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01-1209
COMMERCE BANK/HARRISBURG, N.A., Plaintiff FRANK J. COSTANZA and JOAN APPLETON COSTANZA, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW DoCI T NO. NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff(s). You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 (800) 990-9108 COMMERCE BANK/HARRISBURG, N.A., Plaintiff FRANK J. COSTANZA and JOAN APPLETON COSTANZA, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW DOCKET NO. NOTICIA LE HAN DEMANDADO A USTED EN LA CORTE. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita o en persona o por abogado y archivar en la corte en forma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso o notificacion y por cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o sus propiedades o otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO INMEDIATAMENTA. SI NO TIENE ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABA JO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 (800) 990-9108 COMMERCE BANK/HARRISBURG, : N.A., : Plaintiff : Vo FRANK $. COSTANZA and JOAN APPLETON COSTANZA, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW DOCKET NO. ~/- COMPLAINT IN MORTGAGE FORECLOSURE AND NOW, Plaintiff, Commerce Bank/Harrisburg, N.A., through its counsel, Metre, Evans and Woodside, brings this Complaint before the Court, in support of which it avers as follows: 1. Plaintiff is Commerce BankS-Iarrisburg, N.A. (hereinafter "Commerce Bank"), a national banking association with an office at 100 Senate Avenue, Camp Hill, Pennsylvania 17001-8599. 2. Defendant, Frank J. Costanza, is an adult individual who resides at 53 Honeysuckle Drive, Mechaniesburg, Pennsylvania 17055. 3. Defendant, Joan Appleton Costanza, is an adult individual who resides at 53 Honeysuckle Drive, Mechanicsburg, Pennsylvania 17055. 4. In 1998, Commerce Bank extended a commercial loan (hereinafter "Loan") to Defendants, individually and as partners d/b/a Phoenix Collective Intelligence, LLC, in connection with the start-up of a new business. 5. The principal amount of the Loan is $25,000, approximately $4,000 of which was to be used for the purchase of inventory and approximately $21~000 of which was to be used for working capital. 6. In consideration of the Loan and as evidence of the indebtedness, Defendants executed and delivered to Commerce Bank a note dated October 9, 1998 (hereinafter "Note"). A true and correct copy of the Note is attached hereto at Exhibit "A" and incorporated herein by reference. 7. On the same date and to secure the Note, Defendants duly executed and delivered to Commerce Bank a mortgage, a copy of which is attached hereto at Exhibit "B" and incorporated herein by reference (hereinafter "Mortgage"). The Mortgage was recorded on October 22, 1998 in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, at Book 1491, Page 102. 8. The land subject to the Mortgage is described as follows: 2 All that certain piece or parcel of land situate in Silver Spring Township, Cumberland County, (erroneously referred to in prior deed as Dauphin County) Pennsylvania, as set forth on a Final Subdivision Plan for Mulberry Crossing, Section Three, Wynnewood West Development Company, as prepared by Gannett Fleming Civil Engineers, Inc., and recorded in the Recorder of Deeds Office of Cumberland County, Pennsylvania, in Plan Book 49, Page III, and more particularly bounded and described as follows, to wit: Beginning at a point on the right-of-way line of Honeysuckle Drive at the dividing line between Lots Nos. 167 and 168 as shown on the aforementioned Subdivision Plan; thence along said right~of-way line of Honeysuckle Drive by a curve to the left having a radius of 175.00 feet, an arc distance of 59.50 feet, with a cord bearing North 52° 18' 24" East, a distance of 159.11 feet to a point at the dividing line between Lots Nos. 168 and 169; thence along same South 47° 39' 2" East 151.40 feet to a point; thence South 25° 16' 2" West a distance of 68.86 feet to a point at the dividing line between Lots Nos. 168 and 154; thence along same South 79° 20' 40" West, a distance of 60.77 feet to a point at the dividing line between Lots Nos. 168, 154 and 167; thence along the dividing line between Lots Nos. 168 and 167 North 28° 10' 12" West, a distance of 152.17 feet to a point, the Place of Beginning. Being Lot No. 168 on the aforementioned Final Subdivision Plan for Mulberry Crossing, Section Three, Wynnewood West Development Company. Containing 14,159 square feet, more or less. Under and subject to setback lines, easements and conditions as shown on the aforementioned Final Subdivision Plan and restrictions and conditions as set forth in the Declaration of Wynnewood West Development Company that is recorded in Cumberland County, Miscellaneous Book 308, Page 260. 3 Also, under and subject, nevertheless, to easements, restrictions, reservations, conditions and rights-of-way of record or viable upon inspection of premises. Being the same premises which Frank J. Costanza and Jean Ann Costanza, his wife, by deed dated January 14, 1995 and has been recorded immediately prior to the recording hereof, granted and conveyed unto Frank J. Costanza, grantor herein. 9. Pursuant to the Note and the Mortgage, Defendants covenanted and agreed that they would pay the indebtedness as provided in the Note and that the whole principal sum and interest would become due at the option of Commerce Bank in the event that Defendants fail to keep, observe or perform any of the covenants, conditions or agreements contained therein. 10. Specifically, pursuant to the Note, the "Borrower [i.e., Defendants] agrees that if default occurs on this Note * * *, Lender [Commerce Bank] has the option to make this Note * * * immediately due and payable." (See Exhibit "A" at pg. 1.) 11. Specifically, the Mortgage provides that: The Mortgagor covenants and agrees that if he shall fail to pay said indebtedness or any part thereof when due, * * * the entire indebtedness hereby secured shall immediately become due, payable and collectible without notice, at the option of the Mortgagee * * *." (See Exhibit "B" at par. 3.) 