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THIS INSTRUMENT WAS
PREPARED BY:
WHEN RECORDED MAIL TO:
Preferred Mortgage Group
1805 SHEA CENTER DR. #240
HIGHLANDS RANCH, CO 80129
Loan Number: 321034652
Servicing Number: 002172884 - 5
RECEIVED 6/12/2006 at 3:46 PM
RECEIVING # 919261
BOOK: 623 PAGE: 31
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMM~~~~I~u__
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MORTGAGE
THIS MORTGAGE is made this 08 day of June
the Mortgagor,
CURT M. CANNON AND STEPHANIE PUGMIRE
2006
, between
(herein "Borrower"), and the Mortgagee,
Preferred Mortgage Group Inc , A COLORADO CORPORATION
CI
(
, a corporation organized and
existing under the laws of COLORADO , whose address is
1805 SHEA CENTER DR. #240, HIGHLANDS RANCH, CO 80129
(herein "Lender").
WHEREAS, Borrower is indebted to Lender in the principal sum of U. S. $ 55, 200 . 00 , which
indebtedness is evidenced by Borrower's note dated June 08, 2006 and extensions and renewals
thereof (herein "Note"), providing for monthly installments of principal and interest, with the balance of
indebtedness, if not sooner paid, due and payable on July 01, 2036
TO SECURE to Lender the repayment of the indebtedness evidenced by the Note, with interest thereon;
the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this
Mortgage; and the perfonnance of the covenants and agreements of Borrower herein contained, Borrower does
hereby mortgage, grant and convey to Lender, with power of sale, the fo11owing described property located in the
County of Lincoln
State of Wyoming:
36192330018700 ClJ(.~
LOT 203 OF NORDIeRANCHES DIVISION NO. 13, LINCOLN COUNTY, WYOMING AS DESCRIBED
ON THE OFFICIAL PLAT FILED ON OCTOBER 3, 2002 AS INSTRUMENT NO. 884517 OF THE
RECORDS OF THE LINCOLN COUNTY CLERK.
This Security Instrument
herewith.
which has the address of
ETNA
is subordinate to a first lien recording concurrently
131 SPUR LOOP
[City), Wyoming
83118-
[Street]
[ZIP Code] ("Property Address")
TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights,
appurtenances and rents, a11 of which shall be deemed to be and remain a part of the property covered by this
Mortgage; and a11 of the foregoing, together with said property (or the leasehold estate if this Mortgage is on a
leasehold) are hereinafter referred to as the "Property."
Borrower covenants that Borrower is lawfu11y seised of the estate hereby conveyed and has the right to
mortgage, grant and convey the Property, and that the Property is unencumbered, except for encumbrances of
record. Borrower 'covenants that Borrower warrants and wi1l defend genera11y the title to the Property against all
claims and demands, subject to encumbrances of record.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as fo11ows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest
indebtedness evidenced by the Note and late charges as provided in the Note.
2. Funds forTaxes and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall
pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is
paid in fu11, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments (including
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WYOMING - SECOND MORTGAGE
Page 1 of 5
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0919261.
Loan Number: 321034652
Servicing Number: 0 0 21 72884 - 5
Date: 06/08/06
WYOMING - SECOND MORTGAGE
Page 2 of 5
condominium and planned unit development assessments, if any) which may attain priority over this Mortgage and
ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance, plus
one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and
from time to time by Lender on the basis of assessments and biIls and reasonable estimates thereof. Borrower shall
not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to
the holder of a prior mortgage or deed of trust if such holder is an institutional lender.
If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of
which are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution).
Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may
not charge for so holding and applying the Funds, analyzing said account or verifying an4 compiling said
assessments and biIls, unless Lender pays Borrower interest on the Funds and applicable law permits 'Lender to
make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that
interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such
interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall
give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and
the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums
secured by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable
prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required
to pay said taXes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at
Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds.
If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums
and ground rents as they fail due, Borrower shall pay to Lender any amOunt necessary to make up the deficiency
in one or more payments as Lender may require.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any
Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by
Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender,
any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provide otherwise, all payments received by Lender
under paragraphs 1 and 2 shall be applied in the following order (i) prepayment charges due under the Note, if any
(ii) amounts payable under Section 2; (iii) interest then due under the Note; (iv) principal then due under the Note;
(v) any other charges then due under or relating to the Note or Security Instrument including but not limited to late
charges and non sufficient funds; (vi) any payments or premiums due for optional products that I have authorized;
and (vii) the unpaid Principal balance of the Note.
