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HomeMy WebLinkAbout01-6518BOROUGH OF CARLISLE, Plaintiff AEGIS MORTGAGE CORPORATION, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01-~--/¢ CIVIL TERM ACTION TO QUIET TITLE' 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 Plaintiffs. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP: Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania 17013 Telephone (717) 249-3166 MARTSON DEARDORFF WILLIAMS & OTTO Edward L. Schorpp, Esquire PA ID No. 17495 Ten East High Street Carlisle, PA 17013 (717) 243-3341 Solicitor for Borough of Carlisle F 5FILESkDATAFILE\C, endoc.¢m~3046252_¢om 1 Created: 11/01/01 11:34:12AM R~viscd: 11/12/01 12:01:12 PM BOROUGH OF CARLISLE, Plaintiff AEGIS MORTGAGE CORPORATION, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 01- ~p,~/~(' CIVIL TERM ACTION TO QUIET TITLE COMPLAINT NOW COMES, the Plaintiff, Borough of Carlisle, by and through its Solicitor, Edward L. Schorpp, Esq., and files the within Complaint against Defendant: 1. The Borough of Carlisle (herein, the "Borough") is a political subdivision and municipal corporation organized and existing under the laws of the Commonwealth of Pennsylvania with principal offices at 53 West South Street, Carlisle, Cumberland County, Pennsylvania 17013. 2. Defendant, Aegis Mortgage Corporation (herein, "Aegis"), is a corporation organized and existing under the laws of the State of Oklahoma with a principal place of business at 11111 Wilcrest Green, Suite 250, Houston, Texas 77042. 3. At all times relevant herein, Aegis conducted business in Pennsylvania, and continues to conduct such business, through its broker, Atlantis Mortgage Company (herein, "Atlantis") which has offices at 3816 Walnut Street, Harrisburg, PA 17109. 4. The Court of Common Pleas of Cumberland County, Bayley, J., sitting in equity, issued an Amended Final Decree (herein, the "Decree") dated January 24, 2000 and entered at docket No. 1998-4145, which Decree, inter alia, appointed the Redevelopment Authority of the County of Cumberland as agent to bring eight improved properties owned by Robert H. Barrett (herein, "Barrett"), into compliance with the Borough BOCA Property Maintenance Code and Carlisle Historic District regulations; a copy of the Decree is attached hereto as Exhibit "A." 5. The Decree was a final adjudication in favor of the Borough under which it was awarded the relief specified therein according to its terms and provisions. 6. The within action concerns title to two improved properties which are encompassed by the Decree and which are situated at 29 South East Street and 35 South Bedford Street, both being within the Borough of Carlisle, Cumberland County, Pennsylvania; a copy of the deeds for each property being attached hereto and marked Exhibits "B" & "C," respectively. 7. At all times relevant hereto, the Decree was entered in the judgment index of Cumberland County, was constructive notice to Aegis and was readily discoverable upon a careful review of the public records. 8. In addition, on August 28, 2001, the Borough's Solicitor provided actual notice, both verbally and in writing, of the Decree to Tim Marsico, an employee of Atlantis, the mortgage broker and agent of Aegis. 9. Notwithstanding the communication of actual notice of the Decree to its agent and the constructive notice chargeable to it by the public records, Aegis proceeded to make two mortgage loans to Barrett secured by separate mortgages on each property described in Paragraph 6 above, which mortgages were dated September 4, 2001 and recorded in the Cumberland County Recorder of Deeds Office on September 6, 200 lin Mortgage Book 1732, Page 3763 (29 South East Street) and Mortgage Book 1732, Page 3786 (35 South Bedford Street); a copy of each mortgage is attached hereto as Exhibit "D." & "E," respectively. 10. At the time Aegis granted the loans and recorded the mortgages described in Paragraph 9, Barrett's properties at 29 South East Street and 35 South Bedford Street were in custodia legis, and by virtue of such status, the mortgage liens could not lawfully attach to the properties. 