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HomeMy WebLinkAbout08-2507THE WASHINGTON SAVINGS BANK, IN THE COURT OF COMMON PLEAS OF FSB CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. DOCKET NO. D$ - a5o? 0 1 V I t TZ-r? KEVIN J. KROVICH, Defendant CIVIL ACTION - MORTGAGE FORECLOSURE NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 1 a THE WASHINGTON SAVINGS BANK, IN THE COURT OF COMMON PLEAS OF FSB : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. : DOCKET NO. 0j_ -? fO? d'd c_? KEVIN J. KROVICH, Defendant CIVIL ACTION - MORTGAGE FORECLOSURE COMPLAINT AND NOW, comes the Plaintiff, The Washington Savings Bank, FSB, by and through its attorneys, the offices of Fenstermacher and Associates, P.C. and files this Complaint, as follows: 1. Plaintiff, The Washington Savings Bank, FSB (hereinafter "Plaintiff'), is a national banking association having an office at 4201 Mitchellville Road, Bowie, Maryland, and brings this action to foreclose the mortgage dated October 1, 2001, between Defendant Kevin J. Krovich as mortgagor and Plaintiff as Mortgagee, which is recorded in the Office of the Recorder of Deeds of Cumberland County, Pennsylvania, in Mortgage Book Volume 1735, Page 3154. 2. Defendant Kevin J. Krovich resides at 109 North York Street, Mechanicsburg, Pennsylvania. 3. The mortgage secures Defendant's certain note dated October 1, 2001, in the amount of Fifty Five Thousand and 00/100 ($55,000.00) Dollars, payable to Plaintiff in monthly installments with simple interest at the rate of 8.750 percent per annum. A copy of the mortgage and note is attached as Exhibit "A." 4. The land subject to the mortgage is: ALL THAT CERTAIN tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BOUNDED on the North by land now or formerly of The First Bank and Trust Company of Mechanicsburg, Pennsylvania, Executor of Harry S. Hamilton; on the East by York Street; on the South by land now or formerly of W.H. Aulthouse; and on the West by Wilson Alley. Having a frontage on York Street of twelve (12) feet two (2) inches and extending in depth and even width of one hundred twenty (120) feet to an alley. HAVING THEREON ERECTED a frame dwelling known and numbered as 109 North York Street, Mechanicsburg, Pennsylvania. BEING THE SAME PREMISES WHICH Charles D. Ditmer, Jr., and Susan M. Ditmer, husband and wife, by Deed dated January 31, 1995 and recorded February 3, 1995 in the Office of the Recorder of Deeds in and for Cumberland County in Deed Book 118 at Page 302, granted and conveyed unto Kevin J. Krovich, mortgagor, herein. 5. Defendant is the fee simple owner of the land subject to the mortgage and Defendant's address is 109 North York Street, Mechanicsburg, Pennsylvania. 6. The mortgage is in default because of Defendant's failure to make the payment due October 28, 2004 and the following amounts are due on the mortgage: Principal balance totaling $53,827.00 Interest through 04/02/08 at a rate of 8.75% totaling $17,675.19. This figure increases daily. Escrows advanced in the amount of $1,869.03. Attorneys fees and costs in the amount of $808.32. Total of all above items equals $74,161.54 as of 04/02/08. 2 7. Plaintiff has fully performed in accordance with the provisions of the Act of January 30, 1974, Pub. L. 13, No. 6, § 403 (41 P.S. § 403). A Notice of Intention to Foreclose Mortgage was not forwarded to Defendant as the original bona fide principal amount of the residential mortgage, as defined in 41 P.S. § 101, was in excess of fifty thousand dollars ($50,000). 8. Plaintiff did forward a letter titled NOTICE OF DEFAULT AND RIGHT TO CURE DEFAULT to Defendant dated October 28, 2004 via certified mail. This letter served to provide notice to Defendant of default on the credit transaction and the action required to correct the default within thirty (30) days of the date of said notice. The letter further specified that failure to cure the default as specified would result in acceleration of the sums, foreclosure by judicial proceeding and sale of the property. A copy of the notice is attached as Exhibit "B." 9. Plaintiff did forward a letter of acceleration to defendant on November 16, 2004 demanding immediate repayment in full of all sums due under the Note and Mortgage. Defendant failed to comply with said letter. A copy of the letter is attached as Exhibit "C." 3 WHEREFORE, Plaintiff requests the Court to enter judgment of mortgage foreclosure against the mortgaged property for the amount set forth above, together with interest thereon, all other amounts, including professional fees, advanced by Plaintiff. Respectfully submitted, FENSTERMACHER AND ASSOCIATES. P.C. By: Dated: Jbhn Fenstermacher §bpreme Court I.D. #29940 5115 East Trindle Road Mechanicsburg, PA 17050 (717) 691-5400 Attorney for Plaintiff 4 VERIFICATION I, Jeff Whittaker, Senior Vice President of The Washington Savings Bank, FSB, hereby certify and verify that the facts set forth in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I understand that any false statements herein are subject to the penalties of 18 Pa. C. S. §4904 relating to unsworn falsification to authorities. DATE: ? Jeff V?ittaker, Sr. Vice President The shington Savings Bank, F.S.B. EXHIBIT 'A' Loan ID # PP0204SC NOTE October 1st, 2001 Mechanicsburg, PENNSYLVANIA [Date] [City] [State] 109 N. York Street, Mechanicsburg, PENNSYLVANIA 17055 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $55, 000.00 (this amount is called "Principal"), plus interest, to the order of the Lender. The Lender is The Washington Savings Bank, FSB . I will make all payments under this Note in the form of cash, check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder. " 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 8.750 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the 1st day of each month beginning on November 1st, 2001 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on October 1st, 2031 , I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 4201 Mitchellville Road, Suite 300, Bowie, MD 20716 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $432.69 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of Fifteen calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 5.00 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. MULTISTATE F UM RATE NOTE--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3200 1/01 (page 1 of 2 pages) AA1CN1 - 11162000 www.MortgageBankingSystems.com Loan ID # PP0204SC 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. Kevin J. Krovich -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower [Sign Original Only] MULTISTATE FIXM RATE NOTE-Single Family-Fannie Maefteddie Mac UNIFORM INSTRUMENT Form 3200 1/01 (page 2 of 2 pages) AA1CN2 - 11162000 www.MortgageBankingSystems.com Y ?AJp?? RECORD AND RETURN TO THE WASHINGTON SAVINGS BANK, FSB 4201 NUTCHELLVILLE ROAD, SUITE 300 BOWIE, MD 20716 lC'J?i:''`l= DEEDS 00UNITY-FA% tol OCT 12 Pal 12 [Space Above 11b Line For Recording Data] Loan ID # PP0204SC MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated October lot, 2001 , together with all Riders to this document. (B) "Borrower" is Kevin J. Krovich . Borrower is the mortgagor under this Security Instrument. (C) "Lender" is The Washington Savings Bank, FSB . Lender is a CORPORATION organized and existing under the laws of THE MUTED STATES OF AMERICA Lender's address is 4201 Mitchellville Road, Suite 300, Bowie, MD 20716 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated October let, 2001 The Note states that Borrower owes Lender Fifty Five Thousand and no/100 -- - - - - - - - - - - - - - - - - - - -- - - - - Dollars (U.S. $ 55, 000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than October lot, 2031 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: 0 Adjustable Rate Rider ? Condominium Rider ? Second Home Rider ? Balloon Rider ? Planned Unit Development Rider ? Other(s) [specify] ? 1-4 Family Rider ? Biweekly Payment Rider Initials: PENNSYLVAMA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 1 of 14 pages) PA1CM1 - 11152000 www.MortgageBanldngSystems.com BKl735PG3154 Loan ID # PP0204SC (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (n "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. Q) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. Up "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. M "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (1) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan,. and all renewals, extensions and modifications of. the Note; and (ii) the performance of Borrower's covenants and .agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender the following described property located in the County of Cumberland [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] FOR LEGAL DESCRIPTON SEE SCHEDULE "A" ATTACHED AND MADE A PART HEREOF PENNSYLVANIA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT PA1CM2 -11152000 Initials: Form 3039 1/01 (page 2 of 14 pages) www.MortgageBankingSystems.com BK 1735PG3155, which currently has the address of Pennsylvania 17 0 5 5 [Zip Code] Loan ID # PP0204SC 109 N. York Street, Mechanicsburg , [Street] [City] ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. Initials: PENNSYLVANIA--Single Family-Famde Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (pa 3 of 14 pages) PA1CM3 -11152000 www.MortgageBankingSystems.com B'1735PG 3I56 Loan ID # PP0204SC If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender, may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined Initials: PENNSYLVAMA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (Da e 4 of 14 pages) PA1CM4 - 11152000 www.MortpgeBankingSystems.com BIB 1735PG3157 Loan ID # PP0204SC under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify. Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. Initials: PENNSYLVANU--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (pa VS of 14 pages) PA1CM5 - 11152000 www.MortgageBankingSystems.com BK1735PG 3158 Loan ID # PP0204SC All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Initials: PENNSYLVAMA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 6 of 14 pages) PA1CM6 -11152000 www.MortgageBankingSystems.com 9Ki735PG31559 Loan ID # PP0204SC If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is Initials: _/5 PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUM ENT Form 3039 1/01 (page L7 of 14 pages) PA1CM7 - 11152000 www.MortgageBaaldngSystems.com BK ! 735PG3 160 Loan ID # PP0204SC obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage -Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance. " Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may. include the right to receive certain disclosures, to request. and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the Initials: PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 8 of 14 pages) PA1CM8 - 11152000 www.MortgageBankingSystems.com ?KI735PG3161 Loan ID # PP0204SC amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's Initials: PENNSYLVANIA-Single Family-Fannie Mae/Fred&e Mac UNIFORM INSTRUMENT Form 3039 1101 (page 9 of 14 pages) PA1CM9 - 11152000 www.MortpgeBanldngSystems.com BK I 735PG3 16.2 Loan ID # PP0204SC rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those Initials: PENNSYLVANU--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 10 of 14 pages) PAICMA - 11152000 www.MortgageBankingSystems.com BKI735PG3163 Loan ID # PP0204SC beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of. (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time Initials: PENNSYLVANU--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 11 of 14 pages) PAICMB -11152000 www.MortgageBanldngSystems.com BiK 1735PG3164. 6 , I S Loan ID # PP0204SC period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as deemed in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). Lender shall notify Borrower of, among other things: (a) the default; (b) the. action required to cure the default; (c) when the default must be cured; and (d) that failure to cure the default as specified may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property. Lender shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. If the default is not cured as specified, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, attorneys' fees and costs of title evidenbe to the extent permitted by Applicable Law. 23. Release. Upon payment of all sums secured by this Security Instrument, this Security Instrument and the estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge and satisfy this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for Initials: PENNSYLVAMA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 12 of 14 pages) PAICMC - 11152000 www.MortgageBankingSystems.com B 1735PG316S Loan ID # PP0204SC releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower, to the extent permitted by Applicable Law, waives and releases any error or defects in proceedings to enforce this Security Instrument, and hereby waives the benefit of any present or future laws providing for stay of execution, extension of time, exemption from attachment, levy and sale, and homestead exemption. 25. Reinstatement Period. Borrower's time to reinstate provided in Section 19 shall extend to one hour prior to the commencement of bidding at a sheriffs sale or other sale pursuant to this Security Instrument. 26. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to acquire title to the Property, this Security Instrument shall be a purchase money mortgage. 27. Interest Rate After Judgment. Borrower agrees that the interest rate payable after a judgment is entered on the Note or in an action of mortgage foreclosure shall be the rate payable from time to time under the Note. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. - (Seal) Kevin J. rovich -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower PENNSYLVANIA--Single Family-Famde Mae/Freddie Mac UNIFORM INSTRUMENT PAICMD - 11152000 Form 3039 1/01 (page 13 of 14 pages) www.MortgageBauldngSystems.com B V 1735PG3166 , , Loan ID # PP0204SC Certificate of Residence I do certify that the precise address of the within-named mortgagee is 4201 Mitchellville Road, Suite 300, Bowie, MD 20716 Witness my hand this lot day of October, 2001 of COMMONWEALTH OF PENNSYLVANIA Cc e rn ,la r)d County ss: On this, the lot day of October, 2°9Q1i , before me, the undersigned officer, personally appeared Kevin J. Krovich known to me (or satisfactorily proven) to be the person(s) whose name(s) is subscribed to the within instrument and acknowledged that executed the same for the purposes herein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. My Commission Expires: NOTARIAL SEAL nc John R. Fensterma dw, Notary Pub Mechankxburg, Cumberland County PENNSYLVANIA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT PA1CME - 11152000 Initials: Le Form 3039 1/01 (page 14 of 14 pages) www.Mortg2geBanldngSystems.com I Certify this to be recorded "„ Recorder of Deeds In Cumberland County PA I YY V o 1 7 35PG3167' SCHEDULE C ALL THAT CERTAIN tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BOUNDED on the North by land now or formerly of The First Bank and Trust Company of Mechanicsburg, Pennsylvania, Executor of Harry S. Hamilton; on the East by York Street; on the South by land now or formerly of W.H. Aulthouse; and on the West by Wilson Alley. Having a frontage on York Street of twelve (12) feet two (2) inches and extending in depth and even width of one hundred twenty (120) feet to an alley. HAVING THEREON ERECTED a frame dwelling known and numbered as 109 North York Street, Mechanicsburg, Pennsylvania. BEING THE SAME PREMISES WHICH Charles D. Ditmer, Jr., and Susan M. Ditmer, husband and wife, by Deed dated January 31, 1995 and recorded February 3, 1995 in the Office of the Recorder of Deeds in and for Cumberland County In Deed Book 118 at Page 302, granted and conveyed unto Kevin J. Krovich, single man, in fee. .I Certify this to be recorded In Cumberland County PA 0 C' Recorder of Deeds g I735PG3I68 4 0 % EXHIBITS' • ? )perations Offices ¦ 4201 Mitchellville Road ¦ Bowie, MD 20716-3167 To: Kevin 7. Krovich 109 N. York Street Mechanicsburg, PA 17055-6220 NOTICE OF DEFAULT AND RIGHT TO CURE DEFAULT Dear W. Krovich: 301-352-3130 Fax 301-352-3131 Date: October 28, 2004 Certified Mail Copy I' Class Account No: 1310001601 ' . Pursuant to the provisions of the note and mortgage/deed of trust dated October 1. 2001 you executed regarding the property 109 N: York Street. Mechanicsburg: PA 17055, please be informed that you are now in default on the credit transaction. You have a right to correct. this default within 10 days from the date of this notice. If you correct the default; you may continue as though you did not default. Your default consists of failure to: Pay installments of $1,679.82 late charges of $64.89 through October 28.2004. Cure of default: Within 10 days from the date of this notice, and not later than November 9. 2004 you must cure your default by paying the following amounts in cash, certified or bank cashier's check: $1.744.71 plus any additional monthly payments and late charges falling due within this 10 day period. Creditor's rights: If you do not correct your defaults in the time specified in this notice, we may exercise our rights against you under the law by acceleration of the sums secured by the trust, foreclosure proceedings, and/or legal collection or equitable action to sell the property at public auction. You have the right to reinstate the loan after acceleration, if provided in your deed of trust, unless the term of your note has matured, and you have the right to bring a court action to. assert in the foreclosure proceedings the non- existence of a default or any other defense you may have to the acceleration and sale. If this default was caused by your failure to make a payment or payments, and you want to pay by magi please send a casbier's check; do not send cash by mail. If the default is not cured after 10 days, you may be required to pay all amounts due directly to our designated attorney, plus attorney's fees and costs, in addition to the amounts above. If you have any questions, write to Foreclosure Dept., The Washington Savings Bank, F.S.B., 4201 Mitchell' e Road, Suite 300, Bowie, MD 20716, or, call me at (301) 352-3130 between the hours of 9:00 and 4:30, Yknday through Friday. V yours, A Notice, to Homeowner of Availability of Homeownership Counseling is enclosed. Jell` Waker Sr. a President JW/pd C. J. Myers LNWANSOTMyFiIcs\No&= of Default\KrovicN K.