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HomeMy WebLinkAbout898142Return TO: HOMECOMINGS FINANCIAL NETWORK, INC ONE IvlERIDIAN CROSSING, STE 100 MINNEAPOLIS, kin 55423 Prepared By: r,r_.u. IVED Lii,.]O01 ~,l :.',IT'~ ',.,LERI HomeComings Financial Network u::r ~':, ': : ....,c) 14850 Quorum Drive, Suite 500 Dallas, TX 75254 [Space Above Tiffs Lh~e For Recordh~g Data] MORTGAGE MIN 100062604201235985 ! , DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding file usage of words used in this doculnent are also provided iu Section 16. (A) "Security Instrument" means this document, which is dated together with all Riders'to this documeut. (B) "Borrower" is BRUCE DAVIS AND BETTY D&VIS, HUSBAND AND WIFE MARCH 23RD, 2004 Borrower is fl~e mortgagor under fltis Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Iuc. MERS is a separate corporation that is acting solely as a noufinee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, lvlI 48501-2026, tel. (888) 679-MERS. WYOMING-Single FamiIwFannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS MFWY7770 (il/00) / 042~012359-8 Page 1 of 15 Initials: VMP MORTOAGE FORMS - 1800)521-72gl Form 3051 1/01 CD) "Lender" is HOMECOMINGS FINANCIAL NETWORK INC. Lender is a CORPORATION organized and existing under the laws of DEI-d~WARE Lender's address is 14850 QUORUM DRIVE, SUITE 500 DALLAS, TX 75254 (E) "Note" means the pronfissory note signed by Borrower and dated MARCH 23RD, 2004 The Note states that Borrower owes Lender TWO HUNDRED FIFTy TWO THOUSAND AND NO/100 (U.S. $ 252,000.00 ) plus interest. Borrower ]]as prolnised to pay this debt in regular Periodic Dollars Payments and to pay the debt in full not later than APRIL 1ST, 2034 (19 "Property" means the property that is described below under the heading "Transfer of R/ghts in the Property." . (G) "Loan" means tile 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. (14) "Riders" means all Riders to tiffs Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate ' ~ VA Rider ~ Plam~ed Unit Development Rider . L~ Biweekly Payment Rider ~ - ' rnily R/der L_J Other(s) [specify] (I) "Applicable Law" .means all controlling applicable federal, state and local statutes, regulations, ordinances and adm/nistrative rules and orders (that have the effect of law) as well as all applicable final, n(;n-appealable judicial opinions. "Community Association Dues, Fees, and Assessments,, means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer!, means any transfer of funds, other than a transaction originated by .check, draft, or sinfilar paper instrument, which is initiated through an electronic ternfinal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit ~r credit an account. Such term includes, but is not limited to, point-of-sale transfers, autonmted teller nmchine transactions, transfers initiated by telephone, wire transfers, and antoumted clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third Party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. ~ "Mortgage Insurance,, means insurance protecting Lender against the nonpayment of, or default on, tile Loan. (O) "Periodic Payment" means the regularly scheduled amoum due for (i) principal and interest under the Note, plus (ii) any amounts under 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 nfight be amended from time to !ime, or any additional or successor legislation or regulation that governs the same subject matter. As used ru 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" under RESPA. MFV~7770 (11/00) ! (~®-SA(Wy, 042-0~2359_8 ~) [O005J.O1 - Page 2 of 1 5 Form 3051 1/01 104 ?,_ (Q) "Successor in Interest:of Borrower', means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secu'res to Lender: (/) the repayment of the Loan, and all'renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security In,strument and the Note. For this purpose, Borrower does hereby mortgage, grant and COnvey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the COUHTy [Type of Recording Jurisdiction] of LINCOLN LOT 16 OF STAR VIEW ESTATES SUBDIVISION, LINCOLN COUNTy, WYOMINC AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. [Na, e of Recording Jurisdiction] Parcel ID Number: 32192110103000 406 HILLVIEW DRIVE CR 408S which currently has the address of AUBURN [Street] ( Property Address,,): [CitYl , Wyonfing 83111 [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 foregoiug is referred to in this Security Instrument as the "Property." Borrower understauds dud agrees that MERS holds only legal tide to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but ]tot limited to, the right to foreclose dud 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 the Property is unencumbered; except for encumbrances of record. Borrower warrants dud will defend generally the tide 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 uniform security instrumeut covering real property. MFWY7770 (11/00) / 042-012359.8 (~)®-§A(WY} looosl.o~ Page 3 of 15 Form 3051 1/01 UNIFOI~M COVENANTS. Bon'ower and Lender covenant and agree as ~ollows: 1. Payment of ~incipal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Bo~ower shall pay when due ~e principal o~, and interest on. ~e debt evidenced by fl~e Note and any prepayment charges and late char~es due under ~e ~ote. Borrower shall also pay ~nds for ~scrow pursuant to Section 3. Payments due under &e Note and Otis Security h~tmment shall be ~mde in U.S. currency. However, if any check or o~er instrument received by Lender as payment under &e Note or Security Instrument is returned to Lender unpaid, Lender n~y require fl~at any or all subsequent payments due under ~e Note and Otis Security Instrument be nmde in one or more of ~e following for~, as selected by Lender: (a) cash; (b) money order; (c) certified check, ba~ check, treasurer's check or cashier's check, provided any such check is drawn upon an insti~tion whose deposits are insured by a federal agency, i~tmmentality, or entity; or (d) Electro~fic Funds Tra~fer. Payments are deemed received by Lender when received at ~e location desig~ted in ~e Note or at such o~er location as ~y be desig~ted by Lender in accordance wifl~ fl~e notice provisions in Section 15. Lender' nmy return any payment or partial payment if ~e payment or partial payments are insufficient to bring ~e Loan cu~ent. Lender ~y accept any current, wi~out waiver of any rights hereunder payment or partial payment insufficient to bring ~e Loan payments in ~e fl~ture, but Lender is not obligated to apply such payments at fl~e time such payments are or prejudice to its fights to re~se such payment or partial accepted. If each Periodic Payment is applied as of its scheduled due date, ~en Lender need not pay .interest on Umpplied ~nds. Lender ~y hold such unapplied ~nds until Borrower lmkes payment to bring O~e Loan current. If Borrower does not do so wi~in a reasonable period of time, Lender shall el&er apply such ~nds or return fl~em to Borrower. If not applied earlier, such ~nds will be applied to fl~e outstanding principal balance under ~e Note i~nediately prior to tbreclosure. No offset or claim which BO~ower ~ght have now or in ~e ~mre agai~t ~Lender shall relieve Borrower from ~mking payments due under fl~e Note and fllis Security h~tmment or perfor~ng ~e cove~nts and agreements secured by tiffs Security Ins tmment. 