11. The Borough has made demand upon Aegis to recognize the invalidity of its mortgage liens, or to otherwise subordinate the same to the terms of the Decree, which demand Aegis has refused. 12. The suspect validity of the mortgage liens has adversely affected, and will continue to adversely affect, the relief granted to the Borough in the Decree, as well as the ability of the Redevelopment Authority of the County of Cumberland to borrow monies, and to secure repayment of the same, in order to perform its duties under the Decree, unless this Court orders appropriate relief. WHEREFORE the Borough respectfully requests this Honorable Court to enter judgrnent in its favor and against Aegis as follows: A. Ordering that the Defendant is barred from asserting any right, lien, title or interest in either property inconsistent with the interest of the Borough as set forth in the Decree; and B. Declaring the mortgage liens to be invalid and ordering Aegis, and in default thereof, the Recorder of Deeds of Cumberland County, to mark the same stricken and of no further force or effect; or, in the alternative, C. Declaring the mortgage liens to be inferior to the Decree and ordering Aegis, and in default thereof, the Recorder of Deeds of Cumberland County, to mark the same subordinate and inferior to the Decree; and D. To order such other relief as it deems appropriate under the circumstances. MARTSON DEARDORFF WILLIAMS & OTTO PA ID No. 17495 Ten East High Street Carlisle, PA 17013 (717) 243-3341 Solicitor for Borough of Carlisle BOROUGH OF CARLISLE, PLAINTIFF ROBERT H. BARRETT, DEFENDANT IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA · 98-4145 EQUITY TERM AMENDED FINAL DECREE day of January, 2000, the FINAL DECREE entered AND NOW, this on January 14, 2000, IS AMENDED: (1) A default judgment is entered in favor of plaintiff and against defendant. (2) Judgment in the amount of $12,302.48 is entered in favor of plaintiff and against defendant for attorneys' fees. (3) Defendant is enjoined from performing any repairs or alterations to any of his properties without (a) first receiving certificates of appropriateness and building permits for such work, and (b) the approval of this court to perform the work in lieu of it being performed by the hereinafter appointed agent. (4) The RedeVelopment Authority of the County of Cumberland is appointed agent to manage, for the purpose of bringing into compliance with Code and Historic District regulations, the following eight improved properties of defendant in the Borough of Carlisle: (1) 29 South East Street; (2) 35 South Bedford Street; (3) 37 South Bedford Street; (4) 122 East Liberty Avenue; (5) 25 North Be~lford Street; (6) 134 East High Street; (7) 136 East High Street; and (8) 138 East High Street. EXHIBIT "A" 98-4145 EQUITY TERM (5) The agent shall post security in the amount of $1.00 with the Prothonotary. (6) The following shall apply to the agent's performance of its duties: (a) it shall have joint possession and control of the eight improved properties and defendant shall not in any way interfere with or obstruct the agent or anyone acting under its direction in the performance of its duties; (b) for each property, it shall obtain two' private bids itemizing the cost of repairs necessary to bring it into compliance with all Code and Historic District regulations; (c) es the bids are received for each property, it shall forward both bids to defendant at his mailing address of 134 East High Street. Carlisle. PA 17013. by regular mail and also by certified mail. return receipt requested and restricted delivery; (d) defendant shall have fifteen days from receipt of the certified mail. or ten days from the date of its 'return by the postal service as "unclaimed' or Urefused," to deliver to the agent funds sufficient to pay for the amount of the lower bid; (e) upon receipt of such funds from defendant in the amount of the lower bid. it shall