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HomeMy WebLinkAbout07-3777PHELAN HALLINAN & SCHMIEG, LLP LAWRENCE T. PHELAN, ESQ., Id. No. 32227 FRANCIS S. HALLINAN, ESQ., Id. No. 62695 DANIEL G. SCHMIEG, ESQ., Id. No. 62205 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHIA, PA 19103 (215) 563-7000 156436 SOVEREIGN BANK, SB/M TO WAYPOINT BANK, F/K/A HARRIS SAVINGS BANK 601 PENN STREET READING, PA 19601 Plaintiff V. PAMELA LYNN PALMER A/K/A PAMELA PALMER SOWARD 4 TRINE AVENUE MOUNT HOLLY SPRINGS, PA 17065 Defendant ATTORNEY FOR PLAINTIFF COURT OF COMMON PLEAS CIVIL DIVISION TERM NO. oI - 3'1 *7 u CUMBERLAND COUNTY CIVIL ACTION - LAW COMPLAINT IN MORTGAGE FORECLOSURE File #: 156436 NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (800)990-9108 File #: 156436 IF THIS IS THE FIRST NOTICE THAT YOU HAVE RECEIVED FROM THIS OFFICE, BE ADVISED THAT: PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. § 1692 et seq. (1977), DEFENDANT(S) MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF. IF DEFENDANT(S) DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL OBTAIN AND PROVIDE DEFENDANT(S) WITH WRITTEN VERIFICATION THEREOF; OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. LIKEWISE, IF REQUESTED WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL SEND DEFENDANT(S) THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM ABOVE. THE LAW DOES NOT REQUIRE US TO WAIT UNTIL THE END OF THE THIRTY (30) DAY PERIOD FOLLOWING FIRST CONTACT WITH YOU BEFORE SUING YOU TO COLLECT THIS DEBT. EVEN THOUGH THE LAW PROVIDES THAT YOUR ANSWER TO THIS File #: 156436 COMPLAINT IS TO BE FILED IN THIS ACTION WITHIN TWENTY (20) DAYS, YOU MAY OBTAIN AN EXTENSION OF THAT TIME. FURTHERMORE, NO REQUEST WILL BE MADE TO THE COURT FOR A JUDGMENT UNTIL THE EXPIRATION OF THIRTY (30) DAYS AFTER YOU HAVE RECEIVED THIS COMPLAINT. HOWEVER, IF YOU REQUEST PROOF OF THE DEBT OR THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR WITHIN THE THIRTY (30) DAY PERIOD THAT BEGINS UPON YOUR RECEIPT OF THIS COMPLAINT, THE LAW REQUIRES US TO CEASE OUR EFFORTS (THROUGH LITIGATION OR OTHERWISE) TO COLLECT THE DEBT UNTIL WE MAIL THE REQUESTED INFORMATION TO YOU. YOU SHOULD CONSULT AN ATTORNEY FOR ADVICE CONCERNING YOUR RIGHTS AND OBLIGATIONS IN THIS SUIT. IF YOU HAVE FILED BANKRUPTCY AND RECEIVED A DISCHARGE, THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. IT IS AN ACTION TO ENFORCE A LIEN ON REAL ESTATE. File #: 156436 1. Plaintiff is SOVEREIGN BANK, S/B/M TO WAYPOINT BANK, F/K/A HARRIS SAVINGS BANK 601 PENN STREET READING, PA 19601 2. The name(s) and last known address(es) of the Defendant(s) are: PAMELA LYNN PALMER A/K/A PAMELA PALMER SOWARD 4 TRINE AVENUE MOUNT HOLLY SPRINGS, PA 17065 who is/are the mortgagor(s) and/or real owner(s) of the property hereinafter described. 3. On 07/20/1998 mortgagor(s) made, executed, and delivered a mortgage upon the premises hereinafter described to PLAINTIFF which mortgage is recorded in the Office of the Recorder of CUMBERLAND County, in Book: 1469, Page: 741. The mortgage and assignment(s), if any, are matters of public record and are incorporated herein by reference in accordance with Pa.R.C.P. 1019(g); which Rule relieves the Plaintiff from its obligations to attach documents to pleadings if those documents are of public record. 4. The premises subject to said mortgage is described as attached. 5. The mortgage is in default because monthly payments of principal and interest upon said mortgage due 12/01/2006 and each month thereafter are due and unpaid, and by the terms of said mortgage, upon failure of mortgagor to make such payments after a date specified by written notice sent to Mortgagor, the entire principal balance and all interest due thereon are collectible forthwith. File 4: 156436 6. The following amounts are due on the mortgage: Principal Balance $54,307.23 Interest $1,966.52 11/01/2006 through 06/21/2007 (Per Diem $8.44) Attorney's Fees $1,250.00 Cumulative Late Charges $109.56 07/20/1998 to 06/21/2007 Cost of Suit and Title Search 750.00 Subtotal $58,383.31 Escrow Credit $0.00 Deficit $7.97 Subtotal 7.97 TOTAL $58,391.28 7. 8 If the mortgage is reinstated prior to a Sheriff s Sale, the attorney's fee set forth above may be less than the amount demanded based on work actually performed. The attorney's fees requested are in conformity with the mortgage and Pennsylvania law. Plaintiff reserves its right to collect attorney's fees up to 5% of the remaining principal balance in the event the property is sold to a third party purchaser at Sheriffs Sale, or if the complexity of the action requires additional fees in excess of the amount demanded in the Action. Plaintiff is not seeking a judgment of personal liability (or an in personam judgment) against the Defendant(s) in the Action; however, Plaintiff reserves its right to bring a separate Action to establish that right, if such right exists. If Defendant(s) has/have received a discharge of personal liability in a bankruptcy proceeding, this Action of Mortgage Foreclosure is in no way an attempt to reestablish such personal liability discharged in bankruptcy, but only to foreclose the mortgage and sell the mortgaged premises pursuant to Pennsylvania Law. File #: 156436 9. Notice of Intention to Foreclose as set forth in Act 6 of 1974, Notice of Homeowner's Emergency Assistance Program pursuant to Act 91 of 1983, as amended in 1998, and/or Notice of Default as required by the mortgage document, as applicable, have been sent to the Defendant(s) on the date(s) set forth thereon, and the temporary stay as provided by said notice has terminated because Defendant(s) has/have failed to meet with the Plaintiff or an authorized consumer credit counseling agency, or has/have been denied assistance by the Pennsylvania Housing Finance Agency. 10. This action does not come under Act 6 of 1974 because the original mortgage amount exceeds $50,000. 11. Defendants' application for assistance under Act 91 of 1983 has been rejected by the Pennsylvania Housing Finance Agency. WHEREFORE, PLAINTIFF demands an in rem Judgment against the Defendant(s) in the sum of $58,391.28, together with interest from 06/21/2007 at the rate of $8.44 per diem to the date of Judgment, and other costs and charges collectible under the mortgage and for the foreclosure and sale of the mortgaged property. PHELAN HALLINAN & SCHMIEG, LLP By: /s/Francis S. Hallinan LAWRENCE T. PHELAN, ESQUIRE DANIEL G. SCHMIEG, ESQUIRE FRANCIS S. HALLINAN, ESQUIRE Attorneys for Plaintiff File #: 156436 LEGAL DESCRIPTION ALL that certain lot or piece of ground in the Brough of Mt. Holly Springs, Cumberland County, Pennsylvania, more particularly bounded and described pursuant to a land subdivision for Constantinos J. Mallios dated August 1989, revised through November 14, 1989, and recorded in Cumberland County Plan Book 59 at Page 117, bounded and described as follows: BEGINNING at an iron pin at the corner of Lot No. 2 and 3 on the above referred to plan; thence South 89 degrees 45 minutes 00 seconds East 114.15 feet to an iron pin at land now or formerly of United Telephone Company of PA; thence by said land South 00 degrees 15 minutes 00 seconds West 24.00 feet to an iron pin at corner of Lots No. 1 and 2 on the above referred to subdivision plan; thence North 89 degrees 45 minutes 00 seconds West 114.15 feet to an iron pin at corner of Lots No. 1 and 2 of the above referred to plan; thence North 00 degrees 15 minutes 00 seconds East 24.00 feet to an existing iron pin at corner of Lots No. 2 and 3 of the above referred to subdivision plan the point and place of BEGINNING. CONTAINING 2,740 SQUARE FEET and designated as Lot No. 2 thereon and having the address of 4 Trine Avenue. UNDER AND SUBJECT TO THE RESTRICTION that the premises shall remain owner occupied for a period of twenty-five (25) years from the date of this conveyance. File #: 156436 BEING the same premises which Robert C. Kozak and Patricia A. Kozak, husband and wife, by their Deed dated February 10, 1993, and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, in Deed Book D, Volume 36, Page 173, granted and conveyed unto Housing Authority of the County of Cumberland, Grantor herein. PARCEL NO: 23-32-2336-392. PROPERTY BEING: 4 TRINE AVENUE File #: 156436 VERIFICATION FRANCIS S. HALLINAN, ESQUIRE hereby states that he is attorney for Plaintiff in this matter, that Plaintiff is outside the jurisdiction of the court and/or the verification could not be obtained within the time allowed for the filing of the pleading, that he is authorized to make this verification pursuant to Pa.R.C.P. 1024 (c), and that the statements made in the foregoing Civil Action in Mortgage Foreclosure are based upon information supplied by Plaintiff and are true and correct to the best of its knowledge, information and belief. Furthermore, counsel intends to substitute a verification from Plaintiff upon receipt. The undersigned understands that this statement is made subject to the penalties of 18 Pa.C.S. Sec. 4904 relating to unsworn falsifications to authorities. Francis S. Hallinan, Esquire Attorney for Plaintiff DATE: 1% 1-re'11407 „vC V tT? r ?' F zt, 0 0 Y. ? Christopher E. Rice, Esquire MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES Ten East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff SOVEREIGN BANK, SB/M TO : IN THE COURT OF COMMON PLEAS OF WAYPOINT BANK, F/K/A : CUMBERLAND COUNTY, PENNSYLVANIA HARRIS SAVINGS BANK, Plaintiff NO. 07 - 3777 CIVIL TERM V. PAMELA LYNN PALMER A/K/A PAMELA PALMER SOWARD, Defendant PRAECIPE To the Prothonotary: Please enter the appearance of MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER, as attorneys for the Defendant. MARTSON LAW OFFICES By u!*? ? S Hubert X. Gilroy, Esquire Attorney I.D. No. 29943 Christopher E. Rice, Esquire Attorney I.D. No. 90916 10 East High Street Carlisle, PA 17013 (717) 243-3341 Date: -7- /; - Q 7 F.\FILES\ ] 2675\1 2675 . I.pra CERTIFICATE OF SERVICE I, Mary M. Price, an authorized agent for Martson Deardorff Williams & Otto, hereby certify that a copy of the foregoing Praecipe was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Francis S. Hallinan, Esquire Lawrence T. Phelan, Esquire PHELAN HALLINAN & SCHMIEG, LLP One Penn Center Plaza, Suite 1400 Philadelphia, PA 19103 MARTSON LAW OFFICES L'M ---? tA' •0 - By: a M. Price Te ast High Street Carlisle, PA 17013 (717) 243-3341 Dated: 7 / 0 7 r"? ? i? ?? - - _ - `? _. r__ ? ' >?i? -n9t? Ql ' (? ?? ° `- ^; _ r ?'-? ?y -1 Christopher E. Rice, Esquire MARTSON DEARDOR? F WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES Ten East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff SOVEREIGN BANK, S/ /M TO : IN THE COURT OF COMMON PLEAS OF WAYPOINT BANK, F/KJA : CUMBERLAND COUNTY, PENNSYLVANIA HARRIS SAVINGS BANK, Plaintiff NO. 07 - 3777 CIVIL TERM V. PAMELA LYNN PALMER A/K/A PAMELA PALMER SOWARD, Defendant ANSWER 1. Admitted. 2. Admitted. 3. Admitted in part and denied in part. It is admitted that Defendant executed a mortgage with Plaintiff's predecessor in title, but it is denied whether that mortgage is located at Book 1469, Page 741, in the Cumberland County Recorder of Deeds office. Further investigation is required in order to determine the same. 4. Admitted. 5. Admitted. It is admitted that Plaintiff has been unable to make monthly payments of principal and interest upon the mortgage. By way of further response, Defendant is in the process of selling her house in order to pay off her debt in full, but has received no cooperation from Plaintiff. 6. Denied. After seasonable the Defendant is without knowledge or information sufficient to form a belief as to the truth of the averment and the same is therefore denied. Strict proof is demanded at trial 7. Denied. After r asonable the Defendant is without knowledge or information sufficient to form a belief as to t e truth of the averment and the same is therefore denied. Strict I proof is demanded at tri 1. 