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HomeMy WebLinkAbout878231Return To: HOMECOMINGS FINANCIAL NETWORK, iNc ONE MERIDIAN CROSSING, STE 100 MINNgAPoLIS, ~N 5M23 Prepared By: ttomeComings Financial Network 14850 Quorum Drive, Suite 450 Dallas, TX 75254 [Space Above This Line For Recording Data] MORTGAGE " MIN 1000626041342.88236' DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, i[3, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" meansthis document, which is dated DECEMBER Z9TH, 200~ , · together with all Riders to this document. (B) "Borrower" is HAROLD A. RUMBAUGH AND BEULAH RUTH RUMBAUGH, HUSBAND g&~D WIFE Borrower is the mortgagor under this Secu[ity Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporatiop 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 ami telepl/one 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 MF\VY7770 (I1/O0) / 041-341882-3 (~®-6A(WY) (ooo~).o~ Page 1 of 1'5 Initials: ,~//~ (D) "Lender" is HOMECOMINGS FINANCIAL NETWORK INC.' Lender is a CORPORATION o,'ganized and existing tinder the laxvs of DELAWARE Lender's addressis 14850 QUORUM DRIVE, SUITE 450 DALLAS, TX '75254 (E) "Note" means the promissory note signed by Borrower and dated DECEMBER 19TH, 2001 The Note states that Borrower owes Lender SEVENTY SEVEN THOUSAND AND NO/100 Dollars (U.S. $ 7 7, 0 0 0.0 0 ) plus iuterest. Borrower h:is promised to pay this debt in regular Periodic Payments and to pay the debt in full not later thargANUARY 1ST, 2 0 17 (Fi "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment char'ges and late charges due under thc Note, and all sums due under this Security Instrument, pins interest. (Hi "Riders" means all Riders to this Security Instrnmentthat are executed by Borrower. The following P, iders are to be executed by Borrower [check box as applicable]: [--] Adjustable Rate Rider []]~] Condominium Rider [~] Second Home Rider [--[ Balloon Rider ~J Planned Unit Development Ride~--] 1-4 Family Rider ~} VA Ride:r [~] Biweekly Payment Rider [] Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordimmces and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Comm,nity Association Dues, Fees, 'and'Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominimn 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 instrument, cmnputer, 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, polnt-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. (Mi "Miscella,eous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by an), third party (other than insurance proceeds paid under the coverages described in Section 5) for: (ii damage to, or destruction of, the Property;. (ii) condeumationor other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) ~nisrepresentationsof, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, thc Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (ii principal and interest under the Note, plus (ii) any amonnts under Section 3 of this Security Instrument. (P), !'RESPA" means the Real Estate SettlementProceduresAct (12 U.S.C. Section 2601 et seq.) and its inrplementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'om 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 qualiBf as a "federally related mortgage loan" nnder RESPA. MFWY7770 (11/00) / 041-341882-3 Initials: ~'~// 2 4 2 (Q) "Successor in Interest of Borrower" means'any'party that has taken ti.tie to the Property, whether or not that party has assmned Borrower's obligations under the Note and/or this Security 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 lnstrumentand 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 thc successors and assigns of MERS, with power of sale, the following described property located '. in the COUNTY of LINCOLN ; [Type oft' Recording Jurisdiction] [Name of Recording Jurisdiction] Legal description attached hereto and made a part hereof Parcel ID Number: 3 718 2 5 3 0 2 010 0 0 which curreutly has the address of 125 MORNING STAR DRIVE , [Streetl ALPINE [City] ,'Wyo~ning 83128 [Zip Code} ("Property Address"): TOGETHER WITtt all the improve~nents 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 this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrunzent, 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 li~nited to, releasing and canceling this Security Instrument. BORP, OWERCOVENANTS 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, except for encumbrancesof record. 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 linfited variations by jurisdiction to constitute a nniform security instrument covering real Property. MFWY7770 (11/00) / 041-341882-3 UNIFORMCOVENANTS. Borrower antl Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrnw 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 prepay~nent charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pnrsuant"to SectiOn 3. Payments due under the Note and this Security Instrmnent shall be made in U.S. currency. However, if any check or other in~trmnentreceived by Lender as paymentunder the Note or this Security Instrumentis returned to Lender unpaid, Lender may 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, instrmnentality, or entity; or (d) Electronic Fnnds Transfer. Payments are deemedreceived by Lender when received at the location designated in the Note or at such other location as may be designatedby Lender in accordancewit'h the notice provisions in Section 15. Lender may return an5, 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 insnfficient 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 snch payments at the time such payments are accepted. Il' each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within 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 bahmce under the Note immediately prior to foreclosure. No offset or claim which Borrower might have aow or in the futnre against Lender shall relieve Borrower fi'om making payments due nnder the Note and this Security Instrumentor performing the covenants and agreementssecuredby this Security Instrument. 