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HomeMy WebLinkAbout903113Return To: HOMECOMINGS FINANCIAL NETWORK, INC ONE MERIDIAN CROSSING, STE 100 MINNEAPOLIS, MN 55423 loan Number: 042-187751-5 9031 13 RECEIVED LINOOLN OOUNTY OLERK S! P 2,t F'fi t,: 22 Prepared By: HomeComings Financial Network 14850 Quorum Drive, Suite 500 Dallas, TX 75254 "" '" 0 5 6 : [SI)ace Above Tiffs Line For Retm'di,tg l)ataI MORTGAGE N, IIN 100062604218775155 DEFINITIONS Words used in multiple sections of this document are defined below aud other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding tl~~ usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated together with all Riders to this document. (B) "Borrower" is ERIC BOONE HODGES .ZdqD LAURA GERMAINE HODGE.~, SEPTEMBER 23RD, 2004 HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation d~at is acting solely as a nominee for Lender and Lender's succcssm's and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existiHg under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 4851.}1-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUIVIENT WITH MERS MFWY7770(ll/00) / 042-187751-5 Page 1 of 15 Initi ,, VMP MORTGAGE FORMS - (800)521-7291 Form 3051 1/01 (D) "Lender" is HOMECOMINGS FINANCIAL NETWORK Lender is a CORPORATION organized and existing under the laws of DELAWARE .. Lender's address is 14850 QUORUM DRIVE, SUITE 5:)0 DALLAS, TX 75254 (E) "Note" means the promissory note signed by Borrower and dated SEPTEMBER 23RD, 2004 The Note states that Borrower owes Lender ONE HUNDRED ~J [X THOUSAND FOUR HUNDRED AND NO/100 Dollars (U.S. $ 106,4 00.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than OCTOBER 1 WF, 2 034 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, :my prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. 0t) "Riders" means all Riders to this Security Instrument th'at arc executed by Borrower. The following Riders are to be executed by Borrower [check box as applicablcl: ~ Adjustable Rate Rider ~'~ Condominium Rider ~ Second Home Rider [-~ Balloon Rider [--~ Pla~med Unit Development Rider [~ 1-4 Family Rider ~-] VA Rider ~ Biweekly Payment Rider [~ Other(s) [specifyl Or) "Applicable La~-.~eans all controlling applicable t'cdcr:d, state and local statutes, regulations, ordinances and administ, r.a~ive rules and orders (that have thc cI't'cct of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" recalls all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condoufi~fium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of ftmds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated thn)uMtt an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, m' :mthorize a financial institution to debit or credit an account. Such term includes, but is not limited to, plfint-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Scciim~ 3. (M) "Miscellaneous Proceeds" means any co~npensation, sculcmcnt, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under thc coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmatitm m' other taking of all or any part of the Property; (iii) conveyance in lieu of conde~mmtion; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (IN) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount duc for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security lnslrumcnt. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 350(b~ ils they nfight be amended from time to time, or any additional or successor legislation or regulation that t, overus the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements ',~'{~d restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does n~t qualify as a "federally related mortgage loan" under RESPA. MFWY7770 (11/00) / 042-187751-5 Page '2 of 16 Form 3051 1/01 :...,.:.' ;.. :;. 023 6 (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 Ntm: and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY . This Security Instrument secures to Lender: (i) the repayment ,d' the Loan, aud all renewals, extensions and modifications of the Note; and (ii) the performance of Bmmwer's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrtm cr th~¢s hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's succcssm's and assigns) and to the ·successors and assigns of MERS, with power of sale, fl~c fidlowing described property located in the COUNTY of LINCOI2,J : [Type of Recording Jurisdiction] [Name of Recording lurlsdiction] LOT 4 OF NORBESS ESTATES, LINCOLN COUNTY, ~'/'/(>I'dlNG AS DESCRIBED ON THE OFFICIAL PI_AT FILED FEBRUARY 13, 2003 AS Ih.~;'iI~UMENT NO. 887772 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. Parcel ID Number: 3418212004300 which currently has the address of 716 LINCOLN CO~ RD. 121 , [Street] BEDFORD I(:ily[ , Wyonfing 83112 [Zip Code] ("Property Address"): TOGETHER WITH all the improvements now or hcrcal'tcr erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. :\11 of the /bregoing is referred to in this Security Instrument as the "Property." Borrower understands aud a~rees that MERS holds only legal title to the. interests granted by Borrower in this Security Instrumcm, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successm's aim assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to fi)reclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling tiffs Security Instrument. BORROWER COVENANTS that Borrower is lawfully sciscd of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that th~ Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally die title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenauts tbr national use and non-uniform covenants with limited variations by jurisdiction to constitute ',~ tmifi)nn security instrument covering real property. MFWY7770 (11/00) / 042-187751-5 (~-6A(WY) {ooo~Lo~ Page 3 of 15 · Form 3051 1/01 0237 UNIFORM COVENANTS. Borrower and Lender coven:mi and agree as follows: 1. Payment of Principal, Interest, Escrow Items, I'rel)ayme,~t Charges, and Late Charges. Borrower shall pay when due the principal of, and interest (~n, thc debt