HomeMy WebLinkAbout940433
WHEN RECORDED ~ETURN TO:
Equity Loan ServIces, In~òo
1100 superior Ave., Ste.
Cleveland, O~ 441~~LS
National Recordmg -
[Space Above This Une For Recording Data]
State of Wyoming FHA Case No.591-1027389 952
ADJUSTABLE RATE
HOME EQUITY CONVERSION MORTGAGE
RECEIVED 7/10/2008 at 2:14 PM
RECEIVING # 940433
BOOK: 699 PAGE: 594
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
\:>Oc-S94
THIS MORTGAGE (" Security Instrument") is given on
mortgagor is DELOYD H BITHELL, A MARRIED PERSON
06/09/08 . The
whose address is 256 JEFFERSON ST, AFTON, WY 83110
(" Borrower"). This
Security Instrument is given to WELLS FARGO BANK, N,A.
(
which is organized and existing under the laws of THE UNITED STATES
and whose address is
P.o. BOX 11701
NEWARK NJ 071014701 ("Lender"). Borrower
has agreed to repay to Lender amounts which Lender is obligated to advance, including future
advances, under the terms of a Home Equity Conversion Loan Agreement dated the same date as
this Security Instrument (" Loan Agreement"). The agreement to repay is evidenced by Borrower's
Note dated the same date as this Security Instrument (" Note"). This Security Instrument secures to
Lender: (a) the repayment of the debt evidenced by the Note, with interest at a rate subject
to adjustment, and all renewals, extensions and modifications of the Note, up to a maximum
principal amount of TWO HUNDRED SEVENTEEN THOUSAND FIVE HUNDRED AND 00/100
ct
(U.S. $ 217500.00 ); (b) the payment of all other sums, with interest, advanced
under Paragraph 5 to protect the security of this Security Instrument or otherwise due under the
terms of this Security Instrument; and (c) the performance of Borrower's covenants and
agreements under this Security Instrument and the Note. The full debt, including amounts described
in (a), (b), and (c) above, if not paid earlier, is due and payable on
FEBRUARY 28TH , 2092. For this purpose, Borrower does hereby mortgage, grant and çonvey
to Lender, with power of sale, the following described property located in
LINCOLN County, Wyoming:
0085973451
NMFL #881 OWY (QMWY) Rev 8/3/2005
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SEE EXHIBIT A
which has the address of
256 JEFFERSON ST
[Street]
AFTON, WY 83110
[City, State, Zip]
(" Property Address");
TOGETHER WITH all the improvements now or hereafter erected on the property, and all
easements, rights, appurtenances, and fixtures now or hereafter a part of the property. All
replacements and additions shall also be covered by this Security Instrument. All of the foregoing is
referred to in this Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed
and has the right to mortgage, grant and convey the Property and that the Property is
unencumbered. Borrower warrants and will defend generally the title to the Property against all
claims and demands, subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and
non-uniform covenants with limited variations by jurisdiction to constitute a uniform security
instrument covering real property.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1, Payment of Principal and Interest. Borrower shall pay when due the principal of, and
interest on, the debt evidenced by the Note.
2. Payment of Property Charges. Borrower shall pay all property charges consisting of taxes,
ground rents, flood and hazard insurance premiums, and special assessments in a timely manner,
and shall provide evidence of payment to Lender, unless Lender pays property charges by
withholding funds from monthly payments due to the Borrower or by charging such payments to a
line of credit as provided for in the Loan Agreement.
3. Fire, Flood and Other Hazard Insurance, Borrower shall insure all improvements on the
Property I whether now in existence or subsequently erected, against any hazards, casualties, and
contingencies, including fire. This insurance shall be maintained in the amounts, to the extent and
for the periods required by Lender or the Secretary of Housing and Urban Development
(" Secretary"). Borrower shall also insure all improvements on the Property, whether now in
existence or subsequently erected, against loss by floods 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 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 to Lender instead of to Borrower and to
Lender jointly. Insurance proceeds shall be applied to restoration or repair of the damaged Property,
if the restoration or repair is economically feasible and Lender's security is not lessened. If the
restoration or repair is not economically feasible or Lender's security would be
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lessened, the insurance proceeds shall be applied first to the reduction of any indebtedness under a
Second Note and Second Security Instrument held by the Secretary on the Property and then to the
reduction of the indebtedness under the Note and this Security Instrument. Any excess insurance
proceeds over an amount 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 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.
4. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's
principal residence after the execution of this Security Instrument, and Borrower (or at least one
Borrower, if initially more than one person are Borrowers) shall continue to occupy the Property as
Borrower's principal residence for the term of the Security Instrument. "Principal residence" shall
have the same meaning as in the Loan Agreement.
