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HomeMy WebLinkAbout03-5794IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION PNC BANK N.A. Plaintiff No. 03 - .rlQ?/ atc.j vs. COMPLAINT IN MORTGAGE FORECLOSURE ROBERT S. REED, SR. AND RAE ANN REED Defendants FILED ON BEHALF OF Plaintiff COUNSEL OF RECORD FOR THIS PARTY: CERTIFICATE OF ADDRESS: 685 STATE STREET LEMOYNEBOROUGH PARCEL NO.#12-21-0267-303 LORI A. GIBSON, ESQ. PA I.D. 968013 JON A. MCKECHNIE, ESQ. PA I.D. 936268 MARLENE J. BERNSTEIN, ESQ. PA ID #43574 Bernstein Law Firm, P.C. Firm #718 Suite 2200 Gulf Tower Pittsburgh, PA 15219 412-456-8100 BERNSTEIN FILE NO. F0038737 NOTICE THIS COMMUNICATION IS FROM A DEBT COLLECTOR AND IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION PNC BANK N.A. Plaintiff VS. ROBERT S. REED, SR. AND RAE ANN REED Defendants No. NOTICE AND COMPLAINT NOTIC'F 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 upon you, 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 OR CANNOT AFFORD ONE, GO TO OR TELEPHONE "rHE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Lawyer Referral Service PA Bar Association P.O. Box 186 Harrisburg, PA 17108 1-800-692-7375 COMPLAINT 1. PNC BANK N.A. is a corporation with offices at 2730 Liberty Avenue, Pittsburgh, PA 15222 and is hereinafter referred to as "Plaintiff'. 2. Defendants are adult individuals who reside at 52 Rear Market Street, Lemoyne, Cumberland County, Pennsylvania 17043 and 685 State Street, Lemoyne, Cumberland County, Pennsylvania 17043, respectively. 3. On or about February 4, 2000, Defendants executed and delivered to Plaintiff a Mortgage on certain real property owned by Defendants. Said Mortgage was recorded in the Office of the Cumberland County Recorder of Deeds in Mortgage Book Volume 1597, Page 804. A copy of said Mortgage is attached hereto, marked Exhibit "1" and made a part hereof. 4. Of even date with said Mortgage, Defendants executed and delivered to Plaintiff Note, a copy of which is attached hereto, marked Exhibit "2" and made a part hereof. 5. By the terms and conditions of the aforementioned Mortgage and, Defendants agreed to repay certain sums to Plaintiff and, in so doing, to make certain monthly payments to Plaintiff as is more specifically shown by said Mortgage and Note. 6. Plaintiff avers that Defendants are in default of the terms and conditions of the aforementioned Mortgage and Note by having not made payments as agreed, thereby rendering the entire balance immediately due and payable. 7. On or about April 4, 2003 and September 10, 2003, Notice of Homeowner's Emergency Act of 1983 were sent to Defendants in accordance with Act 91 of 1983(P.L.385. No. 91), as amended, and in accordance with Act 6 of 1974 (P.L. 11, No. 6), as amended, and pursuant to 12 PA.Code Chapter 31, Subchapter B, Section 31.201 et seq., as amended, and that an action on said Mortgage may be commenced after 33 days from the postmark date of said Notices. Said Notices Further advised Defendants of Defendant's rights and obligations in accordance with said Acts. Copies of said Notices are attached hereto collectively marked Exhibit "3", and made a part hereof. 8. Plaintiff avers that the outstanding principal balance due is $69,987.01. 9. Plaintiff is entitled to interest at the rate of 11 percent per annum. Interest due through and including October 31, 2003 amounts to $6,736.24. 10. Pursuant to the terms and conditions of the aforementioned mortgage, Plaintiff, at its discretion, may do or pay whatever is necessary to protect the value of the property and Plaintiffs rights in the property. This sum currently is unliquidated. 11. Plaintiff is entitled to late charges of the lessor of $100.00 or 5% of the monthly payment of principal and interest per month for a total of $475.20 as of October 31, 2003. 12. By the terms of the aforementioned mortgage, Defendants have agreed to pay Plaintiffs reasonable attorneys' fees, which currently are $850.00 and which will increase at the rate of $120.00 per hour depending on the extent of litigation required. I 3. Although repeatedly requested to do so by Plaintiff, Defendants willfully failed and refused to pay the aforesaid balance, interest, escrow advances, late charges, attorney tees or any part thereof to Plaintiff. WHEREFORE, Plaintiff demands judgment in mortgage foreclosure against Defendants, jointly and severally, in the amount of $78,048.45 with continuing interest, late charges and escrow and corporate advances at the contract rate plus costs. BERNSTEIN LAW FIRM, P.C. By. ( < Marlede J. BernsteiiYEsquire Attorneys for Plaintiff Suite 2200 Gulf Tower Pittsburgh, PA 15219 (412) 456-8100 BERNSTEIN FILE NO. F0038737 IIi' -? ;t-o? RECORDATION REOUESTED BY: PNC BANK, NATIONAL ASSOCIATION 4242 CARLISLE PIKE CAMP HILL, PA 17007-8874 WHEN RECORDED MAIL TO: PNC BANK, NATIONAL ASSOCIATION 830 DRESHER ROAD, SUITE 200 HORSHAM, PA 19044 a-ai- 80/4//37/x/ R_C0F E[BS 3Ub+acRL,":Dj 001! i?-Pa '00 FEB 28 A(l 11 45 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY OPEN - END MORTGAGE THIS MORTGAGE SECURES FUTURE ADVANCES THIS MORTGAGE IS DATED FEBRUARY 4, 2000, between ROBERT S REED SR and RAE ANN REED, whose address is 685 STATE STREET, LEMOYNE, PA 17043 (referred to below as "Grantor"); and PNC BANK, NATIONAL ASSOCIATION, whose address is 4242 CARLISLE PIKE, CAMP HILL, PA 17001-8874 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, tide, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereddaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, located in CUMBERLAND County, Commonwealth of Pennsylvania (the "Real Property"): SEE RIDER A ATTACHED HERETO AND MADE A PART HEREOF The Real Property or its address is commonly known as 685 STATE STREET, LEMOYNE, PA 17043. The Real Property tax idenfification number is 12-21-0267-303. " Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. DEFINITIONS. The following words shall have the following meanings when used in this Mortgage. Terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. Borrower. The word'BorroweP means each and every person or entity signing the Note, including without limitation ROBERT S REED. Grantor. The word "Grantor" means any and all persons and enfifies executing this Mortgage, including without limitation all Grantors named above. The Grantor is the mortgagor under this Mortgage. Any Grantor who signs this Mortgage, but does not sign the Note, is signing this Mortgage only to grant and convey that Grantor's interest in the Real Property and to grant a security interest in Grantor's Interest in the Rents and Personal Property to Lender and is not personally liable under the Note except as otherwise provided by contract or law. Guarantor. The word "Guarantor" means and includes without limitation each and all of the guarantors, sureties, and accommodation parties in connection with the Indebtedness. Improvements. The word "Improvements" means and includes without limitation all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal and interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses incurred by Lender to enforce obligations of Grantor under this Mortgage, together with interest on such amounts as provided in this Mortgage. In addition to the Note, the word "Indebtedness" includes all obligations, debts and liabilities, plus Interest thereon, of Borrower to Lender, or any one or more of them, as well as all claims by Lender against Borrower, or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, absolute or contingent, liquidated or unliquidated and whether Borrower may be liable individually or jointly with others, whether obligated as guarantor or otherwise, and whether recovery upon such Indebtedness may be or hereafter may become barred by any statute of limitations, and whether such Indebtedness may be or hereafter may become otherwise unenforceable. Lender. The word "Lender" means PNC BANK, NATIONAL ASSOCIATION, its successors and assigns. The Lender is the mortgagee under this Mortgage. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender, and includes without limitation all assignments and security interest provisions relating to the Personal Property and Rents. ?????? ????tt???? ??/1 Note. The word "Note" means the promissory note or credit agreement dated Februar it &Jol Ijinal' principal amount of $75,000.00 from Borrower to Lender, together with all renewals of, extensions of, h n f r ,1in_cings of, consolidations of, and substitutions for the promissory note or agreement Personal Property. The words 'Personal Propert' mean all equipment,????ttppr??55 and oth4 articlpfrof personal pros or hereafter owned by Grantor, antl now or hereafter attached or affixed to the Real Property;It6?dfhcr with oll 'c^°°=FlfTis Parts and addit 1 , 11 replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectiveiv the Real orooerty any - o r --- MORTGAGE 02-04-2000 (Continued) Loan No Real Property. The words 'Real Property' mean the property, interests and rights described shove in the "Grant of Matpaga• ti esm z Related Documents. The words "Related Documents" mean and include without limitation all promissory notes, ixedft agnanenis, "-`' agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, and all other instruments, agreements documents, whether now or hereafter existing, executed in connection with the Indebtedness. -Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived *a m bM.,,. Property. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, 1S':, GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER T/Mb `t. MORTGAGE AND THE RELATED DOCUMENTS. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: GRANTOR'S WAIVERS. Grantor waives all rights or defenses arising by reason of any "one action" or "anti-deficiency" law, or any other law which may prevent Lender from bringing any action against Grantor, including a claim for deficiency to the extent Lender is otherwise entitled to a claim for deficiency, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exercise ofa power of sale. V GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warrants that: (a) this Mortgage is executed at Borrower's request andnot si at the request of Lender; (b) Grantor has the full power, right, and authority to enter into this Mortgage and to hypothecate the Property; (c) the provi instrument and not ng up lt in a viola this Mortgage do not conflict with, or result in a default to Grantor; d) other has established ladlequa eo meant of obtaining omuBorrower oonoa of any law, regulation, court decree or order applicable Lender has made no representation to Grantor about Borrower (including continuing basis information about Borrower's financial condition; and (e) without limitation the creditworthiness of Borrower). PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Borrower shall pay to Lender all Indebtedness secured by this Mortgage as It becomes due, and Borrower and Grantor shall strictly perform all their respective obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor and Borrower agree that Grantors possession and use of the Property shall be governed by the following provisions: Possession and Use. Until in default, Grantor may remain in possession and control of and operate and manage the Properly and collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Hazardous Substances. The terms "hazardous waste," "hazardous substance," "disposal," "release," and "threatened release" as used in this Mortgage, shall have the same meanings as set forth in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, at seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L..?N 42999--S49C9 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, at seq., the Resource Conservation and Recovery The terms oregoi Section 6901, at seq., or other applicable state or Federal laws, rules, Ior regulations adopted pursuant t b any products for enya etiTh thereof "hazardous waste" and "hazardous substance" shall also include, without and asbestos. Grantor represents and warrants to Lender that: (a) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any hazardous waste or substance by any person on, disclosed under, about from the Properly: (b) Grantor has nripe an facture, storage, believe that there has bn, disposal,release, porthreatenedl release of any and acknowledged by Lender in writing, (t) any use, , generation, occupants of the Property or (if) any actual or hazardous waste or substance on, under, about r or from on r the Property by any p' nor owners or threatened litigation or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and acknowledged by Lender in writing, (i) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of, or release any hazardous waste or substance on, under, about or from the Property and (ii) any such activity shall be conducted in compliance with all applicable federal, stae, and local laws, regulations and ordinances, including without limitation those laws, regulations, and ordinances described above. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for hazardous waste and hazardous substances. Grantor hereby (a) releases and waives any future Claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws, and (b) agrees to indemnity and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or Indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance on the properties. The provisions of this section of the Mortgage, including the obligation to indemnity, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), soil, gravel or rock products without the prior written consent of Lender. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent d Lender. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and its agents and representatives may enter upon the Real Property at all reasonable times to attend Lender's interests and to inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or Ier"fili effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans Vi Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any DrOOOOO'W Including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's so* Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bald. satisfactory to Lender, to protect Lender's interest Duce to Protect. Grantor agrees neither to abandon nor leave unattended the Property. Grantor shall do all other acts. in ad~ to bet tWh above m Ih'S S 110n, which from the character and use of the Property are reasonably necessary to protect and preserve nv fhr. NatV+rY , .zf ,! 10g-04-2000 _ MORTGAGE Page 3 toan'No (Continued) transfe' means the conveyance of Real Property or any right, title or interest therein; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of Real Property interest. If any Grantor is a corporation, partnership or limited liability company, transfer also Indudas any change In ownership of more than twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests, as the case may be, of Grantor. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania low. TAXES AND LIENS, The following provisions ralafing to the taxes and liens on the Property are a part of this Mortgage. PaymenL Grantor shag pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or mat" furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender imdar this Mortgage, except for the lien of taxes and assessments not due, and except as otherwise provided in the following paragraph. R&W To Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so"as Lenders interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (16) dqt after the hen arises or, H a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lander, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lander as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions totaling to insuring the Property are a part of this Mortgage. Maintenance of Insurance. Grantor shall procure and maintain policies of fire Insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general laWtily Insurance in such coverage amounts as Lender may request with Lender being named as additional insureds in such liability insurance pokies. Additionally, Grantor shall maintain such other Insurance, including but not limited to hazard, business interruption and boiler insurance as Lender may require. Policies shall be written by such insurance companies and in such form as may be reasonably apceptable to Lender. Grantor shag deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of thirty (30) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each Insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any ad, omission or default of Grantor or any other person. Should the Real Property at any time become located in an area designated by the Dkaclor of tha Federal Emergency Management Agency as a special good hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance for the fug unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the farm of the loan. AppNcaDan of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor tab to do so within fifteen (15) days of the casualty. Whether or not Lenders security is impaired, Lender may, at its election, apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shag, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration 0 Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, than to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor. Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered by this Mortgage at any trustee's sale or other sale held under the provisions of this Mortgage, or at any foreclosure sale of such Property. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each Visiting policy Of insurance showing: (a) the name of the insurer; (b) the risks insured; (c) the amount of the policy; (d) the property insured, the W*n Curran replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy. Grantor Shall, Ligon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Mortgage, or if any action or proceeding is commenced that would materially allied Lenders interests in the Property, Lender on Grantor's behalf may, but shall not be required to, take any action that Lender deems appdprieM. Any amount that Lender expends In so doing will bear interest at the rate provided for in the Note from the date incurred or paid by Larder to the data of repayment by Grantor. All such expenses, at Lender's option, will (a) be payable on demand, (b) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (i) the term of any applicable insurance policy a (g) the remaining term of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturity. This Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. Grantor's obligation to Lender for all such expenses shall survive the entry of any mortgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, titre report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. MORTGAGE Loan No (ConUnued) Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lander shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. CONDEMNATION. The following provisions relating to condemnation of the Property are a part of this Mortgage. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly nolity Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments as may be requested by it from time to time to permit such participation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (a) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (b) a specific tax on Borrower which Borrower is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (c) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (d) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Borrower. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of Default (as defined below), and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (a) pays the tax before it becomes delinquent, or (b) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage. Security Agreement. This instrument shall constitute a security agreement to the extent any of the Property constitutes fixtures or other personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall execute financing statements and take whatever other action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall assemble the Personal Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party), from which information concerning the security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code), are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-m-fact are a part of this Mortgage. Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages,. deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (a) the obligations of Grantor and Borrower under the Note, this Mortgage, and the Related Documents, and (ti) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or agreed to the contrary by Lender in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Attorney-in-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lenders sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Borrower pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lenders security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. DEFAULT. Each of the following, at the option of Lender, shall constitute an event of default ("Event of Default') under this Mortgage: Default on Indebtedness. Failure of Borrower to make any payment when due on the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Compliance Default. Failure of Grantor or Borrower to comply with any other term, obligation, covenant or condition contained in this Mortgage, the Note or in any of the Related Documents. False Statements. Any warranty, representation or statement made or furnished to Lender by or on behalf of Grantor or Borrower under (his Mortgage, the Note or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished- 02 -04-2000. MORTGAGE page 5 6a6 No (Continued) documents to create a valid and perfected security interest or lien) at any time and for any reason Death or Insolvency. The death of Grantor or Borrower or the dissolution or termination of Grantor or Borrower's existence as a going business, the insolvency of Grantor or Borrower, the appointment of a receiver for any part of Grantor or Borrower's property, any assignment for Itr beneht of creditors. any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor or Borrower. Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any of the Property. However, this subsection shall not apply in the event of a good Ian dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or foreferture proceeding, provided that Grantor gives Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to Lender. Breach of Other Agreement. Any breach by Grantor or Borrower under the terms of any other agreement between Grantor or Borrower and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness. or other obligation of Grantor or Borrower to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. Events Affecting the Property. Any other creditor tries to take the property by legal process, any tax lien or levy is filed or made against any Grantor or the Property, or the. Property is destroyed, or seized or condemned by federal, state or local government. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Lender, at its option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Subject to applicable law, Lender shall have the right at its option without notice to Borrower to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor or Borrower, to take possession of the Property and, with or without taking possession of the Property, to collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments received In payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property. Possession of the Property. For the purpose of procuring possession of the Property, Grantor hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere, as attorney for Lender and all persons claiming under or through Lender, to sign an agreement for entering in any competent court an amicable action in ejectment for possession of the Property and to appear for and confess judgment against Grantor, and against all persons claiming under or through Grantor, for the recovery by Lender of possession of the Property, without any stay of execution, for which this Mortgage, or a copy of this Mortgage verified by affidavit, shall be a sufficient warrant; and thereupon a writ of possession may be issued forthwith, without any prior writ or proceeding whatsoever. Nonjudklal Sale. If permitted by applicable law, Lender may foreclose Grantor's interest in all or in any part of the Personal Property or the Real Property by nonjudicial sale. Deficiency Judgment. Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy N Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Properly and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Property, or (b) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at low or in equity. Sale of the Property. To the extent permitted by applicable law. Grantor or Borrower hereby waive any and off right to have the property marshalled. In exercising its rights and remedies, Lender shall be tree to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender shall give Grantor reasonable notice of the fime and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable law, reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. Waiver; Election of Remedies. A waiver by any party of a breach of a provision of this Mortgage shall not constitute a waiver of or prejudice the parry's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or take action to perform an obligation of Grantor or Borrower under this Mortgage after failure of Grantor or Borrower to perform shall not affect Lender's right to declare a default and exercise its remedies under this Mortgage. , 4 - n^ . .. o2-oh2o00 Loan No MORTGAGE (Continued) :Page 5. reasonable expenses incurred by Lender that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest from the date of expenditure unfit repaid at the rate provided for in the Note. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including attorneys' fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees, and title insurance, to the extent permitted by applicable law. Borrower also will pay any court costs, in addition to all other sums provided by law. NOTICES TO GRANTOR AND OTHER PARTIES. Unless otherwise provided by applicable law, any notice under this Mortgage shall be in writing, may be sent by tetefacsimile (unless otherwise required by law), and shall be effective when actually delivered, or when deposited with a nationally recognized overnight courier, or, if mailed, shall be deemed effective when deposited in the United States mail first class, certified or registered mail, postage prepaid, directed to the addresses shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage, and notices pursuant 42 Pa. C.S.A. Section 8143, at seq., shall be sent to Lender's address, as shown near the beginning of this Mortgage. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. Applicable Law. Except as set forth hereinafter, this security Instrument shall be governed by, construed and enforced In accordance with the laws of the Commonwealth of Pennsylvania, except and only to the extent of procedural matters related to the perfection and enforcement by Lender of Its rights and remedies against the Property, which matters shall be governed by the laws of the Commonwealth of Pennsylvania. However, In the event that the enforceability or validity of any provision of this security Instrument Is challenged or questioned, such provision shall be governed by whichever applicable state or federal law would uphold or would enforce such challenged or questioned provision. The loan transaction which Is evidenced by the Note and this security Instrument (which secures the Note) has been applied for, considered, approved and made in the Commonwealth of Pennsylvania.. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of gentler. Multiple Parties. All obligations of Grantor and Borrower under this Mortgage shall be joint and several, and all references to Grantor shall mean each and every Grantor, and all references to Borrower shall mean each and every Borrower. This means that each of the,persons signing below is responsible for all obligations in this Mortgage. Severabfllty. If a court of competent jurisdiction finds any provision of this Mortgage to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity, however, H the offending provision cannot be so modified, it shall be stricken and all other provisions of this Mortgage in all other respects shall remain valid and enforceable..., Successors and Assigns. Subject to the limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shpfi b'is binding upon and inure to the benefit of the parties, their heirs, personal representatives, successors and assigns. If ownership-of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of. this, Mortgage or liability under the Indebtedness. ,t Time Is of the Essence. Time is of the essence In the performance of this Mortgage. 9 '. e. rte. •_ - Y ?c Waivers and Consents. Lender shall not be deemed to have waived any rights under this Mortgage (or un/ifier Th6.fii'l)oc6ints) unless such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by any party of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. No prior waiver by Lender, nor any course of dealing between Lender and Grantor or Borrower, shall constitute a waiver of any of Lender's rights or any of Grantor or Borrower's obligations as to any future transactions. Whenever consent by Lender is required in this Mortgage, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. GR ?TO(R•,7?.,,? ?j X ggERT S. ZS/? (SEAL) X t.?t.ra? Cd + " fsEAt REEI ) ANN RECD 6001597 ml y8C9 PROMISSORY NOTE Prkwipal t Lose Ode .1. Mal:wily 1 Loan No I Call I Collateral ? Account .