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HomeMy WebLinkAbout941918 g ~~ 601081705: Prepared By: CHERRY CREEK MORTGAGE CO., INC. 7600 E. ORCHARD RD #250-N GREENWOOD VILLAGE, CO 80111 RECEIVED 9/212008 at 3:59 PM RECEIVING # 941918 BOOK: 703 PAGE: 903 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY After Recording Return To: CHERRY CREEK MORTGAGE co., INC. 7600 EAST ORCHARD ROAD #250-N GREENWOOD VILLAGE,C080111 OOG903 [Space Abave 111Ïs Line For Recording Data] MORTGAGE WESTON Loall#: 73200401 PIN: 12-3218-30-3-13-224 ~IN: 100030200732004013 /¿ \ ' c;l THIS MORTGAGE ("Security Instrument") is given on AUGUST 29, 2008. The Mortgagor is MONI CA L. WESTON, AN UNMARRIED WOMAN ("Borrower"). This Security Instrument is given to Mortgage Electronic Registration Systems, Inc. ("MERS") (solely as nominee for Lender, as hereinafter defmed, and Lender's successors and assigns), as beneficiary. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. CHERRY CREEK MORTGAGE CO., INC., which is organized and existing under the laws of THE STATE OF COLORADO, and whose address is 7600 E. ORCHARD RD #250-N, GREENWOOD VILLAGE, CO 80111 ("Lendcr"). Borrower owes Lender the principal sum of ONE HUNDRED FIFTY NINE THOUSAND EIGHT HUNDRED EIGHTY NINE Dollars (U.S. $159 , 889 . 00). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on SEPTEMBER 1, 2038. This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns ofMERS, Witll power of sale, the following described property located in LINCOLN County, Wyoming: LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF. which has the address of 56 5TH STREET, AFTON, WY 8311 0 ("Property Address"); \ 1 TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, 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 tlÜs Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument; but, if necessary to comply with law or custom, MERS (as nominee for Lcnder and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing or canceling this Security Instrument. 1êY 413.2 Page 1 of 8 FHA Wyoming Deed of Trust (:Ov'904 73200401 BORROWER COVENANTS 1hat Borrower is lawfully seised of1he estate hereby conveyed and has 1he right to mortgage, grant and convey 1he Property and 1hat the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally 1he title to the Property against all claims and demands, subject to any encumbrances ofrecord. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants wi1h 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, Interest and Late Charge. Borrower shall pay when due the principal of, and interest on, 1he debt evidenced by 1he Note and late charges due under 1he Note. 2. Monthly Payment of Taxes, Insurance, and Other Charges. Borrower shall include in each monthly payment, together wi1h the principal and interest as set forth in 1hc Note and any late charges, a sum for (a) taxes and special assessments levied or to be levied against 1he Property, (b) leasehold payments or ground rents on1he Property, and (c) premiums for insurance required under Paragraph 4. In any year in which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban Development ("Secretary"), or in any year in which such premium would have been required if Lender still held 1he Security Instrument, each monthly payment shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a mon1hly charge instead of a mortgage insurance premium if1his Security Ins1rument is held by the Secretary, in a reasonable amount to be determined by the Secretary. Except for the mon1hly charge by the Secretary, thcse items are called "Escrow Items" and 1he sums paid to Lender are called "Escrow Funds." Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed 1he maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as 1hey may be amended from time to time ("RESP A"), except 1hat the cushion or reserve pemÜtted by RESPA for unanticipated disbursements or disburscmcnts before the Borrower's payments are available in 1he account may not bc based on amounts due for the mortgage insurance premium. If the amounts held by Lender for Escrow Items exceed 1he amounts permitted to be held by RESP A, Lender shall account to Borrower for 1he cxcess funds as required by RESP A. If the amounts of funds held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the shortage as permitted by RESP A. The Escrow Funds are pledged as additional security for all sums secured by 1his Security Instrument. If Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with 1he balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installinent that Lender has not become obligated to pay to 1hc Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure sale of 1he 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 Payments. All payments under Paragraphs 1 and 2 shall be applied by Lender as follows: First. to the mortgage insurance premium to be paid by Lender to 1he Secrctary or to the monthly charge by 1he Secretary instead of1he mon1hly mortgage insurancc premium; Second. to any taxes, special asscssmcnts, leasehold paymcnts or ground rcnts, and fire, flood and o1her hazard insurance prcmiums, as required; Tillrd. to interest due under 1hc Note; Fourth. to amortization of the principal OftllC Note; and 5f!J:!. to late charges due under 1he Note. 