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HomeMy WebLinkAbout901360Return To: Finance America LLC P.O. BOX 16637 Irvine, Ca. 92623-~)7I O 6 0 REOI-]IVED LINOOl..r,i 60~JN}-Y CLERK Prepared By: Karen Cornell 16802 Aston Street Irvine CA 92606 [Space Above This Line For Recto'ding Dal;~] MORTGAGE MIN 100052300404335753 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined i'n Sections 3, II, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) '!Security lnstrmnent" meansthis document, which is dated JULY 22, 2004 together with all Riders to this document. (B) "Borrower" is SI-LAWN L. YOUNGLOVE AND ANDREA G. YOUNGLOVE, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie MaelFreddie Mac UNIFORM INSTRUMENT WITH MERS (~®-6A(WY) Iooo51.ol Page 1 of 15 Initials: VMP MORTGAGE FORMS - 8o0)52t-7291 Form 3051 1/O1 MABN (D) "Lender" is Finance An~erica, LLC Lender is a Limited Liability Company organized and existing nnder the laws of Delaware Lender's address is 16802 Aston Street, Irvine, CA 92606 (E) "Note" ~neans the promissory note signed by Borrower and dated JULY 22, 2004 The Note states that Borrower owes Lender ONE tlUNDRED FIFTY-FOUR THOUSAND FOUR HUNDRED AND NO/100 Dollars (U.S. $ 154,400.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments'and to pay the 'debt in full not later than AUGUST 01, 203/4 CF) "Property" means the propert-y that is described below trader the heading "Transfer of Rights in the Property." (G) "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 lnstrutnent, plus interest. (It) "Riders" means all Riders to tiffs Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [~ Adjustable Rate Rider [-~ Condominium Rider [-~ Second Home Rider ~-~ Balloon Rider ~ Planned Unit Development Ride~ 1-4 Family Rider ~-~ VA Rider ~ Biweekly Payment Rider ~5~ Other(s) [specit~] Legal Dese. XX Prepayment Rider (1) "Applicable Law" ~neans all controlling applicable federal, State and local statutes, regulations, ordinances and administrative rules and orders (that have the cfi'cd of law) as well as all applicable final, non-appealable judicial opinions. (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 organization. (K) "Electronic Funds Transt'er" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated throt, gh an electronic terminal, tdephonic inStrmnent, 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, antomatedteller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfem (L) "Escrow Items" means(hose items that are describedin Section 3. (M) "Miscdlaneous Proceeds" means any compensation, setllement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or Other taking of all or any part of tl'~e Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentationsof, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or defanlt on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real EstateSettlementProceduresAct (112 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 ti]ne to time, or any additional or successor legislation or regtflation that governs the same subject matter. As used in this Security Instrument,"RESPA" refers to all requirementsand restrictions that are iml)osed in regard to a "federally related mortgageloan" even if the Loan does not qualify as a "federally related ]nor(gage loan" under RESPA. Initials: Z~ (~-6A(WY) (ooo5).o1 Pagc2d 15 %Q.{~ 10 MADK Form 3051 1/01 (Q) "Successor in htterest of Borrower" means any party that has taken title to the Property, whelher or not that party has assmned Borrower's obligations under the Note and/or this Security Instrument TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrume'ntsecures to Lender: (i) the repayment of tim Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrumentand the Note. For this purpose, Borrower does hereby mortgage, grant' and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and ~'o the successors and assigns of MERS, with power of sale, the following described property located in the COUNTY of LINCOLN [Type of Recording Jmisdiction] [Name of Recording Jurisdiction] LEGAL DESCRIPTION ATTACHED HERETO AND blADE A PART HEREOF ParcelIDNumber: 36192330016900 32 GALLUP CIRCLE ETNA ("PropertyAddress"): 32GALLUP CIRCLE, ETNA, which currently has the address of IStrceq [City] , Wyoming 83118 [Zip Code] 83118 TOGETHER WITH all the improvelnents 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 shah also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrowerin this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and'assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWERCOVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencmnbered, except for encumbrancesof record. Borr6wer warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENTcombines uniform covenants for national use and non-mtiform covenants with limited variations by jurisdiction to constitute a uniform security instrmnent covering real property. Iv[AE× Form 3051 1/O1 UNIFORMCOVENANTS. Borrower and Lender covenan, and agree as follows: 1. Payment of Principal, Interest, Escrow Items, lh'elmyment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepaymcntcharges and late charges due under the Note. Bott'ewer shall alsopay funds for Escrow llems pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrumentreceivecl by Lender as payxnent under the Note or this Security lnstrumentis returned lo 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 following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Ft,nds Transfer. Payments are deemedreceived by Lender when received t~t the location designated in the Note or at such other location as may be designatedby Lender in accordancewith the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial pay~nent insufficient to bring the Loan current, without Waiver of any rights hereunderor prejudice to its rights to refuse such payment Or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplicd funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonablcperiod 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 future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrumentor performing the covenants and agreementssecnred