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HomeMy WebLinkAbout878045 Return To: HOMECOMINGS FINANCIAL NE'IWORK INC MINNEAPOLIS. MN ~5423 Prepared By: HomeComings Financial Network 14850 Quorum Drive, Suite 450 Dallas, TX 75254 - [Space Above This Lh~e For Recording Data]. MORTGAGE MIN 100062604133954687 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this documentare also provided in Section 16. (A) "Security Instrmnent" meansthis document, which is dated DECEMBER 14TH, 2001 together with all Riders to this document ' (B) "Borrower" is CRAIG COLES AND ALANA COLES, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. 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. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS Form 3051 1/01 MFWY7770 (11/00) / 041-339546-8 (~®-6AIWY) Iooo5).o~ VMP MORTGAG[ FORMS - [8001521-729' (D) "Lender. is HOMECOMINGS FINANCIAL NETWORK INC. Lender is a CORPORATION organized and existing tinder the laws bt' DELAWARE 5' 3 ,'~ Lender's address is 148 50 -QUORUM DRIVE, SUITE 450 DALLAS, TX 75254 (E) "Note" meansthe prommsorynote signed by Borroxverand dated DECEMBER 14TH, 2 FTih~EN°~;tatN~;t?orrower owes Lender NINETY NINE THOUSAND TWO HUNDRED 001 SEVENTY Dollars (U.S. $ 99,275.00 ) plus interest Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than3'ANUARY 1ST, 2032 (F) "Property" means the property that is described below under the heading "Transfer of Rights in thc Property." (G) "Loan" meaus the debt evidenced by the Note, plus interest, any prepayment char~es and late charges due under the Note, and all sums due tinder this Secnrity Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [~]] Adjustable Rate Rider[--] Condominium Rider ['--] Second Home Rider ~ Balloon Rider [~ Planned Unit Development Riderr'--] 1-4 Family Rider [~ VA Rider [--] Biweekly Payment Rider [] Other(s) [specify] (I) "Applicable Law" means alt controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association D,es, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic ~nstrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or Credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneons Prnceeds" means any compensation, settlement, award of damages, or proceeds paid by any tifird party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentationsof, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the n anpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest tinder the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) ?'RESPA" means the Real EstateSettlementProceduresAct (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirementsand restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" nnder RESPA. MFWY7770 (11/00) / 041-339546~8 '2(.~ '~I~'~ (~®76A(wY) e~ 2 o~ 1~ Form 3051 1/01 (0005).01 [nitJats- , (Q) "S.ccessor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Secu,'ity Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrumentsecures to Lender: (i) the repaymentof the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrumentand 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 of MERS, with power of sale, the following described property located in the COUNTY of LINCOLN [Type of Recordlng Jurisdiction] IN,me of Recording lurlsdiction] LOT 47 OF BLOCK 40 OF THE SOUTH KENNINGTON COURT OF THE GLEN KENNINGTON ADDITION TO THE TOWN OF AFTON, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. Parcel ID Number: 12 3 218 312 0 912 5 0 0 which currently has the address of 218 w. AST NINTH .AVENUE ' [Streel] AFTON ICity] , Wyoming 8 3 110 [Zip Codel (,Property Address"): TOGETttERWITtt 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 addilions shall also be covered by this Security lnslrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands an d 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 Lender 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 and canceling this Security Instrument. B 0 R ROWERCO VENA NTS t . 'hat Borroweris lawfully seised of the estalehereby conveyed and has the right to mortgage, grant anti convey the Property and that the Property is unencumbered, except for encumbrancesof record. Borrower warrants and will defend generally the title to the Property against all claitns and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-unit'orm covenants with .limited w~riations by jurisdiction to constitute a uniform security instrument covering real property. ' MFWY7770(ll/O0)/ 041-339546-8 d< [~t (~6AiWY} Pa~,,3o~'ls ~- Form 3051 1/01 {ooo5).Ol Inilllls; UNIFORMCOVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepaymentcharges and late charges due under the Note. Borrower shall also pa), funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrumentshall be made in U.S. currency. However, if any check or other instrumentreceived by Lender as payment und er the Note or this Security Instrumentis returnedto Lender unpaid, Lendermay require that any or all subsequentpayments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such otherlocation as may be designatedby Lender in accordancewith the notice provisions m Section ~5. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insu~'ficient to bring the Loan current, without..waiver of any rights hereunderor prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are .accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender m ay hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so wilhin a reasonableperiod of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Not~ immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due nnder the Note and this Security Instrumentor performing the covenants and agreementssecured by this Security Instrument~ 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrumefit, and then to redul:e the principal balance of the Note. If Lender recmves a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any-late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or neOre Periodic.Payments, such excess may be applied to any late charges due. Vohmtary prepaymentsshall applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellan eons Proceeds to principal due under the Note shall not extend or postpone the due (late, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the"Funds") to provide for payment bf