'IêY 413.2 Page 2 of 8 FHA Wyoming Deed of Trnst 00G905 73200401 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in existence 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 Properly, 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 Lcnder immediate notice by mai1. Lender may make proof of loss if not made promptly by Borrower. Each insurance company concerncd is hereby authorized and directed to make payment for such loss directly to Lender, instead ofto Borrower and to Lender jointly. All or any part of the insurancc proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrumcnt, tust 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 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. 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 within sixty days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's contro1. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Properly if the Property is vacant or abandoned or the loan is in default. Lcnder may take reasonable action to protect and preserve such vacant or abandoned Property. 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 Properly as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the provision 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. 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 paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, fIrst to any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. 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 proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to thc entity legally entitled thereto. 7. Charges to Borrower and Protection of Lender's Rights in the Propcrty. Borrower shall pay all governmental or municipal charges, [mes and impositions that are not included in Paragraph 2. Borrower "E3' 413.2 Page 3 of 8 FHA Wyoming Deed of Trust OOG906 73200401 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. If Borrower fails to make these 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 Lendcr'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 whatevcr is necessary to protect the value of the Property and Lender's rights in tlle 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 InstrUlllent. These amounts shall bear interest from the date of disbursement at the Note rate, and at the option of Lender shall be immediately due and payable. Borrower shall promptly discharge any lien which has priority ovcr 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 dcfends against enforcement of the lien in, legal proceedings which in the Lcnder's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to 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. 8. Fees. Lender may collect fees and charges authorized by tlle Secretary. 9. Grounds for Acceleration of Debt. (a) Default. Lender may, except as limited by regulations issued by the Secretary in the case of payment defaults, require immediate payment in f-ull of all sums secured by this Security Instmment if: (i) Borrower defaults by failing to pay in full any monthly payment required by this Security Instrument prior to or on the due date of the next monthly payment, or (ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in this Security Instrument. (b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including section 34l(d) of the Gam-St Germain Depository Institutions Act ofl982, 12 U.S.C. l70lj-3(d» and with the prior approval of the Secrctary, require immediate payment in full of all sums secured by this Security Instrument if; (i) Allor part of the Property, or al beneficial interest in a trust owning all or part of the Property, is sold or otherwise transferred (other than by devise or descent) and (ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the purchaser or grantee does so occupy the Property but his or her credit has not been approved in accordance with the requirements of the Secretary. (c) No W aivcr. If circumstances occur that would permit Lender to require immediate payment in full, but Lender does not require such payments, Lender does not waive its rights with respect to subsequent events. (d) Regulations ofHUD Secretary. In many circumstances regulations issued by the Secretary will limit Lender's rights in the case of payment defaults, to require immediate payment in full and foreclose if not paid. This Security Instrument does not authorize acceleration or foreclosure if not permitted by regulations of the Secretary. (e) Mortgage Not Insured. Borrower agrees that should this Security Instrument and the Note are not to be eligiblc for insurance under the National Housing Act within 60 days from the date hereof, Lender may, at its option, requÌIe immediate payment in full of all sums secured by this Security Instrument. A written statement of any authorized agent of the Secretary dated 'ê.Y 413.2 Page 4 of 8 FHA Wyoming Deed of Trust 000907 73200401 subsequent to 60 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 Lcnder whcn the unavailability of insurance is solely due to Lender's failure to remit a mortgagc insurance premium to the Secretary. 