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HomeMy WebLinkAbout901609:~08,35.~02) RECEIVED LINCOLN COUHTY CLERK WHEN RECORDED, MAIL TO: Home Security Mortgage Corporation 1101 International Pkwy Fredericksburg, VIRGINIA 22406 This Instrument was prepared by: Home Security Mortgage Corporation 1101 International Pkwy Fredericksburg, VIRGINIA 22406 800-818-8833 Loan Number: 59342142 Order Number: 30835 DEFINITIONS 901609 (Space Above This Line For Recording Data) MORTGAGE MIN: 10031210004060032'1 Words used in nmltiple sections of this documenl are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also providcd in Section 16. (A) "Security Instrument" means this docmnent, which is dated Augusl' 2, 2004, together with all Riders to this document. (B) "Borrower" is Robin Rothermel and Linda Rothermel, Husband and \Vile . Borrower xs the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation 1hat is acting solely as a nominee tbr Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS ~s 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. (D) "Lender" is Home Security Mortgage Corporation, organized and existing under the laws of The State of Virgnia. Lender's address is 1101 International Pkwy, Fredericksburg, VIRGINIA 21406. (E) "Note" means the promissory note signed by Borrower and dated August 2, 2004. The Note states that Borrower owes Lender TWO HUNDRED SEVENTY- THOUSAND and no/100 Dollars (U.S. $270,000.00) phis interest. Borrower has promised to pay this debl in regular Periodic Payments and to pay the debt in full not later than September 1,2034. (F) "Property" means the property that is described below under the headiog "Transfer o£Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment cha,'ges and late charges due under tl~e Note, and al} sums due under this Security Instrument~ plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower (check box as applicable): [] Adjustable Rate Rider [] Condominium Rider [] Second' Home Rider [] Balloon Rider [] Planned Unit Development Rider [] VA Rider [] l-4Family Rider [] Biweekly Payment Rider [] Other (Specify) - (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect 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 o,' similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a t|'ansaction originated by check, draft', or similar paper instrument,' which is initiated through an electronic temfinal, 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 translbrs, at,tomated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage m, or destruction or; tim Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) nfisrepresentations of, or omissions as to, the value and/or condition of the Property. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 1 ol 9 IDS, lnc, - (800) 554~1872 Form 3051 1101 Borrower(s) Initials _~~'~ ¢ (N) "Mortgage Insurance" means insurance protecting Lender against tire nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principa and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refersto all reqmrements and restrictions that are imposed in regard ~o a "federally related mortgage loan" even if the Loan does not qualify as a "federally related lnortgage loan" under RESPA. (Q) "Successor in Interest of Borrower". means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modificatious of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this propose, lBorrower does hereby mortgage, grant and convey to MERS (solely as nominee lb[ 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: See Attached Exhibit 'A' Parcel ID Number: 35191310042500 which currently has the address of: 695 Hen ry Mountain Road Etna, WYOMING 83118 ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on Ibc property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. Alt replacements and additions shall also be covered by this Security lustrument 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 Borrower in this Security Instrument, but, if necessaW to contply with law or custom, MERS (as nominee Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but uot liinited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not lmfited to, releasing and canceling this Security Instrument BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants nod will defend generally the title to the Property against all claims and demands, subject to airy encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-u,fiform coveuants with limited variations by jurisdiction to constitute a bniform security instrument covenng real in'ope[ry. UNIFORM COVENANTS. Borrower and Lender covenant and agree tis follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due uuder the Note. Borrower shall also pay fiinds 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 or other instrument received by Lender as payment tinder the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due tinder the Note and this Security Instrument be made in one or more of the following fmms, 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. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may returu any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender m;~ y accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments tu 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 oI' its scheduled due date, then Lender need not pay interest on unapplied fiinds. Lcnde,' muy hold such unapplied fimds ontil Borrower [nukes payment to bring the Loan current. If Borrower does riot do so within a reasonable period of time, Lender shall either apply such funds or retum 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 Instrument or performing the covenunts and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described iii this Section 2, all pay~nents accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under thc 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 iii 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 balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Paymeot which inclodes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late chztrge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Bon'ower to the repayment of the Periodic Pay~nents if, and to the extent that, each payment WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 2 of 9 IDS. Inc. -(800) 554-1872 Form 3051 1101 Borrower(s) Initials ,~,~'._.~ %~/~L. 