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HomeMy WebLinkAbout893693Return To: HOMECOMINGS FINANCIAL NETWORK. INC ONE MERIDIAN CROSSING, STE 100 MINNEAPOLIS, MN 55423 Loan Number: 041-810737-1 Prepared By: HomeComxngs Financial Network 14850 Quorum Drive, Suite 500 Dallas, TX 75254 [Space Above This Liue For Recording Data] MORTGAGE ~Vi/N 100062604181073711 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, I 1, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Iustrmnent" means this document, which is dated SEPTEMBER 15TH together with all Riders to this document. ' (B) "Borrower" is JUSTIN D. SANDNER AND TERESA SANDNER, HUSBAND AND WIFE 2003 Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS ~s a separate corporation that is acting solely as a nominee for Lender aud Lender's successors and assigns. MERS is the mortgagee under this Security Instrulneut. MERS is organized and existing uuder 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 MFW¥7770 (11/00) / 041-810737-] (~®-6A(WYJ Iooo~1.o~ ~ Page 1 of 16 Initials: VMP MORTGAGE FORMS - 1800)621-7291 ,...> . .:,: Form 3051 1/01 (D) "Lender" is HOMECOMINGS FINANCIAL' NETWORK INC. Lender is a CORPORATION organized and existing under the laws of DELAWARE Lender's address is 14850 QUORUM DRIVE, SUITE 500 DALLAS, TX 75254 (El "Note" means the pro. missory note signed by Borrower and dated SEPTEMBER 15TH, 2003 The Note states that Borrower owes Lender ONE HUNDRED THIRTY THOUSAND AND N0/100 Dollars (U.S. $ 130,000.00 ) plus interest. Borrower has promised to Pay tiffs debt in regular Periodic Payments and to pay the debt in full not later than OCTOBER 1ST, 2033 09 ',Property', means the property flint is described below under the heading "Transfer of Rights in the Property." (Gl "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note. and all sums due under this Security Instrument, plus interest. (It) "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 ['7-] Balloon Rider [---] Planned Unit Development Rider [---1 1-4 Family Rider [~ VA Rider [~ Biweekly Paynient Rider [--] Other(s) [specify] (Il "Applicable Law" meaus all controlliug applicable federal, state aud local statutes, regnlations, ordinances and administrative rnles and orders (that have the effect of law) as well as all applicable final, no,i-appealable judicial opinions. (J) "Community Association Dues, Fees, anti Assessments" means all dues, fees, assessments and other charges tlmt are imposed on Borrower or the Property~ by a condominium association, homeowners association or similar organization. (K) "Electronic Fnnds Transfer" means any transfer of funds, other titan a transaction origiuated by check, draft, or similar paper instrument, which is initiated ihrough an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instrnct, 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 telepboue, wire transfers, and automated clearinghouse trausfers. (El "Escrow Items" meaus those items that are described iu Section 3. (i~I) "Miscellaneo~ls Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other thau insurance proceeds pakl under the coverages described in Section 5) for: (il damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of fl~e Property. (IN) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (il principal and interest under the Note, plns (ii) any amounts trade r Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (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 snbject matter. As used in this Security Instrument, "RESPA" refers to all requirements and 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(ll/00) ! 041-810737-1 (~-6AIW¥I ~ooo~}.o, Page 2 of 15 Form 3051 1/01 808 (Q) "Snccessor i,1 Interest of Borrower" means any party that has taken title to tile Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security hmtrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security hmtrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's coveuants and agreements under this Security Instrument and the Note. For this puq~ose, Borrower does hereby mortgage, grant and convey to MERS (solely as nomhlee 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 file COUNTY of LINCOLN .- [Type of'Recording Jurisdiction] [Name of Recording Surisdictlon] LOT 39 OF SOUTHBROOK RANCHES SUBDXVISION, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. Parcel ID Number: 34191040004400 27 HANCEY DRIVE THAYNE ("Property Address"): which currently has the address of ' [Street] [City] , Wyonfing 83127 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds o~fly legal title to fl~e interests granted by Borrower in this Security II~strumeut, but, if necessary to comply with law or custom, MERS (as nominee for Lender aud Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not lhnited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not linfited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that file Property is unencumbered, except for enculnbrances of record. Borrower warrants and will defend generally the title to the Property against all clahns and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to co~mtitute a uniform security instrument covering real property. MFWY7770 (11/00) / 041-810737-1 (~6A[WY) Iooo5~.o~ Page Initials: Form 3051 1/01 809 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when clue the principal of, and iuterest on, the debt evidenced by the Note and any prepayment charges and late charges clue under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under tile Note and this Security Instnunent shall be lnade in U.S. currency. However, if auy check or other instniment received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this. Security Instrument be made in one or more of the