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HomeMy WebLinkAbout09-56051 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANK/HARRISBURG, No. d?I' S2?GS T/DB/A METRO BANK, Plaintiff vs. WILLIAM J. KALDES and STEPHANIE M. KALDES and THE UNITED STATES OF AMERICA, b vi / 7-n 7 Action in Mortgage Foreclosure Defendants NOTICE TO DEFEND You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. YOU MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORTANT TO YOU. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 Telephone: 717-249-3166 or 1-800-990-9108 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANK/HARRISBURG T/DB/A : METRO BANK, Plaintiff NO.: O-SG65 &,;?d u VS. WILLIAM J. KALDES and STEPHANIE M KALDES and THE UNITED STATES OF AMERICA, Action in Mortgage Foreclosure Defendants COMPLAINT 1. The PLAINTIFF is COMMERCE BANK/HARRISBURG T/DB/A METRO BANK, a state banking association, having a principal place of business at 3801 Paxton Street, Harrisburg, Dauphin County, Commonwealth of Pennsylvania 17111 and formerly known as COMMERCE BANK/HARRISBURG, N.A. and hereinafter sometimes referred to as "Plaintiff'. 2. The DEFENDANTS are: A. WILLIAM J. KALDES and STEPHANIE M. KALDES, being an adult male and female individual respectively, being husband and wife, and residing at 5908 Stephens Crossing, Mechanicsburg, Hampden Township, Cumberland County, Commonwealth of Pennsylvania 17055 and hereinafter sometimes referred to jointly, severally, individually and collectively as "Defendants"; and B. UNITED STATES OF AMERICA. While the Defendant is the UNITED STATES OF AMERICA, facts giving rising to the naming of the United States of America as a Defendant involve the Department of Treasury, Internal Revenue Service. 3. On or about April 24, 2006, the Bank loaned to Defendants the sum of $542,500.00. 4. To evidence the loan made on or about April 24, 2006 of $542,500.00 by the Bank to Defendants, on or about April 24, 2006, Defendants, as obligors, executed in favor of Bank, as oblige, a "Balloon Note" for $542,500.00, a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference thereto. 5. To secure and to collateralize the liability of Defendants to Bank on account of the "Balloon Note" (Exhibit "A"), on April 24, 2006, Defendants, as mortgagors, executed a "Mortgage" for $542,500.00 in favor of Bank, as mortgagee, which was recorded in the Recorder of Deeds Office for Cumberland County, Pennsylvania on May 3, 2006 in Record Book 1949, Page 1604 and which granted to Bank a lien against real estate and improvements to be erected known and numbered as 5908 Stephens Crossing, Hampden Township, Mechanicsburg, Cumberland County, Pennsylvania UPI # 10-19-1604-366. 6. Attached hereto, marked Exhibit "B" and incorporated herein by reference is a true and correct copy of the "Mortgage" referred to in Averment 5 hereof . 7. The "Mortgage" (Exhibit "B") covers and is a lien on the real estate and improvements of the Defendants known and numbered as 5908 Stephens Crossing, Hampden Township, Mechanicsburg, Cumberland County, Pennsylvania UPI #.10-19-1604-366 ("Premises"). The Defendants are the mortgagors under the "Mortgage" (Exhibit "B"). 9. Attached hereto, marked Exhibit "C" is a true and correct copy of the description to Premises referred to in Averment 9 hereof. 10. The Defendants own the real estate and improvements described in Exhibit "C" in fee simple and the property described in Exhibit "C" constitutes the residence of the Defendants. 11. On or about June 29, 2006, Bank and Defendants entered into a "Promissory Note Modification Agreement", a copy of which is attached hereto, marked Exhibit "D" and incorporated herein by reference thereto, which increased the original monthly payment amount for principal, interest and escrow from $3,980.67 to S 4,013.19. 12. On or about May 18, 2007, Bank and Defendants entered into a second "Promissory Note Modification Agreement" which lowered the interest rate from 8% to 7.25% and which increased the amortization period to thirty (30) years. Attached hereto, marked Exhibit "E" and incorporated hereby reference thereto is a true and correct copy of the "Promissory Note Modification Agreement" dated May 18, 2007 so that the monthly mortgage payments of principal, interest and escrow amounts were reduced from $4,013.19 to $3,602.56. 13. The "Balloon Note" (Exhibit "A"), "Promissory Note Modification Agreement" (Exhibit "D"), the "Promissory Note Modification Agreement" (Exhibit "E") and the "Mortgage" (Exhibit "B") have not been assigned by the Plaintiff and the Plaintiff is the holder of the Balloon Note" (Exhibit "A"), "Promissory Note Modification Agreement" (Exhibit "D"), "Promissory Note Modification Agreement" (Exhibit "B") and the "Mortgage" (Exhibit "B") and is the real party in interest. 14. Pursuant to the terms of the "Balloon Note" ("Exhibit "A"), as amended and modified by the "Promissory Note Modification Agreement" (Exhibit "D") and "Promissory Note Modification Agreement" (Exhibit `B), the Defendants were to pay monthly payments of principal, interest and escrow amounts of $3,602.50. However, Defendants did not make full monthly payments of principal, interest and escrow amounts of $3,602.50 for the months of May, June and July of 2009. 2 15. As a result of the non-payment of the monthly payments of principal, interest and escrow amounts of $3,602.50 for the months of May, June and July of 2009 and pursuant to Banks rights and in accordance with the requirements of the "Balloon Note" ("Exhibit "A"), as amended and modified by the "Promissory Note Modification Agreement" (Exhibit "D") and "Promissory Note Modification Agreement" (Exhibit "E), and "Mortgage" (Exhibit "B") on July 2, 2009 Bank dispatched a communication to Defendants announcing a default, providing 30 days from the date of the letter to cure the default ("cure period") and announcing that if the default is not cured within the cure period, Bank would declare all sums due on the "Balloon Note" ("Exhibit "A"), as amended and modified by the "Promissory Note Modification Agreement" (Exhibit "D") and "Promissory Note Modification Agreement" (Exhibit `B), and "Mortgage" (Exhibit "B") to become due and payable in full. Attached hereto and marked as Exhibit "17" and incorporated herein by reference thereto is a true and correct copy of the communication dated July 2, 2009 sent to Defendants. 16. Defendants did not pay monthly payments of principal, interest and escrow amounts of $3,602.50 for the months of May, June and July of 2009. 17 As a result of the failure of Defendants to cure the default set forth in Averment 15 within the cure period, on August 3, 2009, Bank dispatched a written notice to Defendants declaring all amounts due Bank by Defendants on account of the "Balloon Note" ("Exhibit "A"), as amended and modified by the "Promissory Note Modification Agreement" (Exhibit "D") and "Promissory Note Modification Agreement" (Exhibit `B), and "Mortgage" (Exhibit "B") attached 15. As alleged in Averment 14, hereof, the Defendants are in default of the terms and provisions of the "Balloon Note" ("Exhibit "A"), as amended and modified by the "Promissory Note Modification Agreement" (Exhibit "D") and "Promissory Note Modification Agreement" (Exhibit `B"), and the `Mortgage" (Exhibit "B"). 16. As of August 12, 2009, the following amounts are owed by the Defendants to the Plaintiff on account of Balloon Note" ("Exhibit "A"), as amended and modified by the "Promissory Note Modification Agreement" (Exhibit "D") and "Promissory Note Modification Agreement" (Exhibit "E"), and the `Mortgage" (Exhibit `B").: PRINCIPAL $442,723.99 INTEREST $8,636.25 LATE CHARGES 615.71 TOTAL $451,975.95 17. The Defendants are not in the military service. 