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HomeMy WebLinkAbout12-2061r HAROLD S. IRININ, 111, ESQUIRE ATTORNEY ID NO. 29920 64 SOUTH PITT STREET CARLISLE PA 17013 (717) 24346000 ATTORNEY FOR PLAINTIFF PH 1: STANLEY E. DOUGLAS, Plaintiff VS. BARRY L. LOREMAN and MARY K. LOREMAN, his wife, Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW NO. 2012 - I?V/7 1 CIVIL TERM : IN PARTITION NOTICE Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 717-243-3166 Y" ?'1b3,76- 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 an 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. STANLEY E. DOUGLAS, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA Vs. BARRY L. LOREMAN and MARY K. LOREMAN, his wife, Defendants : CIVIL ACTION - LAW : NO. 2012 - CIVIL TERM : IN PARTITION COMPLAINT NOW, comes the plaintiff, by his attorney, Harold S. Irwin, III, Esquire, and presents this complaint, representing as follows: 1. Plaintiff is STANLEY E. DOUGLAS, an adult individual residing at 1330 Williams Grove Road, Mechanicsburg, Cumberland County, Pennsylvania 17055. 2. Defendants are BARRY L. LOREMAN and MARY K. LOREMAN, his wife, adult individuals residing at 1204 Brandt Road, Mechanicsburg, Cumberland County, Pennsylvania 17055. 3. The parties are joint owners, together with Sarah B. Douglas, now Sarah B. Snyder (hereinafter Snyder), of a tract of real estate and improvements located in Monroe Township, Cumberland County, Pennsylvania, known and numbered as 1330 Williams Grove Road, Mechanicsburg, Pennsylvania 17055. 4. The parties and Snyder hold title to said real estate by virtue of a deed from the defendants to the plaintiff, Snyder, and to the defendants, dated August 18, 2003, and recorded in the Cumberland County Recorder of Deeds office in Deed Book 258, Page 3736. A copy of this deed is incorporated herein by reference and attached hereto as Exhibit °A". 5. The premises which is the subject of this action is security for a first mortgage, all of the payments for which have been made by the plaintiff since 2002. Plaintiff has also paid all of the real estate tax payments, homeowners insurance payments, and maintenance expenses since 2002. 6. No persons other than the parties to this partition action have an interest in the said property, except Snyder, who, by virtue of a Substituted Settlement Agreement between herself and the plaintiff, dated September 23, 2010, has waived all her right, title, and interest - legal, equitable, and possessory - to the property in favor of plaintiff. Snyder has also agreed in the substituted agreement to execute any and all documentation to effectuate this transfer of her interest to plaintiff. A copy of this substituted agreement is incorporated herein by reference and attached hereto as Exhibit °B". 7. No partition or division of the above-described property has ever been made. 8. When the property was originally purchased by the defendants in June, 2002, it was for the benefit of the plaintiff and Snyder, then husband and wife, who provided the downpayment and closing costs for the purchase. The parties had previously agreed that upon plaintiff and Snyder (defendants' daughter) moving from Texas to Cumberland County, Pennsylvania, the property would ultimately become the property of the plaintiff and Snyder. 9. The plaintiff and Snyder subsequently divorced and both have remarried, while the plaintiff has continued to reside in the property and pay all expenses therefor. 10. Plaintiff has demanded personally and through counsel that the defendants now convey their remaining undivided one-half interest in the property to the plaintiff, but defendants have refused and continue so to refuse to execute a deed providing for that transfer. 12. The said real estate cannot be divided without prejudice to or spoiling the whole, neither should it be divided under the circumstances of this case, but should be conveyed to the plaintiff. WHEREFORE, the plaintiff requests that the Court enter an order providing for the partition of this real estate, its transfer to the plaintiff, and such other relief as the Court may deem appropriate. A March 27, 2012 HAROLD S. IRWIN, III Attorney for Plaintiff 64 South Pitt Street Carlisle, PA 17013 . (717) 243-6090 VERIFICATION I, the undersigned, hereby verify that I am the plaintiff in this action and the facts contained in the above petition are true and correct to the best of my knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904, relating to unswom falsification to authorities. March 2012 A t_ OUGLAS EXHIBIT ^A" Parcel No. 22 -11 - 0278 - 078 DEED MADE THE ?V day of August in the year Two Thousand Three (2003), BETWEEN BARRY L. LOREMAN and MARY K. LOREMAN, his wfie, of 1330 Williams Grove Road, Mechanicsburg, Cumberland County, Pennsylvania 17055, hereinafter called Grantors, AND BARRY L. LOREMAN and MARY K. LOREMAN, his wife, and STANLEY E. DOUGLAS and SARAH B. DOUGLAS, his wife, of 1330 Williams Grove Roak :. . C7 x= _ : l ; Mechanicsburg, Cumberland County, Pennsylvania 17055, hereinafter called GranteW. L; ..:. 00 z ?,: =, o DO :rj -0 $1 1100 0 d f O -y Ca, 1*1 = N ( . no ne an WITNESSETH, that in consideration of the sum o P0 the receipt whereof is hereby acknowledged, the Grantors hereby granter Dollar rn m. r , convey unto the Grantees, their heirs and assigns: o :r ALL that certain tract of land and the improvements thereon situate in Monroe Township, Cumberland County, Pennsylvania, bounded and described as follows: BEGINNING at a point on the western right-of-way line of the Williams Grove Road at the comer of Green Lane, as shown on the hereinafter mentioned Plan of Lots; thence along said right-of-way line, South 00 degrees 11 minutes 11 seconds West, a distance of 225.24 feet to a point; thence along the dividing line between Lots Nos. 1 and 2 on said Plan, South 87 degrees 32 minutes 12 seconds West, a distance of 980.51 feet to a point; thence North 00 *degrees 28 minutes 00 seconds East, a distance of 225.29 feet to a point on the southern line of Green Lane; thence along the Bco! 258 'AGF337-36 latter, North 87 degrees 32 minutes 12 seconds East, a distance of 979.40 feet to a point, the Place of BEGINNING. BEING Lot No. 1 on the Plan of Lots of Frank E. Stoner, as recorded in the Cumberland County Recorder of Deeds Office in Plan Book 57. Page 53 (erroneously referred to as Plan Book "Q", Volume 36, Page 106 in prior deeds). HAVING ERECTED THEREON a dwelling known as 1330 Williams Grove Road, Mechanicsburg, Pennsylvania 17055. ?- ?"I'? ?cfiv' BEING the same premises vsiTi ich CiTIFINANCIAL MORTGAGE COMPANY, granted and conveyed to BARRY L. LOREMAN, one of the grantors herein, by deed data 4 June , 2002, and recorded in the Office ofq?t?r of Deeds for Cube AaiCounty, Pennsylvania, in Deed Book 2552, Page 485. Mary K. Loreman joins herein to convey any interest she may have in this undivided one-half interest in the premises by virtue of her being the spouse of Barry L. Loreman. It is the intention of this deed that hereafter Barry L. Loreman and Mary K. Loreman, his wife, shall own and undivided own-half interest in the property as tenants by the entireties and Stanley E. Douglas and Sarah B. Douglas, his wife, shall own the other undivided one-half interest In the property as tenants by the entireties and that the relationship between the two one-half interests shall be as joint tenants with the right of survivorship. This conveyance Is a non-taxable transfer from parents to daughter and son-In-law. AND the grantors hereby covenant and agree that they will warrant specially the property hereby conveyed. lium 258 , He Va7. IN WITNESS WHEREOF, the grantors have hereunto set their hands and seals the day, month and year first above written. Signed, Sealed and Delivered In r presence of 0. (SEAL) BARRY OREMAN (SEAL) MARYWLOREVAN COMMONWEALTH OFPENNSYLVANIA •ss: COUNTY OF CUMBERLAND On this, the t P day of August, 2003, before me the undersigned officer, personally appeared BARRY L. LOREMAN and MARY K. LOREMAN, his wife, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument, and acknowledged that they executed some for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set qny hand and seal. Notary Public I do hereby certify that the precise residence and complete post office address of the within named Grantee is: 1330 Williams (trove Road, Mechanicsburg, PA 17055. August 2003 for HA MOLD S. IRWM19 III Attonmy at Low 38 K"T HIGH VIVERT CARUNA PA 17013 717-24340M NOTARIAL SEAT '**-- H?bB. 96M, W, NOTARY PUBLIC I Ce In CURYMMU t County PA 44MAW • . ''CIO BOOK 258 '-Au 8 EXHIBIT "B" SUBSTITUED SETTLEMENT AGREEMENT REGARDING MARITAL RESIDENCE BY AND BETWEEN SARAH B. SNYDER FORMELY KNO =SARAH B. DOUGLAS AND STANLEY E. DOUGLAS 1WS AG T t, made this %? 