4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's
obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this
Mortgage, including Borrower's covenants to make payments when due. Borrower shall payor cause to be paid
all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a
priority over this Mortgage, and leasehold payments or ground rents, if any.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
Property insured against loss by fire, hazards included within the term "extended cöverage, " and such other hazards
as Lender may require and in such amounts and for such periods as Lender may require.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender;
provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall
be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable
to Lender. Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any
mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
make proof of loss if not made promptly by Borrower.
If Borrower abandons the Property, Lender may file, negotiate, and settle any available insurance claim
and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier
has offered to settle a claim, then Lender may negotiate and settle the claim. The 30 day period wiIl begin when
the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower
hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts
unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to
any refund of the unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar
as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair
or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then
due.
6. Preserv'ation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments.
Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration
of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this
Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's
obligations under the declaration or covenants creating or governing the condominium or planned unit development,
the by-laws and regulations of the condominium or planned unit development, and constituent documents.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained
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Loan Number: 321034652
Servicing Number: 002172 884 - 5
Date: 06/08/06
in this Mortgage, or if any actien er proceeding is commenced which materially affects Lender's interest in the
Preperty, then Lender, at Lender's eption, upen netice to. Berrewer, may make such appearances, disburse such
sums, including reasenable atterneys' fees, and take such actien as is necessary to. protect Lender's interest. If
Lender required mortgage insurance as a cenditien ef making the lean secured by this Mertgage, Berrewer shall
pay the premiums required to. maintain such insurance in effect until such time as the requirement fer such insurance
tenninates in accerdance with Berrewer's and Lender's written agreement or applicable law.
Any ameunts disbursed by Lender pursuant to. this paragraph 7, with interest thereon, at the Note rate, shall
beceme additional indebtedness ef Berrewer secured by this Mertgage. Unless Berrewer and Lender agree to. ether
tenns of payment, such ameunts shall be payable upen notice from Lender to Berrewer requesting payment thereof.
Nothing contained in this paragraph 7 shall require Lender to. incur any expense er take any actien hereunder.
8. Inspectien. Lender may make or cause to. be made reasonable entries upen and inspectiens ef the
Property, provided that Lender shall give Berrewer netice prier to. any such inspectien specifying reasonable cause
therefer related to Lender's interest in the Preperty.
9. Condemnation. The preceeds ef any award er claim fer damages, direct er censequential, in cennectiOn
with any cendemnatien Or other taking ef the Preperty, er part thereof, er fer conveyance in lieu of cendemnatien,
are hereby assigned and shall be paid to. Lender, subject to. the tenns ef any mortgage, deed ef trust er other
security agreement with a lien which has prierity ever this Mertgage.
10. Borrewer Not Released; Forbearance By Lender Net a Waiver. Extension of the time fer payment er
modificatien ef amertizatien ef the sums secured by this Mertgage granted by Lender to any successer in interest
ef Berrewer shall net eperate to. release, in any manner, the liability ef the eriginal Berrewer and Berrewer's
successers in interest. Lender shall not be required to cemmence preceedings against such successer er refuse to.
extend time fer payment er etherwise medify amertizatien of the sums secured by this Mertgage by reasen of any
demand made by the eriginal Borrewer and Borrewer's successars in interest. Any ferbearance by Lender in
exercising any right er remedy hereunder, or etherwise afforded by applicable law, shall net be a waiver of or
preclude the exercise af any such right er remedy.
11. Successers and Assigns Beund; Jeint and Several Liability; Co.-signers. The cevenants and agreements
herein centained shall bind, and the rights hereunder shall inure to., the respective successers and assigns ef Lender
and Berrower, subject to. the previsiens ef paragraph 16 hereef. All cevenants and agreements ef Berrewer shall
be jeint and several. Any Berrewer who. co.-signs this Mertgage, but dees net execute the Note, (a) is co.-signing
this Mertgage enly to. mortgage, grant and cenvey that Berrewer's interest in the Preperty to. Lender under the tenns
ef this Mertgage, (b) is net persenally liable en the Nete er under this Mertgage, and (c) agrees that Lender and
any ether Borrewer hereunder may agree to. extend, medify, ferbear, er make any ether accemmedatiens with
regard to the tenns ef this Mertgage er the Nete witheut that Berrewer's censent and witheut releasing that
Borrower er medifying this Mortgage as to. that Berrewer's interest in the Preperty.
