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HomeMy WebLinkAbout900253Return To: Prepared By: Finance America, LLC P.0. BOX.16637 Irvine. Ca. 92623-66~7.01.Jg,.j,,orlO,, RECEIVED LIf',lOOLtq CO hiT" CLERK Karen Cornell 16802 Aston Street Irvine, CA 92606 BOOK lSpace Above This Line For Recording Data] MORTGAGE MIN 100052300403247413 DEFINITIONS Words used in multiple sec~tiGns of this document are defined below and other words are defined in Sections 3. 11, 13, 18, 20 md: 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated together with all Riders to t;~is document. (B) "Borrower" is NATHAN C. HEZS.C',JR. AND OBREY J. HEISS JUNE 11, 2004 HUSBAND AND WIFE Borrower is the mortgagor .under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee.fro~ Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrur~ent. MERS is organized and existing under the laws of Delaware, and has an address and telephone number.of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fanni~:'Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS (~I®-GAIWY) iooos}.o~ VMP MORTGAGE FORMS - 1800152,1-72,Jl FLqBN Form 3051 1/01 (D) "Lender" is Finance Anarica, LLC Lender is a Limited LiabiLity Company organized and existing under t. ae laws of Delaware Lender's address is 16802 A~ton Street Irvine , CA 92606 (E) "Note" meansthe pro'missory; note signed by Borrower and dated JUNE 11, 2004 The Note states that Borrowe~ owes Lender SEVENTY THOUSAND AND NO/100 Dollars (U.S. $ 70,000.00 !) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in'full not later than JULY 01, 2034 (F) "Property" means the prcperty that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt ev,dt.nced by the Note, plus interest, any prepaymentcharges and late charges due under the Note, and all sum.,', due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [-~ Adjustable Rate Rider ~-~ Condominium Rider [---] Second Home Rider [-~ Balloon Rider [-~ Planned Unit Development Ride~-] 1-4 Family Rider ~ VA Rider ~-] Biweekly Payment Rider ~ Other(s) [specifyI Legal Desc. XX Prepayment Rider (1) "Applicable Law" mean.,; all controlling applicable federal, state and local statutes, regulations, ordinances and administrative ~ules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinioas. (J) "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 sinfilar organizatic,n. (K) "Electronic Funds Tran,.-:l'e;:" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to ordeL instruct, or authorize a financial institution to debit or credit an account. Such te:'m includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means thc se 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 nsurance 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 l let: of condemnation;or (iv) misrepresentationsof, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" m ~ans insurance protecting Lender agmnst the nonpayment of, or default on, the Loan. (O) "Periodic Payment" mea~s the regularly scheduled amountdue 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 SettlementProceduresAct (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or succ:ssor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirementsand restrictions that are imposed in regard to a "federally related mortgage !oan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6AIWY) Page 2 ot 15 Form 3051 1101 · ,. !86 (Q) "Successor in Interest t,f Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations nnder the Note and/or this Security Instrument. TRANSFER OF RIGHTS liN THE PROPERTY This Security Instrumentsec;:~res to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; at d (ii) the performance of Borrower's covenants and agreements under this Security Instrumentand.the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to ~he successors and assigns of MERS, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF Parcel ID Number: 3218~',0510150000 292 4TH AVENUE AFTON ("Property Address"): 295 4TH AVENUE, which currenlly has the address of [Street] [City] , Wyoming 8 3110 [Zip Code] AFTON, WY 83110 TOGETHERW1TH ell the improvements now or hereafter erected on the property, and all easements, appurtenances, ~nd f'Lxtures now or hereafter a part of the property. All replacements and additions shall also be coveret~ by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Pro ?erty." Borrower understands and agrees that MERS hol ds only legal title to the interests granted by l~ on'ower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's snccessors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not lilnited to, releasing and canceling this Security Instrument. BORROWERCOVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant' and convey the Property and that the Property is unencumbered, except for encumbrancesof record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject~ to any' encumbrances of record. THIS SECURITY INST~UMENTcombines uniform covenants for national use and non-uniform covenants with limited varia'fions by jurisdiction to constitnte a uniform security instrument covering real property. (~-6A(WY) IooosLo~ Page 3 o{ 15 Form 3051 1/01 MAEX 187 UNIFORMCOVENAbE_,'S. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges, Borrower shall pay when due the: principal of, and interest on, the debt evidenced by the Note and any prepayment charges and ,late charges due under the Note. Borrower shall also pay funds for Escrow I rems pursuant to Section 3. Payments idue under the Note and this Security InStrumentshall be made in U.S. currency. However, if any che :k or other instrumentreceived by Lender as payment tinder the Note or this Security Instrumentis returnedto Lender unpaid, Lender may require that any or all subsequentpayments due tinder the Note and this 'Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any su:h check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Fun ds Transfer. Payments are deemedreceived by Lender when received at the location designated in the Note or at such other location as may be des;.gnated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunderor prejudice to its rights to refuse such payment or partial payments in the future, but Lend/~r 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. Lc nd:r may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower :loes not do so within a reasonableperiod of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance nnder the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due tinder the Note and this Security Instmmentor Perfornfing the covenants and agreementssecuredby this Security Instrument. 2. Application of PaYn"en/':s 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) princ:pal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each PerioJic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security instrument, and then to reduce the principal b~ lar ce of the Note. If Lender receives a paymeat from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any l~tte charge due, the payment may be applied to the delinquent payment and the late charge. If more than o~te 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 an~ excess exists, after the payment is applied to the full payment of one or more Periodic Payments, such.excess may be applied to any late charges due. Voluntary prepaymentsshall be applied first to any prepayment charges and then as described in the Note. Any application of paym?t.;, insur'ance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or p¢~stpone the due date, or change the amount, of the Periodic Payments. 3: FUnds for Escrow Item~,. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note. is paid in full, a sum (the"Funds") to provide for payment of amounts due for:' (a) taxes and assessments !md other items which can attain priority over this Security Instrumentas a lien or encumbranceon the Prop¢',rty; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all ins.urance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender 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 Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessmentsshall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Bcrr6wer shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to payS'the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of sud waiver, Borrower shall pay directly, when and where payable, the amounts (~-6A(WY) Iooosko~ MACU Page4of 15 Form 3051 1/01 0 0085 due for any Escrow Items for Whi(~h payment of Funds has been waived by Lender and, if Lenderrequires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make suah payments and to provide receipts shall for all purposesbe deemedto be a covenant and agreementt ontained in this Security Instrmnent, as the phrase"covenant and agreement" is used in Section 9. If Borr'~wer is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender m ay exercise its rights under Section 9 and pay such amount and BoTrovl,er shall then be obligated under Section 9 to repay to Lender any such amount Lender may revoke ':he 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 rcqulred under this Section 3. Lender may, at any time collect and hold Funds in an amount (a) sufficient to perm. it Lender to apply · the Funds at the time specifi~::d under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender sl'.hll estimate the amount of Funds due on the basis of current data and reasonable estimates of ex,er dirt:res of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be h,:ld 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. Leu,der shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account,' or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pe'rmiis Lender to make such a charge. Unless an agreementis marie in writing or Applicable Law requires inlterest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on tl;e Funds. Borrower and Lender can agree in writing, however, that interest shall..be paid on the Funds. ii'~encer shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA,~ If there is a surplus of ;Fuhds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordancewith RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lerder shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary ':o make up the shortage in accordancewith 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 l~y Lender. 