HomeMy WebLinkAbout1531 l~a~~h monthl~~ in~talirnent for item~ (a>, 1bi, and (c) shall equal one•t~ielfth ol the annual amounts, as reasonably estimated
Lender, plus ar~ amount suft'icient to maintain an additional balance of not more than c~ne-sixth of' the estimated amounts.
l h~ t ull annua! amount for each item shall be accumulated by Lender withir~ a period ending one month before ~n item H~~uld
he~on~r delinquent. Lender shall hold the amounts coilected in trust to pay items (a), (b), and (c) before they became delinquent. ,
If at any time the total of'the pa~~ments held by Lender for items (a), (b), and {c), together with the future monthly~ payments
t~~r tiuch items pa~•able to Lender prior to the due dates of such items, exceeds by more than one-sixth the estimated amount
~~t payments required to pay such items K•hen due, and if payments on the Note are current, then ~ender shall either refund
~ ht e~ress a~~er one-sirth of the estimated payments or credit the excess over ane-sixth of the estimated payments to subsequent
~~a~ments by Borrow~er, at the option of Borrow~er. If the total of the payments made by Borrower ior item (a), (b), or (c)
i, insui'ficient to pay the item when due, then Borrower shatl pay to Lender any amount necessary to make up the deficiency
:~n or before the date the item becomes due.
As u~ed in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her ~
.1e~ignee. ~9ost Security Instruments insured by the Secretar~= are insured under programs which require advance payment of
?he entire mortgage insuranre premium. If this Security Instrument is or was insured under a program which did not require
,~~ivance pa~•ment of the entire mortgage insurance pr~mium~ then each monthly payment shall also include eithee: (i) an installment
~~f the annua! mortgage insurance premium to be paid by Lender ro the Secretary, or (ii) a monthly charge instead of a mortgage t
i,~,urance pr~emium if this Securit~ lnstrument is held by the Secretary. Each monthly installment of the mortgage insurance
E~remium shall be in an amount sufficient to accumulate the full annual mortgage insurance premium with Lender one month
~rior to the dare the full annual mortgage insurance premium is due ro the Secretary, or if this Security lnstrument is held ~
b~~ the Secretary, each monthl~~ charge shall be in an amount eyual to one-twelfth of one-half percent of the outstanding principal ~
halance due on the Note.
If Borro~~~er tenders to Lender the fuU payment ~1 al! sums secured by this Security Instrument, Borro~~er's account shall '
he rredited w~ith the balance remaining for all installments fur items (a), and (c) and any mortgage insurance premium
in~tallment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds ~
co Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall
he credited with any balance remaining for all instal(ments for items (a), (b), and (c). -
3. Appiicstion of Pay~ments. 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 S~cretary~ '
instead of
the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this
Security Instrument was signed;
Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance -
;~remiums, as required;
Third, to interest due under the Note;
F~urth, to amortization ~f the principal of the Note;
Fifth, to late charges due under the Note.
4. Fire. Flood and Other Nazard Insuranre. Borrower shall insure a!1 improvements on the Property, H~hether now in
ristenre or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires _
ir~surance. 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 f7oods to the extent
required by the Secretary. All insurance shall be car~ied u~ith companies approved by Lender. The insurance po]icies and any
r~~~ewals 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 loss, Borrower shall give Lender immediate notice by mail. Lender may maice proof of iass if not made ;
~~romptly by Borrower. F.ach insurance company concerned is hereby authorized and airected 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
h~ 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 pre~ayment of principal, or (h) to the restoration
~~r repair of the damag~d property. Any application of the proceeds to the principal shall not extend or postpone the due date ,
~~i the monthly payments which are referred to in Paragrap6 2, or change the amount of such payments. Any excess insurance
,~roceeds over an amount required to pay all outstanding indebtedness ~nder the Note and this Security Instrument shall be
E~aid ta 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
inciebtedness, all right, title and interest of BorroK~er in and to insurance policies in force shall pass to the purchaser.
5. Preservation and Maintenance of the Property, Leaseholds. Borrower shall not commit waste or destroy, damage or
~ubstantially change the Property or allow tt~e Property to deteriorate, reasonable wear and tear excepted. Lender may inspect
c t~e property if the property is vacant or abandoned or the loan is in defauit. Lender may take reasonable action to arotect
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 ac~uires fee titie to the Property, the leasehold and fee title shall not be merged untess
l ender agrees to the merger in writing.
s 6. Charges to 6orrower and Protection of Lender's Rights in the Property. Borrower shall pay afl governmental or municipal
:harges, fines and impositions that are not included in Paragraph 2. Borrower sha11 pay these obti~ations on time directly to
t6je entity which is owed the payment. if failure to pay would adversely affect Lender's interest in the Property, upon Lender's
:~quest Borrower shall promptly Furnish to Lender receipts evidencing these pa}~ments.
If Borrower iails to make these payments or the payments required by Paragraph 2, or fails t~ perform any other covenants
and 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 regulationsl, then Lender may
~io 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 Aaragraph 2.
` Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured
' t~~ this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the
~}~tion of Lender, shall be immediately due and payabie.
! 7. Condem~ation. The proceeds of any award or claim for damages, direct or consequemial. in connection with any
~:~ndemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned
g .~nd shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
~e~urity I~strument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
I nstrument, first to any delinquent amounts applied in the ~rder provided in Paragraph 3, and th~n to prepayment of principal.
P~Re 1 ~I4 BOOK PAGE
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