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HomeMy WebLinkAbout900584Return To: ItOMECOMINGS FINANCIAL NL:rI'WCRK. ONF. M~namtdq CROSSme. ST£ ]00 MINNEAPOLIS. MN 55423 Loan Number: 042-090260-3 Prepared By: HomeComings Financial Nenwork 14850 Quorum Drive, Suite 500 Dallas, %~X 75254 [Space Above This Line For Recording Datal MORTGAGE MIN 100062604209026030 DEFINITIONS Words used in multiple sec'~:ions of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regardh~g the usage of words used in this document are also provided in Section 16. : i . (A) "Security Instrumeut" meansth~s document, which is dated dUNE 24TH, 2004 , together with all Riders to this document. (B) "Borrower" is : MICHAEL R. SANCHEZ, './~'q UNNLARRIED MAN 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 for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security lnstrummt. MERS is organized and existing under the laws of Delaware, and has an address and telephone numb.¢r 0f P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS MFWY7?70 (il/00) / 042-090260-3 (~)®-6AlWY) Iooosho~ '"'~---/" E Page 1 of 15 Initials:~ , . VMP MORTGAGE FORMS - 18001521-,1291 Form 3051 1/01 (D) "Lender" is HOMECOMINGS FINANCIAL NETWORK INC. Lender is a CORPORATION organized and existing under the laws of DELAWARE Lender's address is 14850 QUORUM DRIVE, SUITE 500 DALLAS, TX 75254 (E) "Note" means the pronffs,~ ory note signed by Borrower and dated JUNE 2 4 TH, 2 0 0 4 The Note states that Borrower owes Lender ONE HUNDRED NINETY FIVE THOUSAND AND NO/1 0 0 Dollars (U.S. $ 19 5,0 00.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later thanJULY 1 ST, 2 0 3 4 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt e,,idenced by the Note, plus interest, any prepaymentcharges and late charges due under the Note, and all sums due under tiffs 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 [--] Condonnnium Rider ~ Second Home Rider ~ Balloon Rider ~ Planned Unit Development Ridef-~ 1-4 Fanffl'y Rider ~-~ VA Rider [-~ Biweekly Payment Rider [-~ Other(s) [specify] (I) "Applicable Law" mear, s all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (thathave the effect of law) as well as all applicable final, non-appealable judicial ophfions. (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 similar orgatfization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transf/:rs initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means thdse items that are describedin Section 3. (M) "Miscellaneous Proceeds" raeans any compensation, settlement, award of damages, or proceedspaid by any thkd 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) misrcpresentationsof, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Pay~nent" meads Ihe regularly scheduled amount duc for (i) principal and interestunder the Note, plus (ii) any amounts under Section 3 of tiffs Security Instrument. (P) "RESPA" means the Rea! E;tate 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 successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "I~ESPA" refers to all requirementsand 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. MP~WY7770 (11/00) '/ 042-090260-~:; ~-6AIWY) Iooo5).o~ Paste 2 of lS Form 3051 1/01 (Q) "Successor in Interest of Borrower" means any party that has taken title to thc Property, whether or not that party has assumed Bo!rrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrumentsecures to Lender: (i) the repaymentof the Loan, and all renewals, extensions and modifications of the No[e; and (ii) the performance of Borrower's covenants and agreements under this Security Instrumentand the N:)te. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, 'with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] Legal description a~tached hereto and made a par~ hereof ParcelID Number: 12-3119-09-3-00-343.00 2810 CROW CREEK ROAD FAIRVIEW ("Property Ad dress"): which currently has the address of · [Stre¢l] [City] , Wyoming 83119 [Zip Codcl TOGETHER WITH all thc improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered b~ this Security Instrument. All of the foregoing is ieferred to in this Security Instrumentas the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Bo~ rower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Ldnder and Lender's successors and assigns) has the right: to exercise any or all of those interests, inclucing, but not limited to, the right to foreclose and sell the Property; and to take any action required of L.~nder including, but not limited to, releasing and canceling this Security Instrument. BORROWERCOVENANT'~;that Borroweris lawfully seised of the estatehereby 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}~UMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. MFWY7770 (11/00) / 042-090260-31 (~J})d§AlWYI moos~.m Page 3 of 15 Initials: ~//~' Form 30,51 1/01 UNIFORMCOVENANTS. 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 char[res due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check er other instrumentreceived by Lender as payment under the Note or this Security Instrumentis returned to Lender unpaid, Lender may req uire that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (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, instrumentalit-~, or entity; or (d) Electronic Funds Transfer. Pay~nents are deemedreceived by Lender when received at the location designated in the Note or at such other location as may be designatedby Lender in accordancewith the notice provisions in Section 1.5. Lender may return any paym~:nt or partial payment if the payment or partial paymgnts are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring tlie Loan current, without waiver of any rights hereunderor 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 P~yment is applied as of its scheduled due date, then Lender need not pay interest on unapplied hinds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower doea not do so within a reasonableperiod of time, Lender shall either apply such funds or returnthem 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 future against Lender shall reheve Borrower from mal~ing payments due under the Note and this Security lnslrumentor performing the covenants and agreementssecured by this Security Instrument. 