2. Applicatim~ of Payments or Proceeds. Except as otherwise described in this Section 2, all pay~nents 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, s6cond to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives 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 Paymentis outstanding, Lender may apply any payment received frown Borrower to the repayment of the Periodic Payments if, aud to the extent that, each payment can be paid in full. To the extent that any excess exists after the paymentis applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepaymentsshall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due trader the Note shall not extend or postpone the due date, 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 fulli a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessmentsand other items which can attain priority over this Security Instrumentas a lien or encmnbranceon the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender trader Section 5; and (d) Mortgage Insurance premiun~s, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premimns in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the teton of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessmentss'hall 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 atnounts (l 1/00) / 041-341882-3 Initiate' /'T~f IVlFWY7770 Clue £or any Escrow Items £or which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing ~such payment within such ti~ue period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be demnedto be a covenant and a~reementcontain.edin thi~ Security Instrument, as the phrase"covenant and agreement" is used in Section ~. 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 ~ and pay such amount and Borrower shall then be obligated under Section ~ to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in' accordancewith 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. Lender ~nay, 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, and (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 reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable LilW. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so. insured) or in any Federal Home Loan Bank. Lender shall apply tile Funds to pay the Escrow Items no later than the time specified: under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender 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 Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. .~ If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess l'unds in accordancewith RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall noti~ Borrower as requiredby RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordancewith RESPA, but in no more than 1.2 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as requiredby RESPA, and Borrower shall pay to Lender tile amountnecessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and CommunityAssociationDues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. 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, but 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 iii Lender's opinion operate to prevent the enl'orcementof the lien while those proceedings are pending, but only until such proceedings are,concl~lded; or (c) secures from the holder of the lien an agreementsatisfactory to Lender subordinating the lien to this Security Instrunmnt. If Lender determinesthat any part of the Property is subject to a lien which can attain priority over this Security ~nstrument, Lendffr may give Borrower a notice identifying the MFWY7770(l[/00) / 04[-341882-3 ,-- --' 245 lien. Within 10 days of the date on which that notice i,s 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 Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage,i' 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 require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone deterlniuation, 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 changes 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 connection 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 ~night significantly exceed the cost of insurance that Borrower could have Obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security lnstrmnent. These mnounts shall bear interest at the Note rate frown the date of disbursementand shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insnrance policies requh'ed 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 nmne Lender as mortgagee and/eras an additional loss 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 insurance coverage, not otherwise required by Lender, for damage to, or destrnction 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 iii writing, any insurance proceeds, whether 0r not the underlying insurance was required by Lender, shall be applied to restorationor repair of the Property, if the restorationor repair is economically feasible and Lender's security is not lesseued. During such repair and restorationperiod, Lender shall have the right to hold such insurance proceeds until 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 restorationin a single payment or in a series of progress payments as the work is completed. Unless an agrcementis madein writing or Applicable Law req~fires 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 restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security instrument, whether or not then due, with MFWY7770 (11/00) / 041-341882-3 initi,sls..''~ the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the 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 may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires thc 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 Secnrity Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned prmniums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may nse the insurance proce'eds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. 