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HomeMy WebLinkAbout08-4574 PHELAN HALLINAN & SCHMIEG, LLP LAWRENCE T. PHELAN, ESQ., Id. No. 32227 FRANCIS S. HALLINAN, ESQ., Id. No. 62695 DANIEL G. SCHMIEG, ESQ., Id. No. 62205 MICHELE M. BRADFORD, ESQ., Id. No. 69849 JUDITH T. ROMANO, ESQ., Id. No. 58745 SHEETAL SHAH-JANI, ESQ., Id. No. 81760 JENINE R. DAVEY, ESQ., Id. No. 87077 LAUREN R. TABAS, ESQ., Id. No. 93337 VIVEK SRIVASTAVA, ESQ., Id. No. 202331 JAY B. JONES, ESQ., Id. No. 86657 PETER MULCAHY, ESQ., Id. No. 61791 ANDREW SPIVACK, ESQ., Id. No. 84439 JAIME MCGUINNESS, ESQ., Id. No. 90134 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHIA, PA 19103 (215) 563-7000 183214 FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION 4000 HORIZON WAY IRVING, TX 75063 Plaintiff V. ROSE SMITH 331 F STREET CARLISLE, PA 17013-1346 Defendant ATTORNEY FOR PLAINTIFF COURT OF COMMON PLEAS CIVIL DIVISION TERM NO. 01- g57y ei,v, / -rw rm CUMBERLAND COUNTY CIVIL ACTION - LAW COMPLAINT IN MORTGAGE FORECLOSURE File #: 183214 NOTICE You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you, and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (800)990-9108 File #: 183214 IF THIS IS THE FIRST NOTICE THAT YOU HAVE RECEIVED FROM THIS OFFICE, BE ADVISED THAT: PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. § 1692 et seq. (1977), DEFENDANT(S) MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF. IF DEFENDANT(S) DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL OBTAIN AND PROVIDE DEFENDANT(S) WITH WRITTEN VERIFICATION THEREOF; OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. LIKEWISE, IF REQUESTED WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL SEND DEFENDANT(S) THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM ABOVE. THE LAW DOES NOT REQUIRE US TO WAIT UNTIL THE END OF THE THIRTY (30) DAY PERIOD FOLLOWING FIRST CONTACT WITH YOU BEFORE SUING YOU TO COLLECT THIS DEBT. EVEN THOUGH File #: 183214 THE LAW PROVIDES THAT YOUR ANSWER TO THIS COMPLAINT IS TO BE FILED IN THIS ACTION WITHIN TWENTY (20) DAYS, YOU MAY OBTAIN AN EXTENSION OF THAT TIME. FURTHERMORE, NO REQUEST WILL BE MADE TO THE COURT FOR A JUDGMENT UNTIL THE EXPIRATION OF THIRTY (30) DAYS AFTER YOU HAVE RECEIVED THIS COMPLAINT. HOWEVER, IF YOU REQUEST PROOF OF THE DEBT OR THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR WITHIN THE THIRTY (30) DAY PERIOD THAT BEGINS UPON YOUR RECEIPT OF THIS COMPLAINT, THE LAW REQUIRES US TO CEASE OUR EFFORTS (THROUGH LITIGATION OR OTHERWISE) TO COLLECT THE DEBT UNTIL WE MAIL THE REQUESTED INFORMATION TO YOU. YOU SHOULD CONSULT AN ATTORNEY FOR ADVICE CONCERNING YOUR RIGHTS AND OBLIGATIONS IN THIS SUIT. IF YOU HAVE FILED BANKRUPTCY AND RECEIVED A DISCHARGE, THIS IS NOT AN ATTEMPT TO COLLECT A;DEBT. IT IS AN ACTION TO ENFORCE A LIEN ON REAL ESTATE. File #: 183214 1. Plaintiff is FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION 4000 HORIZON WAY IRVING, TX 75063 2. The name(s) and last known address(es) of the Defendant(s) are: ROSE SMITH 331 F STREET CARLISLE, PA 17013-1346 who is/are the mortgagor(s) and/or real owner(s) of the property hereinafter described. 3. On 05/23/2007 mortgagor(s) made, executed and delivered a mortgage upon the premises hereinafter described to MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INCORPORATED AS A NOMINEE FOR FIRST HORIZON HOME LOAN CORPORATION which mortgage is recorded in the Office of the Recorder of CUMBERLAND County, in Mortgage Book No. 1993, Page 1484. The PLAINTIFF is now the legal owner of the mortgage and is in the process of formalizing an assignment of same. The mortgage and assignment(s), if any, are matters of public record and are incorporated herein by reference in accordance with Pa.R.C.P. 1019(g); which Rule relieves the Plaintiff from its obligations to attach documents to pleadings if those document's are of public record. 4. The premises subject to said mortgage is described as attached. File #: 183214 5. 6. The mortgage is in default because monthly payments of principal and interest upon said mortgage due 12/01/2007 and each month thereafter are due and unpaid, and by the terms of said mortgage, upon failure of mortgagor to make such payments after a date specified by written notice sent to Mortgagor, the entire principal balance and all interest due thereon are collectible forthwith. The following amounts are due on the mortgage: Principal Balance $156,316.48 Interest $7,863.52 11/01/2007 through 07/29/2008 (Per Diem $28.91) Attorney's Fees $1,250.00 Cumulative Late Charges $390.92 05/23/2007 to 07/29/2008 Cost of Suit and Title Search 550.00 Subtotal $166,370.92 Escrow Credit $0.00 Deficit $1,906.88 Subtotal $1,906.88 TOTAL $168,277.80 7 If the mortgage is reinstated prior to a Sheriffs Sale, the attorney's fee set forth above may be less than the amount demanded based on work actually performed. The attorney's fees requested are in conformity with the mortgage and Pennsylvania law. Plaintiff reserves its right to collect attorney's fees up to 5% of the remaining principal balance in: the event the property is sold to a third party purchaser at Sheriffs Sale, or if the complexity of the action requires additional fees in excess of the amount demanded in the Action. File #: 183214 8. Plaintiff is not seeking a judgment of personal liability (or an in personam judgment) against the Defendant(s) in the Action; however, Plaintiff reserves its right to bring a separate Action to establish that right, if such right exists. If Defendant(s) has/have received a discharge of personal liability in a bankruptcy proceeding, this Action of Mortgage Foreclosure is in no way an attempt to reestablish such personal liability discharged in bankruptcy, but only to foreclose the mortgage and sell the mortgaged premises pursuant to Pennsylvania Law. 9. Notice of Intention to Foreclose as set forth in Act 6 of 1974, Notice of Homeowner's Emergency Assistance Program pursuant to Act 91 of 1983, as amended in 1998, and/or Notice of Default as required by the mortgage document, as applicable, have been sent to the Defendant(s) on the date(s) set forth thereon, and the temporary stay as provided by said notice has terminated because Defendant(s) has/have failed to meet with the Plaintiff or an authorized consumer credit counseling agency, or has/have been denied assistance by the Pennsylvania Housing Finance Agency. File #: 183214 10. This action does not come under Act 6 of 1974 because the original mortgage amount exceeds $50,000. WHEREFORE, PLAINTIFF demands an in rem Judgment against the Defendant(s) in the sum of $168,277.80, together with interest from 07/29/2008 at the rate of $28.91 per diem to the date of Judgment, and other costs and charges collectible under the mortgage and for the foreclosure and sale of the mortgaged property. PHELAN HALLINAN & SCHMIEG, LLP By: LAWRENCE T. PHELAN, ESQVU FRANCIS S. HALLINAN, ESQUIRE DANIEL G. SCHMIEG, ESQUIRE WICHELE M. BRADFORD, ESQUIRE JUDITH T. ROMANO, ESQUIRE SHEETAL R. SHAH-JANI, ESQUIRE JENINE R. DAVEY, ESQUIRE LAUREN R. TABAS, ESQUIRE VIVEK SRIVASTAVA, ESQUIRE JAY B. JONES, ESQUIRE PETER MULCAHY, ESQUIRE ANDREW SPIVACK, ESQUIRE JAIME MCGUINNESS, ESQUIRE Attorneys for Plaintiff File #: 183214 LEGAL DESCRIPTION ALL THAT CERTAIN tract of land with the improvements thereon erected, situate on the North side of 'F' Street in the Fifth Ward of the Borough of Carlisle, County of Cumberland, and Commonwealth of Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point on the North side of 'F' Street 50 feet West of a 16 foot wide alley and 266 feet West of College Street and at line of Lot No. 14 on the hereinafter mentioned Plan of Lots; thence by the North side of 'F' Street West 50 feet to the line of Lot No. 17 on said Plan; thence by the line of Lot No. 17, North 150 feet to a 16 feet wide public alley; thence by said alley, East 50 feet to the line of Lot No. 14; thence by Lot No. 14, South 150 feet to the North side of 'F' Street, the Place of BEGINNING. BEING Lots Nos. 15 and 16, Block 34 of the Plan of Lots of Carlisle Land and Improvements C6mpany, as recorded in the Office of the Recorder of Deeds for Cumberland County in Miscellaneous Docket 11, Page 572. BEING improved with a one-story brick dwelling known as No. 331 'F' Street, Carlisle, Pennsylvania. File #: 193214 PREMISES BEING: 331 F STREET PARCEL NO: 06-19-1643-042 BEING the same premises which James G. Thomas and Connie L. Thomas, husband and wife, by deed dated September 19, 2003, and recorded September 19, 2003 in the office of the Recorder of Deeds, in and for Cumberland County, at Carlisle, Pennsylvania in Deed Book 259, Page 1986, granted and conveyed to James M. Crawford and Jody L. Crawford, husband and wife, the Grantors herein. File #: 183214 VERIFICATION I hereby state that I am the attorney for Plaintiff in this matter, that Plaintiff is outside the jurisdiction of the Court and/or the verification could not be obtained within the time allowed for the filing of the pleading, that I am authorized to make this verification pursuant to Pa.RC.P. 1024 (c), and that the statements made in the foregoing Civil Action in Mortgage Foreclosure are based upon information supplied by Plaintiff and are true and correct to the best of my knowledge, information and belief. Furthermore, counsel intends to substitute a verification from Plaintiff upon receipt. The undersigned understands that this statement is made subject to the penalties of 18 Pa.C.S. Sec. 4904 relating to unworn falsifications to authorities. M?-A MAUI Attorney for Plaintiff Y p "r Y? 4 c-? d C=" VrI --A Q pct w PHELAN HALLINAN & SCHMIEG, LLP FRANCIS S. HALLINAN, ESQ., Id. No. 62695 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHIA, PA 19103 (215) 563-7000 FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION Plaintiff VS. ROSE SMITH Defendant(s) ATTORNEY FOR PLAINTIFF COURT OF COMMON PLEAS CIVIL DIVISION NO. 08-4574 CIVIL TERM CUMBERLAND COUNTY PRAECIPE TO SUBSTITUTE VERIFICATION TO CIVIL ACTION COMPLAINT IN MORTGAGE FORECLOSURE TO THE PROTHONOTARY: Kindly substitute the attached verification for the verification originally filed with the complaint in the instant matter. Phelan Hallinan & Schmieg, LLP Attorney for Plaintiff By: 4A,11? J , Francis S. Hallinan, Esquire Date: 08/13/08 PHS #: 183214 VERIFICATION ASSISTANT VICE PROM' Marcia William hereby states that he/she is of FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION, servicing agent for Plaintiff in this matter, that he/she is authorized to take this Verification, and that the statements made in the foregoing Civil Action in Mortgage Foreclosure are true and correct to the best of his/her knowledge, information and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pa. C.S. Sec. 4904 relating to unworn falsification to authorities. Marcia Wjljiami? DATE: TitlrwJ 15TMT VICE PRESI 1 Company: FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION Loan:0061005708 File #: 183214 1? PHELAN HALLINAN & SCHMIEG, LLP LAWRENCE T. PHELAN, ESQ., Id. No. 32227 FRANCIS S. HALLINAN, ESQ., Id. No. 62695 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHIA, PA 19103 (215) 563-7000 FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION Plaintiff VS. ROSE SMITH ATTORNEY FOR PLAINTIFF COURT OF COMMON PLEAS CIVIL DIVISION NO. 08-4574 CIVIL TERM CUMBERLAND COUNTY Defendant(s) CERTIFICATE OF SERVICE I hereby certify that a strue and correct copy of Plaintiff's Praecipe to attach Verification of Complaint was sent via first class mail to the following on the date listed below: ROSE SMITH 331 F STREET CARLISLE, PA 17013-1346 Phelan Hallinan & Schmieg, LLP Attorney for Plaintiff By: /? 1 `,rticcv Francis S. Hallinan, Esquire Date: 08/13/08 + co SHERIFF'S RETURN - REGULAR CASE NO: 2008-04574 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND FIRST HORIZON HOME LOANS VS SMITH ROSE JASON VIORAL Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon SMITH ROSE the DEFENDANT , at 0021:05 HOURS, on the 7th day of August , 2008 at 331 F STREET CARLISLE, PA 17013-1346 by handing to ROSE SMITH DEFENDANT a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge e()d5)bV Q- 18.00 5.00 .00 10.00 .00 33.00 Sworn and Subscibed to before me this day of So Answers: R. Thomas Kline 08/08/2008 PHELAN HALLINAN & SCHMIEG By: heriff y S rt A.D. . FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION, Plaintiff V. ROSE SMITH, Defendant COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYVLANIA CIVIL DIVISION NO.: 08-4574 NOTICE TO PLEAD TO: First Horizion Home Loans, A Division Of First Tennessee Bank National c/o Michelle M. Bradford, Esquire One Penn Center Plaza, Suite 1400 Philadelphia, Pennsylvania 19103 You are hereby notified to file a written response to the enclosed Counterclaim within twenty (20) days from service hereof or a judgment may be entered against you. Date: February 13, 2009 Respectfully Submitted, Rominger &Associge Lee E. Oeste3tidg;4isquire 155 South Hanover Street Carlisle, Pennsylvania 17013 (717) 241-6070 Supreme Court ID # 71320 Attorney for Defendant FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION, Plaintiff V. ROSE SMITH, Defendant COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYVLANIA CIVIL DIVISION NO.: 08-4574 ANSWER TO COMPLAINT IN MORTGAGE FORECLOSURE AND COUNTERCLAIM TO: First Horizion Home Loans, A Division Of First Tennessee Bank National c/o Michelle M. Bradford, Esquire One Penn Center Plaza, Suite 1400 Philadelphia, Pennsylvania 19103 AND NOW, comes Rose Smith, by and through her counsel Lee E. Oesterling, Esquire, and in support of her Answer to Complaint in Mortgage Foreclosure, avers as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Denied. In accordance with plaintiffs break down of costs as alleged in paragraph six (6), it is specifically denied that the Defendant has failed to make payment for the periods in question. More specifically Defendant believes and therefore avers that her payments for the months of November 2007 through July 2008, have been made. Accordingly strict proof is demanded at trial. 6. Denied. In accordance with plaintiffs break down of costs as alleged in paragraph six (6), it is specifically denied that the Defendant has failed to make payment for the periods in question. More specifically Defendant believes and therefore avers that her payments for the months of November 2007 through July 2008, have been made. Accordingly strict proof is demanded at trial. 7. Denied. Paragraph seven (7) contains Plaintiffs conclusions as to the reasonableness of current and future attorney's fees therefore, strict proof is demanded at trial. 8. Denied. Paragraph eight (8) contains Plaintiffs characterizations of the underlying legal preceding and as such no answer is required to the extent that an answer is required it is specifically denied, and strict proof thereof is demanded at trial. 9. Admitted. 10. Admitted. COUNTERCLAIM 11. Previous paragraphs are incorporated by reference. 12. Defendant believes and therefore avers that the outstanding mortgage payments from November 2007 through July 2008, have been paid and as such maintains she is not in default. 13. Plaintiff accepted payments fro the period in question and applied them to Defendants mortgage for the period in question. WHEREFORE, respectfully requests Complaint in Foreclosure be dismissed. Respectfully Submitted, Date: February 13, 2009 Lee E. Oesterling, Esquire 155 South Hanover Street Carlisle, Pennsylvania 17013 (717) 241-6070 Supreme Court ID # 71320 Attorney for Defendant VERIFICATION I verify that I am the petitioner and that the statements made in the foregoing Answers are true and correct. 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: VWJk").axJ ARos-e M holl d FIRST HORIZON HOME LOANS, A DIVISION OF : COURT OF COMMON PLEAS OF FIRST TENNESSEE BANK NATIONAL : CUMBERLAND COUNTY, ASSOCIATION, : PENNSYVLANIA Plaintiff : V. CIVIL DIVISION NO.: 08-4574 ROSE SMITH, Defendant CERTIFICATE OF SERVICE I, Lee E. Oesterling, Esquire, certify that I this day served a copy of the within Answer to Complaint in Mortgage Foreclosure upon the following by depositing the same in the United States Mail, first class, postage prepaid, addressed as follows: Michelle M. Bradford, Esquire One Penn Center Plaza., Suite 1400 Philadelphia, Pennsylvania 19103 Respectfully Submitted, Date: February 13, 2009 Lee"E. squire 155 South Hanover Street Carlisle, Pennsylvania 17013 (717) 241-6070 Supreme Court ID # 71320 Attorney for Defendant pz PHELAN HALLINAN & SCHMIEG, LLP BY: Joseph P. Schalk, Esquire Identification No.: 91656 107 N. Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 First Horizon Home Loans, A Divison of First Tennessee Bank National Association Plaintiff vs. Rose Smith Attorney for Plaintiff Court Of Common Pleas Civil Division Cumberland County No. 08-4574 Civil Term Defendant PLAINTIFFS ANSWER TO DEFENDANT'S COUNTERCLAIM 11. Plaintiff incorporates herein by reference the averments of paragraphs one (1) through ten (10) of its Complaint as if set forth herein at length. 12. Denied. It is specifically denied that Plaintiff has failed to account all mortgage payments made by the Defendant to date. Further, Defendant has failed to include any documentation in support in her allegation that the outstanding mortgage payments from November 2007 through July 2008 have been paid. Strict proof is demanded. Plaintiffs counsel will provide the Defendant's counsel with a payment history for this account as soon as one is available. 