8. Denied a$ a conclusion of law. 9. Denied a? a conclusion of law. 10. Denied a a conclusion of law. 11. Denied a, a conclusion of law. WHEREFORE, Pefendant demands that she is permitted to sell her home and that this Court finds in her favor by permitting an extension in order to do so. MARTSON LAW OFFICES Hubert X. Gilroy, Esquire Attorney I.D. No. 29943 Christopher E. Rice, Esquire Attorney I.D. No. 90916 10 East High Street Carlisle, PA 17013 (717) 243-3341 Date: 740"? F: \FI LE S\ 12675 \ 12675. I . ans VERIFICATION I verify that the statements contained herein are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.A. §4904, relating to unsworn falsification to authorities. Dated: r' f CERTIFICATE OF SERVICE I, Mary M. Price, a4 authorized agent for Martson Deardorff Williams Otto Gilroy & Faaller, hereby certify that a copy of the foregoing Answer was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Francis S. Hallinan, Esquire Lawrence T. Phelan, Esquire PHELAN HALLINAN & SCHMIEG, LLP One Penn Center Plaza, Suite 1400 Philadelphia, PA 19103 MARTSON LAW OFFICES y: ` B M. Price T East High Street Carlisle, PA 17013 (717) 243-3341 Dated: ?' t 1? r?, ? ?? r?? _ . :-, v-? , - -r. __ , t-.a ' .. ? ,_..? ?n --{ L; SHERIFF'S RETURN - REGULAR CASE NO: 2007-03777 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SOVEREIGN BANK ET AL VS PALMER PAMELA LYNN AKA PAMELA RICHARD SMITH , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon PALMER PAMELA LYNN AKA PAMELA PALMER SOWARD the DEFENDANT , at 0938:00 HOURS, on the 28th day of June at 1 SPRINT DRIVE CARLISLE, PA 17013 by handing to PAMELA PALMER a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 71bq'o1 1,,? Sworn and Subscibed to before me this of 2007 So Answers: 18.00 4.80 r _.. .00 10.00 R. Thomas Kline .00 32.80 06/28/2007 PHELAN HALLINAN ACHMIEG By: day Deputy Sheriff A. D. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Sovereign Bank, s/b/m to Waypoint Bank, f/k/a Harris Savings Bank 601 Penn Street Reading, PA 19601 Plaintiff vs. Pamela Lynn Palmer a/Wa Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant : Court of Common Pleas : Civil Division : Cumberland County : No. 07-3777 AND NSJW, this day of , 2007 upon consideration of i Plaintiffs Motion for Summary Judgment and Brief in Support thereof, and upon consideration of the Response, if any, filed by Defendant, the Court determines that Plaintiff is entitled to Summary Judgment as a matter of law, and it is hereby: ORDERED and DECREED that an in rem judgment is entered in favor of Plaintiff and against Defendant, Pamela Lynn Palmer a/k/a Pamela Palmer Soward, for $58,391.28 plus interest from June 21, 2007 at the rate of $8.44 per diem and other costs and charges collectible under the mortgage, for foreclosure and sale of the mortgaged property. BY THE COURT: J. PHELAN HALLINAN & SCHMIEG, LLP By: JOSEPH P. SCHALK, ESQUIRE Identification No. 91656 107 North Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 Sovereign Bank, s/b/m to Waypoint Bank, Vk/a Harris Savings Bank 601 Penn Street Reading, PA 19601 Plaintiff VS. Pamela Lynn Palmer a/k/a Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant Attorney for Plaintiff : Court of Common Pleas . Civil Division : Cumberland County : No. 07-3777 Plaintiff respectfully requests that the Court enter an Order granting summary judgment in its favor in the above-captioned matter and in support thereof avers as follows: There are no material issues of fact in dispute. 2. Plaintiff is seeking only an in rem judgment in this mortgage foreclosure action. 3. Since Defendant admitted the default in paragraph five of her Answer to the Complaint, summary judgment for Plaintiff is appropriate, as is further addressed in Plaintiffs attached Brief. 4. Defendant, Pamela Lynn Palmer a/k/a Pamela Palmer Soward, has filed an Answer to the Complaint in which she has effectively admitted all of the allegations of the Complaint, as is further addressed in Plaintiffs attached Brief In her Answer, Defendant generally denies paragraph six of the Complaint, which avers the amounts due on the Mortgage. True and correct copies of Plaintiffs Mortgage Foreclosure Complaint and Defendant's Answer are attached hereto, incorporated herein by reference, and marked as Exhibits C and D, respectively. 6. Defendant has failed to sustain her burden of presenting facts, which contradict the averments of Plaintiffs Complaint. 7. Defendant executed the Mortgage promising to repay the loan on a monthly basis. A true and correct copy of the Mortgage, which is recorded in the Office of the Recorder of Cumberland County in Mortgage Book No. 1469, Page 741, is attached hereto, made part hereof, and marked Exhibit A. A true and correct copy of the Note is also attached hereto, made part hereof, and marked Exhibit Al. 8. The Mortgage is due for the December 1, 2006 payment, a period in excess of nine months. An Affidavit confirming the default and the amount of the debt is attached hereto, incorporated herein by reference, and marked as Exhibit B. 9. The notice provisions of Act 6 of 1974 do not apply to this action because the original Mortgage amount exceeds $50,000.00, as is further addressed in Plaintiffs attached Brief. Nevertheless, Plaintiff sent Defendant a letter notifying her of her default and of Plaintiffs intent to foreclose. A true and correct copy of the letter and proof of mailing is attached hereto, made part hereof, and marked Exhibit E. 10. Defendant's application for Homeowners' Emergency Mortgage Assistance under Act 91 of 1983 was rejected by the Pennsylvania Housing Finance Agency ("PHFA"). A true and correct copy of PHFA's rejection letter is attached hereto, made part hereof, and marked as Exhibit F. 11. Plaintiff submits that its request for attorney's fees for preparing and prosecuting its foreclosure action, executing on its anticipated judgment, listing the property for sheriffs sale, and ensuring the conveyance of clear title is reasonable. Plaintiff will address this issue further in its attached Brief. 12. Defendant has the right to reinstate and/or payoff the loan up until one hour before a scheduled Sheriffs Sale. WHEREFORE, Plaintiff respectfully requests that an in rem judgment be entered in its favor for the amount due plus interest and costs as prayed for in the Complaint, for foreclosure and sale of the mortgaged property. Respectfully submitted, PHELAN HALLINAN & SCHMIEG, LLP By: ??P?-? , L13A ph P. chalk, Esquire Attorney for Plaintiff PHELAN HALLINAN & SCHMIEG, LLP By: JOSEPH P. SCHALK, ESQUIRE Identification No. 91656 107 North Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 Attorney for Plaintiff Sovereign Bank, s/b/m to Waypoint Bank, f/k/a Harris Savings Bank 601 Penn Street Reading, PA 1%01 Plaintiff VS. Pamela Lynn Palmer a/k/a Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant : Court of Common Pleas : Civil Division : Cumberland County : No. 07-3777 PLAINTIFF'S BRIEF IN SUPPORT OF ITS MOTION FOR SiTMMARV AJDGMENT I. DF.FF.NDANT'S DEFAULT UNDER THE MORTGAGE, On July 20, 1998 Defendant, Pamela Lynn Palmer a/k/a Pamela Palmer Soward, executed a Mortgage and Promissory Note in the principal sum of $62,600.00, this sum being payable in equal, consecutive, monthly installments of principal and interest of approximately $365.32 on the property at 4 Trine Avenue, Mount Holly Springs, PA 17065 (hereinafter the "Property"). A true and correct copy of the Mortgage, which is recorded in the Office of the Recorder of Cumberland County in Mortgage Book No. 1469, Page 741, is attached hereto, made part hereof, and marked Exhibit A. A true and correct copy of the Note is also attached hereto, made part hereof, and marked Exhibit Al. Defendant defaulted under the Mortgage and Note by failing to make payments due December 1, 2006 and each month thereafter. On March 19, 2007, due to Defendant default, Plaintiff mailed Defendant notice of its intention to foreclose on the Mortgage to Defendant at her last known address. Defendant, however, failed to cure the default. A true and correct copy of the notice and proof of mailing is attached hereto, incorporated herein by reference, and marked as Exhibit E. Because Defendant failed to take the necessary affirmative steps to cure the delinquency, Plaintiff was left with no alternative but to foreclose in order to recover its unjust financial losses. Accordingly, the present action was filed on June 22, 2007. To date, Defendant has not brought the account current. H. Pi.Ai VIT" IS ENTITLED TO SUMMARY.HJI)GMF.NT AS A MATTER OF LAW Summary judgment is a means to "eliminate the waste of time and resources of both litigants and the courts in cases where a trial would be a useless formality." Liles y- Ralmer, 389 Pa.Super. 451, 567 A.2d 691 (1989); First v_ 7em 7.em Temnlle, 454 Pa.Super. 548, 551, 686 A.2d 18, 20 (1996). A Motion for Summary Judgment shall be granted if the documents of record show there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Pa.R.C.P. 1035.2(1); Allen v_ M .mw ather, 413 Pa.Super. 410, 411, 605 A.2d 424 (1992); Reasel v_ New Blvd. Baking Cn. inc_, 410 Pa. Super. 591, 593, 600 A.2d 610 (1991). When deciding a motion for summary judgment, the record is viewed in the light most favorable to the non-moving party, and all doubts as to the existence of a genuine issue of material fact must be resolved against the moving party. Toy v_ Metmnnlitan Life Insurance Co-, 863 A.2d 1 (Pa. Super. 2004). Disputed facts that do not directly affect the disposition of the case are not only immaterial but do not preclude the entry of summary judgment. Pierce v_ C:om_ Pennsylvania Rd_ Of Pmhation and Parnle, 46 Pa. Cmwlth. 507, 406 A.2d 1186 (1979). The moving party bears the burden of demonstrating clearly that there is no genuine issue of triable fact. Driscoll v_ Carpenters i)istri . Council of W . ern Pennsylvania, 370 Pa.Super. 295, 536 A.2d 412 (1988); affirmed, 525 Pa. 205, 579 A.2d 863 (1990); Allen, 413 Pa.Super. at 411; Beasel, 410 Pa.Super. at 594; Hower v_ Whitmark Assoc, 371 Pa.Super. 443, 381 A.2d 524 (1988); Rnmah v_ Hygienic Sanitation Co-, 705 A.2d 841, 848 (Pa.Super. 1997). In response, the nonmoving party may not rest upon the pleadings, but must set forth specific facts demonstrating a genuine issue for trial. Phaff v_ Cremer, 451 Pa. 146, 303 A.2d 826 (1973); 111jai v_ Dennis, 431 Pa.Super. 366, 370, 636 A.2d 1130, 1132. Rule 1029(b) of the Pennsylvania Rules of Civil Procedure specifically provides: Averments in a pleading to which a responsive pleading is required are admitted when not denied specifically or by necessary implication. A general denial or a demand for proof, except as provided by subdivision (c) and (e) of this rule, shall have the effect of an admission. It is well settled that a general denial is unacceptable and deemed an admission where it is clear that the defendant has adequate knowledge and that the means of information are within the control of the defendant. Rlia v_ nlszewski, 368 Pa. 578, 84 A.2d 188 (1951). Cercone v_ Cercone; 254 Pa. Super. 381, 386 A.2d 1 (1978); City of Philadelphia v_ Hertler, 114 Pa. Cmwlth. 475, 482, 539 A.2d 468, 472 (1988). Ciroodrich-Amram 2d §1029(c)(1), p. 280. A general denial effectively manifests an admission to the facts averred in the complaint. Swift v_ Milner, 371 Pa. Super. 302, 308, 538 A.2d 28, 31 (1988); Mid ner v_ Montgnm= County Tax Claim Bureau_ 671 A.2d 285, 288 (Pa. Cmwlth. 1996). One purpose in demanding a specific denial is to enable the parties to focus upon the disputed facts and to assist the Court in defining the issues for trial. Bagley, Harting Reese v.