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 continue to occupy the Property as Borrower's principal resideuce for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond 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 Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property iu order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determinedpursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmationproceeds are paid in connection with dmnage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has releasedproceeds for such purposes. Lender may disburse proceeds for the repairs and restorationin a single payment or in a series of progress payments as the work is completed. If the insurance or condcmnationproceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent ~nay make reasonable entries uPon and inspections of the Property. If it has rcasonablecanse, Lender may inspect the interior of the improvements on the Property. Lender sliall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. 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 inaccurateinformatlon or statementsto Lender (or failed to provide Lender with ~naterial information) in .connection'with the Loan. Material representationsinclude, but are not limited .to, reprcsentations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. l'rotection of Lender's Interest in the Property and Rights Under this Secnrity Instrument. If (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 Instrunmnt(such as a proceeding in bankruptcy, probate, for condemnationor forfeiture, for enforce~nent o1: a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the 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 wdne of the Property, and securing and/orrepairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a llen which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable 247 attorneys' fees to protect:its 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 fi'om 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 not have to do so anti is not 'under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized 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 disbursmnent and shall be payable, with snch interest, upon notice fi'om Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the Ieasehokl and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mnrtgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiumsreqtfired to maintain the Mortgage lnsurancein effect. If', for any reason, the Mortgage Insnrance coverage required by Lender ceases to be available frown 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 tim' premiums required to obtain 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 is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundableloss reserve in lieu of Mortgage Insnrance. 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 ~naking the Loan and Borrower was required to make separately designated payments toward the prenfiums for Mortgage Insurance, Borrower shall pay the premiums required to ~naintaiu Mortgage Insurance in effect, or to provide a uon-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordancewith any written agreementbetween Borrower and Lender providing for such termination or until termination is requiredby Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evalnate their total risk on all such insurance in force from time to time, and may enter into agreementswith other parties that share or modil~ their risk, or reducelosses. These agreements are on terms and conditions that are satisfactory to the mortghge insurer and the other party (or parties) to tlmse agreements. These agreementsmay require the mortgage insurer to make payments using any source of fnuds that the mortgage insurer m ay have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, iLender, 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 fi'om (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modil~ing the mortgage insurer's risk, or reducing losses. If such agreelnent provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the am~mnts that Borrower has agreed to pay for Mortgage Insurance, m' any other terms of the Loan. Such agreements will not increase the amonnt Borrnwer will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. MFWY7770 (11100) / 041-341882--3 Initials:~ II~ta, D'B/~{~/Y' ,0005L01 Page 8 or' 15 2~! /~, 'j,,~` ~ .... I~orm 3061 1101 (b) Any such agreements will not affect tike rights BorroWer has - if any - with respect t, ttie Mortgage Insurance under the Homeowners Protection Act of 1998 nr any nther law. These rights may include tike right to receive certain disch)snres, to request and obtain cancellation of the Mortgage lnsn,'ance, to have the Mortgage Insurance terminated automatically, and/or to receive a retired of any Mortgage Insurance preKniums that were unearned at the time of such cancellation or termination. 11. Assignment 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 snch repair and restorationperiod, Lender shall have the right to hold such MiscellaneousProceeds until 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 undertakenpromptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is corn pleted. Unless an agreementis made in writing or Applicable Law requires interest to be paid on such Miscellaneons 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 secnrity would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, it' 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 thau the amount of the sums secnred by this Security lnstrumentimmediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security I:nstrument 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 tike 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 Property in which the fair market value o1! 