(1310001601)- 30DN.doc FDIC ..=?' INSURED 1-800-843-7250 ??. LWOCR wsB-047 www.twsb.com 'gym 1 EXHIBIT'C' perations Offices ¦ 4201 Mitchellville Road ¦ Bowie, MD 20716-3167 Date: November 16, 2004 To: Kevin J. Krovich 109 N. York St. Mechanicsburg, PA 17055-6220 RE: Notice of Default & Acceleration Loan #1310001601 Dear Mr. Krovich: 301.352-3130 Fax 301-352-3131 Pursuant to our October 28, 2004 notice of default, we hereby accelerate the indebtedness, and make demand for immediate repayment in full of all sums due under the Note and Deed of Trust. Your loan will be forwarded to our attorney, John F. Fenstermacher, Esq., 5115 East Trindle Road, Mechanicsburg, PA 17050, telephone (717) 691-5400. Payment to Mr. Mr. Fenstermacher must be in cash or by bank cashier's check. The amount of the debt as of November 16, 2004, is: Principal $53,827.00 Interest 7/1104 to 11/16/04 @ 8.75% or $12.90 a day x 139 days 1,793.10 Late Charges to 11/16/04 86.52 TOTAL: $55,706.62 Additional interest, attorney's fees, and costs, will become due as collection progresses. S' ely, Whittaker Vice President JW/mc Enclosure C. J. Fenstermacher, Esq. C. Scott Clayton FDIC PAShve files herMcceim ion Lettem\Krovich 1310001601 - Aecelcmdon Letter (PA).da INSURED 1-800-843-7250 ?eraoaw wss-047 www.twsb.com ""26 O (t pro Sir N O, 0 s D n r- rya n 0 SHERIFF'S RETURN - NOT FOUND CASE NO: 2008-02507 P COMMONTWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND WASHINGTON SAVINGS BANK THE VS KROVICH KEVIN J R. Thomas Kline Sheriff or Deputy Sheriff, who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named DEFENDANT KROVICH KEVIN J but was unable to locate Him in his bailiwick. A "M "r%n Ll He therefore returns the the within named DEFENDANT 1nq NORTH YORK STREET KROVICH KEVIN J NOT FOUND , as to MECHANICSBURG, PA 17055 PRR NEIGHBOR. DEFENDANT STILL GETS MAIL THERE BUT NO T,nNGER LIVES THERE Sheriff's Costs: So answers: f?- Docketing 18.00 Service 10.00 Not Found 5.00 R. Thomas Kline Surcharge 10.00 Sheriff of Cumberland County .00 ,lq?D? ? 43.00 FENSTERMACHER & ASSOCIATES 04/25/2008 Sworn and Subscribed to before me this day of A.D. THE WASHINGTON SAVINGS BANK, IN THE COURT OF COMMON PLEAS OF FSB CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. KEVIN J. KROVICH, Defendant TO THE PROTHONOTARY: : DOCKET NO. 08-2507 CIVIL ACTION - MORTGAGE FORECLOSURE PRAECIPE Please reinstate the Complaint in this matter. Thank you. Respectfully submitted, DATED: zz?-/106 FENSTERMACHER AND ASSOCIATES, P.C. y: rhnR. nstermac her ourt I.D. #29940 5115 East Trindle Road Mechanicsburg, PA 17050 (717) 691-5400 Attorneys for Plaintiff .FA- ra rT: c? SHERIFF'S RETURN - REGULAR CASE NO: 2008-02507 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND WASHINGTON SAVINGS BANK THE VS KROVICH KEVIN J MICHELLE GUTSHALL , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE KROVICH KEVIN J was served upon the DEFENDANT , at 1240:00 HOURS, on the 9th day of October , 2008 at 4628 S CLEARVIEW DRIVE CAMP HILL, PA 17011 T7TT TT NT TlT%r%'%7T(TV by handing to a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 14.00 zwlle 1 Affidavit .00?-`? Surcharge 10.00 R. Thomas Kline .00 /v?lc.?Or 42.00 10/10/2008 FENSTERMACHER & ASSOCIATES Sworn and Subscibed to By: before me this day Deputy Sheriff of , A.D. THE WASHINGTON SAVINGS BANK Plaintiff V. KEVIN J. KROVICH, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA : DOCKET NO. 08-2507 CIVIL ACTION - MORTGAGE :FORECLOSURE Praecipe for Entry of Appearance Please enter my appearance on behalf of the Defendant above. Geoffrey M. Biringer MidPenn Legal Services 401 E.Louther Street Carlisle, PA 17013 (717) 243-9400 Supreme Court ID#18040 NO THE WASHINGTON SAVINGS BANK : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY PENNSYLVANIA V. KEVIN J. KROVICH, : DOCKET NO. 08-2507 Defendant : CIVIL ACTION - MORTGAGE :FORECLOSURE DEFENDANT'S PRELIMINARY OBJECTIONS Defendant, by and through his attorneys, MidPenn Legal Services and Geoffrey M. Biringer hereby preliminarily objects to Plaintiff's Complaint as follows: Lack of jurisdiction over the subject matter of the action pursuant to Pa.R.C.P. No. 1028(a)(1) 1. Plaintiff filed a Complaint in mortgage foreclosure on April 17, 2008 involving property owned by the Defendant, located at 109 N.York Street, Mechanicsburg, Cumberland County, PA 17055. 2. Paragraph 9 of the said Complaint alleges that the acceleration of the mortgage occurred by letter to the Defendant dated November 16, 2004. 3. Prior to the acceleration of a mortgage, the mortgagee must provide adequate notice of the action to the mortgagor pursuant to the Pennsylvania Foreclosure Prevention Act 91 of 1983 (35 Pa. Cons. Stat.§1680.403(c). 4. Plaintiff did not provide Defendant with the said Notice until July 26, 2007 (Notice, attached hereto as Defendant's Exhibit,"A.") WHEREFORE, Defendant demands that Plaintiff's Complaint be dismissed for lack of subject matter jurisdiction. Date: A) MIDPENN LEGAL SERVICES A 'c By: Geoffrey M. Biringer 401 E. Louther Street Carlisle, PA 17013 (717)243-9400 Supreme Court ID#18040 CERTIFICATE OF SERVICE I, Geoffrey M. Biringer, being a member in good standing of the Bar of Pennsylvania, hereby certify that I served a true and correct copy of the foregoing Preliminary Objections to Plaintiff's Complaint on this 27th day of October, 2008, by placing same in the United States mail, first class, postage prepaid, addressed as follows: John Fenstermacher, Esquire 5115 East Trindle Road Mechanicsburg,PA 17050 MIDPENN LEGAL SERVICES By: Geoffrey M. Biringer Attorney for the Defendant 401 E. Louther Street Carlisle, PA 17013 (717)243-9400 Supreme Court ID#18040 ? ? _ ?? ?? c??, -:` ? ?`?; r s i ?..e :? .. i ; . ?a ? . ,? _. ?.. I vl. THE WASHINGTON SAVINGS BANK, FSB Plaintiff V. KEVIN J. KROVICH, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 08-2507 Civil Term CIVIL ACTION - MORTGAGE FORECLOSURE NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 I t THE WASHINGTON SAVINGS BANK, FSB Plaintiff V. KEVIN J. KROVICH, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : DOCKET NO. 08-2507 Civil Term CIVIL ACTION - MORTGAGE FORECLOSURE FIRST AMENDED COMPLAINT AND NOW, comes the Plaintiff, The Washington Savings Bank, FSB, by and through its attorneys, the offices of Fenstermacher and Associates, P.C. and files this First Amended Complaint, as follows: 1. Plaintiff, The Washington Savings Bank, FSB (hereinafter "Plaintiff'), is a national banking association having an office at 4201 Mitchellville Road, Bowie, Maryland, and brings this action to foreclose the mortgage dated October 1, 2001, between Defendant Kevin J. Krovich as mortgagor and Plaintiff as Mortgagee, which is recorded in the Office of the Recorder of Deeds of Cumberland County, Pennsylvania, in Mortgage Book Volume 1735, Page 3154. 2. Defendant Kevin J. Krovich resides at 109 North York Street, Mechanicsburg, Pennsylvania. 3. The mortgage secures Defendant's certain note dated October 1, 2001, in the amount of Fifty Five Thousand and 00/100 ($55,000.00) Dollars, payable to Plaintiff in monthly installments with simple interest at the rate of 8.750 percent per annum. A copy of the mortgage and note is attached as Exhibit "A." 4. The land subject to the mortgage is: ALL THAT CERTAIN tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BOUNDED on the North by land now or formerly of The First Bank and Trust Company of Mechanicsburg, Pennsylvania, Executor of Harry S. Hamilton; on the East by York Street; on the South by land now or formerly of W.H. Aulthouse; and on the West by Wilson Alley. Having a frontage on York Street of twelve (12) feet two (2) inches and extending in depth and even width of one hundred twenty (120) feet to an alley. HAVING THEREON ERECTED a frame dwelling known and numbered as 109 North York Street, Mechanicsburg, Pennsylvania. BEING THE SAME PREMISES WHICH Charles D. Ditmer, Jr., and Susan M. Ditmer, husband and wife, by Deed dated January 31, 1995 and recorded February 3, 1995 in the Office of the Recorder of Deeds in and for Cumberland County in Deed Book 118 at Page 302, granted and conveyed unto Kevin J. Krovich, mortgagor, herein. 5. Defendant is the fee simple owner of the land subject to the mortgage and Defendant's address is 109 North York Street, Mechanicsburg, Pennsylvania. 6. The mortgage is in default because of Defendant's failure to make the payment due October 28, 2004 and all subsequent payments and the following amounts are due on the mortgage: Principal balance totaling $53,827.00 Interest through 04/02/08 at a rate of 8.75% totaling $17,675.19. This figure increases daily. Escrows advanced in the amount of $1,869.03. Attorneys fees and costs in the amount of $808.32. Total of all above items equals $74,161.54 as of 04/02/08. 2 7. Plaintiff has fully performed in accordance with the provisions of the Act of January 30, 1974, Pub. L. 13, No. 6, § 403 (41 P.S. § 403). A Notice of Intention to Foreclose Mortgage was not forwarded to Defendant as the original bona fide principal amount of the residential mortgage, as defined in 41 P.S. § 101, was in excess of fifty thousand dollars ($50,000). 8. Plaintiff did forward to Defendant an Act 91 Notice on July 26, 2007 whereby Defendant was provided the opportunity to reinstate the loan. (See Exhibit "B" attached hereto and incorporated herein.) 9. Plaintiff was advised by the Pennsylvania Housing Finance Agency on or about February 8, 2008 that Defendant did not complete the appropriate application with that Agency to receive assistance in repayment of the monies owed Plaintiff and therefore Defendant's request for assistance was denied. 3 WHEREFORE, Plaintiff requests the Court to enter judgment of mortgage foreclosure against the mortgaged property for the amount set forth above, together with interest thereon, all other amounts, including professional fees, advanced by Plaintiff. Respectfully submitted, FENSTERMACHER AND ASSOCIATES. P.C. Dated: ///,/Z) Jahn Fenstermacher SS' preme Court I.D. #29940 5115 East Trindle Road Mechanicsburg, PA 17050 (717) 691-5400 Attorney for Plaintiff 4 ?.`?>::, EXHIBIT 'A' RECORD AND RETURN TO THE WASHINGTON SAVINGS BANK, FSB 4201 MITCHELLVILLE ROAD, SUITE 300 BOWIE, MD 20716 RE 0 [ ; DEED 'o1 OCT 12 PM 12 "; [Space Above This Line For Recording Data] MORTGAGE Loan ID # PP0204SC DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated October lot, 2001 , together with all Riders to this document. (B) "Borrower" is Kevin J. Krovich . Borrower is the mortgagor under this Security Instrument. (C) "Lender" is The Washington Savings Bank, FSB . Lender is a CORPORATION organized and existing under the laws of THE UNITED STATES OF AMERICA Lender's address is 4201 Mitchellville Road, Suite 300, Bowie, MD 20716 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated October lot, 2001 The Note states that Borrower owes Lender Fifty Five Thousand and no/100. - - - - - - - - - - - - - - - - - - - -- - - - - Dollars (U. S. $ 55, 000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than October let, 2031 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property. " (F) "Loan" means the debt evidenced by the Noie, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: Q Adjustable Rate Rider ? Condominium Rider ? Second Home Rider ? Balloon Rider ? Planned Unit Development Rider ? Other(s) [specify] ? 1-4 Family Rider ? Biweekly Payment Rider Initials: PENNSYLVANL ,-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page I of 14 pages) PA1CM1 - 11152000 www.MortgageBanldngSystems.com Loan ID # PP0204SC (11) "Applicable Law" means'all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (1) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (Q "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N1) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as -a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender. (i) the repayment of the Loan,. and all renewals, extensions and modifications of. the Note; and (ii) the performance of Borrower's covenants and'.4Lgreements under this Security Instrument *and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender the following described property located in the County of Cumberland [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] FOR LEGAL DESCRIPTON SEE SCHEDULE "A" ATTACKED AND MADE A PART HEREOF PENNSYLVANIA-Single Family Famde Mae/Freddie Mac UNIFORM INSTRUMENT PA1CM2.11152000 Initials: Form 3039 1/01 (page 2 of 14 pages) www.MortgageBankingSystems.com F Loan ID # PP0204SC which currently has the address of 109 N. York Street, Mechanicsburg , [Street] [City] Pennsylvania 17055 ("Property Address"): [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property. " BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining •amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. Initials: \ PENNSYLVAMA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (pa 3 of 14 pages) PA1CM3 - 11152000 www.MortgageBanldngSystems.com ' Loan ID # PP0204SC If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender. may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held. in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined Initials: -A?iK PENNSYLVANIA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (pa e 4 of 14 pages) PA1CM4 -11152000 www.MortgageBankingSystems.com Loan ID # PP0204SC under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify, Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. Initials: 7- 15?11e PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1101 (pa WS of 14 pages) PA1CM5 -11152000 www.MortgageBankingSystems.com Loan ID # PP0204SC All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Forrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the. Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Initials: PENNSYLVANIA-Single FamIly-Famue Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 6 of 14 pages) PA1CM6 -11152000 www.MortgageBankingSystems.com Loan ID # PP0204SC If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a'bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is Initials: /5 PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 7 of I4 pages) PAIC 47 - 11152000 www.MortgageBanldngSystems.com Loan ID # PP0204SC obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage -Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan.' Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may. include the right to receive certain disclosures, to request.and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the' right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the Initials: PENNWLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 8 of 14 pages) PA1CM8 - 11152000 www.MortgageBankingSystems.com Loan ID # PP0204SC amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section '19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy.. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's Initials: PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 9 of 14 pages) PA1CM9 - 11152000 www.MortgageBanldngSystems.com Loan ID # PP0204SC rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the femme gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those Initials: ` PENNSYLVANIA--Single Family-Fannie Mae/Rreddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 10 of 14 pages) PAICMA - 11152000 www.MortgageBankingSystems.com Loan ID # PP0204SC beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to; reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check; bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time Initials: PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 11 of 14 pages) PAICMB -11152000 www.MortgageBanidngSystems.com Loan ID # PP0204SC period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. . Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in .the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). Lender shall notify Borrower of, among other things: (a) the default; (b) the action required to cure the default; (c) when the default must be cured; and (d) that failure to cure the default as specified may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the, Property. Lender shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. If the default is not cured as specified, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, attorneys' fees and costs of title evidence to the extent permitted by Applicable Law. 23. Release. Upon payment of all sums secured by this Security Instrument, this Security Instrument and the estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge and satisfy this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for Initials: PENNSYLVANIA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 12 of 14 pages) PAICMC - IIIS2000 www.MortgagellankingSystems.com Loan ID # PP0204SC releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower, to the extent permitted by Applicable Law, waives and releases any error or defects in proceedings to enforce this Security Instrument, and hereby waives the benefit of any present or future laws providing for stay of execution, extension of time, exemption from attachment, levy and sale, and homestead exemption. 25. Reinstatement Period. Borrower's time to reinstate provided in Section 19 shall extend to one hour prior to the commencement of bidding at a sheriffs sale or other sale pursuant to this Security Instrument. 26. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to acquire title to the Property, this Security Instrument shall be a purchase money mortgage. 27. Interest Rate After Judgment. Borrower agrees that the interest rate payable after a judgment is entered on the Note or in an action of mortgage foreclosure shall be the rate payable from time to time under the Note. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. (Seal) Kevin J. rovich -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower PENNSMVAMA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 13 of 14 pages) PAICMD - 11152000 www.MortgageBankingSystems.com Certificate of Residence Loan ID # PP0204SC I do certify that the precise address of the within-named mortgagee is 4201 Mitchellville Road, Suite 300, Bowie, MD 20716 Witness my hand this lot day of October, 2001 of COMMONWEALTH OF PENNSYLVANIA 0 ,t4 r» bar/and county ss: On this, the lot day of October, 2'&Q1% , before me, the undersigned officer, personally appeared Kevin J. Krovich known to me (or satisfactorily proven) to be the person(s) whose name(s) is subscribed to the within instrument and acknowledged that executed the same for the purposes herein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. 'My Commission Expires: NOTARIAL SEAL John R. Fenstermad er, Notary Public Mechanicsburg, Cumberland County My f`? -,.,,? 001 X002 PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT PA1CME - 11152000 Initials: Form 3039 1/01 (page 14 of 14 pages) www.Mortg2geBankingSystems.com SCHEDULE C ALL THAT CERTAIN tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BOUNDED on the North by land now or formerly of The First Bank and Trust Company of Mechanicsburg, Pennsylvania, Executor of Harry S. Hamilton; on the East by York Street; on the South by land now or formerly of W.H. Aulthouse; and on the West by Wilson Alley. Having a frontage on York Street of twelve (12) feet two (2) inches and extending in depth and even width of one hundred twenty (120) feet to an alley. HAVING THEREON ERECTED a frame dwelling known and numbered as 109 North York Street, Mechanicsburg, Pennsylvania. BEING THE SAME PREMISES WHICH Charles D. Ditmer, Jr., and Susan M. Ditmer, husband and wife, by Deed dated January 31, 1995 and recorded February 3, 1995 in the Office of the Recorder of Deeds in and for Cumberland County In Deed Book 118 at Page 302, granted and conveyed unto Kevin J. Krovich, single man, in fee. .I Certify this to be recorded In Cumberland County PA Recorder of Deeds BK 1735PG31.68 SCHEDULE C . ALL THAT CERTAIN tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BOUNDED on the North by land now or formerly of The First Bank and Trust Company of Mechanicsburg, Pennsylvania, Executor of Harry S. Hamilton; on the East by York Street; on the South by land now or formerly of W.H. Aulthouse; and on the West by Wilson Alley.,. Having a frontage on York Street of twelve (12) feet two (2) inches and extending in depth and even width of one hundred twenty (120) feet to an alley. HAVING THEREON ERECTED a frame dwelling known and numbered as. 109 North York Street, Mechanicsburg, Pennsylvania. BEING THE SAME PREMISES WHICH Charles D. Ditmer, Jr., and Susan M. Ditmer, husband and wife, by Deed dated January 31, 1995 and recorded February 3, 1995 in the Office of the Recorder of Deeds in and for Cumberland County In Deed Book 118 at Page 302, granted and conveyed unto Kevin J. Krovich, single man, in fee. NOTE Loan ID # PP0204SC October lot, 2001 Mechanicsburg, PENNSYLVANIA [Date] [City] [State] 109 N. York Street, Mechanicsburg, PENNSYLVANIA 17055 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U. S. $55, 000.00 (this amount is called "Principal"), plus interest, to the order of the Lender. The Lender is The Washington Savings Bank, FSB . I will make all payments under this Note in the form of cash, check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder. " 2. INTEREST Interest will ber charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 8.750 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the lot day of each month beginning on November lot, 2001 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on October lot, 2031 , I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 4201 Mitchellville Road, Suite 300, Bowie, MD 20716 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be . in the amount of U. S. $4 3 2.6 9 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees.in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of Fifteen calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 5.00 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice tellinLr me that if i (in not nav the nvarAiia a.,,..,,,,t Loan ID # PP0204SC 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. Kevin J. Krovich -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) EXHIBITS' 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 ou 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 ADIUNTO ES DE SUMA INTORTANCIA, 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 REDIlvflR SU HIPOTECA. HOMEOWNER'S NAME: PROPERTY ADDRESS: LOAN ACCT. NO.: ORIGINAL LENDER: CURRENT LENDER/SER Kevin J. Krovich 109 North York Street Mechanicsburg, Pennsylvania 17055 1310001601 The Washington Savings Bank VILER: The Washington Savings Bank 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, OU MUST BRING YOUR MORTGAGE UP TO DATE TIE 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 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 the 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 complete 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 application 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 (6) 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 un to date) NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 109 North York Street Mechanicsburg, Pennsylvania 17055 IS SERIOUSLY IN DEFAULT because: You have not made monthly mortgage payments for approximately three (3) years. YOU HAVE NOT MADE MONTHS MORTGAGE PAYMENTS for the following months and the following amounts are past due: See sheet attached and hereto incorporated as Exhibit "A." Other charges (explain/itemize): See sheet attached and hereto incorporated as Exhibit "A." TOTAL AMOUNT PAST DUE: B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION (Do not use if not applicable): N/A 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 $17,445.87, PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made wither by cash cashier's check certified check or money order made payable and sent to: The Washington Savings Bank 4201 Mitchellville Road, Suite 500 Bowie, Maryland 20716 You can cure anv other default by taking the following action within THIRTY (30 DAYS of the date of this letter (Do not use if not applicable): N/A 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 mortgaged 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) DAY 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 THE 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 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 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 you 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 5 months from the date of this Notice. A notice of the actual date of the Sheriff's 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: The Washington Savings Bank Address: 4201 Mitchellville Road, Suite 500, Bowie, Maryland 20716 Phone Number: 301-352-3145 Fax Number: 301-352-3132 Contact Person: Gerald J. Whittaker, Senior Vice President EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's 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, 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 PART 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. A LIST OF CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY IS ATTACHED AND HERETO INCORPORATED AS EDIT "B," EXHIBIT "A" Payment Due Monthly PI Install Monthly Escrow Monthly PITT 08/01/04 432.69 127.25 559 94 09/01/04 432.69 127.25 . 559 94 10/01/04 432.69 127.25 . 559 94 11/01/04 432.69 127.25 . 559 94 12/01/04 432.69 159.13 . 591 82 01101105 432.69 159.13 . 591 82 02/01/05 432.69 159.13 . 591 82 03/01/05 432.69 159.13 . 591 82 04/01/05 432.69 159.13 . 591 82 05/01/05 432.69 159.13 . 591 82 06/01/05 432.69 159.13 . 591 82 07/01/05 432.69 159.13 . 591 82 08/01/05 432.69 86.99 . 519 68 09/01/05 432.69 . 432 69 10101105 432.69 . 432 69 11101105 432.69 . 432 69 12/01/05 432.69 . 432 69 01/01/06 432.69 . 432 69 02/01/06 432.69 . 432 69 03/01/06 432 69 . 04/01/06 . 432 69 432.69 05/01/06 . 432 69 432.69 06/01/06 . 432 69 432.69 07/01/06 . 432 69 432.69 08/01/06 . 432 69 432.69 09/01/06 . 432 69 432.69 10/01/06 . 432 69 432.69 11/01/06 . 432 69 432.69 12/01/06 . 432 69 432.69 01/01/07 . 432 69 432.69 02/01/07 . 432 69 432.69 03/01/07 . 432 69 432.69 04/01/07 . 432 69 432.69 05/01/07 . 432 69 432.69 06/01/07 . 432 69 432.69 07/01/07 . 432 69 432.69 . 432.69 TOTALS* 15,576.84 1,869.03 17,445.87 The regular installment of principal and interest is $432.69 The amount the escrow is overdrawn (advanced) is $1,869.03. This schedule is exclusive of attorneys fees, costs, inspections, and late charges. These figures are without prejudice as to any amounts due and becoming due under the terms of the loan documents. EXHIBIT "B" CONSUMER CREDIT COUNSELING AGENCIES SERVING CUMBERLAND COUNTY Acorn Housing 14 S. 13th Street Harrisburg, PA 17104 717.213.0150 Adams County Interfaith Housing Authority 40 E High Street Gettysburg, PA 17325 717.334.1518 CCCS of Western PA 2000 Linglestown Road Harrisburg, PA 17102 888.511.2227 Community Action Commission of Capital Region 1514 Derry Street Harrisburg, PA 17104 717.232.9757 Loveship, Inc. 2320 North 5th Street Harrisburg, PA 17110 717.232.2207 Maranatha 43 Philadelphia Avenue Waynesboro, PA 17268 717.762.3285 PHFA 211 North Front Street Harrisburg, PA 17110 717.780.3940 800.342.2397 CERTIFICATE OF SERVICE AND NOW, on this 26th day of July, 2007, I, Matthew Aaron Smith, Esquire, hereby certify that I have served the foregoing Act 91 Notice of Default by mailing the original by United States first class mail, addressed as follows: Kevin J. Krovich 109 North York Street Mechanicsburg, PA 17055 FENSTERMACHER AND ASSOCIATES, P.C. By: preme Court I.D. #94603 115 East Trindle Road Mechanicsburg, PA 17050 (717) 691-5400 Attorney for The Washington Savings Bank CERTIFICATE OF SERVICE AND NOW, on this r - day of November, 2008 I, John R. Fenstermacher, Esquire, hereby certify that I have served the foregoing First Amended Complaint by mailing a true and correct copy by United States first class mail, addressed as follows: Geoffrey M. Biringer, Esquire MidPenn Legal Services 401 E. Louther Street Carlisle, PA 17012 FENSTERMACHER AND ASSOCIATES, P.C. By: R. Fenstermacher r•. .._. _i _.y _? ` 7 -- -_? `t -?: ,.b.,, .. .. , ?. ?..r l.: 7 v t THE WASHINGTON SAVINGS BANK, IN THE COURT OF COMMON PLEAS FSB : OF CUMBERLAND COUNTY, PA Plaintiff : DOCKET NO. 08-2507 Civil Term V. : CIVIL ACTION-MORTGAGE :FORECLOSURE KEVIN J. KROVICH, Defendant To: John Fenstermacher, Esquire (Attorney of Record for Washington Savings Bank) You are hereby notified to file a written response to the enclosed Answer to Plaintiff's Complaint with New Matter, Affirmative Defenses, and Counterclaims, within twenty (20) days from service hereof or a judgment may be entered against you . B y: Geoffrey M. Biringer, Esq. MidPenn Legal Services 401 E.Louther Street Carlisle, PA 17013 (717)243-9400 Sup. Ct. ID# 18040 THE WASHINGTON SAVINGS BANK, IN THE COURT OF COMMON PLEAS FSB : OF CUMBERLAND COUNTY, PA Plaintiff DOCKET NO. 08-2507 Civil Term V. CIVIL ACTION-MORTGAGE :FORECLOSURE KEVIN J. KROVICH, Defendant DEFENDANT'S ANSWER, NEW MATTER, AFFIRMATIVE DEFENSES AND COUNTERCLAIMS ANSWER 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Denied. As set out more fully in New Matter, Affirmative Defenses, and Counterclaims below, Defendant is not in default and does not owe the amount stated. By way of further answer, Defendant is without information sufficient to form a belief as to the truth of the averments and demands strict proof thereof at trial. 7. Admitted in part. It is admitted that the "Act 91"notice was given. It is denied, however, that the Notice of Intention of 41P.S.§101 was not required as is more fully set out below in New Matter, Affirmative Defenses and Counterclaims. 8. Admitted. 9. Denied. Defendant is without information sufficient to form a belief as to the truth of the averments and demands strict proof thereof at trial. WHEREFORE, Defendant requests that Plaintiff's complaint be dismissed and judgment entered for the Defendant. NEW MATTER 10. Paragraphs 1-9 are incorporated herein by reference hereto. 11. Plaintiff failed to submit an initial escrow account statement to Defendant at settlement or within 45 days of settlement as is required for escrow accounts that are established as a condition of the loan. 12. Plaintiff failed to submit annual statements to Defendant for the escrow account. 13. Plaintiff failed to disburse escrows on or before the earlier of the deadlines for payment to take advantage of discounts, if available, or deadlines to avoid penalty. 14. Plaintiff failed to disburse payment for 2002 County and Borough Real Estate Taxes resulting in Notice of Tax Claim Sale, loss of discount, penalties, interest and costs totaling $194.67 (March 1,2002 Tax Bill, July 23, 2004 Notice of Public Sale, and September 13, 2004 Tax Claim Receipt Attached hereto, as Exhibit" A "). 15. Plaintiff failed to disburse payment for 2002 School Real Estate Taxes before deadline resulting in loss of discount and penalties totaling $99.34 (Attached hereto, as Exhibit" B "). 16. Plaintiff failed to disburse payment for 2004 Taxes, before the deadlines resulting in loss of discounts totaling $6.60 for County and Borough Taxes, and $25.03 for School Taxes. (March 1, 2004 and July 1, 2004 Tax Bills, and 2004 Combined Tax Statement attached hereto, as Exhibit" C ") 17. On November 5, 2004 Plaintiff, following Defendant's payment and the tax matters set forth above, returned Defendant's payment pursuant to Plaintiff's notice of October 28, 2004, with no mention of the tax matters. (November 5, 2004 letter and October 28, 2004 notice attached hereto as Exhibit " D ". 18. On March 22, 2006 Plaintiff, following Defendant's written request, promised to research the tax matters, but took no action. (March 11, 2006 request and March 22, 2006 response attached hereto as Exhibit" E"•) 19. Plaintiff failed to report Defendant's mortgage payments at least quarterly to any nationally recognized credit reporting agency, on at least 12 occasions, for the period January, 2002 through October, 2004.(Credit reports dated March 1, 2002, December 9, 2002, and August 14, 2006 showing zero payments attached hereto as Exhibit "F". 20. Plaintiff, despite the "No Cash Out" instructions of the transaction, increased the amount borrowed from $43,229.02 to $55,000.00 (September 27, 2001 loan instructions and October 5, 2001 loan proceeds letter attached hereto as Exhibit"G") 21. Plaintiff charged interest of 1% in excess of the maximum lawful rate of 7.75% for the period October, 2001 through October, 2004. (Pa.Bull. Vol. 31, No. 37, Doc. No.01-1675 filed September 14, 2001 attached hereto as Exhibit"H". 22. On January 30, 2007 Defendant forwarded Plaintiff a Notice of Right to Cancel with supporting Schedule B and letters dated January 25, 2007 and February 27, 2006 to cancel this transaction within three business days of the date that Defendant received his Truth in Lending Disclosures on January 29, 2007. (January 30, 2007 notice and Schedule B, and letters dated January 25, 2007 and February 27, 2006 attached hereto as Exhibit"I".. 23. Plaintiff charged a single loan discount in the amount of $825 or $275 in excess of that permitted by law.(October 1, 2001 Itemization of Amount Financed document attached hereto as Exhibit "J".) AFFIRMATIVE DEFENSES 1. LOAN INTEREST AND PROTECTION LAW 24. Paragraphs 1-23 are incorporated herein by reference hereto. 25. By requiring Defendant to take out a loan in excess of $50,000, thus decreasing the protections afforded to Defendant pursuant to Act 6, Plaintiff was able to charge Defendant more interest than should have been required. 26. Said interest at 8.75% was 1% in excess of what should have been charged (7.75%) resulting in higher payments for Defendant than should have been charged. 27. Said interest was charged in violation of Pennsylvania's Loan Interest and Protection Law, Act of Jan. 30, 1974 and as amended in Act 57 of 2008 (effective September 6, 2008). 28. As a result, Defendant was charged excess interest in the amount of $1,708.51, and a single loan discount charge amounting to $275 more than should have been charged. 29. Defendant is entitled to actual damages and penalties and treble damages and penalties in the amount of $825 and $5,125.53 for charges in excess of the single service charge and for violations of the maximum lawful rate of interest for the period October, 2001 through October, 2004. WHEREFORE, Defendant demands setoff in the total amount of $5,977.53 in favor of the Defendant and against the Plaintiff. II. MORTGAGE BANKERS & CONSUMER EQUITY PROTECTION ACT 30. Paragraphs 1-29 are incorporated herein by reference hereto. 31. Plaintiff's failure to report Defendant's mortgage payments to the credit bureaus violates Pennsylvania's Mortgage Bankers and Brokers and Consumer Equity Protection Act. 32. The Act imposes civil penalties of up to $2,000 per violation, and Defendant alleges at least fourteen (14) violations of the said Act. 33. Defendant is entitled to civil penalties in the amount of $24,000 for Plaintiff's failure to report Defendant's mortgage payments for the period January 2002 through October 2004. 34. Defendant is entitled to civil penalties in the amount of $2000 for Plaintiff's failure to comply with all provisions of the act of January 30, 1974 35. Defendant is entitled to civil penalties in the amount of $2000 for Plaintiff's failure to comply with the provisions of the Act of December 23, 1983. WHERREFORE, Defendant demands setoff against the Plaintiff in the total amount of $28,000 against the Plaintiff and in favor of the Defendant. III. ESCROW ACCOUNT 36. Paragraphs 1-35 are incorporated herein by reference hereto. 