have the work performed; (f) should defendant fail to timely deliver such funds it may expend its own funds or it may arrange for financing for said work, and it may apply -2- 98-4145 EQUITY TERM to the court to order that a mortgage lien be placed on defendant's property having sufficient equity to provide-security for the debt incurred; (g) after completion of the workit shall send defendant by regular mail a statement of its costs; (h) should defendant default in making timely payment of the repairs and costs within fifteen days of such mailing, the agent shall apply for an order of court for authorization to sell such property under terms and conditions approved by the court, and for an award of its costs; (i) the costs can include: (1) any wages or other compensation of its staff and employees for time reasonably incurred in performing its duties; (2) invoices from any independent contractors retained to assist in the performance of its duties; (3) out-of-pocket expenses; (4) premiums for casualty and liability insurance for each property [unless defendant provides evidence of adequate coverages]; (5) any deductibles incurred in defending any claims arising out of the' perfo~,~ance of its duties; (6) any and all interest incurred by agent under its line of credit with Keystone Financial Bank or any other borrowing resulting from defendant's failure to make any payments in a timely manner; (7) any legal fees incurred by agent in the performance of its duties; and (8) any other reasonable costs; (j) should the proceeds of any sale exceed the cost of repairs and the agent's costs, the excess amount shall be retained and applied to repairs -3- 98-4145 EQUITY TERM to other properties; (k) in the event the agent obtains financing it may, with court approval, arrange to place a mortgage lien on the premises; (I) the above procedure shall be followed with respect to each successive property although the agent may perfo~in its duties concurrently on any of the eight properties; (m) the agent shall respect the rights of any tenants, and to the extent possible all work should be performed without disturbing their peaceable possession; (n) all tenants shall pay the agent all rent at the rate payable this date during the te~f[~ of the perfo~.ance of its duties, and the agent shall apply such rent to property repairs as authorized by this order;, (o) upon completion of its duties, the agent shall file an accounting with the Court as to all funds received and expenditures made; (p) any funds remaining with the agent at the time of such accounting shall be distributed to defendant; (q) defendant may file exceptions to the accounting; (r) the agent may seek a judgment against defendant for any deficiency in the amount paid for all repairs and all of its costs; (s) the agent may petition to amend this order if necessary or desirable to effectuate its purpose. -4- 98-4145 EQUITY TERM (7) Defendant shall within seven days of the date of this order provide keys for all properties to agent. (8) If defendant does not provide keys to the properties to agent, the agent may make forced entry into such property and change the locks. (9) Within seven days of the date of this Order, defendant shall provide to agent copies of all current written leases as well as copies of any casualty and liability policies in effect, which policies shall be amended to name agent as an additional insured thereunder. (10) Defendant shall hold agent harmless from any and all claims, costs, and expenses incurred by it in the proper performance of its duties. (11) Upon application of plaintiff, the Court will consider an award of any additional attorney fees incurred. (12) This court retains jurisdiction in equity for the enforcement of this order. Edward L. Schorpp, Esquire Solicitor for the Borough of Carlisle Robert H. Barrett, Pro se 134 East High Street Carlisle, PA 17013 :saa -5- ./ BETWEEN JOSEHI OTTO and' DIXIE L. OTTO, husband and wife, of the BOrouEh of Carlisle, C~nberland County, Pennaylvania, parties of the firat part, ........ and ROBERT 11. BARRECE ~o° '~° -.N GJ'a. tee : WI~ESSETH, theft in con$ideratlon o[ SXxty-flve ~lousa~ ($65,~.~) ............ ........................................................................ Dollars, t~ ~rough of C~rlisle, C~rlnnd Cowry. Pe~ylvania, ~ed and descrX~d as follows: ts the co.er of pro~rty now or fo~rly of Paul Sneer; thence in an easterly direction along t~ line of pro~rty now or fomrly of tM said Paul Sneer, a distance of 12~ feet 4 inches, ~re or leas, to pro~rty now or for~rly of ~orge C. Blosaer; t~nee in a southerly direction along said pro~rty of ~orge C. B~I~I<. ~lfe, by their deed dated ~y 9, 1991, and recorded in the Office of the Recorder of ~eds of C~}berl~ Co~1ty, Pemmylvanla, in ~ed ~ok C. Vol~m 35, ~ge herein. Cumb, Co. Pa. -fi'& FIeeIEsIaI, Tree.far T~ D~d I' ~, '~Amt 3 ~'" ~ o.J/'~ ~-f~A~, 3 2 ~' ~ .o~.. ~ c.~ co. oi,,. col Alt [OOi ~5 ~E 910 EXHIBIT "B" ~ MARSHALL G&Tr LEBO and DIXIE L. Las, his vi£e, of Carlisle. Cuuberland County. Pennsylvania. he.in desi~net~d u~ th(, G.fsI.A% Anb IOBErr H, BARIKTT, single man. of Carlisle, Cumberland County, Pennsylvania, herein d~'sitln, ted ,s the atit#~ilft~, tA~t the Grusto~, /or sad ie cosf~derutio~ o~' FovCy-fLve ~oueand ~ree Hundred a~ no/lO0 DoZ~aro ($~5,300.00) ........................... . ......... lawlor money ~ the Unit~ ~tat~s ora me~ to the ~ntors at or ~o~ the s~li~g and deli~ of these p~ts, the ~ipt u,~e~ff' is herebg m'kno.'h~lt~l .nd the Gm. tom ~g them~th Jhllg ~ti~'~ do b~ these p~se~ts ymnt, ~.~in, re,Il .nd ('.n,~,y .mt. th(, All chat certain t~wt or tmrcel ~' &nd and p~'m~(,s, situ, te. lyin~ ,nd Second ~ard ~' the Borough of Carlisle i. Cumberland und ~m monw~dth ¢~ Penns~lvasia. mo~ part~s~rl~ desc~bed os/~llows: OH the North by Liberty Alley; on the Rast by ~and now or formerly of Robert Thompson; on the South by land now or formerly of John B. Station 8nd ~lllian H. G. Seetem; on the West by South Bedford Street, and fronting 30 feet au said South Bedford Street and extending back preserving an equal width 120 feec to land now or formerly of said Robert Thompson. BEING improved with a two and one-half s~ory brick dwelling house wi~h ~wo car garage known as 35 South Bedford S~reet, Carlisle, Pennsylvania. SUBJECT, HOWEVER, to a right-of-way across the rear of said lot as reserved in prior deeds. BEING the same property which Michael Paul Scott and Judith A. Scott by Deed dated June 21, 1977 and recorded in ~he Office of the Recorder of Deeds in and for Cumberland County in Deed Book 'G", Volume 27, Page 78, granted and conveyed unto Harshall Gary Lebo and Julia A. Labs. Julia A. Lebo died December 9, 1983 thereby vesting her entire estate in her husband, Harshall Gary Labs, one of ~he Grantors herein. Dixie L. Labs is incleded hereby to convey any inCeres~ she may have acquired in the property by virtue of marriage ~o Marshall Gary Labs. School Dist. Cumb. Co.. Po. EXHIBIT "C" Loan No: Borrowcr: ROBF~T H Tax Parcel Idantifieation Number: 03-21-0320-0 Data ID:. 486 Return to: AEGIS MORTGAGE CORPORATION ATI'UN]]ON: WHOLF_~ALE CLOSING P.O. BOX 84308 BATON ROUGE, LA 70884 [SpaGe Above Thkl Line Fo~ ReGMdlng Oat~ MORTGAGE MIN: 100014705271001626 DEFINITIONS Words used in multiple soctiom of this document are defined below and othcr words arc defined in Sectiom 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated September 4, 2001, togatber with all Riders to this document. (B) "B~ is ROBERT H BARRETT, A SINGLE MAN. Borrower is the mortgagor under this Securit~ Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely us a nominee for Lender and Lender's successors and assigns. MEltS is the mortgagee under this Seenrity Instrmment. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-1vIERS. (D) "Lenders* is AEOIS MORTGAGE CORPORATION. Lender is A CORPORATION organized and cy~ting .under the laws of thc State of OIO.AHOMA. Lender's address is 11111 WILCREST GREEN, SUITE 250, HOUSTON TX 77042. (E) "Neten means the promissory note signed by Borrower and dated September 4, 2001. The Note states that Borrowel'-'-'-'owes Lender SEVENTY-FIVE THOUSAND SIX HUNDRED nmi NO/100----.Dollars (U.S. $ ?5,600.00) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay thc debt in full not later than October 1, 2031. PENNSYLVANIA - Single Family - MODIFIED Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3039 1/01 (P~De I o~ 19 Pages) t llllll IIIll Illll Ill IllU Ill Ill IIIll Ilil Il{ Ill Ill Iii illll Illlllll Illl IIII 05~'0210016201 ;~ 732?§3786 EXHIBIT "D" Loan No: 052702100162 Data H): 486 (P) "RESPA" means the Real F.~tate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from tioic to time, Or ally additional or successor legislation or regulation that governs the same subject-mattel'. As used in this Securily Instrument, "RESPA" refers to all tequirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if thc Loan docs not qualify as a "federally related mortgage loan" under RESPA. (O) "Successor in Interest of Borrower" means any party that has taken title to the Propur_ty, whathc~ or not that party has assumed Borrower's obligations under the Note and/or this Sccttrtty Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender:. (i) the repayment of thc,Loan, and all r.encwais, cxtnnsio?s and modifications of thc Note; and (ii) the performance of Borrower s covenants an(t a~recmeats unocr this Security Instrument and thc Note. For this purpose, Borrower does hereby mortgage, grant and convey to 1VIERS (solely as nominee for Lender and Lender's successor{ and assigus) and to the successors and assigns of MERS the following described property located in thc County of CUlVlBERLAND: SEE LEOAL DESCRIPTION A'I'I'ACHED HERETO AND MADE A PART HEREOF which currently has the address of 35 S BEDFORD ST, [su~q ~Cc~LIS LE, PENNSYLVANIA_ =.-- [;Up17013Cod,{ ("Property Address"): TOOETHER ~ all the improvements now or hercaftur erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. Ali of the foregoing is referred to in this Security Instrument a~ thc "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, IVlERS (as nominee for Lender and Lender's successors and assists) has the right: to exercise any or ali of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasJn§ and canceling this Security Instrument. PENNSYLVANIA - single Family - MODIFIED F~nnie Mae/Freddie Ma~ UNIFORM INSTRUMENT Form 3039 1/Ol (P~ge 3 of 19 Pages) BI( I 7327t 3788 DEEDS rl~ 3 ql Loan No: 052'/02100164 Borrower: ROBF-RT H. BARRETT Tax Parcel Iclentific~tion Nunlb~,: Dam ID: 346 Return.to: AEGIS MORTGAGE CORPORATION ~rl~mqTION: WHOLESALE CLOSING P,O. BOX 84308 MORTGAGE MIN: 100014705271001642 DEFINITIONS Words used in multiple sections of this document a~ dcfincd below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of word~ used in ~his docume~! are also provided in Section 16. (A} "Secnrity instr~mene' means this document, which is daled September 4, 2001, together with all an aad~ss and telephone number of P.O. Box 2026, Flint, MI 48501-2(~..6, teL (8~8) 6?9-MF. RS. PENNSYLVANIA - Si~l. r~,.l~ - MOOmlE~ Fs~I. IIa/Fm~lI~ ~ IJI, IIFOFII,I INs'mUMENT BKI732PC3763 EXHIBIT "E" Datn ID: 346 Loan No: 052'~02100164 ....... c.ttlcmcnt proc~lurcs ~ (12 U.S.C ~1 ~t ~.) ~nd '-' ~n ~on ~ht~n X (~ ~F.~. r~ ~ ~hc ~mc sublet matt~. in re~ m a "~e~ly r~t~ ~rt~ I~n" ~n · thc ~n dm not q~lt~ u a ~a ly ~t~ mort~ I~* u~ ~S~ OF ~G~ ~ ~E ' ~t~ent ~ m ~r: (i) ~e re~t of the ~n, ~d all ~n~, ~ ~ l~nt s~ ~ Nol~ ~r ~ Pm~-'s su~ and m~) and to ~n~ m ~ (~ ~ ~ f~ ~a~r ~ ~ .... ~t~ ~ thc ~un~ of ~D: SEE LEO~ D~CRI~ON A~ACHED ~R~ ~ ~E A P~ HEREOF which currentl,/h~ the addre~ of 29 S EAST ST, TOGETHER ~ aH thc imp~men~ ~ or hcr~ c~ ~ ~e p~, a~ ~i ..... aonu~e~ ~ ~tu~ now or he~n~ a.