HomeMy WebLinkAbout09-5604bj
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McCABE, WEISBERG AND CONWAY, P.C.
BY: TERRENCE J. McCABE, ESQUIRE - ID # 16496 Attorneys for Plaintiff
-MARC S. WEISBERG, ESQUIRE - ID # 17616
EDWARD D. CONWAY, ESQUIRE - ID # 34687
MARGARET GAIRO, ESQUIRE - ID # 34419
123 South Broad Street, Suite 2080
Philadelphia, Pennsylvania 19109
(215) 790-1010
Financial Freedom SFC
2900 Esperanza Crossing
Austin, Texas 78758
Cumberland County
Court of Common Pleas
Number 0, ri l m
v.
Janette L. Neely
512 Market Street
Millersburg, Pennsylvania 17061
CIVIL ACTION/MORTGAGE FORECLOSURE
NOTICE
You have been sued in court. If you wish to defend
against the claims set forth in the following pages, you
must take action within twenty (20) days after this
complaint and notice are served, by entering a written
appearance personally or by attorney and filing in
writing with the court your defenses or objections to the
claims set forth against you. You are warned that ifyou
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.
Cumberland County Bar Association
2 Liberty Avenue
Carlisle, Pennsylvania 17013
(800) 990-9108
AVISO
Le ban demandado a usted en la corte. Si usted quiere
defenderse de estas demandas ex-puestas en las paginas
siguientes, usted tiene veinte (20) dias de plazo al partir
de la fecha de la demanda y la notificacion. Hace falta
asentar una comparencia escrita o en persona o con un
abogado y entregar a la corte en forma escrita sus
defensas o sus objeciones a las demandas en contra de
su persona. Sea avisado que si usted no se defiende, la
corte tomara medidas y puede continuar la demanda en
contra suya sin previo aviso o notificacion. Ademas, la
corte puede decidir a favor del demandante y requiere
que usted cumpla con todas las provisions de esta
demanda. Usted puede perder dinero o sus propiedades
u otros derechos importantes para usted.
USTED LE DEBE TOMAR ESTE PAPEL A
SU ABOGADO INMEDIATAMENTE. SI USTED NO
TIENE A UN ABOGADO, VA A O TELEFONEA LA
OFICINA EXPUSO ABAJO. ESTA OFICINA LO
PUEDE PROPORCIONAR CON INFORMATION
ACERCA DE EMPLEAR A UN ABOGADO.
SI USTED NO PUEDE PROPORCIONAR
PARA EMPLEAR UN ABOGADO, ESTA OFICINA
PUEDE SER CAPAZ DE PROPORCIONARLO CON
INFORMACION ACERCA DE LAS AGENCIAS
QUE PUEDEN OFRECER LOS SERVICIOS
LEGALES A PERSONAS ELEGIBLES EN UN
HONORARIO REDUCIDO NI NINGUN
HONORARIO.
Cumberland County Bar Association
2 Liberty Avenue
Carlisle, Pennsylvania 17013
(800) 990-9108
CIVIL ACTION/MORTGAGE FORECLOSURE
Plaintiff is Financial Freedom SFC, a corporation duly organized and doing business at the
above captioned address.
2. The Defendant is Janette L. Neely, who is the mortgagor and real owner of the mortgaged
property hereinafter described, and his/her last-known address is 512 Market Street, Millersburg,
Pennsylvania 17061.
3. On November 23, 2007, mortgagor made, executed and delivered a mortgage upon the
premises hereinafter described to 1 st Preference Mortgage Corporation which mortgage is recorded in the
Office of the Recorder of Cumberland County in Mortgage Book Instrument #200800642.
4. On August 1, 2009, the aforesaid mortgage was thereafter assigned by 1st Preference
Mortgage Corporation to Financial Freedom Senior Funding Corporation, by Assignment of Mortgage,
recorded in the Office of the Recorder of Cumberland County in Assignment of Mortgage Book Instrument
#200800643.
5. The premises subject to said mortgage is described in the mortgage attached as Exhibit "A"
and is known as 59 North East Street, Carlisle, Pennsylvania 17013.
6. The mortgage is in default becausethe premises has ceased to be principal residence of the
Defendant.
7. The following amounts are due on the mortgage:
Principal Balance
Interest through August 10, 2009
(Plus $8.56 per diem thereafter)
Attorney's Fee
Late Charges
Escrow Advance
$ 147,733.92
$ 7,186.98
$ 1,300.00
$ 805.00
$ 5,172.91
GRAND TOTAL $ 162,198.81
8. Notice of Intention to Foreclose as required by Act 6 of 1974 (41 P.S. §403) and notice
required by the Emergency Mortgage Assistance Act of 1983 as amended under 12 PA Code Chapter 13, et
seq., commonly known as the Combined Notice of Delinquency has been sent to Defendant by regular mail
with a certificate of mailing and by certified mail, return receipt requested.