10. Reinstatement. Borrower has a right to bc reinstated if Lender has required inlmediate payment in full bccause of Borrower's failure to pay an amount due under the Note or this Security Instrument. This right applies cven after foreclosure proceedings are instituted. To reinstate the Security Instrument, Borrowcr shall tender in a lump sum all amounts required to bring Borrower's account current including, to the extent they are obligations of Borrower under this Security Instrument, foreclosure costs and reasonable and customary attorney's fees and expenses properly associated with thc foreclosure proceeding. Upon reinstatement by Borrowcr, this Security Instrument and thc obligations that it secures shall remain in effect as if Lender had not required immcdiatc payment in full. However, Lender is not requircd to permit reinstatemcnt if: (i) Lender has accepted reinstatemcnt after thc commencement of foreclosure proceedings within two years immediately preccding the commencement of a current foreclosure proceeding, (ii) reinstatemcnt will prcclude forcclosure on different grounds in the futmc, or (iii) reinstatement will advcrscly affect the priority of the lien creatcd by this Security Instrument. 11. Borrower Not Releasc; Forbcarance By Lendcr Not a Waivcr. Extcnsion of the time of payment or modification of amortization of the sums secmed by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successor in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of thc sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lcnder in cxercising any right or remcdy shall not be a waiver of or prcclude the exercisc of any right or rcmedy. 12. Successors and Assigns Bound; Joint and Scvcral Liability; Co-signers. The covenants and agrecments of this Security Instrument shall bind and bencfit the successors and assigns of Lendcr and Borrower, subjcct to the provisions of Paragraph 9(b). Borrowcr's covcnants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrumcnt but does not exccute the Note: (a) is co- signÍll.g this Security Instrumcnt only to mortgage, grant and convey that Bon'ower's interest in the Propcrty under the tenns of this Security Instrument; (b) is not personally obligated to pay the sums sccured by tilis Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the tenns of this Security Instrument or the Note witilOut that Borrower's consent. 13. Notices. Any notice to Borrower provided for in this Security Instrument shall bc givcn by delivering it or by mailing it by first class mail unless applicablc law requires use of another method. The notice shall be directed to the Property Address or any other addrcss Borrower designates by notice to Lcnder. Any noticc to Lender shall be given by first class mail to Lendcr's address statcd herein or any address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when givcn as provided in this paragraph. 14. Governing Law; Sevcrability. This Security Instrument shall be governed by Federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or thc Note conflicts Witil applicable law, such conflict shall not affect other provisions of this Security hlstrument or tile Note which can be given effect without tilC conflicting provision. To this end tile provisions of this Security Instrument and the Note arc declared to be severable. 15. Borrower's Copy. Borrower shall be given one confonned copy of the Note and of this Security Instrument. 16. Hazardous Substances. Borrower shall not cause or pennit the presence, use, disposal, storage, '<!& 413.2 Page 5 of 8 FHA Wyoming Deed of Trust 000908 73200401 or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of Property. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substances affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 16, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 16, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. NON-UNJFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 17. Assignment of Rents. Borrower unconditionally assigns and transfers to Lender all the rents and revenues of the Property. Borrower authorizes Lender or Lender's agents to collect the rents and revenues and hereby directs each tenant of the Property to pay the rents to Lender or Lender's agents. However, prior to Lender's notice to Borrower of Borrower's breach of any covenant or agreement in the Security Instrument, Borrower shall collect and receive all rents and revenues of the Property as trustee for the benefit of Lender and Borrower. This assignment of rents constitutes an absolute assignment and not an assignment for additional security only. If Lender gives notice of breach to Borrower: (a) all rents received by Borrower shall be held by Borrower as trustee for benefit of Lender only, to be applied to the sums secured by the Security Instrument; (b) Lender shall be entitled to collect and receive all oftlle rents of the Property; and (c) each tenant of the Property shall pay all rents due and unpaid to Lender or Lender's agent on Lender's written demand to the tenant. Borrower has not executed any prior assignment of the rents and has not and will not perform any act that would prevent Lender from exercising its rights under this Paragraph 17. Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice of breach to Borrower. However, Lender or a judicially appointed receiver may do so at any time there is a breach. Any application of rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment of rents of the Property shall terminate when the debt secured by the Security Instrument is paid in full. 18. Foreclosure Procedure: If Lender requires immediate payment in full under Paragraph 9, Lender may foreclose this Security Instrument either by advertisement and sale of the Property as provided by statute (the power of sale provided for by statutc being hereby expressly granted to Lender by Borrower) or by an action in equity, and may invoke any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 18, including, but not limited to, reasonable attorney's fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in posscssion of the Property, if different, in accordance with applicable law. Lender shall give notice of its intent to foreclose to Borrower in the manner provided in paragraph 13. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by applicable law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following "êY 413.2 Page 6 of 8 FHA Wyoming Deed of Tl'ust 006909 73200401 order: (a) to all expenses of ilie sale, including, but not limited to, reasonable attorney's fees; (b) to all sums secured by this Security fustrument; and (c) any excess to ilie person or persons legally entitled to it. Ifilie Lender's interest in iliis Security fustrument is held by ilie Secretary and ilie Secretary requires immediate payment in f11ll under Paragraph 9, the Secretary may invoke the nonjudicial power of sale provided in ilie Single Family Mortgage Foreclosure Act of 1994 ("Act") (12 U.S.C. 3751 et seq.) by requesting a foreclosure commissioner designated under ilie Act to commence foreclosure and to sell ilie Property as provided in ilic Act. Nothing'in ilie preceding sentence shall deprive ilie Secretary of any rights oilierwise available to a Lender under iliis Paragraph 18 or applicable law. 19. Release. Upon payment of all sums secured by this Security fustrument, Lender shall release this Security Instrument to Borrower. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security fustrument, but only ifilie fee is paid to a third party for services rendered and the charging of the fee is penuitted under applicable law. 20. Waivers. Borrower hereby releases and waives all rights in the Property under and by virtue of the homestead exemption laws of the State of Wyoming and hereby relinquishes all rights of curtsey and dower in the Property. 21. Riders to this Security Instrumcnt. If one or more riders arc executed by Borrower and recorded togeilier with this Security fustrument, thc covenants and agreements of each such rider shall be incorporated into and shall amend and supplemcnt the covenants and agreements ofiliis Security fustrwnent as if the rider(s) were a part of this Security fustrwnent. The Following Rider(s) arc to be executed by Borrower and are attachcd hereto and made a part thereof [check box as applicable]: o Condominium Rider o Planned Unit Development Rider o Other( s) [specify] o Growing Equity Rider o Graduated Payment Ridcr ~ Adjustable Rate Rider BY SIGNING BELOW, Borrower accepts and agrees to the tenus and covenants contained in this Security fustrwnent and in any rider(s) executed by Borrower and recorded witll it. ~R~_· ~~STON ~~}~\~~ 'êY 413.2 Page 7 of 8 FHA Wyoming Deed ofTl'Ust OOû9:10 73200401 [Space Below This Lillo For Acknowledgmonl] STATE OF WYOMING COUNTY OF LINCOLN The foregoing instrument was acknowledged before me on MONICA L. WESTON, AN UNMARRIED WOMAN. g-~9-()g by NO~~ /~.4y~ My Commission Expires: 9-/.5-/) NOTARY PUBLIC County of Lincoln State of Wyoming My Commission Expires September 15, 20111 ,;..~""""'..~" 113' 413.2 Pago 8 of 8 FHA Wyoming Deed of Trust OOG91.:1 FHA MULTISTATE ADJUSTABLE RATE RIDER WESTON Lonn#: 73200401 MIN: 100030200732004013 FHACnseNo: 591-1055889-729 THIS ADJUSTABLE RATE RIDER is made this 29TH day of AUGUST, 2008 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed ("Security Ins1rument") of the same date given by the undersigned ("Borrower") to secure BOITower's Note ("Note") to CHERRY CREEK MORTGAGE CO., INC., (the "Lender") of the same date and covering the property described in the Security Ins1rument and located at: 56 5TH STREET,AFTON,WY83110 [property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWERS INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agrcc as follows: INTEREST RATE AND MONTEL Y PAYMENT CHANGES (A) Change Rate The interest rate may change on the first day of JANUARY, 2012, and on that day