37. Defendant is entitled to setoff in an amount to be determined through discovery for monies paid into escrow, but not accounted for. 38.. Defendant is entitled to additional damages in the amount of at least $5,000 for Plaintiff's failures to provide escrow statements to the Defendant over the course of the loan for the period 2001 through 2004. 39. Defendant is entitled to additional damages in the total amount of $4000 for each noncompliance with RESPA (four) in the handling of Defendant's account. 40. Defendant is entitled to actual damages in the amount of $325.91 for the penalties and discounts missed by Plaintiff's failures to pay monies out deposited into escrow by the Defendant. WHEREFORE, Defendant demands setoff against the Plaintiff in the amount of $9.325.91 and any other monies determined to be due the Defendant after discovery, in favor of the Defendant and against the Plaintiff. IV. RECISSION 41. Paragraphs 1-40 are incorporated herein by reference hereto. 42. Defendant properly rescinded the transaction in a timely within three business days of the giving by Plaintiff of Truth-In-Lending disclosures. 43. Defendant is entitled to return of all monies Defendant has paid Plaintiff in connection with this transaction in the total amount of $17, 293.05 consisting of 33 payments in the amount of $14,278.77 for the period November, 2001 through July, 2004 and settlement charges in the amount of $3,014.28 44. Defendant is entitled to have the security interest in connection with this transaction cancelled. 45. Defendant is entitled to twice the amount of any finance charge in connection with this transaction or $205, 206.36 for Plaintiff's failure to comply with the requirements posed under the Act. WHEREFORE, Defendant demands that the transaction be rescinded, the security interest cancelled, and Defendant awarded $222,499.41 as setoff against any amount found to be due and owing to the Plaintiff. COUNTERCLAIMS 1. LOAN INTEREST PROTECTION ACT 46. Paragraphs 1-45 are incorporated herein by reference hereto. 47. Defendant was damaged in the amount of $1,708.51 by Plaintiff's charging an interest rate on the loan between October, 2001 and October, 2004 in excess of the lawful rate under the Act at that time. 48. Defendant was charged a single loan discount amount which was $275 in excess of what could be lawfully charged under the Act. 49. Defendant is entitled to triple the excess charged. WHEREFORE, Defendant demands judgment against Plaintiff in the total amount of $5, 977, 53, said amount being within the amount requiring referral to arbitration. II. MORTGAGE BANKERS AND CONSUMER EQUITY PROTECTION ACT 50. Paragraphs 1-49 are incorporated herein by reference hereto. 51. Plaintiff's failure to report Defendant's mortgage payments to the credit bureaus damaged Defendant's reputation and creditworthiness, personally and in his business and should result in fines under the Act of $2,000 per violation. 52. Plaintiff violated the Act on at least fourteen (14) occasions. WHEREFORE, Defendant demands judgment against the Plaintiff in the amount of $28,000, said amount being within the amount for compulsory arbitration. III. ESCROW 53. Paragraphs 1-52 are incorporated herein by reference hereto. 54. In failing to properly account for Defendant's escrow payments, in requiring Defendant to miss discounts and pay penalties for escrow items, Defendant has been damaged. 55. In failing to supply an annual accounting for escrow, Plaintiff has knowingly violated the requirements of RESPA, requiring a civil penalty in the amount of $1000 per violation. 56. Plaintiff has violated RESPA at least nine times. 57. Defendant is entitled to actual damages in the amount of $325.91 for the penalties incurred and discounts missed by Plaintiff's failure to pay monies deposited into escrow by Defendant. WHEREFORE, Defendant demands judgment against the Plaintiff in the total amount of $9,325.91, said amount being within the amount for compulsory arbitration. Date: dg MIDPENN LEGAL SERVICES By: h7 . Geoffrey M.Biringer 401 E.Louther Street Carlisle, PA 17013 (717) 243-9400 Supreme Court ID#18040 CUMBERLA14D COUNTY TAX CLAIM BUREAU • ONE COURTHOUSE SQUARE CARLISLE PA 17013 PHONE 717 240-6366 FAX 717 240-6354 Printed: 9/13/04 C 13:59:12 Control Number: 19-000230 TAX CLAIM RECEIPT Receipt No.: Receipt Date: Page: 40238 9/13/2004 1 Property Description: KROVICH, KEVIN J 109 NORTH YORK STREET MECHANICSBURG PA 17055 Map No: 19-23-0567-054 LAND LESS THAN 1 ACRE Residential W/ Comm Funct Situs Information: 109 N YORK STREET MECHANICSBURG BOROUGH Tax Penalty & Year Description Face Interest Costs Total 2002 CTY-MECHANICSBURG 4 2002 CLB-MECHANICSBURG 4 2002 MUN-MECHANICSBURG 4 2002 BUREAU COSTS Tendered > MONEY ORDER Received By > MM Paid By > KROVICH, KEVIN J Remarks > MO# 544993397 IF TAXES ARE IN ESCROW, SEND THIS BILL TO YOUR MORTGAGE CO., $1.00 FEE FOR ADDITIONAL RECEIPTS. PAYABLE TO: DESC: BARRY L HECKARD SR TAX COLLECTOR 605 SOMERSET DRIVE 766-6205 MECHANICSBURG, PA 17055 MAP NO: 19-23-0567-054 109 N YORK STREET ACRES .030 DEED 00118/ 00302 Residential W/ Comm Funct RESIDENTIAUCOMMERCIAL TAX KROVICH, KEVIN J PAYER 109 NORTH YORK STREET MECHANICSBURG PA 17055 128.00 Received For Year Of 2002 Total Received 1. Iltot_ ?.1 Balance Due As Of Claim Balance: TAXPAYER reIntrni Nn• 01 a _ 000230 2002 Shoarffanf of Real Fatale Tawas 175.62 8.79 124.58 128.00 $436.99 $436.99 9/13/2004 .00 Bill No: 1622 Rill Data- 3/01/200: Assessed Land Improvement Mineral Total Values 8,550 60,150 0 68,700 COUNTY OF CUMBERLAND ace Rates .00204600 .00204600 2 % 109 COUNTY R/E 17.49 123.07 137.75 140.56 154.6, Rates .00010300 .00010300 2 111 109 COUNTY LIB .88 6.20 6.94 7.08 7.75 R Rates .00145000 .00145000 2111 109 MUNIC. R/E 12.40 87.22 97.63 99.62 109.5E TAX AMOUNT DUE --> x242.52 $247.26 $271.99 If Paid On or After 3/01/2002 5/01/2002 7/01/200: If Paid On or Before 4/30/2002 6/30/2002 140.56 35.06 7.08 1.71 99.62 24.96 lr avy rfum rig IA1311AUUZ wnlb allaU "I" bE XzTUKNGU 1U -I'AA CLAIM BUREAU FOR COLLECTION AND FILING OF A LIEN AGAINST YOUR PROPERTY. OFFICE MAR-APR TUES&THURS 1 OAM-4PM- HOURS: WED 5PM-7PM MAY-JUNE TUES 10-4PM WFD-5PM-7PM OR CAI I FOR APPT. 0twaERLAND COUNTY 4-1 r DATE + Tk( CLAIM BUREAU 7CERT IFIED ?710 7 0 ?;'? 9 4 5 9 0 014 6 315 8 7/23/2004 PLEASE PRESENT THIS NOTICE N0 WHEN MAKING PAYMENT ADDRESS ALL CCU*. MUNICATIONS TO: L NUMBER 19 230 ACRES - .030 CUMBERLAND COUNTY MAP NO 19-23-0567-054 ASSESSED TAX CLAIM BUREAU VALUE - 68700 ONE COURTHOUSE SQUARE CARLISLE, PA 17013-3389 LAND LESS THAN 1 ACRE Residential W/ Comm Funct BUSINESS 8:00 AM TO 4:30 PM 109 N YORK STREET HOURS: MONDAY THRU FRIDAY _ PHONE: (717) 240-6366 NOTICE OF THE RETURN OF DELINQUENT TAM AGAINST THIS PROPERTY BY THE VARIOUS TAXING D STRICTS Please contact your mortgage company if your taxes AND THE ENTRY OF TAX CLAIM THERON. HAS BEEN HERETOFORE GIVEN ACCORDING TO LAW. AND THE PERIOD are paid from an escrow account. The mortgage OF REDEMPTION HAVING BEEN OF(PIRED, SAID CLAIM HAS NOW BECOME ABSOLUTE, THIS SALE WILL BE FINAL. holder does not receive a copy of this notice. DIVESTING YOUR TITLE TO THE PROPERTY. THE PURPOSE OF THIS SALE BEING TO PROVID:: FOR THE COLLECTION OF THE AMOUNT OF TAXES OWING ON SAID PROPERTY. TERMS OF SALE: Cash or Cash and Check on a local bank payable to Tax Claim Bureau at the time Notice of Sale will be published once in the Evening Sentinel, the Hwrhblag Pahict the property is struck down. Nwe and the Guide Nears and once In the Cumberland Law Journal beghmUtg the c?cv yrelk of. JULY 19, 2004 PAYMENTS PRIOR TO SALE Cash. a-v order or esttlcrerl elfsek psrpabls to 'Tax Claim Bureau' returned to this office on your property phis costs as THE APPROXIMATE UPSET PRICE FOR ' of the date of sale. If you make payment in July or fi54Li,BE SOLD 1S: KROVICH, KEVIN J WHICH THE PROPMffY August, the amount due will be less. Please contact 109 NORTH YORK STREET \\ $819 88 our office for the exact amount due before making . MECHANICSBURG PA 17055 any payments. TO 2003 THE SUM FOR S?lff0 WARNING WHICH WILL REMOVE E PROPERTY ? FROM THE SALE IS: 9 1 'YOUR PROPERTY 13 ABOUT / TO BE SOLD WITHOUT YOUR $456.99 CONSENT FOR DELINQUENT TAXES. YOUR PROPERTY MAY TO: All Owners of property described in this notice, and all persons having liens, judgements or BE SOLD FOR A SMALL municipal or other claims against such properties. FRACTION OF ITS FAIR MARKET VALUE IF YOU HAVE ANY Notice is hereby given by the TAX CLAIM BUREAU in and for the County of Cumberland under the act QUESTIONS AS TO WHAT YOU of 1947 P.L. 1368 as amended, that the said BUREAU will expose at Public Sale in the CUMBERLAND MUST DO IN ORDER TO SAVE COUNTY COURTHOUSE, Carlisle, PA at 2:00 PM SEPTEMBER 23, 2004or any day to which the YOUR PROPERTY, PLEASE CALL sale may be adjourned, readjoumed or continued, for the purpose of collecting unpaid taxes, municipal YOUR ATTORNEY THE TAX CLAIM BUREAU At THE claims and all costs incidental thereto, the above described real estate for at least the upset price in the amount hereinabove approximately set forth. FOLLOWING TELEPHONE NUMBER 24048388 OR 532-7286 The sale of this property may, at the OPTION of the BUREAU, be stayed if the Owner thereof or any lien OR 531- OR THE COUNTY creditor of the owner, on or before the date of sale, enters into an agreement with the BUREAU to pay LAWYER REFERRAL SERVICE." taxes, claims and costs in installments in the manner provided by said Act, and the agreement io be entered into. Combined Tax Statement for Forms "M. 1098, 1099, 5498 for Year 2002 F.e;„?„„ 1.M•E- 6.,p NAME, ADDRESS AND FEDERAL I.D. NO. CUSTOMER NAME, ADDRESS TAMYBt ID. N0. THE WASHINGTON SAVINGS BANK KEVIN.J KROVICH 163-58-8262 11 4201 MITCHELLVILLE RD - SUITE 109 N YORK ST BOWIE MO 20716 MECHANICSBURG PA 17055-6220 CUSTOMER 800-843-7250 SERVICE PHONE # _ FEDERAL 1-n- NO- 52-1271169 1940 ACCOUNT NUMBER ACCOUNT TYPE IRS DESCRIPTION IRS BOX # AMOUNT * * * 2002 - 1098, MORTGAGE INTEREST * * * 1310001601 MORTGAGE LOAN MORTGAGE INTEREST 1 4791.47 TAKES PAID IN 2002 4 910.62 FEDERAL INCOME TOTAL CAPITAL GAINS TOTAL MORT INT PAID TOTAL EARNINGS _TAX WITHHELD DISTRIBUTION IRS FORM #1098 INT DIV & OID .00 .00 4791.47 .00 For Form 1099•B, DIV, INT, MISC and DID: This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you If this Income Is taxable and the IRS determines that it has not been reported. 'Ferro 1099 DID: This may not be the correct floure to report on vour income tax return, See instructions below. 0036742 0 .AX YEAR DATE ? ASSESSMENT BILL NO. C 2002-03 REAL ESTATE TAX NOTICE ** SCHOOL ** JULY 1 2002 ,,,,,,.jjjICSBURG AREA SCHOOL DISTRICT 68,700 1619 BARRY L HECKARD SR JULY&AUG TUE-THURS 10AM TO 4PM 605 SOMERSET DR WED 5PM-7PM SEP-DEC 30 TUES 10-4PM MECHANICSBURG PA 17055 & WED 5-7PM CLOSED JUNE 24-28 PHONE: 717-766-6205 DEC 31 NOV 5 °kP M %P M %P M %P M %P M DURING THIS PERIOD PAY THIS AMOUNT 811.2 827 .8 ! DISCOUNT JULY & AUG FACE SEPT & OCT PENALTY NO V & DEC 811.28 827.84 _91_0_. 6.2 ACCT NO 19-23-0567-054 KROVICH, KEVIN J 109 NORTH YORK STREET MECHANICSBURG PA 17055 109 N YORK STREET C/?. LAND LESS THAN 1 ACRE Residential W/ Comm Funct IF Yd H YOUR COPIES IF AXES ARE IN E wt-fed-w-' --I-. -Ue*'h-R-jj THIS BILL TO YOUR MORTGAGE COMPANY IF UNPAID BY 12/31/02 TAXES WILL BE TURNED OVER TO CUMBERLAND CO. TAX CLAIM BUREAU. $1.00 FEE FOR ADD'L RECEIPTS REQUESTED Combined Tax Statement for Forms 1098, 1099, 5498 for Tax Year 2004 NAME, ADDRESS AND FEDERAL I.D. NO. THE WASHINGTON SAVINGS BANK F. 4201 MITCHELLVILLE RD - SUITE BOWIE MD 20716 1096 • Copy 8 • Far Payer • 076 r 160-0'1 'age . E -Copy S - F. 8- - ON # 1545-1576 100 • • -Copy 8 - F. 8- - 016E 150-0997 1099 a 11 1066-C•6•Far •OH.Y1X45 1099 • Q -Copy 8 - For Ped*M - 0116 C 115/51166 CUSTOMER NAME, ADDRESS KEVIN J KROVICH 109 N YORK ST MECHANICSBURG PA 17055-6220 1899-0N -Cagy 8,-F-PeebNnt •01!!1516-011® ,091 _ INT - Copy 8 • Fa PlNpieni • 4N0! 16/66712 11091. N5C - Copy 8 - Fer PaelpNnl • 061611515-0115 091- 011) •COpys-F: Pecipron[ •8616 f 154'61117 109' - S Copy B • FO Tremleror • 0861 /05067 591.:11 1 SaF.: - ESA - Capy 8 - For EWaaBelm- BNB M 1515.105 TAXPAYER I.D. NO. [163-58-8262 CUSTOMER g00-843-7250 SERVICE PHONE # 1 D ERAL 52-1271169 1944 ,E MORTGAGE INTERESTI STATEMENTS*x#* * AMOUNT ACC * *NU*B 2004 FORM 1098TYP 1310001601 MORTGAGE LOAN ) MORTGAGE INTSR CEIVED FROM PAYER(S)/BORROWER /BOIDOINR 004 4 12756.74 251.17 1310001601 ORTGAGE LOAN IT CHARGES PD 2004 4 64.89 SAXES ARE ESCROWED. FORWARD THIS BILL TO YOUR REMINDER 8111 NO: 1636 PH 113AUE: GO. $1.W htt rUH tAUH AUU11 IUNAL WtCitir I ?_-.vi w1_. n. n nnnnan 9AAA Qkd n ant of Real Potato Taxes Bill Date: 3/0112004 AKE t: BARRY L HECKARD, TAX COLLECTOR 605 SOMERSET DRIVE '766-6205' MECHANICSBURG, PA 17055 X ER MAP NO: 19-23-0567-054 PAID 109 N YORK STREET ACRES .030 DEECHQiy11PJ-003t ? H ?1 I {{I LlU LAND LESS THAN 1 ACRE 15AT' Residential W/ Comm RESIDENTIAUCOMMERC RRY HECKAR- 1i\ C17?_? tt, { ?! KROVICH, KEVIN J 109 NORTH YORK STREET MECHANICSBURG PA 1755 IF NOT PAID BY 12/15/ZUU4 TH15 1517.1. W1leL nes KWIV l Va IV 4e CLAIM BUREAU FOR COLLECTION AND FILING OF A LIEN AGAINST YOUR PROPERTY. CE MAR-APR, TUES & THURS 10AM-4PM Rs: WED 5PM-7PM MAY-JUNE TUES 10-4PM WED 5PM-7PM OR CALL FOR APPT. i30 CLSD 3/4.6/29-30, ELECTION DAY Return Bill with Payment. For a Receipt. Enclose Self Addressed Stamped Envelope. 2004-05 REAL ESTATE TAX NOTICE ** SCHOOL ** JULY 1 2004 MECHANICSBURG AREA SCHOOL DISTRICT 68,700 1642 BARRY L HECKARD SR JULY&AUG TUE&THURS LOAN TO 4PM 605 SOMERSET DR WED 5PM-7PM SEPT-DEC 30 TUBS 10-4PM MECHANICSBURG PA 17055 & WED 5-7PM CLOSED JULY 26-30 NOV 2 PHONE: 717-766-6205 & DEC 31 SCHOOL R E! ! ' lOr•?1 410„! - - :- - _- l .tC? i ..,,., _ ? i 902.84 `DISCOUNT !JULY 1 & AUGi 902.84 921.27 SEPT FACE & OCTI 921.27 ?. 1.013.40 ' PENALTY lNOV & DEC; 1,013.40, ACCT NO 19-23-0567-054 KROVICH, KEVIN J 109 NORTH YORK STREET MECHANICSBURG PA 17055 vv1111 r.v. v - Assesse Land - Improv?4ent mineral Total Values 8 550 60,150 0 68 700 Face P*Wft Rates .00214900 .00214900 2 % 10% COUCTPY R/E 18.37 129.26 144.68 147.63 162.39 Rates .00020300 .00020300 2 10% COUtTPY LIB 1.74 12.21 13.67 13.95 15.35 M 1 R Rates .00245000 .00245000 2 % 10% :•SC?ttic. R/E 20.95 147.37 164.95 168.32 185.15 TAX AMOUNT DUE --> $323.30 $329.90 $382.89 If Paid On or After 3/01/2004 5/01/2004 7/01/2004 If Paid on or Before_ 4/3012004 6/30/2004 109 N YORK STREET LAND LESS THAN 1 ACRE Residential W/ Comm Funct 301-352-3130 Operations Offices ¦ 4201 Mitchellville Road ¦ Bowie, MD 20716-3167 Fax 301-352-3131 November 5, 2004 Kevin J. Krovich 109 N York St Mechanidsburg; PA 17 5-6120- " RE: Loan Account #1310001601 Dear Mr. Krovich: We return herewith your personal check #2184, in the amount of $581.57, received November 3. 2004, because (1) it is not sufficient to reinstate your account per our October 28, 2004 notice of default, and (2) it is not cash or bank cashier's check. The amount due to reinstate this loan as of November 3, 2004, is $2.304.65in cash or bank cashier's check. Communications or forbearance from The Washington Savings Bank, or acceptance of partial payments are not a waiver of any past, present, or future defaults by Borrower and are without prejudice to any of Lender's rights, including acceleration and recourse to the collateral. Sincerely, Sr. Vice President 60-7238 2184 KEVIN J. KROVICH QBA ACROCLEAN X13 1e00015927 JW/pd t, 109 NORTH YORK ST. PH. 717-794.9998 r MECHANICSBURG, PA 17055 DATE Enclosure: Check A PAY TO oRDERO1 j?944V IM C 1/%IL V efiiti//? I $ f %9DOLLARS Way hint BANK Harrisburg, PA h' FDIC KVNyFiles\Lctters - Return Checmm MEMO -_--- ]NRURED Operations Offices ¦ 4201 Mitchellville Road ¦ Bowie, MD 20716-3167 To: Kevin J. Krovich 109 N. York Street Mechanicsburg, PA 17055-6220 NOTICE OF DEFAULT AND RIGHT TO CURE DEFAULT Dear Mr. Krovich: 301-352-3130 Fax 301-352-3131 Date: October 28, 2004 Certified Mail Copy 1" Class Account No: 1310001601 .Pursuant to the.provisions of the note and of trmt_dated-October 1. 2001 you executed regarding the property 109 N. York Street, Mechanicsburg, PA 17055, please be informed that you are now in default on the credit transaction. You have a right to correct this default within 10 days from the date of this notice. If you correct the default, you may continue as though you did not default. Your default consists of failure to: Pay installments of $1,679.82 late charges of $64.89 through October 28.2004. Cure of default: Within 10 days from the date of this notice, and not later than November 9. 2004 you must cure your default by paying the following amounts in cash, certified or bank cashier's check: $1,744.71 plus any additional monthly payments and late charges falling due within this 10 day period. Creditor's rights: If you do not correct your defaults in the time specified in this notice, we may exercise our rights against you under the law by acceleration of the sums secured by the trust, foreclosure proceedings, and/or legal collection or equitable action to sell the property at public auction. You have the right to reinstate the loan after acceleration, if provided in your deed of trust, unless the term of your note has matured, and you have the right to bring a court action to assert in the foreclosure proceedings the non- existence of a default or any other defense you may have to the acceleration and sale. If this default was caused by your failure to make a payment or payments, and you want to pay by mail, please send a cashier's check, do not send cash by mail. If the default is not cured after 10 days, you may be required to pay all amounts due directly to our designated attorney, plus attorney's fees and costs, in addition to the amounts above. If you have any questions, write to Foreclosure Dept., The Washington Savings Bank, F.S.B., 4201 MitchellvQlle Road, Suite 300, Bowie, MD 20716, or, call me at (301) 352-3130 between the hours of 9:00 and 4:30, nday through Friday. A Notice to Homeowner of Availability of Homeownership Counseling is enclosed. Sr.'V11d'e President JW/pd C. J. Myers BLOANS071MyFilaNNotias ofDdau10Kw%ieh, K.