12. Natice. Except fer any netice required under applicable law to. be given in anether manner, (a) any
netice to. Berrewer previded fer in this Mertgage shall be given by delivering it er by mailing such netice by
certified mail addressed to. Borrewer at the Property Address er at such ether address as Berrewer may designate
by netice to. Lender as previded herein, and (b) any netice to Lender shall be given by certified mail to. Lender's
address stated herein er to. such other address as Lender may designate by netice to. Berrewer as previded herein.
Any net ice provided fer in this Mertgage shall be deemed to. have been given to. Berrewer er Lender when given
in the manner designated herein.
13. Governing Law; Severability. The state and lecal laws applicable to. this Mertgage shall be the laws
ef the jurisdiction in which the Property is lecated. The feregeing sentence shall net limit the applicability ef federal
law to. this Mertgage. In the event that any previsien er clause ef this Mertgage or the Nete cenflicts with applicable
law, such cenflict shall not affect ether provisiens ef this Mertgage er the Nete which can be given effect witheut
the conflicting provisien, and to. this end the provisiens ef this Mertgage and the Note are declared to. be severable.
As used herein, "cests," "expenses" and "atterneys' fees" include all sums to. the extent net prohibited by applicable
law or limited herein.
14. Borrower's Capy. Berrewer shall be furnished a confenned cepy ef the Nete and ef this Mertgage at
the time ef executien er after recerdation hereef.
15. Rehabilitation Loan Agreement. Berrewer shall fulfill all of Berrower's obligatiens under any heme
rehabilitatien, imprevement, repair, or ether lean agreement which Berrewer enters into with Lender. Lender, at
Lender's eptien, may require Borrewer to. execute and deliver to. Lender, in a fenn acceptable to Lender, an
assignment ef any rights, claims or defenses which Borrower may have against parties who. supply laber, materials
or services in connectian with improvements made to the Preperty.
16. Transfer of the Praperty ar a Beneficial Interest in Borrawer. If all er any part of the Preperty er any
interest in it is sold or transferred (er if a beneficial interest in Berrewer is seld or transferred and Berrewer is not
a natural persen) witheut Lender's prier written consent, Lender may, at its option, require immediate
payment in full of. all sums secured by this Mertgage. Hewever, this optien shall net be exercised by Lender if
exercise is prohibíÌed by federal law as ef the date ef this Mortgage.
If Lender exercises this option, Lender shall give Borrewer notice ef acceleratien. The netice shall provide
a peried ef net less than 30 days frem the date the netice is delivered er mailed within which Borrewer must pay
all sums secured by this Mortgage. If Berrewer fails to. pay these sums prier to. the expiratien ef this peried, Lender
may inveke any remedies pennitted by this Mertgage witheut further notice er demand en Borrewer.
NON-UNIFORM COVENANTS. Berrewer and Lender further cevenant and agree as fellews:
17. Acceleration; Remedies. Except as provided in paragraph 16 hereof, upon Borrawer's breach of any
covenant or agreement of Borrower in this Mortgage, including the cövenants to. pay when due any
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WYOMING - SECOND MORTGAGE
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C00034
Loan Number: 321034652
Servicing Number: 002172 8 84 - 5
Date: 06/08/06
sums secured by this Mortgage, Lender prior to acceleration shall give notice to Borrower as provided in paragraph
12 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, not less than 10 days
from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure
such breach on or before the date specified in the notice may result in acceleration of the sums secured by this
Mortgage. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring
court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the
breach is not cured on or before the date specified in the notice, Lender, at Lender's option, may declare all of the
sums secured by this Mortgage to be immediately due and payable without further demand and may invoke the
power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all reasonable
costs and expenses incurred in pursuing the remedies provided in this paragraph 17, including, qut not limited to,
reasonable attorneys' fees.
If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the
person in possession of the Property, if different, in accordance with applicable law. Lender shall mail a copy of
a notice of the sale to Borrower in the manner provided in paragraph 12 hereof. Lender shall publish the notice
of sale and the Property shall be sold in the manner prescribe by applicable law. Lender or Lender's designee may
purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all
reasonable costs and expenses of the sale, including, but not limited to, reasonable attorneys' fees and costs of title
evidence; (b) to all sums secured by this Mortgage; and (c) the excess if any, to the person or persons legally
entitled thereto.
18. Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this
Mortgage due to Borrower's breach, Borrower shall have the right to have any proceedings begun by Lender to
enforce this Mortgage discontinued at any time prior to the earlier to occur of (i) the fifth day before sale of the
Property pursuant to the power of sale contained in this Mortgage or (ii) entry of a judgment enforcing this
Mortgage if: (a) Borrower pays Lender all sums which would be then due under this Mortgage and the Note had
no acceleration occurred; (b) Borrower cures all breaches of any other covenants or agreements of Borrower
contained in this Mortgage; (c) Borrower pays all reasonable expenses incurred by Lender in enforcing the
covenants and agreements of Borrower contained in this Mortgage, and in enforcing Lender's remedies as provided
in paragraph 17 hereof, including, but not limited to, reasonable attorneys' fees; and (d) Borrower takes such action
as to Lender may reasonably require to assure that the lien of this Mortgage, Lender's interest in the Property and
Borrower's obligation to pay the sums secured by this Mortgage shall continue unimpaired. Upon such payment and
cure by Borrower, this Mortgage and the obligations secured hereby shall remain in full force and effect as if no
acceleration had occurred.
19. Assignment of Rents; Appointment of Receiver. As additional security hereunder, Borrower hereby
assigns to Lender the rents of the Property, provided that Borrower shall, prior to acceleration under paragraph 17
hereof or abandonment of the Property, have the right to collect and retain such rents as they become due and
payable.
Upon acceleration under paragraph 17 hereof or abandonment of the Property, and at any time prior to the
expiration of any period of redemption following judicial sale, Lender, in person, by agent or by judicially appointed
receiver, shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the
Property including those past due. All rents collected by the receiver shall be applied first to payment of the costs
of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on
receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Mortgage. Lender and the
receiver shall be liable to account only for those rents actually received.
20. Release. Upon payment of all sums secured by this Mortgage, Lender shall release this Mortgage
without charge to Borrower. Borrower shall pay all costs of recordation, if any.
21. Waiver of Homestead. Borrower hereby waives all right of homestead exemption in the Property.
22. Lost, Stolen, Destroyed or Mutilated Security Instrument and Other Documents. In the event of the
loss, theft or destruction of the Note, any other notes secured by this Security Instrument, the Security Instrument
or any other documents or instruments executed in connection with the Security Instrument, Note or notes
(collectively, the "Loan Documents"), upon Borrower's receipt of an indemnification executed in favor of Borrower
by Lender, or, in the event of the mutilation of any of the Loan Documents, upon Lender's surrender to Borrower
of the mutilated Loan Document, Borrower shall execute and deliver to Lender a Loan Document in form and
content identical to, and to serve as a replacement of, the lost, stolen, destroyed, or mutilated Documents, and may
be treated for all purposes as the original copy of such Loan Document.
23. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded
together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into
and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were
a part of this Security Instrument.
[Check applicable.þox(es)]
D Adjustable Rate Rider
D No Prepayment Penalty Option Rider
D Other(s) (specify)
D Condominium Rider
D Planned Unit Development Rider
D 1-4 Family Rider
D Occupancy Rider
WYOMING - SECOND MORTGAGE
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Initials:
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COOG35
Loan Number: 321034652
Servicing Number: 002172884 - 5
Date: 06/08/06
, REQUEST FOR NOTICE OF DEFAULT
AND FORECLOSURE UNDER SUPERIOR
MORTGAGES OR DEEDS OF TRUST
Borrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien
which has priority over this Mortgage to give Notice to Lender, at Lender's address set forth on page one of this
Mortgage, of any default under the superior encumbrance and of any sale or other foreclosure action.
IN WITNESS WHEREOF, Borrower has executed this Mortgage.
~~(Seal)
CURT M. CANNON -Borrower
..
(Seal)
-Borrower
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STEPHAN~~tIRE v . \ -80=""
(Seal)
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
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STATE OF V{YOMING,
(Sign Original Only)
~~
County S8:
The foregoing instrument was acknowledge,d before me this
by
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Notary Public
Fleeldlng at Idaho FaUl, Idaho
MV Commission ExpIres: 01/30/09
My Commission Expires:
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NOTARY PUBLIC ..~
LENORE J. KATRI ~
STATE OF'IDAHO ~
[Space below This Line Reserved For Lender and Recorder]
WYOMING - SECOND MORTGAGE
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