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 whether 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 Lenderwithin 30 days after the date the notice is given, Lenderis authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums securedby this Security Instrument,whether or not tlien due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whmn 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 acceleration has 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 znaterial impairment of Lender's interest in the Property or rights under this Security Instrutnent. The proceeds of any award or claim for damages that are attributableto the impairmentof 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. MFWY7770 (11/00) / 041-341882-3 (~I~-GAIWY) P0g~ 9 of 15 ,' ,q Form 3051 1/01 12. Borrower Not Released; Forbearauce By Lender Not a Waiver. Extension of the time for payment or modification of amortizationof the sums secnredby this Security Instrumentgrantedby Lender to Borrower or any Successor in Interest of Borrower shall not operate to release thc 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 modit~ amortizationof thc stuns sccuredby this Scchrity Instrumentby reason of any demandmadeby thc original Borrower or any Successors in Interest of Borrower. Any forbcaranccby 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 aud agrees that Borrower's obligations and liability shall be joint and several. However, any Borrowerwho co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrmnentonly to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender aud any other Borrower can agree to extend, }nodify, forbear or ~nake any accommodationswith regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor iix 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 ben'fits under this Security Instrument. Borrower shall not be released from. Borrower's obligations and liability under this Security Instrumentunless Lender agrees to such releasein 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 iu this Security Instrumentto charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender ~nay not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. Il! the Loan is subject to a law which sets maximum loan charges, and that law 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 permittedlimit; and (b) any stuns already collected from Borrower which exceeded permitted limits will be refuuded to Borrower. Lender may choose to make this refund by reduciug 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 auy prepayment charge (whether or not a prepayment charge is provided l'or 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 Instrmnent must be iii writing. Any notice to Borrowerin connection with this Security Instrumentshall be deemedto have been giveu to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notiee to any one Borrower shall constitutenotice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has 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. There may be only one designated notice address under this Security Instrument at any one time. Any not[ce 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 requircmentunder this Security Instrument. MFWY7770 (11/00) / 041-341882-3 Initial 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 aml obligations contained in this Secnrity 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 silence 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 ~th Applicable Law, such conflict shall not affect other provisions of this Security lnstrumentor the Note which can be given 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 iii 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. Transl~r of the Property or a Benelicial Interest in Borrower. As nsed 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 transferredin a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or auy part of the Property or any Interestin the Property is sold or transferred(or if Borrower is not a natural person and a beueficial 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 0f not less than 30 clays from the date the notice is given in accordancewith Section 15 withiu which Borrower ~nust 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 re~nedies permitted by this Security Instrument without further notice or demand on Borrower. 19. BmTower's Right to Reinstate Afl:er Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinned at any time prior to the earliest of: (a) five days before sale of the Property pursuant to 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 Seca~rity Instrument. Those conditions are that Borrower: (a) pays Lender all sums wlfich then would be due under this Security Instnunentand 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 linfited to, reasouable attorneys' fees, property inspection and valuation fees, and other fees incurrbd for the 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 in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security 'Instrument, shall continue nnchanged. Lender may reqnire 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 Funds Transfer. Upon reinstatementby Borrower, this Security lnstrumentand 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 nnder Section 18. 20. Sale of Note; Change of Loan Se~wicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument)eau 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 Pe~qodic Payments clue 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 nfight be one or more changes of the Loan Servicer unrelatedto a sale of the Note. If there is a change of the Loan Servicer, BorrOwerwill be given written notice of the change which will state the name and address of thc new Loan Servicer, the address to which payments shouhl be made and any other information RESPA 0 7 E31 251 requires in connectkm with a notice of transfer of ~crvicing. If the Note is sold and thereafterthe Lo'in is serviced by a Loan Servicer other than the purchaser of thc Note, thc mortgage loan servicing obligations to Borrowerwi]l remain with the Loan Servicer' or be trans[errcdto a successor Loan Servicer and arc not assumed by the Note purchaser uuless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, ioin, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises frmn the other party's actions pursuant to this Security Instrmnentor that alleges that the other party has breachedany provision of, or any duty owed by reason of, this Security Instrument, nnd'l such Borrower or Lender has notified the other party (with such notice given ill compliance with I:l~e requirementsof Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the gMng o'f such notice to take corrective action. If Applicable Law provides a time p'eriod 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 118 shall be deemed to satisfy tile notice and opportunity to take corrective action provisions of this Section 20. 