3rc1 day of Sw k nber, 2O10 by and between Sarah B. Douglas, and Stauley E. Douglas. WHEREAS, the parties hereto, after being properly advised, have come to the following NOW, THCREFORE, m consideration of the above recitals and the fo&wmg covenants and mutually made and manually to be kept, the parties bactokwe, intending to be legally bound and to legally bind then ban suooessors and assigns thereby, covenant, promise and agree as follows: The parties Sarah B. Snyder formally known as Sarah B. Douglas & Stanley Douglas, canted a Stipulation Agreement for the Sale of Marital Residence that was eked on December 23?, 2009 in the Court of Common Pleas of Cumbadand County. It a the express urtadion of the parties to Void that Stipulation Agreeing to the Sale of the Marital Residence, as it rely-es to all of its term and conditions and repiace it with this agreement. Additionally, it is the irrt noon of the parties to render mill and void paragraph # 9 on page number 6 of the Agreement signed by the parties on March 1' ; 2010 as it rakes to the safe ofthe aforementioned home. All other tams and conditibms of the agreen>? dated March 1" 2010 shall remain in full force and effffect. The parties hereby agree as follows: 1. The parties are the owns of a property located 1330 Williams Grove Road, Mechanicsburg, PA 17055. 2. Sarah B. Snyder formally known as Sarah B. Douglas, hereby agrees and covenants that she waives all rights, title and interest both legal, equitable, and possessory to the property. I Sarah B. Douglas Sarah B. Snyder formally known as Sarah B. Douglas hereby conveys all right title and interest legal, equitable, and possessory that she poste m the property to Stanley E. Douglas. 4. Sarah B. Snyder fannelly known as Sarah B. Douglas hereby agrees to execute all documentation necessary to effectuate her conveyance of ownership both Equitable and Legal to Stanley E. Douglas if and when called upon to do so. 5. The parties hereby agree that the prior agreement executed by and between them shall be rendered null and void 6. Stanley E. Douglas shall endeavor to procure a Loan Mir to are any all deficiencies restive to his occupation and ownership of the home. It is understood and agreed that the Stipulation Agreement for the Sale of the Marital Residence is and shall be rendered null and void and ofno effect and shall be replaced with this agreement as it relates to the afior+F ra tiored property as well as any verbal agreements or representations ocarning prior to the effective date of this instrument. Additionally, it is the intention of the parties to fender mull and void paragraph # 9 on page number 6 of the Agreement signed by the parties on March Id. 2010 as it relates to the sale of the aforemerrtioned home. All other terms and conditions of the agreement dated March 1'` 2010 shall remain in full form and effect. IN WTI'NESS WHEREOF, and mwndmg to be legally bound the parties hereto have set their hand and seals the day and year first above written. Sarah K Snyder Commonwealth of Pennsylvania County of Cumberland On this, the day of A.D. 2010, before me a Notoy Public vppearned Smwk 8 Snyder, brown to me (or satisfactorily proven) to be the person whose name is subscribed to the within ins#wnent, and ackwwledged that she executed the same for the purposes therein contained IN WITNESS WHEREOF, and intending to be legally bound the parties hereto have set their land and seals the day and year first above written. C MONWFAI.TH OF P NNSYLV NotWW Seal Mary J. Gouti'er, Notary Public Carroll Twp.. Perry County My Cornmission FxOrea Now. 17, 2011 Member, Pannrylvenia Association of Nob" Commonwealth of Pennsylvania County of Dauphin Title of Officer Seal ? On this, the ??da ao f Y of 6-. A.D.2010, before me a Notary Public appeared SYanlry E Drattglas brown to me (or satisfacttorily praNen) to be the person whose name is subscribed to the within instrument, and acbrowledged flat he executed the same for the purposes therein contained IlV WITNESS WHEREOF, I hereunto set my hand and COMMONWEALTH OF PENNSYLVANIA Notarial seal Mary J. Gouffer, Notary Public Carroll TwP., Perry County My Commission Expires. Nov. 17, 2011 Member, Pennsylvania Association of Nobuks 'nue of office Seal 3 Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor SHERIFF'S OFFICE OF CUMBERLAND COU`Y „r Stanley E. Douglas vs. Case Number Barry L. Loreman 2012-2061 SHERIFF'S RETURN OF SERVICE 04/12/2012 03:30 PM - Shawn Gutshall, Deputy Sheriff, who being duly sworn according to law, states that on April 12, 2012 at 1530 hours, he served a true copy of the within Complaint and Notice, upon the within named defendant, to wit: Barry L. or Mary K. Loreman, by making known unto Mary K. Loreman personally, at 1204 Brandt Road, Mechanicsburg, Cumberland County, Pennsylvania 17055 its contents and at the same time handing to her personally the said true and correct copy of th same. UTS LL, DEPUTY SHERIFF COST: $38.45 April 13, 2012 SO ANSWERS, RON R ANDERSON, SHERIFF Robert G. Frey, Esquire Supreme Court I.D. No. Attorney for Defendants 46397 Frey and Tiley 5 South Hanover Street Tel: 717-243-5838 Carlisle, Pennsylvania 17013 _ Fax: 717-243-6441 STANLEY E. DOUGLAS, Plaintiff vs. BARRY L. LOREMAN and MARY K. LOREMAN, Defendants To: Stanley E. Douglas IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2012-2061 CIVIL TERM : IN PARTITION You are hereby notified to file a written response to the enclosed Answer with New Matter and Counter Claim within twenty (20) days from service hereof or a judgment may be entered against you. -J Robert G. Frey Attorney for Defendants 5 South Hanover Street Carlisle, Pennsylvania 17013 r T1 Z: ; _...? rW ?' r.i STANLEY E. DOUGLAS, Plaintiff vs. BARRY L. LOREMAN and MARY K. LOREMAN, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW : NO. 2012-2061 CIVIL TERM IN PARTITION ANSWER WITH NEW MATTER AND COUNTER CLAIM ANSWER AND NOW, come Frey & Tiley, Attorneys for Defendants, and respectfully Answer the Complaint of Plaintiff as follows: 1. Admitted. =rte " 2. Admitted. -, the real estate referenced in Plaintil e-, Admitted. By way of further answer 3 , . paragraph shall hereinafter be referred to as "the Property." = co 4. Admitted. 5. Admitted in part; Denied in part. It is admitted that the Property is subject to a mortgage. It is further admitted that Defendants have not made any payments on the mortgage obligation or real estate tax payments, and homeowners insurance payments. It is denied that Defendants did not assist in maintenance expenses. Defendants provided their time and labor in assisting with renovations of the Property. After reasonable investigation, Defendants have no knowledge and are unable to determine what payments were made by Plaintiff. Therefore, the allegation is denied. By way of further answer, Plaintiff has had the right of possession, either shared with Snyder, or exclusively, since 2002 and Defendants have received no payments of rent or other compensation from Plaintiff for his occupancy of the Property. 6. Admitted. 7. Admitted. 8. Admitted in part; Denied in part. It is admitted that Defendants purchased the Property with the intention that it be a home for Plaintiff and Snyder, their daughter, upon their moving to Cumberland County from Texas. It is denied that Plaintiff or Snyder provided any portion of the down payment for the Property. Defendants paid all of the down payment constituting 10% of the purchase price, totaling $15,000.00, which has not repaid to them. It is further denied that it was agreed that the Property would be conveyed to Plaintiff and Snyder upon their moving to Cumberland County. To the contrary, the verbal agreement between the parties was that upon Plaintiff and Snyder moving to Cumberland County, Defendants would convey a one-half interest to them, which was done by the Deed attached as Exhibit "A" to Plaintiff's Complaint. It was further verbally agreed that upon Plaintiff and Snyder repaying Defendants the $15,000.00 down payment that Defendants had paid as a loan to Plaintiff and Snyder, that Defendants would convey all of their interest in the Property to Plaintiff and Snyder. 9. Admitted in part; Denied in part. It is admitted that Plaintiff and Snyder have each divorced and remarried. It is further admitted that Plaintiff has continued to reside at the Property. After reasonable investigation, Defendants have no knowledge and are unable to determine what payments were made by Plaintiff. Therefore, the allegation is denied. 10. Admitted. By way of further answer, Defendants remain willing to convey the property to Plaintiff upon his repaying to them of their 10% equitable interest in the property by virtue of the $15,000.00 down payment that they had originally made as a loan to Plaintiff and Snyder. 11. Omitted from Plaintiff's Complaint. 