4 12. The Note was amended by written instrument dated September 30, 1999 (hereinafter the "Note Addendum"). A true and correct copy of the Note Addendum is attached hereto at Exhibit "C" and incorporated herein by reference. 13. The Note Addendum modifies the terms for certain payments which were to be made to Commerce Bank by Defendants during the months of August, September and October, 1999; otherwise, the Note Addendum "ratifies and confirms" the terms and conditions of the Note. 14. Defendants have defaulted in the performance of their obligations under the Note by failing to pay, inter alia, the monthly installments of principal and interest due as required under the Note. 15. By notice dated October 11, 2000, Commerce Bank provided Defendants with written notice of their default. A true and correct copy of the written notice is attached hereto at Exhibit "D" and incorporated herein by reference. 16. Defendants have failed and refused to cure their default under the Note. 5 17. Commerce Bank has called the Note and declares the unpaid principal balance, together with accrued interest, attorneys' fees and costs as provided therein, to be immediately due and payable. 18. The following amounts are currently due and owing Commerce Bank on the Note: Unpaid Principal Balance Under the Note (Exhibit "A") Interest Accrued and Unpaid As of February 19, 2001 ($5.94 per diem) (To be further calculated at the time of complete payment or collection) Late Fees as of February 19, 2001 (To be further calculated at the time of complete payment or collection) Attorneys' Fees and Costs of Suit TOTAL: $ 19,429.66 $ 1,531.82 $ 259.35 To be determined $ 21,220.83 (As of February 19, 2001) 19. In accordance with the notice requirements of 41 P.S. § 403 and 35 P.S. § 1680.402(c), Commerce Bank sent thirty days advance written notice of intention to foreclose by first class mail and by certified mail to the Defendants at their last known address and at the residence which is the subject of the Mortgage 6 being foreclosed, setting forth clearly and conspicuously the information required by law. 20. There has been no assignment of the Mortgage. 21. No judgment has been entered on the Mortgage in any jurisdiction. 22. The Mortgage is less than 20 years old. WHEREFORE, Commerce Bank/Harrisburg, N.A., respectfully demands that judgment be entered in its favor and against Defendants Frank J. Costanza and Joan Appleton Costanza in the amount of $21,220.83, plus interest at the per diem rate of $5.94, plus all costs of collection and costs of suit and attorneys' fees as provided in the Mortgage and as allowed by law. Respectfully submitted, METTE, EVANS & WOODSIDE Sut~p.C. Beneventano, Esquire t. I.D. #43107 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 Attorneys for Plaintiff Commerce Bank/Harrisburg, N.A. FEB-19-2001 14:00 COMMERCE BANK ?17 9?5 0581 P.02×03 .V~ERIFICATION I, David C. Amsdev., state that I hold the t~tle of Vice President/Asset Quzlity at Commerce Bank/Harr~burg, N-~., the Plaintiff in the above-captioned action, that I am authorized to make this Verification on its behalf, and that the facts set forth in the foregoing Complzint are true and con'eot to the best of my knowledge, information ~ belief. I understand timt my statements are made subject to the permlties of 18 Pa.C.S.A. ~904 relating to tm,sworn falzii%atlon to authorities. COMMERCE BANK/HARRISBUi~G, David C. Amsden Vice President/Asset Exhibit A MAR-O1-2001 14:03 $ 2_$,000.00 COMMERC~ BANK U.S. ,~mall Business Administration · .' NOTE For value received, the u~der~igned promises to pay to the order of ............ ......... Commerce Baak/Han'isb~E, N.A. (~y~) et ils office in the city et Ca~p Hill ........ ,State of (City and Sate) (Date) PA 975 0S81 P.02/10 SBA LOAN NUMBER -t Camp Hill PA O~ob~r 9 ................... 1 ~ ~8 or al beldams dption, at euah other place as may be designated from time to time by the hamer ............. Twenty-rive tlmusand (Write out amount) vd, th interest on unpaid principal computed from the riate of each advanoe to the undersigned at the rate of . l0 Floatin. g annum, payment to be made in installments as follows: The interest rate on t~is Note will fluctuate, Tbs inifinl interest rate ia ! 0% per y~a'. This intlial rate is rite prLme rate on t~e date SBA received the loan application, plus 1.5%. Borrower must pay principal ami interest paymen~ of $531,18 every month, be~nnh~g two months t'om the month of this Note; payments must be made on the tn'st calendar day in the mooths they are due. Lender will apply each instellmeal payment first to pay interest accrued to the clay Lander receives tho payment, than to bring principal curront~ thee to pay any late fees, and will apply any remaining balance to rednce prinaipaL Lender may adjust tho interest rate for the fiat time no earlier than the fiat ca]cedar day of the first month after initial disbursement. Tile interest rate will then bo adjasted quarterly (the "change period"). The "Prime Rate" is the primo rate published in the Wall Street .loumal, in e~cot on the t~rs~ business day of the month in which a chan~e occurs. The adjusted interest rate will be 1.5% above the Prime Pate. Lender will adjust the interest rate on the fu~t calendar day of each change period. The change in interest rate is effective on that day whether or not Lender §ives Borrower notice of the change. Tho amount that the interest rate on this Note may vary is limilod by a floor and a ceiling: (1) The maximam ir~terest rate (ccilin§) will not exceed $% above the initial interest rate, and the minimum intmest rate (floor) will not be loss than .5% below the initial interes! rate ualeas there is a change in the prime rate between the date SBA receives the Loan application and the data of final disbursement. (2) Iftbe prime rate increases between those dates, the difference between the prime rata on those two dates will be added to h% ceiling rate and sublracted fi.om the floor rate that was calculated in (1) above. (3) Ii'the prime rate decreases between those dates, the difference between the