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HomeMy WebLinkAbout900265Return To: Argent Mortgage Compar. y. P.O. Box 14130. Orange. CA 92863-1530 LLC Prepared By:Argent Mortgage Company. LLC Brenda Diakow 2550 Gol¢ Road, East lower. loth Floor. Rolling Moa~,dows. IL 60008 [Space Above Tiffs Line For Recording Data] MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 ~d.21. Certain rules regarding the usage of words used in this documem are also provided in Section 16. (A) "Security Instrument" me;ns this document, which is dated 3 u ne together with all Riders to thi:; document. (B) "Borrower" is 10M N. NELSON and DEBORAH A. LYNCH 11, 2004 Borrower is the mortgagor un,]er this Security Instrument. (C) "Lender" is Argent Mortgage Company. LLC Lenderisa Limited Liab:i'ity Company organized and existing under Iht laws of De l awa re WYOMING-Single Family-Fannie Vll.e/Freddie Mac UNIFORM INSTRUMENT Page 1 of 15 Initmls:._~ VMP MORTGAGE FORMS - (800)621-12.ql 0058666132 -9704 Form 3051 1/01 06/10/2004 11:26:05 CA 92868 Lender's address is One Cit'y !Boulevard West Orange, Lender is the mortgagee under, this Security Instrument. iD) "Note" means the promiss?ry note signed by Borrower and dated J u n e 11, 2004 The Note states that Borrower:owes Lender one hundred two thousand two hundred and 00/100 : ' Dollars (U.S. $102,2 00.00 ' ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and'to pay the debt in i'ull not later than Jul y 1, 2034 (E) "Property" means the pr~}~pc, rty 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 interest. (G) "Riders" means all Ridms to this Security Instrument tbat are executed by Borrower. The following Riders are to be executed by Bor:ower [check box as applicable]: [---[ Adjustable Rate Rider [:7 Condominium Rider {---] Second Home Rider [--] Balloon Rider [,] Planned Unit Development Rider {---] 1-4 Family Rider [---I VA Rider L-~ Biweekly Payment Rider ~ Other(s) [specifyl (It) "Applicable Law" memas 'all controlling applicable federal, state and local statutes, regulations, ordinances and administrativeirules and orders (that have the effect of law) as Well as all applicable final, non-appealable judicial opiniohs.: (1) "Community AssociationlD'.~es, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on [:lorrower or the Property by a condominium association, homeowners association or similar organiz~tio'n. '(J) "Electronic Funds Tran:~fer" means any transfer of funds, otlier than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or mag.net, lc tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such tern: includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transtkrs initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds"' means any compensation, settlement, award of dmnages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of. the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in .lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Pre perry. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means Ihe regularly scbeduled amount due for (i) principal and iuterest under the Note, plus (ii) any amounts.ur~der Section 3 of this Security Instrument. (O) "RESPA" means the Real [:;state Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. 11~-6(WY) 1ooo5} P~ge2o~l§ 06/10/2004 11:26:05 Form3051 l/O1 ogooa i ; (P) "Successor in Interest of Borrower" means any party that has taken title'to the Property, whether or not tbat party has assumed Borrower's obligations under the Note and/or this Security Instrument. 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 performance of Borrower's covenants and agreements under this Security Instrument m~d the Note. For this 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 Count:3; of LINCOLN : [Type of Recording 'lurisdiction] [Name o f Recording Jurisdiction] LEGAL DESCRIPTION ATT~'CHED HERETO AND MADE A PART HEREOF: ParcellD Number: 26141120100100 188 BIG SPRING DRIVE LA BARGE ("Property Address"): which currently has the address of [Street] [Cityl , Wyoming 83123 [Zip Code] TOGETHER WITH all tae improvements now or hereafter erected on Ihe property, and all easements, appurtenances, ant fixtures now or hereafter a part of the property. All replacements and additions shall also be covere:l by this Security Instrument. 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 ane convey the Property and thai the Property is unencumbered, except for encnmbrances of record. Borrower warrants and will defend generally the title to the Property against all clai~ns and demands, subject to aay encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variatiens by jurisdiction to constitute a uniform security iustrumen! covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal. Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due tl:e prinmpal 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 pursuam to Section 3. Paymems due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check' or other instrument received by Lender as payment under the Note or this 0058666132 - 9704, ~ (~)~-6{WY) (ooo§) Page3°l~ ~ 06/10/2004' 11:26 :'0'~ Fbrm 3051 1/01 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the lbllowing forms, as selected by Lender: (a) cash: (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any sach check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, )r 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 may be :lesignated 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. LendOr 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 Paylnent is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lsnder may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrowerl 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 the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the f~t~.lre against Lender shall relieve Borrower from making payments due under the Note and this Security Insmzment or perfornfing the covenants and agreements secured by this Security Instrument. 