12. Admitted in part; Denied in part. It is admitted that the Property should not be divided. It is denied that having the Property conveyed to Plaintiff is a remedy available in an action in Partition. WHEREFORE, Defendants respectfully request that the Court enter an order directing the partition of the Property setting forth the respective interests of parties in the Property, recognizing Defendant's payment of a portion of the purchase price. NEW MATTER 13. Paragraphs 1 through 12 are incorporated herein by reference. 14. The Property was purchased by Defendant Barry L. Loreman on or about June 5, 2002 for a purchase price of $150,000.00. As part of the purchase, Defendant Barry L. Loreman borrowed $142,500.00 from Countrywide Home Loans and gave a first mortgage on the Property. A copy of said mortgage is attached hereto as Exhibit "A". 15. On or about September 18, 2003, subsequent to the conveyance of the Property to Plaintiff, Snyder and Defendants as joint tenants, Plaintiff, Snyder and Defendants refinanced with Champion Mortgage, receiving first mortgage financing of $144,500.00 and second mortgage financing of $25,500.00 for total indebtedness of $170,000.00. A copy of said first and second mortgages are attached hereto as Exhibit "B". 16. A portion of the proceeds of the financing referenced in Paragraph 15 were used to payoff the prior financing with Countrywide Home Loans. None of the balance of the proceeds of the refinancing were received by Defendants and it is believed that all of the proceeds were used for the sole benefit of Plaintiff and/or Snyder. 17. On or about August 20, 2004, Plaintiff, Snyder and Defendants refinanced with IndyMac Bank, receiving first mortgage financing of $157,500.00 and second mortgage financing of $52,500.00 for total indebtedness of $210,000.00. A copy of said first and second mortgages are attached hereto as Exhibit "C". 18. A portion of the proceeds of the financing referenced in Paragraph 17 were used to payoff the prior financing with Champion Mortgage. None of the balance of the proceeds of the refinancing were received by and it is believed that all of the proceeds were used for the sole benefit of Plaintiff and/or Snyder. 19. On or about May 24, 2007, Plaintiff, Snyder and Defendants refinanced with American Financial Resources, receiving first mortgage financing of'$270,000.00. A copy of said mortgage is attached hereto as Exhibit "D". 20. A portion of the proceeds of the financing referenced in Paragraph 19 were used to payoff the prior financing with IndyMac Bank. None of the balance of the proceeds of the refinancing were received by and it is believed that all of the proceeds were used for the sole benefit of Plaintiff and/or Snyder. 21. It is believed and averred that the money received by Plaintiff and/or Snyder was used for the personal purposes of Plaintiff and Snyder and far exceeds payments on principal, homeowners' insurance, taxes, maintenance and repair of the Property and that neither Plaintiff nor Snyder have any equitable interest in the Property. 22. To determine the extent of Plaintiff's or Snyder's interest in the Property, it is necessary for Plaintiff to provide an accounting of the rents and profits received by him and Snyder, including the net proceeds from each of the above-referenced refinancing transactions, an accounting for the fair value of the use and occupancy of the Property by Plaintiff and Snyder, and an accounting of payments made on the principal indebtedness, homeowners' insurance, real estate taxes, repairs and maintenance of the Property. WHEREFORE, Defendants respectfully request that an Order be entered requiring Plaintiff to provide an accounting of the rents and profits received by him and Snyder, including the net proceeds from each of the above-referenced refinancing transactions, an accounting for the fair value of the use and occupancy of the Property by Plaintiff and Snyder, and an accounting of payments made on the principal indebtedness, homeowners' insurance, real estate taxes, repairs and maintenance of the Property. COUNTERCLAIM 23. Paragraphs 1 through 22 are incorporated herein by reference. 24. Defendants have an equitable interest in the Property to the extent of their initial contribution toward the purchase price in the amount of $15,000.00. 25. Defendants have received no rents or profits from the Property, no portion of the net proceeds from the above-referenced refinance transactions, and no privileges for the use or occupancy of the Property. 26. It is believed and averred that through increasingly greater refinancing transactions, Plaintiff and Snyder have taken equity in the Property, converted this money to cash through borrowing and used the money for their personal purposes rather than adding value to the Property . 27. It is believed and averred that the money diverted for personal purposes by Plaintiff and Snyder significantly exceeds all payments that they had made payments on principal, homeowners' insurance, taxes, maintenance and repair of the Property. 28. Therefore, it is believed and averred that neither Plaintiff nor Snyder have any equitable interest in the Property and that they should be determined in Partition pursuant to Pa.R.C.P. to have no interest in the Property. WHEREFORE, Defendants respectfully request that an Order be entered directing the partition of the Property setting forth Defendants Barry L. Loreman and Mary K. Loreman as owners of 100% of the property as joint tenants and Plaintiff Stanely E. Douglas and Sarah B. Snyder as having no interest in the Property. Respectfully submitted, Frey & Tiley, Attorneys for Defendants V\'au-4 3-1? By: Robert G. Frey, Esquire Supreme Court Number 46397 5 South Hanover Street Carlisle, Pennsylvania 17013 (717) 243-5838 I verify that the statements made herein are true and correct and understand that false statements herein are made subject to the penalties of 18 Pa. C. S. A. § 4904 relating to unsworn falsification to authorities. Dated: Z , 2012 BARR6V L. LOREMAN f h2 Qj MARY K OREMA STANLEY E. DOUGLAS, OF Plaintiff PENNSYLVANIA vs. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, CIVIL ACTION - LAW BARRY L. LOREMAN and NO. 2012-2061 CIVIL TERM MARY K. LOREMAN, Defendants : IN PARTITION CERTIFICATE OF SERVICE I hereby certify that I have served a true and correct copy of the DOCUMENT, in the above captioned matter, by certified, first class, United States mail, postage pre-paid, return receipt requested, upon the following entities: Harold S. Irwin, 111, Esquire 64 South Pitt Street Carlisle, PA 17013 Date: May 10, 2012 V Robert G. Frey, Esquire FREY & TILEY Attorney for 5 S. Hanover Street Carlisle, PA 17013 (717) 243-5838 Attorney I.D.#46397 Berwick Hospital Corp. Assessment Appeal - Certificate of Service Page 1 of 1 EXHIBIT "A" 5-7LP t'1 a+.c W i n After Recording Return To: COUNTRYWIDE NOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING 1800 Tapo Canyon Simi Valley, CA 93063-6712 Prepared By: M. RADNOR Parcel Number: [Space Above This Lfne For Recording Data] 0002002162349207 [Doc ID #I DEFAVITIONS POSERT P. ZIEGLER FE Of DEIR OF DEEDS '02 JUN 7 PM 3 33 MORTGAGE MN 1000157-0000922603-2 Words used in multiple sections of this document are defined below and other words am defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are aiso provided in Section 16. (A) "Security Instrument" means this document, which is dated JUNE 07. 2002 , together with all Riders to this document. (B) "Borrower" is BARRY LOREMAN. A MARRIED MAN Borrower is the mortgagor under this Security Inswment. PENNSYLVANIA - Single Family - Fannie Mae/Freddie Mae UNIFORM INSTRUMENT WITH MERS Pape 1 of 16 4nitlak: ? 6A(PA) (o o) tHL (10101) VMP MORTGAGE FORMS - (800)621-7201 Form 3039 1/01 CON -4 ONE M1 ll *23991* 0*02001216123 0 0 0 0 1 0 0 B A• BK1761PG2145 05108/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 1 of 17 DOC ID # 0002002162349207 (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MFRS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is COUNTRYWIDE HOME LOANS, INC. Lender is a A CORPORATION organized and existing under the laws of NEW YORK Lender's address is 4500 Park Granada, Calabasas, CA 91302-1613 (E) "Note" means the promissory note signed by Borrower and dated JUNE 07. 2002 The Note states that Borrower owes Lender ONE HUNDRED FORTY TWO THOUSAND FIVE HUNDRED and 00/100 Dollars (U.S. $ 142,500.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JULY 01, 2032 (F) "Property" means the property that is described below under the heading "'t'ransfer of Rights in the Property." (G) "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. (H) "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 0 Second Home Rider Balloon Rider Planned Unit Development Rider 1-4 Familyi Rider VA Rider Biweekly Payment Rider Other(s) [specify] Wnilals: IL ®8A(PA)(oti o) CHL(10/01) Page 2ofis Form 3050 1101 (I) "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. (J) "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. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institti0on 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. (L) "Escrow Items" means those items that are described in Section 3. (M) "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 pan 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. BK1761PG2146 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 2 of 17 DOC ID # 0002002162349207 (N) "Mortgage Insurance" means insurance protecting Lender against the nonpaymlent of, or default on, the Loan. (O) "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. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 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 subjecs 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. (Q) "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 MFRS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, the following described property located in the COUNTY of CUMBERLAND [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF. which currently has the address of 1330 WILLIAMS GROVE ROAD, MECHANICSBURG [street/Cityl Pennsylvania 17055 ("Property Address"): [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 add additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property" Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom„ =R ? mine for 101 Is. 6A(PA) pi iof CHL (10/01) Paps 3 of 18 orrn 3039 1/01 U1% 17 61 PG 214 7 05/0812012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 -Page 3 of 17 DOC ID # 0002002162349207 Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. 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 Lander 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) 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. Payments are deemed received by Lender when received at the location design ed 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 Lander 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 principall 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. (b) 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 -6A(PA) (o11o) CHL (10/01) Papa 4 of 1 B tntti.w-is L1 Form 3030 1/01 BK 1761 PG2148 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 4 of 17 DOC ID # 0002002162349207 late charge. If more than one Periodic Payment is outstanding, lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each pajyment 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 full, a sum (the "Fonds") 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, avid Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item., Borrower shall promptly furnish 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 famish 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 due 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 App*able 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 Ftbnds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or JApplicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or comings 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. (W-GA(PA)(oflof OHL(10/01) Page aotle Initlala:__??„r Form 3039 1/01 Bit 176 1 PG 214 9 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Instl 200223376 - Page 5 of 17 DOC ID # 0002002162349207 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 hjeld 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 RESPA, 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 Leader the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. 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 rants 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 ft 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 tape 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 Loam. S. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the tam "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 6A(PA) (o f 1 o) CHL (10/01) Pape s of 16 I h(t IBCI_ Form 3039 1101 BK 176 1 PG2150 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 6 of 17 DOC ID # 0002002162349207 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 L.eader'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 Lander. 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 restoration or repair of the Property, if the restoration or repair is economically feasible and Leader'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. Leader 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, Leader 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 insuratce 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. Leader 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. 11111a1a: a t` eA(PA)(o11o) CHt_(10/01) Papa 70118 Form 3039 1101 Un 7 6 1 PG 2 l 5! 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 7 of 17 DOC ID # 0002002162349207 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 hall 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 inac curm 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 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. If Borrower acquires fee title to the Property, the leasehold and the fee tide shall not merge unless Lender agrees to the merger in writing. 4M-OA(PA) (oil a) CHL (10/01) Papa 8 of is BK1761PG2152 Innlalc?? Form 3029 1101 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 8 of 17 DOC ID # 0002002162349207 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of malting 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 Lender 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 thew payments as a non-refusdable 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 Leader 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 wdwm 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. 't'hese 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 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 - J any - with respect to the Mortgage Insurance under the Homeowners Protection Act of J"g 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 autom dcally, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. ®m GA(PA) dot1Ili CHL (10/01) Papa O or Is BK1761PG2153 Initials: Form 3030 1/01 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 9 of 17 DOC ID # 0002002162349207 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 them 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 stuns 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 Properly 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 dlumages. Borrower fails to respond to Lender within 30 days after the date the notice is given, Leader 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 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 p g to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other ma impairment of Lender's interest in the Property or rights under this Security InstrumenL 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. at-GA(PA) (oi 10) CHL (10/01) Papa 10 of is Form 3039 1/01 6K1761P62154 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 -Page 10 of 17 DOC ID # oi002002162349207 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 maize 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 Larder's interest in the Properly 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, than: (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 princilpal owed under die 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 refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. (W-8A(PA) rot to> CHL (10/01) Papa 11 of 1s BK1761PG2155 05/08/2012 9:50:45 AM CUMBERLAND COUNTY initiate:RL Form 3039 1/01 Inst.# 200223376 - Page 11 of 17 DOC ID # 0002002162349207 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 requites 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. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lander 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 lnstnunenL 16. Governing Law; Severability; 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 requkanents 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 Insttumem 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; QA(PA) (ot tot CHL (10/01) Papa 12 of 16 BK1761PG2156 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inltlals:__ &S 1 Form 3039 1101 Inst.