following forms, as selected by Lender: (al Cash; lb) money order; lc) 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 ill the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Sectiou 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan cnrrent. Leuder may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejndice to its rights to refi~se such payment or partial payments in the future, but Lender is not obligated to apply such payments at tile 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 may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such fimds will be applied to the outstanding priucipal balance under the Note 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 under the Note and this Security Instrument or perforating the covenants and agreements secured by this Security 'Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Sectiou 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (al iuterest due under the Note; lb) principal due nnder the Note; lc) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amouuts shall be applied first to late charges, second to any other amounts due uuder 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 mnount 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 outstandiug, Lender may apply ally payment received from Borrower to the repayment of the Periodic Paymeuts if, and to the extent that, each payment can be paid in full. To the extent that auy excess exists after the paymeut is applied to the full payment of oue or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepay~nents shall be applied first to any prepayment charges and then as described itl the Note. Any application Of payments, insurance proceeds, or Miscellaneous Proceeds to prhlcipal due under the Note shall not extend or postpone the due date, or change tile 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 of amounts due for: (al taxes and assessments and other items which can attaiu priority over this Security Instrument as a lien or encumbrauce on the Property; lb) leasehold pay~nents or ground rents on the Property, if any; lc) pre~niums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if auy, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurauce pre~niums in accordance with the provisions of Sectiou 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 ally, 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 uuder this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay tile Funds for any or all Escrow Items. Lender lnay waive Borrower's obligation to pay to Leuder Funds for any or all Escrow Items at ally time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when aud where payable, the amouuts I~IFWy7770 (11/00) / 041-810737-1 initials: "5~'-~ (~-6AIWYI Iooo~).o~ Paoe 4 o[ 15 Form 3051 1/01 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall fimfish to Lender receipts evidencing such payment within such thne 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 agreemeut contained in this Security Instrument, as the phrase "covenant and 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 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender ally such amount. Lender may revoke the waiver as to any or all Escrow Items at any thne by a notice given in accordauce with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amouuts, that are then required under fids Section 3. Lender may, at any thne, collect and hold Funds ill an amount (a) sufficient to pernfit 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 esthnate the amount of Funds due on the basis of current data and reasonable esthnates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held ill aLL 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 the Funds to pay tile Escrow Items no later than the thne specified under RESPA.. Lender shall not charge Borrower for holding and applying the Funds, ammally analyzing the escrow aCcount, or verifying the Escrow Items, mfless Leuder pays Borrower interest on the Funds aud Applicable Law permits Lender to make such a charge. Ulfless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Leuder 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 tile Funds. Lender shall give to Borrower, without charge, an annual accounting of tile Funds as required by RESPA. If there is a surplus 'of Funds held hz escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Fuuds held in escrow, as def'med under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but hz no more thau 12 monthly payments. If there is a deficiency of Funds held in escrow, as de£med under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to nmke up the deficiency in accordance with RESPA, but in no more than 12 ~nonthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower ~ny Fnnds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, frees, and inzpositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Connnunity Association Dues, Fees, and Assesslnents, if any. To tile extent that these items are Escrow Items, Borrower shall pay them in file maimer provided hz Section 3. Borrower shall prompdy discharge any lieu which has priority over this Security h~strunzent mfless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but olfly so long as Borrower is performing such agreement; (b) contests the lien hz good faith by, or defends agah~st enforcement of tile lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedhLgs are concluded; or (c) secures frmn the holder of the lien au agreement satisfactory to Lender subordhmting. the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender ~nay give Borrower a notice identifying the MFWY7770 (11/00) / 041-810737-1 (I~-6AIWY) Iooos}.o~ Initials: ~-"'~~-'~/ Form 3051 1/01 