`, : ? Otftxt. S7SA0O O i 02-04-2000 02-20-2010 39 L76 008269336 N:. ` .wosr. Riolmeas n e+e shaded ati - for hotels rs, , , -w M rot lean tree anvMtaWry d ttfe COCnnrrarrl a arty vaaCtYr loco a eerrL SOROr4ff: ROBERT S REED (SSN: 706J6-73501 Lender. PNC BANK, NATIONAL ASSOCIATION x tlbt CFIEDDIT RANCH AUTO SALES (TIN: 4242CARitISLE PIKE . • CAMP HI L. PA 17110Uia74 2 1 LUaIeR STREET A MQISIE, PA 17076 LJ Principal Amount S75AOO.OO Interest Rate: 11.ODD% Date of Note: February 4, 2000 PROMISE TO PAY. ROBERT S REED (TOonrowen promises to pay to PNC BANK, NATIONAL ASSOCIATION (1.atler l or coder. In lawful monWall the Daihd Stases of Ana rks. Vie PdxFpt amoud at Seventy Floe Thousand A 00x100 Dollars (fr75J10a00), together with InferW at ate rdebt 11AW%per ana® on the unpaid principal balance from the date funds are advanced, Much polo In full. PAYINQT. Bm cam rr= pay aft town 1, 119 regal psymenfs d 286394 each and one km WW last payment estimated al 140.47057. Borrommoft Ort peyned Is due March 20, 2000, and as subsequent peymems are due an tm seem day of saw client otter am, Borrower's Oand qqyy?reannd doe Fehrary 20,2010, will be for all prlndpal and as accrued Interest not yet paid. Parrnerrb bae1a501 p ' , pai and Interest. The asaW 2Mwesf nds tar rub father s caromed on a 35drd6O bass; teat a, by app" we ratio of the annual Ymsast rate wer a yew of 360 days. nc/epfa0 by am saramong pr+wva ewa-m sal 1 by0s octal nu.nes d days d,a P Yd uarew b ws4nOna. Borrewr w pay t.anox at LwKW%addrass shown above or a such sew plaea as Lender may designate in w". Paynera w bo applied till b accrued u paid i !vest, Lien b two cages, em b bas any then to p-iepal P .KEPAVWNT. Bmoaa may Day %*md pormly al at a portion dew amoral owed outer than d a due. Ely parents will no, amass agreed to by Lmrdw n w &'Ct. resew Borrower d 9onowefs obf0abon to cordiwe to make payrreft under ere 0aymord sdednls. Raew. 0ey w rodun the pcncoalbdwnclodui and rvy res,l n Bmows alakiq low payrrwds. LATE C11ARGIL ff a oaraelM s 15 clays a move 111112, Borrower wi be chsped 5400% of Be unpaid portion of the reps t" sHteOtded payment ors100J hichever b less . DEFAULT. Borrower will be in denim it any d tie t 0vwiV happens: (a) Borrow talks to male wry paymad when dial. (b) Borrows brooks any Woromiee 9orrvw has made to Lerdw. or So case tail to m ply with or to me Im: i rAwn due any over torm obapton. aommrd, or mndditn mcdaired it this Abe or any ageonwd related to this Ndq or in any other apeerned or Bann Borrower has vdn Lender. (o) Any representation or sbbnwa made or lmri' m Lerdw by Borrows or tin norvwers behae s take or rdyNdup in any na}erW Iespe, sow now or at the him mode or tim hod. (d) Borrower des or bec9nnas kwhewnL a worm a a3porded for any till d Bermages properly. Borrow males an aagnn rd IN the OaraY at aedlors, or any proox I n a mmarar= 000 by 80m)W or Spam Bonds under cmy bankruptcy or hadwrcT laR (a) A" oradda lrQ b `bake arty d Berm- piopoly on or in wfich Lender has a son a sarowvy i dues.- This i siudes ¦ 9amenmed d any d BarowarY a?o:os r,r Later. M Any of be ovary described in thk delauee section occurs won respect to any g a a am at via NOW (9) A media a-lww dregs -ws in, Bsrcw % Bancah cadaat. a Lander befiews be pomp,, d Paymend orporlormanov d try trdeoedness is irvaied. LENDEFM RIGHTS. Aeon OeA= Lender ray, attw 9twnp aeh rncareI as regaved by awflable law. damn the aroma unpaid prim" balance on the Not and and sashed unpaid trtter>S- due, and Van Borrower we pay mat artdunL Upon notate. inch drop W" to pay upon arW "at9q. WON. t a mom ray aka. a PDMM d anger AxAcable law, ivasa ea traeraf vale an tiia able 5D00 parcera 9 go pants. The Merest ran w tot axeeo ee rn anavnn ram pemdbed by aVpt 1 law_ Lades ray hers a o.y sprreore she to help ode, the Naive Borrower does not pay. BGrrOaw a'so wi pay LL409 unit amgtrt Tea includes, subject to any Wo wW appiaable law, LeMefs anwr*W to and Lardeft WgW 119=11511 whe7a or r" mere is a UwRIL iL7 icliM a::..E, ' bas and eW ememas for barlmpucy tx?nps (m VdM effn'ta to modely or taste any, autornift my or nparsarL abpals and any amcolded 000-Momwd collection services. it rot przhbiWd by AvVicable law. Borrow new WE pay am mart ands, in addfnoa to as Other sus provided try law. If ju09ment is entered in connection with V a Naze. Merest we caasnua to 4c,tw an on N7b sew ja ognr at us teohar,) ir1. , rate pwk*d tar in nor Nola. This Note shall be gVvCm0 by. toe15tiued and enfwM In accordance with the taws d ai CamronwsLti Of Peruayearla, era when applicable, lWwal law. tuGtlT OF SETOFF. 9araws Warms to La der a cwwachw: scorer i awed 114 and f aabY ass p q conveys, detivss pIW(? andtrare ers b Lender as Bono-aft vVM fat and - - in and tin, awwwoes asawe5 w,n Lender (whether aawr,ur9, Wwig , or slur cow a®Unt, ndudwV to wnvGafon and anaala held Jointly ndh swnmw 01511 and as accounts Bonoww nay span In err fours. aviuOrq ho+vm as IRA and tup gll aasurk; Ad all I mt aesaunes for wyaln the gad of a security irdsre9 rode be pd?nled by law. Borrower auewizs Lendw. to the aderd perm - by aPPlobte ew.to efw of saber and sera vwnp an ea Nob against any and all such accouns. COLLATERAL_ The Hoe's sensed byr in adOaat b ary csher maetaral a Mor1(p9e dated February 4.2000, to Lender on real prapaty footed in CLMSERAPQCvxq.CaTerawmMC#Pwvs*ane.alrele,v and mcdNci s of whch are hereby Incorporated and roads a pad of this NOB. FWANCLtL w/FORNVITION PFONSION. Bonowar agrees to vny5er any frtanml and 02w business aft 00 taonnterrvq Bonower trial Lender nay reakay wan lima b wre, such as annual ono waerkn IwanWn sumer errs (a or wricn sras to prepared in acvdarv wed G3 he ally aasxptsd . acorrreak9 prcoyles)and- - -ircomo yes reewrs. YEAR 2020 COMPLIANCE. Barran has reviewed tie areas casein a brailess and oparabom which could be adwrsaty affected by. and has dawUped a s drwlmeq a pnt?ara to address on a tinny basis the rsk that assn wmwar app4atixs mad by Borrower may be cable to ramI ' and padoma aaparty dale-sorubw harSens iwoNip dams prow to and after Downtior 31. 19M (the 'Yaw 7008 Problam% JL The VON 20M Probtan we not reslL and s not reasonably apo,sd to result. in any nafaial acewse enact m ve arakass, POI I --. asas, arandat Cal>borl resriR d bb11ratiaa or SnmrnecS d Bo rbwar. or the abW of Borrower to dal andporokaey pay orpedonn is obligations hwaunder and tidier the r7stated OmpnwdL EXHIBIT izi? PAGE ____ I OF °1 PACES PROMISSORY NOTE Page 2 aContfrw If .. ., hider nsY dWay 'rforuo entoldrg am/ of D fgnts or rertgdps finder LAS Nob wiWUt WONT Vim: BaroweraAd vtY'.- ,? . chow of endorses this Nob. to Bs WON aeewed by low. WzW prasentmefd, demand la pop.0 prddst arld no§ w d ::, In t s be. d U* N--40. and WAM Ww was egxwsSry SYOd'n wdk v. no parry who signs WAS Nora, whewsr p/Irtke ,= wkW or WWOr , Sisa W reMaW tom TsbWy. Al SUCK parks agMe dal Lendw may rW*W O aSblw (nPSfedry wnd,''?•-_?i In,'ar releaew wiry piety or Alxrenbr or CLILeioat; or UVOr, ba la reads upon or perbd Londefs me wtly.snoo est In Re - :; adios doomed necess y by Lander wlfhall Ba consent of or room to aM one. AI such puk4 Wed wool fort L"M ';. ;.` he wiserd d or notice to anyone other then the parry with whom the moStabon Is madw. II any pwW.'pf this Nola ti ^ . Ue u!wnt able, a am not eked tls aNa ceabewy d any odd pnwidions of wIY Nob. . R. BORROWER HERESY VRREVOCASLY AUTHORS AND EMPOWERS ANY ATIORNEY OR THE PiROTHONOTARY.:_. - IN THE COMMONWEALTH OF PENNSYLVAIA. OR E LSEWHERE, TO APPEAR AT ANYTIME FOR BORROWER AFTER OW AND WITH OR WITHOUT COMPLAINT FRED. AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST : RE PRINCIPAL SAIANCE'OF.Tms NOTE, ALL ACCRUED INTEREST, LATE CHARGES. AND ANY AND ALL AMOUNTS'.: BY LENDER RELATING TO ANY. COLLATERAL SECURING THIS NOTE TOGETHER WITH KtEAEST ON SlA]V H COSTS OF SLAT. AND AN ATTORNEY'S COMMISSION OF. TEN PERCENT (10%) OF THE U'FAIO PRINCIPAL'.