# 200223376 - Page 12 of 17 DOC ID # 0002002162349207 (b) such other period as Applicable Law might specify for the mnination 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 to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Larder: (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 Servlcer; 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 Sevicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Sevicer, the address to which payments should be made and any other information RESPA requites 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 commerce, 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 Leader has notified the other party (with such notice given m compliance with the requirements of Section 15) of such alleged breach and afforded the other party herein 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 taker, 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 formaklehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety 4ft-GA(PA) (ot to) CHL (10101) Page 13 of 10 BK 176 1 P62 157 Initlalc A 4J, Form 9059 1101 05108/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 13 of 17 DOC ID # 0002002162349207 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 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 m accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmertal Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acoderatiion 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 care the default as specified may result in acceleradon of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property. Leader shall further inform Borrower of the right to reinstate after acceleration and thje 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 fall of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding. Under shall be entitled to collect an 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 orient permitted 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 chalrgge 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. ®L 6A(PA) to11o1 CHt. (10/01) Papa 14 of 16 initials: _L? f=orm 5099 1/01 BK1761PG2158 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 14 of 17 DOC ID # 0002002162349207 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. 23. Reinstatement Period. Borrower's time to reinstate provided in Section 19 shall extend to one hour prior to the commencement of bidding at a sheriff's 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: e_e?t Seal) BARRY 4fTFIAN -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 1ft-aA(PA) for ro) CHL (10/01) Papa 15 of 1e Form 3039 1/01 BK1761P62159 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 15 of 17 L DOC ID # 0002002162349207 Certificate of Residence 1, M . ?? that the correct addressZ e w m-namedLender is 4 - 4 q Witness my han 1 , tw day of UyQLL-'K Agent of Mortgagee COMMONWEALTH OF PENNSYLVANIA, CGL/f-fLG?Jy??/ On this, the 7 ^ day of ?J 2cvrz" undersigned officer, personally appeared / County ss: , before me, the known to me (or satisffomrily proven) to be the person$ whose namCA isps. subscribed to the within instrument and acknowledged that he/she/ wy executed the same for a purposes herein contained. IN WITNESS WHEREOF, I hereunto set my t My Commission Expires: NOUM Sal Harald S. Irwin 111, NOhry PubNC Came Bm' Curnberh cl County My Com **n E)OFM Sept 2% 2002 Member, Peru?ryNanle Aseodation of Nohlrhe at-SA(PA) loi io? CHL (10/01) Page IS of 10 Bit 176 1 PG 216 0 05/08/2012 9:50:45 AM Inklels:?Z- -Form 3039 1101 Inst.# 200223376 - Page 16 of 17 CUMBERLAND COUNTY ALL THAT CERTAIN piece or parcel of ground, situate in the Township of Monroe, County of Cumberland, and State of Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point on the western right-of-way line of the Williams Grove Road, at corner of Green Lane, as shown on the plan of lots hereinafter mentioned; thence by the right-of-way line of the Williams Grove Road, South 00 degrees 11 minutes 11 seconds West, a distance of 225.24 feet to a point; thence by the dividing line between Lots Nos. 1 and 2 o said Plan, South 87 degrees 32 minutes 12 seconds West, a distance of 980.51 feet to a point; thence North 00 degrees 28 minutes 00 seconds East, a distance of 225.29 feet to a oint on the southern line of Green Lane; thence by the southern line of Green Lane, north 87 degrees 32 minutes 12 seconds East, a distance of 979.40 feet to a point, the Place of BEGINNING. BEING Lot Number 1 in the Plan of Lots of Frank E. Stoner, as recorded in Plan Book 57, Page 53 (erroneously referred to as Plan Book "Q", Volume 36, Page 106 in deeds in the chain of title), Cumberland County Recorder of Deeds Office. EXHIBIT "A" I ?`c.tily this to be recorded In Cumberland County PA •p ?I f, Y O f Recorder of Deeds BK1761PG2161 05/08/2012 9:50:45 AM CUMBERLAND COUNTY Inst.# 200223376 - Page 17 of 17 EXHIBIT "B" J? V' t'. 7IE6LER. R Or" DEEDS ?ERLAND COUNTY-i,. [Space Above This Line for Recording Datal„ -n nm ?a ?u M LI [File # 1799035 Cust # 1457971 ] Record and Return to: SECOLINK SECOLINK 3920 MAIN STREET, 3RD FLOOR AMHERST , NY 14226 Prepared by: JESSICA M FISCHER 3920 MAIN STREET 3RD FLOOR, AMHERST, NY 14226 PENNSYLVANIA ADJUSTABLE RATE PAYMENT MORTGArgE - FIRST LIEN THIS MORTGAGE ("Security Instrument") is given on SEPTEMBER 09, 2003. The mortgagor is STANLEY E. DOUGLAS MARRIED, SARAH B. DOUGLAS MARRIED, BARRY L. LOREMAN MARRIED MARY K. LOREMAN MARRIED ("Borrower'), whose address is 1330 WILLIAMS GROVE RD, MECHANICSBURG, PA 17055. This Security Instrument is given to CHAMPION MORTGAGE, A DIVISION OF KEY BANK, USA, NATIONAL ASSOCIATION, ("Lender, a national bank organized and existing under the laws of the United States, and whose address is 2 GATEHALL DRIVE, PARSIPPANY, NJ 07054. Borrower owes Lender the principal sum of ONE HUNDRED FORTY FOUR THOUSAND, FIVE HUNDRED AND 00/100 Dollars (U.S. $144,500.00). This debt is evidenced by the Borrower's Note ("Note') dated the same date as this Security Instrument, which provides for monthly payments, with the full debt, if not paid earlier, due and payable on SEPTEMBER 15, 2033. This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender, the following described property located in CUMBERLAND County, Commonwealth of Pennsylvania: - See Schedule A Attached Hereto and Made a Part Hereof - Tax Parcel # 22-11-0278-078 which has the address of 1330 WILLIAMS GROVE RD, MECHANICSBURG, PENNSYLVANIA ('Property Address'); cmc. l ii l Lft PS INI N1111 IN N11 loll BKI836PG4096 05/0812012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 1 of 15 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 seized 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 encumbrances of record. Borrower and Lender covenant and agree as follows: Payment of Principal and Interest; Prepayment and Late Charges; Dishonored Check Charge Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. If Borrower makes a payment by check, draft or money order and such check, draft or money order is dishonored on the second presentment, Borrower shall pay a dishonored check charge of $20.00. Funds For Taxes and Insurance Subject to applicable law, upon written notice from Lender requiring that Borrower escrow funds for the payment of taxes and insurance, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Fundsl for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items". Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S. C. § 2801 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may 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 such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays to Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with the loan evidenced by the Note, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. irMCw Sal e Rw 05M) ? i1i?'n611 loll BK 1836PG4097 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 2 of 15 Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed the amounts permitted to be held under applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 19, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. 3. Application of Payments Unless otherwise required by applicable law, Lender will apply payments received under Paragraph 1 in accordance with the terms of the Note. 4. Charges; Liens Borrower shall pay or cause to be paid, when due, all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly fumish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly fumish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests In good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (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 may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within ten (10) days of the giving of notice. Hazard or 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 floods or flooding, for which Lender or applicable law requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender, or applicable law requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. CM0 IHIMM (P"? )M1001111 loll BKI836PG4098 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 3 of 15 All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. 