4. Charges; Liens. Berrower 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 CommunityAssociation Dues, Fees,· and Assessments, if any. To the extent that these items arc: Es':row Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptl)' discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writin;,~ to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long a'g Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcemehtof the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcementof th~ li~n while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreementsatisfactory to Lender subordinating the lien to this Security Instn;ment. If Lender determinesthat any part of the Property is Subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the (~-6A(WY) {ooo5).o~ Page 5 o! 15 Form 3051 1/01 0 900 5:j lien. Within 10 days of the daf~e 6n which that notice is given, Borrowershall satisfy the lien or take one or more of the actions set forth a.bove in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate t~ verification and/or reporting service used by Lende: M connection with this Loan. S. Property Insurance. ~cxrower shall keep the improvements now e~sting or hereafter erected on the Property insured againsl los~'; by fir~, hazards included widfin thc term "e~ended coverage," and any other hazards includMg, but not' limited to, earthquakesand .floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lendei rt~quires 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 Borrowe~:'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 ar d tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency ManagementAgency in connection with the review of any flood zone dete~ ruination resnlting 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 ~overage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrow.~r'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 amounts shall bear in ;erest at the Note rate from the date of disbursement~d 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 poli~:ies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/oras an additionalloss payee. Lender shall have thc right to hold the policies and renewal certificates. If Lender requir%, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction o(, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Bor. rower 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 requiredby Lender, shall be applied to restorationor re')a.r of the Property, if the restorationor repair is economically feasible and Lender's security is not lessen:ed. During such repair and restorationperiod, Lender shall have the right to hold such insurance proceeds antil Lender has had an opportunity to inspect such Property to ensure the work has been completed to'Lgnder's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disbur~'e proceeds for the repairs and restorationin a single paynient or in a series of progress payments as the wor[ is completed. Unless an agreementis made in writing or Applicable Law requires interest to be paid on st ch insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such p~:oceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid our' of the insurance proceeds and shall be the sole .obligation of Borrower. If the restorationor repair is not e~onomically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to tl.~e ,~ums secured by this Security Instrument, whether or not then due, with ~W-6A(WY) looosLo~ , , P.o.e.~ ~5 ' ' Form 3051 1/01 HJ~KF 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 Froperty, Lender may file, negotiate and settle any available insurance claim and related matters. If Borl'ower does not respond within 30 days to a notice from Lender that the insurance carrier has offered tc settle a claim, then Lender [nay negotiate and settle the claim. The 30-day period will begin when the notii:e is given. In either event, or if Lender acquires tile Property under Section 22 or otherwise, Bm:rower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to cxc:ed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's figl-ts (other than tile right to ally refund of unearned premiums paid by Borrower) under all insurance'po!icies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lend'er '.nay use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower. shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to' occupy the Property as Borrower's princip, al ?esidence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, ~ivhich consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are l!).eyond Borrower's control. 7. Preservation, Mainteaance and Protection of tile Property; Inspections. Borrower shall not destroy, damage or impair ff~e Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Bor:ower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property i?o-n deteriorating or decreasing in value clue to its condition. Unless it is determined pursuant to Sectio(~ 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property, if damaged to avoid further deterioration or damage. If insurance or condemnationproceeds are pa!d itl connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairlng.or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse,'proceedsfor the repairs and restorationin a single payment or in a series of progress payments as the workI is completed. If the insurance or condemnationproceeds are ]lot sufficient to repair or restore the Proper;y, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may~.make reasonable'entries upon and inspections of the Property. If it has reasonablecause, Lender may .'aspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of:or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Applilzation. Borrower shall be in default if, during the Loan application process, Borrower or any pei. sons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave ma~ter;ally false, nfisleading, or inaccurate information or statementsto Lender (or failed to provide. Lend¢;r with material information) in connection with the Loan. Material representationsinclude, but ar'~ not limited to, representationsconcerning Borrower's occupancy of the Property as Borrower's princit~al residence. 