18. In addition to the amounts listed and set forth in Averment 16 of this Complaint, the Plaintiff is entitled to reasonable attorneys' fees for the prosecution of this lawsuit with the amount claimed by the Plaintiff being 5% of the principal balance of $442,723.99 with the amount of fees requested being $22,136.20. 19. The amount of attorneys' fees requested in Averment 18 is fair and reasonable. 20. Plaintiff has complied with the requirements and mandates of Act 91 [35 P.S. 1680.401(c)] of the 1983 Session of the General Assembly of the Commonwealth of Pennsylvania by mailing to the Defendant, a notice required under Section 403-C of Act 91 to the Defendant by certified mail, return receipt requested, postage prepaid by depositing the said notice in the United States Post Office in Harrisburg, Pennsylvania addressed to the Defendants at the address set forth in Averment 2 of this Complaint, copies of which is attached hereto, marked Exhibit "F" and incorporated herein by reference thereto. FACTS INVOLVING THE UNITED STATES GOVERNMENT 21. On the following dates, the Department of the Treasury, Internal Revenue Service filed "Notices of Federal Tax Lien" in the Office of the Prothonotary of Cumberland County, Pennsylvania for the following amounts against the following defendants: A. 2008-1077 2/19/2008 $28,390.65 William J. Kaldes B. 2008-3588 6/16/2008 $17,181.45 William J. Kaldes C. 2008-3589 6/16/2008 $31,147.27 William J. and Stephanie M. Kaldes 22. Attached hereto, marked Exhibit "G" and incorporated herein by reference is a true and correct copies of the "Notices of Federal Tax Lied" referred to in Averment 21 hereof. 23. The real estate and improvements situate at and known and numbered as 5908 Stephens Crossing, Hampden Township, Mechanicsburg, Cumberland County, Pennsylvania and described in Exhibit "C" is subject to the Mortgage in favor of Bank referred to in Averment 5 hereof which is prior to the tax liens in favor of The United States Government referred to in Averment 22 hereof. 24. This Complaint is filed pursuant to 28 U.S.C.S. 2410 which provides as follows: (a) Under the conditions prescribed in this section and section 1444 of this title L28 USCS ¢ 1444 for the protection of the United States, the United States may be named a party in any civil action or suit in any district court, or in any State court having jurisdiction of the subject matter-- (1) to quiet title to, (2) to foreclose a mortgage or other lien upon, (3) to partition, (4) to condemn, or (S) of interpleader or in the nature of interpleader with respect to, (c) A judgment or decree in such action or suit shall have the same effect respecting the discharge of the propertyfrom the mortgage or other lien held by the United States as may be provided with respect to such matters by the local law of the place where the court is situated. However, an action to foreclose a mortgage or other lien, naming the United States as a party under this section, must seek judicial sale. WHEREFORE, the PLAINTIFF, COMMERCE BANK/HARRISBURG T/DB/A METRO BANK, prays Your Honorable Court for a judgment in favor of the PLAINTIFF, COMMERCE BANK/HARRISBURG T/DB/A METRO BANK, and against the DEFENDANTS, WILLIAM J. KALDES and STEPHANIE M. KALDES, and THE UNITED STATES GOVERNMENT for: 4 A. Foreclosure, execution and sale of the real estate and improvements known ad 5908 Stephens Crossing, Hampden Township, Mechanicsburg, Cumberland County, Pennsylvania and more particularly described in Exhibit "C" ; and B. For the following amounts along with costs of suit: PRINCIPAL $442,723.99 INTEREST $8,636.25 LATE CHARGES $615.71 LEGAL FEE 22 136.20 TOTAL $474,112.15 Plus interest on the principal balance at 7.25%. Dated: August 12, 2009 Jack F. , E uire am, Carr, Ma ey & Woloshin LLP 119 East Market Street York, PA 17401 I.D. 10241 Phone 1-717-843-8968 Fax 1-717-846-4999 E-mail JReam_639@comcast.net Attorney for the Plaintiff Commerce Bank/ Harrisburg, t/d/b/a METRO BANK STATE OF PENNSYLVANIA SS: COUNTY OF Before me, a Notary Public, in and for the said County and State, personally appeared who, being duly sworn according to law, doth depos and say that she/he is a Hof Commerce Bank/Harrisburg, a banking organization organized and existing under the laws of the Commonwealth of Pennsylvania trading and doing business as METROBANK and that as such officer is authorized to make this Affidavit on behalf of Commerce Bank/Harrisburg and that the facts set forth in the foregoing document are true and correct to the best of her/his knowledge, information and belief. COMMERCE BANK/HARRISBURG t/d/b/a METRO BANK ?antljwc 01jLA__ (SEAL) Am s e r Sworn and Subscribed to before me this day of 2009. Notary Pukp\lic COMMONMALTH OF PENNSYLVANIA Notad3l Seal Kaily Walt, Notary Public City of Harnsburc:, Dauphin County My Commission Expires Aug. 28, 2011 Member, Pennsylvania Association of Notaries i' Form 3290 1/01 i BALLOON NOTE KALMES (FIXED RATE) LOAN #: 33332247KAI,DES THIS LOAN IS PAYABLE IN FULLS AT MATURITY. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE. THE LENDER IS UNDER NO OBLIGATION TO REFINANCE THE LOAN AT THAT TIME. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL HAVE TO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, WILLING TO LEND YOU THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME LENDER. APRIL 24, 2006 HARRISBURG PENNSYLVANIA [Date] (City] [State] 5908 STEPHENS CROSSING, MECHANICSBURG, PA 17050 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 542,500.00 (this amount is called "Principal"), plus interest, to the order of the Lender. The Lender is COMMERCE BANK/HARRISBURG, N.A. I will make all payments under this Note in the form of cash, check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of % 8 . 000 The interest rate required by Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payments on the day of each month beginning on JUNE 1, 2006 I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on MAY 1, 2011 , 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 3801 PAXTON STREET, HARRISBURG, PA 17111 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payments will be in the amount of U.S. $ 3,980-67 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying any Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount. of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, MULTISTATE BALLOON NOTE (Fixed Rate}--Single Faudly-Freddie Mac UNIFO EXHIBIT L)OC'118NA1 Page / of.? DOCUHNAl. VTX 01/23 /2004 e. E m t.. then: (a) any such loan charge shall be reduced by the amount necessary to reduce the3charge to the permitted limit; and (b) any sum already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges 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 5.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when t am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of the Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that anyone of us maybe 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 rights to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under the Note. Some of those conditions are described as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. MULTISTATE BALLOON NOTE (Fixed Rate)-Single Family--Freddie Mac UNIFORM INSTRUMENT DOCUBNA2 Form 3290 1/01 DOCVB A1.VTx 01/73/1004 Page 2 0f3 If Lender, exercises this option, Lender shalt give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S),ANDo?EA;(SMF THE UNDERSIGNED. • a\i1YLGJ [Sign Original Only] MULTISTATE BALLOON NOTE (Fixed Rate)--Single Family--Freddle Mac UNIFORM INSTRUMENT DOC Form 3290 I/Ut UBNA3 DOCUBNA3.VTX 04/29/7004 Page 3 of3 L YJ 1 AFTER RECORDING RETURN TO: COMMERCE BANK/HARRISBURG, N.A. 3801 PAXTON STREET HARRISBURG, PA 17111 ATTN: POST CLOSING - T. SANTARELLI PHONE: (717)412-6879 PREPARED BY: MARCY CRANDY COMMERCE BANK/HARRISBURG, N.A. 3801 PAXTON STREET HARRISBURG, PA 17111 PROPERTY ADDRESS: 5908 STEPHENS CROSSING MECHANICSBURG, PA 17050 . _.. . . _.. .. ..rid ",,^ 11l h 'Y 3 R .