by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts 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 Otis Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which inch, des a sufficient amount to pay any late Charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Paymentis outstanding, Lendermay 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, such excess may be applied to any late charges due. Vo!untary prepaymentsshall 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 duc under the Note shall not extend or postpone the due date, or change tile 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 paid in full, a sum (the "Funds") to'provide for payment of amounts due for: (a)taxes and assessmentsand other items which can attain priority over this Security lnstrumentas a lien or encumbranceon the Property; (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 accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any 6me during the term of thc koau, Lender may require that Cominunity Asiociation Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessmentsshall be an Escrow Item. Borrower shall promptly finnish to Lender ail 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 mnounts klAGU : 012 due for any Escrow Items for wtfich payment of Punds has been wmvcd by Lender and, if Lender requires, shall furnish to Lender receipts evidencing su& payment wilhin such time period as Lender may require. Borrower's obfigation to make such payments and to provide rec<ipts shall for M1 purposesbe deemed to be a covenant and agreementconta'Medin 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 uuder Seclion 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given m accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and m such amounts, that are then requked under this Section 3. Lendermay, at any t~e, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the t~e specified under RESPA, and (b) not to exceed the m~mum amount a lcndzr can require under RESPA Lender shall est~ate the amount of Funds due on the basis of current dala and reasonable estimates of expenditures of fiiture Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrmnentali~, or enti~ (h~cluding Lender, if Lender is an institution whose deposits are so insured)or in any Federal HomeLoan Bank. Lender shall apply the Funds tt~ pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower fm holding and applying the Funds, annually anMyzing the escrow account, or veri~ing the Escrow Items, tmlcss Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreementis made in writing or Applicable Law requires ~terest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as requked 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 ~ accordancewith RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall noti~ Borrower as required by RESPA, and Borrower shall pay to Lender the mnount necessary to make up the shortagein accordaucewith 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 requiredby RESPA, and Borrower shall pay to Lender thc amount necessary to make up the deficiency in accordanc~ with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by tMs Security Instrument, Lender shall promptly refund to Borrower any Fuuds held by Lender. 4. Charges; Liens. Borrower shall pay all t~es, assessments, charges, fines, and impositions attributable to the ProperW which can attain priority over this Security Instrmnent, leasehold payments or ~ound renls on the Property, if any, and CommunityAssociation Dues, Fees, and Assessments, if any. To the e~ent that these items are Escrow Items, Borrower shall pay them in the ~nanner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation securcdby 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 aga~st enforcementof the lien ~, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings arc pending, but only until such proceed~gs are conchided; or (c) secures from the holder of the lien an agreemcntsatisfactory to Lender subordinating the lien to this Security Instrument. If Lender determinesthat any part of the Property is subject ~o a lien which can attain, priority over this Security Instrument, Lender may give Borrower a notice identifying the Pago 5 ol 15 ~ Form 3061 1/01 lien. Within 1.0 days of the date on which that notice ~s 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-dine charge for a real estate tax verificatiou and/or reporting service used by LBnder in co~Bction with this Loan. 5. Property Insurance. Borrower shM1 keep the improvements now e~sfing or hereafter Bi-octed on the Property insured against loss by fir:, hazards included within lbo term 'e~endcd coverago," and any oth~r hazards including, b'ut not linfitBd [o, Barthquak~saud floods, for which Lender requires insuranco. This insurance shall be maintained in the amounts (including deductible levels) and for thc periods {hat Lender requires. What Lender reqmres pursuant to thc precetling sentences can' change during the term of the Loan. The insm'ance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably, Lender may require Borrower lo pay, in connection with this Loan, either: (a) a one-t~e charge for flood zone determination, certification ~d tracking serhces; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency ManagcmentAgcncy h~ connection with the rehew of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's e~ense. Lender is under no obligation to purchase any particular Wpe or amount of coverage. Therefore, such coverage sliall 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 provide greater or lesser coverage than was previously in effect. Borrower a&nowledges that the cost of the insurance coverage so obtained might significantly exceed the cost o[ insurance that Borrower could have obtained. Any amounts disbursed by Lender nnder this Sectiun 5 shall become additional debt of Borrower securedby this 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 requesting payment. All insurance policies requked by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall ~clude a standard mortgage clause, and shall name Lender as mortgagee and/oras an additionM loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender req'uires~ Borrower shall promptly give to Lender all receipts of paid prenfiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property~ such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. in the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not madeprompfly by Borrower. Unless Lender and Borrower otherwise agree in writing, any ~surance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoratioq or repair of the Property, if the restorationor repair is economically feasible aud Lender's security is not lessened. During such repair and rcstorationperiod, 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 restoration in a single payment or in a series of progress payments as the wm'k is completed. Unless an agrcementis made in writing or Applicable Law requkes interest to be paid on such insuranceproceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restorationor repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with ~-6A(WY) looo~l,o~ Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available h~surance claim and related matters. If Borrower does not respond within 30 days to a notice front Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle thc claim. The 30-day period will begin ~hen the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Secmity Instrmnent, 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 Propc~ ty, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore tt, e Property or to pay amounts unpaid under the Note or this Security Instrunmnt, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence wittfin 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year al:ret 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, Maintenance aud Protection of the Property; lnspectious. 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 from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnationproceeds are paid 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 disburse proceedsfor the repairs and restoration in 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 Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonablecanse, Lender may inspect the interior of the imprt~vements 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 persons or entities acting at the direction of Borrower or with Borrower's knowled'ge or consent gave materially false, misleading, or inaccurateinformation 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 occ'upancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreementscontained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/orrights under this Security Instrument(such as a proceeding in bankruptcy, probate, for condemnationor forfeiture,' for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrmnent, including protecting and/orassessing the value of the Property, and securing and/orrepairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrmnent; (b) appearing in court; and (c) paying reasonable HAHC Form 3051 1/01 attorneys' fees to protect its interest in the Property and/orrights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utililies turned on or off. Although Lendermay take action under this Scctian 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability fol' not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrmnent. These amounts shall bern' interest at the Note rate from the date of disburse~nent and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage I nsm'ance as a condition of making the Loan, Borrower shall pay the premiumsrequired to xnaintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage reqniredby Lender ceases to be available from the mortgage insurer that prevlously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to.Borr0wer of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is available, Borrower shall continue to pay to Lender the amount of the separately designatedpayments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundableloss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid m 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 ~tvailable, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refund~dilc loss reserve, until Lender's requirementfor Mortgage Insurance ends in accordancewith any written agreementbetwecn Borrower and Lender providing for such terminationor until termination is reqnircdby Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in thc Note. Mortgage Insurance reimburses Lender (or any entity Iha! purchases thc Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Boxrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreementswith other parties that share or modiB/their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insorer and the other party (or parties) to these agreements. These agreementsmay require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such-agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of thc premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect tile amounls that Borrower has agreed tn pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. Initials:,~ (~}~-6A(WY) [0005).01 PageS o, 15 CL~i~I Form 3051 1/01 (b) Any such agree~nents 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 the Mortgage Insurance, to have the Mortgage Insurauce termiuated automatically, aud/or tn receive a retired of any Mortgage Insurance premiums that were unearned at the ti~ne 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 restoratim~o~ repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. Dm'lng such repair and restorationperiod, Lender shall have thc right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has beert completed to Lender's satisfaction, provided that such inspection shall be mnlertakenpromptly. 