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HomeMy WebLinkAbout2969 C:arh monthly ins[allmrnt for items (a), (b), and (c) shall equal or.r~-tHeli~th of the annual amounts, as reasunabl}~ estimated h~ l.ender, plus ar~ amount suffi;ient to maintain an additional balance of not more than c~ne-si~th of the estimated amounts. I he iutl annual amoun[ for each item shall be accumulated by Lender w~ithin a periud ending one month before an item would hecome delinquent. Lender shall hald the amounts collected in trust to pay items (a), (b), and (c) before they become delinquent. If at an~~ time the tota! et'the payments held by Lender for items (a), (b), and (cl, together w~ith the future monthly payments iur such items pa~~able to Lender prior to the due dates ol~ such items, exceeds by more than one-sixth the estimated amount ut papments required to pay such items w~hen due, and if payments on the Note are current, then Lender shall either refund the cxress over one-sixth of the estimated payments or credit the exc~ss over one-sixth of the estimated payments to subsequent pa~•mcnts by Borrowzr, at the option of Borrower. If the totaf of the pa~~mcnts made by Borrower for item (a), (b), or (c) i. insuffirient to pay the item when due, then Borrow•er shall pay to Lender any amount necessary to make up the deficiency on or bcfore the date the item becomes due. As used in this Securit~~ Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her ciesignee. Most Security lnstruments insured by the Secretary are insured under programs which require advance payment of the entire mortgage insuranre premium. If this Security Instrument is or w•as 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 of the annual r~iuri~a~~ insurance arc~~~ium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage insurance p~emium 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 full annual mortgage insurauce premium with Lender c~e 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 monthly charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principal balanre due on the Note. It Borrow~er tenders to Lender the full papment of all sums secured by this Security lnstrument, 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 co Borrower. Immediately prior to a foreclosure sale of the Property or its ac~uisition by Lender, Borrow~er's account shall be credited with any balance remaining for all installments for items (a), (b), and (c). 3. Application of Payments. AI! payments under paragraphs 1 and 2 shall be applied by (.ender as follows: 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, unless Borrower paid the entire mortgage insurance premium when this Sccurity Instrument was signed; j Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance ~ ~rerniums, as required; Third, to interest due under the Note; ~ Fourth, to amortization of the principal of the Note; f Fifth, to late charges due under the Note. ~ { ! C 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in ~ ~xistence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires it~surance. This insurance sha? 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 floods to the exteni 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 Lender immediate notice by mail. Lender may make proof of loss 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 ~ 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 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 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 be g paid to 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 ~ 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, Leaseholds. Borrower shafl not commit waste or destroy, damage or ~ substantially change the Property or allow the Prope~ ty to deteriorate, reasonable wear and tear excepted. Lender may inspect ~ che 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, BorroH~er shall comply with ~ the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless ~ l.ender agrees to the merger in writing. ~ 6. Charges to Borrower and Protection of Lender's Rights in the Properly. Borrower shall pay all governmental or municipal ~ charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to ° the 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 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 pra;.eeding ttiat 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 pay whatever is necessary to protect the value ~f 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 Instrument. These amounts shalf bear interest from the date of disbursement, at the Nate rate, and at the r option of Lender, shall be immediat~fy due and payab[e. ~ ~ ~ 7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any ` condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and shall be pai~ to Lender to the extent ~f the full amount of the indebtedness that remains unpaid under the Nate and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security lnstrument, first to any delinquent amo?Ints applied in the order provided in Paragraph 3, and then to prepayment of principal. ~aRe 1 of, ~ R ~ ~969 90s;K PAr,~ W - s"~~,:~~ ~`~`,n°-~_~1~'a"~~~~~'_:F ~~r.~~-w y„-;:..