WHEREFORE, Plaintiff demands Judgment against the Defendant in the sum of $162,198.81,
together with interest at the rate of $8.56 per diem and other costs and charges collectible under the mortgage
and for the foreclosure and sale of the mortgaged property.
McCABE, WEISBERG AND CONWAY,P.C.
BY: l?
Attorneys for Plaintiff
TERRENCE J. McCABE, ESQUIRE
MARC S. WEISBERG, ESQUIRE
EDWARD D. CONWAY, ESQUIRE
MARGARET GAIRO, ESQUIRE
VERIFICATION
The undersigned attorney hereby certifies that he/she is the Attorney for the Plaintiff in the
within action, and that he/she is authorized to make this verification and that the foregoing facts based on
the information from the Plaintiff, who is not available to sign this, are true and correct to the best of
his/her knowledge, information and belief and further states that false statements herein are made subject
to the penalties of 18 PA.C.S. §4904 relating to unsworn falsification to authorities.
McCABE, WEISBERG AND CONWAY,P.C.
BY: ?/?' ? I L
Attorneys for Plaintiff
TERRENCE J. McCABE, ESQUIRE
MARC S. WEISBERG, ESQUIRE
EDWARD D. CONWAY, ESQUIRE
MARGARET GAIRO, ESQUIRE
This Document Prepared By:
1ST PREFERENCE MORTGAGE
CORPORATION
9423 BELAIR ROAD
BALTIMORE, MARYLAND 21236
When Recorded Mail To:
FINANCIAL FREEDOM SENIOR FUNDING
CORPORATION, A SUBSIDIARY QEINDYMAC
SQO P70RTH RIDG E 500
. O f7D3/oZL,
AT , ORGIA 30350 METROPOLITAN SETTLEMENT
E: 410-529-7300 1617 EAST MARKET ST.
Parcel No: Or? C FORK, PA 17403
??-.??
(Space Above This Line For Recording Data)
Commonwealth of Pennsylvania FHA Case No. 441-8014769-952/255
3000118471
ADJUSTABLE RATE OPEN-END
HOME EQUITY CONVERSION MORTGAGE
THIS MORTGAGE ("SECURITY INSTRUMENT") SECURES FUTURE ADVANCES
THIS MORTGAGE ("Security Instrument") is given on NOVEMBER 23, 2007 The mortgagor is
Janette L. Neely, a single person
whose address is 59 N EAST ST,
CARLISLE, PENNSYLVANIA 17013 ("Borrower").
This Security Instrument is given to
1ST PREFERENCE MORTGAGE CORPORATION
which is
organized and existing under the laws of THE STATE OF MARYLAND , and whose address is
9423 BELAIR ROAD, BALTIMORE, MARYLAND 21236
("Lender"). Borrower has agreed to repay to Lender
amounts which Lender is obligated to advance, including future advances, under the terms of a Home Equity
Conversion Loan Agreement dated the same date as this Security Instrument ("Loan Agreement"). The agreement
to repay is evidenced by Borrower's Note dated the same date as this Security Instrument ("Note"). This Security
Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest at a rate subject to
adjustment, and all renewals, extensions and modifications of the Note, up to a maximum principal amount of
TWO HUNDRED EIGHTY FIVE THOUSAND AND 00/100-----------------------------------
--------------------------------------------------------------------------------
(U.S. $ 285,000.00 ); (b) the payment of all other sums, with interest, advanced under Paragraph 5 to protect
the security of this Security Instrument or otherwise due under the terms of this Security Instrument; and (c) the
performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose,
Borrower does hereby mortgage, grant and convey to Lender the following described property located in
CUMBERLAND County, Pennsylvania:
W°: 09/06 °°' 111111111111111111111111111111111111111111111
F
Exhibit A , . . ? . .
ALL THAT CERTAIN tract of land with the improvements thereon erected
situate in the Borough of Carlisle, Cumberland County, Pennsylvania,
bounded and described as follows:
ON the Southeast corner of Louther and East Streets, bounded on the
North by East Louther Street; on the East by lot of formerly of Arthur
R. Ruppely; on the South by property formerly of George Guignet; and
on the West by North East Street; being 85 feet, more or less, in the
front on North East Street and extending in an even width 185 feet,
more or less, in depth to the property formerly of said Ruppley, be
the same more or less, and having thereon erected a two story stone
dwelling house and other buildings known as 59 North East Street,
Carlisle, PA 17013.
Property Parcel Number 02-21-0318-298
Legal Description Attached
which has the address of 59 N EAST ST
[Street]
CARLISLE PENNSYLVANIA 17013 ("Property Address");
[City] [State] [Zip Code]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights,
appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be
covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
mortgage, grant and convey the Property and that the Property is unencumbered. Borrower warrants and will defend
generally the title to the Property against all claims and demands, subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants
with limited variations by jurisdiction to constitute a uniform security instrument covering real property.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal and Interest. Borrower shall pay when due the principal of, and interest on, the
debt evidenced by the Note.