13. Denied as stated. While Plaintiff might has accepted payments during the period between November 2007 and July 2008, it does not necessarily mean that those payments were applied to the months in which they were received. If the Defendant was at all delinquent on prior mortgage payments, the payments received would be applied pursuant to the terms of the mortgage. Strict proof to the contrary is demanded. Plaintiff's counsel will provide the Defendant's counsel with a payment history for this account as soon as one is available. WHEREFORE, Plaintiff respectfully requests that the Court grant the relief as requested in Plaintiffs Complaint and requests dismissal of Defendant'ss Counterclaim with prejudice. Respectfully submitted, PHELAN HALLINAN & SCHMIEG, LLP Date: By: T?5?? Jo P. chalk, Esquire Attorney for Plaintiff .- --> f VERIFICATION Joseph P. Schalk, Esquire, hereby states that he is the attorney for the Plaintiff in this action, that he is authorized to make this verification, and that the statements made in the foregoing Answer to Counterclaim are true and correct to the best of his knowledge, information and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pa.C.S. §4904 relating to unworn falsifications to authorities. PHELAN HALLINAN & SCHMIEG, LLP Date: By: Jo P. chalk, Esquire Attorney for Plaintiff 107 N. Front Street, Suite 115 Harrisburg, PA 17101 (215) 563-7000 0 PHELAN HALLINAN & SCHMIEG, LLP BY: Joseph P. Schalk, Esquire Identification No.: 91656 107 N. Front Street Suite 115 Harrisburg, PA 17101 Attorney for Plaintiff (215) 563-7000 First Horizon Home Loans, A Divison of First Tennessee Bank National Association Court Of Common Pleas Plaintiff Civil Division VS. Cumberland County Rose Smith No. 08-4574 Civil Term Defendant CERTIFICATION OF SERVICE I certify that a true and correct copy of Plaintiff's Answer to Defendant's Counterclaims was sent via first class mail to the person listed below on the date indicated: Lee E. Oesterling, Esquire 155 South Hanover Street Carlisle, PA 17013 Date: By: J h Schalk, Esquire A orney for Plaintiff `? -rr :, P,? 4 ?,., -, C„f't ---i C? ", f ? C PHELAN HALLINAN & SCHMIEG, LLP By: Joseph P. Schalk, ESQUIRE Identification No. 91656 107 N. Front Street Suite 115 Harrisburg, PA 17101 Attorney for Plaintiff (215) 563-7000 First Horizon Home Loans, Court of Common Pleas A Divison of First Tennessee Bank National Association Civil Division 4000 Horizon Way Irving, TX 75063 Cumberland County Plaintiff VS. No.: 08-4574 Rose Smith 331 F Street Carlisle, PA 17013-1346 Defendant MOTION FOR SUMMARY JUDGMENT Plaintiff respectfully requests that the Court enter an Order granting summary judgment in its favor in the above-captioned matter and in support thereof avers as follows: 1. There are no material issues of fact in dispute. 2. Plaintiff is seeking only an in rem judgment in this mortgage foreclosure action. 3. Defendant, Rose Smith, has filed an Answer to the Complaint in which she has effectively admitted all of the allegations of the Complaint, as is further addressed in Plaintiffs attached Brief. i 4. In her Answer, Defendant generally denies paragraphs five (5) and six (6) of the Complaint, which aver the default and the amounts due on the Mortgage. True and correct copies of Plaintiffs Mortgage Foreclosure Complaint, Defendant's Answer and Counterclaim, and Plaintiff s Reply to Counterclaim are attached hereto, incorporated herein by reference, and marked as Exhibits C, D and E, respectively. Defendant admitted in paragraph three of her Answer that she executed the Mortgage and that the Mortgage•has been assigned to Plaintiff. True and correct copies of the Mortgage and Note are attached hereto, made part hereof, and marked Exhibits A and A1, respectively. 6. By Assignment of Mortgage recorded September 19, 2008, the Mortgage was assigned to Plaintiff, which Assignment is recorded in Assignment of Mortgage Instrument No. 200831919. A true and correct copy of the Assignment to Plaintiff is attached hereto, incorporated herein by reference, and marked as Exhibit A2. 7. The date that the Assignment of Mortgage was recorded has no bearing on this action. This is addressed further"in Plaintiff's attached Brief. 8. The Mortgage is due for the December 1, 2007 payment, a period in excess of eighteen (18) months. An Affidavit confirming the default and the amount of the debt is attached hereto, incorporated herein by reference, and marked as Exhibit B. 9 Defendant's default is also evidenced by Plaintiffs loan history, a true and correct copy of which is attached hereto, made part hereof, and marked Exhibit G. 10. The last payment applied to the Defendant's mortgage was on or around May 28, 2008. Plaintiff applied this payment to Defendant's account for the delinquent November 1, 2007 payment, as is evidenced by the attached loan history on Defendant's account (see Exhibit G). Defendant did not tender another payment and the account remains due and owing for the December 1, 2007 payment. Plaintiff has not received any payments after that date, Furthermore, Defendant has not provided proof of any payments she might have made. 11. Defendant has admitted that Plaintiff has complied with Act 6 of 1974 and Act 91 of 1983. 12. The notice provisions of Act 6 of 1974 do not apply to this action because the original Mortgage amount exceeds the dollar amount provided in the statute, as is further addressed in Plaintiffs attached Brief. Nevertheless, Plaintiff sent Defendant a letter notifying her of her default and of Plaintiff s intent to foreclose. A true and correct copy of the letter and proof of mailing is attached hereto, made part hereof, and marked as Exhibit F. 13. The Temporary Stay as provided by the Homeowner's Emergency Mortgage Assistance Program, Act 91 of 1983, has terminated because Defendant has failed to meet with an authorized credit-counseling agency in accordance with Plaintiffs written notice to Defendant. A true and correct copy of the Notice of Homeowner's Emergency Mortgage Assistance Program is attached hereto, made part hereof, and marked Exhibit F. 14. Defendant's Counterclaim is inappropriate and should be dismissed, as is addressed in Plaintiffs attached Brief. 15. Defendant has failed to sustain her burden of presenting facts, which contradict the averments of Plaintiffs Complaint 16. Plaintiff submits that its request for attorney's fees for preparing and prosecuting its foreclosure action, executing on its anticipated judgment, listing the property for sheriff s sale, and ensuring the conveyance of clear title is reasonable. Plaintiff will address this issue further in its attached Brief. 17. There has been no prior involvement in the instant matter by any judge of Cumberland County. 18. Defendant has the right to reinstate and/or payoff the loan up until one hour before a scheduled Sheriff s Sale. 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MMM 2momm a 00/100 Daft is {U.S. S " D' d4 `s'pins ioreart. ftwo tsr ho peaorised b ply din debt billet pbtiadie Pasmeafs sod m prgr die debt ie [hD ant leldr tiwo oasete 1. 2037 (F) "PNp W poem the ptoputy dot b deocrftd bstowr aswder doe b=ft "Ttmtw of Rou is the ft"CtY.- (M *Loa pt sasrws #0 debt atridsaced by the ltft phn *1,11 Me ae1 peopa)r" - and lass r s due order dw M014 tad at Jams doe tabor this aeeoft bsdonat. pbss 11 iltmca1 (W ">iif[s" no= #2 RWu% to fhb Sot: mW houmaeot &K ma* eat om& by Borooum. The doilow M ftkm are to be amod by Borrasoer (cbect boa m appro"J: MOW* RM Rift Comdamioitml Rider Q Seodsd mosttt: airier Hdlow Rider 347smd unit Dwsivpmeat Rider B1-4 Fwm$y Rider V,rt?, Rider Bhveel b Paymeer RkW am,150 [ ri 1 Neeo toaAp sai¦iiwraeiso rMrs t ft eflbct ? ? as +mG se smom. ag ? 1 . as (J}s; l tmm, ran, mss Amsmmrou" moos A does, lass, a mmoons sad OdW cbssscs dint we kopnsed an HncsvwK 4w ft ftopftV by a I, On >Mink -I assoclaaine. homecwoecI sosocisdait or sisribtr (M "Bieg*qoic fito?in? means npy &-fct of UL*. obey (ham a tctsactine crud by cbeclc, draft, or similar Jf W. to naomm widcb b h0wed droto = decowic ttrmiolL. - ',pbatoie iorntswtem compaorr, or on I tips so as so aft. kw w- or moorime a lipiooeiai iaeftel n no dtibit or cft ago ow aat. Stoat farm I - -1ss, be is avt Isiah to. point-of-We enos hro tweomnoe+d relief' mxlfte asrlptalioas. a ro4a itidsmd w ulepiiso?e, .riRe aamdms. and attsoiswrted ckrrbtpbotwe me i d , (Ia m 9s~ Users" mswta deed dams d us we (last ribs i b $st:" 3. (he "lrnudsmsas Pro m&* mum mw carr?ptdeeaeiab. s odommot, award of drm 1 . at proosads paid by arty ttdsd pow (other *a lomm t e preee.ds paid rider rite cws:aMas oat (Wad is soodw S) fbr: (ii dump a. ar amwuctm of. ate Pcopaeq . (ii) caadrotsetio. ar ahu t twtp of an or aw port of do Propecty; (OR 1lcoomm is "of wodtmnm*m: or OV) of, or onaf s sc_W, *v vdm and or IA821 (O) "al dmdle may""" meson ft reptti? sehmdoled smomomt dne for (1) ptmetpsd and iaeec+eat tinder the Mare. lw (fi) or amotsI! tmdcr Sts do 3 of this nodal lstenro MML P"020 t6 r rmMW IA" On- `993M 14--85 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC , PAGE, 14/27 M WA" malts do Roai Fuse SesTie PIP-MM' Act U2 U.S.C.$soft WW1 st aeq.) and w r X (21 C.F.R.lttet 320. as dmy mils to Mambd MR dow la tiros. ar itBioisti m W 1 00 few 20 agar edJW m W. AS wet is Ob isttasseat.?w' tics a adl sae rvrriadat: ise are k facet ID a LA-61Med ae0tt iaaa" / ttie Zr4aM dsm OOt >• a 'mil aniprpe iodic" (Q) 19ntmuser b b arnt sf ¦sRam•rac" m mw pow on bm ?abs tide b die Pi+sPe q wbMw or ant do pww bay mxmod 1lorrs mes dw#woes cedes do Noce m&ar do +swwk r ttet4mwL TRANSFER OF ROMM IN TM PROPFWff This seewity lmmvmmw "cum a t asftr. (37 60 repaftoeat of do LAWL dad as twa mats. CXM ioaa and modhiceoow of the Now, prod (1) dw per&ssas¦oe or goMm x•s eeMeataote and apcananIr- veft data 3acwky huavn+ o ad the Nacre. Fw this peep w. Bona m does hmby arar- p g paint and cmM to MIM (vAdy as aosAm far sunder acid Era Ws srr:Ceeeo 1 rood dregs) and so &e ==m m and =qm of MARS, an ftava ft da wthid pn0p M ioeeaed In me county rPAW Of ROB V"W 7 j All that tract or pwreal of ImA as shmm am: GcbmW61 a Oita attuabod 3e"" UMah " ?p mvwatea bawaia add =ad* a part howmr. tFID a!dd 9f wida cwmmy e11 11 r Address'): MMM4 "K$WMYhM* 1.7013 A- [Zia Cadet WITH ass the "crow or lnrasaeer emomd aet *a pt+4psat,?. and a9 easom om manow ad lltdsaa craw at atkr apW of dW psapae ry. AS ?fso?eete arrd adiidm obi da bs oomaad by dais er mitIottitomat. Ott d ft Ompha >e iihnet 14 k Ma "a9' Imtrosssst as die 'Ftaparty.' 9onvweafwids gad ?roe? m(jr I%d dik as 4?e aoh?tew fronted U! drt 8"9% er m ab Ssoatiq? ?setirwtlne. bttt. if smassey meow* with b l* or aetanm?. ms (ail a?ittee the IsnMir and Le¦eee's faeeasrors acre ¦stidmi bss rice tot in anoeaeiee to or ail of rider biitnaatt. ism. boa trot Vw6md l0. dte rat to ft 1, ee and oast " pmw . dada mire mq wdw taquieea of t ufm wth dies. bed 3w ladled q. and a eeeiiet" waft loettaioseoe. 4??' No ft" aw to ram no uor K11993rb 1486 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC , PAGE ,15/27 BORRC WM CAVENAM dot gain t it t**W noised of des gate beefy aoaeayed and hwd the tM aD Mltt WAp, pm and coomy dw ttopacipr and dW the -Pnpony is tad. eyooept liar tmcuaabrasoet of teCasd. Horroetas warRagls ate ws dstbo I pmnft Ire two 0 We Ptapwiy an ddm m d demands, MOM as stir a lambtmom of famord. IM MC[JRM Mt'RtTMPT o0a*bm taatibem core i 5tr adud tare ad lloo-tmd m cotoartw w16 Raw variMiosie y jraiadiA, m co¦stietrw a oailbost seeey bftmipeat ooteft anal F"wq- VNiilVMM Ct VM& MS. 8ossoeses and Loader roeearrt and apm m tblom: I. peroerieot of P14100104 GMw+eat. ZMerew !toms, 0 MejM- 1 Chogge, Md LrM ChWIes. Bonowser shalt pal? whm deo die priae4 af. sect bM mW as. A* delft a I'M 1 a 1 d by the Mars Ed nay ptepayme M edraeI sod bone cbmao doe oadw do Meas. Her ww a mW giro poi' ids 'liar Facts w looms ptaree m w Soc m 3. hwmaafs doe a mw *e Nola tad skis swum low aaeot " be midst in U. S. currisey. Howww, if zry dawk or adme itoretmset reeaiteed by E.?mdac us I , Meaunder *a New or dais Saashty loss moo is temaoaed do Deader oupdd. Loader nW fooo a ditto seer or ali mbaagueat g -g --, is doe modes the bole tad dioe Seem* httldlsdeat be mwb in oos or aloes of ft fa wigp fame, m selected by !nodes: (a) aailk; (b) emlX Dopier: (c) it sh" boot cMocL ¦arar s chmdt or caerisr's srecit. pstivided my sorb ehok is deaatat uppn w *e* %" whose deprrits = brruud by a fades! ademy, may, or suft; or (d) tic Funds ?taosder. Paymesr we deemed NoP INN by ladder whoa taaooiee 1 at elte kmmdm duiplsltd Id fl#D Mee or at umb adter !Drat!, as may be On pmttd by !.cede[ ire aDCardseox vAb the untie, pt+svisiotte in Seoetim 15. I ?eder Mary MIMM MW Payette[ ar pig" pryyra" If 14e p10 ar partid paymssse We WWSOM tp bria doe fats corRt No (.ceder away amp my psprre m our pen M pays m imuMtidm to brio! the Low amum wimoa waim of my ww" I - P I I or po*A oe. m if< t*R" FtM. , I MA prlrm w or pallid popmosaft ,wu the future[, to Leader is root obHgmd w sppiy retch paymsoes ac rile tist0 such P4111010 eta aoa 1 FIN I If 4WA Prltiodio is applied is of its titb*M doe dree. dm Lmik mod Mel pay ia- on uaWlkd fsmds. Loader may bold such mapplied finds wA Soreowwer mohn pyraseot to bdog tiro Loan [unmet. If 8ormm dome mt do m within a teosoesrb period of tom, Lem 44 eidw IpW soak !terse or raft, diem ID 8orro+rer. !loot awrod earlner.oxb :uodd wW be applied to do owassasditd priao !pal bdum under ties Move iaasdatdy poor t0 tiaao:loaet , - No aftit or claim skier Bla*ft* snort hale mw or in dte fuhma mp:st Leodw see0 rahm Horamm fto mtkidd pgmmcm due under dit Nee and an Seoway tort mm m ar paoftum, dsa oaneret m mo d i/ewmssisesaossti y rki seeaeislr 1Mesrrmtaat. 2. Apm5"m of 1P I - to w ftmeods. Facapt m odtetwiw daKCt'bod is tins Swim Z, an poymem mm tpd 06 00006 by !actin no0 be VOW ka 160 k", in order of pe**., (o) itslee 1 1 dos racier dt rim; (0) ptmW due vier the !Yore; (c) altoma due uodcr SeWm 3. Swb pay waft AM be applied to emcb paF*m w is eke akMW lei WM it b soame dire. Any tmeaisieip ssiasrr ma dmX be appftd titer w lme dwrim. eeoood to my outer amermts due under dw $semfky fnsuvmswt abd dam to redone the poi wVW b dum of the Note. If Lmier receives a payment from Barr mw for a debsgwa[ Periodic Pqm m wtwA ock4es a SdOdW 4111111011110 PW MW stet td MV 6006 tit I a?maot MW be apppad 0 *0 ddl!14 I Mt psryatset and OW lace ch rda. if own dm one Pe kmk Payrtreret io "Mommiistp. Leader airy appilr ow p?ryeteae line! 0ad from lioamw?er in the rgw#x Oat of ow ra AM u Paynsepee if. ad 0 to extent ft L each prom can be paid in . ?? Q 1'1reC i roroq ?a«+s (11 ? i?rw?107a tAn K'##393FS 14.87 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC . PAGE .16/27 fall. To go Goes do aay Men exbo d w the ; AQ ow t is sppt4ed to the hil pyrt- I - of one at Mote Pry ftr=l f•. aoch ==a may be apptia+l aD aW hm cbwW date. Vokolgry papWm mm dog be applied timm agr and dum ra 41 ' gl ed b the Nate. At ff 4MUCelfo m of p,yegttMa. iotl eaooe ptaeoada, or htitodh m ooa A+oowia aD pFill oipel dne ondps the KM ekes tart aXMN or p mwm do den do. or chow der moauat, of J* lbtladie ParmteMs. 3. ftWb tk ftW 8tr NSMU Batrawer dwM PW to Lager m AN MY PM10 a hpwttas eta doe utakr the Now, uW the Nato is paid is lint, x wm (dm 'Pdmb*) io pev.ide for PMF a of Me duo OK'(s) Mm and aaaeaaaw srid adoor boo w AM Mrs smut ptie ft aw mis st o 1 j j [y ]wt?eot a a sm or ?ceotbtae?oe ao the Pmmly (b) t udwid, Pa7?otmm or poatmd tx+w an am Ampody. ffaw. (c) premieass for wW yd alt isaoooe taprieod b)r Leaierc sder Seetioa s; sed (? LNotgtMe Fawraooe paemi¦aa, if my. or any sues pa by Borrower to ireoder im lieu of ue purn ut of IMoegftL, Imoraoce pm oba m in axoedaaoo wkb dte poo?isiaos of Scctioa t0_ I tt:a haort am cdted "Bao m Hew.' At ar111 1 at m a oy time &n* die temt of the LAOL leader magi ft"m that Gomm k Aaa4eittiam Does, Fee, ear! Ammumtets, if nw. be eeoea Led by Rota mm not w h dws. Meer ad motes d ma be as Swam hpm Ebtraw t *0 ptaadpay foram to LtoQes ail DOWN of amoanet is be paid u dw this Soc*m.. smi awwer shall pay Leader tea Fords fw 8acmw Lass usiasa Eettdat waives lton+a+Nt s abiip d m b pay w Fm,ds for say oc an 6mmm Imma. Laadar my w?ak Bwio ar 2 evismim to pay a Lwdsc raods for UW or to Fscmw In= at rmgr time. AW aft waiver mq o* be is b the cam of ma swim- Bm=wer shad psf diwity. when and where payable, the swum daa far mW Mcmw MW for vrt" py 1 of Fords hm hest waived by L m dw nod, if LANAft mq*. aLlt liauialt m L a dw meipm aridargkg Swb pa's w Mft mh dim period as Lm dw may liecaamis abiip tiro le Weds atop ptajrerrus and to > dwM for ati putpasts be dmmod sa be a aorsmt and spmamwa aowW atd in tiffs Swvt* tnsmnow, as Me phrase 'caverrat and $$MO t" is used is Samiote 9. ff Borsmw is cNamod o My Cvam Lams dilar *. pama a a waiver. no Hattovrw facie to per the mlKm dw for ao aaorm lam I ceder ns}y ensrcJee its tits uadec Srctiea 9 Mad pay such agtAyrrt sod Bortofear d" deem be sbrgMd aaede!r Swdit 9 io rqm Ma Leader mW aeeh aafoeat. Lm dsc nay -a elm As tmkm a w any br va 6usowr at my lima by a *mdo swm la sooadmoe vft saw" is Mad, apmn amok ee ocatioat, soffawm W* ihait my to Leader ati Ee+tads. and im saeh aooaom. Mrs are Ow x4mieed umW Uric Seotiaa 3. vow. at aowy dmc, 001110 ad hold Fads is as =wm fa) oftion to puit Lugar o W* the Fads At ties rive apvdlivd umfer It WA. mad (b) amt b emend on mm im m mum a tsrehw an undw XWA. Laodw shall asdmam dae ama.a of F+yada due as to bum at cYn+aat dam and reasaesble ertydttoo o[ of tlraee?a l3sotaw Lams at sdrer+.in i4 at+ootdtm wridt Affik*fe Lave. The PAmb dog be paid is as Loedtodw TAM dt salts we koured by a hdeawlae wy. bommmolYy. or cgd9 (iOelodiep Lsodar. if Lacier 4 No hIMM M whore dtyotim ate W iwe4 ar in MW BadsasI Hogue ;.ca Bast. Laldet' Wait apply We Mob to pW the 1?actm Ltsaaa no LNar dm the tioa a wAod order RMA. LEades shdi eat ehlmp ft new for bsid g ad mppiyiop the pmb. anal jib saidys- 0 the sscrow acovort. or vt*ft ,ha H40WIF teems, VdW Leader POP SKMW r ieossnt am to Feeds acid Alyptieablo Law pomim Lander iv mods Verb s dMV. UWM ao aI I I is made is nstliap or Appliesbie Law k= M m ba paid oa see Pan&. Leader ftU =I be no&d ,n py 8om90nr my ietawt or eacnie?p oa the Fords. Bartavrer sod Loader cm op m im wrwAV. harrever. drat omraat abW be paid as shoe M? ? I I?