•" 4v?? ? i` 12 37 PIN: [Space Above This Line For Recording Data] MORTGAGE KALDBS LOAN #: 33332247KALDES DEFTNITTONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated APRIL 24, 2006 , together with all Riders to this document. (B) "Borrower" is WILLIAM J. KALDES AND STEPHANIE N. KALDES, HIS WIFE Borrower is the mortgagor under this Security Instrument. (C) "Lender" is COMMERCE BANK/HARRISBURG, N.A. Lender is a NATIONAL ASSOCIATION organized and existing under the laws of PENNSYLVANIA Lender's address is 3801 PAXTON STREET, HARRISBURG, PA 17111 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated APRIL 24, 2006 The Note states that Borrower owes Lender FIVE HUNDRED FORTY-TWO THOUSAND FIVE HUNDRED AND 00/100 Dollars (U.S. $ 542, 500.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than MAY 1, 2011 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Farm 3039 1/01 (page I of]4pages) DOCUIPAI DOCU"Ja.VTZ 12/16/2005 EXHIBIT E nuini.nnrirnl. 33332247KALDzs (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ? Adjustable Rate Rider ? Condominium Rider ? Second Home Rider ® Balloon Rider ? Planned Unit Development Rider ? Biweekly Payment Rider ? 14 Family Rider ? Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. . (1) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which Js initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any. compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage grant and convey to Lender the following described property located in the COUNTY of CUMBERLAND [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] ALL THAT CERTAIN TRACT OF LAND AND IMPROVEMENTS SITUATE IN HAMPDEN TOWNSHIP, CUMBERLAND COUNTY, PENNSYLVANIA, MORE PARTICULARLY BOUNDED AND DESCRIBED IN EXHIBIT "A" ATTACHED HERETO, PENNSYLVANIA-Single Family-Faaole Mae/Freddie Mae UNIFORM INSTRUMENT Form 3039 1/01 (page 2 of 14 pages) DOCUIPA2 DOCO1PA2.VTS Oa/25/2005 ., f+. 33332247KAMES which currently has the address of 5908 STEPHENS CROSSING [Street] MECHANICSBURG , Pennsylvania 17050 ("Property Address"): [City] [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) cerfi ied check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under. this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one. Periodic Payment is outstanding, Lender may apply any payment received from PENNSYLVANIA-Single Family-Fantle Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 3 of /I pager) DOCUIPA3 DOCOIPA3.VTZ 08/23/2003 33332247R.A=zs Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in M, a sum (the "Funds'l to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly fiunish to Lender all notices of amounts to be paid under this Section, Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of. such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be. obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts; that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESP A, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. PENNSYLVANIA--Singic Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 30391/01 (page 4 of] 4 pages) DOCUIPA4 DOCUIPA4.vsx 03/25/2005 33332247KAMZS Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to PENNSYLVANIA-Single Fanrity--Fannie MWFreddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 5 of 14 pages) DOCUIPA5 D0001PA5.VTY 08/25/2005 i..• a e% I n mr%. I e n ei 33332247KALDES restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 30391/01 (page 6 of (* pages) DOCUIPA6 DOCQSPx6.WX 08/25/7005 33332247YJ=NS Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Tender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that PENNSYLVANIA-Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 30391/01 (page 7 of /f pages) DOCUlPA7 DOCQIDa7.VTX 08/25/2005 . - . .-. nn 1 P f ^ 33332247KALDES the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts .that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 30391/01 (page 8 of 14 pages) DOCUIPAS DOCUIPsa.VTZ 08/73/200s _..af,r nnrrlcti 33332247KAMES Instrument, whether or not then due. "Opposing party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred; reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall.not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co- signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated-to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without, any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refimd made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. PENNSYLVANIA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 9of]4pages) DOCUIPA9 DOCRIP7S.WX 09/25/7005 33332247KALDES 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Airy notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severabllity; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of. (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3039 1101 (page 10 0j/I pages) DOCUIPAI0 DOCOIPAL.VTX 08/2512005 f"it,?nt. nor 1?C?1 3 33332247KALD8s to pay the sums secured by this Security Instrument, shall co ntinue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other. party hereto a reasonable period after the giving of such notice. to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an .`Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous PENNSYLVANIA-Single Family-Fasaft Mae/Freddie Mac UNIFORM INSTRUMENT Form 30391/01 (page II of 14 pages) DOCUIPAI I DOCOIGAS.VTR 08/25/2005 DV i ©.1. ©[3 , I C I Is 3 3332247XRLDES Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). Lender shall notify Borrower of, among other things: (a) the default; (b) the action required to cure the default; (c) when the default must be cured; and (d) that failure to cure the default as specified may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property. Lender shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. If the default is not cured as specified, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, attorneys' fees and costs of title evidence to the extent perrlutted by Applicable Law. 23. Release. Upon payment of all sums secured by this Security Instrument, this Security Instrument and the estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge and satisfy this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower, to the extent permitted by Applicable Law, waives and releases any error or defects in proceedings to enforce this Security Instrument, and hereby waives the benefit of any present or future laws providing for stay of execution, extension of time, exemption from attachment, levy and sale, and homestead exemption. 25. Reinstatement Period. Borrower's time to reinstate provided in Section 19 shall extend to one hour prior to the commencement of bidding at a sheriffs sale or other sale pursuant to this Security Instrument. 26. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to acquire title to the Property, this Security Instrument shall be a purchase money mortgage. 