amounts due for: (a) taxes and assessmentsand other items which can attain priority over this Security lnstrumentas a lien or encumbranceon the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for' any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if~any, or any sums payable by Borrower to Lender in lien of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower:s obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts IVIFWY777~ (il/00)/ 041-339546-8 (0005).01 Page 4 of 15 ' . , * "'Form 3061 1/01 5'3 fi' due for any Escrow Items for which paymentof Funds has beenwaived by Lender and, it: Lenderrequ res, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreementcontained in this Security Instrument, as the phrase "covenant anti agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 anti pay such amount and Borrower shall then be obligated nnder Section 9 to repay to Lender any such amounu Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Leu der m ay, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, anti (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and Law.reas°nable estimates of expenditures of future Escrow Items or otherwise in accordar/ce ~vith Applicable The Funds shall be held in an institution whose deposits are insured by a federal agency, instrun~entality, or entity (including Lender, if Lenderis an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified m~der RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing tile escrow account, or verifying the Escrow Items, unless Lent] er pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreementis made in writing or Applicable Law requires interest to be paid on the Fun ds, Lender shall not be required to pay Borrower any ~nterest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interes~ FundsShall BeasPaidrequiredOn thebyFnnds.RESPA.Lender shall give to Borrower, without charge, an annual accounting of the If there is a surplus of Funds h~ld in escrow, as defined nnder RESPA, Lender shall account to Borrower for the excess fimds in accordancewlth RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as requiredby RESPA, and Borrower shall pay to Lender the amountnecessary to make up the shortage in accordancewith RESPA, bm in no more than 1.2 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall noilly Borrower as requiredby RESPA, and Borrower shall pay to Lender the amountnecessary to make up the deficiency ill accordance with RESPA, but in no more titan 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lemter shall promptly refund to Borrower any Funds he] d by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attribtu able to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and CommunityAssociation Dnes, Fees, and Assessments il' any. To the extent tha[ these items are Escrow ltmns, Borrower shall pay them in the manner provided ill Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrumentunless Borrower: (a) agrees in writing to the payment of the obligation secured by tile lien in a manner accepl'able to Lender, bul only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcementof the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcementof the lien while those proceedings are pending, but only until such proceedings ave concluded; or (c) secures fi'om the holder of the lien an agreementsatisfactory to Lender subordinating the lien to this Security Instrument. If Lender determinestha[ any part of the Propertyis subject to a lien which can attain priority over this Se curity Instrument, Lender may give Borrower a notice identifying the MFWY7770 (11/00) / 041-339546-8 (00051.01 Page 5 of !5 'Form 3051 1/01 537' lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insuran ce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakesand floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove BorroWer's choice, which right shall not be exercised unreasonably. Lender may reqtfire Borrower to pay, in' connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar cl~hnges occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency ManagementAgency in connecuon with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property', or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtain,ed. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursementand shall be payable, with such interest, upon notice from Lend er to Borrower requesting payment. - All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgageeand/oras an additionalloss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of ~nsurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. 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 Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender,. shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restorationperiod, Lender shall have the right 'to hold such insurance proceeds nntil Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreementis made in writing or Applicable Law reqnires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and. shall be the sole obligation of Borrower. If the restorationor repair is not economically feasible or Lender's security would be lessened, the insurance procedds sha}l be applied to the sums secured by this Security Instrument, whether or not then due, with MFWY7770 (11/00) /. 041-339546-8 ~_! ~__~. (0005),01 Page 6 o)' 15 ~ Form 3051 1/01 the excess, if any, paid to Borrower. Such Insurance proceeds shall be applied in [he order provided for in Section 2. 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 m ay negotiate and settle the claim The 30-day period will 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 lnslrument, and (b) any other' of Borrower's rights (c~ther than the right to any retired of' unearned prcmiums paid by Borroxver) under all insurance policies covering the Property, insofar as such rights are applicable to the covera ge of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay ammmts unpaid under the Note or this Security Instrument, xvhether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall coi~finue to occupy the Property as Borrower's principal residence for at least, one year after the date of occupancy, unless Leu tier otherwise agrees in writing, which consent shall not be nnreasonably withheld, or unless extenuating circumstances ex~st which are heyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Properly. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its t;ondition. Unless it is determinedpnrsnant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid furthzr deterioration or damage. If insurance or condemnationproceeds are paid in connaction with damage to, or the taking of, the Property, Borrmver shall be responsible f'or repairing or restoring the Property only if Lender has released proceeds fox' such purposes. Lender may disburse proceeds for the repairs and restorationin a sxngle payment or in a series of progress payments as the work is completed. If the insurance or condemnationproceeds are not sufficien. to repair ox' restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has rcasonablecause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Al~plication. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurateinformation or statementsto Lender (or failed to provide Lender with material information) in connection with the Loan. Material representationsinclude, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protectiou of Lender's Interest in the Property and Rights Under this Security Instrument. (a) Borrower fails to perform the covenants and agreementscontained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/orrights under this Security Instrument(such as a proceedingin bankruptcy, probate, for condemnationor forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or reg'tdations), or (c) Borrower has abandoned [he Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/orassessing the value of the Property, and securing and/orrepairing the Properly. Lender's actions can include, but are not limi[ed to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable MFWY7770 (l l/O0) / 041-339546_8 ,~,,i.:~2. ~-. f"~O_ (~}~6A(WY) {ooosl.Ol ~'~g. 7 o~ 15 Form 30~1 1/01 a torneys fees to protectors interest in the Property and/orrights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does n~t have to do so and is not under any duty or obligation to do so. It ~s agreed that Lender incurs no liability for not taking any or all actions attthorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrumentis on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee titls shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If LenderrequiredMortgage lnsuranceas a condition of making the Loan, Borrower shall pay the premiumsrequired to main rain the Mortgage Insurancein effect If, for any reason. the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtmn coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage ~s not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due wl!~n the insnrance coverage ceased to be in effect. Lender will accept~ use and retain these payments as a n6n-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borro. wer was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premmms required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordan cewith any written agreementbetween Borrower and Lender providing for such terminationor until terminatioms required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgag6 InSurance reimburses Lender (or any entity that purchases the Note) for certain losses it maYlnsurance.incur if. J3orrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Mortgage insurers evaluate their total risk on all such insnrance in force from time to time, and may enter into agreementswith other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer an d the other party (or parties) to these agreements. These agreementsmay require the mortgage insurer to make payments using any source of l'unds that the mortgageinsurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides thal~ an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premmms pa.[d tothe insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any 'suCh agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amrmnt Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any rebind. MFWY7770 (11/00) / 041-339546-8 .. (ooosl,Ol P.go~of~5 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights · may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assigmnent of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and Shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restorationperiod, Lender shall have the right to hold such Miscellanemts Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lea der's satisfaction, provided that such inspection shall be undertakenpromptly. Lender may pa), for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreementis made in writing or Applicable Law requires interest, to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restorationor repair is not economically feasible or Lender's security Would be lessen ed, the Miscellaneous Proceeds shall be applied to the sams secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in 'which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in.value of the Propertyin which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in ;writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument wl~ether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party' means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if accelerationhas occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. (0005t.01 11. Borrower Nat Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of am ortizationof the sums secured by this Security Instrumentgranted by Len der to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commenceproceedings against any SuccesSor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortizationof the sums secured by this Security Instrumentby reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearanceby Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amountsless than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and .agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-s~gns this Security Instrument but does not execute the Note (a "co-signer'): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-s~gner's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums securedby this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Securily Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrumentin writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits un der this Security Instrument. Borrower shall not be released from Borroxver's obligations and liability under this Security Instrumentunless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrumentto ch arge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and thatlaw is finally interpretedso that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrumentshall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower h as designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. The, re may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrumentis also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. MFWY7770 (11/00) / 041-339546-8 i~iti~,~.C~.