(1310001601)- 30DN.doc FDIC nvsvn$n 1-800-843-7250 . c/o 109 North York Street Mechanicsburg, Pennsylvania [ PA 17055-62201 The Washington Savings Bank (TWSB) Date: March 11, 2006 4201 Mitchellville Road, Suite #500 Bowie, Maryland [ MD 2071 6-31 67 1 RE: Loan Account #1310001601 Dear Ms. Cindy Vogel, Loan Servicing: This is a qualified written request under the Real Estate Settlement Procedures Act (RESPA). I am writing concerning my request for all true and correct copies of completed settlement documents that I should have received at closing on October 1, 2001 per my certified letter (#7005 3110 0001 3097 4258) of February 27, 2006 (enclosed). I am also writing concerning my escrow account and enclosed receipts as follows: Please find enclosed a copy of the PAID (on 3-2-2006) tax receipt for 2006 County and Borough Real EstateTaxes at discount in the amount of $356.60. Please find enclosed a copy of the PAID (on 1-27-2006) State Farm Homeowners Insurance receipt for the period of 1-30-2006 through 1-30-2007 for $353.00. Additionally, I am also writing concerning the following escrow account problems: A payment was made from escrow for 2002 School Real Estate Tax with penalty for $910.62 when it should have been paid at discount for $811.28 resulting in overcharges of $99.34. A payment was not made from escrow for 2002 County and Borough Real EstateTaxes in the amount of $242.32. This resulted in notice of public sale, penalty, interest and cost to prevent upset sale of the property in the amount of $436.99. Payments were made from escrow for 2004 Real Estate Taxes in the amount of $1,251.17 when they should have been paid for $1,226.14 resulting in overcharges of $25.03. I am enclosing copies of the Combined Tax Statement Forms and Real Estate Tax Statements for 2002 and 2004 and the Cumberland County Tax Claim Bureau Receipt and Notice of Public Sale of 2004 in support of the above mentioned escrow account problems. In conclusion, please provide closing documents as requested per my letter of 2-27-2006 and make the proper adjustments to the escrow account balance and provide documentation. Also, please discontinue escrow account servicing as TWSB has refused payment from me and I have paid my own insurance and taxes. (See enclosed TWSB letter of 11-05-2004.) I understand that under RESPA you are required to acknowledge my request within 20 business days and must try to resolve these issues within 60 business days. Thank you. Sincerely, Kevin J. Krovich (717) 766-4448 SAVINGS Operations Offices ¦ 4201 Mitchellville Road ¦ Bowie, MD 20716-3167 March 22, 2006 Kevin Krovich 109 N. York Street Mechanicsburg, PA 17055-6220 301-352-3130 Fax 301-352-3131 Dear Mr. Krovich: We have previously advised you that the collection of this account is being handled by our attorney, John Fenstermacher, 5115 East Trindle Road, Mechanicsburg, PA 17050. Please direct your inquiries regarding the account to Mr. Fenstermacher. In response to your recent letters, please note the following: You suggested you believed the copies of the settlement documents that were provided to you by the settlement attorney at your settlement were a concern because they were unsigned and unwitnessed. The settlement attorney's office has indicated to us that you were provided a complete set of the documents, which you signed, and that the signed copies were forwarded to the bank. You raised a question about your interest rate. The interest rate for your loan is stated in your Note. Please refer to the civil judgment against you by Judge Guido regarding your claims. Late charges are assessed in accordance with the terms set forth in the Note. Your escrow account has a negative balance because your have failed to pay the monthly installments when due according to the terms of your loan. The tax matter will be researched, and we will respond as the information becomes available. Sincerely, 5 Jeff Whittaker Senior Vice President JW:cd cc: J. Fenstermacher, Esq. FDIC O:\Collections\Lepl\LettersVGovich.doc ¦ J ------------------------------------------------------------------------------ CREDCO INSTANT MERGE DECISION MAKER 03/01/02 Ref: 1-02060-252839-598 Prepared for: THE WASHINGTON SAVING BANK FSB Acct: 142024 Repositories: EFX-I,XPN-I,TUC-I Notes: SCOTT ------------------------------------------------------------------------------ Sub: KROVICH, KEVIN Ssn: 163-58-8262 Curr Addr: 109 N YORK STREET, MECHANICSBURG, PA 17055 ------------------------------------------------------------------------------ SUMMARY ACCOUNT DISTRIBUTION CURRENT STATUS(tradelines) Account Type Count Balance Payments Curr Clsd Unrt 30 60 90+ Real Estate 0 $0 $0 - - - - - - Installment 2 $0 $0 - 2 - - - - Revolving 2 $0 $0 - - - - - 2 Other 5 $202 $202 3 1 - - - 1 Total 9 $202 $202 3 3 - - - 3 INQUIRIES PUBLIC R ECORDS HISTORICAL DELINQUENCIES(c ount) 3 111onth Total 3 EFX 2 Account Type LastDlq 30 60 90+ Elim. same day - 0 XPN 2 Real Estate - - - Adjusted Total 3 TUC 2 Installment 12/95 - 1 1 New Trades(6 mths) 0 Last 2yrs N Revolving 05/01 5 2 3 Other 10/01 - 1 2 Oldest Trd: 10/86 --------------------- ---- On File: ---------- 08/82 ------- Total 5 ---------------------------- 4 ----- 6 --- BUREAU SCORE INFORMATION EFX BEACON 96 Score(Subject) =00574 factors: 00038,00013,00008,00031 00038 Serious delinquency, and derogatory public record or collection filed. 00013 Time since delinquency is too recent or unknown. 00008 Too many inquiries last 12 months. 00031 XPN (Subject) = Credit risk score not provided (XPN Error code= 9002) TUC EMPIRICA 98 Score(Subject) =00580 Score factors: 038,018,010,002 038 Serious delinquency, and public record or collection filed. 018 Frequent delinquency. 010 Proportion of revolving balances to revolving credit limit is too high. 002 Delinquency. Full credit report to follow. Page 1 of 4 ----------------------------------------- ------------------------------------- CREDCO INSTANT MERGE DECISION MAKER 12/09/02 Ref: 3-02343 -432493-108 Prepared for: THE WASHINGTON SAVINGS BANK Acct: 2017565 Repositories: EFX-I,XPN-I,TUC-I ----------------------------------------- ------------------------------------- Sub: KROVICH, KEVIN Ssn: 163 -58-8262 Curr Addr: 109 N YORK ST, MECHANICSBURG, PA 17055 SUMMA RY ACCOUNT DISTRIBUTION Account Type Count Real Estate 0 Installment 0 Revolving 2 Other 2 Total 4 Balance Pay ments $0 $0 $0 $0 $892 $130 $98 $98 $990 $228 CURRENT STATUS(tradelines) Curr Clsd Unrt 30 60 90+ 2 1 - - - - 1 1 - - - - 3 INQUIRIES PUBLIC RECORDS HISTORICAL DELINQUENCIES(count) 12 Month Total 7 EFX 2 Account Type LastDlq 30 60 90+ Elim. same day - 1 XPN 2 Real Estate - - - Adjusted Total 6 TUC 2 Installment - - - New Trades(6 mths) 0 Last 2yrs N Revolving 05/01 9 3 3 Other 08/02 2 2 2 Oldest Trd: 10/86 --------------------- ---- On File: ---------- 08/82 ------ - Total ---------------- -------- 11 ---- 5 ----- 5 --- BUREAU SCORE I NFORMATION EFX BEACON 96 Score(Subject) =00587 fact ors: 00038,00019,00034,00031 00038 Serious delinquency, and derogato ry public record or collection filed. 00019 Too few accounts currently paid a s agreed. 00034 Amount owed on delinquent account s. 00031 XPN New Fair Isaac Score (Subject) =0668 Score factors: 38,18,20,13 38 Serious delinquency and public recor d or collection filed. 18 Number of accounts delinquent. 20 Length of time since legal item file d or collection item reported. 13 Length of time (or unknown time) sin ce account delinquency. TUC EMPIRICA 98 Score(Su:-ject) =0059C Sc ore factors: 038,018.010,013 038 Serious delinquency, and public rec ord or collection .filed. 018 Frequent delinquency. 010 Proportion of revolving balances to revolving credit limit is too high. 013 Delinquency date too recent (or unk nown). Full credit repo rt to follow. Credit Report sue. i ? https://hco.efanniemae.com/hco/http?da=casefile:Credit&da action=s... Print Close - ------------------------------------------------------- REF:1-03315-65500-0000 08/14/2006 TID:1-03315-6550 CREDCO Instant Merge Credit Report Acct: Prepared for: ACORN HOUSING CORP. - PHILADELPHIA Notes: Requested: EFX, XPN, TUC - I Delivered: --------------------------------------------------------- Agency Case Id: 817249916 UNASSIGNED xAcct: --------------------------------------------------------- App: KROVICH, KEVIN Curr Addr: 109 N. YORK, MECHANICSBURG, PA 17055 --------------------------------------------------------- INSTANT MERGE SUMMARY --------------------- --------------------- 0 08/14/2006 14:00:15 124669 EFX, XPN, TUC --------------------- W0001SNH ---------------------- Ssn: 163-58-8262 --------------------- ACCOUNT DISTRIBUTION CURRENT STATUS(tradelines) Account Type Count Balance Payments Curr Clsd Unrt 30 60 90+ Real Estate 0 $0 $0 - - - - - - Installment 0 $0 $0 - - - - - - Revolving 2 $891 $130 - - - - - - Other 1 $0 $0 - 1 - - - - Total 3 $891 $130 - 1 - - - - AVAILABLE CREDIT Revolving 0% $0 INQUIRIES PUBLIC RECORDS HISTORICAL DELINQUENCIES(count) 6 Month Total 2 EFX N/A Account Type LastDlq 30 60 90+ Elim. same day - 0 XPN 1 Real Estate - - - Adjusted Total 2 TUC 1 Installment - - - New Trades(6 mon) 0 Last 2yrs N Revolving 05/01 7 4 4 Other - - - Oldest Trd: 10/86 -- On File: -------- 08/82 ------- Total 7 4 4 ------------------------------------ ------------------------- Only Applicant/Co-applicant information included in the Summary. BUREAU SCORE INFORMATION ------------------------ EFX BEACON 5.0 (APP)= 658 Factor: 00039, 00018, 00014, 00010 00039 SERIOUS DELINQUENCY 00018 NUMBER OF ACCOUNTS WITH DELINQUENCY 00014 LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED 00010 PROPORTION OF BALANCES TO CREDIT LIMITS IS TOO HIGH ON BANK REVOLVING OR OTHER REVOLVING ACCOUNTS XPN FICO-II (APP)= 704 Factor: 38, 18, 20, 02 38 SERIOUS DELINQUENCY AND PUBLIC RECORD OR COLLECTION FILED 18 NUMBER OF ACCOUNTS WITH DELINQUENCY 20 TIME SINCE DEROGATORY PUBLIC RECORD OR COLLECTION IS TOO SHORT 02 LEVEL OF DELINQUENCY ON ACCOUNTS TUC FICO Classic 98 (APP)= 617 Factor: 038, 018, 002, 027 038 SERIOUS DELINQUENCY, AND PUBLIC RECORD OR COLLECTION FILED 018 NUMBER OF ACCOUNTS WITH DELINQUENCY 002 LEVEL OF DELINQUENCY ON ACCOUNTS 027 TOO FEW ACCOUNTS CURRENTLY PAID AS AGREED * Number of Inquiries Adversely Affected the Score End of Decision Maker Report? ------------------------------------------------------------------------------ REF:1-03315-65500-0000 08/14/2006 TID:1-03315-65500 08/14/2006 14:00:15 CREDCO Instant Merge Credit Report Acct: 124669 Prepared for: ACORN HOUSING CORP. - PHILADELPHIA Notes: The Washington Savings Bank, FSB 4201 Mitchenville Road, Suite 300 Bowie, MD 20716 LOAN SETTLEMENT INSTRUCTIONS Date: September 27, 2001 Loan Number: PP0204SC Fenstermacher & Associates, PC Settlement Date: October 01, 2001 To: 5115 E. Trindle Road Disbursement Date: October 05, 2001 Mechanicsburg, PA 17058 M LoanOfficer: Scott Clayton 7I7-691-5400 sor: Karen Edge LoanProcees ` VA ] Conv [ ] [ 8X ] FHA [mac l Refinance Occupancy- epied [ Loan Type: / J Months ARM Interest Adjustment Period Payment Adjustment Period _ Months (if different) Index: Periodic interest Rate Cap: Margin: Period payment Rate Cap (if applicable): Life Cap: Furst Change Date: Buydown Adjustment Period Months First Period Rate: P&I: Third Period Rate: Second Period Rate: Closing of this loan must take place not later than the settlement date stated above. All attachments hereto are made a part of this letter of instruction. Notify this office immediately if there is any delay in settlement or deviation from these instructions: Mortgagor(s): Kevin J. Krovich Seller(s): property Address: 109 N. York Street Mechanicsburg, pmemyLVANIA 17055 Short Legal Description: Appraised Value: $82,000-00 Sales Price: Loan Amount: $55, 000.00 First Payment Date: November 01, 2001 Term (months): 3 6 0 Cash Down Payment: Interest Rate: 8.750$ Monthly P&L $432.69 Final Payment Date: October 01, 2031 FENSTERMACHER AND ASSOCIATES, P.C. ATTORNEYS AND COUNSELORS AT LAW JOHN R. FENSTERMACHER DIRECT DIAL (717) 691-5420 October 5, 2001 Kevin J. Krovich 109 N. York Street Mechanicsburg, PA 17055 RE: Refinance Dear Mr. Krovich: *MEMBER PENNSYLVANIA AND HW JEBSEY BM I enclose our Check No. 2284 in the amount of $11,770.98 which represents your proceeds from your refinance with The Washington Savings Bank. If you should have any questions or if we can be for further service to you, please do not hesitate to contact us. Sincerely, FENSTERMACHER AND ASSOCIATES, P.C. r? 1 By: r1k; a et A. Fenstermacher Legal Assistant rac Enclosure PLEASE RESPOND TO: MEC14AMCSBURG OFFICE: OCEAN CITY OFFICE THE JONAS RUPP HOUSE (717) 691-5400 26 BAY AVENUE 5115 EAST TRINDLE ROAD FAX (717) 691-5441 OCEAN CPIY. NJ 08226 .?..?, .... ?.>..,?. ..? ., .?.,. <, ., ,, ........ rFnQ% 1201-0aA1 THE .OOHS RUPP MOM "'A T3111lCl11L 1VVe.. 1?A.?. v.r.-iv?.r Uh, NOTICES Maximum Lawful Rate of Interest for Residential Mortgages for the Month of October 2001 [31 Pa-B. 52731 The Department of Banking of the Commonwealth of Pennsylvania, under the authority contained in section 301 of the act of January 30,1974 (P. L. 13, No. 6) (41 P. S. § 301), hereby determines that the maximum lawful rate of interest for residential mortgages for the month of October, 2001, is 7 3/4%. The interest rate limitations under the State's usury statute were preempted to a great extent by Federal law, the Depository Institutions Deregulation and Monetary Control Act of 1980 (Pub. L. 96-221). Further preemption was instituted with the signing of Pub. L. 96- 399, which overrode State interest rate limitations on any individual who finances the sale or exchange of residential real property which such individual owns and which such individual occupies or has occupied as his principal residence. Each month the Department of Banking is required by State law to compute and announce the ceiling rate on residential mortgages in Pennsylvania. This maximum rate is determined by adding 2.50 percentage points to the yield rate on long-term government bonds as published by the Federal Reserve Board and/or the U. S. Treasury. The latest yield rate on long-term government securities is 5.34 to which was added 2.50 percentage points for a total of 7.84 that by law is rounded off to the nearest quarter at 7 3/4%. JAMES B. KAUFFMAN, Jr., Secretary [PaA Doc. No. 01-1675. Filed for pubHe inspmdon September 14,2001,9:00 a.m.] No part of the information on this site may be reproduced for profit or sold for profit. This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version. http://www.pabuUetin.com/secureldatalvol3l/31-37/1675.html 1/14/2005 109 N. York Street Mechanicsburg, PENNSYLVANIA 17055 (Identification of Transaction) The Washington Savings Bank, FSB 4201 Mitchellville Road, Suite 300 Bowie, Maryland 20716 NOTICE OF RIGHT TO CANCEL TO WHOM IT MAY CONCERN: Date: January 30, 2007 Certified Mail/Return Receipt Copy 1 st Class Loan ID # PP0204SC Pursuant to the enclosed signed and dated notice of right to cancel, I decide to cancel this transaction within three business days of the date that I received my Truth in Lending Disclosure. On Monday, January 29, 2007, I received the enclosed letter of Fenstermacher and Associates dated January 25, 2007. The print out is not a breakdown of cost, is wrong, and does not prove the claim. The settlement documents provided are not true and accurate copies of that which was provided to me on October 1, 2001. Please refer to the enclosed certified letter of February 27, 2006, which included copies of incomplete, unsigned and unwitnessed documents, as well as indicates that I did not receive a Truth-in-lending disclosure amongst others. Additionally, the provided package did not include a HUD Settlement Certification, Acknowledgement and Receipt of Settlement Statement, or Affiliated Business Arrangement (AfBA) disclosures. Also, the provided Schedule B (acknowledgement of receipt of TILA disclosure) is incomplete and not signed. Also, loan settlement instructions were not followed. Therefore, I have decided to cancel this transaction within three business days of the date that I received my Truth in Lending Disclosure by forwarding the Notice of Right to Cancel with supporting Schedule B, and letters dated January 25, 2007, and February 27, 2006. Within twenty (20) calendar days after receipt, concerned parties must take the steps necessary to reflect the fact that appropiate action has been taken. Please advise accordingly. I WISH TO CANCEL THE TRANSACTION DESCRIBED ABOVE. Date =??Kevjn J. Krovich (enclosures) NOTICE OF RIGHT TO CANCEL, (Credit Transaction Secured by Your Home) Loan ID # PP0204SC CREDITOR: The Washington Savings Bank, FSB 109 N. York Street Mechanicsburg, PMWSYLVANIA 17055 (identification of Transaction) Your Right To Cancel El This Is An Original Extension of Credit: You are entering into a transaction that will result in a security interest in your home. You have a legal right under federal law to cancel this transaction, without cost, within three business days from whichever of the following events occurs last: (1) The date of the transaction, which is October lot, 2001 : or, (2) The date you received your Truth In Leading Disclosures; or, (3) The date you received this notice of your right to cancel. If you cancel the transaction, the security interest is also cancelled. Within 20 calendar days after we receive your notice, we must take the steps necessary to reflect the fact that the security interest in your home has been cancelled, and we must return to you any money you have given to us or to anyone else in connection with this transaction. You may keep any money we have given you until we have done the things mentioned above, but you must then offer to return the money. Money must be returned to the address below. If we do not take possession of the money within 20 calendar days of your offer, you may keep it without further obligation. ? This Is An Additional Credit Transaction. (Refinance with Same Creditor) You are entering into a new transaction to increase the amount of credit provided to you. We acquired a