27. Interest Rate After Judgment. Borrower agrees that the interest rate payable after a judgment is entered on the Note or in an action of mortgage foreclosure shall be the rate payable from time to time under the Note. PENNSYLVANIA-Single Family-Fannie Mae/Freddle Mac UNIFORM INSTRUMENT Form 3039 1101 (page 11 of 14 pages) DOCUIPA12 DOC.ULP?C.DTZ 06/26/2005 33332247ZALDES BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Bprrow;x and recorded with it. - BORROWER - h' - BORROWER - ST IE N. KALDES - DATE - T PENNSYLVANIA-Single Fannly-Fannie Mae/Fredd[e Mac UNIFORM INSTRUMENT Form 30391/01 (page 13 of 14 pages) DOCUIPA13 DOCUIPAD.VTX 08/25/2005 RK.1949PG1616 ]Space Below This Line For Acknowledgment] 333322471CALD83 Commonwealth of PENNSYT VANIA County of _0 C -'• )r' \ ?1 On this the TA'?'dY a of N"? C \ I before ? me <?A C,004' the undersigned officer, personally appeared . wo l Gtn" --j-- ?k 6Q..c;'C...S ar -•e-- rQ known to me (or satisfactorily proven) to be the person(s) whose nalne(s)-ZB' 0 stbscribed to the within instrument and acknowledged that ARE? executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. "£ pL?v'tti5"?JAk?!A -??-- 011 JGDY W- LPIR1 3 Notary PlablIC paW iln County City a1mis on expires NOV. 03, 2009 my Go My Commission Expires: CERTIFICATE OF RESIDENCE: I do hereby certify that the correct address of the within-named lender is 3801 PAXTON STREET, HARRISBURG, PA 17111. Witness my hand this 24Th day of APRIL, 2006 0001- Agent of Lender PENNSYLVANIA--Single Family-Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3039 1/01 (page 14 of 14 pages) DOCUlPA14 D0CMP1l.VT1 09/35/20D5 BALLOON RIDER (CONDITIONAL MODIFICATION AND EXTENSION OAF L OAN TERMS) LOAN*z 33332247XALDES THIS BALLOON RIDER is made this 24TH day of APRIL, 2006 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Security Instrument') of the same date given by the undersigned (the "Borrower") to secure the Borrower's Note to COMMERCE BANK/HARRISBURG, N. A. (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 5908 STEPHENS CROSSING, MSCRANICSBURG, PA 17050 [Property Address] The interest rate stated on the Note is called the "Note Rate." The date of the Note is called the "Note Date." I understand the Lender may transfer the Note, Security Instrument and this Rider. The Lender or anyone who takes the Note, the Security Instrument and this Rider by transfer and who is entitled to receive payments under the Note is called the "Note Holder." ADDITIONAL COVENANTS. In addition to the covenants and agreements in the Security Instrument, Borrower and Lender further covenant and agree as follows (despite anything to the contrary contained in the Security Instrument or the Note): 1. CONDITIONAL MODIFICATION AND EXTENSION OF LOAN TERMS At the maturity date of the Note and Security Instrument (the "Note Maturity Date'), I will be able to extend the Note Maturity Date to MAY 1. 2036 (the "Extended Maturity Date") and modify the Note Rate to the. "Modified Note Rate" determined in accordance with Section 3 below if all the conditions provided in Sections 2 and 5 below are met (the "Conditional Modification and Extension Option"). If those conditions are not met, I understand that the Note Holder is under no obligation to refinance the Note or to modify the Note, reset the Note hate or extend the Note Maturity Date, and that I will have to repay the Note from my own resources or find a lender willing to lend me the money to repay the Note. MULTISTATE BALLOON RIDER (Modification and Extension)--Single Family--Freddie Mac UNIFORM INSTRUMENT Form 3190 1/01 n0?CURRSI.WX 10114/3003 (page 1 of3 pages) 2. CONDITIONS TO OPTION 33332247xALD138 If I want to exercise the Conditional Modification and Extension Option, certain conditions must be met as of the Note Maturity Date. These conditions are: (a) I must still be the owner and occupant of the property subject to the Security Instrument (the "Property"); (b) I must be current in my monthly payments and cannot have been more than 30 days late on any of the 12 scheduled monthly payments immediately preceding the Note Maturity Date; (c) there are no liens, defects, or encumbrances against the Property, or other adverse matters affecting title to the Property (except for taxes and special assessments not yet due and payable) arising after the Security Instrument was recorded; (d) the Modified Note Rate cannot be more than 5 percentage points above the Note Rate; and (e) I must make a written request to the Note Holder as provided in Section 5 below. 3. CALCULATING THE MODIFIED NOTE RATE The Modified Note Rate will be a fixed rate of interest equal to the Federal Home Loan Mortgage Corporation's required net yield for 30-year fixed rate mortgages subject to a 60-day mandatory delivery commitment, plus one-half of one percent (0.5%), rounded, to the nearest one- eighth of one percent (0.125%) (the "Modified Note Rate"). The required net yield shall be the applicable net yield in effect on the date and time of day that I notify the Note Holder of my election to exercise the Conditional Modification and Extension Option. If this required net yield is not available, the Note Holder will determine the Modified Note Rate by using comparable information. 4. CALCULATING THE NEW PAYMENT AMOUNT Provided the Modified Note Rate as calculated in Section 3 above is not greater than 5 percentage points above the Note Rate and all other conditions required in Section 2 above are satisfied, the Note Holder will determine the amount of the monthly payment that will be sufficient to repay in full (a) the unpaid principal, plus (b) accrued but unpaid interest, plus (c) all other sums I will owe under the Note and Security Instrument on the Note Maturity Date (assuming my monthly payments then are current, as required under Section 2 above), over the remaining extended term at the Modified Note Rate in equal monthly payments. The result of this calculation will be the new amount of my principal and interest payment every month until the Note is fully paid. 5. EXERCISING THE CONDITIONAL MODIFICATION AND EXTENSION OPTION The Note Holder will notify me at least 60 calendar days in advance of the Note Maturity Date and advise me of the principal, accrued but unpaid interest, and all other sums I am expected to owe on the Note Maturity Date. The Note Holder also will advise me that I may exercise the Conditional Modification and Extension Option if the conditions in Section 2 above are met. The Note Holder will provide my payment record information, together with the name, title and address of the person representing the Note Holder that I must notify in order to exercise the Conditional Modification and Extension Option. If I meet the conditions of Section 2 above, I may exercise the Conditional Modification and Extension Option by notifying the Note Holder no earlier than 60 calendar days and no later than 45 calendar days prior to the Note Maturity Date. The Note Holder will calculate the fixed Modified Note Rate based upon the Federal Home Loan Mortgage Corporation's applicable published required net yield in effect on the date and time of day notification is received by the Note Holder and as calculated in Section 3 above. I will then have 30 calendar days to provide the Note Holder with acceptable proof of my required ownership, occupancy and property lien status. Before the Note Maturity Date the Note Holder will a dvise me of the new interest rate (the Modified Note Rate), new monthly payment amount and a date, time and place at which I must appear to sign any documents required to complete the required Note Rate modification and Note Maturity Date extension. I understand the Note Holder will ch arge me MULTISTATE BALLOON RIDER (Modification and Extewion}-Single Faznily-Freddie Mae UNIFORM INSTRUMENT Form 3190 1101 o?c Re3?VTX 10/14/2003 (page 2 of3 pager) , 33332247RALDES a $250 processing fee and the costs associated with the exercise of the Conditional Modification and Extension Option, including but not limited to the cost of updating the title insurance policy. BY SIGNING BELOW, BORROWER accepts and agrees to the terms and covenants contained in this Balloon Rider. - BORROWER - WILL 'J. DES - DATE - - BORROWER - STEP ITE N. KALDES - DATE - i ..17. ui 11' r :.:1 • ?.. _ _ . .1 P =5'!'