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 Miscellaneous Proceeds. If the restorationor repair is not ecouomically 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 the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums securedby this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security h~strumentimnrediatcly before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiphed by the following fraction: (a) the total amount of thc sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of thc Property immediately before the partial taking, destruction, or loss in value. Any balance shah 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, deslruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to thc stuns secured by this Security lnstrnment whether or not the stuns are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower [hat 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 Lender within 30 days after thc date the notice is given, Lender is attthorized 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 Miscellaneous Proceeds or the party agaiust whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Properly or other material impairment of Lcmlcr's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if accelerationhas occurred, reinstate as provided in Section 19, by causing the'action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrmnent. The proceeds of any award or claim for damages that are attributableto the impairmentof 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 for in Section 2. Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for pa)anent or modification of amortizationof the sums secured by this Security lnstrumentgrantcd by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shaft not be required 1o commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortizationof the stuns securedby this Security lnstrumentby reason of any demandmadeby the original Borrower or any Successors in Interest of Borrower. Any forbearanceby Lender in exercising any right or remedy including, without linfitation, Lender's acceptance cfi' payments fi'om third persons, entities or Successors in Interest of Borrower or in amountsless than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several 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 Instrumentonly to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligaled to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodationswith regard to the terms of this Security Instrunmnt or thc Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assmnes Borrower's obligations under this Security instrumentin writing, and is approved bY Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security lnstrmnent shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security instrument, h~cluding, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security lnstrumentto charge a specific fee to Borrower shall not be construedas a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a laW which sets maximum loan charges, and that law is finally interpretcdso that the interest or other loan charges collected or to be colleded in connection with the Loan exceed the permittedlimits, then: (a) any such loan charge ~hall be reduced by the amount necessary to reduce the charge to the permittedlimit; and (b) any stuns already collected fi'om 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 provided for under the Note). Borrower's acceptance of any ~uch refund made by direct payment to Borrower will constitute a waiver of anY right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with dfis Security lnstrmnent must be in writing. Any notice to Borrower in connectionwith this Security Instrumentshall be decmedlo have been given to Borrower when mailed by first class mail or when' actually delivered to Borrower's notice address ff 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 nt~tice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If' Lender specifics a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one dine. Any notice to Lender shall be given by delivering it or by mailiug it by first class mail to Lender's address stated herein nnless Lender has desigmated 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. 11' any notice required by this Security lnstrumentis also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. Inilials: , ,~ (~}--6A(WY) 1ooo5),o 1 Pag. ] 0 of 15 -- biARI Form 3051 1/01 (.. (., t.i 01 $ 16. Governing Law; Severability; Rules of Constructim~. This Security Instrmnent shall be governed by federal law and the law of the jurisdiction in which thc 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 agTeementby contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security hzsti-umentor the Note which can be given effect without the conflicting provision. As used in tlfis Security Instrmnent: (a) words of tile masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion withont any obligation to take any action. 17. Borrower's Copy. Borrowershall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferredin a bond for deed, conlract 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 Property or any Interestin the Property is sold tlr transferred(or if Borrower is not a naturalperson and a beneficial interest in Borrower is sc)Id 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 option shall not be exercised by Lender if such exercise is prohibited by Apphc'able Law. It' Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the nc)rice is given in accordanccwith Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower t~ails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security lnstrmnent without further notice or demand on Borrower. 19. Borrower's Right to Reinstate Alter Acceleratim~. If Borrower meets certain conditions, Borrower shali have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property tnlrsuan[ to any power of sale contained in this Security instrument; (b) such other period as Apphcable Law might specify roi' 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 afl sums which then would be due under this Security lnstrumentand 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 valuatitm lees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security lnstrmnent; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrmnent, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatementsums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's .check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic' Funds Transfer. Upon reinstatementby Borrower, this Security tustrumentand obligations secured hereby shall remain fully effective as if no accelerationhad occurred. 