2. Application of Payments. or Proceeds, Except as o~erwise described in tiffs Section 2, all payments accepted and applied by Lender shall be applied in &e following order of priority: (a) interest due under file Note; ¢) principal due under &e Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in fl~e order in which it became due. Any re~i~fing amounts shall be applied first to late charges, second to any o~er amounts due under ~is Security Instrument, and · en to reduce ~e principal balance of ~e Note. sufficient amount to pay any late charge due, ~e payment ~y be applied to ~e delinquent payment and If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a fl~e late charge. If more &an one Periodic Payment is outstanding Lender nuy apply any payment received from Borrower to ~e repayment of ~e Periodic Payments if, anh to ~e extent ~at, each payment 'can be paid in ~11. To ~e extent ~at any excess exists after ~e payment is applied to fl~e hll payment of one or more Periodic Payments, such excess ~y be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and &eh as described in d~e Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to. principal due under fl~e Note shall not extend or pos~one ~e due date, or change O~e amount, of ~e Periodic Payments. 3. Funds for'Escrow Items. Borrower shall pay to Lender on ~e day Periodic Payments are due under file Note, until file Note is paid in ~11, a stun (fl~e", lien or encumbrance on the Property; Funds') to provide for payment of amounts due for: (a) taxes and assessments and o~er ite~ which can attain priority over ~is Security I~tmment as a (b) leasehold payments or ground rents on fl~e Property if any; (c) premiums for any and all imurance required by Lender under Section 5; and (d) Mortgag'e hmurance pre~nms, if any, or any stuns payable by Borrower to Lender in lieu of &e payment of Mortgage Insurance pre,urns in accordance w]~ fl~e provisions of Section 10. These ite~ are called "Escrow Items." At origination or at any tithe during &e term of fl~e koau, Lender ~y require O~at Co~u~ty Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly ~nfish to Lender all notices of amounts to be paid under ~is Section. Borrower shall pay Lender &e Funds for Escrow Itenu unless Lender waives BO~Ower's obligation to pay ~ie Funds for any or all EScrow Ite~. Lender ~y waive Bo~ower's pbligation to pay to Lender Funds for any or all Escrow Irene at any time. Any such waiver ~y o~y be m writing. In ~e event of such waiver, Borrower shall pay directly, when anti,here payable, ~e amounts M~7770 (11/00)/ 042-012359-8 I0005 ).01 Initial~: P~e 4 of 16 Form 3051 1/01 106 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement 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 any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any t/me, 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 reasomible estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. 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 the 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, ammally analyzing the escrow account, or verifying tl~e Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to nmke such a charge. Unless an agreement is ~nade 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 ammal 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 funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined 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 in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary 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 sliall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over tiffs Security Instrument, leasehold payments or grotmd rents on the Property, if any, and Connnunity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the maimer provided in Section 3. Borrower shall promptly discharge any lien which has priority over dfis 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 perfornfing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien wtfile those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisthctory to Lender subordinating the lien io dfis Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over tlts Security Instrument, Lender may give Borrower a notice identifying the MFWY7770 (11/00) / 042-012359_8 (~}®-6AtWY) looos).Ol Form 3051 1/Ol 5}:' :: 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 /hr 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," and any other hazards including, but not limited to, earthquakes and 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 determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or Certification. Borrower shall, also be responsible for file payment of any fees imposed by the Federal Emergency Management Agency 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 might 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 Instrument. These amonnts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as 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 promptly give to Lender all receipts of paid premimns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In fl~e event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is econontically feasible and L ' ender s security is not lessened. During such repair and restoration period, Lender shall have file right to hold such insurance proceeds nntil Lender has had an opportunity to inspect such Property to ensure file work has been completed to L ' ender 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 public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be die 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)/ 042-012359_8 ]~._~7~ (~'6A{WYI [0005).01 Page 6 of 16 ----------- Form 3051 1/01 109 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 nmy file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond witifin 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle tile clhim. 