2. Payment of Property Charges. Borrower shall pay all property charges consisting of taxes, ground rents,
flood and hazard insurance premiums, and special assessments in a timely manner, and shall provide evidence of
payment to Lender, unless Lender pays property charges by withholding funds from monthly payments due to the
Borrower or by charging such payments to a line of credit as provided for in the Loan Agreement.
3. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire.
This insurance shall be maintained in the amounts, to the extent and for the periods required by Lender or the
Secretary of Housing and Urban Development ("Secretary"). Borrower shall also insure all improvements on the
Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the
Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any
renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to,
Lender.
In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make
payment for such loss to Lender instead of to Borrower and to Lender jointly. Insurance proceeds shall be applied to
restoration or repair of the damaged Property, if the restoration or repair is economically feasible and Lender's
security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be
"609/" °'" 1111111111111111111111111111111111111111111*11
lessened, the insurance proceeds shall be applied first to the reduction of any indebtedness under a Second Note and
Second Security Instrument held by the Secretary on the Property and then to the reduction of the indebtedness
under the Note and this Security Instrument. Any excess insurance proceeds over an amount required to pay all
outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled
thereto.
In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes
the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the
purchaser.
4. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
after the execution of this Security Instrument, and Borrower (or at least one Borrower, if initially more than one
person are Borrowers) shall continue to occupy the Property as Borrower's principal residence for the term of the
Security Instrument. "Principal residence" shall have the same meaning as in the Loan Agreement.
Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Property
to deteriorate, reasonable wear and tear excepted. Borrower shall also be in default if Borrower, during the loan
application process, gave materially false or inaccurate information or statements to Lender (or failed to provide
Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited
to, representations concerning Borrower's occupancy of the Property as a Principal residence. If this Security
Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title
to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
5. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay
these obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect
Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts
evidencing these payments. Borrower shall promptly discharge any lien which has priority over this Security
Instrument in the manner provided in Paragraph 12(c).
If Borrower fails to make these payments or the property charges required by Paragraph 2, or fails to perform any
other covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may
significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to
enforce laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property
and Lender's rights in the Property, including payment of taxes, hazard insurance and other items mentioned in
Paragraph 2.
To protect Lender's security in the Property, Lender shall advance and charge to Borrower all amounts due to the
Secretary for the Mortgage Insurance Premium as defined in the Loan Agreement as well as all sums due to the loan
servicer for servicing activities as defined in the Loan Agreement. Any amounts disbursed by Lender under this
Paragraph shall become an additional debt of Borrower as provided for in the Loan Agreement and shall be secured
by this Security Instrument.
6. Inspection. Lender or its agent may enter on, inspect or make appraisals of the Property in a reasonable
manner and at reasonable times provided that Lender shall give the Borrower notice prior to any inspection or
appraisal specifying a purpose for the inspection or appraisal which must be related to Lender's interest in the
Property. If the property is vacant or abandoned or the loan is in default, Lender may take reasonable action to
protect and preserve such vacant or abandoned Property without notice to the Borrower.
7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection
with any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation shall
be paid to Lender. The proceeds shall be applied first to the reduction of any indebtedness under a Second Note and
Second Security Instrument held by the Secretary on the Property, and then to the reduction of the indebtedness
under the Note and this Security Instrument. Any excess proceeds over an amount required to pay all outstanding
indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
°`270906 °°° IIIIIIIIIIIIIVIIIIIIIIIIIIIIIIIHNIIIIIIIII
8. Fees. Lender may collect fees and charges authorized by the Secretary.
9. Grounds for Acceleration of Debt.
(a) Due and Payable. Lender may require immediate payment in full of all sums secured by this Security
Instrument if.
(i) A Borrower dies and the Property is not the Principal residence of at least one surviving Borrower;
or
(ii) All of a Borrower's title in the Property (or his or her beneficial interest in a trust owning all or part
of the Property) is sold or otherwise transferred and no other Borrower retains title to the Property in fee
simple or retains a leasehold under a lease for less than 99 years which is renewable or a lease having a
remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest
Borrower or retains a life estate (or retaining a beneficial interest in a trust with such an interest in the
Property).
(b) Due and Payable with Secretary Approval. Lender may require immediate payment in full of all
sums secured by this Security Instrument, upon approval of the Secretary, if-
(i) The Property ceases to be the Principal residence of a Borrower for reasons other than death and the
Property is not the Principal residence of at least one other Borrower; or
(ii) For a period of longer than twelve (12) consecutive months, a Borrower fails to occupy the Property
because of physical or mental illness and the Property is not the Principal residence of at least one other
Borrower; or
(iii) An obligation of the Borrower under this Security Instrument is not performed.