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 cmmection with fllis 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," and any other hazards including, but not limited to, earfl~quakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for file periods that Lender requires. What Lender requires pursuant to the preceding'sentences can change during file 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, eifl~er: (a) a one-time charge for flood zone determination, certification aud 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 respousible for the payment of any fees imposed by fl~e Federal Emergency Management Agency in connection with the review of any flood zone determination resulting fi'mn 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 o£ 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 nfight 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 Bon'ower 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 frmn Lender to Borrower requesting payment. All insurance policies required by Lender aud renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, aud shall nmne Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall prmnptly 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 destruction of, file 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 file 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, whefl~er or not fl~e 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 restoration period, Lender shall have file 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 restoration in a single payment or in a series of progress payments as.the work is completed. Unless an agreement is made in writing or Applicable Law requires 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 pnblic adjusters, or other third parties, retained by Borrower shall not be paid out of tile 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 IVlFWY7770 (11/00)/ 041-810737-1 Initia,s :'-~~ (~-6A{WYItooos~.01" Pao~*o*~s --' '~ Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for 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 h!surance carrier has offered to settle a clahn, then Lender may negotiate and settle the clahn. 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 Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rigbts are applicable to the Coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use tile 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 residence for at least oue year after the date of occupancy, mfless Lender otherwise agrees in writing, which consent shall not be unreasonably witlilield, or mfless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of tile Property; Ilzspections. Borrower shall not destroy, damage or hnpair the Property, allow the Property to deteriorate or connnit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property order to prevent the Property from deteriorating or decreasing in value due to its condition. Ulfless it is determined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if danmged to avoid further deterioration or damage. If insurance or condelm~ation proceeds are paid h~ com~ection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property o~fly if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration hi a single payment or in a series of progress payments as the work is completed. If the insurance Or'condenmation proceeds are not sufficient to repair or restore the Pr6perty, 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 reasonable cause, Lender may inspect the interior of the hnprovements on the Property. Lender shall give Borrower notice at the thne of or prior to such an interior inspection specifiJhlg such reasonable cause. 8. Borrower's Loan Aplflicafion. 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 lo~owledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not linfited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest ill tile Property and Rights Under this Security histrnment. If (a) Borrower fails to perform the covenants and agreements contained hi this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest hi the Property and/o[ rights under this Security Instrument (such as a proceeding hi ba~flo-uptcy, probate, for condenmation or forfeiture, for enforcement of 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 hlstrulnent, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are uot linfited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) payhig reasonable MFWY7770 (11/00) / 041-810737-1 Initials: (~-GAfWY) Iooos~.o~ P~o~ ? o~ ~s Form 3051 1/01 813 attorneys' fees to protect its interest in the Property and/or rights under this Security Instmnlent, including its secured position iii 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 not have to do so and is not under any duty or obligation to do so. It is agreed flint Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under' fids Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at file 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 Instrument is 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 title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insnrance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in 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 prelniums for Mortgage Insurance, Borrower shall pay the premiums required to obtahi 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-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that tile Loan is ultimately paid in fidl, 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 premimns for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the preruiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends iii accordance with any written agreement between Borrower