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, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's Security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within thirty (30) days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds received by Lender to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The thirty (30) day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition., 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds Unless Borrower's loan application and the Lender's loan approval provided that the Property was not required to be occupied as Borrower's principal residence, Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty (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 unreasonable withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection wlth the loan evidenced by the Note, including, but not limited to representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the 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. ill 11111101 mile 1111 IMIN01111 101111111 1101t BKti836PG4099 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 4 of 15 7. Protection of Lender's Rights in the Property If Borrower fails to perform the covenants and agreements contained in this Security Instrument or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, paying real estate taxes, flood insurance and mortgage insurance premiums, appearing in court, paying reasonable attorney fees, entering on the Property to make repairs, and paying property insurance premiums. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the !Vote rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance If Lender required mortgage insurance as a condition of making the loan evidenced by the Note and secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, 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 approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement of mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. Inspection Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. sK1836PG4lo-0 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 5 of 15 18. Condemnation The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or any part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Unless Lender and Borrower otherwise agree in writing, any application of such proceeds which does not pay the sums secured by this Security Instrument in full, shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. 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 any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors In interest. Lender shall not be required to commence proceedings against any successor in interest or 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 Borrowers successors in interest. Any forbearance by Lender in exercising any right or remedy, hereunder or under the Note, shall not be a waiver of or preclude the exercise of any other right or remedy at that time, or of the same or any other right or remedy at any other time. 12. Successors and Assigns Bound; Joint and Several Liability; Co-Signers The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 19(B). Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower'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 may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges If the loan secured by this Security Instrument is subject to a law or regulation which sets maximum loan charges, and that law or regulation 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 under the Note. NINIVIN INEN111 IM10111 ink llso loll 8K1836PG4101 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 6 of 15 14. Notices Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first-class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first-class mail to Lenders address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability This Security Instrument shall be governed by federal law including, if the Note so provides, the Alternative Mortgage Transaction Parity Act of 1982 (12 U.S.C § 3801 et. seq.), and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Borrower's Copy Borrower acknowledges receipt of a conformed copy or a photocopy of the Note and of this Security Instrument. 17. Sale of Note; Change of Loan Servicer The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the "Loan Servicer) that collects monthly payments due under the Note and this Security Instrument. There also may 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 in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other information required by applicable law. 18. Hazardous Substances Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. 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. u 'iMi05Mi 1018011 i I?` ININ EM11 SKI836PG4102 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 7 of 15 Borrower shall promptly give Lender written notice of 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. If Borrower learns, or is notified by any governmental or regulatory authority, 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. As used in this paragraph 18, "Hazardous Substances" are those substances defined as toxic or hazardous substances 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. As used in this paragraph 18, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. 19. Lender's Rights if Borrower Fails to Keep Promises If any of the events or conditions described in subparagraphs (A), (B), or (C) of this paragraph 19 shall occur, Lender, after giving Borrower timely notice of Borrower's rights to cure as is then required by applicable law and Borrower's failure to cure within the time period set forth in such notice, may require Borrower to make Immediate Payment in Full. If Lender requires Immediate Payment in Full, Lender may, without further demand, foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred pursuing foreclosure including, but not limited to, attomey fees and cost of title evidence to the extent permitted by applicable law. Subject to the applicable notice and cure provisions, if any, set forth above in this paragraph 19, Lender may require Immediate Payment in Full under this paragraph 19 if: (A) Borrower is in default under the terms of the Note; or (B) 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, if a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent; or (C) Borrower fails to keep any other promise or agreement in this Security Instrument within the time set forth, or if no time is set forth in this Security Instrument, then within the time set forth in the notice sent to Borrower by Lender, or if Borrower is otherwise in default under this Security Instrument, or if any of the covenants, representations and/or warranties made by Borrower in this Security Instrument are not true and correct in any material respect or are otherwise breached by Borrower. 1iiii1IN1 19111NI ININS1111 1N?,1Ii1 111 BKI836PG4103 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 8 of 15 20. Release Upon payment in full of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs as permitted under Applicable Law. 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. 21. Waivers Borrower, to the extent permitted by applicable law, waives and releases any errors 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. 22. Reinstatement Borrower's time to reinstate, to the extent, if any, provided in paragraph 19, shall extend to one hour prior to commencement of bidding at a sheriffs sale or other sale pursuant to this Security Instrument. 23. 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. 24. 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. 25. Riders to this Security Instrument If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS FOR A VARIALBLE INTEREST RATE. CMC 58140-Firs! MW O&M Ma P Bd 11 ¦ e BKI836PG4104 05/0812012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 9 of 15 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. IN WITNESS WHEREOF, Borrower has signed and sealed this Security Instrument. STANLEY E OUGLA 9DAO-? 6, - ALA- SARAH B. DOUGLAS BARRYL EMAN '4? '?e MARY K. REMAN Witness: WITNESS I hereby certify that the precise address of the Lender (Mortgagee) is 2 GATEHALL DRIVE, PARSIPPANY, NJ 07054. On By: Title: LLC CMC. I I' IN1 11 101111111 101/11111 '1081"'1"01111 1111111 6K 1836PG4105 05108(2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 10 of 15 COMMONWEALTH OF PENNSYLVANIA •ss COUNTY OF VUMBEPA AND k1-4 On i 9TH day of S TEMBER, 2003, before me 'd" "e- Sew the undersigned r, personally appeared STANLEY E. DOUGLAS MARRIED, SARAH B. DOUGLAS ARRIED, BA RY L. LOREMAN MARRIED, MARY K. LOREMAN MARRIED, known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged that he/she/they executed the same for the purposes therein contained. In Witness Whereof, I hereunto set my hand and official seal. 2 1/ Notary Public My Commission Expires: NpTARtAL Mary Put>trc J ANNE E. NO rwp. Dauphrfi County. Lowef Paxton 7wp ii?I'l i i??iM I10Np11 NIN iivili BK1836PG4106 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 11 of 15 ORDER #: 341991 EXHIBIT A ALL THAT PARCEL OF LAND IN TOWNSHIP OF MONROE, CUMBERLAND COUNTY, COMMONWEALTH OF PENNSYLVANIA, AS MORE FULLY DESCRIBED IN DEED BOOK 258, PAGE 3736, ID# 22-11-0278-078, BEING KNOWN AND DESIGNATED AS BEING LOT NUMBER 1 IN THE PLAN OF LOTS OF FRANK E. STONER, AS RECORDED IN PLAN BOOK 57, PAGE 53 (ERRONEOUSLY REFERRED TO AS PLAN BOOK "Q", VOLUME 36, PAGE 106 IN DEEDS IN THE CHAIN OF TITLE), CUMBERLAND COUNTY RECORDER OF DEEDS OFFICE, MORE PARTICULARLY DESCRIBED AS METES AND BOUNDS PROPERTY. DEED FROM BARRY L. LOREMAN AND MARY K. LOREMAN, HIS WIFE AS SET FORTH IN DEED BOOK 258, PAGE 3736 DATED 06/18/2003 AND RECORDED 06/18/2003, CUMBERLAND COUNTY RECORDS, COMMONWEALTH OF PENNSYLVANIA. Page 2 of 7 BK f 836PG4 107 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 12 of 15 File # 1799035 Cust # 1457971 PENNSYLVANIA ADJUSTABLE RATE RIDER TO MORTGAGE .