2. Application of Payment~ or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the l'ollowing order of priority: (a) interest due under the Note; (b) prinqipal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periqdic ?ayment 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!.dance of the Note. If Lender receives a pas~ment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent pa'yment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to tlie repayment cf the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent tlia!: an~ excess exists after the payment is alll)lied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepaymentssliall 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 postpone the due date, or change thc amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is [laid 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 Instrumentas a lien or encumbranceon the Prope~rty; (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, ff any, or any sums 9ayable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordame with the provisions of Section 10. These items are called "Escrow Items." At origination or at aay tune during the term of the Loan, Lender may require that Comnmnity Association Dues, Fees, and Ass :ssments, if any, be escrowed by Borrower, and such dues, fees and assessmentsshall be an Escrow Itc. re. 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 Ftmds for any or all Escrow Items at any ti~ne. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts MFWY7770 (11/00) / 042-090260-3 (~)~-6AIWY) ~ooos~.o~ Pa~le4of 15 Form 3051 1/01 due for any Escrow Items for uhi~h payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts ex:'idencing such payment within such time period as Lender may require. Borrower's obligation to make suzh payments and to provide receipts shall for all purposes be deemed to be a covenant and agreementcentainedin this Security Instrument, as the phrase"covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Bon ower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any tinm. by a notice given in accordance with Section 15 an: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, :oliect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified'under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lende~ shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expeneitures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be heid 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 B',mk. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrowe, for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lenderpays Borrower interest on the Funds and Applicable Law per:nits Lender to make such a charge. Unless an agreementis made in writing or Applicable Law requiresinterest to be paid on the Funds, Lender shall not be requh'ed to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an 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 accordancewith RESPA. I1' there is a shortage of Fllnds held in escrow, as defined under RESPA, Lender 5hall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary t6 make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If thereis 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 mnonnt necessary to make up the deficiency in accordance re_th RESPA, but in no nmre than 12 monthly payments. Upon payment in full of all ,roms secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held b)' Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributableto the Property whick can attain priority over tlfis Security Instrument, leasehold payments or ground rents on the Property, if arty, and Com~nunityAssociation Dues, Fees, andAssessments, if any. To the extent that these items are ~Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over tiffs Security Instrument unless Borrower: (a) agrees in writing to,the payment of the obligation securedby 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 enforcelne~ltof 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 from the holder of the lien an agrecmentsatisfactory to Lender subordinating the lien to this Security Instruf:~ei~t. If Lender determinesthat any part of the Property is subject to a lien which can attainpriority over tttislSecurity Instrument, Lender may give Borrower a notice identifying the MFWY7770 (11/00) / 042-090260-3 ~-6A{WYI iooo51.o~ Form 3051 1101 2-37 lien Within 10 days of the date o~x which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with tlfis Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereaftercrected on the Property insured against loss .by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakesand floods, for which Lender requires insurance. This insurance shall be maintain;ed in the amounts (including deductible levels) and for the periods that Lender requires. What Lender reqmres pursuant to the preceding sentences can change during the term of the Loan. The insurance carry, er 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, com~ection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tcacking 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 deiermination or certification. Borrower shall also be responsible for the payment of any fees imposed b? the Federal Emergency ManagementAgency in connection