender has not become obligated to pay ta the Secretar~•, and Lender shall promptly refund any excess funds
ta Borro~ver. Immediately prior to a foreclosure sa(e of the Propert~~ or its acquisition by Lender, Borrower's arcount shall
he rredited with any balance remaining for all installments for items (a), (b), and (c).
3. Application of Pa~~ments. All payments under paragraphs 1 and 2 shall be applied by Lender as follow~s:
First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretar~•
instead of the monthly mortgage insurance premium, unless Borro~~~er paid the entire mortgage insurance premium when this
Se~urity Instrument was signed;
Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and oiher hazard insurance
~remiums, 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. Borro~~~er shall insure all impro~~ements on the Property, ~~~hether now in
e~istence or subsequentl}~ erected, against any hazards, casualties, and contingencies, including fire, for w~hich Lender requires
insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also
in~ure all impro~~ements on the Property, H~hether now in existence or subsequently erected, against loss by floods to the extent
reyuired b}~ the Secretary. All insurance shall be carried with companies approved b}~ 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.
[n the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made
~~romptly by Borrower. F.ach insurance company concerned is hereby authorized and directed to make payment for such loss
~iirectly to Lender, instead of to Borrower and to Lender jointly. All or any part 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
an~~ delinquent amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the restoration
r~r repair of the damaged property. Any application of the proceeds to the principal shall not extend or postpane the due date
~~f the monthly payments ~~~hich are referred to in Paragraph 2, or change the amount of such payments. Any e!ccess insurance
nroceeds over an amount required to pay~ all outstanding indebtedness under the Note and this Security Instrument shall be
E~aid to the entity legally entitled thereto.
In the event of foreclosure of this Security Instrument or other transfer of title to the Propert}~ that extinguishes the
indebtedness, all right, title and interest of Borro~~~er in and to insurance policies in force shall pass to the purchaser.
5. Preser.vation and Maintenance of the Property~. Leaseholds. Borrower shall not commit ~•aste or destroy, damage or
,ubstantially change the Property or allow the Propert~~ to deteriorate, reasonable wear and tear excepted. Lender may inspect
zhe property if the property is vacant or abandoned or the toan is in default. Lender may take reasonable action to protect
~~,d preserve such ~~acant or abandoned property. !f this Security Instrument is on a l~asehold, BorroH~er shall comply with
ehe pro~~isions of the lease. If Borrow~er acquires fee title to the Property, the leasehold and fee title shall not be merged unless
Lender agrces to the merger in writing.
6. Charges to Borrower and Protection of Lender's Rights in the Property~. Borrow~er shall pay~ all gove: nmental or municipal
:harges, ~nes and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to
ehe entity w~hich is owed th;, pa}~ment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's
r~yuest Borrower shall promptly furnish to Lender receipts evidencing these payments.
If 8orrower fails to make these pa~~ments or the payments required by Paragraph 2, or fails to perform any other covenants
:~nd agreements contained in this Security Instrument, or there is a lega! proceeding that may significantly 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 w~hatever is necessary to protect the value of the Property and Lender's rights in the Property, incfuding payment
~~t taxes, hazard insurance and other items mentioneci in Paragraph 2.
Any amounts disbursed by Lender under this Paragraph shali become an additional debt of Borrower and be secured
i~~ this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the
c~~tion of Lender, shall be immediatel~~ due and payable.
7. Candemnation. The proceeds of an}~ award or ciaim for damages, direct or consequential, in connection with an~
:c~ndemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned
anc: shall be paid to I_ender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
~ecurity tnstrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Securit~~
I~~Strument, first to an}~ delinquent amounts a~plied in the order provided in Paragraph 3, and then to prepayment of principal.
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