/?4T1 Aj 00% +ft.a.r fa Amam ieaa 1101 IM993PG 1488 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC ,PAGE 17/27 Poodt. Lemdtr dpM pive to 8o[notm. wettest chwpe, an tatasval aocaneaftat of On Foatdt at reaiairead by 1111 A. If em h a sarplm of FUM bard is A no ', aka{ ddb" =ft 1tMA. leader ad acoamt to eortaawar !bc me eoeoares yhtodt ? accoedaeee Wirt 1l8gPA. if theta ha s ahovtep of 1Pltadt hand is aaet+vw. as deftW Mader IMA, Lauder dots *a* Donw ar a tggaaited by 1<BM. alt rl tmw ShMI sm b Lmmaler tts mm a neoett in to mdoe up ibt atiwttyo in aaaatadaeao 1 wit XWA. bt in m sots d` 12 oameW * p 11 m - if theme k a ddbimq of Inver Mold in &mow n dW ML m dtr KWA, L= hr shall raft Bonwm at ompiead by YAWA. cad iitaamwo atoll pall a Lander tr vmm meanwty b umbe up the Am lcitsay is aooovWsot with EWA, but im w tl L p - p dw 12 f 1 !M/mwm. U p m l io ie f W sf ar w mcwW b y dtie S icufin 1m hr dad PON** ttatisa 1 tb Amt ower coy FmdR bM by Lem lor. d. Chm jW I.hes. bo a0m shall pay A nos. oow* mf.im. t iatjst. rimes. std kwookiamt sommom to the Pwp m whil* em ale.ia Floray aver this Seoaa* lsaoetnto kowbo plum=" of IN I Iaesat stt the Pmpaq, NOW. toad Caaasu t Au ietiM Dus, put. std Araweeeate. if may. To tun exmmt that thou imam are Bean itraoa. BmTosla MR pW dram is do teaser ptta+rided in sew m 3. Hers co atoll pcmWdy a nay Basal whidt hes pinky acct tftit SuMby SMtammml: uokea Boratoon (a} opera im *rift to the paisseat of rte eb%W m sword by ft liar k a mmw acspu4fs w La der, b* cry so keep n Bo vower is petafoa!aiap seek immooft; (b) mm m ft lice i0 pod fait by, Gt defeaat agobot amibceameac ed the 11em ia. fepml peooeeitp ublolt is Laarex's aowfm of I I o pimmomt the atfaamaat of tkts lion ,rbilt dmw pvoosediap ores }mrai. bat o* Loath t»cbprsnediep mm cooelade 1; or (c) saOMt+es tEatat dta ieids+r of tie iia air aseeemeat tadaaitala[y io Lo dw stiadialtie* tbt lino ov Leis Saxw* homm m if L+eodtx desun wn Wet mw }tat of tr Plapaety is aaltjt Las alias wb1c cam art ft Pdotitr acct ft Saari?y IEtlxwo mL l.a+aWr aml? pike Bottom t mdm idaaaatOW rte lies. VA*k 10 dqs of the data an wldea ow m me is voce. bmsom AM a ds& ft dme or taha one or move of the acd mt to f" abate in tit Sectim 4. Letdar mtyr ngtam Boe oom to pq a aae-t m chug tar a red o mw aa% MtRi?oaliat aatdlvr Aepgtaas service o"by Lender in - 111 WO ttis Loco. 5.1Paapeety famm mw& DwmuSr aahas heap ft iaeprava im ow mw o&ft or' e ift aaaaart as rte Pkttp m bon" amber Mw by Iles. I - - vi It k ch dsd within ate mm 'aaAeoded evyww." at cad other haw& ladw&g. boat at limWd w. mtbdaaslaes =d cloche;, floc stick Looft ttgde 1 iasara 1 - 1 - Than iaturamoa dm be mobb W In tta tammatat (iacbadiup 0,1- I tw*) and for Ate paa3oale tilt Leda ngoim. VAm Leader nqukn pacwm to the pr+oedbp a mume cam riaera daft the mm of the Loan. no iamaeee carder [Nov ldaas ttt imuraaae abatlf be ck mm by Rlotrom mijaet b tmm&es ** to diLWove Boao*w*a choice. vfilch aai * sbtil so be exorciead wwomoapiatl?. Law m my tome Bortowm a pay, im vvanecoger witia this Lana. Awl I s (a) a Oath Chaspe fat lboai zw tel. certific.ton.cad amrcirlM nevicm or (b) a one-dm cbwpe *w flood rose detaa1 imdoo cad cons radon setrieaa mead aa>retapoat cbetBes mob am teomppwp or sa uibw cb "m onear Maich ttsaeeuft aim affect swath 6bomiua m it omdiaaeioc ftmoMr " Aim be nmptta>m l foe etas pays of =.r hats by the Radestt Enm pttnt? Mmaa pmot Agony in 40AmoOOn wm the xvview of any flood soot Pop, vi do r .ftam anahjecdonby 8orromr. 4WA4AO y tamp no Gol to rim aces IA" It°4-9193PG 1489 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC , PAGE .18/27 U Hortown fAs w maWWu mW of ft c&vorq vs destastbe 4 above, Larder say OVA ittesat+ covampe. at L cokes apdm od Bmet"osaer's espsass. LaWk is stet so eliiptim m pstcbm aw pasOWN eppe or tiatotmt at eoaseape. 'Lbealism, situ coverage dmR cow LsWw. but milt at aitt& us p pow Miu mt. Sotwmes sq*y bt fife Pt puV, or *A somtsta of is tsropergr, tsjpaitet aay risk, Itaaaab of NOW and =W pMide VWM or bMW ctrseerap lMis W prsriandtr is ORML DO""" askepstl % On ft cost of dw iowtaooa =map so obtdsd 94% %W1, 11 63 ' Gl"a"d Ms oust of istspttiroe that ftmom aadd bm &Ube& Ater ? didtsessd by L.10rr soft ft Redo" s ft l becn adMo¦d Ott of Boawm swarod by di Slsegt'lly Lstehttmetst. Two sswma *a Lset boom At tits Mate rant fltosst dts free at 8sbarsrt¦sac aesd *0 bt PM EDAM, w ft attb WMA. apse aetioe float header to t#oteso sbr 1 s4t m1w, p4meaf: AR kwxmoe polWw ampked by lgx*r mod esoswd! of lock paiida dmM be odour to La does r*a to 6*0 m - awh I lfides. dot h ebb a s mdtsd gneyaop dme. at dol aea¦e ImAw in motlesrse a0i/at a ate addiimA Im pop, - Lemur "bail hm dte tight is bold qrt pliesies aed sseewai oetd&mm. if Lander esit' - Aotmo *A psestptt give to Laohw sit saceips of pdd premismt Bald rtoeWd notices. a 8ottosteir obssiss MW foam of imun ow srv"not, UK ado0bG tsge, I by Lresdar, for dmmp ta. or G mrec" of, sits Ptapwq oftk poL7 ds0 bet* a steadeod 1tpee de mod dmU 0=9 LM der as MMMPpee andlar ae W ail d=d last payat:. in dw ovsee of km Llom Kt dma rte pmmp smim sa to b mmce carrieR said L oWw. Lesdtc may mars proof of I= if not nteds w a pdy by Dam=. Uni m Lmsffi sod Govo of ofwtat: aprx be wiidog. OW in or peocem*. arba6m or amt dm osdartyirs issmI woe ntgo1 1 by LAW=. I" be app&A ro ret1' 1 11 oo ar tepsir at dot i'tttpeeey. if drt osetaneloa at MP* h IN 0191lb folol a and L= dre's as mdq b net kneesi. Daft arch tepeir wd arsttsradbss pwiK tmAw stied bars do debt se bold each hiwstamm passeee 1 aW Ladw bps bird as Oppe?eMri? ae hopat mmb Prope ft to emm+e the wmt beet b m Comtpleted w Lsm*ea saddhtsdw poaiiad diet aaob ierpeedost d Ml he seieatadea psaapt(Y• L= des nary AdWmW pssoeads Gar Me at1 1 ad tsasoraelttes ht a sb b psraoert I or 'as a series of ptrMtess paymoms as the w+edc is eomovWd. lisle" so low== is am b In w4ft at Appiiaehts Lmw segsiwlra igtee?set t o be paid on V X k iatirar a p r o c 1 t d s . I s o m e r WW mot be ts4eieod 0 p r e y ftm wr' aw iMurstr or eatai? g as wets pwtessda. Fin fsr pbiit: arjjwmwv, ar ~ ddted pstdmit rstdosd by froevqpwm 00 wt bt: PM sue of its iwaanoa peoc I - I amd Am to the sate dimBAea of ft- - go. Lf do maorstioe or =pair is trot eoamimiowib? fsssiisb ar Lasedsa'a am * *&M be kasmsd, the ite¦r me 1, m, 1 00 be appiis"d to the awo =Nod by this Soon* LtaitasMead. abe" oar Amt a= titre. wilt ft rim"s", if say. pid to Sorrowst. 9rcb kwomme ptmrss/s 00 be applied io'dw order ptaaiisd for is ;l Won 2. if Has0swm *N ow We ftsr". Leedser *W flit, meaidw tad same moy -1 -12tbk bswieamx dika Md WAMd MM trrs. lftW Wv= does sot teetpend ?allltie 34 dos b a aatl0e fYbue L?a¦da! that the ierrt>mte CwfkT be a hi 4 to no* a Guist. tits L,eeder Guy Aq{erirrs sad sub the cb m. Mw 3tl-ede,}? period wM be& wires the aotbe is Skvm In sills: rocs. ar if Lmftr aogi*Ms Mrs llosP" said:: 9ectbs 22 cr olb"Jw sam"m hum" sales to Lm der (a) Horrs+rwt s TWO b aq iswtetre" No-, a I la aes asoemt mt m:"seed dta am= % aspsid nears die Nuts or ihs 9etm * tptssosmsR a" (b) ow dfiw of boamw's rwo ("disc lea the deist to say nftd bf w•ssraad Piedras pid by mbcp est) sedet no hswtmoe policies covssdss dte Paperp, issodrr to a& do" we appiod b oa the eoeasape at the ft"aryi. Leader am IM ac bmmmoe paessestis sift: m rsparit m esstoee the PtasFM or to pry atteomss squid wtdot tbt: Now or Ittis Setastit7+ ladmaleet. *bsther or awe dim Aw. whrr: 4W"" lam min:! 7 9 3 PG 14 l= 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC . PAGEk 19/27 f-(aocoPaty. BMTOW *AM aaxwpy. enarbft rod We the Props* a MorMe[•a pc' 4 - raidmx rayhta dD der idler dw camudsn of dds Taanmahet aid don cadao b aomaapy lk Ptapa tp is 1 m=wja's I ' FS " mmidea O *Jr at imu mt Yaw slier dam dale of +y, a dw Le *w a n*e ata+eea in wddW %N* camont 4MK nit be uwmvom tS? wId ileld. or u dm eammeft does exist w" are baryaMrd swrom+er's caattot. ?. pkeaarvnllaey Mb's a sad lrsoaefloe Of alts M1012 1009 dWS. SereowNar abaft wt dMaj. dmwv or bw* dale Prop". Wbw do l mp" lv 3 1, 1 - or Daemon wow m die prapa: ty. Whsdwr or srttt saetosrrr is amift is des psoprijr, Boer don maieitNi dee hNpwyy is omndmx m pmmvM me PMPRM ftm ac In WAND dam to its cosdidw Was it b dopumd w/ pwptaet m Socdm 5 drat npk dr seawtatioa b not eoonmab* I I'm. 8brior m Ad 1 0 El ft oq* *a t'l+Opony if dammpd to avoid order aebrioratba at dmmgw If issNSF 1, or enodumWim poeseft ace paid W coumcdom wilts dmw as, at Lie ached of, tie Atopetty. Hymn -my Dies be lempummM ilor eopaiados or cuaweiap the f + t o p a g y a a s b ? i f ta¦der iaa iaissDd proceeds f o r ad Lrarpam .14i der tsar dilbsets m i x i ids ft ft tepalim add wsioa?itiod io a sim* ptyrmarst or is a Danes of prafas papmama s dim wNrt? is aomviawd. If to w a mme or camim mtian rem* ¦re eat welsiatt b eop* ar womv o dw Amp m. Borrower b Dot wtbvud of soe~s s ova for M oas MOMM of n* "pair of sssaarsd om eeaacsafrie mina. Leader nM b s p x t d t e I lletfor? 1too 11100 ? a1 i ft fropeagt. slat gne soal"m sodoe at ** ripe of a polar a suds sa ieaerimr iaqaa * a spacilyiwsmb Rwsonldde caaat. L Bar: mw*s beam ApuftsdaL Aiaa[LMM Dias bD in deddt K *Aft ft Lass appfizadon pr=VW B ar"= or Dar puma aa at emon aft mat do diesa:tiaoet of wooaor or w* &a om a Ieaowmfmdta or 1--d fry armK Wp llsbe, wbiem&& or isaooma a iolhcmatimn at x wnraaw a Leader (or f dbd to pt*vW Lmsdw wft aeNeorxiaai ia0mma iW ip ooetNnetioa ift 4t Lone. i?imlwW ? b dots. bat ere mt Voked is, rapaNSeataelem eoamenit iTSteewWa aealAFsocy Of tit Prapeeq m bOrn ser"s prie*d rpm PorP. V. PkvAastlsa at Imes lalerW in a* !l"w" sod lipids U"w ab sm mmy Imbumm nL if (a) Bosom a& to pandas dam ooweeant: ass spesemulm oaanalh and iN tilde 3 -11,?1- -maNttmtmt, (b) don is a lap! pcaoasies dwt ssfks ayr6oasey aft o lme¦dsr s inmost i dra; Paapniy sad/or rwat Nader dds SeO+riq' tiaaarameet (aw k as a powcamdiat in bM mim, Preloa, for eomomaMmpiemt of ibrMisrte. foal esd?asseeaat Of a am *" may aramis prior* amr *b 8aos1% ? jwm=m Nt at to aaf<ocoe dews or rep * daoa). or (c) lseearerer bas ainadssad tie psa/M. tier Evader mg do ad pW he whmver is reaDM-110 4w a NproNw m pamert lmok a's fool m in dw Peapssgr Dad ajou muter da 9acu * bw=m t, iNdoft paowotnep mdter memos tit raise of tie I? I. 11, set seeNriq? all" ,t fi 'ot dtt esap". lm dNr s mdomm Nam iN *mb. W Nee M Wftd to: (aa) pep+idlt sW sairm sand by s sea wbich hM padaeis anmer tide Sausi4 maamanW (b) appal, he 00" aid (a) pryfat wawaeiie maaSaw face so ptolaaee its bum is"Peoputr moor don udder ft 3sm:asiw,r Isaltums. bdioft its seetaad poNwon is s bamnaplcy posasdiat. Secu ft mt Phgxw i? iadudw bit is mat limiW ear, edwrtap the hap" to mans rapsim. dome imdn. zspiaaae ar boleti ap daces ad ' kftno. drsia .near Finn pipes, doeimme bandies or adtar code vi "mss or dmagwam ooo&Maa, mod bare uWAks =ad oms or off AM=& Deader matt' Woe mecbme -a&- dais Sac" 9. Loft dams sac barw sD der so aad b am mft mot' fty ec abl*dm in de so. It b mp d Am t exadrar ba m so lisbifiq? for no raft a w or an apices aaalborism?d tvwa dh Sacdm 9. MAL Aow rw e v n Deere" S M IlAn WMK{491 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC • PAGE, 20/27 Asir atociu e NO bstsed by Lraodesr coder du Scab= 9 staff beosme add omd debt of Nwroww so=wd by Us Se ky 1a numom Tbse aeaomrs shall best iwwm a tie M ft rise bm de date of dfe6tasemmt asd tdt? be ps+ysble, wib sptC?t ioteneet, vpoa aotica from [+soder a HarYawwr MI dt g d a Secw* ha now is an a leasabow flaet+ower me "CrA *16 aft ft potlLiros of the lease. If Oaten an atqk*w the dit w Ire Ftapwfy, tb tea doM and tie the title doK mt m p enless Lander 15. l e . If Loader ia--. I I ipeps baaaaan sts a Gooddaa of m ift the tom. DRUM ter sisal 1? the pratle~sos tegsite4 N atsiolsfb to bgmwp bmw oe is cowl. U. fat wpr a.- .16 dre lrlsrtprpe blMraft vor+erlpe aepbed by Leader costa a be NvWkb a bm the mestpspo iasawt ass p mvim* pee*i6d web i? and 8rrroaar wss 3ted to wttiw aepotaebr dea?aetsd ps;?taetnt tovsettt the peels for Itiw'@ @a U wumw, boetowae dA p w ft prmisws m lskw b abob eovswpe 113 agierl 1 to the ll[att fspe [t•oeasoo psoeinwlf is Gffmd. rs a oast arleaa -4 agaiValeat a tie oat to iltses I of tits Itlorgeps iitetteeooa ptmviottel)r iR eack Brea = * am oats so wbMed by Linder. B wI I Nj opbml m va W bssesatte a mmV is on araieMte„ D, , aiwe ftK Coatfaee b IV a LANK ft MWMtt of the sepa[aleip sls -%Mbd pai?mrwl140 want OW whtr ft fmttatce ao nW awned a be 4 affm Lmdw wN img& teen and wain Rats pgwoat n a amweamddit loss mosfra In In of 31 i % tp 1 bustmoe. So& bra mom dM I* am eel od lie, , i - - -1 triilp do that t m den Gso is tiimnttb pY h &L sod tender dW not be nmq"d b p W swroaer any incase or aeaigpe ft w* No rMkVM Leaden ra we looW MW W b nomme "in m tf I If I-a -o on 1-- M, ao.ee:p Can do =s at hr ft period clef Loader eagsiras) ptoafded by sat isnwer sWmd by tmft so* bwoatlss "Wide, is arrdowL and Laadre resptiwe aspsssrety drsipaared beood the pt nmm br l/ l p is my AMMSOS. If 1AeMnr wrpdssd 361111@41 WatMt N a init w fee I mm MA llotaow A was tagakad O atsfbs ae[tsrsttt?? deei?wwd pgmeeDe toaaed fm Fowm IN if ww bmwo e, tfuaaasr sl?lt ptf a praeeiwtts eaq¦Ltedb teriettria IMeetpf?r 1¦tmawe iaelfse w o M[?ririie aroee?wiissd- Ions t+ssetae, on* LtttttWa negsioe¦tea fm fdee*/e LwaMae am in staeosdsaoa trig stti! wtilto $80001* 6dwsea Bell ar and Leader pwrridsb ibrr wear fomi¦ fm at Una tesmiaeeiea is ergsfrad by Appbalde Law. J l m lffg b ds &%dm 10 afl m ffarw e& abtyelim a pry i arm at the :acs pwtdid fa rie lMaoe. I I m too, bwA*mm tdmI L4odw (or any sotfgr ftt iabow do Mort' fer aware bum it mW ioa:ar if! eseeower ?aae ant w!t!' IIMS Lase sts appesd Beesear i* aft a"to for lfiMtptbr bitaooa. >rioe r bWMM eghme **WW ajt as ail =A imwzwos fa tense boa fate a tines, and MW Dow area, apssmeao alit oiw patties soshm ac waft dreie 6*. w M &M ift w.'[b apsemma am oa tsfats sad cawMiota, dtat sAe ? b fir arrefprpe irreder atd tre odor pwaa tae psttties? b ftere abtam mm now aptssmem mw segsiw be mmgys t. awn pepa?wrt aft air low= of nub &* On % m bow a w boa OW* (wkidt rosy bode; flwds abobW fi m irissgape fnstwmme As a earn of ftsw epeameots, tinder. aepr ptmciaew; of the Nate. ssio0tesr kaatet. ssgy tt:iowrar. aoy afttsr MI*, w aW aflfWes o[ atw of ft 14 rg I 'm& m4? stsxhe (dkeek ar iwtawlr) amamts trst dciMt h m (arm a b tbaeaofedoesd ag)a portion of boemwer s i armea1 ftrijowgq fie. in ettcbmbe fbr dMdttp ar ¦e -FilsR fife mot%W isalaer's rink. er t11 oe1 loee¦s. if m* stptwrrtat ptu-, bst as affiliate of Lander fsiss a abgre of dk ioeeter's rich for ashop for a dwe of tie preotttsss paid b tie iaat w. do w# p mu b obn mmud ,rte wirwwooo. • Four: W Amy wseb abaamswts aft oat afbtd fit: aaumb dkd J wmwv es• ke mgmed to P4 hr h6wirr ioewalM w amW efiee cancan of firs [Am Bob a«trermwds wit me same fie am=* tasf?awet• wM ewe hr lisetfepe i¦rs¦,mr a, awsl ffatq wi oat eatile Merom • aq ieltisrtl. lAmM he?.r? a Mean stow 11e? 9-93 Fe 149 2 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC • PAGE- 21/27 (b) Aer wide apltaana¦at WN not aster are 0006 sul" t Mat - raw - go comw to the iaarret ;Mw tltt 9soaeot o- frt?olmdo ,A* at M sr a w air bow. done? coq tip t r tsdrw aeloia itasleatttoa. M t?ttpoat sari d i oso dkdm of Ste M iaaarn¦ay r e 6¦?saas IaeniatYi ?detrZwesiUr? at?ihor w raabe a t+iai aw bfat?tia tws¦oie paonirsa d as w onswood of Me ttr of salt attMlssllisre or ftMaud@& IL of Mooiosas Ptoaai= mow. All b6i os0anats Aooeadt ate buoy nsimted b obi be pdd to La mbr. tf to thopattpr it dwoied. aosb Mood onow Ptoostdt JbMI be apples a ftonwho or repair of die Psepacty. if die raaetaeiea or up & it owaa*ARy Apia hod tsaietr's Mwa ft ie srot Yooostts,?te?a? saeb madt sold tiawoetttiott ptx'iad, KADW stoop hurt do tit to bald riot lwiaeiaaaatot ltaeeai d [sMtee t WA au appoeanriijr ttr iotp? wo "opav w ON" ft %Wk Mt bw oa?I I n LOWS s+Mlestede4 peed drt a" ias?paedee its be lobettba p oMM. Lsobt mfr pW far *v wpoits ad Yselosetiett is a siyte ?tlooa ww t w in a older of ?opstasat os do M*& i* aawpMwd vdars a >d[arart i• tt>ide i. wdft at AIN@ubb Low ew i iiweeet oo bit pid a o 1410142 at Paooeal t.Maaror doB sot be rtsaited a pay aviswMar art sedt fNitoerear,nt i tweast. N elrc rweotsffoa at np * it so[ eoaoomirat book or 1A10" Mo r wow to loosook the ldited,tteooo P:oooada otaiR bs alppded to the wmt saasead by die beenoaoae, whooor or an rhea `to, wbb doe if My, paid b Nett WM Sreh Nitt:ara¦eoot h+aassdt dM be apptfed in ft adw p widad i is Is to arm of a tonal dope, Aeatttostios, a loss is wire d i l:opsq. dr i?iiteeiaaeea. Ptooeeds alias Iw spplitd o do s®t nowtod by d ft Somiq Iatlrttttast. wlaaft of riot dw doe, *ft b bosses. K arr. lid b . In i ,Ileac of a padded . istne eioa, or leas is vatie d to pla"q is much dte Lit nark vdoa of to Pbspaq W0. y hefts ft ogit IAM& downdoe. at bet is vdn b o"d b a wow #am do souses of 60 aeon man d by olio so-% iaewmaanot beta aw pedal utltr. at lea Is wire, "M fttawar at [Aft oi.ia a" iR ie wet sews wl by obit &= W 4arwoot suit to todosxd by Ste swarm at Me bNoollsoaots iwiaaado adtMiaa by the "Waft batafor (?