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HomeMy WebLinkAbout898444Return To: WELLS FARGO HOME MORTGAGE, INC. 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 Prepared By: WELLS FARGO HOME MORTGAGE, INC. RECEI",/ED LINCOLN COLINI'Y cLERK .1919 DOUGLAS,, OMAHA, NE 681010000 [Space Above Tlds Lhte For Recerdh~g Data] MORTGAGE DEFINITIONS Words used in nmltiple sectious of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding die usage of words used in tiffs document are also provided in Section 16. (A) "Security Instrument" means this document, which is datedAPRIL 12, 2004 together with all Riders to tiffs document. (B) "Borrower" is LAWRENCE I~ CHAVEZ AND SANDRA L CHAVEZ, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "Lender" is WELLS FARGO HOME MORTGAGE, INC. Lender is a CORPORATION orga~fized and existing under the laws of THE STATE OF CALIFORNIA 0039479126 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM NSTRUMENT (~®-6{WY) (ooos} VMP MORTGAGE FORMS ,800,521 77t~/'In'tlal8 ~' ~----~! / Form 3051 11Ol Lender's address is P.o. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instrument. (D) "Note" means the pronfissory note signed by Borrower and datedAPRIL 12, 2004 The Note states that Borrower owes Lender ON~. HUNDRP..D BP. VEI, ITY FIVE THOUSAI, ID AND 00 / 100 Dollars (U.S. $ * * * * 1 ? 5,000.00 ) plus interest. Borrower has pronfised to pay this debt in regular Periodic Payments and to pay the debt in full not later than m~¥ 01, 2034 (E) "Property" means tlm property that is described below under the heading "Transfer of Rights in the Property." (F) "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 iuterest. (G) "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 [-~ Condonfininm Rider ~ Second Home Rider [~ Balloon Rider ~-~ Planned Unit Development Rider ~-~ 1-4 Family Rider ~-] VA Rider ~-~ Biweekly Payment Rider ~-] Other(s) [specifyl (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and admi~fistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (1) "Commu,ity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condonfinium association, homeowners association or si~nilar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic ternfirml, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not linfited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and autonmted clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "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, rite Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) ufisrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the-regularly scheduled amount due for (i) principal and interest under the Note, pins (ii) any amounts under Section 3 of this Security Instruntent. (O) "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 atnended from time to time, or any additio~ml or successor legislation or regulation that governs the same subject matter. As used in this Security Instrulnent, "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. Initials: ~~* ~' (~e-6(WY) (ooo5~ Page2 o~ 15 Form 3051 1/01 (P) "Successor in h~terest 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 Instrmnent. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the perfornmnce of Borrower's covmmnts and agreements under tiffs Security h~stmment and the Note. For tiffs purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording lurisdiction] [Name of Recording Jurisdiction] LOT 2 OF THE KENNINGTON CIRCLE ADDITION OF THE SOUTH KENNINGTON COURT TO THE GLEN KENNINGTON ADDITION TO THE TOWN OF AFTON, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. THIS IS A PURCHASE MONEy SECURITY INSTRUMENT. TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, INC., BOX 10304, DES MOINES, IA 503060304 P.O. ParcellD Nmnber: 1232183120913600 192 EAST 9TH AVENUE AFTON ("Property Address"): which currently has the address of [Street] [City] , WyOming 8 3110 [Zip CodeI 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 Instrmnent. All of the foregoing is referred to in this Security Instrument as the "Property." 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 mmncumbered, except for encmnbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for ~mtimml use and non-mfifonn covenants with limited variations by jurisdiction to constitnte a mfiform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender cove~mut and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instnnnent shall be made in U.S. currency. However, if any check or other instmnlent received by Lender as pa,~nlent uu~¢,r the Note or fllis Initial$:~Y %' ' (~-6(WY) 1ooo6) Page 3 o¢ 15' ~Form 3051 1/01 Security Instrument is returned to Lender unpaid, Lender nmy require that any or all subseqnent payments due mdei' the Note and this Security Instrulnent be nmde in one or more of thd following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are iltsured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as nmy be designated by Lender in accordance with the ~mtice provisious in Section 15. Lender nmy return any payment or partial paymem if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender nmy hold such unapplied funds Until Borrower nmkes 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 funds will be applied to file outstanding principal balance under the Note iunnediately prior to foreclosure. No offset or claim which Borrower nfight have now or in the future against Lender shall relieve Borrower from making payments due under the Note and tlfis Security Instrmnent or performing the covenants and agreements secured by this Security Instrmnent. 