(c) Notice to Lender. Borrower shall notify Lender whenever any of the events listed in this Paragraph
(a) (ii) or (b) occur.
(d) Notice to Secretary and Borrower. Lender shall notify the Secretary and Borrower whenever the
loan becomes due and payable under Paragraph 9 (a) (ii) or (b). Lender shall not have the right to
commence foreclosure until Borrower has had thirty (30) days after notice to either:
(i) Correct the matter which resulted in the Security Instrument coming due and payable; or
(ii) Pay the balance in fu 11; or
(iii) Sell the Property for the lesser of the balance or 95% of the appraised value and apply the net
proceeds of the sale toward the balance; or
(iv) Provide the Lender with a decd in lieu of foreclosure.
(e) Trusts. Conveyance of a Borrower's interest in the Property to a trust which meets the requirements of
the Secretary, or conveyance of a trust's interests in the Property to a Borrower, shall not be considered a
conveyance for purposes of this Paragraph 9. A trust shall not be considered an occupant or be considered
as having a principal residence for purposes of this Paragraph 9.
(f) Mortgage Not Insured. Borrower agrees that should this Security Instrument and the Note not be
eligible for insurance under the National Housing Act within SIXTY DAYS from the date
hereof, if permitted by applicable law Lender may, at its option, require immediate payment in full of all
sums secured by this Security Instrument. A written statement of any authorized agent of the Secretary
dated subsequent to SIXTY DAYS from the date hereof, declining to insure this Security
Instrument and the Note, shall be deemed conclusive proof of such ineligibility. Notwithstanding the
foregoing, this option may not be exercised by Lender when the unavailability of insurance is solely due to
Lender's failure to remit a mortgage insurance premium to the Secretary.
10. No Deficiency Judgments. Borrower shall have no personal liability for payment of the debt secured by
this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be
permitted to obtain a deficiency judgment against Borrower if the Security Instrument is foreclosed. If this Security
Instrument is assigned to the Secretary upon demand by the Secretary, Borrower shall not be liable for any
difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including
accrued interest, owed by Borrower at the time of the assignment.
11. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full.
This right applies even after foreclosure proceedings are instituted. To reinstate this Security Instrument, Borrower
"28 09/06 "' 111111111111111111111111111111111111111111111
shall correct the condition which resulted in the requirement for immediate payment in full. Foreclosure costs and
reasonable and customary attorneys' fees and expenses properly associated with the foreclosure proceeding shall be
added to the principal balance. Upon reinstatement by Borrower, this Security Instrument and the obligations that it
secures shall remain in effect as if Lender had not required immediate payment in full. However, Lender is not
required to permit reinstatement if. (i) Lender has accepted reinstatement after the commencement of foreclosure
proceedings within two years immediately preceding the commencement of a current foreclosure proceeding, (ii)
reinstatement will preclude foreclosure on different grounds in the future, or (iii) reinstatement will adversely affect
the priority of the Security Instrument.
12. Lien Status.
(a) Modification. Borrower agrees to extend this Security Instrument in accordance with this Paragraph
12(a). If Lender determines that the original lien status of the Security Instrument is jeopardized under
state law (including but not limited to situations where the amount secured by the Security Instrument
equals or exceeds the maximum principal amount stated or the maximum period under which loan
advances retain the same lien priority initially granted to loan advances has expired) and state law permits
the original lien status to be maintained for future loan advances through the execution and recordation of
one or more documents, then Lender shall obtain title evidence at Borrower's expense. If the title evidence
indicates that the Property is not encumbered by any liens (except this Security Instrument, the Second
Security Instrument described in Paragraph 13(a) and any subordinate liens that the Lender determines will
also be subordinate to any future loan advances), Lender shall request the Borrower to execute any
documents necessary to protect the lien status of future loan advances. Borrower agrees to execute such
documents. If state law does not permit the original lien status to be extended to future loan advances,
Borrower will be deemed to have failed to have performed an obligation under this Security Instrument.
(b) Tax Deferral Programs. Borrower shall not participate in a real estate tax deferral program, if any
liens created by the tax deferral are not subordinate to this Security Instrument.
(c) Prior Liens. Borrower shall promptly discharge any lien which has priority over this Security
Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a
manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the
lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or
forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to
Lender subordinating the lien to all amounts secured by this Security Instrument. If Lender determines that
any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender
may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the
actions set forth above within 10 days of the giving of notice.
13. Relationship to Second Security Instrument.
(a) Second Security Instrument. In order to secure payments which the Secretary may make to or on
behalf of Borrower pursuant to Section 255(i)(1)(A) of the National Housing Act and the Loan Agreement,
the Secretary has required Borrower to execute a Second Note and a Second Security Instrument on the
Property.
(b) Relationship of First and Second Security Instruments. Payments made by the Secretary shall not
be included in the debt under the Note unless:
(i) This Security Instrument is assigned to the Secretary; or
(ii) The Secretary accepts reimbursement by the Lender for all payments made by the Secretary.