evidenced by the Note and any prepayment charges and late charges due under the Note. B()rn~wcr shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Nccm'ity Instrument shall be ~nade in U.S. currency. However, if any check or other instrument received b> Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may ~cquirc that any or all subsequent payments due under the Note and this Security Instrument be nmde i~t m~e 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) Electro~fic Etnlds Transfer. Payments are deemed received by Lender when received at thc location designated in the Note or at such other location as nmy be designated by Lender in accord:moo with the notice provisions in Section 15. Lender may return any payment or partial payment if the payn~cnt m' partial payments are insufficient to bring the Loan current. Lender may accept any payment or lX,rti:d payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice t(~ its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such paymeuts 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 unapplied ftmds until Borrower nmkes payment to bring the Loan current. If Borrower does not do so within a reason:al)lc period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to for~ch)sure. No offset or claim which Borrower might have now or in the future against Lender shall relieve B~m'ower from umking payments due under the Note and this Security Instrument or performing the coven:mls and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as ()tl~crwise described in this Section 2, all payments accepted and applied by Lender shall be applied in tl~c fi)llowing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) ammmts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any renmining amounts shall be applied first to late charges, second to any other ammmts 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 Payment which includes a sufficient amount to pay any late charge due, the payment m',tv be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstandii~g, Lender nmy apply any payment received from Borrower to the repayment of the Periodic Payments il', and to the extent that, each payment can be paid in full. To the extent that any excess exists after the paymcm is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Nliscelllmeous Proceeds to principal due under the Note shall not extend or postpone the due date, or change ~l~c :m~()unt, 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 "Ftmd~") to provide tbr payment of amounts due for: (a) taxes and assessments and od~er items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments m' ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender undc'r 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 prenfiums in accordance with the provisions of Sec'tiara 10. These items are called "Escrow Items." At origination or at any time during the term of the l_(,,m, Lender nmy require that Connnmfity Association Dues, Fees, and Assessments, if any, be escrowed I)5, Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly I'urnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Ftmds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Esc,.w ltcms. Lender nmy waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items :~l any tilne. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts MFWY7770 (ll/O0) / 042-187751-5 ~,a,~ [~['~ (~-6A(WY) (ooo5).o~ Page 4 of 16 Form 3051 1/01 due for any Escrow Items for which payment of Funds has bccn waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment wid~i,I such time period as Lender may require. Borrower's obligation to make such payments and to provide ,cccipts shall for all purposes be deemed to be a covenant and agreement contained in this Securiiy Instrm,~c,,t, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated ulldcr 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, upon such revocation, Bor~)w¢r shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an aunt)mit (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not t~ c×cc~:d the maxinmm amount a lender can require under RESPA. Lender shall estimate the amount of Ftmds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items ~r (Itherwise in accordance with Applicable Law. The Funds shall be held in an institution whose aleph,sits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds t~ pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower lk~r htdding and applying the Funds, ammally analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless au agreement is made in writing or Applicable Law requires interest to be paid on the Funds, I.c~der shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender c,'m agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, witl~ma charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defiacd onder RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. It' tl~cr~: is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as r~ClUircd by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordzmce with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in cscr~)w, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to nkake up the deficiency in accordance with RESPA, but in no mor~: than 12 monthly payments. Upon payment in full of all sums secured by this Securit> Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security h~strument, leasehold payments or ground rents on the Property, if any, and Comnmnity Associatit~n Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pzty dl~nl in the maimer provided in Section 3. Borrower shall promptly discharge any lien which has pri~rity over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligati{m secured by the lien in a maimer acceptable to Lender, but only so long as Borrower is performing such a.