prime rata on those two dates will be subtracted from the ceiling rate calculated in (I) above, Lender must adjust the payment amount at least annually as needed to amortize principal aver the remainln~ term of the note. If SBA purchas~ the guaranteed portion of the unpaid principal balance, the interest rate becomes fixed at the rate in effect a~ the tiree of the earliest uncured payment default. Ii'there is no uncured payment default, the rate becomes fixed at tho rate in effect at the thee of purchase. All remaining principal and accrued interest is duo and payable 5 ye~s) from date of No!e. Borrower agrees that if dafaalt occurS on this Note or an any other outstanding SBA or SBA-$uaranteed loan, Lender has ~he optioa to make this Note and such other loans immediately due and payable. Late Charge: Ifa payment cm this Note is mote than 10 days late, Lender may charge Borrower a late fee of ap to 5% afro unpaid p~rtion of the zegulatly scheduled payment. 3. Lender, at its option, may include confession oi'judgm~nt clauses in the Note for bonower(s) resident in Pennsylvania, .... dollam, percent per If thb Nots contains a fluttering interest rate, the notice provision ~s not a pre-condition ~or fluctuation (which shall take pteco regardless of notice). Payment ~f any installment of principal or interest owing on this Note may he made prtor to the maturity date thereof ~ut penalty. Barrow6r shall provide lender with wotten notice of intent to prepay part or all of thl~ loan at least three (3) weeks prior to the anticipated pre~ym~t date. A prepayment is any payment made ahead of schedule that exceeds twenty (20) per- cent at' the then outstanding prthctpal balance. I[' borrower makes a prepayment and fails to give at toast three weeks advance notice of Intent to prepay, then, notwit~tanding any other provision to the contrai'y in this note or other docoment, borrower shell be required to Pay lender thr~e weeks interest on the unpaid principal aa of the date preceding SUch prepayment. elBA F~rm 147' (S-e?) Previous edition Obsolete Page 1 T8ott Finonoiai Sari. ware, Inc. ~ lg94 - lg96 oma Approval No. S~4~L~II b1AR-01-2001 14:04 COMMERCE BANK 717 cJ?5 0581 P.0~/10 -'.~ Tf~ete~m'lndel~tedness'asusm~ ' .ichallrnaantheindedtsdnessavideocadbyti '.,iocludingp~r~ipaI, int~rastand expenses, whether contingent, now dt~m.or hereafter to become due and whether herelofere or ¢onteml~mneeo~ly herewith or here- after contmCted~ The te~ "Collateral" as used In this Note shall mean any funds, guamntiex, er other pmpen'y or rights therein of any nature whatsoever or the proceeds thereof which may have been. ara, ar he,"~after may he, hypothecated, direcify or Indirectly by the undersigned er athos, in connection with, or as security for, the Indebtedness or any ~ thereof. The Collateral, and each part thereof, shall secure the Indebtedness and each pat thereo[ The covenants and conditions set forth or referred to in any and all in- strorneois of hypethecadeo rensti~utlng the Collateral are hereby Incorbereted in this Note as covecante and conditions of the under. signed with the same force and e~fect as though such covenants and condltid~ were fully set fo~lh herein. The thdebtednoss shall immediately become due end peyabfa, without notice or demand, upofl the appointment of e receiver or liquidator, whether volunta;y or involuntary, for the undersigned or for any cf its property, or upon the filing of a i=atition by or against the undersigned under the provisions of any State insolvency law or ueder the provisions of the Bankruptcy Raters Act of 1978, as amended, or upon the maidng by the undersigned of an assignment for the benefit of its craditom, Holder is et~horized to declare all Or any part o! the thdabte(Jness Imrr'~dietely due and payebte upon the hagpanthg of any of the following events: (1) Failure to pay any pert of the indebtedness when due; (2) nonperformance by the undersigned of any agreement with. or any condit~;m imposed by, Holder or Smell Business Admlrfi~tration (hereinafter called 'SBA"). with respect to the indebtedness; (3) Holder's discovery of the undereigned'e failure in any application Of the undersigned to Holder or SBA to dleslo~e any fact deemed by Holder to be material er of the making therein or in any of the maid agreements, or in any affidavit or ali',er documents submitted in connection with said appit- cation or the indebtedness, of any misrepresentation by, on behalf of. or for the benefit cf the unde~igned; (4) the raorgan[;:aflon (other then a reorganization J3ura~'ant to any of the provisiop-,s of the B~nkruptoy Refon'n ACt of 1978, as amended) or merger or con- solldat~on Of the undersigned (or the maidng of any agreement therefor) without the prior written consent of Hold~; (5) the under- signad's failure duly to account, to Holder's sattsfacfl~, at such time or times es Holder may require, for any of the Collateral, or pro- reeds thereof, coming into the control of the undersigned; or (6) the institution of any suit affecting the undersigned deemed by Holder to affect adversary its interest hereunder in the Collateral or bthe~vise. Holder's failure to exendre Its rights under this paragraph ahait not constitute a watver thereof. Upon the nonpayment of the thdeb',ednsss, or any part thereof, when due, ~Vnofher by acceleration or otherwise, Holder is em. powered to sell, assign, and deliver the w~le or any part of the CollPateral at public or private sale, without demand, edve.'ttsament or nntlna of the time or place Of sale or of any adjoummeot thereof, which are hereby expressly waived. After dedecting all expenses cidentel to or arising fram such sate or :~ales, Holder may apply the residue of the proceada thereof to the payment of the Indebted- ness. as ~t shall deem Ixoper, refusing the excass, if any, to the undersigned. The underelgm~d hereby waives all right cf redemption or appraisement whether before or after sale, Holder is further em~verud to collect or cause to be collected or otherwise to be convated Into money all or any part of the Col;ateral, by suit or uthaneise, and t~ sun'ender, coal.'cruise, release, renew, extend, exchange, or substitute any item ct the Col- lateral in transactions with the undersigned or any third party, irrespective of any assignment thereof by the undersigned, and without prior notice to or consent of the undersigned or any assignee, Whenever any item of the Collateral shall not be paid when due, or otherwise shall be in default, whether or not the indebtedneas, or any pat thereof, has become due, Holder shall have the same dghts and powers with reapect to such item of the Collateral as ara granted in this paragraph in case of rmnpeyment of the Indebtedness, or any part thereof, when due. None Of the rights, remedies, ptiv{leges, or pewsrs of Holder expressly ~'ovlded for hera{n shell be ex- blusive, but each of Ihem shall be cumuisllve with end tn addition to every ethel right, remedy, privilege, and power row or hereafter existing In favor of Holder. whether at law or equity, hy statute er otherwise. The undersigned agrees to take ail necessary steps to edmloleter, super'vise, preserve, and protect the Collateral; and regardless Of any action taken I~y Holder, there shell be no duty upon Holder In this respect. The unde~Jigned shall pay all esbenses of any nature, whether incurred in or out of court, and whether incun'ed before or after this Note shall become dee at Its maturity d~ts or otherwise. Including hut nat limited to reasonable attorney's fees and costs, which Holder may deem necessary Or paper In connestion with the satisfaction of the Indebtedness or the administration, aupervtsion, presawation, pmte~on Of (Including, but not limited lo, the maintenance of adequate Insurance) or the reallzaiton upon the Collateral. Holder ts authatzed to pay at any time and ['rom time to time any er all of such exgensss, add the amount Of such payment to the amount of the Indebtedness, and charge Interest thereon at the rate sbecit]ed herein wilh respe~ to the Ixinotpet ercount Of this Nots. The security rights of Holder and its assigns hereunder shell not be impaired by Holde;'s sate. hypothecatJen or rehypothecation of any note of the undersigned or any item of the Cctlateral, or by any indulgence, Inclu~ling but not limited to (a) any renewal, ex-ten- sion, or modification whic~ Holder may grant with respect to the Indebtedness or any pa~t thereof, or (b) any sumander, compromise, release, renewal, axteosion, exchange, or subetifution which H~der may gram in respect of the Colistaml, or (c) any Indulgence granted tn respect of any end;omar, guarantor, or sorely. The purchaser, assignee, transferee, or pledgee of this Note, the Collateral. and guaranty, end any other document (or any of them), sold, assigned. '~'anstsrred, pledged, or rebledged, shall forthwith become vested with and entitled to exercise all the ppwem and ~ghts given by this Note and all applications of the undersigned to Holder or SBA, as if said purahesar, assignee, transferee, or pledgee were originally named as Payee In this Note end in said application er applications. S~ F~r~ t4'/¢~r:~) ~,~s Am~,~=~ t~o, ~.o3e~ ~, ~ TS, off Financial SoK-waro, Inc. ~ 1994 - 1996 MAR-O1-2001 14:04 COMMERCE BANK ?17 995 0581 P.04/10 Tt31s promissory n0te i,~ g:ven [o s~ , Inert which SBA ~s making er in which ~t ~s par. · ,lg and, pumusnt to Part 101 of the Rules ai3d Regulations of SBA (13 ,.;.F.R. t01.t(d)), this Instrument is to be construed end (when $~ Is the ~inldar or a party in intera~t) enforca~l, in accordance with applicable Federal law, by: by: Phoenix Collectlv.e. Intelligence, LLC ally Note. - Co~te applicants must execute Note, In corporate name, by duly authorized officer, and seal must be et§xed arid dviy attested; part- net',hip appllcaNs must execute Note In §rm name, together with signature o! a general partner, SBA Form 147 (5-.87] OMB Approval No. 3245-020t P~e3 TS[fit Financial SoSwam, Inc. O 1994 - 1996 Exhibit B MAR-O1-2001 14:05 COMMERCE BANK ?17 9?5 0581 P.05/10 MORTGAGE (Participation) This mortgage mede and entered into this 0th ..... day of_. · by and between .Emnk J. Costanza a. od_Joan Appleton C.ostarLza (hereinafter referred to as mortgagor) end Commerce Bank/Harrisburg, N._A. October lg98 __ (hereinafter referred to as mortgagee), who maintains an ol~ce and place of business et 10.0,,.Senate Avenue P.0_,.Box 8599 Camp Hill PA 17001 WiTNESSETH, that for the consideration hereinafter stated, receipt of which is h~'aby acknowledged, the mortgagor does hereby mortgage, sell, grant, assign, and convey unto the mortgagee, his successom and assigns, all of the following described property situated and being in the County of _C.u...mbedand ........ State of _PA See attached "Exhibit A". Together with and in~udlng all buildings, all fixtures including bu~ not limited to ell plumbing, heating, lighting, ventilating, refrigerating, incinerating, air conditioning apparatus, and elevators (the mortgagor hereby declaring that it is intended that the items herein enumerated sharl be deemed to have been permanently installed as part of the re. altyJ, end ell [mpmvement~ now or hereeRer existing thereon; the heredltaments and appur~enancns and ail other rights thereunto belonging, or in anywise appertaining, and the revemion and revemlcns, remainder and remaindem, all dghts of redemption, and the rents, issues, and profits of the above described probeiT/(provided, however, that the mongogor shaJl be entitled {o the"l~x.~e~s'i~m of said pmparb/'~hd to collar and refain the'rents, isSUes, and profits until dofauit hereunder). To have and to hok:l the same unto the mortgagee and the successors in interest of the mortgagee forever in fee simple or such other estate, ii' any, es is stated herein. The mortgagor covenants that he is lawfully seized and possessed of and has the dght to sell and convey said property; that the same is free from a~l ercumbrancas except as hereinsbeve ro~Itad; and that he hereby binds himself and hie s~_~sors in internst to warrant and defend the title aforesaid thereto and eve~'J part thereof against the claims cf all pemon~ whomsoever. Thla Instrument is given to secure the payment of a proml~ory note dated October.9~ ,1 ~9.