If the circumstances described in (i) or (ii) occur, then all payments by the Secretary, including interest on
the payments, but excluding late charges paid by the Secretary, shall be included in the debt under the Note.
(c) Effect on Borrower. Where there is no assignment or reimbursement as described in (bxi) or (ii) and
the Secretary makes payments to Borrower, then Borrower shall not:
(i) Be required to pay amounts owed under the Note, or pay any rents and revenues of the Property
under Paragraph 19 to Lender or a receiver of the Property, until the Secretary has required payment in
full of all outstanding principal and accrued interest under the Second Note; or
BG29: 09/06 Page 5 111111111111111111111111111111111111111111111
(ii) Be obligated to pay interest or shared appreciation under the Note at any time, whether accrued
before or after the payments by the Secretary, and whether or not accrued interest has been included in
the principal balance under the Note.
(d) No Duty of the Secretary. The Secretary has no duty to Lender to enforce covenants of the Second
Security Instrument or to take actions to preserve the value of the Property, even though Lender may be
unable to collect amounts owed under the Note because of restrictions in this Paragraph 13.
14. Forbearance by Lender Not a Waiver. Any forbearance by Lender in exercising any right or remedy
shall not be a waiver of or preclude the exercise of any right or remedy.
15. Successors and Assigns Bound; Joint and Several Liability. The covenants and agreements of this
Security Instrument shall bind and benefit the successors and assigns of Lender. Borrower may not assign any
rights or obligations under this Security Instrument or under the Note, except to a trust that meets the requirements
of the Secretary. Borrower's covenants and agreements shall be joint and several.
16. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or
by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to
the Property Address or any other address all Borrowers jointly designate. Any notice to Lender shall be given by
first class mail to Lender's address stated herein or any address Lender designates by notice to Borrower, Any
notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when
given as provided in this Paragraph 16.
17. Governing Law; Severability. This Security Instrument shall be governed by Federal law and the law of
the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument
or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument
or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security
Instrument and the Note are declared to be severable.
18. Borrower's Copy. Borrower shall be given one conformed copy of the Note and this Security Instrument.
NON-UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
19. Assignment of Rents. Borrower unconditionally assigns and transfers to Lender all the rents and revenues
of the Property. Borrower authorizes Lender or Lender's agents to collect the rents and revenues and hereby directs
each tenant of the Property to pay the rents to Lender or Lender's agents. However, prior to Lender's notice to
Borrower of Borrower's breach of any covenant or agreement in the Security Instrument, Borrower shall collect and
receive all rents and revenues of the Property as trustee for the benefit of Lender and Borrower. This assignment of
rents constitutes an absolute assignment and not an assignment for additional security only.
If Lender gives notice of breach to Borrower: (a) all rents received by Borrower shall be held by Borrower as
trustee for benefit of Lender only, to be applied to the sums secured by this Security Instrument; (b) Lender shall be
entitled to collect and receive all of the rents of the Property; and (c) each tenant of the Property shall pay all rents
due and unpaid to Lender or Lender's agent on Lender's written demand to the tenant.
Borrower has not executed any prior assignment of the rents and has not and will not perform any act that would
prevent Lender from exercising its rights under this Paragraph 19.
Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice
of breach to Borrower. However, Lender or a judicially appointed receiver may do so at any time there is a breach.
Any application of rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This
assignment of rents of the Property shall terminate when the debt secured by this Security Instrument is paid in full.
20. Foreclosure Procedure. If Lender requires immediate payment in full under Paragraph 9, Lender
may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses
incurred in pursuing the remedies provided in this Paragraph 20, including, but not limited to, reasonable
attorneys' fees and costs of title evidence to the extent permitted by applicable law.
21. Lien Priority. The full amount secured by this Security Instrument shall have the same priority over any
other liens on the Property as if the full amount had been disbursed on the date the initial disbursement was made,
regardless of the actual date of any disbursement. The amount secured by this Security Instrument shall include all
direct payments by Lender to Borrower and all other loan advances permitted by this Security Instrument for any
purpose. This lien priority shall apply notwithstanding any State constitution, law or regulation, except that this lien
priority shall not affect the priority of any liens for unpaid State or local governmental unit special assessments or
taxes.
22. Adjustable Rate Feature. Under the Note, the initial stated interest rate of 4.5800 % which
accrues on the unpaid principal balance ("Initial Interest Rate") is subject to change, as described below, When the
interest rate changes, the new adjusted interest rate will be applied to the total outstanding principal balance. Each
adjustment to the interest rate will be based upon the weekly average yield on United States Treasury Securities
adjusted to a constant maturity of one year, as made available by the Federal Reserve Board in Statistical Release
H.15 (519) ("Index") plus a margin. If the Index is no longer available, Lender will use as a new Index any index
prescribed by the Secretary. Lender will give Borrower notice of the new Index.