2. Application of Pay~nents or Proceeds. Except as otherwise described in this Section 2, all payments accepted m~d applie:l ay Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) an~ounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the pnncipal b;Jlance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any ~la'~e charge due, the payment may be applied to the delinquent payment 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 the payment is applied to the full payment of one or more Periodic Payments, suct excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or p0s~pone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow I~:ems. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Not/: is paid in full, a sum (the "Funds") to provide, for payment of amounts due for: (a) taxes and assessments, and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Froperty; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance 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 accmdance with the provisions of Section 10. These items are called "Escrow Items." At origination or at .tn~, time during the term of the Loan, Lender may require that Coimnunity Association Dues, Fees, and, /~ssessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow:Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts (~-6(WY) Iooo5} 0058666.132 - 9711.4 06/10/2004 11:26:05 Forth3051 1101 ,.245 due for any Escrow Items fo~ which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipt; evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Bor:'ower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights tinder Section 9 and pay such an~ount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke tae waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 re'd, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Fnnds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender~ shall estimate the an~ount of Funds due on the basis of current data and reasonable estimates of expeaditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be ?te!d in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an ~nstitution whose deposits are so insured) or in any Federal Home Loan Bank Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not cbarge Borrower for holding and applying the Funds, annually analyzing the escrow account, vr verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. L,mder shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA': If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessar) to make up the shortage in accordance with RESPA, but in no more than twelve monthly payments, IY 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 twelve monthly payments. Upon payment in full or' all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held fly 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 Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the maimer provided in Section 3 Borrower shall prornptli7 ~discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as~Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the. lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures fi'om the holder of the lien an agreement 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 ore;- lhis Security Instrument, Lender may give Borrower a notice identifying the (~}~-6(WY) (99o4}.o2 0058666132,- 97114 06/10/2004 "11:26:0[ Form3051 3/99 lien. Within 10 days of the dar,i: on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Bor~:ower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lend'~er in connection with this Loan. 5. Property Insurance. l~&-rower shall keep the improvements now existing or hereafier erected on the Property insured against less by fire, hazards included within the term "extended coverage," and any other hazards including, but m)tilin'fited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintair~ed in the amounts (including deductible levels) and Ibr the periods that Lender requires. What Lenderlr~quires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrie:r 'providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower"s.choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in ~cnnection with this Loan, either: (a) a one-time charge for flood zone determination, certification an,!l :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 ~d~termination or certification. Borrower shall also be responsible for the payment of any fees imposed, by the Federal Emergency Management Agency in connection with the review of any flood zone determi, nation resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option mid Borrower's expense. Lender is under no obligation to purchase any particular type or mnount of c~x;erage Therefore, such coverage shall cover Lender, but ~night or might not protect Borrower, BorroWer's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might iirovide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of~tl-~e insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could ~bt~ve obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Bonlower secured by this Security Instrulnent. These amounts shall bear interest at the Note rate from the date iof disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requestinglpayment All insurance policies rec).u[red by 'Lender and renewals of such policies shall be subject to Lender's right to disapprove such polii:ics, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additi6nal loss payee. Lender shall have the right to hold the policies m~d renewal certificates. If Lender requiresI, .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 nmne Lender as mortgagee md/or as an additional loss payee. In the event of toss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proc~[eds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or rei?a!r of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened During such repair and restoration period, Lender shall have the right to hold such insurance proceeds ~ntil Lender has had an opportunity to inspect such Property to ensure the work has been completed to L~nder's satisfacnon, provided that such inspection shall be undertaken promptly. Lender may disbursa )roceeds for the repairs and restoration in a single payment or in a series of progress payments as the w6r}!; 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 ~nterest or earnings on such woceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid ou': of. the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the t~ums secured by this Security Instrument, whether or not then due, with (~-6(WY) (0005! 