2. Application of Pay~neuts or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) anmunts due under Section 3. Such payments shall be applied to each Periodic Pay~nent in the order in which it became due. Any renmi~fing amounis shall be applied first to late charges, second to any other anmunts due under this Security h~strnn~ent, and titan to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent' Periodic Payment which includes a sufficient amount to pay any late charge due, the payment nmy be applied to the delinquent paynrent and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after file payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluutary prepayments shall be applied first to any prepayment charges and then as described in file Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amouut, 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 anmunts due for: (a)' taxes and assessments and other items which can attain priority over fltis Security Instrument as a lien or enCumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) pre~niums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance preufinms, if any, or any sums payable by Borrower to Eender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loau, Lender may require that Conununity 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 funfish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds tbr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender ~nay waive Borrower's obligation to pay to Lender Funds for a~iy or all Escrow Itmns at any tiine. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable,, the a~nounts (~e-6(WY) Iooosl Page 4 of ~s F rn 3051 1/01 0S S444._ 1814 due for any Escrow Items for wtfich payment of Funds has been waived by Lender and, if Lender requires, shall funfish to Lender receipts evidenciug such payment within such time period as Lender utay require. Borrower's obligation to nmke such payments and to provide receipts shall for all pm-poses be deemed to be a cove]rant and agreement contained in fllis Security Instrument, as the phrase "covenant and agreemem" is used iu Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amoum 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 nmy revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 aud, upon such revocation, Borrower shall pay to Leuder all Funds, and in such amounts, that are then required under fltis Section 3. Lender may, at any time, collect and hold Funds ii1 an amount (a) sufficient to perntit 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 estinmte fl~e amount of Funds due on the basis of cra-rent data and reasonable estinmtes 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, instmnlentality, or entity (including Lender, if Lender is an iustitution whose deposits are so insured) or in any Federal Home Loan Bank. Lender.shall apply the Funds to pay die Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying die Funds, ammally analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on die Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is nmde iii writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eanfings on the Funds. Borrower and Lender cau 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 fl~ere is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordauce wifl~ RESPA. If fl~ere 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 file amount necessary to make up fl~e shortage in accordance with RESPA, but in no more than 12 monfllly 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 wifl~ RESPA, but in no more thau 12 nmnthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Co~mnmfity Association Dues, Fees, and Assessments, if any. To die extent that these itelns are Escrow Itelns, Borrower shall pay diem in the lnamier provided in Section 3. Borrower shall promptly discharge any lien which has priority over fliis Security Instrument mfless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a nmtmer 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 iii Lender's opi~fion operate to prevent the enforcement of the lien wlfile those proceedings are pendiug, but only uutil such proceedings are concluded; or (c) secures from the holder of the lieu an agreemeut satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Bon'ower a notice identifying the .(~t~-6(WY) (ooo5) P~e s o~ ~ Form 3051 1/01 0S S444 lien. Within 10 days of the date on wlfich 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 com~ection with this Loan. 5. Property Insurance. Borrower sliall 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 ~mt linfited to, earthquakes and floods, for which Lender reqmres insurance. This insurance shall be maintained in the amounts (including deductible level's) 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 nmy require Borrower to pay, in com~ection with this Loan, either: (a) a one~time charge tbr flood zone deternfination, certification and tracking sei-vices; or (b) a one-time charge for flood zone detenrdnation and certification services and' subsequent charges each time remappings or sinfilar changes occur which reaso~mbly might affect such determiuation or certification. Borrower'shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in cmmection with