/ b toad aaeaaa of Ste st?o seemed iatw,dMatI bails the lw'r tatttj. aeeaereaioa, or doss la voloo dbisld by (b) i b& MOM wades of Sot !to'" ioae dM* bWbee to paniaf wAbg. ft s, c-ied, Or bat fet vdst. Aw baMtttoe sW fro paid w Dnttvtta. iA Ire opw of a placid aotig. dwltsadoat. or tot is VAM of to Ftivpnlp is TAM the bk awdwt raMte at i !lspwq inoetiatafy bdbee tto pwpat duamliaa, or lap is vale is Mot Wlrtt me slow of to sods aaostad iatseiwe- ------ Stem deettaoalnt. a Nat in vi, Will Ho wnu and taidw ortetwI e WwiK w,flild. #W llstasdt theft be oppisd to Sts woo socan d by die fieaathp meottiaet wbnter or lot Me now sow tlrp 4bL If ft irtiepetq is Owdosod by 1k ro!, n or if. after aodoe by Monier to 8tnowat do do appoeitq Patty (ae AMIM I& Ste an asafto R) adder a sols a srtoted ft serge a deian far Melogo, ifoctowr fait to M*u d to taphr wd k 30 dAars spot' Ste dew de nodoe ie piv?e % taeft it M?A?OI?td b aeNaat sad app fir do Iio sh? ltaoeade ear b tstloesdan at nq* d i Fnp=W or b ft sits morod by Ob Sototiq? io wunaa. wrtiar w Mot dtea Asa. ' taeeas ate *M pwty ON away burawa Mitoeitsoooe Flat to is or dro pony *SW= wrest= be a d& of aft In vomrtd w b6ow0 oaaaa "A 'sods. macaw staff be is dt1% 11 if a w Kdaa or p moults. whom drii at atioaiod. it baps; ant. in YmW jw*ated. cold nom is 111,isie of Sn Ptapetbr at odor taoear" i-afetaeot of tamer's irMoaa 1 ho aaese is eae taisttwtat. l>oteowa as craw wait a 4Stslt aai. if matt pka?ris 11 In Saralee 19. by eooaft trt: ,offs or 111, 1 g b be dasind %+idt a nft deaf, is Lorded', k dawaot. pwdiadts ibis of doe Ptepatty at other ?ta- I - impai most of ~M saes ti,.,or,. r+omaam IAM 1 9•3P14 9 3 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC • PAGE' 22/27 Laadmr's itt 1 ,, is the Ptapeny or doff uWw tbit Sonority ImMo m The peaoaf?le of agar awed or elate for doeettw that an A to dte of I~s iiofoemnt in dte pkopatq in bnft wa*wd and sidl be rW b Loader- AR Adow9amoo Pnooaeda dw m gm o@piied in eesweaeion or tqt& of da Propany AM be appWtd is the arttot pig far bt 3oceia?o 2- M laerwaar Not Memo* ltofrarleanee By Laodw Nil a 1h1w. Exafti n ad do !moos for paydeMar ar sad iemdan of sonlaadw d the awoo oaowwd by lbis Seem* laMewoat potwd by Lmader fo Barroawr os wD? 9teooasaor jo Laoaaot of Battowar rrari ant spade b euleafe fbe ? oil eoRrowee' or ov 9umamnmrs b bMmaat of lrtnawar. Lawler dma sot be nobW b oaroaoe proobeMai sgdmw say 9aoooooar is bslwat of Barrowwr or to n I b aafnod doe for plV, - or &w mks mthly arrorch i ? of tba stns oeaooe I y Atie Soap ky hanc m by moos of sW dwoM mob by dw ?Wlaal Boeea m or ow Swcoom in Iwloaty , of Bonawar. Amy Eeobowaeoa by Lawlor is aaeeio tep or d&V or romp 9y moidio i. wlboat liooiA *c6 is Wes awapwoae of pgaob bmm Bird posaoas. dodder or Swoum w loom m of lmo - a g of in anmtww teas Iwo do mama dmo dom, doR mot be a vdvw of or pmcbWe the asdt+eite of ael? riMa ar mod!'. I& Me ford ft"" Wdit, Cadpwe; Soomwom Mil AMOS NWoWL Hanower comatwoes sad apeamo dtof Bwwww's ditW 0a sfdd filtlft *0 be joia std setetil. Hormmdm. mW Ummrer olw w4W= tdo fbr , -0 blomeeat bta does mt mem ie Nora (a 'co dpwl): (4 is co4b¦iop d* f=* bottom ealy a soylpm. FM ad on" ft eo-tip wx ioteot in ft p" FM waft ie !etas at V* Sacwky laaReewsoet; (b) is tax pemom* OWN w pdi}r ft sou aematad by the 9aetaeir/ loonowenc sad (c) o/teoe am Ladw ad am oftc 9wo0mmer pin ttpmae to wonA =oft. limits-! or tuft a" aCrpmaeodedaos w A& taped b ft 1 1, of We $sow ty lootimlmret or tilt Male wbiart tee W-sipws coooaat. Jd*= to ft pta1leioat of sapiaa ML ow 900edor in btfeiest of Mivm wbo• awataos Bmower's abiipotiooo aodw ttis Seoeot% IF - - rml1 1 is - Aft. ad is appiwmed by Laodme. oral eb mb ill of f town s d$ft and boo ft order Ob fiat:+l* Awkwta m Barlamr doll as be iA- I hoo BorRewdt s obpar ad lift ,odor *b SaCwle Goatllam odd taWw apes b sorb isles-, is wrier. I% oatto- - nod spsemeaw of ft lie"MN3Laanttaaot dbaH bind {steoapt oe pewdded is l w*w aD) aetd basodt f mw o= seed saetw of lAwW. 14 Loon C'iwow Leakf ow dwaps Sommer flea far in-im pl-Finno i bL coeoeedon vA* Barmwar's dlforlt. Sot fhe: pwpm ot paeoeiop teeder's lowm in tie ftgwiy we dit mow No 8ec¦ ky Iaertlneet. Io bdi m be oat Os td lie4 aomton 1=,. pmtpmrgr bopfaion fad ++s - olm leas. In spend b ae4 carer ftisa. tee abaaooe of ? utdos?jr iQ >wis 9aamatM,Y looonteaot b dtot?a a ? b Bmmrowa dM scot bo c ooortwd as a l A llieim m tie ohwBieB d ewoi fbe. Lceader many amtdame/, loea *awe oaptwsfy bar mis Saaorlgr Lsdrt,¦at ar by AppModb Law. If tte Low s0a in a 4m wbidt safe and owes Won c . and do kw is Aed 4 irorpesobd so dmK tee bfoseat a Ow bw obmmtpea eafbawd or to be aeroawd fd oawwooloa wilt es Loan atwasdt doe perafMfed tbaMo. rase: (a) oal? side joss eiarp sbse)f ba eeduead bar dro avow n aroaataey o oeduse ft doW sm ft pat'I k- &ft at (b) my N ma aimtflr oolbro d ft= Borowor w Aft eeeaaaded ponmftd b eft wit! be eadoodeml w serttmer. L aft oW do m n soles Iris ashod by reefolag tw pda*d owed miler ft NM or by auMn a dbwee I io - i to to Bortowar, N a round redsoaa pd a dd. 6* eadstsimte wZ be tx?ea11 1 as a pomdA pdapmq?aoeat wibaat wW p mpa som d wp (w64= or ox a pedpsprmeot cWW is pra.ided dor aead'er the Noted. Dortower's acoepesome ad say sttZi evflafid afltlm by disaa prpafsot n Boei+ower WN con oto a watnet of a w f%* of amtimo ow2m ar a %ft bm &% ft sae of *A* p++etdtae+pe. rww: ?, m>an a,..++d+? fbM?7aae 7At 1914J93"1494 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC . PAGE .23/27 IS. Pldiess. AN MOO= own by ON90M or LAW K io agelwctroa vwh tbs Same ty lmaummots mod be Is rrrititls. Mar reshot to Aotsmret o ao 11 11oa sft this saom * lonew tads *A be dammed m lee bm sd+wa b Dwraou vbpr smut by fiat clas sail or vdnm satrstiiir ddhmnd b Dommes sauce * wet f most by son tiat+tea. Nate to may am ¦mtm dwdl asaueue m robe a d Banvom sdMs Appiitdds "mt dqwm* ,megrim othed? I The walm sddnrs dish be to Pdepaar Ad/nrs ttoku Dore vm hale dMiirtstsd a subm dew trot w oMmass by modes to Imdtr. Be -a am shag ptnstpay mtif)r lAdw of tletemor's ebaaim of addeea. IT ta¦?Issr m a romeitae for eset+owe's d1 op of mikeds. tees Nuotsar aid omb? repot a Qftp of ooftm thsmo rim pwoie. Time mq be only ane deei/aamd sours addeYS sealer rift flaordigr ismmmeem at l a4r Gas ttae. Arep match 0 Emodor doU be f by de1)vadbg k or by manias k by first clam mel w Limob s aiftwm eased basks mis Laldw bas dtsipttsal states at-1 by a oho is Sonum Axw sodoc it aameutas wind adds Ssmmrlgr lass amoit sod amt be dem¦sl a have bus Mm a Lasddr =0 aamd% droealalvad by Laeaisr. K saga oatlea ttaauieed by 'NOW d?rs ems iei aeaeet?grA= t W, the, Apple LtM? xegmMmaset vs>11 sstmry Id. arwNrei? m No wd?pie t Lis efCr hoot law 'rode 8 --- IQr hMmm* dNdl be aarote?ed by bdud for and i lea of i jtslsriodes in *M* ds Piapmsly Ie hated. AN lions at dgllatess eased" in this NIP I r bstem mat arm motijsst 0 aw detpekammata Ad ifalwhm of Andedis Law. rasa ad* on *13 ar files' Widrs t comb tat. b to vast am may athemms aid set ire aamtesed se, a P-6 secaftia" r 44 Mr ro•isi 0 of ob 1? Ieaans n at thew! Nat: ?? Law. So* coft dog shin diot wffiost the wad la Gdo 3wm * 10101,11111 1 W %Wft of tit dltMei Meader abM MM ass Whom corsemp 009 =Mr words of mods of the tlsthime 9 aae1 - (b) a- is is skOW ding event and Wduft are pkvW mad rioe lei w and (a) me owd 'sq' Mums sole di =Am tslis t my INS - a a tafm any ac*4L 17 Barno+ mr% C@W. Bamwar dent be St4a am oopy of I* No1t ab of *b aeaielfir Imo. IL Tnmhr of the lltvpall or s dls¦ - " Ld i- Is /estwwer. As used in 96 Ssotiim 16, "[:eee+set b the hopiegr" memos ?r lest or tim ftU bommot in to hrat¦dh & but sat l mdmd a. fee be¦elioial lomm se uaosdremmd ie a bead h t damn. otagstmt fir dsed ddinm toemtatt of ateav ms+raamdete?t. tot ids of *N* is the immi he of dde by $ouew m a false due 0 a prs>tisat. 1t all ar adp? pat d the lhopmgy ar m4!' tetetmmt iQ i !llltpltq? is dd[d ar twaarAmod (a if Boddto+rra k sot a s?thtal pmaoa d a bmemi1w Yeeat Is Sogrom mr is mM or umbnl* w+ii n a Yotsair's odor lrritltta asttdst, i?adad mt4 amq? feuuetediea et?tt is Ed ofd sad mmod by do Soco* I¦sonrorewe. [3o+trttver. its mptos irg amt bb aosrevimd by tg dw if ussi<dsttttite b pteelilsd by law. N LmWbr ewcsises his %g m, tmdor ill In >tasvarmr coda of sosdmtaios. Tee seance dot pm W a Marion of sat bets does 30 days ideas ra dne to omits b mss de, wovtdeseae wiilt Sestian 15 wriiis %%A ia=vw sot pw ell mix so mod by rein Big fl,1' IsMnsasls I It boo wtv fide a pw Wemt ttram sear ea tea aepitatios of t do paio& lAubtt vm idnA - mW dameed, pesmsimd by *b Saa way 1nM1 mmo drlfhstr fiaE+itr tMl n ar ddmmul as fi wout. 1!G Derr~v 70 tit lAMaMMe Abw AMesimerdow. U imeaevsar miter! Cakttia conditions, Batiroeser iii have, we *W to lams a¦Iemommom of dds 8eoreelty L mmomm t domandm ed at add dsss prior to tee maddest at (a) Dow deys bmize sale of do prRmvy poo mt m mW pvdrttr of side ammaked in this Samtstio (b) No, other padod as Apobmbb Uw md* ajomW for ft tmnd"m dDonoser's hilt b 114010e: of (0 Oft of aJtsytOM ia?r?ir? adds Meetdiwr tituia?tetst. lbm om dbass m drat Bonv+aw (a) pp Lr ft d mama %fth twat .resell be, lees sstdtr tYs Smo¦d4? I?sst sad the Most as ff no awebodea a" owomo* (b) owom mar I la 11 of clay other arrcome a ogrft mvm (c) pmts s0 4"4"wy own" rq.la w le Fbrw a0la jai 0".?93?G 1495 87/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC . PACE, 24/27 etpa io o%V n4 in odoWbg this ftlft ItI tnloaa 1 b9tA oB. VA trot Haunted b, taaso 0 k agorneys' fwl? p moty h paoaaa mod voloodon Ins, and odw foes itlcttned faffs paepaa I of pratotdfisp i ss&es k teat in fie Psopmety and rf w ceder this 4 x -113 lmusums; d (o Woes addu sala as Leadrw cowry 11 u cod h ae* to a morrow *mt Ludeem bum im the !'spotty amd rippat oaft V* aaapeuneat, sad ms's oblipatbn to pep tba ssna aecom d by dW 9eeaeittg? 1; 11 mmt. > onimtn uat>i up& Linder tats tegleite trot Bolaa?ner pay atmti oelasraustt sus aed ettpeooes is sots ar taaap of 11te thBanodutB fcMo. as endowed by Looft (a) am*- (b) soamay ooI . (o) metilfet abmollt, book tdteck, MINNOWS dsock as casriar'a dM L pro l ldad amry such ebo* iodt'mws epos as &MOI Aldit wltoee dapaaist art: iltlttald b7 a defied op mey. isttaaourft at **r. at (d) Ownwook tFw& Tetnnlbr. Upon raiaelalamNat by Boaower, &=ky wn omens mad obiioftes amid homeby dW raw & &W efBnd m a It ao swelowios Lad ooanere I VAnw et, dda d* to teimNtso dW trot my* b ft pre of somiko ios no ft tonics W. X tob rf !slat ClotF at LM 911 wiata'i Mielft of GAW ML V o Nets ar a pstdM i OWw itl dte Note (%Wfbar wld dtis pXN* 1>•eraoeee 0 co by avid oat at taoae does wrLI A M . VdW oodoa to Beet+ow". A eaie owsk k a chop to to coft (down as fits *Loa BlrAws) dbat aoiYo4 9britalic p4pm is die under the Mate sod tilt 8aemtigr );ettttnlteait eat! I sli I other setae 'no, !case aatr", 5 dftmim cedar dte Now this de =dW imtmemtW ad Applioabia Les. Tbft mYo MW kw ow or stomp chogn at ow Hope Survivor =OWN sm a ada of d w Now N Mon Is a chops at fire Eases 3w* a Noun - - r wdtt be sires writlea oft* of dw chop wTti* wM :rase Au sorbet aald adios at to am Doss fiervioer, da: address a nddooft ptgq?alaot doW be sods and toot 4dw iolmmod m f"A tequilas In aooomcft wM a =66 of artamte, of sawkht. If ft Now is team aatd 1 9, Ra? thin Lana is attrdreed by a Laeo Sofftw ORM dwo the pott<dbrt - of the NOW ft mfl i are loon sotvi , d*sW= to umairt, w M naafis v* Go Loan -strict' or be w¦dists I w a rAws mw Lm Hawker acid to not asaotnd by ft Nora ptmAaaer noises woitetwie ptewidod by dos Now I so A ter. Noitbar Botsowar tar L"ft reset ratmasm. john. as be joined b a& ju&W nadoa (r ddrter ao aediridaat litWM or qte sa other of a aloes) dd oboes icom the o*w peep?'a aoafaoo -, - atot so this ft=* imummoot ar that others *9 do attar pKW No Woo" ¦oy peadoioo of, or ou dow awed by moots of, this,aao* a¦?eet, ved stilt fleetow- of at losiar Do o low tilt Gdor POW (Tft sm* sauce ptwea to coollialw w M do er I itewssot of R wdm M of a* WMpad boeeft east dbmdrd du infra pulp homm a r sommbY pfriod oft do oft of mm* OWN to iaB! oaaaaatlwa action. ff Appd&b Lave peetrides a dose parbd 1s*k pout eiapee bAn t:1-1 1- aador ono be o t % iR dome pe dW %M to d omen d b be ttsloamafda fa po "mus of ft psa@taple. to ttQllw of andmirmdas Out I V l ,roaity a crop SWU ao bumverer pwo ns to botios 22 sad ow aatics of amalaartioa piwaa b Bo[lelL a pnamaat oD be ft tt shall be dsoefed w toddy to = *a amtopprtwmw0 atlas ootsee" oeffospt+oIMo- of ibis "Woa2M 21. Hnrttdsan Sia/em01 As coed la dds decdaa 21: (a) 'Ifaeaodatte 9Hlaasmoes• are tb sea mom oom dolb d » tootle orLmadous Meof ok po0elmts. at wsnmt t4 Lay nod de Eollonhtp Md"otom. $Omah a. iteeaaaes, attar flamo ow or softie pamasetas p efteelt, "We paatiWN and Lsebiei'I . vobso aalwamos. mamalsi I coataimin #A*" ar . ad s.dioN* 0 atatsriafs; (b) '19wIoooolaaoal Lawn' momm Adsral Watts and Less of ** jttrisa,11, o "fasts the ft%uly is bcod riot Ulm eo bsldtfl. satitq? or d ptota¢m fi s (o) MR "I a sew WNW ow napoaoa salvoes. ramadid scout. a nsottoi acme. as dafiasd fit 6tsioemisatai Ltn, attd (d) as 'Bmwiaomor W CoMWM* v11 IN a arodsl M that cos cow. GarRbm b, or POWWOW U*w an ON is 8 m - . Clallllw rww: 1 ? PON+s d+s tawaaM 1Nt '. 3f% # it 916 07/18/2008 09:10' 7172921325 SEARCH SOLUTIONS INC . PAGE .25/27 Aot'aowa arch am caste at pm W rite pa:amae. or, dMpooAL talons of ? Eltmtrdout met, a trNt0lm b WkMe MW Hammitae Sdm@Wow, on at in ? ?or. Sm so m-- dwX mt do. nK spoor bow do, ft ow it 1a of aw iY+dtemabtod Lar, tp) aMmpt as 8arfe 1 wrtoa. d Me 0 dib rEwa. or aftm d a IiMMdaat ?aitpm0. axmm a atmakim do adtataeilr wipto trt alit of lke lu peaotdit? tw+o soft= oral! an gplf as ft ptttamta. me, or mt *4 Fmp?t?1? aE loo= at 8, 1 lr mma sm are tQ re ata ad 0 mdmft ? of me ?rapeav (Ltdtbt ate d atottttt Miltsri lt¦ to.tMroet Y oaur ?tti. tataerrte ail pooe L.aadee wdtpo atatloe of W t:LYtt. +ttottod. kawk or cow Wo w of Law 7w Boon, 1? °i sW >3eaaitrtautttttl Nett. YwlaArwp rot trot llmind to, t?i? teoltM. aluimrdr. arlere a of own tetaatte of aaer Basdaww dtitrtrste, mod (a) wq osattd i! >w1t plump ate or xamtt of a atowi6od 67' Haardotta /tbattttat vNrtiit at/mX dlloet tit alto of it iF mu awr tones, or is 9?itMdo¦t?1MMrat drt l'bopwq? it p aaer! M illl' ey dia of Clta?wp. Law 1?lmMipr ittda amore w AWN Z Leatdtr - m N[IWUNQ+CiilMt COVSKAM. llot:awot and Lanir (WMr owrmwoMt amt a m at hOm w A Aeaaiaeadm ¦tttatis. l adw AM @in son is 1ltatwtae' btttatltattlitn Mrwttt aaatiltwwwlMa atr?wwr #r111'aV?it aaWMWAW M?t W now" Litt k11? ?MM?f?lr fits awrl?? at, arata? aw0. it w?1m dad % lsanw 1?1 ttYd an aitittlt etwwt M earth a *MM M am 1Mt d w qpdW ¦r?/ - "Oka" at /ie -= - GIs dr iatodoimMae tlir¦w cans arai o i i?tir tt?t a[ attdrwe to irirr fr Y ad'aiaatur artimnd ? ? a" as luirairtlj+wwttrt i bommod 'w , Iwt so rt11a1 A oMla- artli?..tirntlatrtrt Laiac a? NtMrw tlpta of as ttma same ?r ob Aw writ Ltttirnttar aitii tM?lrrlt ad boasts void. Asw oaoi aomme¦ta Iseft amf Not wt dW tet?oatlttit? mop. lm dtr mw cmw iattva?ar a to ON ? bommok t¦dttrr ?? 4 ow ao & ad p m Far aa??tos ttstdttMf aed 4e dOW p o= the a +ee to ?Imtt ?itA A do tyaC ? o°Rr 1br aap? bf aNOeatlfioe. a atta¦im of tJote, aso n fiaaa +tMtdrrtae. bq eod lttirdmltatmal rttiti.Iwaera?.Ytu'a tlMe b t?aistntt ptaid+i is go" It tiatl amrtd to m- how prior to rip ooamasoat m o[bvft at a tlMV5 No or oiae ob "mom lo writ daaaei? Itae?rrtttt. A ftIb tt Mtry MWrW V6 If atf IiR r/6t a¦71?rE by liti< saertitp trAamlwmme in last t0 attpris tidt tt titM?irbit?tiep ?tlwttt?trt atri re # pmmtYtt ? otte?e. 8oaower M awtimr a }tom is "a oft ?"!. Llanat iY ?baww tdrtta tlwtt td ietttaR AAt amated ft ft Nab or to as a dm of 1m01?tde iYadowwtti ill ba art fm Om ?t to Mw auodder As Wab. rwr?: Wap" am ..fir*;au RMmm 't/ft "M 1419 I 07/18/2008 09:10 7172921325 SEARCH SOLUTIONS INC PAGE .26/27 BY S[GAitlQ[i BELOW, Borr' 11PI 14 000 b dk MM ad app ooedtWW m do S*MitY bftaeeat aad m AV Rider encubd by DMIU et M d Umded WIM it. 4kv oww (Sao -a oww (SOW) (3mg) -Bogoww _. ciao -Boncow (Sao so mm (SosU (59* offaft 4 ft4U" 4mm ftp"w" f mam im Itt. I if PfiGF- 27 / 27 sow-rIONS 'ING ' 7172921325 37/ 18/2006 09:10 of rowww"ATOA, t:0 dot! fit: teowe ado 10 at (OC 10 ? be** Paso-"- fa *0 papono saislowi tdww ` d o W WTI" 6xwi.&a J4 I'll. /'?o bW*y Get* . Sm 00, P _ M 4001-206. ILY., Cep kyl 1. 1 A.CDVWA?Xotto - at , ,fd dOW ItUll VrWAM Wb0d *b WW ?,pec?tl??'e 4ow ~*sets EXxi$IT A,1 NOTE May 23rd, 2007 (Datel 331 F STREET, CARLISLE, PA 17013 1. BORROWER'S PROMISE TO PAY CARLISLE, PENNSYLVANIA Wiry) [Sate] (Prop" Address) In return for a loan that I have received, I promise to pay U.S. $ 157, 000.00 (thiSamount is called "principal"), plus interest, to the order of the Lender. The Lender is FIRST HORIZON ROM LOAN CORPORATION 1 will snake all payments under this Note in the form of cash, check or money order. I understated that the Lender may transfer this Note. The Gender 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 6.750 %. 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 Pfau of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the let day of each month beginning on July let, 2007 I will make these payments every month until 1 have paid all of the principal and interest and any other charges described below that I may owe raider this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on June lot, 2037 , 1 still owe amounts under this Note, 1 will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at PO Box 809 NMGPHIS, TN 38101 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. $ 1,019.30 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 wider 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. MULTISTATE FIXED RATE NOTE -Single Family- Fannie Mae reWle Mae UNIFORM INSTRUMENT Wolters Kluwer Financial Service 3200 1101 ? 1 013 !a¢o>).e, canals: I 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 reftmd 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 15 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, 1 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 the 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 trailed to the or delivered by other mans. (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 the 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. 