security interest in your home under the original transaction and will retain that security interest in the new transaction. You have a legal right under federal law to cancel the new transaction, without cost, within three business days from whichever of the following three events occurs last: (1) The date of the transaction, which is October lot, 2001 ; or, (2) The date you received your Truth In Lending Disclosures; or, (3) The date you received this notice of your right to cancel. If you cancel the new transaction, your cancellation will apply only to the increase in the amount of the credit. It will not affect the amount that you presently owe or the security interest we already have in your home. If you cancel, the security interest as it applies to the increased amount is also cancelled. Within 20 calendar days after we receive your notice of cancellation of the new transaction, we must take the steps necessary to reflect the fact that our security interest in your home no longer applies to the increase of credit. We must also return any money you have given to us or anyone else in connection with that new transaction. You may keep any money we have given you in the new transaction until we have done the things mentioned above, but you must then offer to return the money at the address below. If we do not take possession of the money within 20 calendar days of your offer, you may keep it without further obligation. How to Cancel: If you decide to cancel this transaction, you may do so by notifying us in writing at: The Washington Savings Bank, FSB, 4201 Mitchellville Road, Suite 300, Bowie, Maryland 20716 You may use any written statement that is signed and dated by you and states your intention to cancel, or, you may use this notice by signing and dating below. Keep one copy of this notice because it contains important information about your rights. If you cancel by mail or telegram, you must send the notice no later than midnight of October 4th, 2001 (or midnight of the third business day following the latest of the three events listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time. I R'ISH TO CANCEL THE TRANSACTION DESCRIBED ABOVE. Date ' -Consumer's signature (sign here to cancel) XWSBBI - 03302001 Page 1 or2 www.AlortgageBanking$istems.com Loan ID# PP0204SC SCHEDULE B AMOUNT PAID TO OTHERS ON YOUR BEHALF (CONTINUED) Lender/Creditor: The Washington Savings Bank, Borrower(s): Kevin J. Krovich P'SB Date of Loan: October 1st, 2001 ITEMIZATION OF AMOUNT FINANCED OF $ 53,165.22 $ General Counsel Fee to, $ $ $ Plot Plan Fee to Photo and bsga tion Fee to Courier/ExDress Fee to Recertification Fee to Assummion Fee to wire Fee to Loan Funding Fee to Environmental Review Fee to Rent Escrow to Municipal Lien Certificate Fee to New Loan Administration Fee to Reinsnection Fee to Service Release Premium to Windstorm Insurance to Repair Escrow to Mortgage Broker Fee to Receipt of a completed copy of the Federal Truth-in-Lending Disclosure Statement and this Itemization of Amount Financed is acknowledged, and that whenever an asterisk "*" appears this represents approximate figures. wimen Kevin J. Krovich Borrower Borrower Borrower Borrower October 01, 2001 Date Date Date Date Borrower Dace Borrower Daft 31 FENSTERMACHER AND ASSOCIATES, P.C. ATTORNEYS AND COUNSELORS AT LAW MATTHEW A. SMITH DIRECT DIAL (717) 691-5439 January 25, 2007 Geoffrey M. Biringer, Esq. MidPenn Legal Services 401 East Louther Street, Suite 103 Carlisle, Pennsylvania 17013 RE: The Washington Savings Bank V. Kevin J. Krovich Docket No. 04-6120 Civil Action - Mortgage Foreclosure Geoffrey: Enclosed please find true and accurate copies of the settlement documents for the property located at 109 North York Street, Mechanicsburg, which were initially personally handed to Kevin Krovich by John R. Fenstermacher on the date of settlement, October 1, 2001. Also, please find a new print out, from The Washington Savings Bank, of the break down of Mr. Krovich's current loan information. As we discussed earlier, I am unable to give you a speck amount as to legal fees due to a computer issue we are currently addressing, however an accurate estimate would be between $12,000.00 and $12,500.00. (Legal Fees are reflected in the "Other" column.) Should you have any questions, please do not hesitate to call me. Thank you. Very truly yours, FENSTERMACHER AND ASSOCIATES, P.C. By: Matthe aron Smith PLEASE RESPOND TO: MECHANICSBURG OFFICE: OCEAN CITY OFFICE: THE JONAS RUPP HOUSE (717) 691-5400 26 BAY AVENUE 5115 FAST TRINDLE ROAD FAX (717) 691-5441 OCEAN CITY, NJ 08226 TNT JONAS R&fPP NOGST c/o 109 North York Street Mechanicsburg, Pennsylvania [ PA 17055-62201 The Washington Savings Bank Date: February 27, 2006 4201 Mitchellville Road, Suite #500 Bowie, Maryland [ MD 20716-31671 RE: Loan Account #1310001601 Dear Ms. Deborrah Scriber, Loan Servicing: As per our telephone conversation of February 22, 2006, please find enclosed, copies of incomplete, unsigned and unwitnessed closing documents as follows: The Note and Mortgage. - Certificate of Residence. - Error and Omissions Compliance Agreement. - First Lien Letter. - HUD Settlement Certification. - Name Affidavit. - Occupancy Affidavit and Financial Status. - RESPA Compliance Certification. - Schedule B (Amount paid to others on your behalf). Additionally, I am enclosing copies of the following incomplete/unsigned documents: Acknowledgement and Receipt of Settlement Statement. - Borrower's Certification and Authorization. - Employment Certification. - Flood Insurance Certification Notice. - Hold Harmless for Termite Inspection. - Itemization of Amount Financed. - Notice of Right to Copy of Appraisal. - Notice of Right to Cancel. - Acknowledgement of Receipt by Borrower. - Certificate that Customer Did Not Rescind Transaction. - Real Estate Tax Certification. - Request for Copy or Transcript of Tax Form. - Request for Taxpayer Identification Number and Certification. - Servicing Disclosure Statement. As discussed, I did not receive an Affiliated Business Arrangement (AfBA) Disclosure, HUD-1 or disclosure Settlement Statement, Initial Escrow Disclosure, and Truth-in-lending disclosure. In conclusion, I am requesting copies of all completed closing documents that I should have received at closing to include any document that I may have omitted. Thank you. Sincerely, -rte Kevin J. Krovich (717) 766-4448 ITEMIZATION OF AMOUNT FINANCED Loan Number: PP0204SC Date: October 01, 2001 Loan Amount S S5,000.00 Name of Borrower: Kevin J. Krovieh Address of Borrower: Name of Lender: The Washington Savings Bank, FSB Address of Lender: 4201 Mitchellville Road, Snits 300 Bowie, MD 20716 Property Address: 109 N. York Street Mechanicsburg, PEWSYLVANIII 17055 Itemization of Amount Fitwwed of $ 53,165.22 Amount given to you directly $ 53,165.22 Amount paid on your account $ Amount paid to others on your behalf Appraisal fee to appraiser $ report tee ta:redtt ....... rting agency cna?c . ? Hazard insurance to insurance agency $ I:7votF:utsurance-?oo i>ffi?r?ce y ..., .. _ .. _ Settlement closing fees to S Abstract Qraltle search to tale' iii co.:.. _ :.:,- S Document preparation fee to DoePrep Fee/TNSB $ 295.00 °Ntisc. ;tttlt fas?to title`co - ::: Notary fee to $ ,Attorneys' fezsto ,.._ .. - - -. Title insurance premium to title ins. co. $ °Filiag fee 'to public officials/recording < . Survey. $ :Pest inspection. a s Prepaid finance cbat ges ,S ? 55?0.OIa- Loan discount $ 82S.00 Przpatd`ittterest'.( -4 -RYs) 52.72 Mortgage insurance $ nttrutmert :S Buydown costs $ Lender's inspection The $ hoc Rrtg fee $ ' $ $ VERIFICATION I, KEVIN KROVICH, make this verification that the facts set forth in the foregoing Answer, New Matter, Affirmative Defenses and Counterclaims, are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. 4904 relating to unsworn falsification to authorities. Date: - VA. Kevin Kr ch a CERTIFICATE OF SERVICE I, Geoffrey M. Biringer, being a member in good standing of the Bar of Pennsylvania, hereby certify that I served a true and correct copy of the foregoing a, Preliminary Objections on this,Sday of December, 2008, by placing same in the United States mail, first class, postage prepaid, addressed as follows: John Fenstermacher, Esquire 5115 East Trindle Road Mechanic sburg,PA 17050 MIDPENN LEGAL SERVICES BY: Geoffrey M. Bi nger Attorney for the Defendant 401 E. Louther Street Carlisle, PA 17013 (717)243-9400 Supreme Court ID#18040 n ? ? ,-- <_:, ?-°? _? -.„.; ??? _??.. . , _ .. ;ti'±^* ?] ,- - t`1 i _ .,,? .° • THE WASHINGTON SAVINGS BANK, IN THE COURT OF COMMON PLEAS OF FSB CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. DOCKET NO. 08-2507 Civil Term KEVIN J. KROVICH, Defendant CIVIL ACTION - MORTGAGE FORECLOSURE NOTICE TO PLEAD TO: Geoffrey M. Biringer, Esquire MidPenn Legal Services 401 E. Louther Street Carlisle, PA 17012 YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU. Respectfully submitted, FENSTERMACHER AND ASSOCIATES, P.C. Rohn R. Fenstermacher Supreme Court I.D. #29940 5115 East Trindle Road Mechanicsburg, PA 17050 (717) 691-5400 Attorney for Plaintiff DATED: o'(1 5-10 THE WASHINGTON SAVINGS BANK, FSB IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. KEVIN J. KROVICH, Defendant DOCKET NO. 08-2507 Civil Term CIVIL ACTION - MORTGAGE FORECLOSURE ANSWER TO NEW MATTER, AFFIRMATIVE DEFENSES AND COUNTERCLAIMS AND NOW, comes the Plaintiff, The Washington Savings Bank, FSB, by and through its attorneys, the offices of Fenstermacher and Associates, P.C. and files this Answer to New Matter, Affirmative Defenses and Counterclaims, as follows: NEW MATTER 11. Plaintiff provided the Initial Escrow Account Disclosure Statement to Defendant, a copy of which is attached as Exhibit "A" hereto. 12. Denied. Statements were provided to Defendant. 13. Denied. Strict proof thereof is demanded at trial. 14. Denied. Strict proof thereof is demanded at trial. 15. Denied. Strict proof thereof is demanded at trial. 16. Denied. Strict proof thereof is demanded at trial. 17. Denied. Strict proof thereof is demanded at trial. 18. Denied. Strict proof thereof is demanded at trial. 19. Plaintiff is not required to report mortgage payments of any borrower to a credit reporting agency. 20. Denied. Plaintiff made application as is evidenced on the application for the loan attached hereto in the amount of $55,000.00 as Exhibit "B" and that is exactly the loan that he received. 21. Denied. The Plaintiff is a federally chartered saving institution and therefore exempt from the requirements of the Commonwealth of Pennsylvania. 22. Denied. Defendant attempted to forward the Notice of Right to Cancel on January 30, 2007, however, at the time of closing on the loan, he signed a receipt for his Notice of Right to Cancel which is attached hereto as Exhibit "C" requiring him to do so within three business days. 23. Denied. Strict proof thereof is demanded at trial. AFFIRMATIVE DEFENSES 1. LOAN INTEREST AND PROTECTION LAW 24. The answers to averments Paragraphs 1-23 are incorporated by reference. 25. The averment is legal conclusion however to the extent that an answer is required, it is denied. 26. The averment is legal conclusion however to the extent that an answer is required, it is denied. 2 27. The averment is legal conclusion however to the extent that an answer is required, it is denied. 28. The averment is legal conclusion however to the extent that an answer is required, it is denied. 29. The averment is legal conclusion however to the extent that an answer is required, it is denied. WHEREFORE, Plaintiff demands judgment in its favor and against Defendant together with any other relief the Court deems appropriate. II. MORTGAGE BANKERS & CONSUMER EQUITY PROTECTION ACT 30. The answers to averments 1-29 are hereby incorporated by reference. 31. The averment is legal conclusion however to the extent that an answer is required, it is denied. 32. The averment is legal conclusion however to the extent that an answer is required, it is denied. 33. The averment is legal conclusion however to the extent that an answer is required, it is denied. 34. The averment is legal conclusion however to the extent that an answer is required, it is denied. 35. The averment is legal conclusion however to the extent that an answer is required, it is denied. 3 WHEREFORE, Plaintiff demands judgment in its favor and against Defendant together with any other relief the Court deems appropriate. III. ESCROW ACCOUNT 36. The answers to averments 1-35 are incorporated herein by reference. 37. Denied. The Defendant is not entitled to any setoff. 38. Denied. The Defendant is not entitled to any further damages as the Plaintiff complied with the laws and strict proof thereof is demanded at trial. 39. Denied. The Defendant is not entitled to additional damages. 40. Denied. The Defendant is not entitled to any damages. WHEREFORE, Plaintiff demands judgment in its favor and against Defendant together with any other relief the Court deems appropriate. IV. RECISSION 41. The averments of Paragraphs 1-40 are incorporated herein by reference. 42. Denied. Defendant did not properly rescind the transaction and attempted to rescind the transaction over six years after he closed on the transaction. 43. Denied. Defendant is not entitled to return any monies as he has defaulted upon payments on the existing mortgage. 44. Denied. Defendant is not entitled to have his security interest cancelled without full repayment of the obligation. 4 45. Denied. Defendant is not entitled to any return of finance charge and strict proof thereof is demanded at trial. WHEREFORE, Plaintiff demands judgment in its favor and against Defendant together with any other relief the Court deems appropriate. COUNTERCLAIMS 1. LOAN INTEREST PROTECTION ACT 46. The answers to averments 1-45 are incorporated herein by reference. 47. Defendant was not damaged and he was not charged an amount in excess of the regulations that regulate federally charted savings banks. 48. Defendant was not damaged and he was not charged an amount in excess of the regulations that regulate federally charted savings banks. 49. The averment is a legal conclusion however to the extent an answer is required, it is denied. WHEREFORE, Plaintiff demands judgment in its favor and against Defendant together with any other relief the Court deems appropriate. II. MORTGAGE BANKERS AND CONSUMER EQUITY PROTECTION ACT 50. The answers to averments 1-49 are incorporated herein by reference. 5 51. Denied. Plaintiff is not required to report mortgage payments to any credit bureau. 52. Denied. Plaintiff did not violate the act and strict proof thereof is demanded at trial. WHEREFORE, Plaintiff demands judgment in its favor and against Defendant together with any other relief the Court deems appropriate. III. ESCROW 53. The answers to the averments 1-52 are incorporated herein by reference. 54. Denied. Defendant has not been damaged by any actions of the Plaintiff. Strict proof thereof is demanded at trial. 55. The averment is a legal conclusion however to the extent an answer is required, it is denied. 56. The averment is a legal conclusion however to the extent an answer is required, it is denied. 57. Denied. Defendant is not entitled to any damages. WHEREFORE, Plaintiff demands judgment in its favor and against Defendant together with any other relief the Court deems appropriate. 6 NEW MATTER 58. The Plaintiff is a federally charted savings bank and therefore, subject to regulations of the federal government. 59. Defendant's claims are barred by the Statute of Limitations. 60. Defendant's claims are barred by the Doctrine of Laches. 61. Defendant's claims are barred by the Doctrine of Equitable Estoppel. 62. Defendant's claims are barred by the Statute of Frauds 63. Defendant's claims in Equity are barred by the Doctrine of Unclean Hands. WHEREFORE, Plaintiff demands judgment in its favor and against Defendant together with any other relief the Court deems appropriate. Respectfully submitted, FENSTERMACHER AND ASSOCIATES. P.C. John Fenstermacher Supreme Court I.D. #29940 5115 East Trindle Road Mechanicsburg, PA 17050 (717) 691-5400 Attorney for Plaintiff Dated: OX 7 CERTIFICATE OF SERVICE AND NOW, on this day of February, 2009 I, John R. Fenstermacher, Esquire, hereby certify that I have served the foregoing Answer to New Matter, Affirmative Defenses and Counterclaims by mailing a true and correct copy by United States first class mail, addressed as follows: Geoffrey M. Biringer, Esquire MidPenn Legal Services 401 E. Louther Street Carlisle, PA 17012 FENSTERMACHER AND ASSOCIATES, P.C. 1 By:. Z Joh, R. Fenstermacher 9 EXHIBIT 'A' 10 INITIAL ESCROW ACCOUNT DISCLOSURE STATEMENT Date: October 01, 2001 Loan Number: PP0204SC Case Number: Servicer's Name and Address: Borrowers: e Washington Savings Bank, FSB Kevin J. Krovich 201 Mitchellville Road, Suite 300 Bowie, MD 20716 Toll Free Number: Property Address: ailing Address: 09 N. York Street achanicsburg, PBNNSYLYANIA 17055 THIS IS AN ESTIMATE OF ACTIVITY IN YOUR ESCROW ACCOUNT DURING THE COMING YEAR BASED ON PAYMENTS ANTICIPATED TO BE MADE FROM YOUR ACCOUNT. Month Payments to Payments from Escrow Account or Period Escrow Account Escrow Account Description Balance [nitial Deposit: ..... $ 386.62 ovember 96.67 483.29 ecember 96.67 579.96 anuary 96.67 204.00 8aaard Ins. 472.63 ebruary 96.67 569.30 rch 96.67 665.97 ril 96.67 214.02 County Tax 548.62 y 96.67 645.29 -a 96.67 741.96 ly 96.67 838.63 ugust 96.67 741.96 School Tax 193.34 eptember 96.67 290.01 ctober 96.67 386.68 ACCOUNT AT THE END OF TBE ESCROW ACCOUNTING COMPUTATION YEAR.) Cushion selected by servicer: $ 193.34 © Your ` Monthly mortgage payment for the coming year will be $ 529.36 of which $ 432.69 will be for principal and interest and $ 96.67 will go into your escrow account, and $ will be for discretionary items (such as life insurance, disability insurance) that you chose to be included with your monthly payment. ? Your first mortgage payment for the coming year will be $ of which $ will be for principal and interest and $ will go into your escrow account, and $ will be for discretionary items (such as life insurance, disability insurance) that you chose to be included with your monthly payment. The terms of your loan may result in changes to the monthly principal and interest payments during the year. AADFOG - =1999 /1?1/C -.MortgageBankiogSyste=.com EXHIBITS' 11 Uniforr?