Borrower shall not commit waste or destroy, damage or substantially change the Property
or allow the Property to deteriorate, reasonable wear and tear excepted. Borrower shall also be in
default if Borrower, during the loan application process, gave materially false or inaccurate
information or statements to Lender (or failed to provide Lender with any material information) in
connection with the loan evidenced by the Note, including, but not limited to, representations
concerning Borrower's occupancy of the Property as a principal residence. If this Security
Instrument is on a leasehold, Borrower 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 Lender
agrees to the merger in writing.
5. Charges to Borrower and Protection of Lender's Rights in the Property. 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. If
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. Borrower shall
promptly discharge any lien which has priority over this Security
Instrument in the manner provided in Paragraph 12(c).
If Borrower fails to make these payments or the property charges 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 may 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.
To protect Lender's security in the Property, Lender shall advance and charge to Borrower
all amounts due to the Secretary for the Mortgage Insurance Premium as defined in the Loan
Agreement as well as all sums due to the loan servicer for servicing activities as defined in the Loan
Agreement. Any amounts disbursed by Lender under this Paragraph shall become an additional debt
of Borrower as provided for in the Loan Agreement and shall be secured by this Security
Instrument.
6. Inspection. Lender or its agent may enter on, inspect or make appraisals of the Property
in a reasonable manner and at reasonable times provided that Lender shall give the Borrower notice
prior to any inspection or appraisal specifying a purpose for the inspection or appraisal which must
be related to Lender's interest in 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 without notice to the Borrower.
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 shall be paid to Lender. The proceeds shall be applied
first to the reduction of any indebtedness under a Second Note and Second Security Instrument
held by the Secretary on the Property, and then to the reduction of the indebtedness under the
Note and this Security Instrument. Any excess proceeds over an amount required to pay all
outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity
legally entitled thereto.
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8. Fees. Lender may collect fees and charges authorized by the Secretary.
9. GrQunds fQr AccelelëJtion of Debt.
(a) Due and Payable. Lender may require immediate payment in full of all sums secured by
this Security Instrument if:
(i) A. !3orrower dies and the Property is not the principal residence of at least one
surviVing Borrower; or
(ii) All of a Borrower's title in the Property (or his or her beneficial interest in a trust
owning all or part of the Property) IS sold or otherwise transferred and no other
Borrower retains title to the Property. in fee simple or retains a leasehold under a lease
for less than 99 years wtiich is renewable or a lease having a
remaining period of not less than 50 years beyond the date of the 100th birthday of
the youngest Borrower or retains a life estate (or retaining a beneficial interest in a trust
with sucn an interest in the Property).
(b) Due and Payable with Secretary Approval. Lender may require immediate payment in
full of all sums secured by this Security Instrument, upon approval of the Secretary, if:
(i) The Property ceases to be the principal residence of a Borrower for reasons other
than death and the Property is not the principal residence of at least one other
Borrower; or
(ii) For a period of longer than twelve (12) consecutive months, a Borrower fails to
occuPy the Property because of physicaf or mental illness and the Property is not the
principal residence of at least one other Borrower; or
(iii) An obligation of the Borrower under this Security Instrument is not performed.
Cc) Notice to Lender. Borrower shall notify Lender whenever any of the events listed in
this Paragraph (a) (ii) or (b) occur.
(d) Notice to Secretary and Borrower. Lender shall notify the Secretary' and Borrower
whenever the loan becomes due and payable under Paragraph 9 (a) (ij) or (b). Lender shall
not have the right to commence foreclosure until Borrower has had thirty (30) days after
notice to either:
(i) Correct the matter which resulted in the Security Instrument coming due and
payable; or
(ii) Pay the balance in full; or
(iil) Sell the Property for the lesser of the balance or 95% of the appraised value and
apply the net proceeds of the sale toward the balance; or
(iv) Provide the Lender with a deed in lieu of foreclosure.
(e) Trusts. Conveyance of a Borrower's interest in the Property to a trust which meets the
requirements of the Secretary, or conveyance of a trust's interests in the Property to a
Borrower, shall not be considered a conveyance for purposes of this Paragraph 9. A trust
shall not be considered an occupant or be considered as having a principal residence for
purposes of this Paragraph 9.
(f) Mortgage Not Insured. Borrower agrees that should this Security Instrument and the
Note not be eligible for insurance under the National Housing Act within
SIXTY DAYS from the date hereof, if rermitted by applicable law Lender may,
at its option, require immediate payment in ful of all sums secured by this Security
Instrument. A written statement of any authorized agent of the Secretary dated
subsequent to SIXTY DAYS from the date hereof, declining to' insure this Security
Instrument and the Note, shall be deemed conclusive proof of such ineligibility.
Notwithstanding the foregoing, this option may not be exercised by Lender when the
unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance
premium to the Secretary.