wilh the review of any flood zone dete?mination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of cov~erage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost o5 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 Boi:rower securedby tlfis Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower recIuesting payment. All insurance policies requii'edby Lender and renewals of such policies shall be subject to Lender's right to disapprove such po[;cies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/oras an additionailoss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrowerlobtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destructior~ of,' the Property, such policy shall include a standard mortgage clause and shall'name Lender as mortgagee and/or as an additional loss payee.. In the event of loss, Bo;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 insuranceproceet's, whether or not the underlying insurance was requiredby Lender, shall be applied to restorationor repai; of the Property, if the restorationor repair is economically feasible and Lender's security is not lesse~'ed. During such repair and restorationperiod, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restorationin a single payment or in a series of progress payments as the work is completed. Unless an agreementis made in writing Or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnh~gs on such pr.)ceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out o-5 the insurance proceeds and shall be thc 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 ~ums secured by this Security Instrument, whether or not then due, with (~-6A{WY) tooosl.o~ e.g. e o~ ~s Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Pxoperty, 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 t'he insurance carrier has offered to '.;,ettle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the nolicc is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borr. ower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to e?,ce :d the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable lo the coverage of the Property. Len& r may use the insurance proceeds either to repak 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~'l residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenan~'e and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the: Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property fi om deteriorating or decreasing in valne due to its 'condition. U~fless it is determinedpursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if .tamaged to avoid f~rther deterioration or damage. If insurance or condemnationproceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairirg 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 work is completed. If the insurance or condemnationproceeds are not sufficient to repair or restore the ProperB,,·Borrower is not relieved of Borrower's obligation fo~ 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 inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of t.,r prior to such an interior inspection specit~ing such reasonable cause. 8. Borrower's Loan Apl>lication. Borrower shall be in default if, during the Loan application process, Borrower or any pers.0ns or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materitJly false, misleading, or inaccurate information or statementsto Lender (or failed to provide Lender with material information) in connection with the Loan. Material representationsinclude, but are: not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principz/1 rt~:sidence. 9. Protection of Lender'.s Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform thc 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 a.~ 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 hhs ~'~bandonedthe Property, then Lender may do and pay for whatever is reasonable or appropriate to protgct Lender's interest in the Property and rights under this Security Instrument, including protecting ar~d/orassessing the value of the Property, and securing and/orrepairin, g 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 Instrmnent; (b) appearing in court; and (c) paying reasonable ,/Iq MI:rW¥"/??O (ll/O0) / 042.-0902,60-3, Inilial~l; (~t~-6AIWY) Iooosl.o~ , P~'e" 7 of ~5 Form 3051 1/01 attorneys' fees to protectits i~terest in the Property and/orrights under this Security lnstrmnent, including its secured position in a ban ffuptcy proceeding. Securing the Property includes, but is not linfited to, entering the Property to make' repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building m other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may ~ake action under this Section9, Lender does not have to do so and is not under any duty or obligation to d:o so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Sedtion 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower securedby tlfis Security Instrument These amounts shall bear interest at the Note rate from the date of disbursement and shall be pa:lab,e, with such interest, upon notice from Lender to Borrower requesting payment. If this Security lnstrumentls on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee tii:le to the Property, the leasehokl and the fee title shall not merge nnless Lender agrees to the merger hq writing. 