~. ....... In the principal sum of $ 25,000 signed by .Frank J. Costanza ...... Joan Appleton Costanza in behalf of Phoenix Collective Intelligence, LLC SBA FORM 928 (1'1-8~) USE 2-78 EDITION UNTIL EXHAUSTED .TSoft Fi~nelal Software, Inc. © 1994.1996 MAR-01-~01 14:05 COMMERCE BANK 717 g?5 0581 P.06×10 Said promissory note was given to secure a I~ 1 which the Small Business Administration, an a~. ~' of me United Htatas of America, has pa~cipated', In compliance with section 101.1(d) of the Rules and Regulations of the ~rnail Business Adm, iniatratJan [13 C.F.R, 101,1 (,cI)], this Instrument is to be consffued and enforced in accordance with applicable Federal law'. l. The mortgagor covenants and agrees as follows: a. He will promptly pay the indebtedness evidenced by said pn3missory note at the times and in the manner therein provided. b, He wJlJ pay ail taxes, assessments, water rates, and other governmental or municipal charges, fines, or' impoaltlone, for which provision has not been made hereinbefore, and will promptly deliver the official receipts therefor t~ ~ said rnortgages, c, He will pay such expenses and fees as may be incurred in the protection and maintenance of said property, including the fees of any attorney employed by the mortgagee for the collection of any er all of the indebtedness hereby secured, or foreclosure by mortgages's sale, or court prncoedings, or in any other litigation or proceeding affecting said property, Affomeys' fees reasonably incurred in any other way shall be paid by the mo~gagor. d. For better security of the indebtedness hereby secured, upon the request of the mortgagee, ~ suCCessors or assigns, he shall execute and deliver s supplemental mortgage or men, ages covSdng any additions, improvements, or betterments made to the property hereinabeve dasc, n'bed and ali proper~y acquired by it aft~ the date hereof(all in form satisfactory to mortgagee). Furthermore, should mortgagor fail to cure any default in the payment of a prior or inferior encumbrance on the property daschbed by this instrument, mortgagor hereby agrees to permit mortgagee to cure such default, but mortgagee is not obligated to do co; · and suc~ advances shall become.part of the indebteeceSe secured by ~his instrument, subject to the·same terms and conditions, e. The rights ~ested by this conveyance shall remain in full force and effect dudng any postponement or extension of the time of the payment of the indebtedness evidenced by said promissory note or any part thereof secured hereby, f, He will continuously maintain hazard insurance, of such type or types and in such amounts as the mortgagee may from time to time require on the improvements now or hareafter on said property, and will pay promptly when due any premiums thereof. A~I insurance shall be carried in companies acceptable to mortgagee and the policies and mnawais there,'shell pa haiti by mortgagee and have aaached thereto W=s payable clauses in favor of and in form acceptable to the mortgagee, In event of loss, mortgagor will give immediate notice In writing to mortgagee, and maAgagee may make proof of Ins~ if not made promptly by mortgagor, and each insurance cornpeoy concerned is hereby authorized and directed to make payment for such loss directly to mortgagee instead of to mortgagor and mortgagee Jointly, and the insurance proceeds, or any part thereof, may be applied by mortgagee at its option either to the reduction of the indebtedness hereby secured or to the restoration or repair of the property damaged or destroyed, In event of ~oreclesure'of this mortgage, or other ~rensfer of title to said proper~y in extinguishment of the indebtedness secured hereby, ail Hght, title, and Interest of the mortgager in end to any insurance policies then in tome shall pass to the purchaser or mortgagee or, at the option of the mortgagee, may be surrendered for a refund. g. He will keep all buildings and other improvements on said property in go<x~ repair and condition; wilt permit, commit, or suffer no waste, impairment, deterioration of said property or any part thereof;, in the event of failure of the mortgagor to keep the buildings on said premises and tho~e erected o{1 said premises, or Improvements thereon, in good repair', the mortgages may make such repairs as In its discretion it may deem neces..'~,3ry for the proper preservation thereof; and the full amount of each end every such payment shall be immediately due and payable; and shall be secured by the lien of this mortgage. h. He will not vcluntariry create er permit to be created against me properly suPject to this mortgage any lien or ITens lnfador or superior to the lien of this mortgage without the v~tten consent of the mortgagee; and further, that he will keep and maintain1 the asme flee from the claim of all persons supplying labor or mbtedais for conetructio~ of any and all buildings or improvements now being erected or to he erected on said premises. i. He will not rent or assign any part of the rent of said mortgaged properly or demolish, or remove, or substantially alter any building without the wMtten consent of the mortgagee. j. Att awards of damages in connection with any condemnation for public use of or injury to any of the property subject to this mortgage are hereby assigned and shall be paid to mort'gages, who may apply the same to payment of the installments last due under said note, and mortgagee is hereby authorized, in the name of the mortgagor, to execute and deliver valid st.,quittances thereof and to appeal from any such award. k. The mortgagee shall have the rignt to Inspev't the m~'tgeged premises at any ressonaPle time. 2. Default in any of the c~venants or conditions of this insti'ument or of the note or loan agreement secured hereby shall terminate the mortgager's Hght to possession, use, and enjoyment of the proper'['y, at the option of fie mortgagee or his assigns (it being agreed that tpe mortgagor shall have such rignt until default), Upon any such default, the mortgagee shall become the owner of all of the rents and profits accruing after default as security for