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 trailing 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 trail 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 trade 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 trade 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" [Weans the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 9??!p1O'r,/??? t Form VMv --an 207).01 Page 2 d 3 InMft: t?(t? 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the prouctions 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 Intake 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 pan 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 Leader 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 oust pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period. Leader 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. Ac? (Seal) Ross TH -Borrower -(Seal) -Borrower -(Sew) -Borrower -_ (Seal) -Borrower _ (Seal) -Borrower -(Sew) -Borrower (Seal) -Borrower (Seal) -Borrower (Sign Original Only) "\VWMWMA- w4nowwww'' papa 3 of 3 Form 32001/01 EXgIBi`t 82 ASSIGNME` OF NORTGA ZE_ ID`IO`M ALL MEN BY THESE PRESENTS that "Mortgage Electronic Registration Systems Inc as a nominee for First Horizon Home Loan Corporation" berebuder "Assignor" the holder of the Mortgage hereinafter mentioned, for and in consideration of the sum of ONE DOLLAR ($1.00) lawful money unto it in hand paid by, FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION "Assigack" the reocipt whereof is wJmowkdged, has granted, bargained, sold, assigned, transferred and set over wits the said Assignee, its successors and assigns, ALL THAT CERTAIN lndomture of Mongege gluon and a wouted by Rose Smith to Mortgage Electronic Registration Systems Inc as a nowinee for First Horizon Loan Corporation, bearing do date ®S/Z W, in the amount of S1570&", together wM'dw Note and indabtedness theeon mentioned, said Mortgage being recorded on 0 7 in the County of Comberlmd, Commonwealth of Pennsylvania, in Mortgage Book 1993 Page 14%. Being Known as Premises: 331 F Street, Carlisle PA 17013 Parcel No: 0&14-1643.042 The transfer of the mortgage and acoompamring rights was c0botive atthotimetheloanwas sold and oonsideration passed to the Assignee. This assignment is solely intended to describe the instrunuut sold in a manner sufficient to put thiird parties on public notice ofwhat has been sold. Also the Bond or Obligation in the said Indenture of Mortgage recited, and all Moneys, Principal and interest, due and to grow duo thereon, with the Warrant of Attorney to this said ObNgatiom` aiivfta Tdge lie witb all Rights, Remedies snd tr Lideuts thereunto belonging. And all its Right, 71d% Interest, Property, Claim and Demand, In and to the same: TO HAVE, HOLD, RECEIVE AND TAKE, all and singular the hereditameats and promisees granted and assigned, or mentioned and inteaded so to be, with the appartenances unto Assignee, its sucoessors and asaigr% to and for its only proper use, benefit and behoof furevor, subjoA oemAvloss, to the equity of redemption of said Mortgagor In the said Indenture of Mortgage named, and his&a/their heirs and assigns d ein. IN WUNESS WBEREOP, the said K1?selgnor" has used x Corporate Seal to be herein affixed and these presents to be duly executed by Its proper officers this , (?_ day of . 20_M, Mortgage Electronic Registration Systems Inc as a nominee for F1rstHorkon Home Loan Corporation Sealed and Delivered 1 in the presence of us; State of Tex03 County of tP s rrr'of j20 before me, the subscriber, personally appeared. 11diL82PEL A ?C? i U??? who acknowledged him/beself to be the Vice President of Mortgage Eketrenk Registration Systems Inc as a nomrtnee for First Horiaon Rome Loan Corporation, and that he/she, as such Vice President, being authorized to do so, executed the foregoing instrument for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my handped official seal. - -7 Stem SHARON J LAWRENCE.- - - cl??w -?•..?? My Commisalon Expires nblio January 3, 2010 he pre s o the After recording return to: vviitbin•named Assignee is: PHELA14 RALLA(AN & SCSMIEG, L.L.P 4000 Horkon Way One Pe an Canto Irving 1617 J F.IZ Blvd., Ste.1400 8/15/AB?TgC BY' or Assignee) Pb)ladrdpbla;-PA 191034$$4' 07/1B/200B 09:10 7172921325 I ROBERT A. AMER ?; vQRdl;R t! SEEDS ?a a ERlrAND -COUNTY - Pt SEARCH SOLUTIONS INC PAGE 09/27 Paroei ma*w. ( Q.-._ lt? Na ' 03 SEP 19 ?R IC 3 e ? TM Dili. made tha day of, 7M BN7liMEtif01 Ja nss O. Thotrras atnd C=ft L.1leortras, M. v AND Jomss M Crawbtd and JWY L Crowford, his Wile, Give aaa. Mlf1MflfilBETit1, T d in .=Wdsraliori # the sum of orw iiur *sd E" m Tt mww (0118.000.00) D ftm in hand pout Me raoaint wltsraaf b hereby aaiaaomsdu d. Use said grartbats do ha o" grWO end OOr"W b the said Granbea, their hales and ME-fig ra, ALL IMM TttMC1 CiNl A N tracts of tend w1hr the Mnprarannrris v "W" anaotisd. onsomm vn the Norm side of 11" Snot ki tfw FM Ward orthe elaouph of ommis. C RMW of Gt"twiwai. sold oomrranview of ""'M ivwds? tnn•+e 00090" V bounded and desuMod as roiows, to wit: (ads 061"1 d tsgel dMmipeion, A) somemsernep nersMOM whid? Qarriae W Wolfs and MIldrod B Walk. hisvdb, by dead doled Apd1 10, 19ft and ra?ootd.d ,I n fiat Oft* for to f looordw o! Doeds M and for Curn hd County. Padr+0wrlia..on Aprti Is, 1M, in Racmd Book 0 81, Page 1010. TOfiLTliM errtllt id aid slnOulart'. b"926 mss. MNg?p, strsatr,, a?+ pa*?: w?i. watsr?ewttwe. ??? and wh, oMow ' ?raueMo btafatgk , or In any win t• and the mwwWom and roraeMne em mft MwM and p oft t:wsK and all the saaW rift, go, h0m -at, ptgx V,, adaim last dm.m whdsosvw of fm said 1lra ftm, in taw, squky. or cl hcnmow. of. in. and b the dams std dusty part 6 woo TO HAVE AND 70 HOLD Wo SM prey km wNh al and airpuiir the aka, unb ? said C,ra?es. party of the eaoond part„ thsNhobs artd iouvw ear+n?er. AND the *an C3ranWe hweby awmmnte and ass that #m vA spedsh? vwnant the pmpwty haoby coft"d• WN PAMI ROBERT P. ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY 1 COURTHOUSE SQUARE CARLISLE, PA 17013 717-240-6370 Instrument Number - 200831919 Recorded On 9/19/2008 At 1:21:50 PM * Instrument Type - ASSIGNMENT OF MORTGAGE Invoice Number - 29308 User ED - AF * Mortgagor - SMITH, ROSE Mortgagee - FIRST HORIZON HOME-LOANS * Customer - PHELAN HALLINAN & SCIIMIEG LLP * FEES STATE WRIT TAX $0.50 STATE JCS/ACCESS TO $10.00 JUSTICE RECORDING FEES - $11.50 RECORDER OF DEEDS COUNTY ARCHIVES FEE $2.00 ROD ARCHIVES FEE $3.00 TOTAL PAID $27.00 * Total Pages - 3 Certification Page DO NOT DETACH This page is now part of this legal document. I Certify this to be recorded in Cumberland County PA /o . RECORDER O D DS * - Information denoted by an asterisk may change during the verification process and may not be reflected on this page. 111111,101,111111 EXKI$IT $ PLAINTIFF'S AFFIDAVIT IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT STATE OF Too ss. QOUNTY OF Dl ft) ' Mike Fisher , being duly sworn according to law, deposes and says: I . I am employed in the capacity of Limited Vice President at Metlife Home Loans, mortgage servicing agent for Plaintiff in the within matter. 2. In said capacity, I am familiar with the account that forms the basis of the instant foreclosure action and am authorized to give this Affidavit. 3. I am the custodian of records for the within matter. 4. All proper payments made by Defendant have been credited to Defendant's accounts. 5. Defendant's mortgage payments due December 1, 2007 and each month thereafter are due and unpaid. 6. The amounts due on the mortgage were correctly stated in the Complaint as follows: Principal Balance $156,316.48 Interest $7,863.52 November 1, 2007 through July 29, 2008 (Per Diem $28.91) Attorney's Fees $1,250.00 Cumulative Late Charges $390.92 May 23, 2007 to July 29, 2008 Cost of Suit and Title Search 550.00 Subtotal $166,370.92 Escrow Credit $0.00 Escrow Deficit $1,906.88 TOTAL $168,277.80 7. Defendant has failed to reinstate the account or offer any reasonable solution to cure the arrears on the past due mortgage payments. 8. Plaintiff provided mortgagor with a Notice of Intention to Foreclose Mortgage, but Defendant did not take the necessary affirmative steps to avoid foreclosure. Plaintiff properly accelerated its mortgage to protect its interests. Named Mike Fisher Title: J Limited Vice President MetlW Home Loans SWORN TO AND SUBSCRIBED BEFOP,E ME THIS /,0 DAY OF ,2009 No NOTAR PUBLIC File Name and Number: Rose Smith # 0061005708 PENNY LAWSON tary Public, State of Texas My Commission Expires August 27, 2011 C EXHIBIT C PHELAN HALLINAN & SCHMIEG, LLP LAWRENCE T. PHELAN, ESQ., Id. No. 32227 FRANCIS S. HALLINAN, ESQ., Id. No. 62695 DANIEL G. SCHMIEG, ESQ., Id. No. 62205 MICHELE M. BRADFORD, ESQ., Id. No. 69849 JUDITH T. ROMANO, ESQ., Id. No. 58745 SHEETAL SHAH-JANI, ESQ., Id. No. 81760 JENINE R. DAVEY, ESQ., Id. No. 87077 LAUREN R. TABAS, ESQ., Id. No. 93337 VIVEK SRIVASTAVA, ESQ., Id. No. 202331 JAY B. JONES, ESQ., Id. No. 86657 PETER MULCAHY, ESQ., Id. No. 61791 ANDREW SPIVACK, ESQ., Id. No. 84439 JAIME MCGUINNESS, ESQ., Id. No. 90134 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHLA?, PA 19103 (215) 563-7000 ' 183214 FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION 4000 HORIZON WAY IRVING, TX 75063 Plaintiff V. ROSE SMITH 331 F STREET CARLISLE, PA. 17013-1346 ~y C= O -r1 ri r., ATTORNEY FOR PLAINTIFF COURT OF COMMON PLEAS CIVIL DIVISION TERM NO. OF- 4s-N el ri l Rrm CUMBERLAND COUNTY Defendant CIVIL ACTION - LAW COMPLAINT IN MORTGAGE FORECLOSURE Cf?, r rts?l the ???l C ereby e 90" CPr Vieh a ?o ba a h® ,,y File #: 183214 ? ?7 1tr?r of 0? rd Corr c 0# (e o00 NOTICE You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you, and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (800)990-9108 File #: 183214 IYTHIS IS THE FIRST NOTICE THAT YOU HAVE RECEIVED FROM THIS OFFICE, BE ADVISED THAT: PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. § 1692 et seq. (1977), DEFENDANT(S) MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF. IF DEFENDANT(S) DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL OBTAIN AND PROVIDE DEFENDANT(S) WITH WRITTEN VERIFICATION THEREOF; OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. LIKEWISE, IF REQUESTED WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL SEND DEFENDANT(S) THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM ABOVE. THE LAW DOES NOT REQUIRE US TO WAIT UNTIL THE END OF THE THIRTY (30) DAY PERIOD FOLLOWING FIRST CONTACT WITH YOU BEFORE SUING YOU TO COLLECT THIS DEBT. EVEN THOUGH File #: 183214 THE LAW PROVIDES THAT YOUR ANSWER TO THIS COMPLAINT IS TO BE FILED IN THIS ACTION WITHIN TWENTY (20) DAYS, YOU MAY OBTAIN AN EXTENSION OF THAT TIME. FURTHERMORE, NO REQUEST WILL BE MADE TO THE COURT FOR A JUDGMENT UNTIL THE EXPIRATION OF THIRTY (30) DAYS AFTER YOU HAVE RECEIVED THIS COMPLAINT. HOWEVER, IF YOU REQUEST PROOF OF THE DEBT OR THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR WITHIN THE THIRTY (30) DAY PERIOD THAT BEGINS UPON YOUR RECEIPT OF THIS COMPLAINT, THE LAW "QUIRES US TO CEASE OUR EFFORTS (THROUGH LITIGATION OR OTHERWISE) TO COLLECT THE DEBT UNTIL WE MAIL THE REQUESTED INFORMATION TO YOU. YOU SHOULD CONSULT AN ATTORNEY FOR ADVICE CONCERNING YOUR RIGHTS AND OBLIGATIONS IN THIS SUIT. IF YOU HAVE FILED BANKRUPTCY AND RECEIVED A DISCHARGE, THIS IS NOT AN ATTEMPT TO COLLECT A-DEBT. IT IS AN ACTION TO ENFORCE A LIEN ON REAL ESTATE. File #: 183214 1. Plaintiff is FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION 4000 HORIZON WAY IRVING, TX 75063 2. The name(s) and last known address(es) of the Defendant(s) are: ROSE SMITH 331 F STREET CARLISLE, PA 17013-1346 who is/are the mortgagor(s) and/or real owner(s) of the property hereinafter described. 3. On 05/23/2007 mortgagor(s) made, executed and delivered a mortgage upon the premises hereinafter described to MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INCORPORATED AS A NOMINEE FOR FIRST HORIZON HOME LOAN CORPORATION which mortgage is recorded in the Office of the Recorder of CUMBERLAND County, in Mortgage Book No. 1993, Page 1484. The PLAINTIFF is now the legal owner of the mortgage and is in the process of formalizing an assignment of same. The mortgage and assignment(s), if any, are matters of public record and are incorporated herein by reference in accordance with Pa.R.C.P. 1019(g); which Rule relieves the Plaintiff from its obligations to attach documents to pleadings if those documents are of public record. 4. The premises subject to said mortgage is described as attached. Fite #: 193214 5. The mortgage is in default because monthly payments of principal and interest upon said mortgage due 12/01/2007 and each month thereafter are due and unpaid, and by the terms of said mortgage, upon failure of mortgagor to make such payments after a date specified by written notice sent to Mortgagor, the entire principal balance and all interest due thereon are collectible forthwith. 6. The following amounts are due on the mortgage: Principal Balance $156,316.48 Interest $7,863.52 11/01/2007 through 07/29/2008 (Per Diem $28.91) Attorney's Fees $1,250.00 Cumulative Late Charges $390.92 05/23/2007 to 07/29/2008 Cost of Suit and Title Search 550.00 Subtotal $166,370.92 Escrow Credit $0.00 Deficit $1,906.88 Subtotal $1,906.88 TOTAL $168,277.80 7. If the mortgage is reinstated prior to a Sheriffs Sale, the attorney's fee set forth above may be less than the amount demanded based on work actually performed. The attorney's:. fees requested are in conformity with the mortgage and Pennsylvania law. Plaintiff reserves its right to collect attorney's fees up to 5% of the remaining principal balance in: the event the property is sold to a third party purchaser at Sheriffs Sale, or if the complexity of the action requires additional fees in excess of the amount demanded in the Action. File #: 183214 8. Plaintiff is not seeking a judgment of personal liability (or an in personam judgment) against the Defendant(s) in the Action; however, Plaintiff reserves its right to bring a separate Action to establish that right, if such right exists. If Defendant(s) has/have received a discharge of personal liability in a bankruptcy proceeding, this Action of Mortgage Foreclosure is in no way an attempt to reestablish such personal liability discharged in bankruptcy, but only to foreclose the mortgage and sell the mortgaged premises pursuant to Pennsylvania Law. 9. Notice of Intention to Foreclose as set forth in Act 6 of 1974, Notice of Homeowner's Emergency Assistance Program pursuant to Act 91 of 1983, as amended in 1998, and/or Notice of Default as required by the mortgage document, as applicable, have been sent to the Defendant(s) on the date(s) set forth thereon, and the temporary stay as provided by said notice has terminated because Defendant(s) has/have failed to meet with the Plaintiff or an authorized consumer credit counseling agency, or has/have been denied assistance by the Pennsylvania Housing Finance Agency. File #: 183214 10. This action does not come under Act 6 of 1974 because the original mortgage amount exceeds $50,000. WHEREFORE, PLAINTIFF demands an in rem Judgment against the Defendant(s) in the sum of $168,277.80, together with interest from 07/29/2008 at the rate of $28.91 per diem to the date of Judgment, and other costs and charges collectible under the mortgage and for the foreclosure and sale of the mortgaged property. PHELAN HALLINAN & SCHMIEG, LLP ? _ w t By: LAWRENCE T. HELAN, ES IRE FRANCIS S. HALLINAN, ES IRE DANIEL G. SCHMIEG, ESQUIRE LeMICHELE M. BRADFORD, ESQUIRE • p .(1,Y9 JUDITH T. ROMANO, ESQUIRE ?g SHEETAL R. SHAH-JANI, ESQUIRE JENINE R. DAVEY, ESQUIRE LAUREN R. TABAS, ESQUIRE VIVEK SRIVASTAVA, ESQUIRE JAY B. JONES, ESQUIRE PETER MULCAHY, ESQUIRE ANDREW SPIVACK, ESQUIRE JAIME MCGUINNESS, ESQUIRE Attorneys for Plaintiff File #: 183214 LEGAL DESCRIPTION ALL THAT CERTAIN tract of land with the improvements thereon erected, situate on the North side of 'F' Street in the Fifth Ward of the Borough of Carlisle, County of Cumberland, and Commonwealth of Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point on the North side of 'F' Street 50 feet West of a 16 foot wide alley and 266 feet West of College Street and at line of Lot No. 14 on the hereinafter mentioned Plan of Lots; thence by the North side of 'F' Street West 50.feei to the line of Lot No. 17 on said Plan; thence by the line of Lot No. 17, North 150 feet to a 16 feet wide public alley; thence by said alley, East 50 feet to the line of Lot No. 14; thence by Lot No. 14, South 150 feet io the North side of 'F' Street, the Place of BEGINNING. BEING Lots Nos. 15 and 16, Block 34 of the Plan of Lots of Carlisle Land and Improvements Company, as recorded in the Office of the Recorder of Deeds for Cumberland County in Miscellaneous Docket 11, Page 572. BEING improved with a one-story brick dwelling known as No. 331 'F' Street, Carlisle, Pennsylvania. File #: 183214 PREMISES BEING: 331 F STREET PARCEL NO: 06-19-1643-042 BEING the same premises which James G. Thomas and Connie L. Thomas, husband and wife, by deed dated September 19, 2003, and recorded September 19, 2003 in the office of the Recorder of Deeds, in and for Cumberland County, at Carlisle, Pennsylvania in Deed Book 259, Page 1986, granted and conveyed to James M. Crawford and Jody L. Crawford, husband and wife, the Grantors herein. File #: 183214 VERIFICATION Marcia Williams hereby states that helshe is ASSISTANT VICE RRES of FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION, servicing agent for Plaintiff in this matter, that he/she is authorized to take this Verification, and that the statements made in the foregoing Civil Action in Mortgage Foreclosure are true and correct to the best of his/her knowledge, information and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pa. C.S. Sec. 4904 relating to unworn falsification to authorities. Marcia Williams DATE: Tit1WOW VICE PRESIOW Company: FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION Loan:0061005708 File #: 183214 VERIFICATION I hereby state that I am the attorney for Plaintiff in this matter, that Plaintiff is outside the jurisdiction of the Court and/or the verification could not be obtained within the time allowed for the filing of the pleading, that I am authorized to make this verification pursuant to Pa_R_C.P. 1024 (c), and that the statements made in the foregoing Civil Action in Mortgage Foreclosure are based upon information supplied by Plaintiff and are true and correct to the best of my knowledge, information and belief. Furthermore, counsel intends to substitute a verification from Plaintiff upon receipt. The undersigned understands that this statement is made subject to the penalties of 18 Pa.C.S. Sec_ 4904 relating to unworn falsifications to authorities. nviA - A, Attorney for Plaintiff EXHIBIT D 03/03/2009 16:18 FAX 7L76957006 Jody Conrad M914 Q0002/0010 FIRST HORIZON HOME LOANS, A DIVISION OF : COURT OF COMMON PLEAS OF FIRST TENNESSEE BANK NATIONAL : CUMBER LAND COUNTY, ASSOCIATION, : PENNSYVLANIA Plaintiff V. CIVIL DIVISION NO.: 08-4574 ROSE SMITH, Defendant TO: First Horizion Home Loans, A Division OfFirst Tennessee Bank National Oo Michelle hC Bradford, Esquire One Penn Centel' Plaza, Suite 1400 Philadelphia, Pennsylvania 19103 AND NOW, comes Rose Smith, by and through her counsel Lee E. Oestertm& Esquire, and in support of her Answer to Complaint in Mortgage Foreclosure, avers as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Denied. In accordance with plaintiffs break down of costs as alleged in paragraph six (6), it is specifically denied that the Defendant has failed to make payment for the periods in question. More specifically Defendam believes and therefore avers that her payments for the months of November 2007 through July 2008, have been made. Accordingly strict proof is demanded at trial. 