- FIRST OR SECOND LIEN (1 Year Treasury Index - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 9TH day of SEPTEMBER, 2003 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument') of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note's to CHAMPION MORTGAGE, A DIVISION OF KEY BANK, USA, NATIONAL ASSOCIATION, (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 1330 WILLIAMS GROVE RD, MECHANICSBURG, PENNSYLVANIA THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS: In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: 2. INTEREST I agree to pay interest at an initial rate of 6.990% per year computed on the basis that a year consists of twelve (12) months, each containing thirty (30) days. Interest will be charged on the unpaid principal until the full amount of the principal is repaid. The interest rate I will pay will change in accordance with Section 4 of this Note. The interest rate required by this Section 2 and by Section 4 of this Note is the rate I will pay both before and after any default described in Section 7(B) of the Note. 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on SEPTEMBER 15, 2004 and on that day every 12th month thereafter. Each date on which my interest rate could change is called a "Change Date." CMC I 1011201 ? ??uIl mill [grill BKI836PG4108 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 13 of 15 (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one (1) year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date forty-five (45) days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index, which is based upon comparable information. The Note Holder will give me notice of such change. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my interest rate by adding FIVE AND 600/1000 percentage (5.600%) points to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 8.990% or less than 5.600%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage (2%) points from the rate of interest I have been paying for the preceding twelve (12) months. My interest rate will never be greater than 12.990% ("lifetime cap'), and will never be lower than 5.600% ("floor'), during the term of this loan. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. IM11111110IN1111 110011 010111 Iffing BKI836PG4109 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 14 of 15 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED ANLEY . DOUGLAS' a; ,, LLa?L' - -- SARAH B. DOUGLAS BARRY L. L MAN MARY K REMAN Witness: ?O UO g WITNESS COMMONWEALTH OF PENNSYLVANIA:) '- GOB :ss COUNTY OF 66MBERLANO, 2 kc } ?? ?G On thi 9TH day of TEMBER, 2003, before me the undersigned IZ2? j& officer, personally appeared STANLEY E. DOUGLAS MARRIED, SARAH B. DOUGLAS MARRIED, BARRY L. LOREMAN MARRIED, MARY K. LOREMAN MARRIED, known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged that he/sheAhey executed the same for the purposes therein contained. In Witness Whereof, I hereunto set my hand and official seal. @ r s• mow. {? 4??.' Notary Public My Commission Expires: • r ''•• ?.. ' ,' NOTARIAL SEAL AN'IUE E. MOUSER, Notary Public Lower Paxton Twp., Dauphin Countw Cq.,rn4s-itin Ex irea ^e u 2` F,. M11111 Ri11Ia11,1 10101111 I 111111 11111111 6K1836PG4110, 05/08/2012 9:45:37 AM CUMBERLAND COUNTY Inst.# 200351909 - Page 15 of 15 P. +IEGLER DF DEEDN " LAND COUNTY-Pt" [Space Above This Line for Recording Data] !CP 3 2 pQ 24 [File # 1841425 Cust # 1493053 Record and Return to: SECOLINK SECOLINK 3920 MAIN STREET, 3RD FLOOR AMHERST , NY 14226 Prepared by: JESSICA M FISCHER 3920 MAIN STREET 3RD FLOOR, AMHERST, NY 14226 PENNSYLVANIA FIXD RATE PAYMENT SECOND LIEN MORTGAGE THIS MORTGAGE ("Security Instrument j is given on SEPTEMBER 09, 2003. The mortgagor is STANLEY E. DOUGLAS MARRIED, SARAH B. DOUGLAS MARRIED, BARRY L. LOREMAN MARRIED, MARY K. LOREMAN MARRIED ("Borrower"), whose address is 1330 WILLIAMS GROVE RD, MECHANICSBURG, PA 17055. This Security Instrument is given to CHAMPION MORTGAGE, A DIVISION OF KEY BANK, USA, NATIONAL ASSOCIATION, ("Lender, a national bank organized and existing under the laws of the United States, and whose address is 2 GATEHALL DRIVE, PARSIPPANY, NJ 07054. Borrower owes Lender the principal sum of TWENTY FIVE THOUSAND, FIVE HUNDRED AND 00/100 Dollars (U.S. $25,500.00). This debt is evidenced by the Borrower's note ("Note's dated the same date as this Security Instrument, which provides for monthly payments, with the full debt, if not paid earlier, due and payable on SEPTEMBER 15, 2018. This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender, the following described property located in CUMBERLAND County, Commonwealth of Pennsylvania: - See Schedule A Attached Hereto and Made a Part Hereof - Tax Parcel # 22-11-0278-078 which has the address of 1330 WILLIAMS GROVE RD, MECHANICSBURG, PENNSYLVANIA ("Property Address"); 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." INININININN10111 10111111 BK 1836PG41 I I 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 1 of 12 BORROWER COVENANTS that Borrower is lawfully seized 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 encumbrances of record. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges; Dishonored Check Charge Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. If Borrower makes a payment by check, draft or money order and such check, draft or money order is dishonored on the second presentment, Borrower shall pay a dishonored check charge of $20.00. 2. Funds For Taxes and Insurance Subject to applicable law, upon written notice from Lender requiring that Borrower escrow funds for the payment of taxes and insurance, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds' for. (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S. C. § 2601 et seq. ("RESPA'), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may 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. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes payment of such Escrow Items to the holder or servicer of a mortgage encumbering the Property which has priority over this Security Instrument and which was approved by Lender at the time of origination of this Security Instrument (an "Approved Senior Security Instrument"). The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not change Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays to Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one (1) time charge for an independent real estate tax reporting service used by Lender in connection with the loan evidenced by the Note, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may 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, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. CMC: IIIII?IM'1111110TH11111 IN10111 iN1011111 111011 BK l 836PG?+ 1 12 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 2 of 12 If the Funds held by Lender exceed the amounts permitted to be held under applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case, Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve (12) monthly payments, at Lenders sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 19, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Properly, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. 3. Application of Payments Lender will apply all payments received under paragraph 1 in accordance with terms of the Note. 4. Charges; Liens; Approved Senior Security Instrument Borrower shall pay or cause to be paid, when due, all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower covenants and agrees to timely perform all of the Borrower's obligations under any Approved Senior Security Instrument, including by way of example and not by way of limitation, Borrower's obligation to make all payments when due under such Approved Senior Security Instrument and the note or other obligation secured thereby. Borrower shall promptly discharge any lien which has priority over this Security Instrument (other than an Approved Senior Security Instrument) unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests In good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lenders opinion operate to prevent the enforcement of the lien; 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 may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within ten (10) days of the giving of notice. 5. Hazard or 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 floods or flooding, for which Lender or applicable law requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender, or applicable law requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lenders approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. 