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 Paymems, such excess may be applied [o any late charges.due. Voluntary prepaymems shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due trader the Note shall not extend or postpone the due date, or change the amount, oftbe Periodic Payments. 3. Funds for Escrow Items. Bo~ower shall pay to Lender on the day Periodic Payments are due under the Note~ until ibc Note is paid in ~11, a stun (the "Funds") [o provide for payment of amounts due for: (a) ~axcs and assess~nents and other items which can attain priority over this Securi~ Instrument as a lien or encumbrance on the Property; (b) leasehold payments or gronnd renls on lhe Pre perry, if any; (c) premiums for any and all tnsurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Bogower to Lender in lieu of the payment of Me,gage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Commuui~ Association Dues, Fees, and Assessments, if any, be escrowed by Bo~ower, and such dues, f~es and assessments shall be an Escrow item. Bo~ower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender ~he Funds IBr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all EscroWItems. 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, Bmxower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment ol'Ftmds has been waived, by Lender and, if Lender. . requires, shall ~mish to Lender receipts evidencing such payment within such time period as Lender may reqmre. Bo~ower's obligation to make such payments and to provide receipts shall lbr all proposes be deemed to be a covenant and agreement contained in this Security Ins~'ument, as the p~ase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items dkectly, pursuant to a waiver, and Boaower fails to pay the amount due fur an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upou such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that arc then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Fonds a~ the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA· Lender shall estimate thc amount of Funds due on the basis ofcu~ent data and reasonable estimates of expenditures of fi~ture 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, instrumentality, or entily (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Fnnds to pay the Escrow Items no later than the tixne specified under RESPA. Lender shall not charge Bo~ower Ibr holding and applying Ihe Ftmds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and ApPlicable Law pemfits Lender to make such a charge. Unless an agreement is made m writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Bon'ower 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 Bon'ower, without charge, an annual accounting of the Funds as required by ~SPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess buds in accordance with ~SPA. If there is a shortage of Funds held in escrow, as defined umler RESPA, Lender shall notit~ Bmxower as rcqnired by RESPA, and Bo~ower shall pay to Lender the amount necessa~ to ~nake up thc shortage in accordance with RESPA, but m no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Bo~ower shall pay to Lender the amount necessmy to make tip thc deficiency in accordance with RESPA, but in no more than 12 montbly payments. Upon payment in full of all stuns secured by this Securi~ Instrument, Lender shall promptly re,nd to Borrower any Funds bchl by Lender. 4. Charges; Liens. Bogowcr shall pay all taxes, assessments, charges, fines, and impositions attributable to dm Property which can attain priori~ over this Security Instrument, leasehold pay~nents or ground reuts on the Property, if any, and Comnmrfity Association Dues, FeeS, and Assessments, 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 priofi~ over this Sccm-ity h~strument unless Bon'ower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good filth by, or defends against enforcement of thc lien in, legal proceedings which m Lender's opinion operate to prevent the enforce~nent 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 agreement satisfacto~ to Lender subordinating the lien to this Securi~ Instrument. If Lender determines that any part of the Property is subject to a lien which can attain p~iority over this Securi~ Inslrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Bo~xower shall satis~ the lien or take one or more of the actions set fBrth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate lax verification an~or reporting se~ice used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, eartbtlaakes and floods, for which Lender requires insurance. This insurance shall be ~naintained in Ihe a~nounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to tl~e preceding sm~tcnces can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one4ilne charge WYOMING - Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 3 of 9 IDS. Inc. - (800) 554-1872 Form 3051 1/01 Borrower(s) Inilials 786 for flood zone determination, certification and tracking services; or (b) a one-rune charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occt~r which reasonably might affect such ddermmanon or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency m connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Leudcr may obtain insurance coverage, a~ Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or 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 lhat the cost of tt~e insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrmnent. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice fi'om Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall pro~nptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, fi~r 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 snake proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the uuderlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoratiou period, Lender sball have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property lo 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 ami restoration in a single payment or in a series of progress payments as the work is completed. Unless ;m agreement is made in writing or Applicable [.aw requires interest to be paid on such insurance proceeds, Lender shall not be reqnired to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower sball not be paid out of the insurance proceeds and shall be .the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with 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 ~nay file, negotiate and settle auy available insurance clai~n and related matters. It' Borrower does not respond within 30 days to a notice fi'om Lender that the insurance carrier has offered to settle a claim, then Leuder may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if'Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any dher of Borrower's rights (other than tbe right to any refund of unearned prenfiums paid by Borrower) under all insurance policies covering tbe Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amom~ls nnpaid under the Note or this Security Instrument, whether or not then due. 6. Occnpancy. Borrower shall occupy, establish, and use the Property as Borrower's principal resideuce within 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 after the date of occupancy, unless Lender otherwise agrees in writing, which consent sball not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorat.e or commit waste on the Property. Wbelber 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 econonfically feasible, Borrower shall promptly repair the Property if damaged to avoid fitrther deterioration or damage. If insurance or condemnalion proceeds are paid in connection with damage to, or the taking ut; the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work ~s completed. If the insurance or condenmation proceeds are not sufficient to repair ur restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent ~nay make reasonable entries upon and inspections of' Ibe Property. If it has reasonable cause, Lender may inspect the interior of the improvelnents 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 knowledge or consent gave materially false, misleading, or inaccurate in/bnnation or statements to Lender (or failed to provide Lender with material infbrmation) in connection with the Loan. Material representations include, but are not limited to, representations concerning Bori'owc,"s occupancy oftbe Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If(a) Bon'ower Ihils to perform the covenants and agreement~ contained in this Security Instrument, (b) there is a legal proceeding that nfight significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding m bankruptcy, probate, for condenmation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrmnent or to enforce laws or regulations), or WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 4 o~ 9 IDS. Inc. - {800) 554-1872 Form 3051 1101 Borrower(s) Initials,,,,,"'~ ~4-- (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 Instrument, including protecting aud/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paymg any sums secured by a lien which has pKiority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities ti, reed on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed t!mt Lender incurs r,o liability fur 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 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. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the gronnd lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to tile Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. lfLender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay tike premiums required to maintain the Mortgage Insurance in effect. If, for any reason, tile Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make sepmately designated payments toward the premiums for Mortgage Insurance, Borrowe,' shall pay tile premiums required to obtain coverage substantially equivalent 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 substautially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use anti retain these payKnents as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any 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 Le ~der again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for'Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premimns for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing fur such termination or until termination is required by Applicable Law. Nothiug in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity th~at purchases the Note) for certain losses it may incur ifBon-ower does not repay the Loan as agreed. Borrower is not a party to tile Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to It~e mortgage insurer and the other party (or.parties) to these agreements. These agreements may 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 mst,ret, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that de, ire from (or Might be characterized as) a portion ot'Bon'owcr'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 tike insurer's risk in exchange for a share of Ire premiums paid to tile 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 fur Mortgage Insurance, and they will not entitle BorroWer to al~y refund. (b) Any such agreements will not at'feet the rights Borrower has - if any- with respect to tile 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 and obtain cancellation of the Mortgage Insurance. To have the Morlgage Insurance terminated automatically, and/or lo receive a refund of auy Mortgage Insurance premiums that were unearued at the time of such cancellation or termination. 11. Assignment of Miscellaueous Proceeds; Forfeiture. All Miscellaneous Proceeds ar~ hereby assigned to and shall be paid to Lender. If the Property is damaged, such MisCellaneous Proceeds shall be applied to restoration or repair'of the Property, if the rcsloration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to respect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken p,'mnptly. 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 agrcemeot is 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 restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with tile excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the o,-de,- provided for in Section 2. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 5 o1' 9 IDS. Inc. -(800) 554-1872 Form 305i 1101 Borrower(s ) I nitials .