and Lender providing for such ter~nination or until termination is required by Applicable Law. Noflfing iii this SectiOn 10 affects Borrower's obligation to pay interest at the rate provided iii 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 evaluate their total risk on all such insurance iii force from time to time, and may enter into agreements with other parties that share or Inodify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make paylnents using any source of funds that the mortgage insurer may have available (which may include funds obtah~ed from Mortgage Insurance premiums). As a rasult of these agreements, Lender, any purchaser of fl~e Note, another insurer, any reinsurer, any other entity, or any affiliate of any of fl~e 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 that al! affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, tile arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amonnts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Snch agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any rebind. MFWY7770 (11/00) / 041-810737-1 initiala:~''~ ~~ (~-6A{WY} Iooos).ol Paoe a o~ ~5 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the' Mortgage Insurance nnder the Homeowners Protection Act of 1998 or aay oll~er law. Thee righ~ may inchlde the right to receive certain disclosures, to request and obtain mncellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatiGally, and/or to receive a refund of any Mortgage Insurance l~remiums that were m~earned at the time of such ~ncellation or termiaation. 11. Assigmnent of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby .assigned to aud shall be paid to Lender. If fl~e Proper~ is damaged, such Miscellaneous Proceeds shall be applied to restoration or repah' of the ProperS, if the restoration or repak is economically feasible and Lender's securi~ is not lessened. DurMg such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds unt~ Lender has had an opportmli~ to inspect such Proper~ to ensure the work has been completed to Lender's satisfaction, provMed that such h~spection shall be uuder~ken promptly. Lender may pay for the repairs and restoration M a sh~gle disbursement or in a series of progress payments as the work is completed. UMess an agreement is made h writh~g or Applicable Law requh'es h~t~rest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnh~gs on such Miscellaneous Proceeds. If the restoration or repak is not econoluically feasible or Lender's securi~ would be lessened, the Miscellaneous Proceeds shah be applied to the su~ secured by this Securi~ Iust~ment, whether or not then due, with the excess, if any, paid to Borrower. Snch M~cellaneous Proceeds shall be applied h~ the order provided for hi Section 2. In the event of a to~l ~kh~g, destruction, or loss h~ value of the ProperS, flxe Miscellaneous Proceeds shall be applied to the sums secured by fl~ Securi~ Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial ~g, dest~ction, or loss h~ value of the Proper~ h which the fair market value of fl~e Proper~ i~mnediately before fl~e partial ~khg, destruction, or loss h value ~ equal to or greater than the amount of fl~e sums secured by this Securi~ Inst~ment hm~ediately before the partial mkh~g, destruction, or loss hi value, unless Borrower and Lender otherw~e agree h~ writh~g, the sunm secured by this Securi~ Instrument shall be reduced by ~e amount of the M~cellaneous Proceeds multiplied by the followh~g fractiou: (a) file to~l amount of fl~e suum secured hm~ediately before the partial ~king, destruction, or loss h~ value divided by (b) fl~e raft market value of the Proper~ hmnediately before the partial ta~g, dest~ction, or loss h~ value. Any balance shall be paid to Borrower. In the event of a partial mkh~g, destruction, or loss h~ value of the Proper~ M which fl~e fak market value of fl~e Proper~ hmnediately before fl~e partial mkh~g, destruction, or loss in value is less than the amount of the sums secured hlmlediately before tile partial mkh~g, dest~ction, or loss h~ value, mfless Borrower and Lender otherwise agree in writh~g, the Miscellaneous Proceeds shall be applied to fl~e sunm secured by this Securi~ Inst~meut whefl~er or not the sunm are fl~en due. If the Proper~ is abandoned by Borrower, or if, after notice by Lender to Borrower flint the Opposh~g Par~ (as defined M th~ next sentence) offers to make an award to settle a claM~ for damages, BorroWer faJs to respond to Lender withh~ 30 days after the date ~e notice is given, Lender ~ author~ed to collect and apply fl~e Miscellaneous Proceeds either to restoration or repak of the Proper~ or to the sums secured by this SecUri~ I~trument, whether or not fl~en due. "Opposh~g Par~" means fl~e ~d par~ that owes Borrower Miscellaneous Proceeds or the par~ against whom Borrower has a right of action h~ regard to Miscellaneous Proceeds. Borrower shall be M default if any action or proceedh~g, whefl~er civil or crhnhml, is begun flint, h~ Lender's judgment, could result in forfeiture of the Proper~ or oilier material hnpaffment of Lender's hterest h~ fl~e Proper~ or rights under fids Securi~ hmtrument. Bbrrower can cure such a default and, if acceleration has occurred, reh~s~te as provided h~ Section 19, by caush~g fl~e action or proceedh~g to be dismissed with a ~lh~g flint, hx Lender's judgment, precludes forfeiture of the Proper~ or other material hnpah'ment of Lender's h~terest h the Proper~ or righ~ under ~ Securi~ Instrmnent. The proceeds of any award or clahn for damages flint are attribu~ble to the h~paffment of Lender's h~terest h~ the Proper~ are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repa~ of the Proper~ shall be applied ~ the order provided for' h~ Section 2. MFWY7770(II/00) / 