9. Protection of Lender's,, h~terest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreementscontained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/orrights under this Security Instrument(such 'as a proceeding in bankruptcy, probate, for condemnationor forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has,abandonedthe Property, then Leoder may do and pay for whatever is reasonable or appropriate to ?r~tect Lender's interest in the Property and rights under this Security Instrument, including protecting and/orassessing the value of the Property, and securing and/orrepairing the 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 (~-6AIWY) Iooo5~]o~ VJAHC Page 7 of 15 Form 3051 1/01 0(30013551 attorneys' fees to protect its interest in the Property and/orrights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may:take action under this Section 9, Lender does not have to do so and is not under any duty or obligation t ) do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this ',;e :lion 9. Any amounts disbursed ~y Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrm~ent. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security InstrUmentlis on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fe.~ title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger ia writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premit m;required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously Provided such inst rance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivale~t to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to BorrcWer of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designatedpayments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable toss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any iW~erest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amouut and for the period that Lender requires) provided by an insurer selec;~ed, 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 ma;!ing the Loan and Borrower was required to make separately designated payments toward the-premimns'for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance ia'~ effect, or to provide a non-refundable loss reserve, until Lender's requirementfor Mortgage Inst~ranceends in accordancewith any written agreementbctween Borrower and Lender providing for such termination or until terminationis required by Applicable Law. Nothing in this Section 10 affects Borrower's :~bligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does net repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. ' Mortgage insurers evaluvte their total risk on all such insurance in force from time to time, and may enter into ag.reementswith oth'gr parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions War are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreem,~ntsmay require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). ; As a result of these agregments, 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 chin acterizedas) 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, ,th ~ arrangement is often termed "captive reinsurance." Further: (a) Any such agreements'will not all'ecl the amounts that Borrower has agreed to pay for Mortgage Insurance, or any.oliver terms of the Loan. Such agreements will not increase the amount Borrower will owe t'or Mortgage'lnsnrance, and they will not entitle Borrower to any refund. ,.i,i~,~:~ DC/') (~-6AJWY) IooosLo~ Page 8 ol ~s Form 3051 1101 (b) Any such agreemenr, s vail not affect the rigbts Borrower bas - if any - with respect to tile Mortgage Insurance under the Homeowners Protection Act of 1998 or auy other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Iusurance terminated automatically, and/or to receive a refund of any Mortgage Insuraace 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 damagt.:d, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoratioa or repair is economically feasible and Lender's security is not lessened. During such repair and restoradonperiod, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an oppo;-tu,.~ity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertakenprolnptly. Lender may pay for the repairs and restoration in a ~in~;16 disbursement or in a series of progress payments as the work is completed. Unless an agreeme'nti; made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lendbr ];hall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the:re~,'.torationor repair is not economically feasible or Lender's security would be lessened, the Miscellaneon~ P,oceeds shall be applied to tile sums secured by this Security Instrument, whether or not then due, with the excess, it' any, paid to Borrower. Such Miscellaneous Proceeds shall be applied ill the order provided lpr in Section 2. In the event of a total :aking, destruction, or loss in value of tile Property, the Miscellaneous Proceeds shah be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrow~:r. In the event of a partial taki"~g, destruction, or loss in value of the Property in which the fair market value of d~e Property immedi.ate.y before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in. va!ne, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security InstYur~ent shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, o~ loss in value divided by (b) tile fair market value of the Property immediately before the partial,,taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value 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 otherwis, e a.