~rccm~:ut; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proct:cdings which in Lender's opinion operate to prevent the enforcement of the lien While those proceedings ~c pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an ag rccment satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the MFWY7770 (11/00) / 042-187751-5 (~-6AIWY) Iooo51.Ol Page 5 of 15 Form 3051 1/01 0239 lien. Within 10 days of the date on which that notice is given, lIra-rower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge fin' a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the imprm c,tcnts 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, earthquakes and II~(~cls, fin' which Leuder requires insurance. This insurance shall be maintained in the amounts (includi,g deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preccdi,g sentences can change during the term of the Loan. The insurance carrier providing the insurance shall bc chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which fight shall n~t be exercised unreasonably. Lender may require Borrower to pay, in cmmection with this Loan, ~itl~cr: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a m~cqime charge for flood zone determination and certification services and subsequent charges each time rcm:lppiugs or similar changes occur which reasonably might affect such determination or certification, l~m'rt)xver shall also be responsible for the payment of any fees imposed by the Federal Emergency Nl'.magc,nent Agency in connection with the review of any flood zone determination resulting from an objccdm~ by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Leander is uuder no obligation to purchase any particular type or amount of coverage. Therefore, such cover,ge shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or tl~c c,mtcnts of the Property, against any risk, hazard or liability and might provide greater or lesser coverage d~an was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtaiucd might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Leuder under this Section 5 shall become additional debt of Borrower secured by this Security I.~strum~nt. These amounts shall bear interest at the Note rate from the date of disbursement and shall be p:~y',d)tc, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals ~,1' sud~ policies shall be subject to Lender's right to disapprove such policies, shall include a standard mm'tgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall ha~c thc right to hold the policies and renewal certificates. If Lender requires, Borrower shall prompdy give I,~ Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance c~xcrage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy sl~all include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss p',t3 cc. In the event of loss, Borrower shall give prompt notice t~ the insurance carrier and Lender. Lender may nnake proof of loss if not made promptly by Borrower. t!.lcss Lender and Borrower otherwise agree in writing, any insurauce proceeds, whether or not the underlyi,g i,surance was required by Lender, shall be applied to restoration or repair of the Property, if the rest, rati,m m' repair is econonfically feasible and Lender's security is not lessened. During such repair and rest,,'.,~tim~ period, 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 sudx inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and rcst,,'ation in a single payment or in a series of progress payments as the work is completed. Unless an agrccmc,~t is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lendc~ shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adju~hcrs, 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 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 Securily I~strument, whether or not then due, with MFWY7770 (11/00) / 042-187751-5 iI~-6A(WY) IooosLo~ Page 6 of 15 Form 3051 1/01 O5oali,3 0240 the excess, if any, paid to Borrower. Such insurance proceeds sh'all be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender nmy file, ncgtmate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender re'ay negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, ~r 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 trader the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to :my refund of unearned premiums paid by Borrower) under all insurance policies covering the Propert3, instal'ar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then flue. 6. Occupancy. Borrower shall occupy, establish, and usc the Property as Borrower's principal residence within 60 days after the execution of this Security t~strument aud shall continue to occupy the Property as Borrower's principal residence for at least one yc',n' after the date of occupancy, mfless Lender otherwise agrees in writing, which consent shall not be tmrcasonably wifl~eld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the l'roperty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or comnfit 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 decreasi,g in value due to its condition. U~tless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if danmged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage t~, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property mdy if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and rcsttn'ation in a single payment or in a series of progress payments as the work is completed. If the insurance {~r co.denmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of B~,¥ower's obligation for the completion of such repair or restoration. Lender or its agent may nmke reasonable entries upon 'and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the impr, n'emCl~tS on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspccli{m 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 i~:tccm'ate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representati~ms concerniug Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Uuder this Security Instrument. If (a) Borrower fails to perform the covenants and agreements c~,nlained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, lmSate, lbr condenmation or forfeiture, for enforcement of a lien which may attain priority over this Sccm'ity Iustrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender nmy 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 and/or assessing the value ~ f thc Pn)perty, and securing and/or repairing the Property. Lender's actions can include, but are not limited m: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable MFWY7770 (11/00) / 042-187751-5 Page 7 of 15 Form 3051 1/01 090,3.,1l..t3 ',-. 