~ f~. (~-6AIWY) Page 10 of ~5 Form 3051 1/01 (0005),01 ' 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silen:e shall not be construed as a prohibition against agreementby contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrumentor the Note which can be g~ven effect without the conflicting provision As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, *'Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests ti'ansferredin a bond for deed, contract for deed, installment sales contra ct or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interestin the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred)without'Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordancewith Section 1.5 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrmver's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuantto any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are Ihat Borrower: (a) pays Lender all sums which then would be due under this Security Instrum entand the Note as if no accelerationhad occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not lim ired to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for ttie purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest inthe Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatementsums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic l~unds Transfer. Upon reinstatementby Borrower, this Security Instrumentand obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument)can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one ar more changes of the Loan Servicer unrelatedto a sale of the Note. If thereis a change of the. Loan Servicer, Bor~'ower will be given written notice of the change which will state the name and address of th6 new Loan Servicer, the address to which payments should be made and any other information RESPA MFWY7770 (11/00) / 041-339546-8 ~t~:C ~ .~ (~-6A(WY) (ooo5),o~ P~, ~ o~ ~ "'Form 30.51 1/01 5 4 3 requires~n connection with a notice of transfer of servicing. If the Note is sold and thereafterthe Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assure ed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrumentor that alleges that the other party has breachedany provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirementsof Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law an d 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; (b) Environmental Law" means federallaws an d laws of the jurisdiction where the Propertyis located that relate to health, safety or environmentalprotection; (c) "Environmehtal Cleanup" includes any response action, remedial action, or removal action, as defined in EnvironmentalLaw; and (d) an "Environmental Condition" means a conditian that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threatento release any HazardousSubstances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environm entalCondition, or (c) which, due to the presence, use, or release of a HazardousSubstance, creates a condition that adversely affects the value of the Property. 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 the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or oth*er 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, (b) any EnvironmentalCondition, including but not limited to, any spilling, leaking, discharge, releaseor threat of' release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a HazardousSubstance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any HazardousSubstance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORMCOVENANTS. Borrower and ]Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleratinn following llorrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specie,y: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to .Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of tile right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any ather defense of Borrower to acceleration and sale. If tile default is not cnred on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Secnrity Iustrument 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 expenses incurred in pursuing the remedies provided in this Sectinn 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice'of intent to foreclose to Borrower and tn the person in possession of the Property, if different, in accordance with Applicable Law~., Lender sball give notice of the sale to Borrower in the manner provided in Section 15. Lender shall puhlish the notice of sale, and the Property shall be sold in the manner prescribed by Applicahle Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not liinited to, reasonable attnrneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for serwces renderedand the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. MFWY7770 (11/00)~ 041-339546-8 ~,t,~,,: ~.E ~..'~ I~}~6A(WY) Iooo51.ol P~g~ 13 of 15 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded wi th it. Witnesses: CRAIG CO~S (Seal) -Borrower ALANA COLES -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower MFWY7770 (11/00) / 041-339546-8 (~6A(WY) 1ooo~ m Page 14 of 15 Form 3051 1/01 STATE OF WYOMING, County ss: L ± ne o 1 n The foregoing instrument was acknowledged before me this December 14 2001 200~ by ' CRAIG COLES ~D AL~A COLES, HUSB~D ~D WIFE My Commission Expires: 09/18/03 Not~ry Publi~,~r'n y Jones County of i~r~ s~ate pf }} . MFWY777011~Ii~. (11/00) / 041-339546-8 ,niti,,,.(~_... ~, t/~q.h 6AIWY) 10005),01 Pag, 15 o~ 15 orm 3051 1/01