1 towever, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument)can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that co}lects Periodic Payments due under the Note and this Security Instrument and per[orms other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also migh! be one or more changes of the Loan Servicer unrelatedto a sale of the Note. It' there is a change of the Loan Servicer, Borrower will be given written notice of the change wllich will state the name and address ol: the new Loan Servicer, the. address to which payments should Itc made and any other infor~nation RESPA I nitials:._~_ ~}~-6A(WY, looos).ol Pa9¢11 of 15 C~''5 Form 305.1 1/0! lv[ASX requires in connection With a notice of transfer of servicing. If the Note is sold and thereafterthe Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, joiu, 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 ihis Security Instrumentor that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requkementsof Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) 'ttazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by EnvironmentalLaw and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic peslicides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federallaws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental Protection; (c)"Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in EnviromnentalLaw; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threatento release any HazardousSubstances, 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 EnvironmentalCondition, or (c) which, due to the presence, use, or release of a HazardousSubstance, creates a condition that adversely, affects the value of the Property. Thc preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardot,s substances in consumer products). Borrower shall promptly give Lender Written notice of (a) any investigation, clai~n, demand, lawsuit or other action by any govermnental or regulatory agency or private imrty involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any EnvironmentalCondition, including but not limited to, any spilling, leaking, discharge, releaseor threatof release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a HazardousSUbstance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmentalor regulatory authority, or any private par[y, 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 Environmental Law. Nodfing herein shall create any obligation on Lender for an Environmental Cleanup. (~6A(WY) {ooos).o~ P.9~ 12 o~ '~ Form 3051 1/01 NON-UNIFORMCOVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice Io Borrower prior to acceleration fallowing Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 tmless Applicable Law provides otherwise). The notice shall specil~y: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days ti-om the date the notice is given to Borrower, by which the default must be cured; and (d) that lhilure to cure the default on or before the date specified in the notice may resnlt in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall fl~rtber infl~rm Borrower (~l' the right to reinstate after acceleration and the rigbt to bring a court action to assert the uon-existence of a dethult or any other defense of Borrower to acceleration and sale. If the dethult is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in tull of all sums secured by this Security lnstrmnent without I'urther demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, iucluding, but not limited to, reasonable attorneys' lees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to tbe person in possession of the Property, if ditl'erent, in accordance with Applicable Law. Lender sball give notice of the sale to Borrower in the maooer provided in Section 15. Lender shall publish tbe notice of sale, and tbe Property shall be sohl in the manner prescribed by Applicable Law. Lender or its designee may purchase tbe Property al any sale. The proceeds of the sale shall be applied iu the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' lees; (b) to all sums secured by this Security Instrnment; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security I'nstrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party/'or services renderedand the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights nnder and by virtue of the 'homestead exemption laws of Wyoming. (~OA(WY) (ooosl.Ol Inidals:~ Page l3 o, 15 ~ Form 3051 1,01 BY SIGNING. BELOW, Borrower accepts and agrees to the terms and covenams contained in this Security Instrument and in any Rider executed by Borrower an d recorded with it. Witnesses: (Seal) -Bon'owcf ANDREA G. Y(5IJNGL~VE 0 -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrowcr (Seal) (Seal) -Borrower -Borrower {~§A(WY) Iooosl.o~ NAYF Page 14 of 15 Form 3051 1/01 by / / / STATE OF WYOMING, / / The foregoing instrument was acknCedged before me this / / / / / / / / / My Commission Expires/ / / / / / Nota~3~ Public ...022 County ss: (~-6A(WY) (ooo5).ol NBAA Page 15 of 1 6 Form 3051 1/01 ST^T~ o~ COUNTY OF ) )ss. ) ~'.023 On July 22, 2004, before me, the undersigned, personally appeared Shawn L. Younglove and Andrea G. Younglove, known or identified to me to be the person(s) whose name(s) are subscribed to the within in/~trument, and acknowledged to me that they executed the same.~ ~OTARY FdR T}i:~STAS~ b~ IDAHO Commission Exp~: 7--/-- ~ ~-~5 ......... .5~A-O - '..0¢ ~ '....~o~oo...2 ~ ~ ~x". .." ~ 7/ll/it,~ ur 'qllllll lllB -',-024 Exhibit "A" Lot 183 of Nordic Ranches Di'vision No. 13, Lincoln County, Wyoming as described on the official plat thereof RECORDING REQUESTED BY, AND WHEN RECORDED MAiL TO: Finance America, LLC P.O. Box 16637 Irvine, Ca 92623-6637 (Space above this line for Rccorder's use) PREPAYMENT RIDER MIN 100052300404335753 DATE: 07/22/04 FOR VALUE RECEIVED,the undersigned ("Borrower") agree(s) that the following provisio, s shall be incorporatedinto and shall be deemedto amend and supplement the Mortgage, Deed of Trust or Security Deed of even date herewith (the "Security Instrument") executed by Borrower, as trnstor, in favor of Finance America, LLC ("Lender"), as beneficiary, and also into that certain promissory note (the "Note") of even date herewith executed by Borrower in favor of Lender. To the extent that tl~e provisions of this Prepay~nentRider are inconsmtent with the provisions of the Security Instrument and/or the Note, the provisions of this Prepayment Rider shall prevail over and shall supersede any such inconsistent provisions of thc Security lnstrumem and/or the Note. Section 5 of the Note is amended to read in its enttrety as follows: }vi ULTISTATE FIRST MORTGAGE 1196 ! 