10. Mortgage Insurance:. It Lender required Mortgage Insurance as a condition of making the Loan, Borrowershall pay the premiumsrequiredto maintain the Mortgage Insurancein effect. If, for any reason, the Mortgage Insurance cover.:tge required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated pa)qnents toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivaent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall contint~': to pay to Lender the amount of the separately designatedpaytnents that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundab'eloss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding [he fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any' interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage, insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lemler requires separately designated payments toward the. premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, tmtil Lender's requirementfor Mortgage Insurance ends in accordancewith any written agreementbetween Borrower and Lender providing for such terminationor until terminationis requiredby Applicable Law. Nothing in this Section 10 affects Borrower's obi!gallon to pay interest at the rate provided in the Note. Mortgage Insurance reimbu;ses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. : . Mortgage insurei's evalm~te their total risk on all such insurance in force from time to time, and may 'enterinto agreementswith otl;.er parties that share or modify their risk, or reducelosses.. These agreements are on terms and conditions tl~at ,;re satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agrecmeutsmay require the mortgage insurer to make payments using any source of f~nds that the mortgage im urer may have available (which may include fimds obtained from Mortgage Insurance premiums).. As a result of these agr~ em':nts, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate ef any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be cha,-act:rized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or mo0ifying 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 tlle premiums paid to the insurer, the~ arrangement is often termed "captive reinsurance.". Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgt~ ge l..nsurance, and they will not entitle Borrower to any refund. MFWY7770 (11/00) / 042-090260-2. Initi,~la: (~-6A(WY} Iooo5).ol ' Page 8 of is Form 3051 1101 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request aud obtain cancellation of ttte Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insu~cance 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 Dander. If the Property is damaged, 'such Miscellaneous Proceeds shall be applied to restorationor repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restora~ionperiod, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertakenpromptly. 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 agreementis made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such MiscellaneousProceeds. If the':e~torationor repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums securedby this Security Instrument, whether or not then due, with ihe excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided f..~r ;x~ Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to th~ sams secured by this Secority Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial takh~g, destruction, or loss in value of the Property in which the fair market value of the Property immedi~te)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 lnstrun~ent immediately before the partial taking, destruction, or loss in va)ue, unless Borrower and Lender otherwise agree in writing, the sums secured by tlfis Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fr;~c(ion: (a) the total amount of the sums secured immediately before the partial taking, destruction, o~ 10ss in v',due divided by (b) the fair market value of the Property immediately before the partial ~a~:ing, 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 ir~mediately before the partial taking, 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 Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in ~ht~ next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lend, erwithin 30 days after the date the notice is given, Lenderis authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellane;ous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in defa'flt if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could res~.:lt in forfeiture of the Property or other material impairment of Lender's interest in the Property or riglv}s under this Security Instrument. Borrower can cure such a default aud, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, ip Lzmder's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security lnstrmnent. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Properly are hereby assigned and shall be I'aid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided fi)r !n Section 2. MFWY7770 (11/00) / 042-090260-3 " ; (~-6A(WY) ooo5~.Ol Form 3051 1101 12. Borrower Not Relez;sed; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of am ~rtizationof the sums securedby this Security lnstrmnentgrantedby Lender to Borrower or any Successor m Interest of Borrower shall not operate to release ~he liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of 8orrower or to refuse to extend time for payment or otherwise modify amortizationof the sums securedby this Security Instrumentby reason of any demandmadeby the origin~ Borrower or any Successors in.Interest of Borrower. Any forbearanceby Lender in exercising any right or remedy including, without lin,Jtakion, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borro wet or in amonntsless than the amount then due, shall not be a waiver of or preclude the exercise of any right br remedy. 