fl~e review of any flood zone deternfination resulting from an objection by Borrower. If Borrower fails to nmintain 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 nfight not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage than was previously in effect. Borrower acka~owledges that the cost of the insurance coverage so obtained might sig~fificantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under tlfis Section 5 Shall become additio~ml debt of Borrower secured by this Security Instrument. These amounts slmll bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Leuder 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 aud/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 ~mme Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may nmke proof of loss if not made promptly by Borrower. Uxfless Lender and Borrower otherwise agree in writit~g, 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 econo~nically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportmfity to inspect such Property to ensure the work has been completed to Lender's satisthction, 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 ear]tings on such proceeds. Fees for public adjusters, or other flfird parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Bon'ower. If · the restoration or repair is not econonfically 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 Initial . (~-6(WY) 1ooo5} P~g~ ~ o~ ~5 Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respoud within 30 days to a notice from Lender that the insurance career has offered to settle a claim, then Lender nmy negotiate aud settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under file Note or this Security Instrmnent, and (b) any other of Borrower's rights (other than the right to any refund of unearned preufiums paid by Borrower) under all insur'ance policies covering the Property, insohr as such rights 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 Instnmlent, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use rite Property as Borrower's principal residence within 60 days after fl~e execution of this Security Instrument and shall conti~me to occupy file Property as Borrower's principal residence for at least one year after the date of occupaucy, unless Lender otherwise agrees in writing, which consent shall not be um'easonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maiutenance and Protection of the Property; Inspectious. Borrower shall not destroy, danmge or impair the Property, allow the Property to deteriorate or conmfit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall nmintain 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 economically feasible, Borrower shall promptly repair the Property if da~naged to avoid further deterioration or danmge. If insurance or c0ndenmation proceeds are paid in com~ection with damage to, or file taking of, file Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender nmy disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as file work is completed. If the insurance or condelmmtion proceeds are not sufticient to repair or restore the Property, Borrower .is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or' its agent xnay make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspectiou specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in dethult if, during the Loan aPPlication process, Borrower or any persons or entities actiug at the direction of Borrower or with Borrower's knowledge or consent gave nmterially false, misleading, or inaccurate iufonnation or state~nents to Lender (or fitiled to provide Lender with ~naterial information0 in com~ection with the Loan. Material representations include, but are not linfited to, representatious concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in tlie Property and Rights Under this Security Instrnment. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that ~night significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condennmtion or furfeiture, for enforcement of a lien which nmy attain priority over this Security Instnnnent or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Leuder nmy 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 linfited to: (a) paying any sums secured by a lien which has priority over this Secm'ity Instrument; (b) appearing in court; and (c) paying reasonable Initial (~-6(WY)/goos) Page 7 of 16 Form 3051 1/01 0S 8444. 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, chauge locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities mined 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 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 beconle additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate I¥om 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 Bo~Tower acquires fee title to the Property, the leasehold and die 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 making the Loan, Borrower shall pay the prenfiums required to maintain die 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 die pre~niums for Mortgage Insurance, Borrower shall pay the prenfiums required to obtain coverage substantially equivalent to die Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurauce previously in effect, I¥om an alteruate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurauce coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when die 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. S'uch