of each succeeding year. "Change Date" means each date on which the interest rate could change. (B) The Index Beginning with the fIrst Change Date, the interest rate will bc based on an Index. "bldex" means 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. "Current Index" means the most recent Index fIgure available ê 901.2 Page 1 of 3 FHA MuItislale ARM Rider - 03/04 00091.2 73200401 30 days before the Change Date. If the Index (as defined above) is no longer available, Lender will use as a new Index any index prescribed by the Secretary. As used in this Rider, "Secretary means the Secretary of Housing and Urban Developmcnt or his or her designee." Lender will give BOlTower notice of the new Index. (C) Calculation ofInterest Rate Changes Before each Change Date, Lender will calculate a new interest rate by adding a margin of TWO AND ONE-FOURTH percentage point(s) (2 .2 S 0%) to the Current Index and rounding the sum to the nearest one- eighth of one percentage point (0.125%). Subject to the limits stated in Paragraph (D) of this Rider, this rounded amount will be the new interest rate until the next Change Date. (D) Limits on Interest Rate Changes The interest rate will never increase or decrease by more than ONE percentage point(s) (1. 000%) on any single Change Date. The interest rate will never be more than FIVE percentage points (S . 000%) higher or lower than the initial interest rate. (E) Calculation of Payment Change If the interest rate changes on a Change Date, Lender will calculate the amount of monthly payment of principal and interest which would be necessary to repay the unpaid principal balance in full at the maturity date at the new interest rate through substantially equal payments. In making such calculation, Lender will use the unpaid principal balance which would be owed on the Change Date if there had been no default in payment on the Note, reduced by the amount of any prepayments to principal. The result of this calculation will be the amount of the new monthly payment of principal and interest. (F) Notice of changes Lender will give notice to Borrower of any change in the interest rate and monthly payment amount. The notice must be given at least 25 days bcfore the new monthly payment amount is due, and must set forth (i) the date of the notice, (ii) the Change Date, (iii) the old interest rate, (iv) the new interest rate, (v) the new monthly payment amount, (vi) the Current Index and the date it was published, (vii) the method of calculating the change in montWy payment amount, and (viii) any other information which may be required by law rrom time to time. (G) Effectivc Date of Changes A new interest rate calculated in accordance Witll Paragraphs (C) and (D) of this Rider will become effective on the Change Date. BOlTower shall make a payment in the new monthly amount beginning on the fIrst payment date which occurs at least 25 days after Lender has given Borrower the notice of changes required by Paragraph (F) of this Rider. Borrower shall have no obligation to pay any increase in the montllly payment amount calculated in accordance with Paragraph (E) of this Rider for any payment date OCCUlTing less than 25 days after Lender has given the required notice. If the monthly payment amount calculated in accordance with Paragraph (E) of this Rider decreased, but Lender failed to give timely notice of the decrease and Borrower made any monthly payment amounts exceeding the payment amount which should have been stated in a timely notice, then Borrower has the option to either (i) demand the return to BOlTower of any excess payment, with intcrest thereon at the Note rate (a rate equal to the intercst rate which should have been stated in a timely notice), or (ii) request that any excess payment, with interest thereon at the Note rate, be applied as payment of principal. Lender's obligation to retll1"n any excess payment with interest on demand is not assignable cven if the Note is otherwise assigned before the demand for return is made. 'Ë>Þ 901.2 Page 2 of 3 FHA Multlstate ARM Rider - 03/04 00691.3 73200401 BY SIGNING BELOW, Borrower accepts and agrecs to the terms and covenants contained in this Adjustable Rate Rider. ORROWER - MONICA L. WESTON - D TE - 'êY 901.2 Pag" 3 of 3 FHA Multistate ARM Rider - 03/04 Exhibit A File 6010817055 Description 00091.~ The land referred to in this document is situated in the State of Wyoming, County of Lincoln, and is described as follows: Parcell: Part of Lot 1 of Block 29 of the Afton Townsite, Lincoln County, Wyoming, described as follows: Commencing at the Northwest corner of said Lot 1 and running thence East 66 feet; thence South 125 feet; thence West 66 feet; thence North 125 feet to the Point of Beginning. Parcel 2: Part of Lot 2 of Block 29 of the Afton Townsite, Lincoln County, Wyoming, described as follows: ' Beginning at the Northeast corner of said Lot 2 and running thence West 10 feet; thence South 125 feet; thence East 10 feet;" thence North 125 feet to the Point of Beginning. ,"".........."'...... .,....,-~-,-,.- .-~--_._- _. ---.