Loading...
HomeMy WebLinkAbout1617 Eath monthiy installment t~or items la), Ib), and shall eyual one-tweltth of the annual amounts, as reasonably estimated h~ Lender, plus an amount sufficient to maintain an additional baiance of not more than c~ne-six[h of' the estimated amounts. 7 he full annual amount for each item shali be a~cumulated by Lender v?ithin a period euding one month befo*e an item woutd he,:ume delinquent. Lender shall hold the amounts collected in trust to pa}~ items (a), (b), and (c) before they become detinquent. li at any time the tota! of the pa~~ments held by l.ender for items (a), (b), and (cl, together with the future monthfy payments I~~r such items pa~~able to Lender prior to the due dates of such items, exceeds by more than oae-sixth the estimated amount u! pa~~ments required to pay such items when due, and if payments on the Note are current, then Lender shall either refw~d tt~e excess over one-sixth of the es[imated payments or credit tt~e excess o~~er one-sixth of the zstimated 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 Borrow~er sha{I pay to Lender any amount necessary to make up the deficieney .~n or before the date the itcm beromes due. As used in this Securit>~ Instrument, "Secretar~~" means the Secretary of Housing and Urban Development or his or her designee. Mast Security Instruments insured by the Secretary are insured undec programs which reguire advance payment of the entire mortgage insurance premium. If this Security~ lnstrument 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 01 the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage in~,urance premium if' this Security Instrument is held by the Secretary. Each monthly installment of the mortgage insurance premium shall be in an amount sufficient to accumulate the futl annual mortgage insurance premium with I.ender one month prior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held b~~ the Secretary, each munthly 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 ro Lender the full payment of a!I sums secured by this Security Instrument, Borrower's account shali be rredited with the balance remaining for all installments for items (a), (b), and (c) and any mortgage insurance premium installment that Lencier has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to BarroH•er. lmmediately p~ior to a foreclosure sale of the Property or its acquisition by Lender, 8orrower's account shall be credited H•ith any balance remaining for all installments for items (a), (b), and (c). 3. Application of Pa~~ments. All payments under paragraphs I and 2 shall be applied by Lender as follows: First, to the mortgage insurance premium to be pa:d by Lender to the Secretary or to the monthly charge by the Secretary instead of the montfily mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this Security Instrument was signed; Second, to any taxes, special assessments, (easehold payments or ground rents, and fire, flood and other hazard insusance premiums, as required; Third, to interest due under the Note; ~ourth, to amortization of ihe principal of the Note; Fifth, to tate charges due under the tiote. 4. Fire, F1ood and Other Nazard Insurs?nce. Borrower shall insure all impro~•cments on the Property, whether now in etistence or subsequently erected, against any hazards, casualties, 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 ail improvements on the Property, whether now~ in existence or subsequentiy erected, against loss by floocis 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 loss, Borrower shall give 1_ender immediate notice by mai{. Lender may make proof of Ioss if not made ' promptly 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 part of the insurance proceeds may be applied k by~ 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 prepaymerit of principal, or (b) to the restoration ~ or cepair of the damaged propert}. Any application of tfie preceeds to the principal shall nat extend or postpone ihe due date ( of the monthly payments which are referred to in Paragraph 2, or change the amounc of such payments. Any excess insurance ' proceeds over an arnou~t 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 af this Security ?nstrument or other transfer of title to the Property that extinguishes the b indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. ~ ~ 5. Preservation and Maintenance of the Property, L.easehotds. Borrower shall not co~nmit waste or destroy, damage or ~ substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepled. 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 ~ 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 Borro~~~er acquires fee title to the Property, the leasehold and fee title shall not be merged unless ~ i_ender agrees to the merger in writir.g. ~ 6. Charges to Borrower and Proteclion of Lender's Rights in the Property. Barrower shall pay a{I governmental or municipal ~ charges, ~nes and impositions that are not included in Paragraph 2. Borrower shall pay :hese obligations on time direct(y to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's ~ request Borrower shali promptly furnish to Lender receipts evidencing these payments. If Borrower fails fo make these pa}~ments or the payments required by Paragraph 2, or fails to perform any other covenants rnd agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affeet ~ender's rights in the Property (sucfi as a proceeding in bankrupicy, for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to psotect the value of the Property and Len~er's rights in the Property, including payrnent uf taxes, hazard insurance and other items mentioned in Paragraph 2. Any amounts disbursed by Lender under this Paragraph sha{l become an additional debt ot Borrower and be secured ~ b this Securit [nstrument. These amounts sha!! bear interest from the date of disbursement, at the Note rate, and at the ~ y y ~ option of Lender, shafl be immediatel~~ due and payable. ~ 7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any ~ ~ondemnation or other taking of any part oi' the Property, or for conveyance in place of condemnation, are hereby assigned ; and shall be paid to Lender to the extectt of the full amount of the indebtedness that remains unpaid under the Note and this Security Instrument. Lender shall ~ppl~~ such proceeds~to 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. . . ,~~g~ 1 of a soaK ~cf . ~ : _ ~ A~. - ~ ~ ~ ~