loss reserve shall be non-refundable, notwithstanding the Ihct that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurek selected by Lender again becolnes available, is obtained, and Lender requires separately designated payments toward the prentiums 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 die prentiums for Mortgage Insurance, Borrower shall pay the premiums required to nndntain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurauce ends in accordance with any written agreement between Borrower and Lender providing for such ternfination or until ternfi~mtion 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 nkay 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 in force from time to time, and ntay enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satis~hctory to the mortgage insurer and the oilier party (or parties) to these agreements. These agreements may require the ~nOrtgage insurer to make payments using any source · of funds that the mortgage insurer may have available (which nhay include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of die Note, another insurer, any reinsurer, any oilier entity, or any affiliate of any of the tbregoing, may receive (directly or indirectly) anmunts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in · exchange for sharing or modifying the ~nortgage insurer's risk, or reducing losses. If such agre&ment provides that an affiliate of Lender takes a share of the insurer's risk in exchange tbr a share of the premium2s paid to the insurer, the 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 reruns of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to a~y rel'und. 6(WY) 1ooo8} P~. a ot is Form 3051 1/01 :?:!:5' :',,'.i :,':;:, ~i?:: .. ::::; ',.. ,. (b) Any snch agreements will not affect the rights Borrower has - if auy - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosnres, to reqnest and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance preminms 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 fl~e Property is da~ged, such Miscellaneous Proceeds shall be applied to restoration or repair of · e Property, ~' fl~e restoration or repair is economically feasible and Leuder's security is not lessened. During such repair and restoration period, Lender shall have fl~e right to hold such Miscellaneous Proceeds until Lender has had an opportmfity to ix~pect such Property to ensure ~e work has been completed to Lender's satisfaction, provided fl~at such inspection shall be undertaken promptly. Lender nmy pay for ~e repairs and restoration in a single disbursement or in a series of progress payments as fl~e work is completed. U~ess an agreement is ~de in writing or Applicable Law requires h~terest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or eanfings on such Miscellaneous Proceeds. If fl~e restoration or repair is not economically feasible or Lender's security would be lessened, fl~e Miscellaneous Proceeds shall be applied to fl~e sun~ secured by tiffs Security Insn~ment, whefl~er or not ~en due, wifll ~e excess, if any, paid to Bon'ower. Such Miscellaneous Proceeds shall be applied in fl~e order provided for in Section 2. In fl~e event of a total taking, destruction, or loss in va~ue of fl~e Property, me Miscellaneous Proceeds shall be applied to fl~e sums secured by tiffs Security Ii~strmnent, whefl~er or not ~en due, wiflt fl~e excess, if any, paid to Borrower. In fl~e event of a partial taking, destx~ction, or loss in value of me Property in which fl~e fair nmrket value of fl~e Property i~nediately before ~e partial taking, destruction, or loss in value is eqnal to or greater man ~e amount of ~e sm~ secured by tiffs Security Instrument inunediately before ~e partial taking, desU~ction, or loss in value, u~ess Borrower and Lender omerwise agree in writing, ~e sums secured by flxis Security Instn~ment shall be reduced by fl~e amount of fl~e Miscellaneous Proceeds multiplied by fl~e following fraction: (a) fl~e total amount of fl~e sums secured iunnediately before fl~e partial taking, destruction, or loss in value divided by (b) fl~e fair u~rket value of flxe Property inunediately before fl~e partial taking, dest~ction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of me Property in Which me fair ~rket value of fl~e Property inunediately before fl~e partial taking, destruction, or loss in value is less ~an fl~e amount of fl~e su~ secured inm~ediately before fl~e partial taking, destruction, or loss in value, u~ess Bmxower.aud Lender o~erwise agree in writing, ~e Miscellaneous Proceeds shall be applied to the sums secured by ~s Security Instrument whefl~er or not fl~e sums are fl~en due. If flxe Property is abandoned by Borrower, or if, after notice by Lender to Borrower that fl~e Opposing Party (as defined in fl~e next senteuce) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender wi~in 30 days after me date flxe notice is given, Lender is au~orized to collect and apply rite Miscellaneous Proceeds eifl~er to restoration or repair of fl~e Property or to ~e sums secured by tiffs Security I~tmment, whefl~er or not ~en due. "Opposing Party" means fl~e flfird party fl~at owes Borrower Miscellaneous Proceeds or ~e party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default ff any action or proceeding, whe~er civil or crinfi~ml, is begun fl~at, in Lender's judgment, could result in forfeiture of fl~e Property or oflxer nmtefial