— NIEREST FOR COLLECTION. BLIT IN ANY EVENT NOT LESS THAN FIVE HIINDRED DOLLARS ISM) ON WHCH"''.', ENT IN FULL OF ALL AMOUNTS OL E UNDER THIS NOTE. BOFDROWEA HEREBY WANES ANY RIGHT BORROWER TO A' NEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT. V(CEPT ANY. NOTICE AND/OR- ER 'APPLICABLE LAW WITH RESPECT TO. EXECUTION OF THE JUDGMENT. AND STATES THAT. OTHER A. DER SPECIFICALLY CALLED ';HIS CONFESSION OF JIDOMENT PROVISION TO SORROWERS ATTENTION OR., (RESENTED SY INDEPENDENT LEGAL COUNSEL. VOTE BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE BORROWER AGREES TO AND ACKNOWLEDGES RECEIPT OF A COMPLETED COW OF THE NOTE '. - . . AM AND SEALED BY THE UNDERSIGNED. MO.RSe US NKa T.M. CII.Vw. a2e0a1200e 61FTe ,%.M nargnOrHTf6PA.Un Ea2eFa2Y fts"Lil"IT1.LM O2r.w % : L": PNCBAN< Date of this Notice: April 1, 2003 ROBERT S REED 685 STATE ST LEMOYNE, PA 17043 ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S MORTGAGE ASSISTANCE PROGRAM (HEMAP) may be able to help save your home. This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you meet with the Counseling Agency. The name, address and phone number of Consumer Credit Agencies serving your County are listed at the end of this Notice. If You have any questions, you may call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons with impaired hearing can call (717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney 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 CONTENIDO 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: ROBERT S REED PROPERTY ADDRESS: 685 STATE ST. LEMOYNE, PA 17043 LOAN ACCT. NO.: 040-01-008014137141 3 ORIGINAL LENDER: PNC EXHIBIT CURRENT LENDER/SERVICER: PNC Bank, NA A member of The PNC Financial Services Group PACE o ? PAGES Consumer Loan Center 2730 Liberty Avenue Pittsburgh Pennsylvania 15222 G PN CBAN< HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE 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. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR 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 lender, 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 Program Application with one of the designated consumer 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 MUST 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. A member of The PNC Financial Services Group Consumer Loan Center 2730 liberty Avenue Pittsburgh Pennsylvania 15222 PNCBAN< 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 filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT Bring it up to date): NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 685 STATE ST, LEMOYNE, PA 17043 IS SERIOUSLY IN DEFAULT because: YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: Monthly pavments in the amounts of $863.94 for each of the months from December 2002 through March 2003. Other charges (explain/itemize): Late Charges for $301.43 TOTAL AMOUNT PAST DUE: $4.058.62 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 $4.058.62, PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAYS PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: PNC Bank, NA, 2730 Liberty Avenue, 2nd Floor, Mailstop: P5-PWLC-02-I, Pittsburgh, PA 15222 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 exercise its rights to accelerate the mortgage 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 upon your mortgaged property. IF THE MORTGAGE IS FORECLOSED UPON - The mortgage 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 actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If You cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney fees. OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mof p&& r of The PNC Financial Services Group Consumer Loan Center 2730 Liberty Avenue Pittsburgh Pennsylvania 15222 G PNCBAN< 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 and prevent the sale at any time up to one hour before the Sheriff s Sale. You may do so by paving the total amount then past due, plus any late or other charges then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with Sheriff s Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing 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 Sheriff s Sale of the mortgaged property could be held would be approximately six 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: PNC Bank, NA Address: 2730 Liberty Avenue, 2nd Floor, Mailstop: P5-PWLC-02-I, Pittsburgh, PA 15222 Phone Number: (412) 762-1617 or 1-800-878-0027 Contact Person: Susan Tomko 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 Sheriff s 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 not sell or transfer your home to a buyer or transferee who will assume the mortgage debt. 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. Very truly yours, Jeff Tomcik PNC Bank, National Association cc: 1st Class U.S. Maip pmet1sg®fIhpflK Financial Servims Group CONSUMER CREDIT,C"UN&E iWG2kGEdtlOU/IG6,&EW£Rif YO&WWOUNTY (see attached) Cumberland Countv Urban League of Metropolitan Harrisburg 2107 N 6 St Harrisburg, PA 17101 (717) 234-5925 Fax(717)232-4985 YWCA of Carlisle 301 G St Carlisle, PA 17013 (717) 243-3818 Fax(717)243-3948 Consumer Credit Counseling Service 2000 Linglestown Rd Harrisburg, PA 17102 (717) 541-1757 Financial Counseling Service of Franklin County 31 WPSt Waynesboro, PA 17268 (717) 762-3285 JOSEPH J. BERNSTEIN (PA, FU ROBERT S.,BLRNSTEIN(PA FL, WV, NY) B E R N ST E I N NICHOLAS D D. KRAWEC (PAPA, . NO. OH) LORI A. GIBSON (PA) LAW FIRM, P.C. TRADITION - TECHNOLOGY - TALENT MARLENE J. BERNSTEIN (PA, FU CHARLES E. BOBINIS (PA, WV) JON A. MCKECHNIE (PA) EDWARD G. WEHRENBERG (PA) KIRK B. BURKLEY (PA) (STATES OF ADMISSION) SUITE2200GULF TOWER. PITTSBURGH. PENNSYLVANIA 15219-1900 -806927-3197 412-456-8100 FA%412-456-8135 W W W.e ERNSTEINLAW.COM MAIL@BERNSTEINLAW.COM Rae Ann Reed September 10, 2003 685 State Street Lemoyne, PA 17043 ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S MORTGAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with You when you meet with the Counseling Agency. The name, address and phone number of Consumer Credit Counseling Agencies serving your County are listed at the end of this Notice. If you have any questions, you may call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons with impaired hearing can call (717) 780-1869). This Notice contains important legal information. If You have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in Your area. The local bar association may be able to help you find a lawyer. LA NOTIFICACION EN AD]UNTO ES DE SUMA IMPS §jjES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CA 1 COMP EL CONTENIDO DE ESTA NOTIFICACION OBTENGA [ NA ION INMEDITAMENTE LLAMANDO ESTA AC"jI- {RE-TdidSY ANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA, PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO September 10, 2003 Page 2 "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): Rae Ann Reed PROPERTY ADDRESS: 685 State Street, Lemoyne, PA 17043 LOAN ACCT. NO. 040-01-008014137141 ORIGINAL LENDER PNC, NA CURRENT LENDER/SERVICER PNC BANK, NA HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE 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. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES--if you meet with one of the consumer credit counseling agency 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 country in September 10, 2003 Page 3 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 lender, 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 MUST 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 filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT--The MORTGAGE debt held by the above lender on your property located at: 685 State Street, Lemoyne, PA 17043 IS SERIOUSLY IN DEFAULT because: YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: December 2002 through September 2003 @$8,639.40 and late charges @$753.60 for a total of $9,393.00 Other charges (explain/itemize):Tide Search: $100.00 Attorney Fee: 50.00 TOTAL AMOUNT PAST DUE: $9,543.00 September 10, 2003 Page 4 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 15 $9,543.00, 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 and sent to: PNC BANK, NA, 2730 LIBERTY AVENUE, 2ND FLOOR, MAILSTOP P5- PWLC-02-1, Pittsburgh, PA 15222 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 exercise its rights to accelerate the mortgage 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 upon your mortgaged property. 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 fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAYS period, you will not be required to pay 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 and prevent the sale at any time up to one hour before the Sheriffs Sale. You may do so by paying the total amount then past due, plus any late or other charges then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriffs Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing 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 3 months after 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. September 10, 2003 Page 5 HOW TO CONTACT THE LENDER: Name of Lender: PNC BANK, NA Address: 2730 LIBERTY AVENUE, 2ND FLOOR, MAILSTOP P5-PWLC-02-1, Pittsburgh, PA 15222 Phone Number: 1-800-878-0027 Contact Person: ]eff Tomcik 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 or _X_ may not (CHECK ONE) 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. September 10, 2003 Page 6 CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY CUMBERLAND COUNTY Urban League of Metropolitan Harrisburg YWCA of Carlisle 2107 N. 6th Street 301 G Street Harrisburg, PA 17101 (717) 234-234-5925 Fax (717) 232-4985 Carlisle, PA 17013 (717) 243-3818 Fax (717) 243-3948 Consumer Credit Counseling Service 200 Linglestown Road Harrisburg, PA 1710 (717) 541-1757 Finan cial Counseling Service 31 W 3rd Street Waynesboro, PA 17268 (717) 462-3285 NOTICE THIS IS A COMMUNICATION FROM A DEBT COLLECTOR AND IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. THIS LAW FIRM WILL PRESUME THIS DEBT TO BE VALID UNLESS YOU DISPUTE THE VALIDITY OF ALL OR ANY PART OF IT WITHIN 30 DAYS OF RECEIPT OF THIS LETTER. IF YOU NOTIFY US IN WRITING THAT YOU DISPUTE ALL OR A PORTION OF THIS DEBT, WE WILL OBTAIN AND SEND TO YOU VERIFICATION OF THE DEBT OR A COPY OF ANY JUDGMENT AGAINST YOU ARISING OUT OF THIS DEBT. ALSO. UPON WRITTEN REQUEST WITHIN 30 DAYS AFTER RECEIPT OF THIS NOTICE, WE WILL PROVIDE YOU WITH THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM THE CREDITOR NAMED ABOVE. WE RESERVE RIGHT TO TAKE LEGAL ACTION WITHIN THE 30 DAY VALIDATION PERIOD IF OUR CLIENT INSTRUCTS US TO DO SO. Very truly yours, BERNSTEIN LAW FIRM, P.C. Jeanne A. Ni en DIRECT DIAL: (412) 456-81 19 BERNSTEIN FILE NO F0038737 VERIFICATION The undersigned does hereby verify subject to the penalties of 18 Pa. C.S. §4904 relating to unswom falsification to authorities, that she is the Attorney Relations Manager of PNC Bank, N.A., Plaintiff herein, that he is duly authorized to make this Verification, and that the facts set forth in the foregoing COMPLAINT are true and correct to the best of her knowledge, (Sign in Blue Ink) 70 ft- /x\A: W D f9. W3 - 'V lz? C? T I L? r7 C,? co W PJ =i ti.7 ov) SHERIFF'S RETURN - REGULAR CASE NO: 2003-05794 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND PNC BANK N A VS REED ROBERT S SR ET AL ROBERT BITNER , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon REED ROBERT SR the DEFENDANT , at 1935:00 HOURS, on the 6th day of November , 2003 at 685 STATE STREET LEMOYNE, PA 17043 by handing to REA ANN REED, WIFE 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 18.00 Service 11.04 Affidavit .00 Surcharge 10.00 .00 39.04 Sworn and Subscribed to before me this day of 72liuc,„?u c O2 =3 A.D. C LC + - 7P othonotary So Answers: R. Thomas Kline 11/07/2003 BERNSTEIN LAW FIRM Bye C? ,G Deputy Sheriff SHERIFF'S RETURN - REGULAR CASE NO: 2003-05794 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND PNC BANK N A VS REED ROBERT S SR ET AL ROBERT BITNER , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon REED RAE ANN the DEFENDANT , at 1935:00 HOURS, on the 6th day of November , 2003 at 685 STATE STREET LEMOYNE, PA 17043 by handing to REA ANN REED 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 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and Subscribed to before me this 11f 6 day of ?l v t rw?t? -.2 vA3 A.D. 6) )hlz?zl ?rothonotary So Answers: R. Thomas Kline 11/07/2003 BERNSTEIN LAW FIRM By. ?eputy eriff PNC BANK, N.A., IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CASE NO. 03-5794 V. ROBERT REED, SR. and RAE ANN REED, Defendants CIVIL ACTION - LAW NOTICE OF STAY TO THE PROTHONOTARY OF THE COURT OF COMMON PLEAS: All proceedings concerning the above-referenced action should be stayed pursuant to the filing of a Petition under Chapter 13 of the United States Bankruptcy Code in the Middle District of Pennsylvania to Case No. 1-04-00337, by Robert S. Reed and Rae Ann Reed, the Defendants in the within action. A copy of such Petition and the Notice of Bankruptcy Case Filing is attached. This Notice is entered for the limited purpose of providing notice of the pending Chapter 13 Bankruptcy case and is not intended to be an entry of appearance by the undersigned. Respectfully submitted, CUNNINGHAM & CHERNICOFF, P.C. Date: January M, 2004 Robert E. Cheni? .E quirre/?7'" Pennsylvania AttomcyTd: T?F6': 23380 2320 North Second Street 6 P. O. Box 60457 Harrisburg, PA 17106-0457 (717) 238-6570 United States Bankruptcy Court ' MIDDLE District Of p (M intlividual, enter last. Flnt. Middle): E1ViV3yLyA XZA J /ERT ts Name of Joint Debtor 'nes us(SPouse)e.ast. Fist Middy); maiden, athe e last 6 years REED, pit, ANtlr 2T S, All Other rT R34f^=lode m, games used by the Joint De 6 SERVIaka lia4Z C? ' and trade names): blot in t aka X417 ONENTS LDNo aka WX RACING CO ); DSPONENTS 685 STATE- STREET (No. d Street Ciry, Slate lo_ is Code, LE?rOrNZ PA 27043 County of Residence or of the Principal Place of Business: Nailing Address of Debtor 4r ?MBERD iA,3}E dir•,erem from street addresa): Location of Principal Assets of (Ir Oirrerent from street address above; Business Debtor NOT APPLICABLE r more Nan - one, state ao): Years ?wress o/Joint Debtor (NO, d -81,e-et p 685 STATE S sh TREET N. State a ZIP Code): Z'PMOYNE PA 17043 Vence oor of the - of Bueine.._. _ SADg .,olnt Debtor (ddirtarent rro tl P a information R Venue (Check any appllcatle bo e x) garden gthe ® Debtor has Debtor (Check been do Idled or has had the APP??C BbjeW'BOXeS pi precedm m a residence, g the date of this petition or for principal lace ? There is a bankru a longer art p of business, ptcy cast concernin Part of such 180 d or Principal assets in this District for g debtors affiliate, aYS than in any other District. 