-` Residential Loan App'*-.ation rHE WASHINGTON SAVINGS BANK This applics8on Is designed to be completed by the applicant(s) with the lenders assistance. Applicants should complete this forth as 'Borrower or -CO-Borrower, es appircaoie. Co-Bonower information must also be provided (and the appropriate box checked) when a the income or assets of a person other than the Torrowee (including the Borrower's spouse) wlti be used as a basis for ban qualification or Q the income or assets of the Borrowers spouse will not be used as a basis for ban qualification, but his or her pabilitles must be conabered because the Borrower resides in a community property state, the security property is located in a community property state, or the Borrower Is reyitg on other property located In a community property state as a basis for repayment of the ben. 1. TYPE OF MORTGAGE AND TERMS OF LOAN Mortgages EDVA © Conventional Q Other: A gency Case Number Lender Case Number Applied for OFFIA =FmHA PP0204SC Amount Interest Rate No. of Months Amortl-"- Fixed Rate Other (explain): Type: $ 55 000.00 8.750 % 360 =GPM ARM ii. PROPERTY INFORMATION AND PURPOSE OF LOAN Subject Property Address (street city, state & zip code) County No. of Units 109 North York Street, Mechanicsburg, PA 17055 Cumberland 1 Legal Description of Subject Property (attach description If necessary) Year Built Deed Book 118 1 1981 Purpose of Loan Purchase Construction Other (explain): Property will be: Primary Seoondery Reffnanoa =Construction-Pannanent Residence Residence investment Complete this line if construction or construction-permanent loan. Year Lot Original cost Amount Existing Liens (a) Present Value of Lot (b) Cost of Improvements Total (a+b) $ S S S S Complete this line if this is a refinance loan. Year Original Cost Amount Existing Liens Purpose of Refinance Describe Improvements ©made O ro be made Acquired Cash Out 1995 $ 54,000 $ 40,000 Cost: S Title will be hell in what Name(s) Manner In which Titre will be held Estate will be held In: Kevin Krovich Single Man © Fee Simple 0 Leasehold Source of Down Payment, Settlement Charges and/or Subordinate Financing (explain) (shat expiation date) Checking/Saving Borrovirer 111. BORROWER I NFORMATION -Borrower Borrowers Name (Include Jr. or Sr. 9 applicable) Coacnowers Name (include Jr. or Sr. fi applicable) Kevin Krovich social Security Number Home Phone (Ind. area code) Age Ym Schoo l Social Security Number Horne Phone Qnd. area code) Age Yrs. Srrodot 163-58-8262 1 791-9993 37 14 Married Unmarried (kwkide.kgra, ?nde ? ((m fisted by caBormwer) Martkd Unmarried (srckwe single, Dependents not listed by Borrower) no. E::] separated dNaved, widowed) 0 I ed dWOreW, `60 Present Address (street, city, state, zip code) X ]own Q Rent 6 _ No. Yrs. Present Address (street, city. state, zip code) =own O Rent _ No. Yrs. 109 North York Street 109 North York Street Mechanicsburg, PA 17055 Mechanicsburg, PA 17055 If residing at present address for less than two years, complete the follo wing: Fenner Address (street, city, stale, zip code) =Own =Rent- No. Yrs. FormarAddreas (street, city, state, zip code) =Own O ReM _No . Yrs. Fortner Address (street, city, state. zip code) =Own Q Rat - No. Yrs. Fortner Address (street, city, state. zip code) =Own 0 Rent _ No. Yrs. Borrower IV. EMPLOYMENT INFORMATION Co-Borrower Name & Address of Employer © S9# Employed Yrs. on this job Name & Address of Employer =Self Employed Yrs, on this job Acro Clean SY 109 North York Street Yrs. employed Yrs. employed Mechanicsburg, PA 17055 coowprofese°lon wor lip p roles ion Position/Titla/Type of Business Budness Phone (kru. was coda) Poaltlon/Titla/Type a Business Business Phone (incl. rose cods) =Cimllno 1 791-9993 If employed in current position for less than two years or if currently empl oyed in more than one position, complete the following: Name & Address of Employer ED Self Employed Data (from - to) Name & Address of Employer O Sol Employed Dates (from - to) Monthly Income Monthly Income S $ Positlort/rfile?ype of Business; Business Phone (ind. area code) Poaition/Title/Type olBusiness Business Phone (krd. ores code) Name & Address of Employer Q Salt Employed Dates (from - to) Name & Address of Employer Q Self Employed Dates (from - to) Monthy Income Monthly income $ S Position/'Title/Type d Business I Business Phone (ord. area cods) Positbr?Titla/ type of Business Business Phone (krcl. area code) Freddie Mac FOrtn 8 APE Bonowers Initials Page 1 of 4 Fannie Mae Form 1003/Rev. 10/92 Co-Borrowers Initials GENESIS 2000, 11111 pl111,111111111111111111 Krovleh 'HE WASHINGTON SAVINGS BANK V. MONTHLY INCOME A COMBINED H IN P R E INF ATI N Gross Monthly Income Borrower Co-Borrower Total any'Mm.f. present Proposed Base Empl. Income' S S S Rent S Overtime First Mortgage P&I) 402.00 s 492.69 Bonuses Outer Financing (P&q Commissions Hazard Insurance 18.18 DK4dertdt/Interest Real Estate Taxes 50.00 Net Rental Income I Mortgage Insurance Other (bowe arnW 9. 1,125.00 1 125.00 Haneowner Ann. Dues we the notice to'daecrfbs 011W incoma.• below) Total I s 1 125.00 s s 1,125.00 Total S 470.18 1s 432.69 • Bel( Empioyed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements. Describe other Income Notice: Alimony, child support, or separate Maintenance Income need not be revealed N the B/C Borrower or Co-barower C doss not choose to have h considered for repaying this ban. Monthly Amount S VI. ASSETS AND LIABILITIES This Statement and a=0==A schedules maybe oompleter }Dimly by both married and unmarried Co-Borrowers if their assets and liabilities are eurfiden joined so that the Statement fairly presented on a combined bask; otherwise separate Statements and Schedules are required. N the Co•Borrower section was completed about a spouse, this Statement and supporting schedules must be completed about that spouse aka. Completed ©Jolntly Q Not Jointly ASSETS Description Cash or Market Value ?iles and PMdped Assets. - the cretator's rum coraMntWion alneet, Nnaoeeesry. lrtdkate by (?7 those lleb s, ad&m and account num lMies whirl, vA be eeaNied wo ber for all outwnmrp debts, n dWa real estate owned a Cash deposit toward purchase held by: S wont remenckv of au wow wopwty. monthl y Mac e t to pay a ipn s Name and address of Company (R.E. Loan) S Payt/Mos. S Lld checking and sevhhp account below Commerce Bank Name and address of Bank S&L, or Credit Union Waypoint Bank BOX 1711 P O . . PA 17105 Harrisburg AccLno• 402.00 40,000• . Name and address of Company (Charge Acct) S PayVMos. S AccL no. 1800015927 Is 244.06 Member 1 FCU Name and address of Bank S&L, or Credit Union Aoct. no. 3346801 892.00 892* Name and address of Company (Charge Acct) S Payt/Mos. S AccL no. S MKMACLLC Name and address of Bank S&L, or Credit Union Acs. no.712MKM036632 599.00 599• Name and address of Company (Charge Act.) S Payt/Mos. S AM. no. Is Coidata/Sunoc Name and address of Bank S&L, or Credit Union Acct. no. $0050088652479 449.00 449" Name and address of Company S PayL/Mos. S Acct. no. S Stock & Bonds (Company namdnumber & description) S AocL no. Name and address of Company S Payt/Mos. S Life Insurance net cash value Face amount S $ Subtotal Liquid Asset I s 244 Real estate owned (enter marled value S from schedule of real estate owned) 82 000 AooL no. Vested hitis In retirement fund $ Name and address of Company S Payt/Mos. S Not worth of business(es) owned (attach financial statement) S Automobiles owned (make and year) Chevy Van $ 2,500 Buick Century 1,5W Acct. no. AW-w/Chad Sippon/Sepwate Maintenance PMnerds Owed to: $ Other Assets (itemize) $ Carpet Equipment & S 40,000 Jab Related Expense (Child dare, union dues, etc.) S Total Monthly Payments $ Total Assets a S 126,244 (f a tminusb) I s 84 , 304 Total Lkbnroee b. S 41, 940 r•reCOle seat Form \ p/p2 Borrower's Initial I!` Page 2 of 4 GENESIS 2000, INC.' W15.0 • (800) 882.0504 Fannie Mae Form 1003/Rev. 10/92 Co-Borrower's Initials 'HE WASHINGTON SAVINGS BANK VI. ASSETS AND LIABILITIES cent Schedule of Real Estate Owned (ti additional properties are owned, use continuation sheet) Insurance, Properly Address (enter S M sold, PS M pending saie Type or Present Amount of Gross Mortgage Maintenance, Net of Rental Income Payments Taxes d, Misc. Rental Income or R If rental being held for income) Property Market Value Mortgages & 109 North York Street S S S S S $ M.ehardosburg, PA 17055 0 0 82,000 40 , 000 0.00 402.00 68.18 0.00 s s s s S S Totals 82 000 40 000 0.00 402.00 68.18 0.00 List any additional names under which credit has previously been receleed and Indicate appropriate credhor name(s) and account number(s): Akemate Name Cradhor Name Account Number VII. DETAILS OF TRANSACTION Vlll. DECLARATIONS a. Purchase rice $ If you answer yes' to any questions a through 1, please Borrower Co4orrower use continuation sheet for explanation Yea No Yes No b. Aherall". Improvements, repairs . c. Land (6 acquired separately) a. Are there any outaWWbp judgments against you? Q FX-1 Q Q d Refinance ncl. debts to be paid off) 41 940.00 b. Have you been declared bankrupt wdtnkh the paw 7 years? Q ® Q Q a. ardmeted prepaid Items c. Have you had progeny foreclosed upon or given title or deed in lieu Q ® Q Q I. Estimated closing costa Mered In the last years? 7 PMI, MIP, Funding Fee d. Are you a party to a lawsuit? Q © Q Q h. Discount (H Borrower will pay) e. Have you directly or Indirectly bean obligated on any ban which resulted In foreclosure , transfer of 1. Toed cosh add Items a through h) 41 940.00 title In Maud foreclosure, or Migment? (This would include such khans w home mo SBA bens, home Improvement loam, educational bens, manufactured (mobile) hom rtgage krane, any e bans j. SubordNat@ financi morttuge finerciur odiaatlon bond, or ban gusv?tee. M'Yes: provide deWk, indudln d edddd f L d FFU1 r VA M b , 9 date, name k. Borrowers olosirg Ccete paid by Sager es er, an a rree o en o pee num any, and roasaro for the action.) er, Q © Q Q 1. Other Credits (explain) I. Are you prawn do"tient or M default and any Federal debt or any otter ban, mortgage, llnancW obligation, bond, or teach guarantee? M lies,' give details all described In the preceding question. © Q Q Q Paid Cha In GFE g. Are you obligated to pay aMnhOny, child support, or separate maintenance? Q © Q Q h. Is any pan of the down payment borrowed? Q ® Q Q 1. Are you a co-maker or endorser on a rate? Q ® Q Q m. Loan amount ---------------------------------a Q J. Aro you s U.3. dtlzen? Q Q (euckde PW, MIP, FxdkV Fee Ikherwed) 55'0W.00' k. Are you a permanent resident alien? Q © Q Q n. PMI, MIP, Furdl Fee financed 1. Do you intend to occupy the properly as your primary residence? ©0 Q Q o. Loan amount (add m 5 n) If 'Yes; complete question m below. 55 000.00 m. Have you had an ownership interest In a property in the last three yawn? Q Q Q Q p. Cash t0 Borrower (PR), (1) at type Of did you own - principal PR d H 2) (subtract J. k,laoecmq n home (S ? ), «trro property 1( l (2) di sp ( ?bbMy S r se o w ot er 1 ,1 13 060.00 w y pou r jolr* ith aano tne r ponsa our s (SP) IX. ACKNO WLEDGMENT AND AGREEMENT The undenignad apecMfc* acknowledge(s) and agree(sthat: (1) the ban requested by this appllca wid be secured by a first mortgage or deed of trust on the property tlexribed here n; )the property win not be used ter achy III w Or prohibited purpose or use: (3) all tatsitwements made M this application are made for the purpose of oWUning the ban Indicated horde; (4) occupation of the property will be as Indicated above- (J6) verification or roverftatbn of any Information oogamed in the !Dl; mayy be made at anytime by the Lender, Vents, successors and assigns, altar direayr or through a credit reporting agency, from any Sam named in this applkala nd lFre orl8lrs! d this ssppppq cation willbe returned by the Lerhder, even lihe loon Is not approved: (6) the successors anal?ne will rwyte the h contained ile a lication d I/We h a t d v ti in bli ti d/ t th I f l ti ti i ick nts of the mateM acts pp an o amen a e con nu g o ga on an or supp emen n orma e on n represented herein should dharge enter to In the event my/our payments on the ban !n ids become r?r?nqueent, the Lender, agents, successors T and assigns, may, In addition to a8 their oth er end remedies, report my/ow name(s) and accountInformation to a credit reporting a9 (8) ownership of the ban may he 1 starred to suocessor orasdgn of the Lender without rnotp to me and/o the administration of the ban account ma be traneterrel an a ent succ s or as i y g e or gn s s of the Lender with prior note b me; () the Lerhder, its agents, successors and assigns make no representations or warranties, express or Implied, to-the Borrower(s) regarding the property the condition d the property or be value of the property , , . Right b Rap" Copy of ApprWal. VWe have the right to a copy of the appraisal report used In connection with this application for credit To obtain a copy. I/We must send Lerxfer a written request at the rg address Lender figs provided. Lender must hewn from ma/us no later than 90 days after Lender notifies me/us about the action taken on this application, or Vwe withdrew this appligtlOn. CenifbwlaK VWe candy that the Information provided In this application Is true and correct as of the date sat IOM oppos /our signature(s) on this application and acknowledge my/our understanding that arty intentional or nsofigmd rtJsrepraaentatbn( d the Information contained in this aon may result in CH liability and/or criminal paneltlee Including but not limited to fine or Imprisonment or tidFh under the rovisions Title 18 thdtsd Stelae Code cti S d Il bbld f i17 t d , p , . e on seq. an a N or mone ary amages to ions Lender, Ms agents, suers and assigns, Insurers and any other person who may suffer any lose due to reliance upon any mbsrepresentatlon wh h`.b1 Vwe have made on this application. Borrowers rob" Date 0-0i-0 Co-Borrowers Signature Date 1 X X. INFORMATION FOR GOVERNMENT MONITORING PURPOSES The following information Is requested by the Federal Government for certain types of bans related to a dwelling, In order to monitor the Lenders compliance with equal credit opporknity, fair housing and home mortgage disclosure laws. You are not required to furnish this Information, but are encouraged to do so. The law provides that a Lender may neither discriminate an the bade of this iformadon, nor on whether you dhoose to furnish It However, M you dhooss not to fumish it, under Federal regulations this Lender Is required to note race and sex on the basis of visual observation or surname. M you do not wish to fumish the above i *rmatlon, please the& the tax below. (Lender must review the above material to assure that the disclosures satisfy ant requirements to which the Lender is subject under appitcade aisle law for the particular type Of loan appfied fur.) BORROWER CO-BORROWER Q I do not wish to furnish this information Q 1 do not wish to fumish this Information Race/Notional Q American Indian or Alaskan Native Q Asian or Pacific Islander Rep/Nwfonw Q American Indian or Masan Native Q Asian or Pacific Islander Origin: Blade, riot d Q Hbpank © Hlepank origi White, not ofn Origin: &ack, rhos ofin Q His anic White, nit d Q tflspank origtrh Q Hispanb ori Q Hi i i i g p span c or n g Q Other (specihr) Q Other (specify) Sex: Female Male Sex: Female Male To be cornpleted by Interviewer Interviewers Name (print or type) Name and Address of Interviewers Employer This application was taken by: Scott Clayton THE WASHINGT N Q fap.to.tap Interview Interviewers Synaturs Date O SAVINGS BANK Q? by 4201 MITCHELLVILLE RD. SUITE 300 Q by Wophona Interviewers Phone Number (Incl. area code) 1 691-0111 BOWIE, , MD 20716 waddle Mac form 65/Rev. 10/92 Page 3 of 4 Fannie Mae Forth 1003/Rev.10/92 GENESIS 2000, INC.. W 15.0 - (800) 062-0504 Continuation Fheet/Residential Loan !