impairment of Lender's interest in fl~e Property or rights under tiffs Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing fl~e action or proceeding to be dismissed wifl~ a ruling fl~at, in Lender's judgment, precludes forfeiture of fl~e Property or off,er material impairment of Lender's interest in fl~e Property or rights under tiffs Security Instnm~ent. The proceeds of any award or claim for dax~ges fl~at are attributable to fl~e impairment of Lender's interest in fl~e Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds ~at are not applied to restoration or repair of me Property shall be applied in fl~e order provi&d for in Section 2. ~6(WY) (0005) P~, s of 16 Form 3051 1101 08 8444 12. Borrower Not Released; Forbearance By Lender Not a Waiver. E×tension of ate time for payxnent or xnodification of amortization of rte 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 rehse to extend time tbr payment or ofl~erwise modify amortization of ~e sums secured by ~is Security h~tnnnent' by reason of any denmnd nnde by fl~e ofigimfl Borrower or any Successors in Interest of Borrower Any forbearance by Lender iii exercising any right or remedy including, wifl~out liufitafion, Lender's acceptance of payments from flfird persons, entities or ~ccessors in Interest of Borrower or in amounts less titan fl~e amount fl~en due, shall not be a waiver of or preclude fl~e exercise of any right or re~nedy. 13. Joint and Several Liability; Co-signers; Snccessors and Assigns Bound. Borrower cove~nts and agrees fl~at Borrower's obligatio~ and liability shall be joint and several. However, any BorroWer who co-agns ~is Security Instrument but does not execute fl~e Note (a "co-signer"): (a) is co-sig~ng ~is Security Inst~ment only to mortgage, grant and convey flxe co-agner s interest in ~e Property under ~e terms of tiffs Security h~tmment; ~) is not perso~mlly obligated to pay fl~e sums secured by tiffs Security Instrument; and (c) agrees ~at Lender and any oflxer Borrower can agree to extend, modify, tbrbear or nmke any acconunodatio~ wiflx regard to fl~e tern~ of tiffs Security Instrument or fl~e Note wiflxout ~e co-signer's consent. Subject to flxe provisio~ of Section 18, any ~ccessor in Interest of Borrower who assumes Borrower's obligations under tiffs Security Instm~nent in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under tiffs Security Instrument. Borrower shall not be released from Borrower's obligatio~ and liability under ~is Security Instrument mfless Lender agrees to such release in writing. The core.uts and agreements of tiffs Security Inst~ment shall bind (except as provided in Section 20) and benefit flxe successors and assigns of Lender. 14. Loan Charge. Lender ~y charge Borrower fees for services performed in co~mection wifl~ Borrower's default, tbr fl~e propose of protecting Lender's interest in fl~e Property and rights under Security Inst~ment, including, but not li~ted to, attorneys' fees, property ix~pection and valuation fees. In regard to any.off, er fees, fl~e absence of express authority in tiffs Security hnt~ment to charge a specific fee to Borrower shall not be co.trued as a prolfibition on flxe charging of such fee. Lender nmy not charge fees fl~at are expressly prolfibited by tiffs Security Instxnment or by Applicable Law. If fl~e Loan is subject to a law which sets naximmn loan charges, and fl~at law is fi~mlly interfered so ~at rite interest or off, er loan charges collected or to be collected in com~ection'with flxe Loan exceed fl~e pen~tted linfits, fl~en: (a) any such loan charge shall be reduced by fl~e a~nount necessary .to reduce fl~e charge to fl~e perufitted li~t; and (b) any sun~ already collected from Borrower which exceeded pernfitted linfits will' be rounded to Borrower. Lender ~y choose to n~ke tiffs re.nd by reducing fl~e principal owed under ~e Note or by n~king a direct payment to Borrower. If a re.nd reduces principal, fl~e reduction will be treated as a partial prepayment wi~out any prepaymeut charge (whereof or not a prepayment charge is provided for under flxe Note). Borrower's acceptance of any such rehnd nmde by direct payment to Borrower will co~titute a waiver of any right of action Borrower nfight have arising out of such overcharge. 15. Notices. All notices given~by Bon'ower or Lender in co~mection wi~ ~is Security I~t~ment nmst be in writing. Any notice to Borrower in com~ection wifl~ this Security I~t~ment shall be dec,ned to have been given to Borrower when ~iled by first class ~il or when actually delivered to Borrower's notice address if sent by o~er mea~. Notice to any one Borrower shall cmntitute notice to all Borrowers u~ess Applicable Law expressly requires oflterwise. The notice address sball be fl~e Property Address u~ess Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, ~en Borrower shall o~fly report a change of address fl~ough fl~at specified procedure. There ~y be o~y one desigxmted notice address under ~is Security Inst~ment at auy one time. Any notice to Lender shall be given by delivering it or by nmiliug it by first class nmil to Lender's address stated herein mfless Lender has desig~mted anofl~er address by notice to Borrower. Any notice in com~ection wiflx tiffs Security h~t~ment shall not be deemed to have been given to Lender until actually received by Lender. If auy notice required by tiffs Security Inst~ment is also required under Applicable Law, file Applicable Law requirement will satisfy fl~e corresponding requirement under ~is Security I~tmnlent. ~6{WY) Iooosl P~e ~o o¢ ~5 Form 3051 1/01 16. Governiug Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it nfight 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 Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of wlfich 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 trausferred) without Lender's prior written consent, Lender may require immediate payment in full of all stuns secured by this Security Instrumem. 