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 tiffs 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 rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore rite Property or to pay amounts unpaid under the Note or this Security Instrmnent, 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 one year after tile date of occupancy, unless Lender otherwise agrees in writing, wtfich consent shall not be umeasonably withheld, or unless extenuating circmnstances 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 con, nit waste on tile Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is deternfined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in connection with damage to, or the taking of, tile Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. 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. If the insurance or condenmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for tile 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 iuterior of the improvements on the ProPerty. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in de/hult if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borruwer's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with materi'al information) in co~mection with tile Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy; probate, for condenmation or forfeiture, for enforcement of a lien which ~nay attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned tile 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/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this. Security Instrument; (b) appearing in court; and (c) paying reasonable MFWY7770 (11/00) / 042-012359-8 Page 7 of 1 Form 3051 1/01 · ,".- 110 attorneys' fees to protect its interest in the Property and/or rights 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 wiudows, 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 uuder this Secdou 9, Lender does not have to do so and 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 iuterest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice kom 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 Insurance. If Lender required Mortgage Insurance as a condition of ~naking the Loan, Borrower shall pay the prentiums required to maintain the Mortgage Insurance in effect. If, for any reason, the .Mortgage Insurance coverage required by Lender ceases to be available ti-om the mortgage insurer that prevmnsly provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premimns required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, ara cost substantially, equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alteruate 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. Leuder will accept, use and retaiu these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-.refundable, notwithstanding the fact that the Loan is ultiumtely paid in full, and Lender shall not be reqmred to pay Borrower any iuterest 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 fl~at Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the prenfiums for Mortgage Insurance, Borrower shall pay the preminnts required to maintain Mortgage Iusurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by 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 ~ncur 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 in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses· These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements nkay require the mortgage insurer to make payments using any source of funds that the mortgage insurer nmy have available (which umy include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides 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 amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (00051.01 Initials: Page 8 o1' ! 5 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other' l~w. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automaticnlly, nnd/or to receive a refund of any Mortgage Insurance premiums 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 such repair and restoration period, Lender shall have the right to hold such Miscellaneous 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 pay for the repairs and restoration in a single disbursement or in a series of progress payment~ as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or eanfings on such Miscellaneous Proceeds. If the restoration or repair is not econonfically feasible or ender s security would L ' be lessened, 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. 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 nmrket value of the Property inm~ediately before the partial takiug, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument inunediately before the partial taking, destruction, or loss in value, mfless Borrower and Lender otherwise agree in writing, the sums secured by tiffs Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sunks secured inm~ediately before the partial taking, destruction or loss in value divided by (b) the fair nmrket value of the Property innnediately 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 Ihir nmrket value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sunts secured by this Security Instrument whether or not the stuns 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 danmges, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by tlfis Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in .Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender s ~nterest 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 impairment of Lender's interest ru the Property or rights under dfis Security Instrument. or other material The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of tl~e Property shall be applied in the order provided for in Section 2. MFWY7770 (11/00) / 042-012359:-8 Page g of 15 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. ExtenSion of the time for payment or modification of amortization of the sums secured by this Security Instrmnent granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release file'liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to connnence 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 Instrument by reason of any denkand nkade by the original Borrower or any Successors in Interest of Borrower. Any furbearance by'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 ainounts less than the amount then due, shall not be a waiver of or preclude the exercise of any fight or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security InStrument but does not execute the Note (a "co,signer"): (a) is co-signing this Security Instrument o~fly to mortgage, grant and convey tile 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 and any other Borrower can agree to extend, modify, forbear or make any acco~nnmdations with regard to the terms of fids Security Instrument or the Note without the co-signer's consent. Subject to the Provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, 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 Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrmnent shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in fltis Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets ~naxilnum loan charges, dud that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the priucipal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security InStrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall conStitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower 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 Borroiver's change of address, then Borrower shall 0nly report a change of address through that specified procedure. There may be only one designated notice address under fllis Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with Otis Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requir_ement under fids Security . Instrument. ~._ MFWY7770 (11/00) / 042-012359-8 (~)~-6A{WY) looo5}.ol ~ag~ ~o of ~5 Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of file jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law nfight 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 agreement 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 provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrmnent: (a) words of the masculine gender shall mean and include corresponding .neuter words or words of the fenfinine gender; (b) words in file 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 file Note and of this Security Instrument. 18. Transfer of the Property or a Beneticial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial iuterest in fl~e Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent 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 any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require innnediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. ,~ If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from file date the notice is given in accordance with Section 15 wiflfin which Borrower must pay all sums secured by fids Security Instrument. If Borrower fails to pay these sums prior to file expiration of this period, Lender nmy invoke any remedies pemfitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have entbrcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of file Property pursuant to any power of sale contained in fids Security Instrument; (b) such other period as Applicable Law nfight specify for the termination of Borrower's right to reinstate: or (c) entry of a judgment entbrcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had 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, reasonable attorneys' fees, property inspection and valuation fees, and other tees incurred for the purpose of protecting Lender's interest in the Property and rights uuder this Security Instrument; and (d) takes such action as Lender nmy reasonably require to assure that Lender's interest iii tile Property and rights under this Security Instrument, and Borrower's obligation to pay tile sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such 'reinstatement stuns and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bauk check, treasurer's check or cashier's check, provided ally such check is drawn upon an institution whose deposits are insured 'by a federal agency, instrulnentality or entity;.or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this fight to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in file Note (together' with this Security Instrument) can be sold one or ~nore times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under file Note and fids Security Instrument and performs other mortgage loan servicing obligations under the .Note, fids Security Instrument, and Applicable Law. There also nfight be one or more changes of the Loan Servicer unrelated 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 anry. hother information RESPA MFWY7770 (11/00) / 042-012359-8 6A{WY] (ooo5).Ol pag~ l~ o~ )~ Form 3051 1/01 requires in co~mection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser mfless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be .joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to 'this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flam~nable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or forlnaldehyde, and radioactive materials; (b) "Environnrental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Enviromnental Cleanup". includes any response action, remedial action, or removal action, as defined in Euviromnental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Bon'ower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to mainteuance of the Property (including, but not limited to, hazardous substauces 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 Environmental Law of which Borrower has actual knowledge, (b) any Enviro~unental Condition, including but not li~nited 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 Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any goverl~nental 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 Environmental Cleanup. MFWY7770 (11/00) / 042-012359-8 (~-6AIWY) (ooosl.Ol Page Initial~: Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration followiug Borrower's breach of any covenant or agree~nent in this Security Instrument (but not prior to acceleration under Section 18 unless 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 must be cured; nnd (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of tile sums secured by this Security Instrument and sale of the Property. Tile notice shall further inform Borrower of the right to reinstate after acceleration nnd 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. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of nil sums secured by this Security Instrument without further demand and may invoke the power of sale nnd any other remedies permitted hy Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees nnd costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 1~. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by thN 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 Secu?ity 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 ?endered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. MFWY7770 (11/00) ! 042-012359-8 I~-~AIW¥1 {ooo,~.o~ Page 13of 15 Initials: Form 30§1 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covemms contained in this Security Instrument and in any Rider executed by Borrower and recorded wi fl~ it. Witnesses: (Seal) BRUCE D/tVI S -Borrower BETTY E~n~I S (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Bofrowcr (Seal) -Borrower (Seal) -Borrower MFWY7770 (11/00) ! 042-012359-8 I~6AIWY) ~ooosl.o I Page 14 ol' 15 Form 3051 1/01 STATE OF WYOMING, Lincoln The foregoing instrument was ackamwledged before me this .7-_~ by BRUCE DAVIS AND BETTY DAVIS, HUSBAND AND HIFE · County ss: ~ 2004 Notary ~ub~ '~' . MFWY7770 (11/00) ! 042-012359-8 (~-6A(WY) Iooos~,o~ Pag~ 15 of 15 Form 3051 1/01