6. Denied. In accordance with plaintiffs break down of costs as alleged in paragraph six (6), it is specifically denied that the Defendant has failed to make payment for the periods in question. More specifically Defendant believes and therefore avers that her 03/03/2009 16:17 FAX 7176957006 Jody Conrad ? 0003/0010 payments for the months of November 2007 through July 2008, have been made. Accordingly strict proof is demanded at trial. 7. Denied. Paragraph seven (7) contains Plaintiffs conclusions as to the reasonablcness of current and future attorney's fees therefore, strict proof is demanded at trial. 8. Denied. Paragraph eight (8) contains Plaintiffs characterizations of the underlying legal preceding and as such no answer is required to the extent that an answer is required it is specifically denied, and stria proof thereof is demanded at trial. 9. Admitted. 10. Admitted. 1 I . Previous paragraphs are incorporated by reference. 12. Defendant believes and therefore avers that the outstanding mortgage payments from November 2007 through July 2008, have been paid and as such maintains she is not in 13. Plaindiff accepted payments fro the period in question and applied them to Defendants mortgage for the period in question. WHEREFORE, respectfully requests Complaint in Foreclosure be dismissed. Respectfully Submitted, Date: February 13, 2009 Lee E. Oesterr -&-li,squire 155 South Hanover Street Carlisle, Pennsylvania 17013 (717) 241-6070 Supreme Court ID # 71320 Attorney for Defendant 03/03/2009 16:17 FAX 7176957006 Jody Conrad Q0004/0010 VERIFICA'I70N I verify that I am the petitioner and that the statements made in the foregoing Answers are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C. S. § 4904, relating to unswom falsification to authorities. Date: 7. I ?4 ?q Rose 4 03/03/2009 16:17 FAX 7176957006 Jody Conrad FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION, Plaintiff V. ROSE SMITH, Defendant RD0005/0010 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, : PENNSYVLANIA CIVIL DIVISION NO.: 08-4574 CERJUICM Qz SERVICE I, Lee E. Oesteding, Esquire, certify that I this day served a copy of the within Answer to GomPidw in Mortgage Fore upon the following by depositing the same in the United States Mail, first class, postage prepaid, addressed as follows: Michelle M. Bradford, Esquire One Pena Center Plaza, Suite 1400 Philadelphia, Pennsylvania 19103 Date: February 13, 2009 Respectfully Submitted, LeeR OftW ing; Esquire 155 South Hanover Street Carlisle, Pennsylvania 17013 (717) 241-6070 Supreme Court ID # 71320 Attorney for Defendant 03/03/2009 16:17 ]VAX 7176957006 Jody Conrad IM 0006/0010 n s 4 ? w EXHIBIT E PHELAN HALLINAN & SCHMIEG, LLP BY. Joseph P. Schalk, Esquire Identification No.: 91656 107 N. Front Street Suite 115 Harrisburg, PA 17101 Attorney for Plaintiff (215) 563-7000 First Horizon Home Loans, A Divison of First Tennessee Bank National Association Court Of Common Pleas Plaintiff Civil Division VS. Cumberland County Rose Smith No. 08-4574 Civil Term Defendant CERTIFICATION OF SERVICE I certify that a true and correct copy of Plaintiffs Answer to Defendant's Counterclaims was sent via first class mail to the person listed below on the date indicated: Lee E. Oesterling, Esquire 155 South Hanover Street Carlisle, PA 17013 Date: By: 4AAornevy h Schalk, Esquire for Plaintiff PHELAN HALLINAN & SCHMIEG, LLP BY: Joseph P. Schalk, Esquire Identification No.: 91656 107 N. Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 First Horizon Home Loans, A Divison of First Tennessee Bank National Association Plaintiff VS. Rose Smith Defendant Attorney for Plaintiff Court Of Common Pleas Civil Division Cumberland County No. 08-4574 Civil Term PLAINTIFF'S ANSWER TO DEFENDANT'S COUNTERCLAIM 11. Plaintiff incorporates herein by reference the averments of paragraphs one (1) through ten (10) of its Complaint as if set forth herein at length. 12. Denied. It is specifically denied that Plaintiff has failed to account all mortgage payments made by the Defendant to date. Further, Defendant has failed to include any documentation in support in her allegation that the outstanding mortgage payments from November 2007 through July 2008 have been paid. Strict proof is demanded. Plaintiff s counsel will provide the Defendant's counsel with a payment history for this account as soon as one is available. 13. Denied as stated. While Plaintiff might has accepted payments during the period between November 2007 and July 2008, it does not necessarily mean that those payments were applied to the months in which they were received. If the Defendant was at all delinquent on prior mortgage payments, the payments received would be applied pursuant to the terms of the mortgage. Strict proof to the contrary is demanded. Plaintiff s counsel will provide the Defendant's counsel with a payment history for this account as soon as one is available. WHEREFORE, Plaintiff respectfully requests that the Court grant the relief as requested in Plaintiffs Complaint and requests dismissal of Defendant'ss Counterclaim with prejudice. Respectfully submitted, PHELAN HALLINAN & SCHMIEG, LLP Date: C , ?? ' ©q By: Q- Jo P. chalk, Esquire Attorney for Plaintiff VERIFICATION Joseph P. Schalk, Esquire, hereby states that he is the attorney for the Plaintiff in this action, that he is authorized to make this verification, and that the statements made in the foregoing Answer to Counterclaim are true and correct to the best of his knowledge, information and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pa.C.S. §4904 relating to unworn falsifications to authorities. PHELAN HALLINAN & SCHMIEG, LLP Date: c'.' ?) - (Y) By: N Jo P. chalk, Esquire Attorney for Plaintiff 107 N. Front Street, Suite 115 Harrisburg, PA 17101 (215) 563-7000 E T v XHIBI FIRsf HORIZON.' l o BLOANCORPORBtI M November 9, 2007 ROSE SMITH 331 F STREET CARLISLE PA 17013 ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAL41M WILL BE USED FOR THAT PURPOSE. IF YOU HAVE BKW DISCHARGED IN A CHAPIRR SEYEN BANKRUPTCY, WE ARE NO SEEKING PERSONAL LIABILITY AGAINST YOU, BUT ARE PURSUING OUR RIGHTS AGAINST THE PROPERTY AS PROVIDED IN THE SECURITY AGREEMENTS. T bs is an oX&W notice ¦* the morlggae on 3= bon-w is in da%& and the leader fi*mds to foredm, %2ecift information about the nature of the default is Rm ided in the attached cages Tlw Ij()MRn EWS MCA UGAGE ASSISTANCE PROGRAM flfflRdM aaty be"to belt to save your borne. This notice explains how the RMgram works. To see if HE" can tvtn_ you must MEET Wrl'Fi A CON<L MML CREDIT COUNSELWG AGENCY WITHIN (39) DAYS OF THE DATE OF THIS NOTICE Take this notice with you when your the Counseling Agg cam. The na*m adms and eb= nunbcr of Consumer Credit Coumeling Agom servio¢ your County are listed at-tbe end of this Notire If you bave W questiouL y y call_tlw EmLylvani Hough Finance v toll free at 1-800-342-2397 (Persons with _kWRj g can call M 780-1169). 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. ACT 91 Page 1 of 5 LA NOTIICACION EN EDJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION IMMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVIAN HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELIGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. Mortgagor Name ROSE SMITH 331 F STREET CARLISLE PA 17013 Loan Number low Original Lender Current Lender/ Servicer : First Horizon Home Loans 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 ELIGIBIIITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSiM&Under the Act, you are entitled to a ttmgoraq+ 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" mewing with one of the consurer credit cormaebng agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT {301 DAYS. IF YOU CONSUMER CREDIT CO SWUNG AGENCIES-If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names. addresses Md_ telwbone ruanben of design consumer credit counsel= aeawies for the county in which the mmerty is located we set_ftdr at the end of this Notice, It is only necessary to schedule one face-to-face meeting. Advise your lender t& of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE-Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default). If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program To do so, you must fill out, sip and file a completed Homeowner's Emergency Mortgage Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. ACT 91 Page 2 of 5 Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOUSRE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION- Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance). ROW TO CURE YOUR MORTGAGE DEFAULT Brier it y2 to date). NATURE OF THE DEFAULT- The MORTGAGE debt held by the above larder on your property located at. 331 F STREET CARLISLE PA IS SERIOUSLY IN DEFAULT because: A. YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: No. of months due Payment amount due 3 c@t, 1459.28 0@ 0 0@ 0 Late Charges 187.24 Other charges: Bad Check Fee .00 Other Fees .00 Minus suspense .00 r ?+ TOTAL AMOUNT PASTDUE: 4,565.08 B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION (Do not use if not applicable): ACT 91 Page 3 of 5 MW_ TO CURE THE DEFAULT You Tray cure the default within THIRTY (30) days of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS 4,565.03 PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: First Horizon Home Loans 4000 Horizon Way Irving, TX 75063 Attn: Cashiering You can cure any other default by taking the following action within THIRTY (30) DAYS of the date of this letter: 022 not use if not awlicabk.) IF YOU DO NOT CURE TIM DEFAULT-If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to ex ab rights to aecdo to IM modiste deW This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chants 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 kgal action to Wdw„anon your mortraged property. J' = MORTGAGE IS FO CLOM UPON-The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal prods 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 Vu cure the dg a t within the THIRTY (30) DAY ipvou will nibs rremjmd to vav 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 SIMMIS SALF-Af you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cep the default and wevent the sale at any ' un to ors lmur beim_She Sberiff'sSWes_ Yon Y do so by Ram the total amount titen mast due. 2h o any late other dwm dw msorrable attomey's fees wd costs ca-mnected with the foreclosure sale any Qdw costs connected with SberCs Sala as BVG&d in writt?ti g by the lender and by 9c f n ng any otter rermim0b under the ruoxtgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as U you had never defaulted. EARLLEST PO LE SHERIFF'S MU DATE-It is estimated that the earliest date that such a Sheriffs Sale of the mortgaged property could be held would be approxirmtely 9 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 sue the default will increase the longer you wait. You may fund out at any time exactly what the required payment or action will be by contacting the lender. ACT 91 Page 4 of 5 HOW TO CONTACT THE LENDER: First Horizon Home Loans 4000 Horizon Way Irving, TX 75063 Attn: Loan Counseling Dept. 1-800-707-9998/Phone 1-214-441-7392/Fax EFFECT OF SHERIFF'S SALE- You should realize that a Sheriffs Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at anytime. ASSUMPTION OF MORTGAGE-You may or 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 PARTY ACTING ON YOUR BEHALF. *TO HAVE THE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TAMES IN ANY CALENDAR YEAR) "TO ASSERT THE NON-EXISTENCE 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. IF YOU HAVE ANY QUESTIONS, CONTACT LOAN COUNSELING AT 1-800-707-9998. Sincerely, First Horizon Home Loans Collections Department ACT 91 Page 5 of 5 ?l 1 iA a t a 0 r V •? ? 1 . r ? LL N . n 5 l 9 Th96 1060 0111 qS45 `[Z0 ' 1 i t i t ;t 1 i 1?. 1 t EXKIBIT G MAR-24-2009 16:41 MotlifQ Home Loans P.10 LOAN ADMINISTRATION 4000 HORIZON WAY IRVING, TEXAS 75063 CUSTOMER ACCOUNT ACTIVITY STATEMENT DATE 03/17/09 REQ BY WLQ PAGE 1 POSE SMITH - -3-1 F Sn' !`AP.LIS•LE PA 17013 * * k k k A P AA'A *'k***'A'* * * * * * **A-*******-***********-******** **- -------------------------- CURRENT ACCOUNT INFORMATTnN ------------------------- DATE TOTAL PRINCTPAL LOAN CURRENT PAYMENT PAYMENT & INTEREST INTEREST PRINCIPAL ESCROW DUE AMOUNT PAYMENT RATE BALANCE BALANCE 12-01-07 1,459.28 1,018.30 6.75000 156,316.48 5,318.15- * * * * * * * * * * * * * * * * * it * * * * * * * * * * * * * * * * * * * F'-* * * * * * * * * * * * * * * * * * * * * * * * * * k * * X *' * * * * * ± ? '*' ACTIVITY FOR PERIOD 03/17/07 - 03/17/09 PROCESS DUE TRANSACTION TRANSACTION EFFECTIVE DATA; DATE DATE CODE DESCRIPTION OF TRANSACTION ------------------------------------------------------------------------------- TRANSACTION PRIN. PAID/ ESCROW PAID/ ------------OTHER------------- AMOUNT BALANCE INTEREST BALANCE AMOUNT CODE/DESCRIPTION ------------------------------------------------------------------------------- 03-09-09 00-00 631 PROPERTY PRESERVATION 15.00 0.00 0.00 0.00 02-24-09 12-07 161 ESCROW ADVANCE 226.66 0.00 0.00 226.66 02-24-09 02-09 310 MORTGAGE INSURANCE DISBURSEMENT 226.66- 0.00 0.00 226.66- 5318.15- NEW PRINCIPAL/ESCROW BALANCES 02-24-09 00-00 632 STATUTORY EXPENSES 27.00 0.00 0.00 0.00 02-24-09 00-00 630 ATTORNEY ADVANCES 125.00 0.00 0.00 0.00 01-30-09 00-00 631 PROPERTY PRESERVATION 15.00 0.00 0.00 0.00 01-21-09 12-07 161 ESCROW ADVANCE 226.66 0.00 D.00 226.66 01-21-09 01-09 310 MORTGAGE INSURANCE DISBURSEMENT 226.66- 0.00 0.00 226.66- 5091.49- NEW PRINCIPAL/ ESCROW BALANCES vl-1G-09 12-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE 01-08-09 00-00 631 PROPERTY PRESERVATION 15.00 0.00 0.00 0.00 12-22-08 12-07 161 ESCROW ADVANCE 226.66 0.00 0.00 226.66 12-22-08 12-08 310 MORTGAGE INSURANCE DISBURSEMENT 226.66- 0.00 0.00 226.66- 4864.83- NEW PRINCIPAL/ ESCROW BALANCES 12-16-08 12-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE MAR-24-2009 16:41 Metlife Home Loans REQ BY WLQ LOAN ADMINISTRATION 4000 HORIZON WAY IRVING, TEXAS 75063 CUSTOMER ACCOUNT ACTIVITY STATEMENT 'tZOSMITH - P.11 A DATE 03; 1'7/0'D' PAGE :2 ACTIVITY FOR PERIOD 03/17/07 - 03/17/09 PROCESS DUE TRANSACTION TRANSACTION EFFECTIVE DATE DATE DATE CODE DESCRIPTION OF TRANSACTION ------------------------------------------------------------------------------- TRANSACTION PRIN. PAID/ ESCROW PAID/ ------------OTHER------------- AMOUNT BALANCE INTEREST BALANCE AMOUNT CODE/ DESCRIPTION ------------------------------------------------------------------------------- 11-25-08 12-07 i61 ESCROW ADVANCE 226.66 0.00 0.00 226.66 11-25-08 11-08 310 MORTGAGE INSURANCE DISBURSEMENT 226.66- 0.00 0.00 226.66- 4638.17- NEW PRINCIPAL/ ESCROW BALANCES 10-23-08 12-07 161 ESCROW ADVANCE 226.66 0.00 0.00 226.66 10-23-08 10-08 310 MORTGAGE INSURANCE DISBURSEMENT 226.66- 0.00 0.00 226.66- 4411.51- NEW PRINCIPAL/ESCROW BALANCES 09-23-08 12--07 161 ESCROW ADVANCE 226.66 0.00 0.00 226.66 09-23-08 09-08 310 MORTGAGE INSURANCE DISBURSEMENT 226.66- 0.00 0.00 226.66- 4184.85- NEW PRINCIPAL/ESCROW BALANCES 08-20-08 12-07 161 ESCROW ADVANCE 1,824.45 0.00 0.00 1824.45 08-20-08 08-08 314 SCHOOL TAX DISBURSEMENT 1,597.59- 0.00 0.00 1597.59- 3958.19- NEW PRINCIPAL/ESCROW BALANCES 08-20-08 08-08 310 MORTGAGE INSURANCE DISBURSEMENT 226.86- 0.00 0.00 226.86- 2360.60- NEW PRINCIPAL/ESCROW BALANCES 08-07-08 00-00 631 PROPERTY PRESERVATION 15.00 0.00 0.00 0.00 08-04-08 00-00 632 STATUTORY EXPENSES 400.00 0.00 0.00 0.00 08-04-08 00-00 632 STATUTORY EXPENSES 245.00 0.00 0.00 0.00 08-04-08 00-00 632 STATUTORY EXPENSES 78.50 0.00 0.00 0.00 08-04-08 00-00 630 ATTORNEY ADVANCES 650.00 0.00 0.00 0.00 07-24-08 12-07 161 ESCROW ADVANCE 226.86 0.00 0.00 226.86 07-24-08 07-08 310 MORTGAGE INSURANCE DISBURSEMENT 226.86- 0.00 0.00 226.86- 2133.74- NEW PRINCIPAL/ESCROW BALANCES 06-16-08 12-07 161 ESCROW ADVANCE 226.86 0.00 0.00 226.86 MAR-24-2009 16:41 Metlife Home Loans ._ REQ BY WLQ LOAN ADMINISTRATION 4000 HORIZON WAY IRVING, TEXAS 75063 CUSTOMER ACCOUNT ACTIVITY STATEMENT P.12 . 