Lender will perfonn the calculations described below to determine the new adjusted interest rate. The interest
rate may change on the first day of FEBRUARY, 2008 , and on ? that day of each succeeding year
0 the first day of each succeeding month ("Change Date") until the loan is repaid in full.
The value of the Index will be determined, using the most recent Index figure available thirty (30) days before the
Change Date ("Current Index"). Before each Change Date, the new interest rate will be calculated by adding a
margin to the Current Index. The sum of the margin plus the Current Index will be called the "Calculated Interest
Rate" for each Change Date. The Calculated Interest Rate will be compared to the interest rate in effect immediately
prior to the current Change Date (the "Existing Interest Rate").
? (Annually Adjusting Variable Rate Feature) The Calculated Interest Rate cannot be more than 2.0% higher
or lower than the Existing Interest Rate, nor can it be more than 5.0% higher or lower than the Initial Interest Rate.
g] (Monthly Adjusting Variable Rate Feature) The Calculated Interest Rate will never increase above
FOURTEEN AND 580/1000 percent (14.58000 %).
The Calculated Interest Rate will be adjusted if necessary to comply with these rate limitation(s) and will be in
effect until the next Change Date. At any Change Date, if the Calculated Interest Rate equals the Existing Interest
Rate, the interest rate will not change.
23. Release. Upon payment of all sums secured by this Security Instrument, this Security Instrument and the
estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge and satisfy this
Security Instrument without charge to Borrower. Borrower shall pay any recordation costs.
24. Waivers. Borrower to the extent permitted by applicable law, waives and releases any error or defects in
proceedings to enforce this Security Instrument, and hereby waives the benefit of any present or future laws
providing for stay of execution, extension of time, exemption from attachment, levy and sale, and homestead
exemption.
25. Reinstatement Period. Borrower's time to reinstate provided in Paragraph 11 shall extend to one hour
prior to the commencement of bidding at a sheriffs sale or other sale pursuant to this Security Instrument.
26. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to
acquire title to the Property, this Security Instrument shall be a purchase money mortgage.
27. Interest Rate After Judgment. Borrower agrees that the interest rate payable after a judgment is entered
on the Note or in an action of mortgage foreclosure shall be the rate payable from time to time under the Note.
28. Obligatory Loan Advances. Lender's responsibility to make Loan Advances under the terms of the Loan
Agreement, including Loan Advances of principal to Borrower as well as Loan Advances of interest, MIP, Servicing
Fees, and other charges shall be obligatory.
29. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded
together with this Security Instrument, the covenants of each such rider shall be incorporated into and shall amend
and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this
Security Instrument. [Check applicable box(es).]
? Condominium Rider ? Shared Appreciation Rider ? Planned Unit Development Rider
? Other (Specify)
°"' °."' "° 111111111111111111111111111111111111111111111
This is a contract under seal and may be enforced under 42 Pa.C.S. Section 5529(b).
BY SIGNING BELOW, Borrower accepts and agrees to the terms contained in this Security Instrument and in
any rider(s) executed by Borrower and recorded with it.
L NEEL
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
_(Sea))
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
BG'° 09107 '°' 111111111111111111111111111111111111111111111
(Space Below Yids Line For Acknowledgment)
COMMONWEALTH OF COUNTY SS:
On this, the R3 day of /-V0 Ve/W61A dDOb-e/fore me
the undersigned officer, pefsonally appeared
jgree- Z& L . Aged y
known to me (or satisfactorily proven) to be the person whose name ;S subscribed t e within instrument, and
acknowledged that Xke~ executed the same for the pu o therein contained.
IN WITNESS WHEREOF, I hereunto set my hand a an al seal.
1 1,
COMMONWEALTH OF PENNSYLVANIA
Notarial Seal
Cristy Peyton, -Nbtary Public
Rapho wp., Lanr_asterCounty
My COrnmisaon ?-xp rias March 2, 2011
Member, Pennsylraniz A;at:ciaticn of Notaries
Title of Officer
Certificate of Residence
I hereby certify that the correct address of the mortgagee is
1ST PREFERENCE MORTGAGE CORPORATION
9423 BELAIR ROAD
BALTIMORE, MARYLAND 21236
By:
?G
W3:09/06 "° 111111111111111111111111111111111111111111111
ROBERT P. ZIEGLER
RECORDER OF DEEDS
CUMBERLAND COUNTY
1 COURTHOUSE SQUARE
CARLISLE, PA 17013
717-240-6370
Instrument Number - 200800642
Recorded On 1/7/2008 At 1:30:54 PM
* Instrument Type - MORTGAGE
Invoice Number - 12033 User ID - RZ
* Mortgagor - NEELY, JANETTE L
* Mortgagee - 1ST PREFERENCE MORTGAGE CORP
* Customer - METROPOLITAN SETTLEMENT
* FEES
STATE WRIT TAX $0.50
STATE JCS/ACCESS TO $10.00
JUSTICE
RECORDING FEES - $23.50
RECORDER OF DEEDS
AFFORDABLE HOUSING $11.50
COUNTY ARCHIVES FEE $2.00
ROD ARCHIVES FEE $3.00
TOTAL PAID $50.50
*Total Pages - 11
Certification Page
DO NOT DETACH
This page is now part
of this legal document.