10. No Deficiency Judgments. Borrower shall have no personal liability for payment of the
debt secured by this Security Instrument. Lender may enforce the debt only through sale of the
Property. Lender shall not be permitted to obtain a deficiency judgment against Borrower if the
Security Instrument is foreclosed. If this Security Instrument is assigned to the Secretary upon
demand by the Secretary, Borrower shall not be liable for any difference between the mortgage
insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest,
owed by Borrower at the time of the assignment.
11. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate
payment in full. This right applies even after foreclosure proceedings are instituted. To reinstate
this Security Instrument, Borrower shall correct the condition which resulted in the requirement for
immediate payment in full. Foreclosure costs and reasonable and customary attorneys' fees and
expenses properly associated with the foreclosure
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proceeding shall be added to the principal balance. Upon reinstatement by Borrower, this Security
Instrument and the obligations that it secures shall remain in effect as if Lender had not required
immediate payment in full. However, Lender is not required to permit reinstatement if: (i) Lender
has accepted reinstatement after the commencement of foreclosure proceedings within two years
immediately preceding the commencement of a current foreclosure proceeding, (ii) reinstatement
will preclude foreclosure ön different grounds in the future, or (iii) reinstatement will adversely affect
the priority of the Security Instrument.
1 2. Uen Status.
(a) Modification. Borrower agrees to extend this Security Instrument in accordance with this
Þaragraph 12(a). If Lender determines that the original lien status of the Security Instrument
is jeopardized under state law (including but not limited to situations where the amount
secured by the Security Instrument equals or exceeds the maximum principal amount stated
or the maximum period under which loan advances retain the same lien priority initially
granted to loan advances has expired) and state law permits the original lien status to be
maintained for future loan advances through the execution and recordation of one or more
documents, then Lender shall obtain title evidence at Borrower's expense. If the title
evidence indicates that the Property is not encumbered by any liens (except this Security
Instrument, the Second Security Instrument described in Paragraph 13(a) and any
subordinate liens that the Lender determines will also be subordinate to any future
loan advances), Lender shall request the Borrower to execute any documents necessary to
protect the lien status of future loan advances. Borrower agrees to execute such
documents. If state law does not permit the original lien status to be extended to future loan
advances, Borrower will be deemed to have failed to have performed an obligation under
this Security Instrument.
(b) Tax Deferral Programs. Borrower shall not participate in a real estate tax deferral
program, if any liens created by the tax deferral are not subordinate to this Security
Instrument.
(c) Prior Uens. Borrower shall promptly discharge any lien which has priority over this
Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation
secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by,
or defends against enforcement of the lien in, legal proceedings which in the Lender s
opinion operate to prevent the enforcement of the lien or forfeiture of any part of the
Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender
subordinating the lien to all amounts secured by this Security Instrument. If Lender
determines that any part of the Property is subject to a lien which may attain priority over
this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower
shall satisfy the lien or take one or more of the actions set forth above within 10 days of
the giving of notice.
13. Relationship to Second Security Instrument.
(a) Second Security Instrument. In order to secure payments which the Secretary may make
to or on behalf of Borrower pursuant to Section 255(j)(1 )(A) of the National Housing Act
, and the Loan Agreement, the Secretary has required Borrower to execute a Second Note
and a Second Security Instrument on the Property.
(b) Relationship of First and Second Security Instruments. Payments made by the Secretary
shall not be included in the debt under the Note unless:
~') This Security Instrument is assigned to the Secretary· or
ÌI) The Secretary accepts reimbursement by the Lender for all payments made by the
ecretary.
If the circumstances described in (i) or (ij) occur, then all payments by the Secretary,
including interest on the payments, but excluding late charges paid by the Secretary, shall
be included in the debt under the Note.
(c) Effect on Borrower. Where there is no assignment or reimbursement as described in
(b)(i) or (ii) and the Secretary makes payments to Borrower, then Borrower shall not:
(i) Be required to pay amounts owed under the Note, or pay any rents and revenues of
the Property under Paragraph 19 to Lender or a receiver of the Property, until the
Secretary has requirea payment in full of all outstanding principal and accrued interest
under the Second Note; or
(ii) Be obligated to pay interest or shared appreciation under the Note at any time,
whether accrued before or after the payments by the Secretary, and whether or not
accrued interest has been included in the principal balance under the Note.
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of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this
Security Instrument; and (c) any excess to the person or persons legally entitled to it.
21. Uen Priority. The full amount secured by this Security Instrument shall have the same
priority over any other liens on the Property as if the full amount had been disbursed on the date the
mitial disbursement was made, regardless of the actual date of any disbursement. The amount
secured by this Security Instrument shall include all direct payments by Lender to Borrower and all
other loan advances permitted by this Security Instrument for any purpose. This lien priority shall
apply notwithstanding any State constitution, law or regulation, except that this lien priority shall
not affect the priorty of any liens for unpaid State or local governmental unit special assessments or
taxes.
