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HomeMy WebLinkAbout2772 t:ach mon[hly in~tallment for items (a), (b), and (c) shall equal one-tweifth of'the annual amounts, as reasonably estimated h~ Lender, plus ar amount suffirient to maintain an additional balance ot' not more than c~ne-sixth of the estimated amounts. t hr fult ansiual amount for each item shall be accumutated by Lender within a pe[iod endine one month hefnre an it~m wnul~i t~«ome delinyuent. Lender shall hold the amounts collected in t~ust to pay items (a), (b), and (c) before they become detinquent. tf at any t+me the cotal of the payments held by Lender for items (a), (b), and (cl, together with the future monthly payments t,x ~urh items payable to t_ender prior to the due dates of such items, exceeds by more than one-sixth the estimated amount ~tii payments reyuired to pay such items when due, and if payments on the Note are current. then Lender shall either refund ! he exress over one-sixth of the estimated payments or credit the excess over one-sixth of the estimated payments to subsequent E~a>~ments by Borrower, a~ 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 shali pay to Lender any amount necessary to make up the de~ciency ~~n or before the date the item becomes due. ~s used in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her d~signee. R4ost Security lnstruments insured by the Secretary are insured under programs which require advance payment of ctie entire mortgage insurance premium. lf this Security Instrument is or was insured under a program which did not require ad~~ance payment of the entire martgage insurance premium, ihen each monthly payment shall also include either. (i) an installment ~ ol the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage i insurance premium if this Security Instrument is held by the Secretary. Each monthly installment of the mortgage insurance ; ~remium shall be in an amount sufCcient to accumulate the ful{ annua! mortgage insurance premium with Lender one month ; rrior to the date the full annual mortgage insurance premium is due to the Secretary, os if this Security Instrument is held i by the Secretary, each monthly 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 to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shall be credited with the balance remaining for all installments for items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to 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 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 foilows: ~ First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary instead of the monthly mortgage insurance premium, untess 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 premiums, as required; Third, to interest due under the Note; Fourth, to amortization of the principal of she Note; Fifth, to late charges due under the Note. 4. Fire, Flood and Other Hazard Insurance. Borrower shaU insure all improvements on the Property, whether now in e~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 petiods that Lender requires. Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the ezlent required by the Secretary. All insurance shalt be carried with companies approved by Lender. ?he insurance policies and any renewals shall be heid by Lender and shall include loss payable clauses in favor of, and in a form acceptab(e to, Lender. In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly by Borrower. F.ach insurance company concerned is hereby authorized and directed to make payment for such {oss directiy to Lender, instead af 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 any delinquent amounts applied in the order in Paragraph 3, and then to prepayment 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 I of the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance ' proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall t~e paid to the entity legally entitled thereta. In the event of foreclosure of this Security Instrument or other transfer of title to the Progecty that extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance poiicies in force shall pass to the purchaser. 5. Preservalion and Mstintenance of ihe Property, I.easehoids. Borrower shall nat commit waste or destroy, damage or ,ubstantiatly change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the property if the property is vacant or abandoned or the lnan ic in c1Pfa~ilt_ i Pn~iP~ m3y r~4P ~~w„~~;;~r~~ Y:~,",, and preserve such vacant or abandaned property. If this Security Instrument is on a leasehold, Bor~ower shall comply with st~e 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. Charg~ to Borrower and Protection of L.ender's Rights in ihe Property. Borrower shall pay al! governmenta{ or municipal charges, fines and impositians that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to tl~e entity which is owed the payment. [f failure to pay would adversely affect Lender's interest in the Property, upon Lender°s request Borrower shall promptly furnish to Lender receipts e~idencing 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 signi~cantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnaiion or to enforce laws or reguiations), then Lender may do and pay whatever is necessary to protect the value of ifie Property and Lender's rights in the Property, inctuding payment of taxes, hazard insurance and other items mentioned in Paragra~h 2. Any amounts disbursed by Lender under this Paragraph shall become an addit:onal debt of Borrower and be secured b`~ this Security Instrun,ent. These amounts shall bcar interest fram the date of disbursement, at the Note rate, and at the option of Lender, shall be immediately due and payable. 7. Condemnation. The proceeds of any award or claim for damages, direct or conseyuential, in connection with any condemnatio or other t~:king of any part of the Property, or for conveyance in place of condemnatic:., are hereby assigned znci shall b paid to Lender to the extent of the fuit amount of the indebtedness that remains unpaid under the Note and this Security I strument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrume t, first to any delinquent amounts app[ied in the order provided in Paragraph 3, and then to prepayment of principal. PoBe 2 af. s~K 675 ~~f2772 ~ ~ ; . ~ - _~._u..~_ - - y,~~ s.~, _ - - - - - - .