?6 ?.1.I ???,4 u t? MULTISTATE BALLOON RIDER (Modification and Extension)-Single Farm] y--Freddie Mac UNIFORM INSTRUMENT Form 3190 I/01 00CUBRB3 (page 3 of 3 pages) DOCG9ae3. VTY 10/14/3003 Legal Description 5908 Stephen Crossing ALL THAT CERTAIN piece or parcel of land situate in the Township of Hampden, County of Cumberland and Commonwealth of Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point on the northern legal right-of-way line of Stephen's Crossing, at the southeast corner of Lot No. 18 on the hereinafter described Final Development Plan; thence along the eastern line of said Lot No. 18 North 42 degrees 56 minutes 09 seconds East, a distance of 119.74 feet to a point at the southernmost corner of Lot No. 19 on the hereinafter described Final Development Pln; thence along the southern line of said Lot No. 19 North 79 degrees 24 minutes 22 seconds East, a distance of 118.49 feet to a point on the western line of Lot No. 24 on the hereinafter described Final Development Plan; thence along the western line of said Lot No. 24 South 26 degrees 04 minutes 09 seconds East, a distance of 17.62 feet to a point at the northernmost comer of Lot No. 31 on the hereinafter described Final Development Plan; thence along the western line of said Lot No. 31 South 42 degrees 35 minutes 44 seconds West, a distance of 208.44 feet to a point on the northern legal right-of-way line of Stephen's Crossing; thence along the northern legal right-of-way line of Stephen's Crossing by a curve to the right having a radius of 640.00 feet an arc length of 18.71 feet to a point; thence continuing along said legal right-of-way line North 47 degrees 03 minutes 51 seconds West, a distance of 69.41 feet to a point at the southeast corner of Lot No. 18 on the hereinafter described Final Development Plan, the point and place of BEGINNING. CONTAINING 15,400 square feet, more or less BEING Lot No. 32, Final Development Plan, Final Plan "A" (PRD), Village of Westover (East), which Final Development Plan is recorded in the Office of the Recorder of Deeds of Cumberland County in Plan Book 53, Page 130. UNDER AND SUBJECT to any and all restrictive covenants, conditions, restrictions, rights-of-way, easements and agreement of record, including but not limited to Final Development Pln, Final Plan "A" (PRD), Final Plan "B" (PRD) Village of Westover (East) dated February 18, 1986, last revised February 24, 1987 (Final Plan "B") recorded in the Office of the Recorder of Deeds of Cumberland. County in Plan Book 53, Page 130, specifically including NOTE 4 FINAL PLAN `B" (PRD) and NOTE 5 FINAL PLAN "A" (PRD) (sheet 3 of 3) thereof and specifically including a ten (10) foot drainage easement as shown on Final Plan "A" (PRD) (Sheet 1 of 3); Final Site Development Plan Village of Westover (East) Phase I, dated November 15, 1986, recorded in the Office of the Recorder of Deeds of Cumberland County in Plan Book 53, Page 141, together with Final Revised Development Plan for the Village of Westover (East Section) Phases V and Vi, dated March 1989, recorded in the Office of the Recorder of Deeds of Cumberland County in Plan Book 60, Page 74. BEING THE SAME premises which Keeley Realty, Inc., a Pennsylvania Corporation, by its deed dated July 3, 1991 and recorded July 5, 1991 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed Book "E", Volume 35, Page 1037, granted and conveyed unto William J. Kaldes and Stephanie N. Kaldes, his wife, MORTGAGORS herein. 5908 Stephens Crossing ALL THAT CERTAIN piece or parcel of land situate in the TOWNSHIP OF HAMPDEN, County of Cumberland and commonwealth of Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point on the northern legal right-of-way line of Stephen's Crossing, at the southeast corner of Lot No. 18 on the hereinafter described Final Development Plan; thence along the eastern line of said Lot No. 18 North 42 degrees 56 minutes 09 seconds East, a distance of 119.74 feet to a point at the southernmost corner of Lot No. 19 on the hereinafter described Final Development Plan; thence along the southern line of said Lot No. 19 North 79 degrees 24 minutes 22 seconds East, a distance of 118.49 feet to a point on the western line of Lot No. 24 on the hereinafter described Final Development Plan; thence along the western line of said Lot No. 24 South 26 degrees 04 minutes 09 seconds East, a distance of 17.62 feet to a point at the northernmost corner of Lot No. 31 on the hereinafter described Final Development Plan; thence along the western line of said Lot No. 31 South 42 degrees 35 minutes 44 seconds West, a distance of 208.44 feet to a point on the northern legal right-of-way line of Stephen's Crossing; thence along the northern legal right-of-way line of Stephen's Crossing by a curve to the right having a radius of 640.00 feet an arc length of 18.71 feet to a point; thence continuing along said legal right-of-way line North 47 degrees 03 minutes 51 seconds West, a distance of 69.41 feet to a point at the southeast corner of Lot No. 18 on the hereinafter described final Development Plan, the point and place of BEGINNING. CONTAINING 15,400 square feet, more or less. BEING Lot No. 32, Final Development Plan, Final Plan "A" (PRD), Village of Westover (East), which Final Development Plan is recorded in the Office of the Recorder of Deeds of Cumberland County in Plan Book, 53, Page 130. UNDER AND SUBJECT to any and all restrictive covenants, conditions, restrictions, rights-of-way, easements and agreement of record, including but not limited to Final Development Plan, Final Plan "A" (PRD), Final Plan "B" (PRD) Village of Westover (East) dated February 18, 1986, last revised February 24, 1987 (Final Plan "B") recorded in the Office of the Recorder of Deeds of Cumberland County in Plan Book 53, Page 130, specifically including NOTE 4 FINAL PLAN "B" (PRD) and NOTE 5 FINAL PLAN "A" (PRD) (sheet 3 of 3) thereof and specifically including a ten (10) foot drainage easement as shown on Final Plan "A" (PRD) (Sheet 1 of 3); Final Site Development Plan Village of Westover (East) Phase I, dated November 15, 1986, recorded in the Office of the Recorder of Deeds of Cumberland County in Plan Book 53, Page 141, together with EXHIBIT E CI Final Revised Development Plan for the Village of Westover (East Section) Phases V and VI, dated March 1989, recorded in the Office of the Recorder of Deeds of Cumberland County in Plan Book 60, Page 74. BEING THE SAME PREMISES which Keeley Realty, Inc., a Pennsylvania Corporation, by its deed dated July 3, 1991 and recorded July 5, 1991 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Deed book "E", Volume 35, Page 1037, granted and conveyed until William J. Kaldes and Stephanie N. Kaldes, his wife, MORTGAGORS, herein. (D 0 PC) PROMISSORY NOTE MODIFICATION AGREEMENT THIS PROMISSORY NOTE MODIFICATION AGREEMENT, made and entered into as of OVAL ASSOCIATION this 29tionay of June, 2006, by and between COMMERCE BANK/HARRISBURG, NAT rei princ "Bank busines banking association (Harri burg, PAl 1 11 , and William J. Kaldesl and pStephanie N. Kaldes 