041-810737~1 (~-6AtWY} Iooosl.o~ Page 9 of 15 Initials: Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of fl~e time for payment or modification of amortization of file sums secured by tiffs Security Instrument granted by Lender 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 commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Iustmn~ent by reasou of any demaud made by the orighml Borrower or any Successors in Interest of Borrower. Any forbearance by Leuder in exercising any right or remedy including, without linfitation, Lender's acceptance of payments from third persons, entities or Successors h~ Interest of Borrower or in amounts less 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; Snccessors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute fl~e Note (a "co-signer"): (a) is co-signing this Security Instrumel~t only to mortgage, grant and convey the co-signer's interest in the Property uuder the terms of this Security Instrmnent; (b) is not personally obligated to pay fl~e sums secured by tiffs Security Instrument; and (c) agrees flint Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations wifl~ regard to file terms of this Security Instrument or fl~e Note without the co-signer's consent. Subject to the provisions of Sectiou 18, auy Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument iu writing, and is approved by Leuder, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Iustmment unless Lender agrees to such release in writh~g. The covenants and agreements, of this Secnrity 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 aud rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspectiou and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibitiou on the charging of such fee. Lender may uot charge fees that are expressly prohibited by this Security Iustrument or by Applicable Law. If the Loan is subject to a law which sets maxinmm loan charges, and that law is fiually interpreted so that the interest or other loau 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 necessa~ 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 priucipal owed under the Note or by making a direct payment to Borrower. If a refund reduces priucipal, 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. Ail notices given by Borrower or Leuder in connection with this Security Instrumeut must be in writing. Any notice to Borrower in com]ection with this Security Instrument shall be deemed to have been given to Borrower wheu 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 uuless Borrower has designated a substitute notice address by notice to Lender. Borrower simll 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 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 h~ connection with this Security Instrument shall not be deemed to have been given to Lender uatil actually received by Lender. If any notice required by this Security Instrmnent is also required under Applicable Law, file Applicable Law requirement will satisfy the correspondiug requirement under this Security Instrument. MFWY7770 (11/00) ! 041-810737-1 Initials: "~-~'~ (~-6A{WY) Iooosl.o~ Paoe ~o o{ ~s -''q' Form 3051 1/01 16. Go~;erning Law; Severability; Rnles of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction ha which the Property is located. All rights and obligations contahied ha this Security Instrument are subject to any requirements and lhnitatim~s 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 agreelnent by 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 provisimzs of this Security Instrument or the Note which can be given effect without the conflicth~g provision. As used ha this Security Instrument: (a) words of the masculhae gender shall mean and hmlude correspondhag neuter words or words of the fenfiuhae gender; .(b) words ha the sh~gular shall mean and haclude 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' hzstrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used ha this Section 18, "Interest ha the Property" means any legal or beneficial h~terest in the Property, including, but not limited to, those beneficial haterests transferred ha a bond for deed, contract for deed, h~stallment sales contract or escrow agreement, the hitent of which is the trmksfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest h~ the Property is sold or transferred (or if Borrower is not a natural person and a beneficial haterest ha Borrower is sold or transferred) without Lender's prior writteu consent, Lender may require hmnediate payment hi 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 ha accordance with SectiOn 15 withhi which Borrower must pay all stuns secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may' hav0ke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right .to Reinstate After Acceleration. If Borrower meets certaha conditions, Borrower shall have the right to have enforcement of this Security Instrument disconthaued at any thne prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contah~ed ha this Security Instrument; (b) such other period as Applicable Law might specify for the termhmtion of Borrower's right to reinstate; or (c) entry of a judgment elfforchag this Security Instrmnent. Those conditions are that Borrower: (a) pays Lender all sums which then would be due m~der this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any oilier covenants or agreements; (c) pays all expenses hacurred ha enforch~g this Security Instrument, hacludhag, but not limited to, reasonable attorneys', fees, property hispection and valuation fees, and other fees hacurred for the purpose of protectiug Lender's h~terest h~ the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's h~terest iai the Property and