`,)plication GENESIS 2000, INC. ' W15.0 • (600) 882-0504 Freddie Mee Form 65/Rev.10/92 Pepe 4 of 4 ranrue mae rorm j w nw. i- EXHIBIT 'C' NOTICE OF RIGHT TO CANCEL (Credit Transaction Secured by Your Home) Loan ID # PP0204SC CREDITOR: The Washington Savings Bank, FSB 109 N. York Street Mechanicsburg, P8Lt1MVANIA 17055 (Identification of Transaction) Your Right To Cancel $1 This Is An Original Extension of Credit: You are entering into a transaction that will result in a security interest in your home. You have a legal right under federal law to cancel this transaction, without cost, within three business days from whichever of the following events occurs last: (1) The date of the transaction, which is October 1st, 2001 ; or, (2) The date you received your Truth In Lending Disclosures; or, (3) The date you received this notice of your right to cancel. If you cancel the transaction, the security interest is also cancelled. Within 20 calendar days after we receive your notice, we must take the steps necessary to reflect the fact that the security interest in your home has been cancelled, and we must return to you any money you have given to us or to anyone else in connection with this transaction. You may keep any money we have given you until we have done the things mentioned above, but you must then offer to return the money. Money must be returned to the address below. If we do not take possession of the money within 20 calendar days of your offer, you may keep it without further obligation. ? This Is An Additional Credit Transaction: (Refinance with Some Creditor) You are entering into a new transaction to increase the amount of credit provided to you. We acquired a security interest in your home under the original transaction and will retain that security interest in the new transaction. You have a legal right under federal law to cancel the new transaction, without cost, within three business days from whichever of the following three events occurs last: (1) The date of the transaction, which is October 1st, 2001 ; or, (2) The date you received your Truth In Lending Disclosures; or, (3) The date you received this notice of your right to cancel. If you cancel the new transaction, your cancellation will apply only to the increase in the amount of the credit. It will not affect the amount that you presently owe or the security interest.we already have in your home. If you cancel, the security interest as it applies to the increased amount is also cancelled. Within 20 calendar days after we receive your notice of cancellation of the new transaction, we must take the steps necessary to reflect the fact that our security interest in your home no longer applies to the increase of credit. We must also return any money you have given to us or anyone else in connection with that new transaction. You may keep any money we have given you in the new transaction until we have done the things mentioned above, but you must then offer to return the money at the address below. If we do not take possession of the money within 20 calendar days of your offer, you may keep it without further obligation. How to Cancel: If you decide to cancel this transaction, you may do so by notifying us in writing at: The Washington Savings Bank, FSB, 4201 Mitchellville Road, Suite 300, Bowie, Maryland 20716 You may use any written statement that is signed and dated by you and states your intention to cancel, or, you may use this notice by signing and dating below. Keep one copy of this notice because it contains important information about your rights. If you cancel by mail or telegram, you must send the notice no later than midnight of October 4th, 2001 (or midnight of the third business day following the latest of the three events listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time. I WISH TO CANCEL THE TRANSACTION DESCRIBED ABOVE. Date -Consumer's signature (sign here to cancel) xWSBBI - 03302001 Pale 1 of 2 www.MartpgeBaukb*System.com Loan ID # PP0204SC ACKNOWLEDGMENT OF RECEIPT BY BORROWER: I hereby acknowledge receipt of two copies of this Notice of my right to cancel the credit transaction described above. October lot, 2001 Date Kevin J. Kr ich -Borrower Date Date Date Daze Date -Borrower -Borrower -Borrower -Borrower -Borrower %WSBB2 - 03302001 Page 2 or 2 www.MortpgeBaddugSystems.com co TI t y THE WASHINGTON SAVINGS BANK, FSB Plaintiff V. KEVIN J. KROVICH, Defendant N , I (In IN THE COURT OF COMMON IAS OF CUMBERLAND COUNTY, PA'; ' DOCKET NO. 08-2507 Civil Term CIVIL ACTION-MORTGAGE :FORECLOSURE PETITION FOR LEAVE TO WITHDRAW Petitioner, MidPenn Legal Services, hereby petitions to withdraw from further representation of Defendant, Kevin Krovich, pursuant to Pa.R.C.P. No.1012, and in support thereof, avers the following. 1. MidPenn Legal Services has been representing Defendant since March, 2006 in an effort to avoid foreclosure of his residential real estate located at 109 North York Street, Mechanicsburg, PA 17055. 2. The case has been dormant for some time due to the illness of counsel for the Plaintiff, but counsel for the Plaintiff indicates a desire to move the case which is in the discovery stage at the time of this petition. 3. Petitioner has recently learned that Defendant no longer resides at the above address, but resides at 4628 South Clearview Drive, Camp Hill, PA 17011. 4. Pursuant to MidPenn Legal Services' guidelines, representation in mortgage foreclosure cases is limited to residential real estate, and the property foreclosed upon is being leased to another individual and is not now the residence of the Defendant. 5. Further, and without revealing any confidential information which may prejudice Defendant, undersigned counsel alleges that: a. The Defendant insists on taking action with which undersigned counsel has a fundamental disagreement; b. Representation has been rendered unreasonably difficult by the Defendant; 6. Undersigned counsel has good cause to withdraw as counsel for Defendant, pursuant to Rule 1.16(b)(1),(4), and(7) of the Pennsylvania Rules of Professional Conduct. 7. At this time, it is unknown when any further action can take place in this matter, and permitting MidPenn Legal Services to withdraw at this time would neither unduly prejudice nor have a materially adverse effect on Defendant's interests and would, allow Defendant time to obtain alternative counsel. 8. Counsel has contacted Attorney John Fenstermacher, counsel for Plaintiff, who concurs with the relief requested. 9. Counsel sought Defendant's concurrence which concurrence was denied. WHEREFORE, MidPenn Legal Services requests the Court issue a Rule to the Defendant for him to show cause, if any he has, why the relief sought by Petitioner should not be granted. Respectfully submitted, MIDPENN LEGAL SERVICES By: 10 Geoffrey M.B' 'nger 401 E. Louther Street Carlisle, PA 17013 (717) 243-9400 Supreme Court ID#18040 CERTIFICATE OF SERVICE I, Geoffrey M. Biringer, being a member in good standing of the Bar of Pennsylvania, hereby certify that I served a true and correct copy of the foregoing Petition For Leave To Withdraw on this 5th day of May, 2010, by placing same in the United States mail, first class, postage prepaid, addressed as follows, which service satisfies the requirements of Pa.R.C.P.No.440: Kevin Krovich 4628 South Clearview Drive Camp Hill, PA 17011 John Fenstermacher, Esquire 5115 East Trindle Road Mechanicsburg, PA 17050 By: ` Geoffrey M' Airing r Attorney for the Defendants 401 E. Louther Street Carlisle, PA 17013 (717)243-9400 Supreme Court ID#18040 C? MAY 0620106 THE WASHINGTON SAVINGS BANK, IN THE COURT OF COMMON PLEAS FSB : OF CUMBERLAND COUNTY, PA Plaintiff DOCKET NO. 08-2507 Civil Term V. KEVIN J. KROVICH, Defendant CIVIL ACTION-MORTGAGE :FORECLOSURE ORDER AND NOW, this //?o day of a y, 2010, a Rule is issued on the r S Defendant, returnable on the day of o-j?Tk, { 2010, to show cause, if any he has, why MidPenn Legal Services should not be allowed to withdraw as counsel in the above. By the Court: Distribution: ?Geoffrey M. Biringer, Esquire MidPenn Legal Services 401 E. Louther Street Carlisle, PA 17013 ohn Fenstermacher, Esquire 5115 East Trindle Road Mecahnicsburg, PA 17050 evin Krovich 4628 South Clearview Drive Camp Hill, PA 17011 FI-S Z sr• w '.C+1: t)F TK W-r} --t-V-1TAR`t 2010 JUN -1 PM 1' d4 THE WASHINGTON SAVINGS BANK, Plaintiff V. 0A IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA : DOCKET NO. 08-2507 KEVIN J. KROVICH, CIVIL ACTION - Defendant MORTGAGE FORECLOUSE 7'i 1-?e-S4?A6-L ARULE TO SHOW CAUSE Respondent, Kevin Joseph Krovich, returns the Rule issued on the Defendant this 1 st day of June, 2010, to show cause why MidPenn Legal Services (MPLS) should not be allowed to withdraw as counsel in the above, and in support thereof, avers the following: MPLS represented Defendant on Plaintiffs efforts to foreclose on residential real estate located at 109 North York Street, Mechanicsburg, during the period of March 9, 2006 through June 6, 2007, with the Order of Court dismissing the Plaintiffs complaint in the above at term 04-6120 (attached hereto as Exhibit "A") 2. The same case, now at term 08-2507, has been idle since it's commencement while Defendant has always desired to move the matter. 3. MPLS was aware that Defendant has since resided at 4628 South Clearview Drive, Camp Hill, pursuant to Sheriffs Return dated October 9, 2008, in the above, and by communications to Petitioner, Attorney Geoffrey Biringer. 4. In any event, MPLS agreed to represent the Defendant pursuant to Retainer Agreement dated October 16, 2008, and filed Preliminary Objections for lack of jurisdiction over the subject matter of the action above on October 27, 2008. Further, general allegations that Defendant has rendered representation difficult or insist on taking action which Petitioner has a fundamental disagreement lacks sufficient specificity to allow an adequate response. 6. Petitioner has not demonstrated good cause to withdraw MPLS as counsel for Defendant pursuant to any Rules of Professional Conduct or MPLS procedures. 7. At this time, it appears that due diligence in expediting litigation has not been exercised, moreover, further action can take place at any time, and permitting MPLS to withdraw may adversely effect or unduly prejudice Defendant's interest. 8. Petitioner was asked about Defendant's intent with this case. Defendant's position is to defend this matter as set forth in the pleadings in the above and discovery examinations being that Plaintiff refused Defendant's offer of settlement. 9. Counsel should abide by a client's decisions within the scope of the law, and representation should not be denied to people who are unable to afford it, or whose cause may be controversial, as representation does not constitute approval of views. WHEREFORE, the petition for leave to withdraw should not be granted and MPLS should not be allowed to withdraw as counsel for the Defendant in the above. Respectfully submitted by, Date: W//t12.0/U Kevin Joseph Krovich, Respondent 4628 South Clearview Drive Camp Hill, PA 17011 (717) 730-3779 THE WASHINGTON SAVINGS BANK, Plaintiff V. KEVIN J. KROVICH, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 04-6120 CIVIL ACTION MORTGAGE FORECLOSURE ORDER OF COURT AND NOW, this 6th day of June, 2007, it appearing that the facts and law are not in dispute, the petition is granted. The matter is removed from the upcoming Sheriff's Sale, the judgment is voided, and the complaint DISMISSED. attnew Aaron Smith, Esquire The Jonas Rupp House 5115 East Trindle Road Mechanicsburg, PA 17050 For the Plaintiff Ad ffrey M. Biringer, Esquire Penn Legal Services 401 E. Louther Street Carlisle, PA 17013 For the Defendant Sheriff srs J His IT 111A Edward E. Guido, J. CERTIFICATE OF SERVICE I, Kevin Joseph Krovich, Respondent, hereby certify that I served a true and correct copy of the foregoing Rule To Show Cause why MidPenn Legal Services (MPLS) should not be allowed to withdraw as counsel on this 1 st day of June, 2010, by placing same in the United States mail, first class, postage prepaid, addressed as follows, which service satisfies the requirements of Pa.R.C.P.No.440: Geoffrey M. Biringer, Esquire MidPenn Legal Services 401 East Louther Street Carlisle, PA 17013 John R. Fenstermacher, Esquire Fenstermacher And Associates, P.C. 5115 East Trindle Road Mechanicsburg, PA 17050 Y: Date: 61-11-2 D! U B Kevin Joseph Krovich, Respondent 4628 South Clearview Drive Camp Hill, PA 17011 (717) 730-3779 THE WASHINGTON SAVINGS BANK, PLAINTIFF V. KEVIN J. KROVICH, DEFENDANT IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 08-2507 CIVIL TERM ORDER OF COURT AND NOW, this / ~~ day of July, 2010, upon consideration of the petition for leave to withdraw filed by MidPenn Legal Services and defendant's response thereto, the court is satisfied that there is good cause to permit petitioner to withdraw as counsel for defendant pursuant to Pennsylvania Rule of Professional Conduct 1.16(b). Specifically, the court finds as follows: (1) With respect to R.P.C. 1.16(b)(1), this withdrawal can be accomplished without material adverse affect on the interests of defendant. (2) With respect to R.P.C. 1.16(b)(4), the tone and content of defendant's response to the petition manifest a fundamental disagreement between counsel and client. (3) With respect to R.P.C. 1.16(b)(7), the nature of the response by defendant demonstrates the validity of the petition in that the continued representation of the defendant would be unreasonably difficult. Defendant asserts in paragraph 9 of his response that "[c]ounsel should abide by a client's decisions within the scope of the law, and representation should not be denied to people who are unable to afford it, or whose cause may be controversial, as representation does not constitute approval of views." As such, requiring petitioner to continue to represent a person who insists on such representation despite the fact that he appears unlikely to heed anyone's advice, would be an act in futility. Therefore the court directs that the petition of MidPenn Legal Services to withdraw as counsel IS GRANTED. By the Court, Albert . Masland, J. Geoffrey M. Biringer, Esquire For MidPenn Legal Services ~ John Fenstermacher, Esquire '' Kevin Krovich 4628 South Clearview Drive Camp Hill, PA 17011 ~ :sal N _.. i ~- -~, r~ '~ ~ r ~ ~7~/3~/ - 1.. c-- -~- -r~ ' W.- ~ l~ ~ ~" =~ ~ ;-. 4 t: _" _ ~- ~.~~. JUL ,x81010 JASON G. FOLK, : IN THE COURT OF COMMON PLEAS OF Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA V, : N0.2008-4850 CIVIL ACTION -LAW LINDSAY LINK, ~ a Defendant : IN CUSTODY r. ~ ~' ~ ~_. ~ :~ I° ~. r~r~; ~ ORDER OF COURT "' ~ w ~ `~ tiJ ~• ..me. -- AND NOW, this ~ t~ day of T v ~, , 2010, upon ~-.. ~' consideration of the attached Custody Conciliation eport, it is arlered and di rect~d ash- follows: 1. A Hearing is scheduled in Court Room No. ~_, of the Cumberland County Court House, on the day of _L~~tev , 2010, at $ /: 3 d o'clock, ~. M., at which time testimony will be taken. For purposes of this Hearing, the Father shall be deemed to be the moving party and shall proceed initially with testimony. Counsel for each party shall file with the Court and opposing counsel a Memorandum setting forth each party's position on custody, a list of witnesses who will be expected to testify at the Hearing and a summary of the anticipated testimony of each witness. These Memoranda shall be filed at least five days prior to the Hearing date. 2. Pending further Order of Court or agreement of the parties, the prior Order of Court dated February 5, 2009 of the Honorable J. Wesley Oler, Jr. shall remain in full force and effect with the following modification. 3. Paternal Grandmother shall supervise Father's periods of partial physical custody. 4. The parties may modify the provisions of this Order by mutual consent. In the absence of mutual consent, the terms of this Order shall control. BY THE COURT, J. esley Oler, J J. Ycc: Marcus A. McKnight, III, Esquire, Counsel or Father / Theresa Barrett Male, Esquire, Counsel for Mother CUPi~S n1a.~~~e0( 7~13/i0 ~~ JASON G. FOLK, : IN THE COURT OF COMMON PLEAS OF Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA V. : N0.2008-4850 CIVIL ACTION -LAW LINDSAY LINK, Defendant : IN CUSTODY PRIOR JUDGE: J. Wesley Oler, Jr., J. CUSTODY CONCILIATION SUMMARY REPORT IN ACCORDANCE WITH CUMBERLAND COUNTY RULE OF CIVIL PROCEDURE 1915.3-8, the undersigned Custody Conciliator submits the following report: 1. The pertinent information concerning the Children who are the subject of this litigation is as follows: NAME DATE OF BIRTH CURRENTLY IN CUSTODY OF Brianna E. Folk August 15, 2001 Mother 2. A Conciliation Conference was held July 8, 2010 with the following individuals in attendance: The Father, Jason G. Folk, with his counsel, Marcus A. McKnight, III, Esquire, and the Mother, Lindsay Link, with her counsel, Theresa Barrett Male, Esquire. 3. Father's position on custody is as follows: Father seeks shared legal and partial physical custody on alternating weekends. Father has filed both a Petition to Modify and a Contempt Petition, alleging that Mother has withheld the child from him during his periods of partial physical custody as set forth in the prior Order. Father is also seeking reasonable attorney fees if Mother is found to be in contempt. 4. Mother's position on custody is as follows: Mother seeks shared legal and primary physical custody, with Father having supervised visitation with his mother acting as the supervisor. Mother asserts that Father has failed to exercise all of his periods of custody and that he has four criminal charges pending involving drug issues. 5. The Conciliator recommends an Order in the form as attached scheduling a Hearing and entering an Order of Court modifying the prior Order to allow for Father's periods of partial physical custody to be supervised. It is expected that the Hearing will require one-half day. ~~~~ ~ V Date acq line M. Verney, Esquire Custody Conciliator c ~+ ~,. .+ ~o ~ ~ V .. ~ H ~ W:. s'~ia' ' ... IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE WASHINGTON SAVINGS BANK, FSB, Plaintiff v. . KEVIN J. KROVICH, Defendant DOCKET N0.08-2507 Civil Term CIVIL ACTION -MORTGAGE FORECLOSURE PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter my appearance on behalf of the Plaintiff, The Washington Savings Bank, FSB, in the above matter. Respectfully submitted, STOCK AND LEADER By: eil A. Slenker, Esquire Supreme Court I.D. #: 77974 Attorney for Plaintiff Susquehanna Commerce Center -East 221 West Philadelphia Street, Suite 600 York, PA 17401-2994 Phone: 717-846-9800 Fax: 717-843-6134 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE WASHINGTON SAVINGS BANK, FSB, Plaintiff DOCKET NO. 08-2507 Civil Term CIVIL ACTION -MORTGAGE v. FORECLOSURE KEVIN J. KROVICH, Defendant CERTIFICATE OF SERVICE AND NOW, this_,,~-day of /~ , 2010, I, Neil A. Sleeker, Esquire, of the law firm of Stock and Leader, attorneys for Plaintiff, The Washington Savings Bank, FSB, hereby certify that I served the within Praecipe for Entry of Appearance this day by depositing the same in the United States mail, postage prepaid, in York, Pennsylvania, addressed to: Geoffrey M. Biringer, Esquire MidPenn Legal Services 401 E. Louther Street Carlisle, PA 17013 Respectfully submitted, STOCK AND LEADER By: A. Sleeker, Esquire Supreme Court I.D. #: 77974 Attorney for Plaintiff Susquehanna Commerce Center -East 221 West Philadelphia Street, Suite 600 York, PA 17401-2994 Phone: 717-846-9800 Fax: 717-843-6134 of CU4 David D. Buell e l enee X Simpson Prothonotary :� a , 15` Deputy Prothonotary ' iie_r„s 4_ Z _�,! v . a,t �irkS. Sohonage, ESQ E�� � ;,ss Irene E. Morrow Solicitor 1750 2nd Deputy Prothonotary Office of the Prothonotary Cumberland County, Pennsylvania O - 2O7 CIVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 29TH DAY OF OCTOBER, 2013,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, DAVID D. BUELL PROTHONOTARY One Courthouse Square • Suite 100 • Carlisle, PA. 17013 • (717)240-6195 • Fa,(717)240-6573