024 .t attorneys' fees to protect its interest in the Property and/or ]'iglkts under tiffs Security Instrument, including its secured position in a bankruptcy proceeding. Securing iI[c Property includes, but is not limited to, entering the Property to make repairs, change locks, replace m' bua['d up doors and windows, drain water from pipes, eliminate building or other code violations or d:tngcrous conditions, and have utilities turned on or off. Although Lender may take action under this Sectim~ 0, 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 for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall beco]ne additional debt of Borrower secured by this Security Instrument. These amounts shall bc'~u' intcr~st at the Note rate from the date of disbursement and shall be payable, with such interest, upon uuticc fi'om 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 leascludd and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage lu~urance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the lX, h,rtg',tg~ Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases u~ bc available from file mortgage insurer that previously provided such insurance and Borrower was required tt~ make separately designated payments toward the premiums for Mortgage Insurance, Borrower sluLll pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance prcviot~sly in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equiv:d~nt Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount ur the separately designated payments that were due when the insurance coverage ceased to be in effect. L~nder will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgag~ h~surance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultiuu~tcly paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such hIss ]'cscrve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amtmnt and for the period that Lender requires) provided by an insurer selected by Lender again becomes ax:fihLble, is obtained, and Lender requires separately designated payments toward the prenfiums for Mortgage lnsurauce. If Lender required Mortgage Insurance as a condition of znaking the Loan and Borrower was required to nmke separately designated payments toward the premiums for Mortgage Insurance, Burrower shall pay the premimns required to maintain Mortgage Insurance in effect, or to provide a mm-rcfimdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with :my written agreement between Borrower and Lender providing for such termination or until ternfination is rcqLlircd by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at thc rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such instJranc~ 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 the mortg',L~c iJ~surer 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 m:~y include funds obtained from Mortgage Insurance premimns). As a result of these agreements, Lender, any purchaser {d' 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 BorJ't)x~.~l"s payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, m' reducing losses. If such agreement provides that an affiliate of Lender takes a share of the instu'cr's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "c:Lptive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will nut entitle Borrower to any refund. MFWY7770(I1/O0)/O42-187751-5 In,rials: ~ [.~ ~ (~e-6A(WY) (ooosl.o~ Page a of ~5 Form 3051 1/01 -. :.. -:-..'. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, 1o request aud obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance termin:~led automatically, and/or to receive a refund of any Mortgage Insurance premiums that were m~c. iu'ned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeitu,'e. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceed~ gh:dl be applied to restoration or repair of the Property, if the restoration or repair is economically fe',~iblc and Lender's security is not lessened. During such repair and restoration period, Lender shall have thc right to hold such Miscellaneous 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 tmdcrtakeu promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applic;dflc Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pa3 Ih,Tower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not ecm,mfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to thc sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Bm'r,m er. 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 x'alue of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in v;tlue of the Property iu which the fair market value of the Property inmaediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instmmeut innnediately 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 irc :tnlount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount ot the sums secured i~mnediately before the partial taking, destruction, or loss in value divided by (h) thc lair market value of the Property i~mnediately before the partial taking, destruction, or loss in x';dtlc. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in x, zduc of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured inunediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscelhmc,ms Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after n,tice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to r~st,)ration or repair' of the Property or to the sums secured by this Security Instrument, whether or not then duc. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party agait~st 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 crimimal, is begun that, in Lender's judgment, could result in forfeiture of the Property t~r other material impairment of Lender's interest in the Property or rights under this Security Instrumcm. Borrower can cure such a default and, if acceleration has 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 l',,'fi:iture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to resttm, ttion or repair of the Property shall be applied in the order provided for in Section 2. MFWY7770 (11/00) / 042-187751-5 (~le-6 AlWY)(oooe).o~ Page 9 of 15 Form 3051 1/01 12. Borrower Not Released; Forbearance By Len(h,r Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured hy this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall nm epcrate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not hc rcclttired to connnence proceedings against any Successor in Interest of Borrower or to refuse to extoml time for payment or otherwise modify amortization of the sums secured by this Security Instrument hy reason of any demand nmde by the original Borrower or any Successors in Interest of Borrower. Any fi~rhc',lrance by Lender in exercising any right or remedy including, without linfitation, Lender's acceptance ~1' payments from third persons, entities or Successors in Interest of Borrower or in amounts less than th~ :tmmmt then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Success~,'s and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be j~fint and several. However, any Borrower who co-signs this Security Instrument but does not execute thc I'~mo (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey thc c~-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated t~ pay the stuns secured by this Security Instrument; and (c) agrees that Lender and any other Borr~x~cr can agree to extend, modify, forbear or make any accommodations with regard to the terms of dfis Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Succcsser ill Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writis~g, 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 instrlmtent unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrulncnt shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender ]nay charge Borrower fees fi~r services performed in co~mection with Borrower's default, for the purpose of protecting Lender's imcrest iu the Property and rights under this Security Instrument, including, but not linfited to, attorneys' l'ces, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on thc 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 maxinmm loall charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collc~'tcd in co~mection 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 sums already collected fi'mn Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose [(~ make this refund by reducing the principal owed under the Note or by making a direct payment to B~rmwer. 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 such refund made by direct payment to Borrower will constitute a waiver of any right ill action Borrower nfight have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail m' when actually delivered to Borrower's notice address if sent by other means. Notice to any one Bomm'cr shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The nmicc address shall be the Property Address unless Borrower has designated a substitute notice address by nmicc to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender Slab:cities a procedure for reporting Borrower's change of address, then Borrower shall only report a change {~1' address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed t(~ have been given to Lender until actually received by Lender. If any notice required by this Security lltstrument is also required under Applicable Law, the Applicable Law requirement will satisfy the cm'rcsp(mding requirement under this Security Instrument. (~)~-6A(WY) {0005).Ol Page mol ~s Form 3051 1/01 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 obligations contained in this Security Instrument are subject tt~ any requirements and limitations of Applicable Law. Applicable Law might explicitly or'implicitly altmv the parties to agree by contract or it might be silent, but such silence shall not be construed as :t lm~hibition against agreement by contract. In the event that any provision or clause of this Security Instrtmlcnt 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 tile m:tsculii~e 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 without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy ~1: 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 transferred in a bond for deed, c~}lltract fi~r deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title b3 Bm'rower at a future date to a purchaser. If all or any part of the Property or any Interest in thc l'r.pcrty 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 payinent i~ fttll of all sums secured by this Security Instrument. However, this option shall not be exercised by l~c~der if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borr~wcr notice of acceleration. The notice shall provide a period of not less than 30 days from the date fl~e nmic~ is given in accordance with Section 15 within which Borrower nmst pay all sums secured by this Sccmity Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrt~\vcr. 19. Borrower's Right to Reinstate After Acceleralim~, It' Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security h~strument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pm'suaut 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 cnfilrcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Ii~strmnent, including, but not limited to, reasonable attorneys' fees, property inspection and valtr, ltion tees, and other fees incurred for the purpose of protecting 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 Instrument, and Borrower's obliga~i~m to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require thz~t I~m'rower pay such reinstatement sums and expenses in one or more of the following forms, as selected hy 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, i~strun~entality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security l~strument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice o1' Crievance. 