0058666132 - cji7 0 4~ ~°~ 06/10/2004 11:26:'0~ vorm3OS~ vo~ 0 002G5 the excess, if any, paid to Bqr:ower. Such insurance proceeds shall be applied in the order provided for in- Section 2. If Borrower abandons fl~e Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the r~.otice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Bgrrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds m an amount not to.-~xceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's ;ights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore 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 aftcr~ the execution of this Security Instrument and shall continue to occupy the Property as Borrower's prinqiFal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing,~ ,vhich consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or conunit waste on the Property. Whether or not Ber:ower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing ~n value due to its condition. Unless it is detern-fined pursuant to Sectioq 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Properly if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are l:a~d in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disbur:;e proceeds for therepairs and restoration in a single payment or in a series of progress payments as the wo;-k is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Propcr.y, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent m~.y make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender mai,' inspect 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 Application. Borrower shall be in default if, during the Loan application process, Borrower or any pe:sons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to. provide Lender with material information) iii connection with the Loan. Material representations include, but 'are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's princ:.pal residence. 9. lh'otection of Lende-'s Interest in the Property and Rights Under this Security Instrmnent. If (a) Borrower fails to perform, t'he covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that mi, glit significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower :~as abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate tc protect Lender's interest in the Property and rights under this Security Instrument, including protectirg and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actiorts 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 (~-6{WY) ~ooo5! P.g~ 7 o~ ~5 1/01 0058666k32 ~704~ 06/10/2004 11:26:05 Fo~m 3051 attorneys' fees to protect its in,:e~est in the Property and/or rights under this Security Instrument, including its secured position in a bm~k;ruptcy proceeding. Securing the Property includes, but is not limited to, 'entering the Property to makerepairs, change locks, replace or board up doors mid windows, drain water from pipes, eliminate building! or other code violations or dangerous conditions, m~d have utilities turned on or off. Although Lender m:~y :.t~e action under this Section 9, Lender does not have to do so and is not under m~y duty or obligation t,5 rio so. It is agreed that Lender incurs no liability for not t~ing any or all actions authorized under this S:~c~,lon 9. Any amounts disbursed l'~y~ Lender under this Section 9 shall become additional debt of Borrower secured by th~s Secumy [nstrdment. These ~ounts shall bear interest at the Note rate from the date of disbursement and shall be pay}able, with such interest, upon notice from Lender to Borrower requesting payment. ' ' If this Security Instrume~'tt ~is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fete. t':tle to the Property, the leasehold and the fee title shall uot merge unless Lender agrees to the merger in ~'w'fiting. 10. Mortgage Insurance~ If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maiutain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available l~om the mortgage insurer that previously provided such insu':ance ~d Borrower was required to m~e separately designated payments toward the prenfiums for' Mortgage Insur~ce, Borrower shall pay the prenfiums required to obtain coverage subst~tially equival6m~ to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by l'Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall conti.me to pay to Lender the amount of the separately designated payments that were due when the insurance ceverage ceased to be in effect. Lender will accept, use and retain these payments as a non-re~ndable, l{)ss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-re~ndable, notwithstandin~g the fact that the Lo~ is ultimately paid in ~11, m~d Lender shall not be required to pay Borrower m~y {n[erest or earnings on such loss reserve. Lender c~ no longer require loss reserve payments if Mortgage ?[n:;ur~ce coverage (in the ~ount and for the period that Lender requires) provided by an insurer selectcd' by Lender again becomes available, is obtained, and Lender requires separately designated payments~tcward the premmms for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of m~ing the Loan and Borrower was required to m~e separately designated payments toward the premiums for Mo~gage Insurance, Borrower shall pay the pren~ums required to maintain Mortgage Insur~ce in effect, or to provide a non-refUndable loss reserve, until Lender's requirement for Mortgage Insurm~ce ends in accord~ce with ~y written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or ~y entity that purchases the Note) for certain losses it may incur if Borrower does rto~ repay the Loan as agreed. Borrower ~s not a party to the Mortgage Insurance. Mortgage insurers evaluat.x their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms ~d conditions that are satisfactory to the mortgage insurer m~d the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using ~y source of ~nds that the mortgage insu~rer may have available (which may include ~nds obtaiued from Mortgage Insur~ce premiums). As a result of these agreemlmts, Lender, any purchaser of the Note, anotber insurer, ~y reinsurer, ~y other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) ~ounts that derive from (or nfight be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchmge for sharing or modit~ing the mortgage insurer's risk, or reducing losses If such agreement provides that ~ affiliate of L,;mder t~es a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsur~ce." Further: (a) Any such agreement~ ~11 not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any cther terms of the Loan. Such agreements will not increase the amount Borrower x~ll owe for Mortga~t Insurance, and they will not entitle Borrower to any refund. ~ 005~3~ -9~4~ ~6(wvl~ooos) ,,,oSo~,s 06/10/2004/i1:26: ~5- Form 3051 1/01 (b) Any such agreementl; will not affect the rights Borrower has - if'any - with respect to the Mortgage Insurance under tl~e Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures,, to request and obtain cancellation of the Mortgage Insurance, to have'tae Mortgage Insurance terminated automatically, aud/or to receive a refund of any Mortgage Insurance premimns that were unearued at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid' to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoratior, ar repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have tbc right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made m writing or Applicable Law requires tnterest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with he excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided f6r in Section 2. In the event of a total ',aking, destruction, or loss in valae of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial tt:l~ing, destruction, or loss in value of the Property in which the fair market value of the Property irmnediz, tely before the partial taking, destruction, or loss in value is equal to or greater than the amount of thc sums secured by this Security lustrument immediately before the partial taking, destruction, or loss in'value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Inst:-t'iment 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) the fair market value of the Property inm~ediately 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 i::rmediately before the partial takiag, destruction, or loss in value, unless Borrower and Lender otherwis~ agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrura~nt whether or not the sums are then due. If the Property is aban6oned 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 Lmder within 30 days after the date the notice is given, Lender is authorized to collect and apply the MisccF. aneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security In.;trument, whether or not then due. "Opposing Part)," means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in defenlt if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reirs;ate 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 impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided f~r in Section 2. I~-6(WY) 1ooo5~ 0059666132 -97.011 ~ ,~s, so~5 06/10/2004/~1i26:05 Form3051 1/01 12. Borrower Not Rele. a.sed; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of an'lortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor~'i~ 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 ofiBorrower or to.refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors ir Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of BorroWer or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any ri.~l!t or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mo;tgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees th~,,t Lender and any other Borrower can agree to extend, modit~,, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under ~:his Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and t:ienefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and lia'b,lity under this Security Instrument unless Lender agrees to such release in writing. The covenants and itgreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Ler,.:,der may charge Borrower fees for services performed in connection with Borrower's default, for the pr~r?ose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation tees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific lee to Borrower shall not be.c(mstrued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a faw which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan ~charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) an,, 'such loan charge shall be reduced by the mnount necessary to reduce the charge to the permitted limit; "3rd (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by :making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provide4 for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower w~ll 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 nmst be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower.when nmiled by first class mail or when actually delivered to Borrower's notice address if sent by other: means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expre~s!y requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower'~ tihange of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borro.Wer shall only report a change of address through that specified procedure. There may be only one desighated notice address under this Security Instrument at any one time. Any notice to Lender shall be giwm~by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender .h~s designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If ,'my notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrmnent. (~6(WY) Iooo51 O058666132 -,~ Initials:~.