I Certify this to be recorded
in Cumberland County PA
j p cuye ,O
0
RECORDER O D DS
1760
* - Information denoted by an asterisk may change during
the verification process and may not be reflected on this page.
?imuii!iioi?im
Q
AT" 12 ?M1 i? ryJ
?iY
Sheriffs Office of Cumberland County
R Thomas Kline
Sheriff
Ronny R Anderson
Chief Deputy
Jody S Smith
Civil Process Sergeant
Edward L Schorpp
Solicitor
??«?ttr of 4:vrrrF?r?,???tA
OFFICE,',' 7-E °_rERIFF
1 ?
.- ^ "R
Financial Freedom SFC
vs.
Janette L. Neely
Case Number
2009-5604
SHERIFF'S RETURN OF SERVICE
08/13/2009 R. Thomas Kline, Sheriff who being duly sworn according to law states that he made a diligent search and
inquiry for the within named defendant, to wit: Janette L. Neely, but was unable to locate her in his
bailiwick. He therefore deputized the Sheriff of Dauphin County, PA to serve the within Complaint In
Mortgage Foreclosure according to law.
08/17/2009 09:21 AM - Dauphin County Return: And now August 17, 2009 at 0921 hours I, Jack Lotwick, Sheriff of
Dauphin County, Pennsylvania, do herby certify and return that I served a true copy of the within
Complaint in Mortgage Foreclosure, upon the within named defendant, to wit: Janette L. Neely by making
known unto Michelle Keystone, Guardian of Defendant, at 115 W. Broad Street Elizabethville,
PA 17023 its contents and at the same time handing to her personally the said true and correct copy of
the same.
08/27/2009 R. Thomas Kline, Sheriff, who being duly sworn according to law, states that he made a diligent search
and inquiry for the within named defendant to wit: Janette L. Neely, but was unable to locate her in his
bailiwick. He therefore returns the within Complaint in Mortgage Foreclosure as not found as to the
defendant Janette L. Neely. The Carlisle Postmaster has advised the defendant is not known at 59 North
East Street Carlisle, PA 17013. Request for service at this address is abandoned. No Trespassing Sign
is posted on property by PA State Constable. An exact address is not available.
SHERIFF COST: $47.40 SO ANSWERS,
August 27, 2009 R THOMAS KLIN , SHERIFF
Dale K. Ketner, Esquire
ID# 89302
Shaffer & Engle Law Offices
512 Market Street
Millersburg, PA 17061
717-692-2345 (T)
717-692-3554 (F)
Financial Freedom SFC,
Plaintiff
V.
Janette L. Neely,
Defendant
Cumberland County
Court of Common Pleas
No.: 09-5604 Civil Term
Mortgage Foreclosure
ANSWER TO PLAINTIFF'S COMPLAINT IN MORTGAGE FORECLOSURE
1. Admitted.
2. Admitted in part, denied in part. Admitted that Defendant is Janette L. Neely.
Denied that Defendant's address is 512 Market Street, Millersburg, Pennsylvania.
Defendant resides at Country Meadows of Hershey, 451 Sand Hill Road, Hershey, PA,
17033, and has a court appointed guardian, Keystone Guardianship Services, whose
address is PO Box 804, 115 W. Broad Street, Elizabethville, PA 17023.
3. Denied that this is a valid mortgage. Plaintiff states that mortgagor made,
executed and delivered a mortgage on November 23, 2007 for the premises the subject of
this Complaint. Defendant was adjudicated incapacitated by the Court of Cumberland
County and appointed Cumberland County Aging and Community Services as an
emergency plenary guardian on January 10, 2008. Keystone Guardianship Services was
then appointed Guardian of Defendant on March 5, 2008. Cumberland County Aging
and Community Services were already working on declaring Ms. Neely incapacited
weeks prior to issuance of the January 10, 2008, Order. Wherefore, Defendant lacked
capacity to contract on the date Plaintiff states the mortgage was made, which incapacity
renders the subject mortgage void. (See Exhibit 1; copy of Court Order).
4. Neither admitted nor denied. Defendant lacks knowledge of assignment in this
averment.
5. Admitted.
6. Admitted with clarification. Admitted that premises are not residence of
Defendant, as Defendant is in a nursing home. Defendant's Guardian has contacted
Plaintiff on several occasions, by phone and by correspondence to seek cooperation in
this matter with no assistance from Plaintiff.