the indebtedness secured hereby, with the right to enter upon said property for the puq3ese of cclJecting such rents and prof, s. This instrument shall operate as an assignment of any rentals on said property to that extent. SBA FORM 928 (11-85) Tact P]nanci~ $o/%sare, Inc. © 1994 - 1996 o Ki49i.P'Aq i03 MRR-01-2001 14:06 COMMERCE BgNK 919 9?5 0581 P.07/10 3. ~e moA~g~ ~e~a~s a~ agr~ ~at ~ ne s~lJ fail to pay said i~e~nas or any ~ thbreof wheq d~, or q~ll ~il ~ peEo~ e~ ~e~nt or eg~ment ~ t~is ins~ment or ~e pmmi~ note s~ured hereby, me entire indian, s hereby s~ur~ shaLl imm~iatel~ b~e due, ~ble. and ~l[~ible ~out notice, at the opion ~ the ~ag~ or ~signs, ~ardt~S of and ~e ~Agagee or his assig~ may ~m ~ a~r enW sell ~id pm~ wit~ app~isement (~e ~agor ~ing ~iv~ and a~ign~ ~ the ~ag~ all ~gh~ ~ appmiseme~): (I) at Judicial sale pum~ ~ ~e pmv~lo~ M 28 U.S.C, 200~ ia); or (11) at ~e option of the ~Agagee, ~t~r by a~ion or by soli~fion ~ s~l~ bids, ~r the high~t a~ b~t bid ~mplylng with ~e te~s Df sale and ~n~r of ~ym~t sp~ In the publlsh~ nott~ of saJe. flint giving four ~' n~ce ~ the time, te~s. a~ pla~ of such ~le, ~ ~ve~eme~ n~ I~ ~an on~ dudng ~ of ~ld four weeks in a n~pa~r publish~ or dis~bu~ in the ~un~ in ~ich said pm~ is sit~, all other no~e being hereby waived by ~e ~gag~ (a~ said ~ee, orany ~mon on ~half ~ said ~Agag~, may bid with the un~id indeM~n~ e~den~ ~ ~ld note). ~ld sale s~ll be held at or on ~e pro~ ~ ~ sold or at the F~eml. ~u~, or ~ cou~o~e for ~e ~u~ in ~i~ t~ ~ I~t~. The ~gag~ Is h~ a~orlz~ D ~e~e ~r and on ~aif ~ ~e mo~gagor and D delNer ~ ~e pu~er at su~ sale a s~ci~t ~nveyaAce of said pm~Ay, whl~ ~nveyan~ s~ll ~n~[n ~lffils ~ to the ~p~ni~ of ~ ddault u~n w~ch the ex~uflon ~ ~e ~er of ~le ~erein gmflt~ de~nds; and the ~ld mo~gagor hem~ ~nst~ a~ the mo~gagee or any agent or aB~ of the moKg~, the agent and aflomey In ~ of said ~gagor to ~ke such ~l~ls and to ~e ~id ~nv~nce and her~y covenan~ a~ agm~ ~ the r~ls so ~e shell be eff~al ~ ~r ail ~i~ or right ef r~empfi~, home.ad, d~er, a~ all ~h~ ex~pfio~ of the ~gor, ell ~ ~i~ am hereby ~sly wa~ and ~yed to ~e mo~ag~; or (111) ~ a~ ~et apptopda~ actioe pum~ ~ s~te ~ F~eml ~e ~ther in s~te or F~eml ~u~ or ~e f~ the d~on ~ the pm~ ..... · In the avant ~ a ~Je as hereinb~om ~vid~. the ~Agag~ ~ any p~o~ in ~ion under the mohair shall t~n a~ ~ te~ ~ldlng ~er and s~ll ~ d~ber p~s~ion ~ ~e ~m~er at su~ sale ~ ~ summarily d~s~. Iff a~rdan~ w~th ~e ~sio~ of law appli~ble lo te~ ho~di~ ~er. ~e ~ a~ agency hereby gmn~ em ~pl~ wlffi an i~t and are i~ble by d~ or oth~ise, end are gm~ ~ cumulative ~ the rem~i~ ~r ~lle~on ~ ~id p~d~ Dy ~w. 4. ~e p~e~s of a~ sale ~ said ~ in a~ance wi~ the ~l~ ~g~h~ s~ll ~ ap~ll~ flint ~ ~y ~e ~ a~ ex~ns~ of said sale, the ex~ in~ by ~e mo~g~ ~r the pu~e ~ ~ting or ~ining ~ pm~, and r~sonable ~orneys' f~; se~ly, to pay the i~ebt~n~ s~ur~ hereby; a~ thinly, ~ ~y any su~l~ or exc~s ~ ~e p~ or I~aily ent~ thereto. 5, In ~e event said pm~y is ~ld at a judicial ~r~um sa~e or pumuant to the ~er ~ sale.herei~ve g~, and the p~s ere ~ s~cient ~ ~y the ~1 ind~t~n~s secur~ by ~is in~mme~ and e~Oenc~ ~ said pmmi~o~ no~, the ~11 ~ enfitl~ ~ a d~cien~ judgment for ~e amount of ~e defic[en~ ~o~ r~a~ ~ a~miseme~, 6. In ~e ~enl the mo~ga~r ~ils to ~y any F~eml, ~, or local ~x ~ment, income ~x or o~er t~ lien. charge, f~, or ~er ~nse ~ agai~t the pm~ ~e ~agee Is hereby auffio~ at hb option to ~y the same. A~ su~ so ~ld ~ the mo~gagee shall ~ add~ ~ and ~me a ~ ~ ~e pdn~l amount ~ ~e ~ndebt~n~ ~id~c~ by said note, subj~ ~ ~e same te~s and ~it~ons. If~e mo~agor shall ~y and d~c~e ~e Inde~n~ evidenced by said pmm~ n~e, and s~ll ~y su~ sums and s~ll disease all ~ and li~s a~ ~e ~, f~. a~ expens~ of ~ki~, enfor¢l~, a~ e~uflng ~is reD.age, ~en th~ mo~gage s~ll ~ ~n~l~ a~ surrender. 7. ~e ~venan~ heroin con~in~ s~Jl bi~ a~ ~e ~n~ and a~n~g~ s~ll inure to ~e r~pe~ve su~m end of the ~ hereto, ~enev~ us~. ~e singular numar shall in~e ~e plural, the plu~l the si~ular, a~ ~e ~e of a~ ge~er s~ll incl~e all gendem. 8. No ~Ner ~ any ~e~nt heroin ~ of the o~i~afi~.~ s~U~. her~y~ll at,any ~me ~er~Rer be heJd to ~ a ~i~r of the t~s her~ or of ~e ~e'secur~ heY~by. 9. A judicial d~me. order. Or j~gment holding any prov~ion or ~ion ~ th~ ~mem invalid or unenfor~able s~ll ~t In any way impair or prelude the enfomem~t ~ ~e m~inlng pmvisio~ or ~o~ of ~Js i~ment. 10. ~y wdE~ notice ~ ~ ~u~ ~ ~ mo~gag~ p~muant to ~e pmvabns ~ ~ i~tmment s~ti ~ ad~ to the ~dga~r ~3_Hpn~ysuckle DHve Mechani~bu~.~ 17055 andany~aen~tl~bel~u~mt~mo~g~shall ~ addrms~ to ~e mo~ag~ at Commeme Ban~H~., N.A. 100 Senate Ave. PO Box 8599 Camp Hill PA17001~599 SBA FORM 928 (11-85) TSoff Rnanc[a] Sol. rare, Inc, @ lgg4 - 1998 i~r-o~-~oo~ ~4:o6 coi~erce B~NK 717 ~J?5 0581 IN WITNESS WHERE.OF; the rn~?gagor he,-...xecuted this instrument end the moi't, gsgee has ec...pted deliver/of this instrument as of the day and year atoreaa[d. P.08/10 Executed and delivered in the presence of the ~llowthg witnesses: The loan secured by this llen was made u~der a United States Small Business Administration (SBA) nationwide program which uses tax dollars to assist small business owners. If the United States is seeking to enforce this document, then under SBA reguJetJolls: a) When SBA is the holder of the Note, this document end all documen~ evidencing or securing this Loan will be construed in eccordanoa with federal law. b) Lender or SBA may use Iooal or state pmcedu~s for purposes such as filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using these procedures, SBA does not waive any federal immunily from local or state contro~, penaEy, tax or I~billty. No Borrower or Guarantor may claim or aaser~ against SBA any local or state law to deny any obligation of Borrower, or defeat any claim of SBA with respect to this Loan. Any clause in this documer~ requiring srbitzation is not enforceable when SBA is the holder of The Note secured by this instrument. (Add Appropriate Ac. know~:lgment ) INDIVIDUAL ACKNOWLEDGEMENT STATE OF Pennsylvania COUNTY OF Cumberland On this, the 9th day of October, '~998, before me Cheryl A. Fleming, the undersigned Notary Public, personally appeared Frank J, Costanza and Joan Appleton Costanza, known to me (or satisfactorily proven) to be the person whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. ~ / ;~ewwe.,Yo~XC. oa~ I [ ~ ' ~ ' ' ~ ~ ~~.