10 DATE 03/17/09 PAGE 3 ROSE ITH ACTIVITY FOR PERIOD 03/17/07 - 03/17/09 PROCESS D13E TRANSACTION TRANSACTION EFFECTIVE DATE DATE DATE CODE DESCRIPTION OF TRANSACTION ------------------------------------------------------------------------------- TRANSACTION PRIN. PAID/ ESCROW PAID/ ------------ OTHEP -------------- AMOUNT BALANCE INTEREST BALANCE AMOUNT CODE/DESCRIPTION ------------------------------------------------------------------------------- u6-iu-Ov 06-03 ??i MORTGAGE INSURANCE DISBURSEMENT 226.86- 0.00 0.00 226.86- 1906.88- NEW PRINCIPAL/ESCROW BALANCES 05-28-08 11-07 168 REPAY OF ESCROW ADVANCE 0.00 0.00 0.00 440.98- 440.98 ADVANCE REFUND 05-28-08 11-07 173 PAYMENT 1,459.28 138.24 880.06 440.98 156,316.48 1680.02- NEW PRINCIPAL/ESCROW BALANCES 05-22-08 11-07 161 ESCROW ADVANCE 486.00 0.00 0.00 486.00 05-22-08 05-08 351 HAZARD INSURANCE DISBURSEMENT 486.00- 0.00 0.00 466.00- 2121.00- NEW PRINCIPAL /ESCROW BALANCES 05-16-08 11-07 161 ESCROW ADVANCE 226.86 0.00 0.00 226.86 05-16-08 05-08 310 MORTGAGE INSURANCE DISBURSEMENT 226.86- 0.00 0.00 226.86- 1635.00- NEW PRINCIPAL/ESCROW BALANCES 04-28-08 11-07 161 ESCROW ADVANCE 227.26 0.00 0.00 227.26 04-28-08 04-08 310 MORTGAGE INSURANCE DISBURSEMENT 227.26- 0.00 0.00 227.26- 1408.14- NEW PRINCIPAL/ESCROW BALANCES 04-28-08 10-07 168 REPAY OF ESCROW ADVANCE 0.00 0.00 0.00 440.98- 440.98 ADVANCE REFUND 04-28-08 10-07 173 PAYMENT 1,459.28 137.47 880.83 440.98 156,454.72 1180.88- NEW PRINCIPAL/ ESCROW BALANCES 04-22--08 00-00 711 PROPERTY PRESERVATION REPAYMENT 2.00 0.00 0.00 0.00 04--15-08 10-07 161 ESCROW ADVANCE 610.67 0.00 0.00 610.67 04-15-08 04-08 313 CITY TAX DISBURSEMENT 610.67- 0.00 0.00 610.67- 1621.86- NEW PRINCIPAL/ESCROW BALANCES 03-26-08 09--07 168 REPAY OF ESCROW ADVANCE 0.00 0.00 0.00 440.98-- 440.98 ADVANCE REFUND 03-26-08 09-07 173 PAYMENT. 1,459.28 136.70 881.60 440.98 156,592.19 1011.19- NEW PRINCIPAL/ESCROW BALANCES MAR-24-2009 16:41 Metlife Home Loans LOAN ADMINISTRATION 4000 HORIZON WAY IRVING, TEXAS 75063 REQ BY WLQ CUSTOMER ACCOUNT ACTIVITY STATEMENT POSE SMTTH P.13 a DATE 03/17/0 PAGE 4 ACTIVITY FOR PERIOD 03/17/07 - 03/17/09 PROCESS DUE TRANSACTION TRANSACTION EFFECTIVE DA'Z'E DATE DATE CODE DESCRIPTION OF TRANSACTION -------------------------------------------------------------------------------- TRANSACTION PRIN. PAID/ ESCROW PAID/ ----- ---OTHEP------------- AMOUNT BALANCE INTEREST BALANCE AMOUNT CODE/DESCRIPTION ------------------------------------------•------------------------------------- C3-18-08 09-07 161 ESCROW ADVANCE 227.26 0.00 0.00 227.26 03-18-08 03-08 310 MORTGAGE INSURANCE DISBURSEMENT 227.26- 0.00 0.00 227.26- 1452.17- NEW PRINCIPAL/ESCROW BALANCES 02-18-08 09-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE F'FF 02-14-08 09-07 161 ESCROW ADVANCE 227.26 0.00 0.00 227.26 02-14-08 02-08 310 MORTGAGE INSURANCE DISBURSEMENT 227.26- 0.00 0.00 227.26- 1224.91- NEW PRINCIPAL/ESCROW BALANCES 01-16-08 09-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE 01-15-08 09-07 161 ESCROW ADVANCE 227.26 0.00 0.00 227.26 01-15-08 01-08 310 MORTGAGE INSURANCE DISBURSEMENT 227.26- 0.00 0.00 227.26- 997.65-• NEW PRINCIPAL/ ESCROW BALANr_F`, 12-18-07 09-07 161 ESCROW ADVANCE 227.26 0.00 0.00 227.26 12-18-07 12-07 310 MORTGAGE INSURANCE DISBURSEMENT 227.26- 0.00 0.00 227.26- 770.39- NEW PRINCIPAL/ ESCROW BALANCES 12-17-07 09-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE 11-16-07 09-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE 11-16-07 09-07 161 ESCROW ADVANCE 227.26 0.00 0.00 227.26 11-16-07 11-07 310 MORTGAGE INSURANCE DISBURSEMENT 227.26- 0.00 0.00 227.26- 543.13- NEW PRINCIPAL/ESCROW BALANCES 10-18-07 09-07 161 ESCROW ADVANCE 227.26 0.00 0.00 227.26 10-18-07 10-07 310 MORTGAGE INSURANCE DISBURSEMENT 227.26- 0.00 0.00 227.26- 315.87- NEW PRINCIPAL/ ESCROW BALANCES 10-16-07 09-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE MAR-24-2009 16:41 Metlife Homo Loans LOAN ADMINISTRATION 4000 HORIZON WAY IRVING, TEXAS 75063 CUSTOMER ACCOUNT ACTIVITY STATEMENT REQ BY WLQ P.14 DATE 0331117/109 PAGE ROSE SMITH ACTIVITY FOR PERIOD 03117107 - 03117109 PROCESS DUE TRANSACTION TRANSACTION EFFECTIVE DATE DATE DATE CODE DESCRIPTION OF TRANSACTION --------_--------------------------------------------------------------------- TRANSACTION PRIN. PAID/ ESCROW PAID/ ------------OTHER------------- AMOUNT BALANCE INTEREST BALANCE AMOUNT CODE /DESCRIPTION -------------------------------------------------------------------------------- 09-2n-n7 09-07 161 ESCROW ADVANCE 88.61 0.00 0.00 88.61 09-20-07 09-07 310 MORTGAGE INSURANCE DISBURSEMENT 227.45- 0.00 0.00 227.45- 88.61- NEW PRTNCIPAL/ ESCROW BALANCES 0:^-17-0' 09-07 i5% LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE 09-10-07 08-07 168 REPAY OF ESCROW ADVANCE 0.00 0.00 0.00 302.14- 302.14 ADVANCE REFUND 09-10-07 08-07 172 PAYMENT 1,460.00 135.94 882.36 440.98 0.72 1 LATE CHARGE FEE 156,728.89 138.84 NEW PRINCIPAL/ESCROW BALANCES 08-21-07 08-07 161 ESCROW ADVANCE 227.65 0.00 0.00 227.65 08-21-07 08-07 310 MORTGAGE INSURANCE DISBURSEMENT 227.65- 0.00 0.00 227.65- 302.14- NEW PRINCIPAL/ESCROW BALANCES 08-20-07 08-07 161 ESCROW ADVANCE 74.49 0.00 0.00 74.49 08-20-07 08-07 314 SCHOOL TAX DISBURSEMENT 1,516.55- 0.00 0.00 1516.55- 74.49- NEW PRINCIPAL/ ESCROW BALANCES 08-16-07 08-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE 08-07-07 07-07 173 PAYMENT 08-06-07 1,475.00 135.17 883.13 440.98 15.72 1 LATE CHARGE FEE 156,864.83 1442.06 NEW PRINCIPAL/ESCROW BALANCES 07-16-07 07-07 152 LATE CHARGE ASSESSMENT 0.00 0.00 0.00 0.00 50.92-1 LATE CHARGE FEE 07-16-07 07-07 310 MORTGAGE INSURANCE DISBURSEMENT 227.65- 0.00 0.00 227.65- 1001.08 NEW PRINCIPAL/ ESCROW BALANCES 07-16-07 06-07 310 MORTGAGE INSURANCE DISBURSEMENT 227.65- 0.00 0.00 227.65- 1228.73 NEW PRINCIPAL/ ESCROW BALANCES 05-2.3-07 07-07 17n INTTTAL ESCROW DEPOSTT, CLOSING INTEREST, ETC. 1,721.32 0.00 0.00 1456.38 1456.38 NEW PRINCIPAL/ESCROW BALANCES 05-23-07 06-07 170 INITIAL ESCROW DEPOSIT, CLOSING INTEREST, ETC. 0.00 0.00 264.94 0.00 MAR-24-2009 16:41 Metlife Home Loans LOAN ADMINISTRATION 4000 HORIZON WAY IRVING, TEXAS 75063 REQ BY WLQ CUSTOMER ACCOUNT ACTIVITY STATEMENT R'•_-?E SMITH IV ??? P.16 I , DATE 03/17/09 PAGE 1, ACTIVITY FOR PERIOD 03/17/07 - 03/17/09 PROCESS DUE TRANSACTION TRANSACTION EFFECTIVE DATE, DATE DATE CODE DESCRIPTION OF TRANSACTION ------------------------------------------------------------------------------- TRANSACTION PRIN. PAID/ ESCROW PAID/ -------------OTHER------------- AMOUNT BALANCE INTEREST BALANCE AMOUNT CODE/DESCRIPTION -------------------------------------------------------------------------------- n5-23-n7 07-07 1.42 LOAN SETUP 0.00 157,000.00- 0.00 0.00 157,000.00 NEW PRINCIPAL/ESCROW BALANLL6 TOTAL P.15 VERIFICATION Joseph P. Schalk, Esquire, hereby states that he is the attorney for Plaintiff in this action, that he is authorized to make this verification, and that the statements made in the foregoing Motion for Summary Judgment and Brief are true and correct to the best of his knowledge, information, and belief. The undersigned understands that this statement herein is made subject to the penalties of 18 Pa.C.S. §4904 relating to unsworn falsification to authorities. 51 Z(P O 5 By; Dated os h P chalk, Esquire Att mey for Plaintiff PHELAN HALLINAN & SCHMIEG, LLP By: Joseph P. Schalk, ESQUIRE Identification No. 91656 107 N. Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 First Horizon Home Loans, A Divison of First Tennessee Bank National Association 4000 Horizon Way Irving, TX 75063 Plaintiff VS. Rose Smith 331 F Street Carlisle, PA 17013-1346 Defendant Attorney for Plaintiff Court of Common Pleas Civil Division Cumberland County No.: 08-4574 PLAINTIFF'S BRIEF IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT I. DEFENDANT'S DEFAULT UNDER THE MORTGAGE On May 23, 2007 Defendant, Rose Smith, executed a Mortgage and Promissory Note in the principal sum of $157,000.00, this sum being payable in equal, consecutive, monthly installments of principal and interest of approximately at $1,018.30 on the property at 331 F Street, Carlisle, PA 17013-1346 (hereinafter the "Property"). A true and correct copy of the Mortgage, which is recorded in the Office of the Recorder of Cumberland County in Mortgage Book No. 1993, Page 1484, is attached hereto, made part hereof, and marked Exhibit A. A true and correct copy of the Note is also attached hereto, made part hereof, and marked Exhibit Al. Defendant defaulted under the Mortgage and Note by failing to make payments due December 1, 2007 and each month thereafter. On Novermber 9, 2007, due to Defendant's default, Plaintiff mailed Defendant notice of its intention to foreclose on the Mortgage to Defendant at her last known address. Defendant, however, failed to cure the default. True and correct copies of the notices are attached hereto, incorporated herein by reference,'and marked as Exhibit F. Because Defendant failed to take the necessary affirmative steps to cure the delinquency, Plaintiff was left with no alternative but to foreclose in order to recover its unjust financial losses. Accordingly, the present action was filed on July 30, 2008. To date, Defendant(s) has not brought the account current. H. PLAINTIFF IS ENTITLED TO SUMMARY JUDGMENT AS A MATTER OF LAW Summary judgment is a means to "eliminate the waste of time and resources of both litigants and the courts in cases there a trial would be a useless formality." Liles v. Balmer, 389 Pa.Super. 451, 567 A.2d 691 (1989); First v. Zem Zem Temple, 454 Pa.Super. 548, 551, 686 A.2d 18, 20 (1996). A Motion for Summary Judgment shall be granted if the documents of record show there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Pa.R.C.P. 1035:2(1); Allen v. Merriweather, 413 Pa.Super. 410, 411, 605 A.2d 424 (1992); Beasel v. New Blvd. Baking Co. Inc., 410 Pa. Super. 591, 593, 600 A.2d 610 (1991). The moving party bears the burden of demonstrating clearly that there is no genuine issue of triable fact. Driscoll v. Carpenters District Council of Western Penns lea, 370 Pa.Super. 295, 536 A.2d 412 (1988); affirmed,`525 Pa. 205, 579 A.2d 863 (1990); Allen, 413 Pa.Super. at 411; Beasel, 410 Pa.Super. at 594; Hower v. Whitmark Assoc., 371 Pa.Super. 443, 381 A.2d 524 (1988); Romah v. Hygienic Sanitation Co., 705 A.2d 841, 848 (Pa.Super. 1997). In response, the nonmoving party may not rest upon the pleadings, but must set forth specific facts demonstrating a genuine issue for trial. Phaffv. Gerner, 451 Pa. 146, 303 A.2d 826 (1973); Dujai v. Dennis, 431 Pa.Super. 366, 370, 636 A.2d 1130, 1132. Rule 1029(b) of the Pennsylvania Rules of Civil Procedure specifically provides: Averments in a pleading to which a responsive pleading is required are admitted when not denied specifically or by necessary implication. A general denial or a demand for proof, except as provided by subdivision (c) and (e) of this rule, shall have the effect of an admission. . It is well settled that a general denial is unacceptable and deemed an admission where it is clear that the defendant has adequate knowledge and that the means of information are within the control of the defendant. Elia v. Olszewski, 368 Pa. 578, 84 A.2d 188 (1951). Cercone v. Cercone, 254 Pa. Super. 381, 386 A.2d 1 (1978); City of Philadelphia v. Hertler, 114 Pa. Cmwlth. 475, 482, 539 A.2d 468, 472 (1988). Goodrich-Amram 2d §1029(c)(1), p. 280. A general denial effectively manifests an admission to the fats averred in the complaint. Swift v. Milner, 371 Pa. Super. 302, 308, 538 A.2d 28, 31 (1988); Michner v. Mont omM County Tax Claim Bureau, 671 A.2d 285, 288 (Pa. Cmwlth. 1996). One purpose in demanding a specific denial is to enable the parties to focus upon the disputed facts and to assist the Court in defining the issues for trial. Bogl Harting & Reese v. Stuart, 11 D&C 3d 3b3, 310 (Chester Co. 1979). Plaintiff submits that, in the Answer, Defendant has effectively admitted every allegation of the Complaint. Although Defendant purport to deny paragraphs five (5) and six (6) of the Complaint, which aver the default and the amounts due on the Mortgage, Defendant's averments amount to nothing more than general denials and demand for proof. Defendant generally denies the amount due under the Mortgage without reference to what she believes to be the correct amount due, or reference to any good reason to believe that the amount sought is erroneous. Unquestionably, Defendant knows specifically what payments she made on the Mortgage. Accordingly, because Defendant is charged with having sufficient knowledge upon which to base a specific denial with respect to the. averments contained in paragraphs five (5) and six (6) of the Complaint, a general denial is insufficient to raise a genuine issue of fact. Cercone v. Cercone, supra; City of Philadelphia v. Hertler, supra. The Pennsylvania Superior Court has held that, in order to raise a genuine issue of fact, defendants may noi rest on the pleadings, but must sustain the burden of presenting facts to counter Plaintiffs averments. New York Guardian Mortgage v. Dietzel, 524 A.2d 951 (Pa. Super. 1987). Washington Federal Savings and Loan Association v. Stein, 515 A.2d 980 (Pa. Super. 1986). A party will not be able to rely on 1029(c) and be excused from answering averments based on a lack of information where that party has sufficient information at its disposal to answer such allegations. Commw. by Preate v. Rainbow Associates, 138 Pa. Commw. 56, 587 A.2d 357, 358 (1991). The Pennsylvania Superior Court reiterated this principle in another mortgage foreclosure case. The Court held that the mortgagors' general denials in their answers to the Complaint must be considered admissions. First Wisconsin Trust Co. v. Strausser, 439 Pa.Super. 192, 653 A.2d 688 (1995). The Court reasoned that the only persons with knowledge of the amount due, besides the mortgage company, would be the mortgagors. Therefore, if defendant mortgagors do not plead specific facts in response to the allegations in the Complaint regarding the default and the amount due, the defendants are deemed to have admitted the allegations, and summary judgment for the mortgage company is proper. First Wisconsin Trust Co. v. Strausser, supra. In determining if an answer is a general denial, the Court must examine the pleadings as a whole. Commw. by Preate, supra. at 61, 587 A.2d 357, 360 (1991). A review of the pleadings as a whole in the instant case reveals that Defendant has failed to sustain her burden of presenting facts, which contradict the elements of Plaintiffs claim. Defendant's general denial of the amounts due and the default should be viewed'as admissions by this Honorable Court. III. AMOUNT OF THE IN REM JUDGMENT The within case is a mortgage foreclosure action, the sole purpose of which is to take the Defendant's mortgaged property to Sheriffs Sale. Pennsylvania law makes clear that an action in mortgage foreclosure is strictly in rem and does not include any personal liability. Newtown Village Partnership v. Kimmel, 424 Pa. Super 53, 55, 621 A.2d 1036, 1037 (1993). Signal Consumer Discount Company v. Babuscio, 257 Pa. Super 101, 109, 390 A.2d 266, 270 (1978). Pennsylvania Rule of Civil Procedure 1141(a). However, Pennsylvania law requires that the foreclosure action demand judgment for the amount due. Pa.R.C.P. 1147(6). The purpose of the dollar amount in the in rem judgment is only for bidding at the Sheriffs Sale. In the event that a third party real estate speculator were to bid on the mortgaged property at the Sheriffs Sale and become the successful purchaser, Plaintiff would receive the amount of the in rem judgment from the Sheriff, while the third party purchaser would obtain a deed to the property. Accordingly, the amount of the in rem judgment has no bearing or impact on the Defendant. IV. THE DATE THAT THE ASSIGNMENT OF MORTGAGE W Under the law of assignments, the assignee stands in the same shoes as the assignor. An assignment does not confer on the assignee any greater rights than those possessed by the assignor. Pennsylvania Higher Education Assistance v. Devore, 267 Pa. Super. 74, 406 A.2d 343, 344 (1979); U.S. Steel Homes Credit Corporation vs. South Store Development Corporation, 277 Pa. Super. 308, 419 A.2d 785 (1980). However, the assignee's rights are not inferior to those of the assignor. U.S. Steel Homes Credit Corporation v. South Shore Development Corporation, 277 Pa. Super. 308, 419 A.2d 785 (1980). In South Shore , the Court held that if an obligation is paid by an assignee, there is no reason in law that it should not have the same security that the assignor had, namely, the mortgage signed by South Shore Development Corporation. Id., at 312. Similar to South Shore, in the instant case, Plaintiff paid for the Assignment of Mortgage, and therefore, it has the same security that the original mortgagee had, namely, the mortgage signed by the Defendant. Accordingly, Plaintiff acquired the rights conferred by the Mortgage, including the right to foreclose in the event of default. In Industrial Packaging Products Co. v. Fort Pitt Packaging International Inc 399 Pa. 643, 161 A.2d 19 (1960), the Supreme Court of Pennsylvania held that the purpose of filing financial statements in the office of the Prothonotary of the county showing the debtor and the secured party and the type of property involved is to give notice to potential future creditors of the debtors or purchasers of the collateral. It makes no difference as far as such notice is concerned whether the secured parry listed in the filing statement is a principal or an agent. Similar to Industrial Packaging, when an assignment of mortgage is recorded, it is to give notice to potential future creditors or purchasers of the mortgage as to who the record owner of the mortgage is. It does not validate or invalidate the transaction. Plaintiff has attached the recorded Assignment of Mortgage as an Exhibit to its Motion. The Assignment itself specifically states: "The transfer of the mortgage and accompanying rights was effective at the time the loan was sold and consideration passed to the Assignee. The assignment is solely intended to describe the instrument sold in a manner sufficient to put third parties on public notice of what has been sold." The Federal Court has similarly held that an Assignment of Mortgage need not be recorded to confer rights on the Assignee. USA vs. Green. 