- Shiart, 11 D&C 3d 303, 310 (Chester Co. 1979). Plaintiff submits that, in the Answer, Defendant has effectively admitted every allegation of the Complaint. Although Defendant purports to deny paragraph six of the Complaint, which avers the amounts due on the Mortgage, Defendant's averments amount to nothing more than general denials and demand for proof. Defendant generally denies the amount due under the Mortgage without reference to what she believes to be the correct amount due, or reference to any good reason to believe that the amount sought is erroneous. Unquestionably, Defendant knows specifically what payments she made on the Mortgage. Accordingly, because Defendant is charged with having sufficient knowledge upon which to base a specific denial with respect to the averments contained in paragraph six of the Complaint, a general denial is insufficient to raise a genuine issue of fact. Cercone v_ C:ercone, supra; City of 'ladelphi va H .rt_ ler, supra. The Pennsylvania Superior Court has held that, in order to raise a genuine issue of fact, defendants may not rest on the pleadings, but must sustain the burden of presenting facts to counter Plaintiffs averments. New York Guardian Mortgage v- DiPtzel, 524 A.2d 951 (Pa. Super. 1987). WasbingWn Federal Savings a I nan Assnciatinn v_ Stein, 515 A.2d 980 (Pa. Super. 1986). A party will not be able to rely on 1029(c) and be excused from answering averments based on a lack of information where that party has sufficient information at its disposal to answer such allegations. Commw_ by Preate v_ Rainbow Associates, 138 Pa. Commw. 56, 587 A.2d 357, 358 (1991). The Pennsylvania Superior Court reiterated this principle in another mortgage foreclosure case. The Court held that the mortgagors' general denials in their answers to the Complaint must be considered admissions. First Wisconsin Thist Co- v_ Strausser, 439 Pa.Super. 192, 653 A.2d 688 (1995). The Court reasoned that the only persons with knowledge of the amount due, besides the mortgage company, would be the mortgagors. Therefore, if defendant mortgagors do not plead specific facts in response to the allegations in the Complaint regarding the default and the amount due, the defendants are deemed to have admitted the allegations, and summary judgment for the mortgage company is proper. First Wisconsin Trust Co- v_ Strausser, supra. In determining if an answer is a general denial, the Court must examine the pleadings as a whole. Commw_ by Preate,supra, at 61, 587 A.2d 357, 360 (1991). A review of the pleadings as a whole in the instant case reveals that Defendant has failed to sustain her burden of presenting facts, which contradict the elements of Plaintiffs claim. Defendant's general denial of the amounts due should be viewed as admissions by this Honorable Court. III. AMOUNT OF THE IN RF,M.HTDGMF,NT The within case is a mortgage foreclosure action, the sole purpose of which is to take the Defendant's mortgaged property to Sheriffs Sale. Pennsylvania law makes clear that an action in mortgage foreclosure is strictly in rem and does not include any personal liability. Newtown Village Partnership v_ Kimmel, 424 Pa. Super 53, 55, 621 A.2d 1036, 1037 (1993). Signal Cnnsumer Discount Company v_ Rahnccin_ 257 Pa. Super 101, 109, 390 A.2d 266, 270 (1978). Pennsylvania Rule of Civil Procedure 1141(a). However, Pennsylvania law requires that the foreclosure action demand judgment for the amount due. Pa.R.C.P. 1147(6). The purpose of the dollar amount in the in rem judgment is only for bidding at the Sheriffs Sale. In the event that a third party real estate speculator were to bid on the mortgaged property at the Sheriffs Sale and become the successful purchaser, Plaintiff would receive the amount of the in rem judgment from the Sheriff, while the third party purchaser would obtain a deed to the property. Accordingly, the amount of the in rem judgment has no bearing or impact on the Defendant. IV. SUMMARY AMGME.NT IS APPROPRIATE SINCE DEFENDANT ADMITTED THE, DE.FAIJLT In paragraph five of her Answer to the Complaint, Defendant specifically admitted that the loan is due for the December 1, 2006 mortgage payment. The Pennsylvania Superior Court has held that summary judgment is appropriate in a mortgage foreclosure action when the mortgagor admits he is delinquent in mortgage payments. Cunningham v_ McWilliams, 714 A.2d 1054 (1998). New York Guardian Mortgage C'nrn_ v- Dietzel, .t_zel, 362 Pa. Super. 426, 524 A.2d 951, 952 (1987). 22 Standard Pennsylvania Practice 2d § 121:69 (1995). In addition, the Superior Court has held that the fact that the mortgagor never admitted the amount of the indebtedness does not prevent the entry of summary judgment in mortgage foreclosure. Landau v_ Western Pennsylvania National Rank, 445 Pa. 217,282 A.2d 335 (1971); Cunningham v_ McWili ms, 714 A.2d at 1057. Pennsylvania law requires that a foreclosure judgment be entered for a sum certain. Chi ''cnm Mortgage, Inc_ v_ Mmisville H mn nn Village Ltd- Partnership, 443 Pa. Super. 595, 601, 662 A.2d 1120, 1123 (1995). Chase Hnme Mortgage v_ Gnnd, 370 Pa.Super. 570,537 A.2d 22 (1988). Nevertheless, an action in mortgage foreclosure is strictly an in rem proceeding. Dietzel, 524 A.2d 951, 953. The purpose of a judgment in mortgage foreclosure is solely to effect a judicial sale of the mortgaged property. Dietzel, 524 A.2d 951, 953. Meen Realty Co- v_ Burns, 414 Pa. 495, 200 A.2d 869 (1964). Accordingly, the amount of the foreclosure judgment is irrelevant to Defendant. If Defendant reinstates or pays off the loan, she will pay the actual amount due on the loan as of the date of the reinstatement or payoff, not the judgment amount. The dollar amount in the judgment is only used in the rare circumstance of a third party bidder purchasing the property at sheriff sale. A third party bidder is usually a real estate investor. In this situation, the Sheriff pays the mortgagee the amount of the in rum judgment instead of deeding the property to the mortgagee. Mortgagors do not bid on the property at Sheriffs Sale. Rather, if a mortgagor wants to save his property, he will reinstate or pay off his loan. Therefore, since the dollar amount of the in rem judgment has no effect on mortgagors, the Pennsylvania Supreme Court has decided that summary judgment is appropriate when a mortgagor admits his default, even if he does not admit the amount due on the loan. Landau v_ Western Pennsylvania National Rank, 445 Pa. 217,282 A.2d 335, 340 (1971). Since Defendant admitted her default in the within case, summary judgment for Plaintiff is appropriate. A denial of summary judgment would mean listing this case for trial, in a court system, which is already overburdened with an excess of trials. Furthermore, a trial would be a useless formality since Defendant admitted her default and she does not know how much money she owes on the loan. V. ATTORNEY FEES AND COSTS ARE. REASONABLE. As to the attorney fees recited in paragraph six of the Complaint, it should be noted that paragraph twenty-one (21) of the Mortgage clearly indicates that Defendant is liable for an attorney fee, costs of suit, and costs of title evidence if Defendant defaults on the loan. The attorney fee claimed in Plaintiffs complaint is less than five percent of the principal balance due on the loan. When Plaintiff was preparing its foreclosure Complaint, it could not know how much the attorney fees and costs would be upon completion of the foreclosure action. Plaintiff could not know whether the Defendant would contest the case and, if so, how extensively. Accordingly, Plaintiff used Pennsylvania case law as a guide. Attorney fees are enforced in order to compensate the Plaintiff for the reasonable and necessary expenses of collection. The Superior Court has held that it is inequitable for a mortgagee to expend sums of money for attorney fees in order to collect sums owed to him. Eastgate F.ntemrrices,Tnc_ v_ Rank and T ist Company of Old York Road, 236 Pa.Super. 503, 345 A.2d 279 (1975). As a general rule, attorney fees, which are reasonable, will be permitted by the Court. A requested fee of five percent of the outstanding principal balance has been granted by the Court. Pennsylvania Courts have long and repeatedly concluded that such a 5% provision is reasonable and enforceable. Robinson v_ Loomis_ 51 Pa. 78 (1865); First Federal Savings and Tom Association v_ Street Road SboMing Center, 68 D&C 2d 751, 755 (1974). It is important to note that the attorney fees called for in the Mortgage are owned by the mortgagee, not the attorney. They are not limited to the actual attorney fees but cover also the extra charges made necessary because the mortgagor failed to meet his obligation. Foulke v_ Hatfield Fair Grounds Rawmr,js, 196 Pa.Super. 155, 173 A.2d 703 (1961); Hamer v_ Consolidated Rubber Co_, 284 Pa. 444, 131 A. 356 (1925). In Federal Land Rank of Baltimore v_ Feiner, the Superior Court held that an attorney fee of 10% of the original loan amount was not unconscionable. 410 A.2d 344 (Pa. Super. 1979). The Superior Court cited Feiner in confirming that an attorney fee of ten percent included in the judgment in a mortgage foreclosure action was reasonable. Citicorp v_ Morrisville Hamnim Realty . 662 A.2d 1120 (Pa.Super. 1995). 71 Importantly, Plaintiff clearly outlined how Defendant could avoid paying Plaintiffs attorney fees in the Notice of Intention to Foreclose Mortgage, which was mailed to Defendant. Defendant, however, failed to take the necessary affirmative steps to cure the delinquency, but rather has opted to litigate, which has resulted in more attorney fees. Additionally, Plaintiff submits that the amount demanded for costs of suit and title search in Plaintiffs Complaint is neither excessive nor unreasonable. Moreover, the reasonableness of attorney fees does not create a genuine issue of material fact, which precludes the entry of summary judgment. First National Rank and Tnist Co_ of Newton v_ Fmrico, 40 D&C 3d 228 (1985). Importantly, Plaintiff recognizes this Honorable Court's equitable authority to set attorney fees and costs as it deems reasonable. Therefore, there is no issue of material fact regarding attorney fees. VI. PLAINTIFFS MORTGAGE. FORECLOSURE ACTION DOES NOT COMF. UNDER ACT 6 OF 1974 As averred in paragraph ten of the Complaint, the notice provisions of Act 6 of 1974 do not apply to this case. Section 403(a) states: Before any residential mortgage lender may accelerate the maturity of any residential mortgage obligation, commence any legal action including mortgage foreclosure to recover under such obligation ... such person shall give the residential mortgage debtor notice of such intention at least thirty days in advance as provided in this section. (emphasis added.) 41 P.S. §403(x). Section 403(a) applies only to residential mortgages. Section 101 defines a residential mortgage as, "an obligation to pay a sum of money in an original bona fide principal amount of fifty thousand dollars ($50,000) or less ...". The Act 6 notice provision (§403) does not apply to the within case because the original loan amount exceeded $50,000.00. See Anderson Contracting Company v_ naiigb_417 A.2d 1227 (Pa.Super. 1979). Nevertheless, it should be noted that Plaintiff sent Defendant notice of its intention to foreclose on the Mortgage, which outlined the necessary steps Defendant should take to avoid foreclosure. A true and correct copy of the Notice of Intention to Foreclose Mortgage letter and proof of mailing is attached hereto, incorporated herein by reference, and marked as Exhibit E. Because Defendant failed to take the necessary affirmative steps to bring the loan current, Plaintiff had no alternative but to commence foreclosure proceedings. VII. DEFENDANT APPLi _ATION FOR ASSISTANCE, UNDER ACT 91 OF 191LI WAS RF Wr-TE.D BY THE PENNSIffNANIA HOUSING FINANCE, AGENCY Defendant's application for the Homeowners' Emergency Mortgage Assistance Program (hereinafter "HEMAP") under Act 91 was rejected by the Pennsylvania Housing Finance Agency (hereinafter "PHFA"). A true and correct copy of PHFA's rejection letter is attached hereto, incorporated herein by reference, and marked as Exhibit F. Act 91 of 1983 requires that notice be sent by the mortgagee to the delinquent mortgagor by first class mail addressed to her last known address(es). 