~ I ~'~ / ~ ~ No~ Public in the S~te of Pennsylvania TSoft Financial Software Inc. ~ 1994 - 1996 , 0od.491. M~R-0~-200~ ~4:07 COMMERCe_ ~NK ?~? 9?5 05~ '~iate of Pennsylvania '[ County of Cumber!andJ flecQrded in,the office for the recor ting of Deeds in~j~oe~L.[~.._Vo~, .. Page C~rIi~A tfl~. . ~ay~ Exhibit C MAR-Oi-200i 14:07 COMMERCE BANK ?17 975 05-~1 M.10/10 a Note dated October 9, 1998, in the principal amount of Twenty Five ThouSand ($2B,000.00) Dollars (herein Note) given by Frank J. ¢ostan~a and Joan Appleton Costanza, indivldually and on behalf of Phoenix Collective Intslligencs, LLC (herein Borrower) to Comme~ce Bank/Harrisburg, N.A. (herein Bank). The parties agree to amend the repayment terms of said note as follows: The payments due August 1, September 1 and October 1, 1999, shall be payments of interest only, based ~pon the then outstanding principal balance of the loan. commencing November 1, 1999, Borrower shall resume payments of principal and interest as calculated in the Note. The due date of said Note shall be extended to January 9, 2004. All other terms and conditions of the note are ratified and confirmed. In witness whereof, the parties have hereunto set their hands and seals the date and year firstwritten above. Attest: Exhibit OCT-ll-~000 l~:~B CONME~CE B~NK ~l? g?$ ODB1 P.O./O? O~tober 11, 2000 ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is aa official notice that the mortgage on your home is in default a~d the lender intends to foreclose. Specific information about ~e nature of the default is provided in the atlached pa~es. The HOMEOWNER'S MORTOAOt~ ASSISTANCE PROGRAM (I-IEMAP) may be able to help to save your home. Thia Not,ce eocolains how the pro. gram works, To see if HEMAP can help. you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you me~t with the Counsciin~ A~enev. The nme. address and phone number of Consumer Credit Counseling Agencies serving your County are listed at the end of the Notice. If you have any auestinns, you may call the Pennsylvania Housing Finance Agency toll flee at 1-800-342-2397. (Persons with impaired heeringcan call (717) 780-I 869.) This Notice contains important legal information. Il'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 sssociafion may be able to help you find a lawyer. LA NOTIFICACION EN AD JUNTO ES DE SUMA IMPORTANCIA, PUE. S AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDIT~E LLAMANDO ESTA AGF. NCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MOKT(~AGE ASSISTANCE PROGRAM" EL CUAL FUEDE SALVAR SU CASA DE LA PERDIDA DEL DE1LECHO A REDIMIR SU HIPOTECA. 0CT-11-2000 13:39 COMMERCE BANK 717 9?5 0581 P.03/07 Frank J. Costa22za Joan Appleton Costanza 53 Honeysuckle Drive Meehanicsburg, PA 17055 Property Address - 53 Honeysuckle Drive, Mechanicsburg, PA 17055 Loan account number - 2360974007 Original leader - Commerce Bank/Harrisburg, NA Current Leader/Sewicer - Commerce Bank/Harrisburg, NA HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU ~4,Y BE ELIGIBLE EORFL4.NANCIAL ASSISTANCE WHICH C.4~N SAVE YOUR HOME FROM FORECLOSURE AND HELP Y~)U MAKE FUTJ.~RE 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 OTIqER ELEGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE---Under the Act, you are eafitied to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" m~ting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. Itt YOU DO NOI 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 ageacies listed at the end of this notice, the leader may NOT take action against you for thirty (30) days after the date of this meeting. The names, ~ddrcsses and telephone numbers of desim'~ted 9onsum~r cr~tit counseling a[tencies for the county in which the ptop. erty is locateat are set forth at the ea~i 9f this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender/mm~liat~ly of your intentions. 0CT-11-2000 13:39 COMMERCE BANK 917 9?5 0581 P.04/07 ~PPLICATION FOR MORTGAGE ASSISTANCE--Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specLfic/nfornlafion about the natur~ of your default.) If you have tried and a~ unable to resolve this problem with the lend,r, you have the sight to apply for financial ass/stance from th~ Homeowner's Bmergancy Mortgage A~sistance Prograro. To do so, you must fill out, si~n and file a completed Homeowner's Bmergency Assistance Progrnm Application with one of the dcsignated consumer a'oclit counseling agencies listed at thc end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in subtrfitting a complete application to the P~ausylvan/a Hou~hig Finance Agency. Your application MUST bc filed or postmarked within thirty (30) days of your face-w-face meCdng. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIIVlE PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTiON--Available funds for emergency mortgage ~sslstance are very limited. They will bo 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 TI-IF, FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE I$ FOR INFORMATION PURPOSES OI~Y AND SHOULD NOT BE · CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have f'fled bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (]ir/lag it ~p to date). NATURE OF THE DEFAULT--The MORTGAGE debt hdd by the above lender on your property located at: 53 Honeysuckle Dr/ye, Mechazficshurg, Cumberland County, Pennsylvan/a IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: July I, 2000 - $582.00 plus late charges, August I, 2000 - $582.00 plus late charges, September 1, 2000 - $552.00 plus late charges, and October 1, 2000 - $582.00 TOTAL AMOUNT PAST DUE: $2,441.85 0CT-11-2000 I~:40 COMMERCE SANK 717 g?S 0581 P.OS/O? HOW TO CURE THE DEFAULT--You may cure the default w/thin THIRTY (30) DAYS of the date of this not/ce BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $2,441.85, PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHiCH BECOME DUE DURING THE THIRTY (30) DAY PERIOD, Pav~n~nts must be made either by cask ca~h/er's check, amifiedcheck or ntonev o~er made payable and sen~ ~o: CommemeBenk, HerrisburgN.A. 100Sea,cAyenne P.O. Box 8599 CampHilLPA 17001-8599 IF YOU DO NOT CURE THE DEFAULT If you do not cum the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelera~te the_mortgage debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose thc chance [o pay thc mortgage in monthly installments. If£ull payment of the to~ amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal ~ction to foreclose upon your mortgaged properP/, IF THE MORTGAGE IS FORECLOSED UPON~The mortgaged property will be sold by the Sheriff to pay offthe mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal pwceedings 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 proce~Kugs are started against you, you will have to pay all reasonable attorney's f~s actually incurred by the lender oven 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 wRhln ti~e THIRTY (301 DAY oer, i0d, yo~ 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, I~IGHT TO CURE THE DEFAULT PRIOR TO SI~RIFF'S SALF.,--If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceed/uts 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 payir~ the total amount then past (JtIe. pins any late or other charges then dun, reasonable attorney's fees pnd~.osts connected with the foreclosure ~ale ~d any_other costs connected with the Sheriff's Sale as specified in writir~ by thc lender and lty performin~ any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore yo,,r mortgage to the same position as if yon had never defaulted. EARLIEST POSSIBLE SHERIFF'~ ~ALE DATE~It is estimated that the ear~iest date that such a Sheriff's Sale of the mortgaged property couid be held would be approximately six months from the date of this Notice. A notice of the actual date of 0CT-11-2~ 13:48 COMME~CE BRNK 917 975 0581 P.86/07 tho 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 ~nd out at any time exactly what tho required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Phone Number: Fax Number: Contact Person: Name of Lender: Commerce Bank, Harr/sb/~rg N.A, Address: 100 Senate AYenue, P.O. Box 8599 Camp H/I~ PA 17001-85~9 (71~ 97~0 D~d C. Amsden, Vice P~sident EFFECT OF SHERIFF'S SALE--You should rea//ze that a Shedf£s Sale will end your ownership of the mortgaEed property end your right to 0ccllpy it. If you continue to live in the property after the Sheflff's Sale, a lawsuit to remove you aml your furnishings and other bclonl//ngs could be started by the lender at any time. ASSUMPTION OF MORTGAGE--You may or_X_may not sell or transfer yom* home to a buyer or tramferee who will a~sum~ the mortgage debt, prov/ded that ali thc outstand/nS payments, char~es and attorney's fees and costs arc pa/d pr/or 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 INSTrrUTION TO PAY OFF THLS DF, BT. TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF TO HAVE THE MORTGAGE KESTOR,ED TO ~ 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 TIM~S IN ANY CALENDAR Y~AR.) TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUrr INSTITUTED UNDER THE MORTGAGE DOCUMENTS, TO ASSERT ANY OTI-I]~ DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY TH~ LENDER. TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. OCT-~.i-2B~ 1~:41 COI~I~ERCE ~P, NK 717 9"~3 0,.~1 P.O?/~'] COFISUrvlER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY CCCS of W~stcrn Pennsylvania, Inc. 2000 Linglestown Road · Harrisburg, PA 17102 (717) 541-1757 FAX (717) 541-4670 Community Action Commission of the Capital Region 1514 Derry. Stmet Ha,'r/sburg, PA 17104 (717) 232-9757 FAX (717) 234-2227 Urban LeagUe of Metropolitan Harrisburg 2107 North Sixth Str~t Harrisburg, PA 17101 (717) 234~5925 FAX (717) 234-9459 Financial Counseling Scrvic~ of Franklin 31 West Third Strut Wayn~sbom, PA 17268 (717) 762-3285 YWCA of Carlisle 301 O Street CarLisle, PA 17013 (717) 2¢3-3518 FAX (717) 731-9589 Adams County Housiug Authority 139-143 CarLisle Street Gettysburg, FA 17325 (717) 334-1518 FAX (717) 334-8326 SHERIFF'S RETURN - CASE NO: 2001-01209 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMERCE BANK/HARRISBURG NA VS COSTANZA FRANK J ET AL REGULAR SHAWN HARRISON Cumberland County, Pennsylvania, says, the within COMPLAINT & NOTICE COSTANZA FPJtNK J DEFENDANT at 0018:45 HOURS, at 53 HONEYSUCKLE DRIVE MECHANICSBURG, PA 17055 FRANK COSTANZA a true and attested copy of COMPLAINT & NOTICE Sheriff or Deputy Sheriff of who being duly sworn according to law, was served upon on the 9th day of March by handing to the , 2001 together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 5.58 Affidavit .00 Surcharge 10.00 .00 33.58 Sworn and Subscribed to before me this ~ day of ~u~i ~/ A.D. £ /~ Prothonotar~ ! So Answers: R. Thomas Kline METTE, EVANS & By: SHERIFF'S RETURN CASE NO: 2001-01209 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMERCE BANK/HARRISBURG NA VS COSTANZA FRANK J ET AL - REGULAR SHAWN HARRISON , Cumberland County,Pennsylvania, says, the within COMPLAINT & NOTICE was served upon COSTANZA JOAN APPLTON DEPENDANT , at 0018:45 HOURS, on the at 53 HONEYSUCKLE DRIVE MECHANICSBURG, PA 17055 FRANK COSTANZA (HUSBAND) a true Sheriff or Deputy Sheriff of who being duly sworn according to law, 9th day of March by handing to the , 2001 and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 6 Service Affidavit Surcharge 10 16 00 00 00 00 00 00 Sworn and Subscribed to before me this ~ ? day of So Answers: R. Thomas Kline COMMERCE BANK/HARRISBURG, N.A., Plaimiff FRANK J. COSTANZA and JOAN APPLETON COSTANZA, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION -. LAW DOCKET NO. 01-1209 Civil Term PRAECIPE This case is hereby discontinued without prejudice. Lloyd/R. Persun, Esquire Mett)/, Evans & Woodside 3401 North Front Street P.O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 (717) 236-1816 fax Attorneys for Plaintiff October 25, 2004 CCi Mr. Frank J. Costanza 53 Honeysuckle Drive Mechanicsburg, PA 17055 Ms. Joan Appleton Costanza 53 Honeysuckle Drive Mechanicsburg, PA 17055 409540vl