~,ree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security InstrumeCt whether or not the sums are then due. If the Property is abanqloned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in~.:the next sentence)offers to make an award to settle a claim for damages, Borrower fails to respond to L,:nc er within 30 days after the date the notice is given, Lender is authorized to collect and apply the Misct.:llaneous Proceeds either to restoration or repair of the Property or to the sums securedby this Security Ihsti'ument, 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 Proce~ds. Borrower shall be in def~/~ult if any action or proceeding, whether cMl or cri[ninal, is begun that, in Lender's judgment, could resYdt m forfeiture of the Property or other material impairment of Lender's interest in tire Property or righks under this Secm'ity Instrument. Borrower can cure. such a default and, if acceleration has occurred, reinstaie as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material ~mpmrmentof Lender s mtere,;t n~ the Property or rights under tins Secnnty Instrnment The proceeds of any award or claim for damages that are attnbutableto the nnpa~rmentol Lender s interest m the Property are hereby assigned and shall be Ii, aid to Lender. ^11 Miscellaneous Proceeds that are not applied to restoration or repair of the Property shah be applied in theorder provided for :n Section 2. (~)-6A{WY) IO005LO~ HAPK Pagego~15 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amo~ tization of the sums secured by this Security Instrumentgranted by Lender to Borrower or any Successor m :Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest cf 3orrower. Lender shall not be required to commenceproceedings against any Successor in Interest of BOrrower or to refuse to extend time for payment or otherwise modify amortizationof the sums secured:by this Security Instrumentby reason of any demand made by the original Borrower or any Successors ira Interest of Borrower Any forbearanceby Lender in exercising any right or remedy including, without limitiation, Lender's acceptance of payments from third persons, entities or Successors in Interest 0f Borrcwer or in amountsless than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several L~iability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obltgations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrun,,ent but does not execute the Note (a "co-signer"): (a) ~s co-signing this Security Instrumentonly to m 3r :gage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrunf.~nt; (b) is not personally obligated to pay the sums secured by this Security instrument; and (c)agrees th~-t '~ender and any other Borrower can agree to extend, modify, forbear or make any accommodationswi~:h .regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisior s '~of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under fhi~ Security Instrumentin writing, and is approved by Lender, shall obtain all of Borrower's rights and b~n~fits under this Security Instrument. Borrower shall not be released from Borrower's obligations and lia'Sility under this Security Instrumentunless Lender agrees to such release in writing. The covenants and ag/cements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the pt,ri:ese of protecting Lender's interest in the Property and rights under this Security Instrument, including k ut not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the: a~?sence of express authority in this Security Instrumentto 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 prohibi!:ec by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpretedso that the interest or other loan ~'harges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) an) s'.~ch loan charge shall be reduced by the amount necessary to reduce the charge to the permittedlimit; .~nd (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Bo.crower. Lender may choose to make this refund by reducing the principal owed under the Note or by !.ri(king a direct payment to Borrower. Ifa refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provide~ f~r under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower wi I constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice, to Borrower in connection with this Security Instrumentshall be deemed to have been given to Borrowerlwhen mailed by first class mail or when actually delivered to Borrower's notice address if sent by other' re'cans Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expreisly requires otherwise. The notice address shall be the Property Address unless Borrower has designate d a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's chalage of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one desigt~a~ed notice address under this Security Instrument at any one time. Any notice to Lender shall be given ':)y delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender ha~ designated another address by notice to Borrower. Any notice in connection with this Security I nstrumentshall not be deemed to have been given to Lender until actually received by Lender. If any nct.ic~e required by this Security Instrumentis also required under Applicable' Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. (~)~-fiA{WY) Iooo5}.ol Page ~oo* ~s " Form 3051 1/01 FL&RI 'i 16. Governing Law; Se~erability; Rules of Construction. This Security Instrument shall be governed by federal law and th/: law of the jurisdiction in which the Property is located. All rights and obligations contained in thins Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable La~ might explicitly or implicitly allow the parnes to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreementby contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not ~affi:~ct other provisions of this Security Instrumentor the Note which can be given effect without the confl,icti!