~,.,~ 06/10/2004 11:26:05 Form3051 1/01 16. Governing Law; sev,~rability; Rnles 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 this &curtly Instrument are subject to any requirements and limitations of Applicable Law. Applicable La~v.' might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence: ~hall not be construed as a prohibition against agreement by contract. In the event that any provision or~ clanse of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not aff'~Jt other provisions of this Security Instrument or the Note which can be given effect without the conflic6~g provision. As used in this Security h~strument (a) words of the masculine gender shall mean and include corresponding neuter words or Words of the feminine gender; (b) words in the singu!ar shall mean and inclnde the plural and vice vers'~ti and (c) the word "naay" gives sole discretion without any obligation to take any action. ,' 17. Borrower's Copy. Bm:rower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Prope'rty 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 limited to, those beneficial interests trans:ferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of'~'hich is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this opt_on shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this opt'ion Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less thap. 30 days from the date the notice is giveu 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 expireS'on 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 l:c have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five d xys 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 sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenst~s incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other lees incurred for the purpose of protecting Lender's iqterest 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 Instn ment, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unct ~nged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of th.~ 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) Elect-ronic Funds Transfer. Upon reinstatea~ent by Borrower, tbis Security Instrument 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; Chang~ ff Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this SecUrity Instrument) can be sold one or more times without prior notice to Borrower. A sale might result m a change in the entity (lo, own as the "Loan Servicer") that collects Periodic Payments due under '.:kc 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 Loitr: Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be giwn written notice of the change which will state the name and address of the new Loan Servicer, the addregs to which payments should be made and any other information RESPA (~-6(WY) Iooogl 0058666132 -~,70gl 06/10/2004 11:26:05 Form3051 't/01 OS'O02 '5 requires in connection with ~ notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer o::her than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain witt, the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that a'lcges that the other party has breached any provision of, or any duty owed by reason of, this Security Instr.nnent, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasor.ai~le period after the giving of such notice to take corrective action. If Applicable Law provides a ;:ime period which must elapse before certain action can be taken, that time period will be deemed to be :reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to ,Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Sect,on 20. 21. Hazardous Substawces. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic ct:hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline:, kerosene, other flanmaable or toxic petroleum products, toxic pesticides and herbicides, volatile solve'nfs, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condit:on that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not came or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to rel'ease any HaZardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, ;mything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an En¥ironmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, create'; 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 ;re generally recognized to be appropriate to normal residential uses and to maintenance of the Property including, but not limited to, hazardous substances in consmner products). Borrower shall promptly'give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any gover'amental or regulatory agency or private party involving the Property and any Hazardous Substance or 13.nvironmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, in,':lading but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous St:fi'stance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which aqlversely affects the value of the Property If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance ~tffecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordanc~ with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. (~-6(WY) Iooo5} 0058666132 - 9~ 04/'~ 06/10/2004'11:26:05 form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remolies. 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 1~I unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borro, ver, by which the default must be cured; and (d) tliat failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Secnrity Instrument an'd sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a com't action to assert the non-existence of a default or any other defer.,~e of Borrower to acceleration and sale. If the default is not cured on or before the date specified in fl~e notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies perndtted 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 mid 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~,..,:ion of the Property, if different, in accordance with Applicable Law. Lender shall give notice of Ihe sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following ~rder: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; {b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legall)' 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 Instmr'~ent, but only 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 Wyoming. (~-6{WY} 0058666132 - 97,04 ,~ ~o~ 06/10/2004 11:26:05 Fornn30§l 1101 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in an5 Rider executed by Borrower and recorded with it. Witnesses: TOM N. N~LSON -Borrower DEBORAH A LYNCH -Borrower (Seal) -Borrower (Seal) -Bmxower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~6(WY} 19oo5) 0058666132 -9794 06/10/2004 11:26:05 Form30§l 1/01 /-. STATE OF WYOMING, I/~/X(~.,OlF,, County ss: ~ , ! ,"% ,, ,---- 0a ~/l~l-o~/Ye ar by My Commission Expires: l tB.LEY SAt~I:~LL..~ NOTA~' Ft~UC Notary Public 400-15WY(4/02) Page 15 of 15 0058666132-9704 06/10/2004 11:26:05 AM LEGAL DESCRIPTION Lot 20 of the Viola SubdiYJsion Phase No. 1 Lincoln County, Wyoming as described on the official plat thereof. '