81 ATUX Page 1 ol~ 2 VMP MORTGAGE FORMS - (800)521-7291 (09/1 0/96} · v' 026 " 5 . BORROWER'S RIGHT TO PREPAY; PREPAYMENT CHARGE I have the right to make payments of principal at any tin] e before they are due, together with accrued interest. When I make a prepayment, I will tell the Note Holder in writing that I am doing so. If I make a partial prepay~nent, there will be no changes in the due da[e or in the amount of my tnonthly payment unless the Note Holder agreesin writing [o those changes. If within TWO ( 2 ) years from the date of execution of the Security Instrument(as defined above) I make a full prepaymcntor partial prepayment(s), I will at the same time pay to the Note Holder a prepayment charge. An amount not exceeding twenty percent (20%) of the original principal amount may be prepaid in any twelve-month period without penalty. A prepaymentcharge will be imposed on any amountprepaidin any twelve-month period in excess of twenty percent (20%) of the original principal amount of the loan which charge shall not exceed an amount equal to the payment of six months' advance imerest on the amountprepaid in excess of twenty percent (20%) of the original principal amount. IN WITNESS WHEREOF, the Borrower has executed this Prepayment Rider on the day of ,.~4.-~,._ L Bon'owe r ANDR~ Borrower S HA~',I . Y ' G .~" yo~~ Borrower Borrower MULTISTATE FIRST MORTGAGE 1196181 (o2oa~ Pa~e 2 ot 2 (09/10/96, ATUY LOAN ID: 004.0433575 RETURN RECORDED DOC TO: Finance ~nerica, LLC P.O. Box 16637 Irvine, Ca 92623~6637 ADJUSTABLE RATE (LIBOR Index - Rate Caps) MIN 100052300404335753 RIDER TItISADJUSTABLEIL~TERIDERis madethis 22nd day of JULY , 2004 , and is incorporatedinto and shall be deemedto amend and supplement the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to Finance A~nerica, LLC (the "Lender") of the same date and covering the property described in the Security Instrmnentand located at: 32 GALLUP CIRCLE, ETNA, WY 83118 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE ,INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreementsmade in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 7.390 changes in the interest rate and the monthly payments, as follows: %. The Note provides for 4. INTEREST RATE AND MONTHLY 1 AYMENT CttANGES (A) Change Dates Theinterestratcl will pay may change on the first day of AUGUST 01, 2006 , and on that day every sixth month thereafter. Each date on which my interest iate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER (LIBOR Index) - Single Family - Freddie Mac UNIFORM INSTRUMENT (~815R (0008) Form 31~2 1/01_ . , ~./alv~; ;;fR-~-GAGE FORMSIn-it(i;IoS:0~(~O~ II!1111 IIIIII IIlllll Itl III IIII MGMW 028 (B) The Index Beginning with the first Change Date, my interest rate will be ba ged on an Index. The "Index" is the average of interbank offered rates for six-month U.S. dollar-dcnonfinateddeposits in the London market ("LIBOR"), as published in The Wall Street Journal. The mosl recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding SIX AND N0/100 percentage points ( 6. 000 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentagepoint (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determinethe amount of the monthly payment that would be sufficient to repay the unp~dd principal that I am expected to owe at the Change Date in full on the maturity (late at ~ny new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 10. 390 % or less than 7.390 %. Thereafter, my interest rate will never be increased or decreasedon any single Change Date by more than one percentagepoint (1%) from the rate of interest I have been paying for the preceding six months. My interest rate will never be greater than 13.390 %. My interest rate will never be lower than the initial interest rate stated in Paragraph A of this Rider. , (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date aftci the Change Date until the amount of. ~ny monthly payment changes again. (0008) Page 2 of 4 Initia~~ Form 3192 1/01 MOMX (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my lnterestrate and the amount of my monthly payment before the effective date of any change. The notice will include information requiredby law to be given to me and also the title and telephoneimmber of a personwho will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of lille by Borrower at a fi~ture date to a purchaser. If all or any part of the Property or any Interestin the Property is sold or transferred(or il' a 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 frill of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if stlch exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breachof any covenant or agreement~n this Security Instrumentis acceptableto Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferceto sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security lnstrmnent. Borrower will conunue to be obhgated under the Note and this Security Instrument unless Lender releases Borrower in writing. [f Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section t5 within which Bor}ower nmst pay all sums secured by this Security Instrument. [f Borrower fails to pay these sums prior to the expiration of this period, Lendermay invoke any remedicspermittcdby tiffs Security Instrument without further notice or demand on Borrower. ~815R (0008) Page 3 of 4 Initials: Form 3192 1/01 HGHY BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. SHAWN L. N -Borrower ANDREA -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -BolTowc r (~815R (0008) Page 4 o! 4 Form 3192 1/01 MGMZ