180 da Type of Debtor general partner, or Ys immediately ® Individual(s) (Check all boxes that apply) Partnership pending in this District. ? Y) Corporation ? Partnershi ? Railroad ? p ? Oth Stockbroker er ? Commodity, B k ro er ? Clearing Ba k Nature of Debts ® Consumer/No n Check one box) n-Business Chapter 11 S El Business mall Business ? Debtor is a small 6 ustness as d ? Debtor i (Check all boxes that apply) efined in 11 U .S.C. § 101 s and elects 11 to be considered U.S.C. § 1121(e) (Optio a small business u d nal) Statistical/Ad n er ministrative It Chapter or section of Bankrupt, Code Under the Petition is Filed y Which ? Chapter 7 (Check one box) ? Chapter 9 ? Chapter 11 ® Chapter 13 ? Sec. 304 - ? Chapter 12 Case ancillary to fore' 9n proceeding Fdmg Fee (Check one box) ® Full Filing Fee attached ? Filing Fee to be paid in installments (Applicable to individuals only) Must attach signed application for the consideration certifying that the debtor is court's unable fo pay fee except ormahon Rule ). See Ofrcial For C1 Debtor estimates that fund (Estimates only) 1006(b m No. 3. Pt in installments. s will be available for distribution to unse ® Debtor estimates that, after an cured creditors. Paid, there will be no funds y exempt property is excluded available for distribution to and admitors. live expenses unsecured creditors. Estimated Number of Creditors Estimated Assets 30 to sso,ool to $50,000 $100,000 Estimated $0 to 550,001 to $50,000 $100,000 ? ? 1.15 1649 50-99 ? ? ® 100-199 200.999 ? 5100.001 to $500,001 ro $5.0 'Co S" mllllon ? ? 3100.001 to $500.001 to $500000 31 million $1,000001 to 3 310,000,0 01 to S5 10 Million 0, coo ,001 to Sao mlllicn M1lor More man ? 3100 million ? 5100 million ? ED 31.000.001 to 310,000,001 t° 510 million ? 550,000,001 350 minion 3 to 100 millon More Nan St0 ? ? 0O Ilion THIS SPACE Is FCR C WIT USE ONLY ti _ 1 r_. c, C.C " Voluntary Petition Name of Debtor(s): (This page must be completed and riled in every case) ROBERT S REED and FORM Bt, Page 2 Location Where Filed: Name of kF Signature(s) of Debtor(s) (Individual/Joint) I declare under penalty of perjury that the information provided in this petition is true and correct. [If petitioner is an individual whose debts are primarily consumer debts and has chosen to file under chapter 7] 1 am aware that I may proceed under chapter 7, 11, 12, or 13 of title 11, United States Code, understand the relief available under each such yhaoter, and choose to proceed under chapter 7. 1 request relief in accordance with the chapter of title 11, United States Code, ecifed m this petition. X ?E n gnats c D."cr S 9 F. If '.'n' Dector Case Number. Date Filed: Case Number: ? Date Exhibit A (To be completed if debtor is required to file periodic reports (e.g., forms 10K and 10% with the Securities and Exchange Commission pursuant to Section 13 or 1 Slid) of the Securities Exchange Act of 1934 and is requesting relief under Chapter 11) ? Exhibit A is attached and made a part of this petition Exhibit 8 (To be completed if debtor is an individual whose debts are primarily consumer debts) I, the attorney for the petitioner named in the foregoing petition, declare that I have informed the petitioner that [he or she] may proceed under chapter 7, 1, 12, or 13 of title 11, United States Code, and have expiai t e relief avei?bler under egph such chapter. ?_vt= Telepnoca NumCer pf not represented Sy attomay) Sgnafura of Attsomey Si tssCa fAttorn y x / t gnatura of gttomey (or •t ROBERT E CHERNZCOFF 233 Printed Name or Attomey for Debtdrlsl CUNNZNGHAM 6 CHERNZCOFF PC F rm Name 2320 NORTH SECOND STR.z,ET Adtlress PO BOX 60457 RARRZSBDRG PA 17106-0457 (717) 238-6570 t/?f (l l.t Telephone Nun Date F Signature of Debtor (Corporation/Partnership) I declare under penalty of perjury that the information provided in this petition is true and correct, and that I have been authorized to file this petition on behalf of the debtor. The debtor requests relief in accordance with the chapter of title 11, United States Code, specified in this petition. Signature of Authorized Individual X Punted Name of Authcnzed Indivkuai Date Does the debtor cwn or have possession of any property that poses or is alleged to pose a threat of imminent and identifiable harm to public health and safety? ? Yes, and exhibit C is attached and made a part of this petition. ® No Signature of Non-Attorney Petition Preparer I certify that I am a bankruptcy petition preparer as defined in 11 U.S.C. § 110, that I prepared this document for compensation, and that I have provided the debtor with a copy of this document. Punted Name of ean-r 1-1 Pe@ion Preparer Social Se<arrty Numcer Names and Social Security numbers of all other individuals who prepared or assisted in preparing this document: If more than one person prepared this document, attach additional sheets conforming to the appropriate official form for each person. X 55^aNra of Bankmctcf Petition Preparer Title of Auftnzed Individual Date A bankruptcy petition preparers failure to comply with the provisions of title 11 and the Federal Rules of Bankruptcy Procedure may result in tines or imprisonment or both 11 U.S.C. § 110; 18 U.S.C. § 156. USBC PAM - LIVE - V2.3 - NoticeOfFiling United States Bankruptcy Court Middle District of Pennsylvania Notice of Bankruptcy Case Filing A bankruptcy case concerning the debtor(s) listed below was filed under Chapter 13 of the United States Bankruptcy Code, entered on 01/21/2004 at 4:28 PM and filed on 01/21/2004 at 3:36 PM. Robert S Reed 685 State Street Lemoyne, PA 17043 SSN: xxx-xx-7350 aka Robert S Reed dba Credit Ranch Auto Sales & Service Rae Ann Reed 685 State Street Lemoyne, PA 17043 SSN: xxx-xx-9282 aka NMI Components aka NMI aka NIMI Racing Components The case was filed by the debtor's attorney: The bankruptcy trustee is: Robert E Chernicoff Cunningham & Chemicoff PC 2320 N Second St PO Box 60457 Harrisburg, PA 1 7 1 06-045 7 717-238-6570 Charles J DeHart, III PO Box 410 Hummelstown, PA 17036 717-566-6097 The case was assigned case number 04-337 to Judge Mary D France. Page 1 of 2 property. filing of a bankruptcy case automatically stays certain actions against the debtor and the debtor's If you attempt to collect a debt or take other action in violation of the Bankruptcy Code, may be penalized. you If you would like to view the bankruptcy petition and other documents filed by the debtor, they are available at our Internet home page http://www.pamb.uscourts.gov/ or at the Clerk's Office, U.S. Bankruptcy Court, PO Box 908, Harrisburg, PA 17108. https:Hecf.pamb.uscOurts.gov/cgi-bin/NoticeofFiling.pl? 129402 1/28/04 [JSBC PAM - LIVE - V2.3 - NoticeOfFiling Page 2 of 2 You may be a creditor of the debtor. If so, you will receive an additional notice from the court setting forth important deadlines. Arlene Byers Clerk, U.S. Bankruptcy Court PACER Service Center Transaction Receipt 01/28/2004 13:17:56 PACER Login: cc 1465 Client Code: Descri lion: Notice of Filing Case Number: 1:04-bk-00337-MDF Vjble Pages: ?? Cost: 0.07 https://ecf.pamb.uscourts.gov/cgi-bin/NoticeOfFiling.pl?129402 1/28/04 CERTIFICATE OF SERVICE I, Holly P. Siekerman, Paralegal, hereby certify that on Januarya?I, 2004, a true and correct copy of the foregoing NOTICE OF STAY was served by first-class mail, postage prepaid on the following: Marlene J. Bernstein, Esquire BERNSTEIN LAW FIRM, P.C. Suite 2200 Gulf Tower Pittsburgh, PA 15219 CUNNINGHAM & CHERNICOFF, P.C. Holly . Siekerman, Paralegal ? w c_- a c o z j r V N ? r-n Gwl Curtis R. Long Prothonotary office of the Protbonotarp Cumberlanb Countp Renee K. Simpson Deputy Prothonotary John E. Slike Solicitor b:3 - S'72y CIVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 5TH DAY OF NOVEMBER 2007 AFTER MAILING NOTICE OF INTENTION TO PROCEED AND RECEIVING NO RESPONSE - THE ABOVE CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA R C P 230.2. BY THE COURT, CURTIS R. LONG PROTHONOTARY One Courthouse Square • Carlisle, Pennsylvania 17013 • (717) 240-6195 • Fax (717) 240-6573