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HomeMy WebLinkAbout0785 t.a~i~ nzunthly instaUmen[ for item. (a). (h), and (rl,hali ~quul on~-t~~elfth ot the annuat amounts, as :ea~onabl} cstimatrd b~ l.endrr, plus an amount suflicient to maintain an additional balance oi' not more than c~nc-~ixth af the estimated amounts. Chr tuU annual amo?~nt for each item shall be accumulated by Lender tiithin a period ending one mont:~ before an item H~ould hecc+me delinquent. l.ender shal! hold the amounts collected in trust to pay items (a), (C), and (c) before they ber,ome delinquent. If at any time the total af the pa~~ments held by Lender for items (a1, (b), and (cl, together with the future monthly payments (ur such items payable to Lender prior [o the due dates of such items, exceeds by more than one-sixth the estimated amount ~~1 ra>~mcnts reyuired to pay such items when due, and if payments on the Note are current, then Lender shall either refund ~he extess otier one-sixth of the estimated pa>•ments or credit the excess over one-sixth of the estimated payments to subsequent ~a}~ments by Borro~~er, at the option oi Borr~w•cr. lt~ the total of the pa}~ments made by Borrow~er for item (a), (b), or (c) s; i~~sutfieient to pa~ the item when due, then Borrower shafl pay to Lender any amount necessary to make up the deficiency ~~n or before the date the item becomes due. As used in this Serurity Instrument, "Secretarp" means the Secretary of Housing and Urban De~~etopment or his or het ~ie~ignee. ~tost Securit~~ lnstruments insured by the Secretary are insured under programs which require advance ~a~~ment of the entire mortgage insurance premium. tf this Security lnstrument is or w~as insured under a program which d'ed not require ad~ ance payment of the entire mortgage insurance premium, then each menthly 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 installment of the mortgage insurance premium shall be in an amount sufficient to accumulate the fufl annual mortgage insurance premium with Lender one month ~rior ro the date the full annua! mortgage insurance premium is due to the Secretary, or if this Security Instrument is held b~~ the Secretary, each monthly~ charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principal i~alance due on the Note. If Borro~~er tenders to Lender the full payment of all sums secured by this Security lnstrument. Borrow~e~'s accQUnt shaU be credited ~~~ith the balance remaining for all instaliments f~r items (a), (b), and (c) and any mortgage insurance premium instailment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrow~er. Immediately prior to a i'oreclosure sale of the Property or its acquisition by Lender, Borrow~er's account shall be credited ~~•ith any balance remaining for al! installments for items (a), (b), and (c). 3. Application of Pa~ments. All pa~~ments under paragraphs 1 and 2 shall be applied by Lender as follo~~~s: First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge b~• the Secretary instead of the monthl~ mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this Security lnstrument ~~as signed; Second, to any taxes, special assessments, leasehold pa~~ments or ground rents, and fire, tlood and other hazard insurance ~remiums, as required; Third, to interest due under the Note; Fourth, to amortization of the principal of the Note; F:f:~: ~O C~:3Tb~S uu~ uTiu~i iiii i~~vi~• 4. Fire, Flood and Other Hazard Insurance. Borroti•er shall insure all improvements on the Property, ~•hether no~~ in ~ristence or subsequently erected, against any hazards, casuaities, and contingencies, including fire, for which Lender requires 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 !loods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shal[ be hetd by Lender and shall include loss payable clauses in favor of, and in a form acceptab4e to, Lender. ' ln the event of loss, Borrower shall give Lender immediate natice by maiL Lender may make proof of loss ii' not made ~ promptly by Borrow~er. F.ach insurance company concerned is hereby authorized and disected 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 ! b~• 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 prepaymerit of principal, or (b) to the restoration l 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 Pa~agraph 2, or change the amount of such payments. Any excess insurance praceeds over an amount required to pay all outstanding indebtedness under the Note and this Security [nstrument shati be ~aid to the entity legally entitled thereto. In the event oi foreclosure of this Security Instrument or other ~ransfer of title to the Property that extinguishes the ~ indebtedness, all ~ight, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. t = 5. Preservation and Maintenance of the PropertS~, Leaseholds. Borrower shall not commit waste or destroy, damage or ~ substantially change the Property or allow the Property to deteriorate, reasonable w~ear and tear excepted. Lender may inspect the property if the property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect y and preserve such vacant or abandoned property. If this Security Instrument is on a leasehold, Borrower shal! comply with the provisions of the lease. (f Borrower acquires fee title to the Property, the teasehold and fee title shall not be merged unless ~ Lender agrees to ihe merger in writing. 6. Charges to Borrow~er and Frotection of Lender's Rights in the Propert}~. Borrower shal! pay all governmental or municipal ~ charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly ro F ~he entity µ~hich is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's ~ request Borro~~~er shall promptl}~ 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 and agreements contained in this Se~urity Instrument, or there is a legal 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 pa}~ whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment ~~f taxes, hazard insurance and other items mentioned in Paragraph 2. An}~ amounts disbursed by Lender under this Paragraph shail become an additional debt of Borrow~er and be secured - t~~ this Security Instrument. These amounts shail bear interest from the date of disbursement, at the Note rate, and at the ~~ption of Lender, shall be immediately due and payable. z ~ ~ 7. Condemnatiun. The proceeds of any a~sard or claim for damages, direct or consequential, in connection ti~ith any~ ~onaemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned ~ and.shall b,e paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this Security tn~trument. Lender shall apply such proceeds ta the reduction of the indebtedness under the Note and this Security Instrument, first to any~ delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. . . ~°~e z°.r ~ aoox 6 5 Pa~E 7~5 - _ - . . . - '~.~..~"~i'~'~"~~'~`"-~;~~=4~'~~" .~r,,~.~,::r~A'-.:s- - ^4 .z~^ . .