3801 Paxton Street, hereinafter called "Borrowers"). wITNESSETH: ssory the WHEREAS, Borrowers executed evideh es a deivered to Bank a -(#33332247)Pbymthe Bank oto the Borrowers dated April 24, 2006, whi:of Five Hundred Five Hundred Dollars and no Forty-Two Thousand, in- the principal amount cents ($542,5?Od..00), and being secured by collateral as set forth in the Note. s and NOW THEREFORE, for value -received and in consideration be legally bound thereby Ve Bank and agreements hereinafter contained and intending to Borrowers covenant and. agree to amend and modify the Note heretofore described as follows: 1. The Note and all Loan documents related thereto shall be amended to provide payment interest that effective June 29, 2006, the June 1, 2006, thereby and amending the monthly of $3,980.67 shall be deferred until July 1, 2006, principle and interest payments to $4,013.19 through the term of the loan. 2. The deferred June 1, 2006 payment shall be added toth2011dtof the ter of the loan; thereby extending the maturity date from May 1 3. Except to the extent specifically set forth herein, all of the terms, conditions,covenants and Borrowergherebytratifiesnandiaffirmsoeachhand everyntermfand force and effect. condition, obligation, and covenant of Borrower under the Note in every respect the Note in and shall pay and discharge the indebtedness evidenced by accordance with its terms as modified herein. This Modification shall not alter, diminish, or otherwise affect the lien of the Mortgage or the collateral therein described. eto have executed this Agreement the day and year IN WITNESS WHEREOF, the parties her first above written. COMMERCE BANK/HARRISBURG, N. A. ATTEST: By: Michae a Witness Residential oan Department Borrower EXHIBIT illiam J Witness 3 PROMISSORY NOTE MODIFICATION AGREEMENT T ICATION AGREEMENT made and entered into as of this d f May 2007, and between COMMERCE BANK/ HARRISBURG, NATIONA na banking association (hereinafter called "Bank"), having its principal place of business at 3801 Paxton Street, Harrisburg, Pennsylvania, 17111, and William J. Kaldes and Stephanie N. Kaldes hereinafter called "Borrower"). WITNESSETH: WHEREAS, Borrower executed and delivered to Bank a Promissory Note (the "Note") dated April 24, 2006, in the original amount of $542,500.00, which evidences a loan (433332247) by the Bank to the Borrower; and WHEREAS, the Bank and Borrower mutually agree to modify the terms of the Note to re-amortize, lower the interest rate, and extend the Current Maturity Date, as hereinafter provided. NOW THEREFORE, for value received and in consideration of the mutual covenants and agreements hereinafter contained and intending to be legally bound hereby, Bank and Borrower covenant and agree to amend and modify the Note heretofore described as follows: 1. The Note and all Loan Documents related thereto shall be-amended to provide that effective as of the date of this Agreement the interest rate will be reduced from fixed at 8.00% to fixed at 7.25%. The loan shall be re-;amortized over a thirty-year period beginning with the payment due can June 1, 2007. This loan facility will mature with a balloon payment due on May 1, 2012. 2. Except to the extent specifically set forth herein, and in other modification agreements, all of the terms, conditions, covenants and agreements contained in the Note shall remain in full force and effect. Borrower hereby ratifies and affirms each and every term and condition, obligation, and covenant of Borrower under the Note in every respect and shall pay and discharge the indebtedness evidenced by the Note in accordance with its terms as modified herein. This Modification shall not altar, diminish, or otherwise affect the lien of the Mortgage or the collateral therein described. EXHIBPage 1 of 2 3 ED IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. ATTEST COMMERCE BANK/HARRISBURG, N. A. t? Witness: SK. ??.1 -6&A/ BY : Cil.?l Colleen EnSing r Vice President Page 2 of 2 Borrower: P LG 3801 Paxton Street Harrisburg • PA+ 17111 mymetrobank.com 888.937.0004 August 6, 2009 ACT 6/91 NOTICE TAIIIN"M"ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 33 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you meet with the Counseling Agency. The name, address and phone number of Consumer Credit Counseling Agencies serving your County are listed at the end of the Notice. If you have any questions you may call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons with impaired hearing can call (717) 780-1869. This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. EXHIBIT E WILLIAM J KALDES AND STEPHANIE N KALDES 5908 STEPHENS CROSSING MECHANICSBURG PA 17055 Property Address - 5908 Stephens Crossing, Mechanicsburg, PA 17055 Loan account number - 33332247 Original lender - Metro Bank formally known as Commerce Bank/Harrisburg Current Lender/Servicer - Metro Bank HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: *IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL,' • IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND • IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE-Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice (plus three (3) days for mailing). During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THIRTY-THREE (33) DAYS OF THE DATE OF THIS NOTICE. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES-If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of designated consumer credit counseling agencies for the county in which the property is located are set forth at the end of this Notice It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE-Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) You have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. To temporarily stop the lender from filing a foreclosure action, your application MUST be forwarded to the PHFA and received within thirty (30) days of your face-to-face meeting with the counseling agency. YOU SHOULD FILE A HEMAP APPLICATIONAS SOONAS POSSIBLE. IF YOU HA VE A MEETING WITHA COUNSELING AGENCY WITHIN 33 DAYS OF THE POSTMARK DATE OF THIS NOTICE AND FILE ANAPPLICATION WITH PHFA WITHIN 30 DAYS OF THAT MEETING, THEN THE LENDER WILL BE TEMPORA TIL Y PRE VENTED FROM STARTING A FORECLOSURE AGAINST YOUR PROPERTY, AS EXPLAINED ABOVE, IN THE SECTION CALLED,,TEMPORARY STAY OF FORECLOSURE'. YOU HA VE THE RIGHT TO FILE A HEMAP APPLICA TION EVEN BEYOND THESE TIME PERIODS. A LATE APPLICATION WILL NOT PREVENT THE LENDER FROM STARTING A, FORECLOSURE ACTION, B UT IF YOUR APPLICATION IS E VENTUA LL Y A PPR 0 VED AT ANY TIME BEFORE A SHERIFF'S SALE, THE FORECLOSURE WILL BE STOPPED. AGENCY ACTION-Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Briny it up to date). NATURE OF THE DEFAULT-The MORTGAGE debt held by the above lender on your property located at: 5908 Stephens Crossing, Mechanicsburg, PA 17055 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: 5/1/2009-$3,504.16, 6/1/2009-$3,602.56 and $461.80 in late fees TOTAL AMOUNT PAST DUE: $ 7,568.52. B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION: (Do not use if not applicable.) HOW TO CURE THE DEFAULT-You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS 7,568.52 PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: Metro Bank 3801 Paxton Street P.O. Box 4999 Harrisburg, PA 17111-0999 IF YOU DO NOT CURE THE DEFAULT-If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortgage debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mortgaged property. IF THE MORTGAGE IS FORECLOSED UPON-The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees' actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney's fees. OTHER LENDER REMEDIES-The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE-If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriff's Sale. You may do so by paving the total amount then past due plus any late or other charges then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriff's Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE-It is estimated that the earliest date that such a Sheriff's Sale of the mortgaged property could be held would be approximately six months from the date of this Notice. A notice of the actual date of the Sheriff's Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Metro Bank Address: 3801 Paxton Street, P.O. Box 4999 Harrisburg, PA 17111-0999 Phone Number: 717-412-6894 Fax Number: (717) 909-0589 Contact Person: JESSICA RODRIGUEZ EFFECT OF SHERIFF'S SALE-You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE-You may or -X-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 TIMES IN ANY CALENDAR YEAR.) • TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. • TO ASSERT ANY OTHER DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. 