~ ...... ~f~-~o ~ refe~ to ~ t~ ~n~g ~ ~ ImPeL 8KI73ZP~3765 _VERIFICATION. I, Frederick Bean, Borough Manager of the Borough of Carlisle, Cumberland County, Pennsylvania, acknowledge that I have the authority to execute this Verification on behalf of the Borough of Carlisle and certify that the foregoing Complaint is based upon information which has been gathered by my counsel in the preparation of this lawsuit. The language of this Complaint is that of counsel and not my own. I have read the document and to the extent that this Complaint is based upon information which I have given to my counsel, it is true and correct and to the best of my knowledge, information and belief. To the extent that the content of this Complaint is that of counsel, I have relied upon counsel in making this Verification. This statement and Verification are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities, which provides that if I knowingly make false averments, I may be subject to criminal penalties. Frederick Bean Borough Manager Dated: F:\FiLE SkDATAFILE\Gendoc.cur~3046252 -eom I BOROUGH OF CARLISLE, Plaintiff, V. AEGIS MORTGAGE CORPORATION, Defendant. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA No. 01-6518 CIVIL TERM STIPULATION The parties, by and through their counsel, hereby STIPULATE and AGREE as follows: WHEREAS, on November 16, 2001, the Borough of Carlisle ("Borough") filed a complaint seeking to quiet title to two properties: 35 South Bedford Street, Carlisle, Pennsylvania and 29 South East Street, Carlisle, Pennsylvania (collectively, the "Properties"); and WHEREAS, the Borough alleged in the complaint that the Properties are subject to this Court's Amended Final Equity Decree dated January 24, 2000 ("Decree"); WHEREAS, the Borough further alleged in the complaint that, by reason of the Decree, the Properties were not subject to the attachment of liens or, alternatively, the mortgages held by AEGIS on each of the Properties ("Mortgages") are subordinate and inferior to the Decree; and WHEREAS, the Borough and AEGIS have entered into a Mortgage Subordination Agreement with respect to each of the Properties; and WHEREAS, the Borough and AEGIS each desire, as set forth herein, to compromise and settle this action as follows: 1. AEGIS's liens on each of the Properties did attach to the Properties, but are subordinate to the terms and conditions of the Decree, including any liens to be entered by the Court for monetary amounts owing by the mortgagor for repairs, costs, expenses, and other matters relating to the Properties. 2. Any liens to be entered by the Court for monetary amounts owing by the mortgagor for repairs, costs, expenses, and other matters relating to the Properties shall attach only to the Property or Properties for which the repair or other costs were incurred. No liens may attach to the Properties for repair or other costs incurred in connection with the other six (6) properties governed by the Decree that are not the subject of this Consent Order or the Subordination Agreement. 3. AEGIS's Mortgages are valid mortgages which may be enforced as if the Decree had never been entered; provided, however, that any lien arising under the Decree shall be considered superior and considered prior in time to the lien of AEGIS' Mortgages, as if such lien or liens had been entered and recorded before AEGIS's Mortgages were recorded, and provided further that any buyer at a foreclosure or other judicial sale shall take the property subject to the terms of the Decree. 4. This action is hereby dismissed with prejudice. [SIGNATURE BLOCKS APPEAR ON THE NEXT PAGE] -2- AGREED TO BY THE PARTIES: Kevin M. Toth PA ID No. 82769 REED SMITH LLP 1650 Market Street 2500 One Liberty Place Philadelphia, PA 19103 (215) 851-8100 Counsel for Defendant AEGIS Mortgage Corporation Edward L. Schorpp PA ID No. 17495 MARTSON DEARDORFF WILLIAMS & OTTO 10 East High Street Carlisle, PA 17013 (717) 243-3341 Solicitor for Borough of Carlisle -3- BOROUGH OF CARLISLE, Plaintiff, V. AEGIS MORTGAGE CORPORATION, Defendant. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA No. 01-6518 CIVIL TERM ORDER AND NOW, this l~ day of ~ ,2002, it is hereby ORDERED and ADJUDGED that the Stipulation by and between counsel for the parties attached hereto is hereby APPROVED, and this case is hereby dismissed, with prejudice.