35 P.S. § 1680.403c(a). The statute specifically provides that notice pursuant to the statute shall be deemed received on the third business day following the date of the mailing of the same. 35 P.S. §1680.403c(e). Plaintiffs Act 91 Notice was sent to Defendant by regular mail on March 19, 2007. The letter notice contained the name, address and telephone number of Plaintiffs representative whom Defendant could have contacted to discuss her delinquency and the possibility of qualifying for HEMAP. Upon receipt of the Act 91 Notice, Defendant applied for assistance, but was rejected by PHFA. A true and correct copy of PHFA's rejection letter is attached hereto and marked asd Exhibit F. Obviously, if PHFA rejected Defendant's application for HEMAP, Defendant must have filed an application after receiving Plaintiffs notice. Moreover, since Defendant applied to PHFA for assistance, the purpose of Act 91 has been satisfied. Defendant has had the opportunity to have her application considered. Thus, Defendant received consideration of her application for HEMAP, and is now stopped from asserting that Plaintiff did not comply with all of the notice provisions of Act 91 of 1983. Plaintiff submits that it has taken the appropriate legal action, in accordance with the terms of the Mortgage, to enforce its rights. Additionally, Plaintiff submits that PHFA would now consider the homeowner ineligible for assistance due to Defendant's failure to satisfy the procedural time requirement to file an appeal. VIII. CONCLUSION The purpose of the summary judgment procedure is to prevent vexation and delay, improve the machinery of justice, promote the expeditious disposition of cases and avoid unnecessary trials when no genuine issue of material fact is raised. In making its determination, the Court must accept as true all properly pleaded facts, as well as all reasonable inferences, which might be drawn from them. nompson y- Wagon, 379 Pa.Super. 115, 535 A.2d 1177 (1988), affirmed, 527 Pa.330, 591 A.2d 703 (1991). The Court must restrict its review to material filed in support of and in opposition to the Motion for Summary Judgment, and to uncontroverted allegations in the pleadings. Pa.R.C.P.1035. Overly v_ Kass, 382 Pa.Super. 108, 545 A.2d 970 (1989). Plaintiff submits that it has demonstrated sufficient facts to warrant summary judgment in its favor. Defendant executed the Mortgage knowing that she would be responsible for the payments. Defendant has admitted her default in her Answer to the Complaint. Plaintiff has provided an affidavit that Defendant is in default and set forth the amount owed by Defendant. Therefore, Plaintiff maintains that it has produced sufficient evidence to establish a prima facie case for mortgage foreclosure. Once Plaintiff has satisfied its burden, Defendant has a responsibility to demonstrate facts, which would create a genuine issue for trial. Phaff, supra. Defendant has failed to sustain her burden of presenting facts, which would contradict the elements of Plaintiffs claim. Plaintiff respectfully submits that the allegations of the Complaint are, in fact, uncontroverted. Defendant has had use of the Property rent-free at Plaintiffs expense long enough. Defendant's Answer has been interposed for the purpose of delay only. Plaintiff requests that its Motion be granted so that it can recover the unjust financial losses it has incurred to date. WHEREFORE, Plaintiff respectfully requests that an in rem judgment be entered in its favor for the amount due with interest and costs as prayed for in the Complaint, for foreclosure and sale of the mortgaged property. Respectfully submitted, PHELAN HALLINAN & SCHMIEG, LLP By: P Lkax, pJastp'h P. Schalk, Esquire Attorney for Plaintiff Joseph P. Schalk, Esquire, hereby states that he is the attorney for Plaintiff in this action, that he is authorized to make this verification, and that the statements made in the foregoing Motion for Summary Judgment and Brief are true and correct to the best of his knowledge, information, and belief. The undersigned understands that this statement herein is made subject to the penalties of 18 Pa.C.S. §4904 relating to unsworn falsification to authorities. Date VW nhp,?CkakL pJQ4ph P. chalk, Esquire Attorney for Plaintiff EXHIBIT A 14 7 7 '98 JUL 22 AM 9 09 5 D7y (Space Above This Une For Recording Data) go 6q l MORTGAGE THIS MORTGAGE-(•Security Instrument') is'yfveh on ....."X ......................... 9.Q....................................................................... ........... 1 ....... . The mortgagor Is .............................. .PAtIl0111I.P.Sart'KiW............................................................................................... .......................................... .......------ -- ---- .................................................................................................................................................................................................................................... ('eorrorwrl. This Security Instrument is given to ........................ .................................................................................................................................... which is organhed and existing under the laws of .......,Pl?rwrAwk ................................ and whose address is ...................................................................... .......................P.Q..;'c>x.x711.........................................klartlatxttD..?A ..?z1 Q .........................:................................................................ Borrower owes Lender the principal sum of ..................?(XQ(.?V!(f?.??.r HIAOf?fJ 1raQ........................................................C ?........ ................................................................................................................................................................... Dollars (U.S. s .....tQ.QQ............................. ). This debt is evidenced by Borrower's note dated the same dab as this Security Instrument ('Notel, which provides for morNhly paymm* with the full debt. If not paid earlier, due and payable on ....DA/111 120 .................»........................................... This Sscurity Instrument secures to Lender: (a) the repayment of the debt evidenced by the Nob, with Interest, and all renewals, extension and modifications of the Nob; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of ihle Security Instrument; and (o) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lander the following described property located In .........................CMINJI11" ........................... County, Psnnslflmia: See attached legal description which has the address of ........4..T.ring-AY.H .................................................................................. .................Ash.k?Q?J!.r?Att plQs...,.......................... , jStraatj pty Pennsylvania .......I c M .................................. ('Property Address'): iVOdal TOGETHER WITH all the improvements now or hereafter erected on the property, and an easements. appurtenances, and fixtures no, or hereafter a part of the property. All replacements and additions shall also be covered by this Sam^ Instrument All of the foregoing Is referred to in this Security Instrument as the *Property.' BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record, THIS SECURITY INSTRUMENT combines uniform covenants for national use and non -undorm covenants with limbed variations by jurisdiction to constitute a uniform security Instrument covering real property. PENNSYLVANIA-SYgne Famey-FNMA/FHLMC UNIFORM INSTRUMENT Page 1 of 5 pages Form 3039 9/90 PAOI.FRM (03/91) FITECti BOOK. ,W PAG14 34-1 (UNIFORM COVENANTS. Borrower and Lender covenant and agree as t slows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due" principal of and interest on the debt evidenced by the Norte and any prepayment and We charges due under the Note. . 2. Funds for Taxes and Insurance. Subject to applicable law or to a wditn waiver by Lender, Borrower shall pay to tender on the day monthly payments are due under the Note, until the Note is paid In full, a sum rFundsl for (a) yearly taxes and asassnuMS which may attain priorty over this Security Instrument as alien on the Property; lb) yearly leasehold payments or ground refs on the Property, If any, (o) yearly hazard or property insurance premiums; (d) yearly flood in urns premiums, if any; (a) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8. In lieu of the payment of mortgage insurance premiums. These items are called 'Escrow Items.' Lender may, at any time, collect and hold Funds In an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. S 2110flet seq. ('RESPAJ, union another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the leaser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future 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 entity (including Lender, If Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Nome. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow home, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this ban, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lander may agree In writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional searity for all puns secured by this Security Instrument. If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds hold by Lender at any time Is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower In writing, and, in such case Borrower shalt pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. M, under paragraph 21, Lander shall acquire or sell the Property, Lander, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs i and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note. 4. Charges; Liens. Borrower snail pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground refs, If any. Borrower shall pay thew obligations In the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lander all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lander receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower. (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lander (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lion; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lion to this Security Instrument. fi Lender determines that any pan of the Property is subject to a lien which may attain priority over this Security Instrument, Lander may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard or 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 oowrage' and any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at lander's option, obtain coverage to protect Lender's rights In the Property In accordance with paragraph 7. All insurance policies and renewals shall be acceptable to Lender and shall Include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the Insurance carrier and Lender. Lender may make proof of loss If not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened 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 any excess paid to Borrower. If Borrower abandons the property, or doss not answer within 30 days a notice from Lander that the insurance carrier has offered to setae a claim, then Lender may collect the Insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree In writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to In paragraphs 1 and 2 or change the amount of the payments. H under paragraph 21 the Property Is aoquired by Lender, Borrower's right to any Insurance policies and proceeds revAng from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. PA011.FR1t.(o3/9J) FTECH Page 2 of 5 pages Form 3030 9/90 e001(1469ra? 742 ry s. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; L.eas8hOlds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty 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 shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrows( shall not destroy, damage or impair the Property, allow the Property to deteriorate, or oortlmit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, Is begun that In Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing to action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, preludes forfeiture of the Borrower's Interest In the Property or other material Impairment of the lien created by this Security Instrument or Lender's security Interest. Borrower shall also be in default If Borrower, during the ban application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the pmvisons of the tease. it Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect tender's rights in the Property (such as a proosedirig in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), than tender may do and pay for whatever is necessary to protect the Value of the Property and Lender's rightsin'the Property. Lenders actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7. Lender does not have to do $o. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear Interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by tender lapses or ceases to be In effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage Insurance previously in effect, from an alternate mortgage insurer approved by Launder. If substantially equivalent mortgage insurance coverage Is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage Insurance premium being paid by Borrower when the Insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lander, if mortgage insurance coverage pn the amount and for the period that Lender requires) provided by an insurer approved by Lander again becomes available and Is obtained. Borrower shall pay the premiums required to maintain mortgage Insurance in effect, or to provide a Was reserve, until the requirement for mortgage Insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation: The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a parts] taking of the Property in which the fair market value of the Property Immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the taking, unless Borrower and tender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and tender otherwise agree in waiting or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by tender to Borrower that the condemnor offers to make an award or 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 proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modif oation of amortization of the sums secured by this Security Instrument granted by Lender to any successor in Interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in Interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 12. Successors and Assigns Bound; Joint and Several Liabliity, Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of tender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgaige, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) Is not personally obligated to pay the sums secured by this Security Instrumerht; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges. H the loan secured by this Security Instrument is subOct to a law which sets maximum ban charges, and that law is finally Interpreted so that the interest or other ban 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 sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to male this refund by PA012.FRM (03,91) MECH Page 3 of 5 pages Form 3079 919o eoox1469raciy T43 rsgusjng the principal owed under the Note or b making a direct''% rcower. If a refund reduces principal, the reduction will be Y ?o treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided for in this Security Instrument shag be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice chap be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by fist cuss mail to Lender's address stated herein or any other address Lendesdesignates by notice to Borrower. Any notice provided for in this Security instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severabillty. This Security Instrumem shag be governed by federal law and the law of the jurisdiction in which the Property is located. In the went that any provision or clause of tile 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 affect without the oonlpctlng provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 1 S. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. ff all or any part of the Property or any Interest In it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Bonower Is not a natural person) without LsehWrs prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exerclses this option, Lender shall give Borrower notice of sooelerapon. The notice shall provide a period of not leas than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lander may Invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower's Right to Reinstate. N Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of, (a) S days (or such other period as applicable law may specify for reinstatement) before We of the Property pursuant to any power of sale contained In this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borravver: (a) pays LatWer all sums which then would be due under Oils Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreernerrts; (o) WYs all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure that the pen of this Security Instrument, Lender's rights In the Property and Borrowers the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate "I not apply In the case of acceleration under paragraph 17. 19. Sale of Note; Change of Loan Servicer. The Note or a partial interest In the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result In a change in the entity (known as the 'Loan Serviowl that collects monthly payments due under the Note and this Security Instrument, Thera also may be one or more changes of the Loan Swvlow unrelated to a sale of the Note. If there is a change of the Loan Service, Borrower will be given written notice of the change in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the now Loan Servlow and the address to which payments should be made. The notice will also contain any other information required by applicable law. 20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that Is In violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quandges of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. Borrower shall promptly give Lender written notice of any investigation. claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. it Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remodiation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 20, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pestioldes and herbicides volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used In this paragraph 20, "Environmental Law" means federal laws and laws of the jurisdiction where the Property Is located that relate to health, safety or errvironmental protection. NON-UNIFORM COVENANTS. Borrower and Lander further covenant and agree as follows: 21. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrowers breach of any covenant or agreement In this Security Instrument (but not prior to acceleration under paragraph 17 unless applicable law provides otherwise). Lender shall notify Borrower of, among things: (a) the default; (b) the action required to chine the default; (c) when the default must be cu d; and (d) that failure to cure the default as specified may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property. Lender shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceedgg the non-existence of a default or any other defense of Borrower to acceleration and foreclosure" If the default Is not cured as specified, Lender at Its option may require Immediate payment in fun of all sums secured by this Security Instrument without further demand and may foreclose this Security Instruif lent by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided In this paragraph 21, including, but not limited to, attorneys' fees and costa of title evidence to the extent permitted by applicable law. 22. Release. Upon payment of all sums secured by this Security Instrument, this Security Instrument and the estate conveyed shall terminate and become void. After such occurrence, Lender shag discharge and satisfy this Security Instrument without charge to Borrower. Borrower shall pay any recordation costs. 23. Waivers. Borrower, to the extent permitted by applicable law, waives and releases any error or defects in enforce this Security Instrument, and hereby waives the benefit of proceedings to any present or future laws providing for stay of execution, sxtsnsbn of time, exemption from attachment, levy and sale, and homestead exemption. PA013.FRM,(03191) Fn H Pepe 4 Of 5 pages Form 3038 SAO BOOKU69PA% 794: 24. Reinstatement Period. Borrower's time to reinstate provided in paragrapOg shall extend to one hour prior to the commencement of bidding at a sheriff's sale or other sale pursuant to this Security Instrument. 25. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to aoquire title to the Ropsrty, this Security Instrument shall be a purchase money mortgage. 26. Interest Rate After Judgment. Borrower agroes that to Interest rate payable after a judgment Is entered on the rate oMn an action of mortgage foreclosure shall be the rate payable from time to time under the rote. 27. Riders to this Security Instrument, tl one or more riders are executed by Borrower and recorded together with this security Instrument, the covenants and agreements of each such rider shall be incorporated Into and shall amend and wpplereent the oo wmft and agreements of this Security Instrument as if the rider(s) were a pert of this Security Inetrument. (Check applicable pox(es)) ? Adjustabis Rate Rider ? Condominium Md. ? 1-4 Family Rfuler ? Graduated Payment Rider ? Planned Unit Davslopment mar ? W.-My payment M. ? Balloon Rider ? Rate Improvement Rider ? Second Hone Ruder L_J Other(s) (specify) BY SIGHING BELOW, Borrower accepts and agrees to the terms and covenants contained In this Security Instrument and In any rkler(s) executed by Borrower and recorded with h. Witnetles: [Space Below This Line For Acknowledgment] Pamela P Soward .Borrower Social Security Number ....?eY... !.,,.....Y g y6 ........................... .................................................................................................. ..(Sad) -Borrower Social Security Number ........................................................ ................. .................................................................................................. ..(Sec) 4kwm w Social Security Number ......................................................................... .................................................................................................. ..