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 (kn{~\vn as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale {~t' th~ Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should bc m:~cle and any other information RESPA MFWY7770 (11/00) / 042-187751-5 l~-a~lW¥l iooos}m Pag~ 1 1 of 15 Form 3051 1/01 requires in coimection with a notice of transfer of servicing. I1' iI~c Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Nme, thc 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 thc Nme purchaser. Neither Borrower nor Lender may commence, join, or be joiued to any judicial action (as either an individual litigant or the member of a class) that arises fi'mn thc other party's actions pursuant to this Security Instrument or that alleges that the other party has brcach¢d auy provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or LciMcr h:~s notified the other party (with such notice given in compliance with the requirements of Section 15) .r such alleged breach and afforded the other party hereto a reasonable period after the giving .I~ such notice to take corrective action. If Applicable Law provides a time period which must elapse bcl'm'c certain action can be taken, that time period will be deemed to be reasonable for purposes of this p:,'agraph. 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 thc 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, m' wastes by Envirmm~ental Law and the following substances: gasoline, kerosene, other flammable m' I.xic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbest~s t~r Ibrmaldehyde, and radioactive ~naterials; (b) "Enviroimxental Law" ~neans federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Envirmm~cntal Cleanup" includes any response action, remedial action, or removal action, as defined in Envirmm~ental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, m' otherwise trigger an Enviromnental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, m~ or iu the Property. Borrower shall not do, nor allow auyone else to do, anything affecting the Property (:~) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects thc value of file Property. The preceding two sentences shall not apply to the presence, use, or stor',~gc ou the Property of snkall quantities of Hazardous Substances that are generally recognized to be :q~lmq)riate to normal residential uses and to lnaintenance of the Property (including, but not limited to, huz',trchms substances in consumer products). Borrower shall promptly give Lender written notice of (',0 ,'my investigation, claim, demand, lawsuit or other action by any goverrm~ental or regulatory agency or priv:tte party involving the Property and any Hazardous Substance or Environmental Law of which B,~mwer has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilli ng, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition crmscd by file presence, use or release of a Hazardous Substance which adversely affects the value of thc t'r~pcrty. If Borrower learns, or is notified by any governmental or regulatory authority, or any private p:.'ty, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Ilorrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Nmhi.g herein shall create any obligation on Lender for an Enviromnental Cleanup. MFWY7770 (11/00) / 042-187751-5 (~}e-6A(WY) Iooosl.Ol Page 12 of 15 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender ftmhcr cove~mnt and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Ih),','ou'er prior to acceleration following Borrower's breach of any covenant or agreement in lhis Seem'fry Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides olherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) :t dale, not less titan 30 days from the date the notice is given to Borrower, by which the default mnsl be cn,'ed; and (d) that failure to cure the default on or before the date specified in the notice may ,'es,Il in acceleration of the sums secured by this Security Instrument and sale of 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 of a default or any other defense of Borrower to acceleration ;,mi sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without fm'lher demand and may invoke the power of sale and any other remedies permitted by Applicable L:m. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give nolice of intent to foreclose to Borrower and to the person in possession of the Property, if diffe,-cm, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the ma,mcr provided in Section 1~. Lender shall publish the notice of sale, and the Property shall be sohl in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property ni any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses o1' d~e sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Sccn,'ity 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 h~strmnent, Lender shall release this Security Instrument. Borrower shall pay any recordation costs, l.ender amy charge Borrower a fee for releasing riffs Security Instrument, but only if the fee is paid t~ 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. MFWY7770 (11/00) / 042-187751-5 (~-6A(WY) Iooos).o~ Page 13 of ] 5 Form 3051 1/01 0903113 0, 47 BY SIGNING BELOW, Borrower accepts and agrees tt) tile terms and covenants contained in this Security Instrument and in any Rider executed by Borrower aim i'cc()rded with it. Wi tnesses: (Seal) ERIC BOONE HODGES h -Borrower ~UkA GErMAInE HOD~S (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower MFWY7770 (11/00) / 042-187751-5 Page 14 of 15 Form 3051 1/01 S TA TE OF WYOMING, County The foregoing instrument was acknowledged before mc this o7~ ~ 2004 by ERIC BOONE HODGES AND LAURA GERMAINE HODGE.~, HUSBAND AND WIFE My Comanission Expires: ¢~ ~ . WYO~NG ~ r~ ota~5'q uhlic MFWY7770 (11/00) / 042-187751-5 (~-6A(WY) Iooo~Lol Page 16 of 15 Form 3051 1/01