1998 U.S. Dist. LEXIS 4821; 98-1 U.S. Tax Cas. (CCIT) P50, 348;•81 A.F.T.R.2d (RIA) 1838. Defendant's argument has already been rejected by the Court of Common Pleas of Philadelphia County. Deutsche Bank National Trust Company, et al. v. John B. Kelly and Ann M. Kelly, Defendants, 2007 Phila. Ct. Com. Pl. Lexis 136 (2002). In Kelly, supra, the Defendants argued that a Sheriff's sale should be set aside for the reason that the Recorder's office did not record the assignment to the Plaintiff until after the Complaint was filed. In Kelly, the Court ruled that any defect was cured by the filing of the assignment. The Court also ruled that the argument should have been raised in preliminary objections to the Complaint. The Court in Kelly did not find good cause to set aside the Sheriffs sale. Under the ruling in Kelly, the Defendant in this case have not presented the Court with any reason to deny Plaintiff s Motion for Summary Judgment Therefore, in the instant case, the transfer of the mortgage was effectuated upon transfer of the consideration, not upon the recording or execution of the Assignment document. Thus, Plaintiff was the legal owner of the mortgage and had the legal right to institute foreclosure proceedings against Defendant as a result of their failure to make the monthly payments. V. ATTORNEY FEES AND COSTS ARE REASONABLE As to the attorney fees recited in paragraph six (6) of the Complaint, it should be noted that paragraph twenty-two (22) of the Mortgage clearly indicates that Defendant is liable for an attorney fee, costs of suit, and costs of title evidence if Defendant defaults on the loan. The attorney fee claimed in Plaintiffs complaint is less than five percent (51/o) of the principal balance due on the loan. When Plaintiff was preparing its foreclosure Complaint, it could not know how much the attorney fees and costs would be upon completion of the foreclosure action. Plaintiff could not know whether the Defendant would contest the case and, if so, how extensively. Accordingly, Plaintiff used Pennsylvania case law as a guide. Attorney fees are enforced in order to compensate the Plaintiff for the reasonable and necessary expenses of collection. The Superior Court has held that it is inequitable for a mortgagee to expend sums of money for attorney fees in order to collect sums owed to him. Eastgate Enterprises Inc. v. Bank and Trust Company of Old York Road, 236 Pa.Super. 503, 345 A.2d 279 (1975). As a general rule, attorney fees, which are reasonable, will be permitted by the Court. A requested fee of five percent of the outstanding principal balance has been granted by the Court. Pennsylvania Courts have long and repeatedly concluded that such a 5% provision is reasonable and enforceable. Robinson v. Lobmis, 51 Pa. 78 (1865); First Federal Savings and Loan Association v. Street Road Shopping Center, 68 D&C 2d 751, 755 (1974). It is important to note that the attorney fees called for in the Mortgage are owned by the mortgagee, not the attorney. They are not limited to the actual attorney fees but cover also the extra charges made necessary because the mortgagor failed to meet his obligation. Foulke v. Hatfield Fair Grounds Bazaar, Inc., 196 Pa.Super. 155, 173 A.2d 703 (1961); Harper v. Consolidated Rubber Co., 284 Pa. 444,131 A. 356 (1925). In Federal Land Bank of Baltimore v. Fetner, the Superior Court held that an attorney fee of 10% of the original loan amount was not unconscionable. 410 A.2d 344 (Pa.Super. 1979). The Superior Court cited Fetner in confirming that an attorney fee of ten percent included in the judgment in a mortgage foreclosure action was reasonable. Citicorp v. Morrisville Hampton R ty, 662 A.2d 1120 (Pa.Super. 1995). Importantly, Plaintiff clearly outlined how Defendant could avoid paying Plaintiffs attorney fees in the Notice of Intention to Foreclose Mortgage, which was mailed to Defendant. Defendant, however, failed to take the necessary affirmative steps to cure the delinquency, but rather has opted to litigate, which has resulted in more attorney fees. Additionally, Plaintiff submits that the amount demanded for costs of suit and title search in Plaintiffs Complaint is neither excessive nor unreasonable. Moreover, the reasonableness of attorney fees does not create a genuine issue of material fact, which precludes the entry of summary judgment. First National Bank and Trust Co. of Newton v. Enrico, 40 D&C 3d 228 (1985). Importantly, Plaintiff recognizes this Honorable Court's equitable authority to set attorney fees and costs as it deems reasonable. Therefore, there is no issue of material fact regarding attorney fees. VI. PLAINTIFF'S MORTGAGE FORECLOSURE ACTION DOES NOT COME UNDER ACT 6 OF 1974 As averred in paragraph 9 of the Complaint, the notice provisions of Act 6 of 1974 do not apply to this case. Section 403(a) states: Before any residential mortgage lender may accelerate the maturity of any residential mortgage obligation, commence any legal action including mortgage foreclosure to recover under such obligation ... such person shall give the residential mortgage debtor notice of such intention at least thirty days in advance as provided in this section. (emphasis added.) 41 P.S. §403(a). Section 403(a) applies only to residential mortgages. Section 101 defines a residential mortgage as, "an obligation to pay a sum of money in an original bona fide principal amount of fifty thousand dollars ($50,000) or less ...". The Act 6 notice provision (§403) does not apply to the within case because the original loan amount exceeded $50,000.00. See Anderson Contracting Company v. Daugherty, 417 A.2d 1227 (Pa.Super. 1979). Nevertheless, it should be noted that Plaintiff sent Defendant notice of its intention to foreclose on the Mortgage, which outlined the necessary steps Defendant should take to avoid foreclosure. True and correct copies of the Notice of Intention to Foreclose Mortgage letters are attached hereto, incorporated herein by reference, and marked as Exhibit F. Because Defendant failed to take the necessary affirmative steps to bring the loan current, Plaintiff had no alternative but to commence foreclosure proceedings. VII. THE TEMPORARY STAY AS PROVIDED BY THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM, ACT 91 OF 1983, HAS TERNMATED The Temporary Stay pursuant to Act 91 of 1983 has terminated due to Defendant's failure to meet with Plaintiff or an authorized credit counseling agency in accordance with Plaintiffs written notice to Defendant. Trde and correct copies of the Notice of Homeowners' Emergency Mortgage Assistance Act of 1983 are attached hereto, incorporated herein by reference and marked as Exhibit F. Act 91 of 1983 requires that notice be sent by the mortgagee to the delinquent mortgagor by first class mail addressed to his fast known address. 35 P.S. § 1680.403c(a). The statute specifically provides that notice pursuant to the statute shall be deemed received on the third business day following the date of the mailing of the same. 35 P.S. § 1680.403c(e). The letter contained the name, address and telephone number of Plaintiffs representative, whom Defendant could have contacted to discuss the delinquency and the possibility of qualifying for emergency mortgage assistance. Notwithstanding the receipt of this information, Defendant failed to take action that would have resulted in a temporary stay of the proceedings. Because the homeowner failed to meet with an approved consumer credit counseling agency and file an application within the period specified, and failed to meet other time limitations under Act 91, the temporary stay under Act 91 of 1983 has expired. Plaintiff, therefore, has properly complied with Act 91 and is permitted to proceed with its foreclosure action. Additionally, Plaintiff submits that the Pennsylvania Housing Finance Agency would now consider the homeowner ineligible for assistance due to Defendant's failure to satisfy the procedural time requirements of Act 91 of 1983. VIII. DEFENDANT'S COUNTERCLAIM SHOULD BE DISMISSED Defendant filed a Counterclaim to Plaintiffs Complaint. However, the Counterclaim is inappropriate and should be dismissed. The Pennsylvania Superior Court has repeatedly held that a Counterclaim in a mortgage foreclosure action, which does not pertain to the creation of the Mortgage, must be dismissed. Cunningham v. McWilliams, 714 A.2d 1054. Chrysler First Business Credit Corp. v. Gourniak, 411 Pa.Super. 259,601 A.2d 338 (1992). Overly v. Kass, 382 Super, Ct. 108, 554 A.2d 970 (1989). Mellon Bank, N.A. v. Joseph, 267 Pa.Super. 307,406 A.2d 1055 (1979). Consumer Discount Co. v. Newton, 909 A.2d 811, 814, 2006 Pa. Super. 284,284 (Pa. Super. Oct 10, 2006) (counterclaims in a foreclosure must be related to its creation). These holdings are based on Pennsylvania Rule of Civil Procedure 1148. The Superior Court has held that this Rule must be interpreted narrowly. Goumiak, 601 A.2d at 341. The Superior Court has also held that, in a mortgage foreclosure action, a Counterclaim based on facts, which occurred after the default is certainly not based on facts pertaining to the creation of the Mortgage and must be dismissed. Gourniak, 601 A.2d at 342. Since Defendant's Counterclaim does not pertain to the creation of the loan, the Counterclaim should be dismissed. IX, CONCLUSION The purpose of the summary judgment procedure is to prevent vexation and delay, improve the machinery of justice, promote the expeditious disposition of cases and avoid unnecessary trials when no genuine issue of material fact is raised. In making its determination, the Court must accept as true all properly pleaded facts, as well as all reasonable inferences, which might be drawn from them. Thompson v. Nason, 379 Pa.Super. 115, 535 A.2d 1177 (1988), affirmed, 527 Pa.330, 591 A.2d 703 (1991). The Court must restrict its review to material filed in support of and in opposition to the Motion for Summary Judgment, and to uncontroverted allegations in the pleadings. Pa.R.C.P.1035. Overly v. Kass, 382 Pa.Super. 108, 545 A.2d 970 (1989). Plaintiff submits that it has demonstrated sufficient facts to warrant summary judgment in its favor. Defendant executed the Mortgage knowing that she would be responsible for the payments. Defendant has admitted the existence of the mortgage in her Answer to the Complaint. Plaintiff has provided an affidavit that Defendant is in default and set forth the amount owed by Defendant. Therefore, Plaintiff maintains that it has produced sufficient evidence to establish a prima facie case for mortgage foreclosure. Once Plaintiff has satisfied its burden, Defendant has a responsibility to demonstrate facts, which would create a genuine issue for trial. Phaff, supra. Defendant has failed to sustain her burden of presenting facts, which would contradict the elements of Plaintiffs claim. Plaintiff respectfully submits that the allegations of the Complaint are, in fact, uncontroverted. Defendant has had use of the Property rent-free at Plaintiffs expense long enough. Defendant's Answer has been interposed for the purpose of delay only. Plaintiff requests that its Motion be granted so that it can recover the unjust financial losses it has incurred to date. WHEREFORE, Plaintiff respectfully requests that an in rem judgment be entered in its favor for the amount due plus interest and costs as prayed for in the Complaint/Affidavit in support of the Motion for Summary Judgment, for foreclosure and sale of the mortgaged property. Respectfully submitted, PHELAN HALLINAN & SCHMIEG, LLP Date: S 12G 0 By: os h P. chalk, Esquire Att ey for Plaintiff PHELAN HALLINAN & SCHMIEG, LLP By: Joseph P. Schalk, ESQUIRE Identification No. 91656 107 N. Front Street Suite 115 Harrisburg, PA 17101 (215) 563-7000 First Horizon Home Loans, A Divison of First Tennessee Bank National Association 4000 Horizon Way Irving, TX 75063 Plaintiff vs. Rose Smith 331 F Street Carlisle, PA 17013-1346 Defendant Attorney for Plaintiff Court of Common Pleas Civil Division Cumberland County No.: 08-4574 CERTIFICATION OF SERVICE I hereby certify that true and correct copies of Plaintiffs Motion for Summary Judgment, copy of Brief in Support thereof, and original and two (2) copies of Praecipe for Argument and Order were sent via first class mail to the person on the date listed below: Lee E. Oesterling, Esquire 155 South Hanover Street Carlisle, PA 17013 Date: 512-7107 By: chalk, Esquire oeAtty . S for Plaintiff FILEE' ARY f?f1 ? PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Argument Court. CAPTION OF CASE First Horizon Home Loans, a Division of First Tennessee Bank National Association 4000 Horizon Way Irving, TX 75063 Plaintiff VS. Rose Smith 331 F. Street Carlisle, PA 17013-1346 No. 08 Civil 4574 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, etc.): Plaintiff's Motion for Summary Judgment 2. Identify counsel who will argue case: (a) for plaintiff. Joseph P. Schalk, Esquire Address:' 1617 John F. Kennedy Blvd., Suite 1400 Philadelphia, PA 19103 (b) for defendant: Lee Oesterling, Esquire Address: ' 155 South Hanover Street Carlisle, PA 17013 3. I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: July 22, 2009 May 26, 2009 Date: Att m for Plaintiff 14 t- + cA 2 3 0 9 1 •L,1 2 8 11%1 t 4 cu t?kA PHELAN HALLINAN & SCHMIEG, LLP By: Joseph P. Schalk, Esquire Atty. I.D. No.: 91656 126 Locust Street Harrisburg, PA 17101 (215) 563-7000 First Horizon Home Loans, A Divison of First Tennessee Bank National Association 4000 Horizon Way Irving, TX 75063 Plaintiff vs. Rose Smith 331 F Street Carlisle, PA 17013-1346 Defendant ATTORNEY FOR PLAINTIFF Court of Common Pleas Civil Division Cumberland County No.: 08-4574 PRAECIPE TO REMOVE HEARING FROM JULY 2009 ARGUMENT LIST TO THE PROTHONOTARY: Kindly remove the above-captioned matter from the July 2009 argument list. Defendant's counsel is in concurrence with Plaintiff's request to remove the oral argument from the argument list. Plaintiff's file is currently on hold due to loss mitigation. '1 3 0 Dat Jos> ph( 1. Schalk, Esquire Attrney for Plaintiff PHELAN HALLINAN & SCHMIEG, LLP By: Joseph P. Schalk, Esquire Atty. I.D. No.: 91656 126 Locust Street Harrisburg, PA 17101 (215) 563-7000 First Horizon Home Loans, A Divison of First Tennessee Bank National Association 4000 Horizon Way Irving, TX 75063 Plaintiff vs. Rose Smith 331 F Street Carlisle, PA 17013-1346 Defendant ATTORNEY FOR PLAINTIFF Court of Common Pleas Civil Division Cumberland County No.: 08-4574 CERTIFICATION OF SERVICE I hereby certify a true and correct copy of the foregoing Praecipe to Remove Hearing from July 2009 Argument List was served by regular mail on the following parties on the date listed below: Lee E. Oesterling, Esquire 155 South Hanover Street Carlisle, PA 17013 DATE: -7113105 ? AL rAtt os ph Schalk, Esquire rney for Plaintiff CC? FL it Tir 2009 J;ul 16) Fr` ??, _~ ~ ~' PHELAN HALLINAN & SCHMIEG, LLP BY: SHEETAL R. SHAH-JANI, ESQUIRE Identification No. 81760 One Penn Center at Suburban Station 1617 John F. Kennedy Boulevard, Suite 1400 Philadelphia, PA 19103-1814 (215) 563-7000 FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION 4000 HORIZON WAY IRVING, TX 75063 Plaintiff v. ROSE SMITH 331 F STREET CARLISLE, PA 17013-1346 Defendant TO THE PROTHONOTARY: ~Il.E~-' .' ~ .';~ ,z~ ~`r ~' ~^T,^.c~y 1='° _,~ 201 Q JllL 1 ~ F'i"112~ 2 Cli~d ~- ~ ' ~',~,v'T)' PRAECIPE ATTORNEY FOR PLAIN'l~fFi~ COURT OF COMMON PI.I:nS CIVIL DIVISION NO. 08-4574 CIVIL TERM CUMBERLAND COUNTY ® Please mark the above referenced case Discontinued and Ended without prejudi~c ^ Please mark the above referenced case Settled, Discontinued and Ended without prejudice. ^ Please mark Judgments satisfied and the Action settled, discontinued and ended without prejudice. ^ Please Vacate the judgment entered and mark the action discontinued and ended without prejudice. ^ Please withdraw the complaint and mark the action discontinued and ended without prejudice. Date: 3 ~ Sheetal R. Shah-J squire Attorney for Plaintiff PHS# 183214 t~ PHELAN HALLINAN & SCHMIEG, LLP BY: SHEETAL R. SHAH-JANI, ESQUIRE Identification No. 81760 One Penn Center at Suburban Station 1617 John F. Kennedy Boulevard, Suite 1400 Philadelphia, PA 19103-1814 (215) 563-7000 FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK NATIONAL ASSOCIATION 4000 HORIZON WAY IRVING, TX 75063 Plaintiff v. ROSE SMITH 331 F STREET CARLISLE, PA 17013-1346 Defendant ATTORNEY FOR PLAIN'I'll~!' COURT OF COMMON PI,I~.nS CIVIL DIVISION NO. 08-4574 CIVIL TERM CUMBERLAND COUN'T'Y CERTIFICATION OF SERVICE I hereby certify true and correct copies of the foregoing Plaintiffs Praecipe to mark the action Discontinued and Ended without prejudice was served by regular mail to the person on the date listed below: Lee E. Oesterling, Esquire 155 South Hanover Street Carlisle, PA 17013 Date: I a ~ '• By: Sheetal R. Shah-Jam, Esquire Attorney for Plaintiff PHS# 183214