(Sad) -Borrower Socd Securty Number STATE OF Pennsylvania ; SS. COUNTY OF Cumberland AND NOW, this 20th day of July, 1998, before me, the undersigned officer, personally appeared Pamela P. Soward, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that she executed same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. Notary blic F4ch" ? Car?N Baoum>ber?d h1y My commission Expires Oct. k"200o twnber, Pwv*W rft AstoCON of NdW>ra PA014.FRM (03/91) F'MCH Form 3039 n/9o Boots X469 PAGE 745 LEGAL DESCRIPTION ALL THAT CERTAIN lot or piece of ground in the Borough of Mount Holly Springs, Cumberland County, Pennsylvania, more particularly bounded and described pursuant to a land subdivision of Constantions J. Mallios dated August 1989, revised through November 14, 1989, and recorded in Cumberland County Plan Book 59, at page 117, bounded and described as follows: BEGINNING at an iron pin at the comer of Lot No. 2 and 3 on the above referred to plan; thence South 89 degrees 45 minutes 00 seconds East 114.15 feet to an iron pin at land now or formerly of United Telephone Company of PA; thence by said land South 00 degrees 15 minutes 00 seconds West 24.00 feet to an iron pin at comer of Lots No. 1 and 2 on the above referred to subdivision plan; thence North 89 degrees 45 minutes 00 seconds West 114.15 feet to an iron pin at comer of Lots No. 1 and 2 of the above referred to plan; thence North 00 degrees 15 minutes 00 seconds East 24.00 feet to an existing iron pin at comer of Lots No. 2 and 3 of the above referred to subdivision plan the point and place of BEGINNING. Containing 2,740 square feet and designated as Lot No.2 thereon and having the address of 4 Trine Avenue. BEING the same premises which the Housing Authority of the County of Cumberland, by deed dated and recorded even date herewith, granted and conveyed unto Pamela Palmer Soward, Mortgagor herein. Jr »"' 1tlf' . k F State of pennsyWan? 1 `. r 1 86 County of cumberiend J w pecorded i the office for ofthe recording 1 Deeds 'r and County, in VoT."' with ?? of y tC Cad' , PA BOOK U69 P NE 146 EXHIBIT Al w ` ? ! t 1? ? ^ ? t- F T'?'Y _ ' J 2 C? fi_ I '' '?• F 4 1.E "`.?F `!x' 4 3 y 5?'i; "?..L ? _ 7 ? ? y' NOTE { s> .:: ; Carlisle Perutsykv . lode] ply] Ise] 4 Trine Ave Mt Holy Springs, PA 17066 (Prapary Addrdsa] 1. BORROWER'S PROMISE TO PAY In refuse for a loan that I have received, I promise to pay_ (this amount is called 'principal), plus interest, to the order of the Lender. The Lender is =WMIM Bliii* 1 understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who Is entitled to reown pay. ments under this Note is called the 'Note Holder.' 2. INTEREST ti Interest will be charged on unpaid principal until the full amount of principal has been paid. I wig pay interest at a yearly raMR %, The interest rate required by this Section 2 is the rats I will pay both before and after any default described in Section 60 of this Note. 3. PAYMENTS (A) TIME AND PLACE OF PAYMENTS I will pay principal and interest by making payments every month. I will make my monthly payments on the NM day of each month beginning on SgXenter 1 1998 I will make these payments every month until 1 have paid all of the principal and NNerera es described below that I may owe under ihle Note. My monthly payments will be applied to ktlerest before grin F. I still owe amounts under this Note, l will pay those amounts in fug on that date, which is called the 'mattaity data " I will make my monthly payments at P.O. BOX 1711 Harrisburg PA 17105 or at a dfflerent piece N required by the Note Holder. (B) AMOUNT OF MONTHLY PAYMENTS My monthly payment will be In the amount of U.S. $ 365.32 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due. A payment of principal only Is known as a'prepayment." When I make a prepayment, l will tell the Note Folder in writing that I am doing so. 1 may make a full prepayment or partial prepayments without paying any prepayment charge. The Note Holier will use all of my prepayments to reduce the amount of principal that I owe under this Note, 01 make a partial prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees In writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, Is finally Interpreted so that the interest or other loan charges ool. looted or to be collected in connection with this kart exceed the permitted limits, Own: p) any such ben charge" be reduced by the amount necessary to reduce the charge to the permitted limit; and QQ any sums already collected from me which exceeded permitted limits will be re- funded to me. The Note Folder may choose to make this refund by reducing the principal I owe under this Now or by making a direct payment to me. N a refund reduces principal, the reduction will be treated as a partial prepayment. 8. BORROWER'S FAILURE TO PAY AS REQUIRED (A) LATE CHARGE FOR OVERDUE PAYMENTS N the Note Folder has not received the full amount of any monthly payment by the end of 15 calendar days alter the date it is due, I will pay a late charge to the Note Folder. The amount of the charge will be 5.0100 % of my overdue payment of principal and In torost. I will pay this late charge promptly but only once on each late payment. (B) DEFAULT If I do not pay the full amount of each monthly payment on the date It is due, I will be in default. (C) NOTICE OF DEFAULT If I am in default, the Note Folder may send me a written notice telling me that N I do not pay the overdue amount by a certain data, the Note Folder may require me to pay immediately the full amount of principal which has not boon paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is delivered or mailed to me. (D) NO WAIVER BY NOTE HOLDER Even if, at a time when I am in default, the Note Folder does not require me to pay immediately in fug as described above, the Note Folder will still have the right to do so H I am in default at a later time. (E) PAYMENT OF NOTE HOLDER'S COSTS AND EXPENSES If the Note Folder has required me to pay immediatsly, in fug as described above, the Note Holder will have the right to be paid back by me for all of its casts and expenses in enforcing this Note to the extern not prohibited by applicable law. Those expenses kkduds, for example, reasonable attorney's fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address If I give the Note Holder a notice of my diferent address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address If I am given a notice of that different address. MULTISTATE FIXED RATE NOTE-Skgk Famdy-FNMA/FHLMC Uniform Inmrumwd Papa 1 of 2 Form 3200 12/63 1004.FRM (01)86) FITSCH 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE H more than one person signs this Note, each person is fully and personally obligated to keep ati of the promises made in this Note, in- cluding the promise to pay the full amount owed. Any person who Is a guarantor, surety or endorser of this Note Is also obliptlad to do ft- things. Airy person who takes over these obligations, Including the obligations of a guarantor, rarefy or endorser of titis Mots, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce Its rights under flat Noe against each person WtMuatiy or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this No%. 9. WAP4ERS I and any other person who has obligations under this Note welvs the rights of presentment and notice of dishonor. 'ProssntnmW means the right to require the Note Folder to demand payment of amounts due. 'Notice of dishonw* means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform ketrumeW with listed variations In some Judediotlons. In addition to the probotbne given to the Note Folder under this Note, a Mortgage, Deed of Trust or Security Deed Me "Security Instrument', dated the same dab as this Nob, protects the Note Folder from possible losses which might result H I do not beep the promises which 1 make in this Nobs. That Security instrument describes how and under what conditions 1 may be required to make immediate payment In fill of all amounts I owe under. this Note. Some of than oonndilions are desoribsd as follows., Transfer of the Property or a Beneficial Interest in Borrower. H ail or any part of the Property or any Interest In It is sold or transerred (or H a beneficial inww in Borrower Is sold or transferred and Borrower Is not a natural person) without Lender's pd- written consent Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Under H exercise is prohibited by federal law as of the date of this Security Instrument. H Lender exercises this option, Lender shall ghe Borrower notice of acceleration. The notice Shan provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. H Borrower falls to pay time sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without futher notice or demand on Borrower. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. witness waness witness wimess 4,4 Pamela P Soward eorrewer _ (sus) 80"Dwer -(5-0 9orower (sell) llorrower (Sign WOW only) Page 2 of 2 10041.FRM (01/98) Fn'ECH EXHIBIT B I PLAINTIFF'S AFFIDAVIT IN SUPPORT OF ITS MOTION FOR SUMMARV AJDGMF.NT STATE OF PE ),'J ryl- V ? 4 / 4 ,??2kS COUNTY OF ) ss. RU$S21.. &w4eing duly sworn according to law, deposes and says: 1. I am employed in the capacity of A,eQg,/,pggg mat Sovereign Bank, mortgage servicing agent for Plaintiff in the within matter. 2. In said capacity, I am familiar with the account that forms the basis of the instant foreclosure action and am authorized to give this Affidavit. 3. I am the custodian of records for the within matter. 4. All proper payments made by Defendant have been credited to Defendant's accounts. 5. Defendant's mortgage payments due December 1, 2006 and each month thereafter are due and unpaid. 6. The amounts due on the mortgage were correctly stated in the Complaint as follows: Principal Balance $54,307.23 Interest $1,966.52 November 1, 2006 through June 21, 2007 (Per Diem $8.44 Attorney's Fees $1,250.00 Cumulative Late Charges $109.56 July 20, 1998to June 21, 2007 Cost of Suit and Title Search $750-00 Subtotal $58,383.31 Escrow Credit $0.00 Escrow Deficit $7.97 TOTAL $58,391.28 7. Defendant has failed to reinstate the account or offer any reasonable solution to cure the arrears on the past due mortgage payments. 8. Plaintiff provided mortgagor with a Notice of Intention to Foreclose Mortgage, but Defendant did not take the necessary affirmative steps to avoid foreclosure. 9. Plaintiff properly accelerated its mortgage to protect its interests. Name: ,1?4?u ?g??o??? Title: Ag2rZLO W &V Itb Ol . Sovereign Bank SWORN TO AND SUBSCRIBED BEFO E ME THIS ?_ DAY OF uS ,2007 4M.", d, NOTARY PUBLIC MDIIMM i??1 llbla File Name and Number: Pamela T 3mn Palmer a/k/a Pamela Palmer Snward and ,f.a.,,,aR: ?;;; ?? ? , n.?tr :fP?l Mn??nl?;vp ? ,.?..,," 44.H'??r ? 1 1S^r`^e? s?mA EXHIBIT C •" S ? J tf+ LCi4. ? ? 4 4 ? ? Q ? t ?jy f . 77, j .1 12 n ?•a o W 5 ?J47 •? W PHELAN HALLINAN & SCHMIEG, LLP LAWRENCE T. PHELAN, ESQ., Id. No. 32227 FRANCIS S. HALLINAN, ESQ., Id. No. 62695 DANIEL G. SCHMIEG, ESQ., Id. No. 62205 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHIA, PA 19103 (215) 563-7000 156436 SOVEREIGN BANK, SB/M TO WAYPOINT BANK, F/K/A HARRIS SAVINGS BANK 601 PENN STREET READING, PA 19601 Plaintiff V. PAMELA LYNN PALMER A/K/A PAMELA PALMER SOWARD 4 TRINE AVENUE MOUNT HOLLY SPRINGS, PA 17065 Defendant ATTORNEY FOR PLAINTIFF COURT OF COMMON PLEAS CIVIL DIVISION TERM NO. 6'I - 311/ 6, u c C" 7? CUMBERLAND COUNTY CIVIL ACTION - LAW COMPLAINT IN MORTGAGE FORECLOSURE ATTORNEY FILE COP'S SASE RETUM File #: • 156436 'W'e hepa?- whey ??? ??aQ?ec? ? CRY pf ?e i?a6`+?1 Yil ?? NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (800)990-9108 File #: 156436 IF THIS IS THE FIRST NOTICE THAT YOU HAVE RECEIVED FROM THIS OFFICE, BE ADVISED THAT: PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. § 1692 et seq. (1977), DEFENDANT(S) MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF. IF DEFENDANT(S) DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL OBTAIN AND PROVIDE DEFENDANT(S) WITH WRITTEN VERIFICATION THEREOF; OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. LIKEWISE, IF REQUESTED WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL SEND DEFENDANT(S) THE NAME AND ADDRESS OF THE ORIGINAL' CREDITOR, IF DIFFERENT FROM ABOVE. THE LAW DOES NOT REQUIRE US TO WAIT UNTIL THE END OF THE THIRTY (30) DAY PERIOD FOLLOWING FIRST CONTACT WITH YOU BEFORE SUING YOU TO COLLECT THIS DEBT. EVEN THOUGH THE LAW PROVIDES THAT YOUR ANSWER TO THIS File #: 156436 COMPLAINT IS TO BE FILED IN THIS ACTION WITHIN TWENTY (20) DAYS, YOU MAY OBTAIN AN EXTENSION OF THAT TIME. FURTHERMORE, NO REQUEST WILL BE MADE TO THE COURT FOR A JUDGMENT UNTIL THE EXPIRATION OF THIRTY (30) DAYS AFTER YOU HAVE RECEIVED THIS COMPLAINT.