13. Joint and Several lJability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligat.'ons and hability 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 mortgage, 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 securedby this Security Instrument; and (c) agrees that Lq. nder and any other Borrower can agree to extend, modify, forbear or make any accommodationswith regard to the terms of this Secttrity Instrument or the Note without the co-sigmer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrumentin writing, and is approved by Lender, shall obtain all of Borrower's rights and bone.fits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this.Security Instrumentunless Lender agrees to such releasein writing. The covenants and agreements of this Security Instrmnent shall bind (except as provided in Section 20) and benefit the su(cessors and assigms of Lender. 14. Loan Charges. Lemler may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights.under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, tho absence of express authority in this Security Instrumentto charge a specific fee to Borrower shall not be consti'ued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prolffbited by tiffs Security Instrument or by Applicable Law. If the Loan is subject to a.law which sets maximum loan charges, and tlmt 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) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permittedlimit~ and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Bm:rower. Lender may choose to make this refund by reducing the principal owed under the Note or by raak~ing a direct payment to Borrower. If a refundreduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower nffght 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. An.y notice to Borrower in connectionwith this Security Instrunmntshall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borro',ve~shall only report a change of address through that specified procedure. There may be only one desig~.ated notice address under this Security Instrument at any one time. Any notice to Lender shall be givea by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender i,~as designated another address by notice to Borrower. Any notice in connection with this Security Inst':umentshall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrumentis also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. MFWY7770 (11/00) / 042-090260-3 ' I~-6AIWY) 1ooo5),Ol " Page ~0 o~ lS Form 3051 1/01 16. Governing Law; St.~ve~ability; Rules of Construction. Tiffs Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it 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 tlfis Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security lnstrumentor the Note which can be given effect without the conflic ling provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b)words in the singular shall mean and include the plural and vice ver:;a; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Bc.rrowershall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower, As used in this Section 18, "Interest in the Property" mear,s a(ty legal or beneficial interest'in the Property, including, but not limited to, those beneficial interests trensferredin a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Pi opcrty 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 may require hnmediate payment in full of all sums secured by this Security instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 3'0 days from the date ihe notice is given in accordancewith Section 15 within which Borrower must Fay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the exph:ation 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 II.einstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right ~to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a)five day's before sale of the Property pursuant to any power of sale containedin 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)ipays Lender all stuns which then would be due under this Security instrmnentand the Note as if no accelerationhad occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuatiou fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights tinder this Security Instrument; and (d) takes such action as Lender re'ay ~easonably require to assure that Lender's interest in the Property and rights under this Security Instr'~ment, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lendermay 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, trc.'asurer'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 reinstat~mentby Borrower, this Security lnstrumentand obligations secured hereby shall rem'fin fully effective as if no accelerationhad occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Chang~:'of Loan Servicer; Notice of Grievance. The Note or a partialh~terest in the Note (together with this Security Instrument)can be sold one or more times without prior notice to Borrower. A sale might resul' in' a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under ~:he Note and tiffs 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 unrelatedto a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of il~e new Loan Servicer, the address tO which payments should be made and any other information RESPA MFWY7770 (11/00) / 042-090260-3 Initiala:t (~}~-6A(WY) 1ooo5}.ol Page 1~ of ~5 Form 3051 1/01 requires in connection with a ~mtice of transfer of servich~g. If the Note is sold and thereafterthe Loan is serviced by a Loan Servicer o~her than the purchaser of the Note, the mortgageloan servicing obligations to Borrower will remainwith .the Loan Servicer or be transferredto a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor D'.nder 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 Instrumentor that 'all,~ges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with t'he requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a ti:~ne period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substmices. As used in this Section 21: (a) "Hazardous Substances" are those substances de£med as toxic or hazardous 