0 TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. CONSUMER CREDIT COUNSELING AGENCIES ADAMS COUNTY Adams County Interfaith Housing Authority (717) 334-1518 LEBANON COUNTY Schuylkill Community Action (570) 622-1995 BERKS COUNTY American Credit Counseling Institute (888) 212-6741 Budget Counseling Center (610) 375-7866 CUMBERLAND COUNTY CCCS of Western PA (888) 511-2227 Maranatha (717) 762-3285 Community Action Commission (717) 232-9757 DAUPHIN COUNTY PHFA (717) 780-3940 Community Action Commission (717) 232-9757 Tabor Community Service, Inc. (717) 397-5182 LANCASTER COUNTY Tabor Community Services, Inc (717) 397-5182 PERRY COUNTY Community Action Commission (717) 232-9757 CCCS of Western PA (888) 511-2227 Maranatha (717) 762-3285 YORK COUNTY Housing Alliance of York (717) 854-1541 Adams County Interfaith Housing Authority (717) 334-1518 FRANKLIN COUNTY Maranatha (717) 762-3285 3801 Paxton Street Harrisburg + PA • 17111 mymatrobank.com 888.937.0404 August 6, 2009 ACT 6/91 NOTICE TAII-CE"ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the program works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 33 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you meet with the Counseling Agency. The name, address and phone number of Consumer Credit Counseling Agencies serving your County are listed at the end of the Notice. If you have any questions, you may call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons with impaired hearing can call (717) 780-1869. This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. WILLIAM J KALDES AND STEPHANIE N KALDES 5908 STEPHENS CROSSING MECHANICSBURG PA 17055 Property Address - 5908 Stephens Crossing, Mechanicsburg, PA 17055 Loan account number - 33332247 Original lender - Metro Bank formally known as Commerce Bank/Harrisburg Current Lender/Servicer - Metro Bank HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: •IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, • IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND • IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE-Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice (plus three (3) days for mailing). During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THIRTY-THREE (33) DAYS OF THE DATE OF THIS NOTICE. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE YOU MUST BRING YOUR MORTGAGE UP TO DATE THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES-If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of designated consumer credit counseling agencies for the county in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE-Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) You have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. To temporarily stop the lender from filing a foreclosure action, your application MUST be forwarded to the PHFA and received within thirty (30) days of your face-to-face meeting with the counseling agency. YOU SHOULD FILE A HEMAP APPLICATIONAS SOON AS POSSIBLE. IF YOU HA VE A MEETING WITHA COUNSELING AGENCY WITHIN 33 DAYS OF THE POSTMARK DATE OF THIS NOTICE AND FILE AN APPLICATION WITH PHFA WITHIN 30 DAYS OF THAT MEETING, THEN THE LENDER WILL BE TEMPORA TIL Y PRE VENTED FROM STARTING A FORECLOSURE AGAINST YOUR PROPERTY, AS EXPLAINED ABOVE, IN THE SECTION CALLED "TEMPORARYSTAY OF FORECLOSURE': YOU HA VE THE RIGHT TO FILE A HEMAP APPLICATION EVEN BEYOND THESE TIME PERIODS. A LATE APPLICATION WILL NOT PREVENT THE LENDER FROM STARTING A FORECLOSURE ACTION, BUT IF YOUR APPLICATIONIS EVENTUALLYAPPROVED AT ANY TIME BEFORE A SHERIFF'S SALE, THE FORECLOSURE WILL BE STOPPED. AGENCY ACTION-Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT-The MORTGAGE debt held by the above lender on your property located at: 5908 Stephens Crossing, Mechanicsburg, PA 17055 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: 5/1/2009-$3,504.16, 6/1/2009-$3,602.56 and $461.80 in late fees TOTAL AMOUNT PAST DUE: $ 7,568.52. B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION: (Do not use if not applicable.) HOW TO CURE THE DEFAULT-You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS 7,568.52 PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: Metro Bank 3801 Paxton Street P.O. Box 4999 Harrisburg, PA 17111-0999 IF YOU DO NOT CURE THE DEFAULT-If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortgage debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mortgaged property. IF THE MORTGAGE IS FORECLOSED UPON-The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees' actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney's fees. OTHER LENDER REMEDIES-The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE-If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, yon still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriff's Sale. You may do so by paying the total amount then past due, plus any late or other charges then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriff's Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE-It is estimated that the earliest date that such a Sheriff's Sale of the mortgaged property could be held would be approximately six months from the date of this Notice. A notice of the actual date of the Sheriff's Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Metro Bank Address: 3801 Paxton Street, P.O. Box 4999 Harrisburg, PA 17111-0999 Phone Number: 717412-6894 Fax Number: (717) 909-0589 Contact Person: JESSICA RODRIGUEZ EFFECT OF SHERIFF'S SALE-You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE-You may or _X_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 TIMES IN ANY CALENDAR YEAR.) • TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. • TO ASSERT ANY OTHER DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. 