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 front the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have' enforcement of this Security Instrument discoutinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment. enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all stuns which then would be due under this Security Instrmnent and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses lucre-red in enforcing this Security Instrmnent, including, but not linfited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting L, ender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to.pay the sunls secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatemeut sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security h~strument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in rite Note (together with this Security Instrumen0 can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (latown as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under rite Note, this Security Instrument, and Applicable Law. There also nfight be one or more changes of rite Loan Servicer mtrelated to a sale of the Note. If there is a change of rite Loan Servicer, Borrower will be given written notice of the change wlfich will state the lntme and address of file new Loan Servicer, rte address to which payments should be nmde and any other information RESPA {~)~-6(WY) (ooosl Page ~ of ~s :~ 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 oilier 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 nnless 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 niember of a class) that arises from die other party's actions pursuant to this Security Instrmnent or that alleges that the oilier party has breached any provision of, or any duty owed by reason of, this Security Instrument, umil such Borrower or Lender has notified the other party (with such notice given in compliance with the requireznents 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 ~aken, that ti~ne period will be deemed to be reasonable for pm'poses of this paragraph. The notice of acceleration and opportmfity 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. H~ardous SUbstances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substanceS, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive nmterials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Euviromnental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Enviromnental 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 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 Enviro~nnental Law, (b) which creates an Enviromnental 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 maintenance of the Property (including, but not linfited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand,, lawsuit or oilier action by any govenanental or regulatory agency or private party involving the Property and any Hazardous Substance or Enviromnental Law of wlfich Borrower has actual knowledge, (b) any Environmental Condition, including but not linfited 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 govermnental 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 remedia} actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Enviromnental Cleanup. (~-6(WY) Iooosl Page 12 of 1§ 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 following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice sball specify: (a) the default; (b) tile action required to cure tile default; (c) a date, not less than 30 days from the date tbe notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall furtber inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. 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 all sums secured by this Security ][nstrmnent without further demand and may invoke tbe power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect'all expenses incurred in pursuing the remedies provided in this Section 22, including, but 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 in Section 15. Lender shall publish the notice o'f 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, inclnding, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to tile person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but oLfly if the fee is paid to a third party for services rendered 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 Wyonfing. Form 3051 BY SIGNING BELOW. Borrower accepts and agrees to fl~e terms and covenants contained in tiffs Security Instrument and in any Rider executed by Borrower and recorded wifl~ it. Witnesses: SANDRA L CHAVEZ -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~}~6(WY) (0006) Page 14 of 15 Form 3051 1/01 STATE OF WYOMiNG, L'rNCOLN The foregoing instrument was acknowledged before me this by LAWRENCE L CHAVEZ AND SANDRA L CHAVEZ County ss: My Comnfission Expires: JILL~"c"~H.'~R~"S~O~- N'c'~O~.~IY P'~BLI~ MycO~M~: (~-6G(WY) (ooo6) Page 15 of 1 5 Form 3051 1/01