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HomeMy WebLinkAbout2235 I:a~h monthly instaUment for items (a), (b), and ~hall eyual one-twellth of the annual amounts, as reasonabiy e~timatrd h~ Lender, plus an amount suffirient to maintain an additional bafance of not more than c~ne-sixth of the estimated amounes. I he I~ull annual amoum t~or each item shall be arcumulated by Lender within a period ending one month before an item would h«umc delinquent. Lender shall hold :he amounts collected in trust to pay items (a), (b), and (c) beiore they become detinquent. li at any time the total of the payments held by Lender for items (a), (b), and (c), together with the future monthly paymcnts i~~r such items pa~~able to Lender prior to the due dates of such items, exceeds by more than one-sixth the estimated amount ut payments reyuired to pay surh items when due, and if pa~~ments on the Note are current, then Lender shall either refund ~he exress over one-sixth of the estimated payments or credit the e!ccess over one-sixth of the estimated payments to subsequent G~ci>inents by Borrower, at the option of Borrower. If the total of the payments made by Borrower for item (a), (b), or (c) i, insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency un 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 se~igi~ee. hiost Security lnstruments insured by the Secretary are insured under programs which require advance payment of ct~r entire mortgage insurance premium. lf this Security Instrument is or was insured under a program which did not require a~i~ ance payment of the entire mortgage insurance premium, then each monthly payment shall atso include either. (i) an installment mnrfnaov incuran^~+ nrs+mi~~m tn hP nai~ hv 1 Pnc1Pr ~n ~hP CPCrPiarv_ nr 1ii1 a mnnthlv eharQe inctead of a mortQa¢e : • • - - ii»urance premium if this Security Instrument is held by the Secretary. Each monthly installment of the mortgage insurance ~ ~~remium shall be in an amount sufficient to accumulate the fult annual mortgage insurance premium with Lender one month { ~rior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held ; h~~ the Secretary, each monthly rharge 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 to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shall ~ ~e rredited with the balance remaining for all instal(ments for items (a), (b), and (c) and any mortgage insurance premium ~ :nstallment that Lender has not become obligated to pay to the Secretary, and Lender shail promptly refund any excess funds i co 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. Application of Pa~~ments. All payments under paragraphs 1 and 2 shall be applied by Lender as follo~vs: First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary ir~stead of'the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium w~hen this Security Instrument was signed; ' Second, to any [axes, special assessments, leasehotd payments or ground rents, and fire, tlood and other hazard insurance emiums, as rrquired; 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, H~hether now in ~~istence 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 all improvements on the Property, v?hether now in existence or subsequently erected, against loss by floods to the extent ~ r~quired 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 I.ender immediate notice by mail. Lender may make prc~of of loss if not made ~ ~romptly by Borrower. F.ach 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 [nstrument, first to any delinquent amounts applied in the order in Paragraph 3, and then to prepaymerit 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 ~roceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be ~aid to the entity legally entitled thereto. In the event of foreclosure of this Security Instrument or other trans`er of tiile to the Property that extinguishes the ~ ~ndebtedness~ all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. i ' S. Preservalion and Maintenance of ihe Property~, Leaseholds. Borrower shall not commit waste or destroy, damage or ~ ~ubstantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect ~ ~he property if the propertv 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 tnstrument is on a leasehold, Borrower shall comply with che 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. Charges to Borrow~er and Protection of Lender's Rights in the Property. Borrow~er shall pay all governmental or municipal ~ ~harges, ~nes and impositions that are not included in Paragraph 2. Borrower shall pay these ob~igations on time directly 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 Borrow•er shal) 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 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 bankruptcy, for condemnation or to enforce laws or regulations), then Lender ma}• 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. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured ~ by this Security lnstrument. These amounts shali bear interest from the date of disbursement, at the Note rate, and at the ~ option of Len~er, shall be immediately due and payabfe. ~ 7. Condemnation. The praceeds of any award or claim for damages, direct or consequentiai, in connection with any ' ~ondemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned ` and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this Security lnstrument. Lender shall apply such proceeds to the reduction of the indebtedness under the h`ote and this Security tn~trument, first to any delinquent amounts applied in the order provided in Paragraph and then to prepayrt~ent of principal. i~oze z o~ a 0 R l.~'~t~ PACF~~~~ 80QK ~ . . . - ~ - ~ - - ~ s