~-a~'~ ~ I.A. hr the event of a total taking, destruction, or loss in value of the Property, tile Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the P,'operty in which the fair market value of the Property irmnediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the stuns secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the stuns secured by this Security Instrmnent shall be reduced by the amount of thc Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured inunediately before the partial laking, destruction, or loss in value divided by (b) the lhir market value of the Property immediately before the partial taking/destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destrttction, or loss in value is less than the amount of the sums secured immcdia(ely before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in wr, ting, 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 it; after notice by Lender to Borrower that the Opposing Party (as defined i,~ the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is 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 ihird party that owes Bol¥ower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to lVliscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or crmfi ni~ I, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest m the Property or rights under this Security lnstmnmnt. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided m Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of tilt Property or other material impairment of I.ender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attribulable to tile impalmmnt of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of BorrOwer or any Successors in Interest of Burrower. Lender shall nol be required to comlncnce proceedings against any Successor in Interest of Borrower or to refuse to extend time roi' payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors m lntelest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lemler's acceptance of pay ments from third persons, entitms or Successors in Interest of Borrower or in amounts less than tim amount then due, shall not be a waiver of or preclude the exercise of any right or retnedy. 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-s~gns 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 ~nterest ill the Property under the terms of this Security Instrument; (b) is not personally obligated to pay tile sums secured by this Secnrity Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any acconmaodations with regard to tile terms of this Security Instrument or the Note without the co-signer's consent. Subject to the promsions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under tilts Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits tinder this Secority Instrument. Borrower shall not be released t'rom Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in Writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefi, the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services pertbrmed tn connection with Borrower's default, fur the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspecnon and valuation fees. In regard to any other fees, the absence of express authority in this Security Iostrnnmnt to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender inay 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 interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any stuns already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender inay 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 pnnctpal, 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 retired made by direct payment to Bm-rower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices giveu by Borrower or Lender in connection with this Security Instrument must be in writing Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when ,nailed 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 Borrower shall only report a change of address through ihat specified procedure. There may be only one designated notice address under this Security Instrument at auy one time. Any notice to Leuder VVYOMIN G - Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 6 of 9 IDS. Inc. - (800) 554-1872 Form 3051 1/01 Borrower(s) Initials ./~-'"~ ~ shall be given by delivering it or by mailing it by first class mail to Lender's address slated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deetned to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security h~strument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligaooos 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 s hall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall inean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any .action. 17. Borrower's Copy. Borrower shall be gtven one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used m 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, contracl for deed, installment sales contract or escrow agreement, the intent of which is the mmsfer of title by Borrower at a fi~ture date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate pay~nem in fidl of all sums secured by this Security Instrtlment. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercmes this option, Lender shall give Borrower notice ofacceleralion. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower nmst pay all sums secured by this Security Instrmnent. If Borrower fails to pay these snms Prior to the expiration of this period, Lender may invoke any remedies permitted by Ibis Security Instrmnent without further notice or demand on Borrower. 19. Borrower's Right to Reinstate Alter Acceleration. If Borrower meets certain conditions, Borrower shall have lhe right to have enforcement of this Security lnstrmnent discontinued at any time prior to tile earliest of: (a) five days before sale of the Ploperty pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all stuns which then would be due under this Security Instrt,ment and tlie Note as if no acceleration bad occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing, this Security Instrmnent, including, but not limited to, reasonable attorneys' fees, property inspection and valuation lees, and other fees incurred for Ibe purpose ofprolccting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrmnent, and Borrower's obligation to pay the sums secnred by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drax4n upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fillly effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of aCceleration tinder 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 lnigbt result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs olher 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 un.related to a sale of the Note. If there is a change of the Loan Servicer, BmTower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be marie and any other infmmatkm RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the 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 t,-ansfen-ed to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender lnay conxmence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises fi'om the other party's actions pursuant to this Security Instrument or 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 requirements of Section 15) of such alleged breach and afforded the olher party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which ~nust 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 ihe notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportmfity to take corrective action provisions of this Section 20. 21, Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flam~nable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate ~o heahh, safety or environmental protection; (C) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Form 3051 1/01 IDS. Inc. - (800) 554-1872 Page 7 ol~ 9 Borrower(s) Initials ..... Environmental Law; 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 Snbstances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release ora Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities, of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not lira!ted to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, de,nand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Haza,'dous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release ora Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or ally private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessa[y, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Leader further covenanl and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). Tile notice shall specify: (a) the default; (b) tile action required to cure the default; (c) '.a date, not less than 30 days [rom the date tile notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sutns secured by this Security lustrument and sale et'the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence eta default or any other defense of Borrower to acceleration and sale. lfthe default is not cured on or before the date specified in the notice, Lender at its option tnay require immediate payment itl full of all sums secured by this Security Instrument without further 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 ill pursuiug the remedies provided in this Section 22, including, but uot limited to, reasonable attorneys' tees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to tile person itl possession of the Property, if different, in accordance with Applicable Law. Leader shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied itl tile following order: (a) to all expenses of the sale, including, but not limited to, reasouable attorneys' fees; (b) to all sums seem'ed by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all' sums secured by this Security Instrument, Lender shall release this 'Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the tee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. WYOMING - Single Family ~ Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Form 3051 1101 IDS. lac. - (1~00) 554-1872 Page 8 of 9 Borrower(s) Initial~--.,~ ~31~ BY SIGNING BELOW, Borrower accepts and agrees to the terms a nd covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: '/Robin Rothermei (Seal) -Borrower (Seal) -Borrower STATE OF WYOMING, Te 1: on The foregoing instrument was acknowledged before me this Rothermel, and Linda Rothermel. Witness my hand and official seal. My Conm~ission Expires: 9-15-07 (Seal) County ss: 2nd day of August 2004 by Robin Notary Public / WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS Page 9 of 9 IDS, Inc. - (800) 554-1872 Form 3051 1101 Loan Number: 59342142 MIN:100312100040600321 SECOND HOME RIDER THIS SECOND HOME RIDER is made this 2nd day of August, 2004, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") whether there are one or ~nore persons undersigned) to sect,re Borrower's Note to llome Security Mortgage Corporation (the "Lender") of the same date and covering the Property described in the Security Instrument (the "Property"), which is located at: 695 Henry Mountain Road Etna, WYOMING 83118 (Property Address) In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender fi, rther covenant and agree that Sections 6 and 8 of the Security Instrument are deleted and are replaced by the following: 6. Occupancy. Borrower Shall occupy, and shall only use, the Property as Borrower's second home. Borrower shall keep the Property available for Borrower's exclusive use and enjoyment at all ti~nes, and shall not subject the Property ro any timesharing or other shared ownership arrangemen[ or to any rental pool or agreement that requires Borrower either to rent the Property or give a management finn or any other person any control over the occupancy or use of the Property. 8. Borrower's Loan Application. Borrower shall be in defaolt if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, nfisleading, or inaccurate information or statements to Lender (or failed to provide Lender with ~naterial information) in cotmection with the Loan Material representations include, but are not limited to, rcpresentatmns concermng Borrower's occupancy of the Property as Borrower's second home. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provismns contained in this Second Robin Rothermel -Borrower Linda Rotherm el I -Bon-ower MULTISTATE SECOND HOME RIDER--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 1 of 1 IDS. Inc. - (800) 554-1872 Form 3890 1/01 793 Exhibit "A" PARCEL 1 fee simple: A portion of the NI/2S1/2NE1/4 of Section 13, T35N, RI 19W, 6~ P.M., East from Etna, Lincoln County, Wyoming and being more particularly described as follows: BEGINNING at the B.L.M. type Monument found marking the Northwest corner of said N 1/2S1/2NE1/4; thence S89°31'03"E 649.80 feet; thence S0021'44"W 670.12 feet; thence N89°33'52"W 649.80 feet, to the B.L.M. type Monument found marking the Southwest comer of said NI/2SI/2NEI/4; thence N0°21 '44"E 670.65 feet, to the Point of Beginning. PARCEL 2 easement interest: With that easement for ingress and egress recorded in Book 172 P.R., Page 313 and Book 361 P.R., Page 859.