22. Adjustable Rate Feature. Under the Note, the initial stated interest rate of
3.660 % which accrues on the unpaid principal balance (" Initial Interest Rate") is subject
to change, as described below. When the interest rate changes, the new adjusted interest rate will
be applied to the total outstandin~ principal balance. Each adjustment to the interest rate will be
based upon the weekly average Yield on United States Treasury Securities adjusted to a constant
maturity of one year, as made available by the Federal Reserve Board in Statistical Release H.15
(519) (' Index") plus a margin. If the Index is no longer available, Lender will use as a new Index any
index prescribed by the Secretary. Lender will give Borrower notice of the new Index.
Lender will perform the calculations described below to determine the new adjusted interest
rate. The interest rate may cþ.w;1ge on the first day of SEPTEMBER 2008 , and on 0 that
day of each succeeding year l!J the first day of each succeeding month ("Change Date") until the
loan is repaid in full.
The value of the Index will be determined, using the most recent Index figure available thirty
(30) days before the Change Date ("Current Index"). Before each Change Date, the new interest rate
will be calculated by adding a margin to the Current Index. The sum of the margin plus the Current
Index will be called the" Calculated Interest Rate" for each Change Date. The Calculated Interest
Rate will be compared to the interest rate in effect immediately prior to the current Change Date (the
"Exi~' g Interest Rate").
(Annually Adjusting Variable Rate Feature) The Calculated Interest Rate cannot be more
than .0% higher or lower than the Existing Interest Rate, nor can it be more than 5.0% higher or
10we,l1j1an the Initial Interest Rate.
00 (Monthly Adjusting Variable Rate Feature) The Calculated Interest Rate will never
increase above THIRTEEN AND 660/1000 percent ( 13.660 %).
The Calculated Interest Rate will be adjusted if necessary to comply with these rate
limitation(s) and will be in effect until the next Change Date. At any Change Date, if the Calculated
Interest ~ate equals the Existing Interest Rate, the interest rate will not change.
23, Release. Upon payment of all sums secured by this Security Instrument, Lender shall
release this Security Instrument without charge to Borrower. Borrower shall pay any recordation
costs.
24. Waivers. Borrower waives all right of homestead exemption in the Property and
relinquishes all rights of curtesy and dower in the Property.
25. Obligatory Loan Advances, Lender's responsibility to make Loan Advances under the
terms of the Loan Ag~eement, including Loan Advances of principal to Borrower as well as Loan
Advances for interest, M IP, Servicing Fees, and other charges, shall be obligatory.
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26. Riders to this Security Instrument. If one or more riders are executed by Borrower and
recorded together with this Security Instrument, the covenants 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 box(es).]
D Condominium Rider D Shared Appreciation Rider D Planned Unit Development Rider
D Other (Specify)
BY SIGNING BELOW, Borrower accepts and agrees to the terms contained in this Security
Instrument and in any rider(s) executed by Borrower and recorded with it.
~
(Seal)
-Borrower
DELOYD . BITHELL
BERYLE L. BITHELL
(Seal)
-Borrower
(Seal)
-Borrower
[Space Below This Line For Acknowledgment]
State of ~~\~
County of 'u.~
This instrument was acknowledged before me this
ì- 2-0~
, by
DELOYD H. BITHELL
BERYLE L. BITHELL
CHERYL A. JONES - NOTARY PUBLIC
County Of. State of
Lincoln Wyoming
My Commission Expires Feb. 4, 2009
Ch~ I~ .JõVH~S
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Page B
Form No. 3301 (01/08)
Short Form Commitment
SUPER EAGLE
ORDER NO: 5349880
FILE NO: 36524753 ,
LENDER REF: 0085973451\"0('602
Exhibit" A"
The land referred to in this policy is situated in the STATE OF WYOMING, COUNTY OF LINCOLN, CITY
OF AFTON, and described as follows:
BEGINNING AT THE SOUTHEAST CORNER OF LOT 1, OF BLOCK 9, AFTON TOWNSITE, LINCOLN COUNTY,
WYOMING, AND RUNNING THENCE NORTH 74.5 FEET; THENCE WEST 13.5 FEET; THENCE NORTH 2 FEET;
THENCE WEST 30 FEET; THENCE NORTH 6 FEET; THENCE WEST 8.5 RODS; THENCE SOUTH 5 RODS;
THENCE EAST 18.5 RODS TO THE POINT OF BEGINNING.
APN :32-18-303-03-043-043-00
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37883735
FIRST AMERICAN ELS
MORTGAGE
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