~g provision. As used in this Securiily i~nstrnment: (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 vers~; 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 Instrnment. 18. Transfer of the Prop.'~rty or a Beneticial Interest in Borrower. As used in this Section 18, "Interest in the Property" melan~,~, any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests I!rar~sferredin a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intenl of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the.Property or any Interestin the Property is sold or transferred(or if Borrower is not a natural person and a'beneficial interest in Borrower is sold or transferred)without Lender's prior written consent, Lender ma~ r.~quire immediate payment in full of all sums secured by this Security Instrument. However, this Option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this' ot:fion, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less Ihaa 30 days from the date the notice is given in accordance with Section 15 within which Borrower mus'~ pry all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the exp:~iration of this period, Lender may invoke any remedies permitted by this Security Instrument without ~urther notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the rigf'.t to have enforcement of this Security Instrument discontinued at any time prior to the earliest of (a) fi~"e ~ays 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 reinstale; or (c) entry of a judgment enforcing this Security Instrnment. Those conditions are that. Borrower: {a) pays Lender all sums which then'would be due under this Security Instrumentand the Note as if. no accelerationhad occurred; (b) cures any default of any other covenants or agreements; (c) pays all expehsds incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fe<.s,'property inspection and valuation fees, and other fees incurred for the purpose of protecting Lende?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 Instrmnent, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatementsums and expenses· in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, :reitsurer'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 reinstate~nentby Borrower, this Security Instrumentand obligations secured hereby shall remain fully effective a:s 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't)f Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Se~urity Instrument)can be sold one or more times ·without prior notice to Borrower. A sale might res':~lt in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under tlie Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one 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 gDen written notice of the change which will state the name and address of the new Loan Servicer, the add:/es~ to which payments should be made and any other information RESPA (~)¢,-6A(WY) {ooos}.m i Page 11 o! 1§ Form 3051 1/01 HAS× 0:9(}Oa 195 requires in connection with a notic: of transfer of servicing. If the Note is sold and thereafterthe Loan is serviced by a Loan Servicer otl~ er i han the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remainwith t~.e Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lendermay commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrumentor that alle~:es ~hat 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 witt' the requirementsof Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given ~o Bon~ower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 si~all be deemed to satisfy the notice and opportunity to take corrective action provisions of this Sectiov. 20 21. Hazardous Substanc'es.~As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or Eazzrdous substances, pollutants, or wastes by EnvironmentalLaw and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or forlnaldehyde, and radioactive materials; (b) "Environmental Law" mean,/fe/leral laws and laws of the jurisdiction where the Property is located that relate to health, safety or envitonmental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or rem'3val action, as defined in EnvironmentalLaw; and (d) an "Environmental Condition" means a condition~ that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause c r permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threatento relea:ile ahy HazardousSubstances, on or in the Property. Borrower shall not do, nor allow anyone else to do, arything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Envi~ onmentalCondition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a co~adition that adversely affects the value of the Property. The preceding two sentences shall not apply ro X_he presence, use, or storage on the Property of small quantities of Hazardous Substances that are ger~erally recognized to be appropriate to normal residential uses and to maintenance of the Property (ir.cluding, but not limited to, hazardous substances in consumer products). Borrower shall promptly give'Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including., but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Subs~:am:e, and (c) any condition caused by the presence, use or release of a HazardousSubstancewhich advers.:ly affects the value of the Property. If Borrower learns, or is notified by any governmental or regulat.ory.authority, or any private party, that any removal or other remediation of any HazardousSubstance aff(:cting 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 Envirorimental dleanup. (~-6AiWY) Iooos}.o~ FLAUIJ Patio Form 3051 1/01 NON-UNIFORMCOVEN~,NTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedie~'. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in tbis Security Instrument (but not prior to acceleration under Section 18 ut,less Applicable Law provides otherwise). The notice shall specify: (a) the delhult; (b) the action rtquired to cure the default; (c) a date, not less titan 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that lhilure to cure the default on or before the date specified in the notice may result in acceleration of tbe sums secured by this Security Instrument and st':le of the Property. The notice sball further inform Borrower of the right to reinstate after accel ~ration and the right to bring a court action to assert the non-existence of a default or any other defense ef Borrower to acceleratiou 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 Securirff Instrument without further demand and may invoke the power of sale and any otber remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing tIie remedies provided itt this Section 22, including, but not limited to, reasonable attorneys' fees ard 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 posse:isio~ of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the role to Bm'rower in the manner provided in Section 15. Lender shall publish tbe notice of sale, and tbe 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 slmll be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' lees; (b) t,o all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security InstrumeW_,but only if the fee is paid to a third party for services renderedand the charging of the fee is permitf~,d under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of lite homestead exemption laws of Wyoming; (~}~-6A{WY) Iooos}.o~ .HAl, II Page 13 of 15 Form 3051 1/01 0fi 002:53 BY SIGNING BELOW, F, orrower accepts and agrees to the terms and covenants contained in this Security Instrument and in axiy Rider executed by Borrower and recorded with it. Witnesses: , ' /'/~_'/~ (Seal) NATHAN C. HEISS -Borrower OBREY d HEISS -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~6AIWY) Iooos}.o~ MAYF Page Form 3051 1/01 O O0;d. Lt STATE OF WYOMING, by The foregoing instrument was acknowledged before me this / / My Commission Expires: 5'~ ~ /rig/ Notar~ Public ~-6AIWY) IooosI.m Page 1 § of 15 Form 3051 1101 MBA.& ! 99 LEGAL DESRIPTION Part of Lot 1 of Block 22 to I.he Town of Alton, Lincoln County, Wyoming more particularly described as follows: Commencing at a point which is the Northeast Corner of said Lot 1 and running thence West 4 rods; thence South 6 rods; thence East 4 rods; thence North 6 rods to the Foint of beginning. LESS AND EXCEPT any lard contained in Quit Claim Deed recorded December 28, 1998 in BOok 423PR on page 611 of ~.he records of the Lincoln County Clerk. RETURN RECORDED DOC.TO: Finance America, LLC P.O, Box 16637 Irvine, Ca 92623-6637 O.900k:, d 0 MIN 100052300403247413 ADJUSTABLE RATE RIDER (LIBOR Index - Rate Caps) THISADJUSTABLF~LaTER1DERis madethis llth day of JUNE , 2004 , and is incorporatedinto and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Securitv 'nstrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to Finance America, LLC (the "Lender") of the sanie date and covering the property described in the Security Instrmnen rand located fie 292 4TH AVENUE, AFTON, WY 83110 [Property Address[ THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BgRROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVEN?~ITS. In addition to the covenants and agreementsmade in the Security Instrmnent, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTItLY PAYMENT CIIANGES The Note provides for an initial interest rate of 6.5 0 5 changes in the interest rate ',tn J the monthly payments, as follows: %. The Note provides for 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of JULY 01, 2006 , and on that day every sixth month thercafter..Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE R/~TE RIDER (LIBOR Index} - Single Family - Freddie Mac UNIFORM INSTRUMENT (~?~,815R (0008) Form 3192 1/01 Page 1 of 4 Initiah;: VMP MORTGAGE FORMS - (8001[;2!-7291 MGMW 201 (B) The Index Beginning with the first Change Date, my interestrate will be based on an Index. The "Index" is the average of interbank offered rmes for six-month U.S. dollar-denominateddeposits in the London market ("LIBOR"), as published in The I4%ll Street Journal. The most recent Index figure available as of the first business day of the month immt;& ately preceding the month in which the Change Dat~ occurs is called t he "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding FIVE AND 75/100 percentage points ( 5. 