21. ltazardous 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 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; nvn'onmental Law" means federallaws and laws of the.jurisdiction where the Property is located that (b) "E ' relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in EnvironmentalLaw; and (d) an "Environmental Conditioff' means a condition 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. Borrowershall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates au EnvironmentalCondition, or (c) which, due to the presence, use, or releaseof a HazardousSubstance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to tile presence, usc, or storage on the Property of small quantities ot' Hazardons Substances [hat are generally recognized to be appropriate to normal residential uses and to maintenance el the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall pro~nptly give Lender written notice 0f (a) 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, (b) any EnviromncntalCondition, including but not limited to, any spilling, leaking, discharge, release or 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 valne 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 a~y HazardousSubstance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromneutal Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. MFWY7770 (11/00) / 041-341882~3 {0005).01 NON-UNIFORMCOVENANTS. Borrowe~t and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following llorrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration nnder Section 18 unless Applicable Law provides othenvise). The notice shall specify: (a) tile default; (b) the action required to cure the default; (c) a date~ not less than 30 days from the date tbe notice is given to Borrower, hy which the dethnlt must be cured; and (d) that failure to cure the default on or beflwe the date specified in the notice may result in acceleration of tile sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. Il' the default is not cured on or beflwe the date specilied in the notice~ Lender at its nption may require immediate payment in lull of all sums secured by this Security Instrument without fl~rther demand and may invoke the power of sale and any other remedies permitted by Applicahle Law. Lender shall be.eniitled to collect all expenses incm'red in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' tees and costs of title evidence. Il' Lender iuvokes the power of sale, Lender shall give notice of in~ent to flweclose to Borrower and to the person itl possessiou of the Property, if different, -in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the rammer provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its desiguee may purchase the Property at any sale. The proceeds of the sale shall be applied in tile following order: (a) to all expenses of tile sale, including, but not limited to, reasonable attorneys' lees; (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 Securily 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 services renderedand the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights nnder and by virtue of the lmmestead exemption laws of Wyoming. MI:WY7770 (11/00) / 041-341882--3 lnitim~: -'l~.~f// (~-6A(WY) (ooos),o~ Pa§e ~3 ~ ~S L~,~."~ Form 30,51 1/0! 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 with it. Witnesses: BEULAH RUTH RUiVlBAUGI-t ZBorrower (Seal) (Seal) - -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower MFWY7770 (11/00) 041-341882-3 (~<~6A(wY)(ooos).o~ P~ ~4 o~ ~5 Form 3051 1/01 0 7 Z3 , 2 5 4 STATE OF WYOMING, County ss:L i n c o 1 n 19th day of December The foregoing instrument was acknowledged before ~ne this 2 0 01 by HAROLD A. RUMBAUGH AND BEULAH RUTH RUMBAUGH, HUSBAND AND WIFE ~ [~---~~,,<~!~Jl~NOtary Public ~ County of [~r~:,,~ State of l! Lincoln ~J~ Wyoming Ii My Commission Expires: 0 2 / 0 9 / 0 5 ~[ My Commission Expires Februa~ 9, 2~ Nolary Public 255 That part of the NE1/4SN1./4 Section 29, T37N, Rll8N, Lincoln County, Nyoming described as follows: Beginning at the northeast point o£ Lo~ l0 of the Palisades Heights Subdivision on the southerly right-of-waY line of ?alisades Drive of record on the Palisades Heights Subdivision ?lat, recorded in the Office of the Clerk of Lincoln County as Plat No. 249; thence N26o-31.5,N, 6.26 feet to a point on the southerly right-of-way line of said Palisades Drive; thence N67°-39.0'E, 140.37 feet along the said southerly line of said Palisades Drive ~o a point; thence 102.39 feet along the westerly right-of-way line o~ said Palisades Drive to a point; thence continuing S26o-31.5,E, 6.69 fee~ .along the westerly right-of-way line of said Palisades Drive to a point; thence S66o'-09.~,N~ 140.1~ feet; thence N26°-31.5'N~ ·106.48 £eet along the easterly line of said Lot 10 to the POINT OF BEGINNING; And part of ~he east sixty (60.) feet of Lot 10 of the Palisades Heights Subdivision of record in the Office of the Clerk of Lincoln codntY ~S""piat No. 2~;'"~esC~-i~e~ as foi~WS: BEGINNING at the northeast point of said Lot 10; thenCe S26°-31.5'E, 106.48 feet along the east line of said Lot 10; thence S66o-09.5,W, 59.99 feet to a point; thence N26o-28.8,W, 108.04 feet to a point on-the north line of said Lot 10; thence N67°-39.0'E, 60.00 feet to the POINT OF BEGINNING; each "point" marked by a steel T-shaped stake 24" long with metal cap inscribed "PAUL N. SCHERBEL RLS164 SURVEY POINT"