7. Neither admitted or denied. Defendant's Guardian lacks knowledge of the
contracted amounts and has not been supplied documentation from Plaintiff.
8. Denied. Defendant's Guardian received a letter dated March 5, 2009 which stated
it was the Notice of Intent to Foreclose. Defendant's Guardian does not have a record of
having received the Act 6 Notice that provides information on the Homeowners
Emergency Mortgage Assistance Program (HEMAR).
WHEREFORE, Defendant's Guardian states that the mortgage is void.
ES NGLE LAW OFFICES
Dale K. Ketner, Esquire
Attorney for Keystone Guardianship Services
Court Appointed Guardian for Plaintiff
512 Market Street
Millersburg, PA 17061
VERIFICATION
I verify that the averments in this Answer to Mortgage Foreclosure are true and
correct. I understand that false statements herein are made subject to the penalties of 18
Pa. C.S. 4904, relating to unworn falsification to authorities.
Keystone Guardianship Services
Constance E. Stoneroid
Court Appointed Guardian for
Defendant Janette Neely
DATE: q/,3 10q
IN RE: JANETTE NEEI.Y IN THE COUNTY, PENNSYLVANIA
CUMBERLAND VANIA
21-08-0032 ORPHANS' COURT
ORDER QF_.QOU
AND NOW, this ay of March, 2008, this court having this date
appointed Keystone Guardianship Services NPC as plenary guardian of the person and
plenary guardian of the estate of Janette Neely, the order entered on January 10, 2008,
appointed Cumberland County Aging and Community Services as emergency plenary
guardian of the person and emergency plenary of the estate of Janette Neely, IS
VACATED AS OF THIS DATE.
By the C,gsh ,
Edgar B. Bayley, J.
Anthony L. DoLuce, Esquire 1
For the Area Agency on Aging
Roger Morgenthal, Esquire
For Janette Neely
• :sal ? ??
cr s a
• '? Ls i .• S .-CJ
A TRUE COPY FROM RECORD' „ ' r • • "=` ?" •' '
in Tesltimony wherof, I hereunW ' • .1; G,
a of my hand and the seal
of saki Court at Carlisle, PA
• ThNZ:jday o? .
A, 14
Clerk th®o phand Coutt
"Bff Cumbarlaad County
{ ''
ORDER OF COURT
AND NOW, this "--- day of March, 2008, following a hearing, IT IS
ORDERED:
(1) Janette Neely is adjudicated an incapacitated person in need of a plenary
guardian of her person and plenary guardian of her estate.
(2) Keystone Guardianship Services NPC is appointed plenary guardian of the
person of Janette Neely and plenary guardian of the estate of Janette Neely.
(3) Keystone Guardianship Services NPC shall be paid for its services in
accordance with its regular fee schedule.
(4) As guardian of the estate of Janette Neely, (1) Keystone Guardianship
Services NPC, may, without prior court approval, invade principal as necessary for
payment of expenses and debts, and (2) is authorized to enter into listing contracts for
the sale of real estate; however, court approval shall be required prior to signing of any
contract of sale.
(5) No party other than the guardian of the person shall have the right to remove
the incapacitated person from her residence at Arden Court, Harrisburg, Pennsylvania,
and no other party shall interfere with her care or otherwise disturb her peace and
tranquility. To ensure the security and well being of the incapacitated person,
representatives of Arden Court shall have the authority to use their discretion which may
include restriction of visits or other contact with the incapacitated person.
(6) Keystone Guardianship Services NPC shall comply with the reporting
requirements set forth in 20 Pa.C.S.A. Section 5521(c).
By thew ,
Edg 8. Bayley, J.
Anthony L. DeLuca, Esquire
For the Area Agency on Aging
Roger Morgenthal, Esquire
For Janette Neely
sal
FINANCIAL FREEDOM SFC,
Plaintiff
vs.
JANETTE L. NEELY,
Defendant
COURT OF COMMON PLEAS
CUMBERLAND COUNTY,
PENNSYLVANIA
NO. 09-5604 CIVIL TERM
MORTGAGE FORECLOSURE
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing Answer to Plaintiff's
Complaint in Mortgage Foreclosure was served by means of the United States mail, first class,
postage prepaid, upon the following:
McCABE, WEISBERG AND CONWAY, PC
Terrence J. McCabe, Esquire
Marc S. Weisberg, Esquire
Edward D. Conway, Esquire
Margaret Gairo, Esquire
123 South Broad Street, Suite 2080
Philadelphia, PA 19109
Dated: L- ?- O?
Melissa Wise, Paralegal to
Dale K. Ketner, Esq.
SHAFFER & ENGLE LAW OFFICES
512 Market Street
Millersburg, PA 17061
(717) 692-2345
FILM-OFFICE
OF THE PIR0 `HONOTAPY
2009 SEP -8 PM 1: 14
CO" 'INTY
PENNSYLVANIA