0 TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. CONSUMER CREDIT COUNSELING AGENCIES ADAMS COUNTY Adams County Interfaith Housing Authority (717) 334-1518 LEBANON COUNTY Schuylkill Community Action (570) 622-1995 BERKSCOUNTY American Credit Counseling Institute Tabor Community Service, Inc. (717) 397-5182 (888) 212-6741 Budget Counseling Center (610) 375-7866 LANCASTER COUNTY Tabor Community Services, Inc (717) 397-5182 CUMBERLAND COUNTY CCCS of Western PA (888) 511-2227 Maranatha (717) 762-3285 Community Action Commission (717) 232-9757 DAUPHIN COUNTY PHFA (717) 780-3940 Community Action Commission (717) 232-9757 PERRY COUNTY Community Action Commission (717) 232-9757 CCCS of Western PA (888) 511-2227 Maranatha (717) 762-3285 YORK COUNTY Housing Alliance of York (717) 854-1541 Adams County Interfaith Housing Authority (717) 334-1518 FRANKLIN COUNTY Maranatha (717) 762-3285 6i Department of the Treasury - Internal Revenue Service Form 668 (Y)(c) (Rev. February 2004) notice yr reaerai tax Lien /0 7 -7 F L Area: Serial Number For Optional Use by Record ing Office SMALL BUSINESS/SELF EMPLOYED AREA #2 0? •/9.V0 Lien Unit Phone: (800) 913-6050 420425108 r As provided by section 6321, 6322, and 6323 of the Internal Revenue gZ h Code, we are giving a notice that taxes (including Interest and penalties) have been assessed against the following-named taxpayer. We have made v? UL? a demand for payment of this liability, but it remains u npaid. Therefore, there is a lien in favor of the United' States on all property and rights to property belonging to this taxpayer for the amount of these taxes, and 0 o additional penalties, Interest, and costs that may accrue. T? Name of Taxpayer WILLIAM J KALDES U^. it m Residence 5908 STEPHENS XING - -, MECHANICSBURG, PA 17050-6867 T RELEASE INFORMATION. For each assessment listed below, -{ of the lien is refiled by the date given in column (e), this notice shall, 7 ollowing such date, operate as a certificate of release as defined t 1 RC a). Tax Period Date of Last Day for fi Unp aid nce Kind of Tax Ending Identifying Number Assessment Re ling of ment (a b c d e 941 03/31/2007 23-2496826 12/24/2007 01/23/2018 0454.39 941 06/30/2007 23-24.96826 12/24/2007 01/23/2018 9198.08 941 09/30/2007 23-2496826 12/31/2007 01/30/2018 8738.18 Place of Filing Prothonotary Cumberland County Total $ 2 3390.65 Carlisle, PA 17013 This notice was prepared and signed at DETROIT, MI the 07th day of February 2008 Signature I e EXHIBIT OFFICER 2e for SEAN DUNLEAVY c7i 17) 777-9626 (NOTE: Certificate of officer authorized ` t is not essential to the validity of Notice of Feder Rev. Rul. 71-466, 1971 - 2 C.B. 409) - _ __ Form 668(Y)(c) , on this, -06-1407 Tax lien lev. 2-2004) 6152 Department of the Treasury - internal Revenue Service Form ((Rev. February (Y)( 2004) c) Notice of Federal Tax Lien X b_ /(a_ h f('. 3S eQ p FTL Area: Serial Number For Optional Use by Recording Office SMALL BUSINESS/SELF EMPLOYED AREA #2 AL ?W ?/4-06 Lien Unit Phone: (800) 913-6050 449267108 As provided by section 6321, 6322, and 6323 of the Internal Revenue C* ///P_3 Code, we are giving a notice that taxes (including interest and penaltks) 7 7/ have been assessed against the following-named taxpayer. We have made d 10. a demand for payment of this liability, but It remains unpaid. Therefore, there Is a lien In favor of the United States on aG property and rights to property belonging to this taxpayer for the amount of these taxes, and o additional penaides, Interest, and costs that may accrue. v cr. n, °° c.- Name of Taxpayer WILLIAM J & STEPHANIE N KALDES r- ,y ' c 3 .Y t ?F Residence 5908 STEPHENS XING ? - Z. -0 MECHANICSBURG, PA 17050-6867 y c tv om r NT RELEASE INFORMATION: For each assessment listed below tv , e of the lien is refiled by the date given in column (e), this notice shall, 7 F following such date, operate as a certificate of release as defined 1 RC 5(a). Tax Period Date of Last ppa?yy Kind of Tax Ending identifying Number Assessnwnt Rmmg of Assessment a b c d (e) M 1040 12/31/2005 XXX-XX-7585 05/12/2008 06/11/2018 4736.81 1040 12/31/2006 XXX-XX-7585 04/07/2008 05/07/2018 12444.64 Place of Filing Prothonotary Cumberland County Total $ 17181.45 Carlisle, PA 17013 This notice was prepared and signed at the 06th day of June DETROIT, MI 2008 Signature \?? for SEAN DUNLEAVY EXHIBIT (NOTE: Certificate of officer authorize Be Rev. Rul. 71-466,1971 - 2 C.B. 409) , on this, itie EVENUE OFFICER 22-06-1407 717) 777-9626 Is not essential to the validity of Notice of Federal Tax lien 6152 Department of the Treasury - Internal Revenue Service Form eea cY)(?) ? Notice of Federal Tax Lien (Rev. February 2004) 11/, h 9. -1 459 F 77L Area: Serial Number For Optional Use by Recording Office SMALL BUSINESS/SELF EMPLOYED AREA #2 Lien Unit Phone: (800) 913-6050 449267308 n As provided by section 6321, 6322, and 6323 of the Internal Revenue Code, we are giving a notice that taxes (including interest and penalties) have been assessed against the foffowing-named taxpayer. We have made ??a 7 9 a demand for payment of this liability, but it remains unpaW. Therefore, there is a Mien In favor of the united States on aD property and rights to property belonging to this taxpayer for the amount of these taxes, and C- ? c additional penalties, Interest, and costs that may accrue. ; c- -j r r" C= :1 Name of Taxpayer WILLIAM J KALDES rnm -r up Residence 5908 STEPHENS XING MECHANICSBURG PA 17 0 6 41 ?" ' c d" , 05 - 867 r3 r NT RELEASE MFORMATION: For each assessment listed below, cn e of the lien is refiled by the date given in column (e), this notice shall, F 7 following such date, operate as a certificate of release as defined 1 RC 5(a). Tax Period Date of Last Day f or UnnpaW Balance Kind of Tax Ending Identifying Number Assessment Refflng of Assessment a) (b c d e 940 12/31/2006 23-2496826 05/07/2007 06/06/2017 466.85 940 12/31/2007 23-2496826 04/07/2008 05/07/2018 428.07 941 06/30/2006 23-2496826 08/13/2007 09/12/2017 13713.07 941 09/30/2006 23-2496826 04/09/2007 05/09/2017 9489.85 941 12/31/2006 23-2496826 05/21/2007 06/20/2017 8373.43 Place of Filing Prothonotary Cumberland County Carlisle, PA 17013 Total 1$ 32471.27 This notice was prepared and signed at DETROIT, MI the 06th day of June 2008 Signature A EXHIBIT for SEAN DUNLEAVY 109) Cl(NOTE: Certificate of officer autRev. Rul. 71-466, 1971 - 2 C.B. , on this, itle EVENUE OFFICER 22-06-1407 717) 777-9626 Is not essential to the validity of Notice of Federal Tax lien ?.-? lLOM/-\ ??-._ n new ?. Fl L,-- OF TI'l- r , ? nirr 12 A virY-:? ,. Tti # I - X/6- sa i4 I ??f gar/off Sheriff s Office of Cumberland County R Thomas Kline Sheriff t ~~~}qtr at ~;ri:irp~~.~~j~ Ronny R Anderson Chief Deputy Jody S Smith Civil Process Sergeant ~ ~~ ` ~ '~ ~~~'~ Edward L Schorpp Solicitor Fl! ~s.. r=, ~C~ ~F TN; ~~~;;r~,,~TAP,Y 209 A~;+~ 17 ~ii~l 9~ ! i -, ~ 1,,~ -1 ,- I~'f r.C ~ ,, i, ~~~,1 PC v ~tio ~ i..Vr j!,f+, Commerce Bank vs. William J. Kaldes Case Number 2009-5605 SHERIFF'S RETURN OF SERVICE 08/14/2009 R. Thomas Kline, Sheriff, who being duly sworn according to law, states that on August 14, 2009 at 1205 hours this Complaint in Mortgage Foreclosure upon defendant William J. Kaldes is returned not served per request from attorney Jack F. Ream. 08/14/2009 R. Thomas Kline, Sheriff, who being duly sworn according to law, states that on August 14, 2009 at 1205 hours this Complaint in Mortgage Foreclosure upon defendant Stephanie M. Kaldes is returned not served per request from attorney Jack F. Ream. SHERIFF COST: $44.00 August 14, 2009 SO ANSWERS, „_ R THOMAS KLINE, SHERIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANK/HARRISBURG T/D/B/A METRO BANK, Plaintiff NO.: 09-5605 CIVIL TERM vs. WILLIAM J. KALDES and STEPHANIE M KALDES and THE UNITED STATES OF AMERICA, Defendants Action in Mortgage Foreclosure TO: PROTHONOTARY OF CUMBERLAND COUNTY, PENNSYLVANIA. PRAECIPE TO DISCONTINUE ACTION Please discontinue and dismiss the abo aptioned matiter. ~~ ~ Dated: August 14, 2009 ack F. Ream, Esquire Ream, Carr, Markey & Vl/oloshin LLP 119 East Market Street York, PA 17401 Attorney I.D. #10241 Telephone: (717) 843-8968 Fax: (717) 846-6676 E-mail: JReam_639@comcast.net Attorney for Plaintiff Commerce Bank/Harrisburg t/d/b/a METRO BANK t3 ~..rr`'- p C ` ~ -n ~ ~ c-, ~~-+ ~ r ,,> ' ~ ,' ~C ~ C 4 ~i~_ - ern -~ ~ -~ O