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 formaldehyde, and radioactive materials; (b) "Environmental Law" means fe.derallaws and laws of the jurisdiction where the Propertyis located that relate to health, safety or environ'mentalprotection; (c) "Environmental Cleanup" includes any response action, remedial action, or reinoval action, as detined in EnvironmentalLaw; and (d) an "Environmental Condition" means a conditiqn that can cause, contrilmte to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hfizardous Substances, or threatento release ~.ny HazardousS'ubstances, on or in the Property. Borrower shall not do, nor allow anyone else to do, .anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an En.viron'mentalCondition, or (c) which, due to the presence, use, or release of a HazardousSubstance, c?eates'a condition that adversely affects the vahie of the Property. The preceding two sentences shall not applii to the presence, use, or storage on the Property of small quantities of Hazardous Substances that ar'.~ generally recognized to be appropriate to normal residential uses and to maintenance of the Property {_inclUding, but not limited to, hazardous substances in consumer products). Borrower shah promptly give Lender written notice of (a) any investigation, claim~ demand, lawsuit or other action by any govermnental or regulatory agency or private party involVing the Property and any Hazardous Substance or Er.'viromnental Law of which Borrower has actual knowledge, (b) any EnvironmentalCondition, incl',~ding but not limited to, any spillh~g, leaking, discharge, release or threat of release of any HazardousSnbstance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which aJversely ',fft~cts the value of the Property. If Borrower learns, or is notified by any governmental or regul:ttor~) authority, or any private party, that any removal or other remediation of any HazardousSubstance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. MFWY7770 (Il/00) / 042-090260-~ ~}~-6A(WY) Iooos~.o~ P~* 12 of 15 Form 3051 1/01 NON-UNiFORMCOVEN/JqTS. Borrower and Lender further covenant and agree as fo[lows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in tiffs Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days t'rom the date the notice is given to Borrow:~r,i by which the default must be em'ed; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by tiffs Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate alter accele:rat~on and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on ur before the date specified in the notice, Lender,at its option may require immediate pay~nent in full or' all stuns secured by this Security Instrument without further denmnd and may invoke the power of sale and any other remedie~ permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing,,, the remedies provided in tbis Section 22, including, but not limited to, reasonable attorneys' fees and c6sts of title evidence. If Lender invokes the pl)wer of sale, Lender slmll give notice of intent to foreclose to Borrower 'and to the person in possession of the Property, if ditl'erent, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, a!~d ~tbe Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee ina2., purchase the Property at any s:de. Tbe proceeds of the sale shall be applied in tbe following or, dei': (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (L) t,) all sums secured by tbis Security Instrument; and (c) any excess to the person or persons legally gntitled to it. 23. Release. Uponpaymimt of all sums securedby this Security Instrument, Lender sh',fll release this Sectrrity Instrument. Borrower sl:.all pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrumenl,but only ff the fee is paid to a third party for services rendered and the charging of the fee is permitte':l uqder Applicable Law. 24. Waivers. Borrower reieases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. MFWY7770 (11/00) 042-090260-3 (~i~-6AIWY) Iooos}.o~ Form 3051 1/01 BY SIGNING BELOW. Borrower accepts and agrees to thc terms and covenants contained in this Security Instrument and in a~y l~.ider executed by Borrower and recorded with it. Witnesses: . (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower MFWY7770 (11/00) / 042-090260-3 (~I~6AlWY} ¢ooos}.m Page 14of 15 Form 3051 1101 STATE OF WYOMING, The foregoing instrumen' wis acknowledged before me this by MICHAEL R. SANCHEZ, A~ lfNMARRIED MAN 28TH JUNE My Commis.__.sion Expires: ~ ~ - NOTA,~Y PU~JC I Notary Public County ss: LINCOLN 2004 MFWY7770 (11/00) / 042-090260-3 (~'6At WY} 1ooo5}.ol Page 15 of 15 Form 3051 1/01 LEGAL DESCRIPTION A portion of the NEtASW~,~ of Section 9, T31N Rll9W of the 6th P.M., Lincoln County, Wyoming located west of Crow Creek County Road 12-141 and being more particularly described as follows: Beginning at a point on a 971.186 foot radius curve in the center line of the Crow Creek Lincoln County Road 12-141, sai'd poi~tt being N 13051'27'' W, 1585.31 feet from the South Quarter corner of said Section 9, ~nd also southerly along said curve an arc distance of 288.27 feet through a central angle of 17000'24'' from the north end of said curve, (PC station 38 +69.03); thence running S 89°45, W; along the north line and the easterly and westerly prolongation of the property described in Quitclai~n Deed recorded in Book 234PR on page 98 of the records of the Lincc, ln County Clerk, 336.81 feet; thence North 380.90 feet; thence N 89o58'08.' E, 37J .97 feet to said center line of said county road; thence S 11°41'15" W, along laSt said center line 94.83 feet to said north end of said 971.186 foot radius curve; thence running 'southerly along last said curve through a central angle of 17o00'24'. an arc distance of 288.27 feet ~o the point, of beginning.