- HOWEVER, IF YOU REQUEST PROOF OF THE DEBT OR THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR WITHIN THE THIRTY (30) DAY PERIOD THAT BEGINS UPON YOUR RECEIPT OF THIS COMPLAINT, THE LAW REQUIRES US TO CEASE OUR EFFORTS (THROUGH LITIGATION OR OTHERWISE) TO COLLECT THE DEBT UNTIL WE MAIL THE REQUESTED INFORMATION TO YOU. YOU SHOULD CONSULT AN ATTORNEY FOR ADVICE CONCERNING YOUR RIGHTS AND OBLIGATIONS IN THIS SUIT. IF YOU HAVE FILED BANKRUPTCY AND RECEIVED A DISCHARGE, THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. IT IS AN ACTION TO ENFORCE A LIEN ON REAL ESTATE. File #: 156436 Plaintiff is SOVEREIGN BANK, SB/M TO WAYPOINT BANK, F/K/A HARRIS SAVINGS BANK 601 PENN STREET READING, PA 19601 2. The name(s) and last known address(es) of the Defendant(s) are: PAMELA LYNN PALMER A/K/A PAMELA PALMER SOWARD 4 TRINE AVENUE MOUNT HOLLY SPRINGS, PA 17065 who is/are the mortgagor(s) and/or real owner(s) of the property hereinafter described. 3. On 07/20/1998 mortgagor(s) made, executed, and delivered a mortgage upon the premises hereinafter described to PLAINTIFF which mortgage is recorded in the Office of the Recorder of CUMBERLAND County, in Book: 1469, Page: 741. The mortgage and assignment(s), if any, are matters of public record and are incorporated herein by reference in accordance with Pa.R.C.P. 1019(g); which Rule relieves the Plaintiff from its obligations to attach documents to pleadings if those documents are of public record. 4. The premises subject to said mortgage is described as attached. 5. The mortgage is in default because monthly payments of principal and interest upon said mortgage due 12/01/2006 and each month thereafter are due and unpaid, and by the terms of said mortgage, upon failure of mortgagor to make such payments after a date specified by written notice sent to Mortgagor, the entire principal balance and all interest due thereon are collectible forthwith. File 4: 156436 6. The following amounts are due on the mortgage: Principal Balance $54,307.23 Interest $1,966.52 11/01/2006 through 06/21/2007 (Per Diem $8.44) Attorney's Fees $1,250.00 Cumulative Late Charges $109.56 07/20/1998 to 06/21/2007 Cost of Suit and Title Search 750.00 Subtotal $58,383.31 Escrow Credit $0.00 Deficit $7.97 Subtotal 7.97 TOTAL $58,391.28 7. 8. If the mortgage is reinstated prior to a Sheriffs Sale, the attorney's fee set forth above may be less than the amount demanded based on work actually performed. The attorney's fees requested are in conformity with the mortgage and Pennsylvania law. Plaintiff reserves its right to collect attorney's fees up to 5% of the remaining principal balance in the event the property is sold to a third party purchaser at Sheriffs Sale, or if the complexity of the action requires additional fees in excess of the amount demanded in the Action. Plaintiff is not seeking a judgment of personal liability (or an in personam judgment) against the Defendant(s) in the Action; however, Plaintiff reserves its right to bring a separate Action to establish that right, if such right exists. If Defendant(s) has/have received a discharge of personal liability in a bankruptcy proceeding, this Action of Mortgage Foreclosure is in no way an attempt to reestablish such personal liability discharged in bankruptcy, but only to foreclose the mortgage and sell the mortgaged premises pursuant to Pennsylvania Law. File #: 156436 9. Notice of Intention to Foreclose as set forth in Act 6 of 1974, Notice of Homeowner's Emergency Assistance Program pursuant to Act 91 of 1983, as amended in 1998, and/or Notice of Default as required by the mortgage document, as applicable, have been sent to the Defendant(s) on the date(s) set forth thereon, and the temporary stay as provided by said notice has terminated because Defendant(s) has/have failed to meet with the Plaintiff or an authorized consumer credit counseling agency, or has/have been denied assistance by the Pennsylvania Housing Finance Agency. 10. This action does not come under Act 6 of 1974 because the original mortgage amount exceeds $50,000. 11. Defendants' application for assistance under Act 91 of 1983 has been rejected by the Pennsylvania Housing Finance Agency. WHEREFORE, PLAINTIFF demands an in rem Judgment against the Defendant(s) in the sum of $58,391.28, together with interest from 06/21/2007 at the rate of $8.44 per diem to the date of Judgment, and other costs and charges collectible under the mortgage and for the foreclosure and sale of the mortgaged property. PHELAN HALLINAN & SCHMIEG, LLP ?i?10t?v?•? d By: /s/Francis S. Hallinan LAWRENCE T. PHELAN, ESQUIRE DANIEL G. SCHMIEG, ESQUIRE FRANCIS S. HALLINAN, ESQUIRE Attorneys for Plaintiff File #: 156436 LEGAL DESCRIPTION ALL that certain lot or piece of ground in the Brough of Mt. Holly Springs, Cumberland County, Pennsylvania, more particularly bounded and described pursuant to a land subdivision for Constantinos J. Mallios dated August 1989, revised through November 14, 1989, and recorded in Cumberland County Plan Book 59 at Page 117, bounded and described as follows: BEGINNING at an iron pin at the corner of Lot No. 2 and 3 on the above referred to plan; thence South 89 degrees 45 minutes 00 seconds East 114.15 feet to an iron pin at land now or formerly of United Telephone Company of PA; thence by said land South 00 degrees 15 minutes 00 seconds West 24.00 feet to an iron pin at corner of Lots No. 1 and 2 on the above referred to subdivision plan; thence North 89 degrees 45 minutes 00 seconds West 114.15 feet to an iron pin at corner of Lots No. 1 and 2 of the above referred to plan; thence North 00 degrees 15 minutes 00 seconds East 24.00 feet to an existing iron pin at corner of Lots No. 2 and 3 of the above referred to subdivision plan the point and place of BEGINNING. CONTAINING 2,740 SQUARE FEET and designated as Lot No. 2 thereon and having the address of 4 Trine Avenue. UNDER AND SUBJECT TO THE RESTRICTION that the premises shall remain owner occupied for a period of twenty-five (25) years from the date of this conveyance. File #: 156436 BEING the same premises which Robert C. Kozak and Patricia A. Kozak, husband and wife, by their Deed dated February 10, 1993, and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, in Deed Book D, Volume 36, Page 173, granted and conveyed unto Housing Authority of the County of Cumberland, Grantor herein. PARCEL NO: 23-32-2336-392. PROPERTY BEING: 4 TRINE AVENUE File #: 156436 VERIFICATION FRANCIS S. HALLINAN, ESQUIRE hereby states that he is attorney for Plaintiff in this matter, that Plaintiff is outside the jurisdiction of the court and/or the verification could not be obtained within the time allowed for the filing of the pleading, that he is authorized to make this verification pursuant to Pa.R.C.P. 1024 (c), and that the statements made in the foregoing Civil Action in Mortgage Foreclosure are based upon information supplied by Plaintiff and are true and correct to the best of its knowledge, information and belief. Furthermore, counsel intends to substitute a verification from Plaintiff upon receipt. The undersigned understands that this statement is made subject to the penalties. of 18 Pa.C.S. Sec. 4904 relating to unsworn falsifications to authorities. I ? Francis S. Haliinan, Esquire Attorney for Plaintiff DATE:-00 241407 EXHIBIT D Christopher E. Rice, Esquire MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES Ten East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff SOVEREIGN BANK, S/B/M TO : IN THE COURT OF COMMON PLEAS OF WAYPOINT BANK, F/K/A : CUMBERLAND COUNTY, PENNSYLVANIA HARRIS SAVINGS BANK, Plaintiff : NO. 07 - 3777 CIVIL TERM V. PAMELA LYNN PALMER A/K/A c o PAMELA PALMER SOWARD, Defendant "hr--" r) C3 ANSWER -o `=i, 1. Admitted. 2. Admitted. 3. Admitted in part and denied in part. It is admitted that Defendant executed a mortgage with Plaintiffs predecessor in title, but it is denied whether that mortgage is located at Book 1469, Page 741, in the Cumberland County Recorder of Deeds office. Further investigation is required in order to determine the same. 4. Admitted. 5. Admitted. It is admitted that Plaintiff has been unable to make monthly payments of principal and interest upon the mortgage. By way of further response, Defendant is in the process of selling her house in order to pay off her debt in full, but has received no cooperation from Plaintiff. 6. Denied. After reasonable the Defendant is without knowledge or information sufficient to form a belief as to the truth of the averment and the same is therefore denied. Strict proof is demanded at trial. 7. Denied. After reasonable the Defendant is without knowledge or information sufficient to form a belief as to the truth of the averment and the same is therefore denied. Strict 'proof is demanded at trial. 8. Denied as a conclusion of law. 9. Denied as a conclusion of law. 10. Denied as a conclusion of law. It. Denied as a conclusion of law. WHEREFORE, Defendant demands that she is permitted to sell her home and that this Court finds in her favor by permitting an extension in order to do so. MARTSON LAW OFFICES Y Hubert X. Gilroy, Esquire Attorney I.D. No. 29943 Christopher E. Rice, Esquire Attorney I.D. No. 90916 10 East High Street Carlisle, PA 17013 (717) 243-3341 Date: 7 ,19 "? F:IFILES\ 12675112675 1. aea VERIFICATION I verify that the statements contained herein are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.A. §4904, relating to unworn falsification to authorities. Dated: ,5 /t? 7 CERTIFICATE OF SERVICE I, Mary M. Price, an authorized agent for Martson Deardorff Williams Otto Gilroy & Faaller, hereby certify that a copy of the foregoing Answer was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Francis S. Hallinan, Esquire Lawrence T. Phelan, Esquire PHELAN HALLINAN & SCHMIEG, LLP One Penn Center Plaza, Suite 1400 Philadelphia, PA 19103 MARTSON LAW OFFICES By: A, Q24?nf2- M. Price T East High Street Carlisle, PA 17013 (717) 243-3341 Dated: 7111 / 0 7 EXHIBIT E fit ? r ? 'F 1 # ? r ?f wxt . if .? ?- ? ,-44 at t}_{ ,' ?i f A ? t 5 ? t T i F 1 ACT 91 NOTICE TAKE ACTION TO SAVE YOUR ROME FROM FORECLOSURE Date of Notice: March 19, 2007 PAMELA LYNN PALMER 4 TRINE AVE MOUNT HOLLY SPRINGS, PA 17065-1143 Loan # 0356105074 You meet with the Counseling Aeency. KtLZk??J? an attoraev in your area. The local bar association may be able to help you find a lawyer LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENEDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S) PROPERTY ADDRESS: LOAN ACCT. NO.: PAMELA LYNN PALMER 4 TRINE AVE MT HOLLY SPRINGS, PA 17065 0356105074 CURRENT LENDERJSERVICER: Sovereign Bank HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSMANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: • IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, • IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND • IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. IM MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of designated consumer credit counseling agencies for the county in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the tender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU ST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have Ned bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOURMORTGAGE DEFAULT (Brine it no to date) NATURE OF THE DEFAULT -The MORTGAGE held by Sovereign Bank (hereinafter we, us, or ours) on your property located at 4 TRINE AVE, MT HOLLY SPRINGS, PA 17065 IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE THE MONTHLY PAYMENTS of $ 552.48 since 12/1/2006 to the present. The total amount now required to cure this default, or in other words, get caught up in your payments, as of the date of this letter, is $ 2,292.21. The total amount includes late charges and any other charges that have accrued to this date. If you disagree with the assertion that a default has occurred or the correctness of the calculated amount required to cure the default, contact: SOVEREIGN BANK OVERNIGHT DELIVERY: MORTGAGE COLLECTIONS DEPARTMENT PO BOX 8627 OR 601 PENN STREET READING PA 19603 READING, PA 19601 1-800-753-7366 HOW TO CURE THE DEFAULT -You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $ 2,292.21, PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash. cashier's check. certified check or money order made payable to Sovereign, Bank and sent to the above address,, IF YOU DO NOT CURE THE DEFAULT-If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to ezerdae its Adift to accelerate the mort_nee debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose anon your mortgaged wogerty. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's flees will be added to the amount you owe the lender, which may also include other reasonable costs. If You care the default within the THIRTY OMDAY Period. von will not be reaalred to nav attorney's fees. OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE - If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default performing any other requirements under the mortgage. Caring your default In the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE.- It is estimated that the earliest date that such a Sheriffs Sale of the mortgaged property could be held would be approximately six (6) months from the date of this Notice. A notice of the actual date of the Sheriffs Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: SOVEREIGN BANK Address: PO BOX 8627, READING PA 19603 Phone Number: 1-800-753-7366 Fax Number: 1-800-881-9334 Contact Person: Constance M. Cocroft, Vice President EFFECT OF SHERIFF'S SALE - You should realize that a Sheriffs Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriffs Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE - You may have the right to sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied. YOU MAY ALSO HAVE THE RIGHT: TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. TO HAVE THE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS, TO ASSERT ANY OTHER DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY (SEE ENCLOSURE) You may contact our Mortgage Services Department via E-mail at: MORTSERVCa,SOVERMONBANK.COM This bank is a debt collector attempting to collect a debt and any information obtained from you will be used for that purpose. HOUSING AND URBAN DEVELOPMENT ("HUD") NOTIFICATION IMPORTANT NOTICE OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1987 PLEASE READ THIS NOTICE. HOMEOWNERSHIP COUNSELING MAY BE AVAILABLE TO YOU. DATE: March 19, 2007 TO: ' PAMELA LYNN PALMER RE: Account No. 0356105074 FROM: Sovereign Bank The Housing and Community Development Act of 1987 requires that Sovereign Bank notify eligible homeowners with delinquent home loans of the availability of homeownership counseling. Because your home loan is DELINQUENT, you may be eligible for homeownership counseling provided by certain non-profit organizations. PLEASE CALL THE HUD TOLL FREE NUMBER AT 1-800-5694287 FOR MORE INFORMATION. If you have any questions about your home loan you may call or write to Sovereign Bank at: MORTGAGE COLLECTIONS DEPARTMENT SOVEREIGN BANK PO BOX 8627 READING PA 19603 1-800-753-7366 Constance M. Cocroft Vice President i f' ruub ci?u uuj..j a rju rds f ir. b ? OQ? _r r U ?f m¦R • ? r .?. - Wocr 0 r rr 2.. -, ... 3 h ?* 0 o t) a ?A_ EXHIBIT F T0'd '1Ei101 ousin rvinance A enc r,utacowners emergency Mort a ce sn Pr m pa_ : 211 JV0n*,V-nr SIMA P.O. Box 15201 Harrisburg PA 1 71 05-52 0t Co?y es?ondencc 211 North Front Street, p. 0. Box 15531 Borrtrburg PA 17105-5531 (717) 780-3940 I-800.342-2397 FAX (717) 780.3991 77T (717) 780-1865 5/25/2007 SOVEREIGN SUBJECT: PO BOX 8627 PAMELA L. PALMER READING, PA 19603 4 TRINE AV MT HOLLY SPGS, PA 17065 HEMAP Account #: FIE0001584184 Loan #: 0356105074 Your application for a HOMEOWNERS' EMERGENCY MORTGAGE ASSISTANCE LOAN has been pursuant to Act 91 of 1983, 35 P.S. Section 1680.401-C et seq. and/or zww Agency lines 12 PA Code Section 31.261 at seq. for the following reasons: DELETED IN LENDER'S COPY You may be entitled to an appeal hearing if you disagree with our decision. Requests for a hearing must be made in writing and must be submitted to the Agency within 15 daysafter the postmark date of this letter. Verbal requests are not acceptable. The hearing may be conducted by a telephone conference call; therefore, you must include your telephone number. You also have a right to an in-person hearing at the Agency's office in Harrisburg If you so desire. Requests for hsadngs must state the reason(s) that a homing is requested and must be sent first class. Wintered or certilled mail to: Chief Counsel - HEMAP' Hearing Request, PHFAMEMAP, 211 North Front Street, P.O. Box 16628, Harrisburg, PA, 17105,7828. The hearing request may also be faxed to the attention of Chief Counsel - Hearing Request at 717.780-4031. The will attempt to schedule the hearing within thirty (30) days attar the request is received. Whe en sending your appeal, please be sure to print or type your name legibly and Include your HEMAP Account Number and phone number where you may be reached during the day. You have a right to be represented by an attorney in connection with your appeal. If you cannot afford an attorney you may be eligible for Legal Services representation. You can contact a Legal Services representative toll free at 1-800.322-7672 for a referral to the office for your county. Please be aware that scheduling an appeal hearing does not necessarily stay foreclosure proceedings. DISCLOSURE OF USE OF INFORMATION OBTAINED FROM OUTSIDE SOURCE: 1- Disclosure inapplicable. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided that the aWca;nt has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or becausa the applicant has In good faith exercised -any right under the Consumer Credit Protection Act. The Federal Agency that administers compliance with this law concerning this creditor Is the Federal Trade Commission, Equal Credit Opportunity, Washington, D.C. Sincerely, THE PENNSYLVANIA HOUSING FINANCE AGENCY Homeowners' Emergency Mortgage Assistance Program w " w Joseph P. Schalk, Esquire, hereby states that he is the attorney for Plaintiff in this action, that he is authorized to make this verification, and that the statements made in the foregoing Motion for Summary Judgment and Brief are true and correct to the best of his knowledge, information, and belief. The undersigned understands that this statement herein is made subject to the penalties of 18 Pa.C.S. §4904 relating to unworn falsification to authorities. . I?Ias?± Date ?LA lp"?hAL h P. Schalk, Esquire Attorney for Plaintiff 1 ? M •! 49 PHELAN HALLINAN & SCHMIEG, LLP By: JOSEPH P. SCHALK, ESQUIRE Identification No. 91656 107 North Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 Sovereign Bank, s/b/m to Waypoint Bank, f/k/a Harris Savings Bank 601 Penn Street Reading, PA 19601 Plaintiff VS. Pamela Lynn Palmer a/k/a Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant Attorney for Plaintiff : Court of Common Pleas : Civil Division : Cumberland County : No. 07-3777 I hereby certify that true and correct copies of Plaintiffs Motion for Summary Judgment, Brief in Support thereof, and Praecipe for Argument were sent via first class mail to the person on the date listed below: Christopher E. Rice, Esquire Martson Deardorff Williams Otto Gilroy & Faller 10 East High Street Carlisle, PA 17013 Date: J h P. chalk, Esquire Attorney for Plaintiff = C w y tD ? ?? . r =` may _'C7 ::? 'te , . r Q Ln S PRAF.CIPF, FOR LISTING CASE FOR ARC'iTA:'a'NT (Must be typewritten and submitted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Argument Court. Sovereign Bank, s/b/m to Waypoint Bank, f/k/a Harris Savings Bank 601 Penn Street Reading, PA 19601 Plaintiff VS. Pamela Lynn Palmer aWa Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant : Court of Common Pleas : Civil Division Cumberland County No. 07-3777 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, etc.): 2. 3. 4 0 C o ° a Identify counsel who will argue case: mf - co .". (a) for plaintiff: Joseph P. Schalk, Esquire ? ?= ca Q Address: Phelan Hallinan & Schmieg, LLP , . -0 c -r, 9-71 - 107 107 North Front Street, Suite 115 ? C, 4 ; Harrisburg, PA 17101 w O rn (b) for defendant: Christopher E. Rice, Esquire -< o Address: Martson Deardorff Williams Otto Gilroy & Faller 10 East High Street Carlisle, PA 17013 I will notify all parties in writing within two days that this case has been listed for argument. Argument Court Date: October 3, 2007 Attorney for laintiff Date: CA I k?5 6- I V PHELAN HALLINAN & SCHMIEG, LLP BY: JOSEPH P. SCHALK, ESQUIRE Identification No. 91656 107 North Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 Sovereign Bank, s/b/m to Waypoint Bank, f/k/a Harris Savings Bank 601 Penn Street Reading, PA 19601 Plaintiff vs. Pamela Lynn Palmer a/k/a Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant PRAECIPE TO THE PROTHONOTARY: ATTORNEY FOR PLAINTIFF : Court of Common Pleas : Civil Division : Cumberland County : No. 07-3777 Plaintiff hereby withdraws its Motion for Summary Judgment which was filed on or about September 19, 2007 with respect to the above referenced case without prejudice. I qLo A r • Date: seph P. Schalk, Esquire Attorney for Plaintiff rs PHELAN HALLINAN & SCHMIEG, LLP BY: JOSEPH P. SCHALK, ESQUIRE Identification No. 91656 107 North Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 Sovereign Bank, s/b/m to Waypoint Bank, f/k/a Harris Savings Bank 601 Penn Street Reading, PA 19601 Plaintiff vs. Pamela Lynn Palmer a/k/a Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant ATTORNEY FOR PLAINTIFF : Court of Common Pleas : Civil Division : Cumberland County : No. 07-3777 CERTIFICATION OF SERVICE I hereby certify true and correct copies of the foregoing Plaintiff s Praecipe to Withdraw Motion for Summary Judgment thereof was served by regular mail on Defendant on the date listed below: Christopher E. Rice, Esquire Martson Deardorff Williams Otto Gilroy & Faller 10 East High Street Carlisle, PA 17013 Date: 1 t f By: t' r J eph P. chalk, Esquire Attorney for Plaintiff r FT' 1 PHELAN HALLINAN & SCHMIEG, LLP BY: FRANCIS S. HALLINAN, ESQUIRE Identification No. 62695 One Penn Center at Suburban Station 1617 John F. Kennedy Boulevard, Suite 1400 Philadelphia, PA 19103-1814 (215) 563-7000 Sovereign Bank, s/b/m to Waypoint Bank, f/k/a Harris Savings Bank 601 Penn Street Reading, PA 19601 Plaintiff VS. Pamela Lynn Palmer a/k/a Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant TO THE PROTHONOTARY: PR A RCIPF ATTORNEY FOR PLAINTIFF : Court of Common Pleas : Civil Division : Cumberland County : No. 07-3777 ? Please mark the above referenced case Discontinued and Ended without prejudice. ® Please mark the above referenced case Settled, Discontinued and Ended. ? Please mark Judgments satisfied and the Action settled, discontinued and ended. ? Please Vacate the judgment entered and mark the action discontinued and ended without prejudice. ? Please withdraw the complaint and mark the action discontinued and ended without prejudice. Date: Francis S. Hallinan, Esquire PHELAN HALLINAN & SCHMIEG, LLP BY: FRANCIS S. HALLINAN, ESQUIRE Identification No. 62695 One Penn Center at Suburban Station 1617 John F. Kennedy Boulevard, Suite 1400 Philadelphia, PA 19103-1814 (215) 563-7000 Sovereign Bank, s/b/m to Waypoint Bank, f/k/a Harris Savings Bank 601 Penn Street Reading, PA 19601 Plaintiff VS. Pamela Lynn Palmer a/k/a Pamela Palmer Soward 4 Trine Avenue Mount Holly Springs, PA 17065 Defendant ATTORNEY FOR PLAINTIFF : Court of Common Pleas : Civil Division : Cumberland County : No. 07-3777 CERTIFICATION OF SERVICE I hereby certify true and correct copies of the foregoing Plaintiff's Praecipe to Withdraw Complaint thereof was served by regular mail on counsel for Defendant on the date listed below: Christopher E. Rice, Esquire Martson Deardorff Williams Otto Gilroy & Faller 10 East High Street Carlisle, PA 17013 Date: By: {/-? C^? y! Francis S. Hallinan, Esquire Attorney for Plaintiff CD TIN