rights under this Security Instrument, and Borrower's obligation to pay the sunks secured by this Security Instrument, shall conthiue unchanged. Lender may require that Borrower pay such rehastatement sums and expenses ha one or more of the followh~g fornks, as selected by Lender: (a) Cash; (b) money order; (c) certified check, baltic check, treasurer's check or cashier's check, provided any such check is drawn upon an hastitution whose deposits are hasured by a federal agency, hlstrumeutality or entity; or (d) Electronic Funds Transfer. Upon reh~statement by Borrower, this Security Instrulnent and obligations secured hereby shall remaha fully effective as if uo acceleration had occun'ed. However, this right to rehlstate shall not apply ha the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial haterest ha the Note (together witli this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result ha a change ha the entity (lmown as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and perforlns other mortgage loan servichag obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer urn:elated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other hfformation RESPA MVWY7770 (11/00) / 0~1~810737-1 Initials: (~-6A(WY} (ooos).o~ ~'.o* ~ *~ ~s rm 3051 1/01 requires iu connection with a notice of transfer of servicing. If the Note is sold and fl]ereafler the Loan is serviced by a Loan Servicer other titan fl~e purchaser of fl~e 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 assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender ]nay commence, join, or be joined to any judicial action (as either an iudividual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or arLy duty owed by reason of, this Security Instnnnent, until such Borrower or Lender has notified the other party (with such notice given in compliance wiflt the requirements of Section 15) of such alleged breach aud 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 actiou can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportnnity 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 Sectiou 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviroumental Law and the following substauces: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and hefl~icides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of fl~e jurisdiction where fl~e Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleauup" includes any respouse action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" 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 fl]reaten to release any Hazardous Substances, oil or in the Property. Borrower shall not do, nor allow anyone else to do, anyflfing affecting the Property (a) that is in violation of auy Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardons Substance, creates a condition that adversely affects file 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 rLot limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (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 Enviromnental Law of which Borrower has actual knowledge, (b) any Environmental Condition, 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 preseuce, use or release of a Hazardous Substance which adversely affects the value of file 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 Hazardous Substance 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 Enviromnental Cleanup. MFWY7770 (11/00) / 041-810737-1 (~-6AIWY} ~ooo~r.o~ ~nitiam ~1~~ Pa~e 12 of 15 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give uotice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Sec, rity lnstrmnent (but not prior to acceleration m~der Section 18 mfiess Applicable Law provides otherwise). The notice shall specify: (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 mttst be cured; and (d) that failure to cnre the default on or before the date specified in the notice may result in acceleration of the stuns secored by this Security Instrmnent and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a coort action to assert the non-existence of a default'or any other defense of Borrower to acceleration and sale. If the default is not cnred on or before the date specified'in the notice, Lender at its option may reqnire immediate payment in full of all sums secured by this Security h~strmnent withont further demand and may invoke the power of sale and any other renledies permitted by Applicable Law: Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, bnt not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes tile power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided ill Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the lnanner prescribed by Applicable Law. Leuder 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 lilnited to, reasonable attorueys' fees; (b) to all stuns 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 releash~g this Security InStrument, but o~fly if the fee is paid to a third party for services rendered and the chargh~g 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 Wyomh~g. MFWY7770 (11/00) / 041-810737-1 ~-6A(WYI Iooo~l.o~ Page 13 ol~ 15 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants Contained in tiffs Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: D. SANDNER (Seal) -Borro%ver TERESA SANDNER (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower MFWY7770 (11/00) / 041-81073%1 (~}~6AIWY) iooo5).o1 Page 14 of 15 Form 3051 1/01 820 · STATE OF WYOMING, Lincoln The foregoh~g insu'ument was acknowledged before me this S ep t emb e r by JUSTIN D. SANDNER AND TERESA SANDNER, HUSBAND AND WIFE 16, Cou.ty ss: 2003 My Colm~fission Expir~ Notary Public ~ MFWY7770 (11/00) / 041-810737-1 (~-6AlW¥) Iooo5~.ol Initials: PagelSof15 Form 3051 1/01