750 %) to the Current Index. The Not ~ Holde:: will then round the result of this addition to the nearest one-eighth of one percentagepoint (0.125%). Snb ect to the limits stated in Section 4(D) below, this rounded amountwill be my new interest rate Until the nexq Change Date. The Note Holder will then determinethe aaiount of the monthly payment that would be sufficient to repay the unpaid principal that I'~ mn expected to owe at the Change Date in full on the matarity date at ~ny new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9. 505 % or less than 6. 505 %. Thereafter, my interest rate will never be increased or decreasedon any singie Change Date by more than one percentagepoint (1%) from the rate of interest I have been paying fo~ the preceding six months. My interest rate will never be greater than 12.505 %' MY interest rate will never be lower than the initial inter~st rare stated in Paragraph A of this Rider. (E) Effective Date of Changes My new interest rate will bezome effective on each Change Date. I will pay the amount of my new monthly payment beginning on ~he first monthly payment date after the Change Date until the amount of my monthly payment changes again. (~)d8~ sa (ooo8) Initials: OJ7+~/~ ~ Page 2 ot 4 Form 3192 1/01 MGFLX (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment befor: the effective date of any change. The notice will include information required by law to'be given to me and also the title and telephonenumber of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the ge:urity Instrument is amended to read as follows: Transfer of the P:operty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Pro'oerty" means any legal or beneficial interest in the Property, including, but not limited to, thos: beneficial interests transferred in a bond for deed, contract for deed, installment sales contrazt ~r escrow agreement, the intent of which is the transfer of title by Borrower at a future dale ).o a purchaser. If all or any part o' the Property or any Interestin the Property is sold or transferred(or if a Borrower is not a natdral person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all stuns secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to :Ye submitted to Lender informatiou required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines t.aat Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreementin this Security Instrumentis acceptableto Lender. To the extent per:'nkted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption Lender in ay also require the transfereeto sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue, to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercise's the option to require hnmediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is giver in accordancewith Section 1.5 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pcrmittedby this Security Instrument without further notice or demand on Borrower. I1~1~815R (0008) Page 3 of 4 Form 3192 1/01 HCHY BY SIGNING BELOW, 15 orrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. NATHAN C. HEISS -Borrower OBRE I S S -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~815R (0008) Page 4 of 4 Form 3192 1/01 MGMZ '"04 RECORDING REQUESTED BY, AND WHEN RECORDED :NC&IL TO: Finance America, LLC P.0 Box 16637 Irvine, Ca 92623-6633 (Space above this line for Recorder's use) PREPAYMENT RIDER MIN 100052300403247413 DATE: 06/11/04 FOR VALUE RECEIVED'the undersigned ("Borrower") agree(s) that the following provisions shall be incorporatedinto and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Secnrity Deed of even date herewith (the "Security [nsti'ument") executed by Borrower, as trustor, in favor of Finance America, LLC ("Lender"), as beneficiary, and also intc that certain promissory note (the "Note") of even date herewith executed by Borrower in favor of Lender. To the extent that the provisions of this PrepaymentRider are inconsistent with the provisions of the Security Instrument and/orthe Note, the provisions of this Prepayment Rider shall prevail over and shall supersede any such inconsistent provisions of the Security Instrument and/or the Note. Section 5 of the Note ils amended to read in its entirety as follows: MULTISTATE FIRST MORTGAGE 1196181 ~o2o3~ ATUX Page 1 of 2 VMP MORTGAGE FORMS - 1BO0~521 729I (09/10/96} O OOZo " 5 . BORROWER'S RIGHT TO PREPAY; PREPAYMENT CItARGE I have the right to make t~,ayments of principal at any time before they are due, together with accrued interest. When I make a prepayment, I wilt tell the Note Holder in writing that I am doing so. If I make a partial prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. If within T~40 ( 2 ) years from the date of execution of tim Security Instrument(as defined above) I make a full prepaymentor partial prepayment(s), I will at the same time pay to the Note Holder a prepayment charge. An amount not exceeding twenty percent (20%)iof !he original principal amount may be prepaid in any twelve-month period without penalty. A prepaymentcharge will be imposed on any amount prepaid in any twelve-month period in excess of twenty pmcm,t (20%) of the original principal amount of the loan which charge shall not exceed an amount equal to 'the payment of six months' advance interest on the amount prepaid in excess of twenty per,cent (20%) of th(. original principal amount. IN WITNESS WHEREOF, the Y'orrower has executed this Prepayment Rider on the I I Borrower NATHAN C. HEIS.S Borrower OB~EY'~J. HEISS day of FIRST MORTGAGE 1196181 Borrower Page 2 of 2 MULTISTATE (09110/96) ATIJ~ 0040324741 LOAN ID'