111111 1 NOW& 1111111 IN1101111 109191111 1111111 9KI836PG4113 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 -Page 3 of 12 All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. 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, and subject to the rights of the holder of any Approved Senior Security Instrument, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied, subject to the rights of the holder of any Approved Senior Security Instrument, to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within thirty (30) days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender, subject to the rights of the holder of any Approved Senior Security Instrument, may collect the insurance proceeds. Lender may use the proceeds received by Lender to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The thirty (30) day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds Unless Borrower's loan application and the Lender's loan approval provided that the Property was not required to be occupied as Borrower's principal residence, Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty (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 unreasonable withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the 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. BK1836PG4114 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 4 of 12 T. Protection of Lender's Rights in the Property If Borrower fails to perform the covenants and agreements contained in this Security Instrument or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, paying real estate taxes, flood insurance and mortgage insurance premiums, entering on the Property to make repairs, and paying property insurance premiums. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument, if and as permitted by applicable law. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance If Lender required mortgage insurance as a condition of making the loan evidenced by the Note and secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, 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 approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement of mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. IN1'r111 111 1111 1010111 100/1111 I 1 11 BKI836PG4115 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 5 of 12 10. Condemnation The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or any part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, subject only to the rights of the holder of any Approved Senior Security Instrument. Unless Lender and Borrower otherwise agree in writing, any application of such proceeds which does not pay the sums secured by this Security Instrument in full, shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. 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 any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or 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 Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder or under the Note shall not be a waiver of or preclude the exercise of any other right or remedy at that time, or of the same or any other right or remedy at any other time. 12. Successors and Assigns Bound; Joint and Several Liability; Co-Signers The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 19(B). Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower'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 may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges If the loan secured by this Security Instrument is subject to a law or regulation which sets maximum loan charges, and that law or regulation 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 exceed 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 under the Note. 011Sell 01M111NN11011 IM19511 I0111111 111111 BKI836PG41 16 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 -Page 6 of 12 14. Notices Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first-class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first-class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Borrower's Copy Borrower acknowledges receipt of a conformed copy or a photocopy of the Note and of this Security Instrument. 17. Sale of Note; Change of Loan Servicer The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the "Loan Servicer' that collects monthly payments due under the Note and this Security Instrument. There also may 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 in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other information required by applicable law. 18. Hazardous Substances Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. 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. 1011/110 I ' ININ 1110@11 101/1101 10111 nuI836PG4117 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 7 of 12 Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any govemmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, 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. As used in this paragraph 18, "Hazardous Substances' are those substances defined as toxic or hazardous substances 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. As used in this paragraph 18, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. 19. Lender's Rights if Borrower Fails to Keep Promises If any of the events or conditions described in subparagraphs (A), (B), (C) or (D) of this paragraph 19 shall occur, Lender may, after providing any notice of and right to cure default as required by and in accordance with applicable law, require that Borrower pay immediately the entire amount remaining unpaid under the Note and this Security Instrument. This requirement will be called "Immediate Payment in Full". If Lender requires Immediate Payment in Full, Lender may, without further demand, foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing foreclosure, including but not limited to, attorney fees and costs of true evidence to the extent perrnitted by applicable law. Subject to the applicable notice and cure provisions, if any, set forth above in this paragraph 19, Lender may require Immediate Payment in Full under this paragraph 19 if: (A) Borrower is in default under the terms of the Note; or (B) 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, if a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent; or (C) Borrower fails to make any required payment when due on any Approved Senior Security Instrument, or if Borrower fails to keep any other promise or agreement contained in any Approved Senior Security Instrument; or (D) Borrower fails to keep any other promise or agreement in this Security Instrument within the time set forth, or if no time is set forth in this Security Instrument, then within the time set forth in the notice sent to Borrower by Lender, or if Borrower is otherwise in default under this Security Instrument, or if any of the covenants, representations and/or warranties made by Borrower in this Security Instrument are not true and correct in any material respect or are otherwise breached by Borrower. CMC: sail a-seoww 04V MOAN" 8KI836PG4118 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 8 of 12 20. Release Upon payment in full of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs as permitted under Applicable Law. 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. 21. Waivers Borrower, to the extent permitted by applicable law, waives and releases any errors 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. 22. Reinstatement Borrower's time to reinstate, to the extent, if any, provided in paragraph 19, shall extend to one hour prior to the commencement of bidding at a sheriffs sale or other sale pursuant to the this Security Instrument. 23. 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. 24. Interest Rate After Judgement Borrower agrees that the interest rate payable after a judgement is entered on the Note or in an action of mortgage foreclosure shall be the rate payable from time to time under the Note. 25. Riders to this Security Instrument If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. BKI836PG4119 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 9 of 12 - REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SENIOR MORTGAGES OR DEEDS OF TRUST - Borrower and Lender request the holder of any mortgage or deed of trust or other lien or encumbrance which claims to have priority over this Security Instrument (called 'senior lien] to give notice to Lender, at Lender's address set forth on the first page of this Security Instrument, or at any other address for notice provided by Lender to such holder, of any default under such senior lien and or any intended foreclosure, sale or other actions to enforce such senior lien. This request for notice is not intended, nor shall it constitute, an admission by the holder of this Security Instrument that any mortgage, deed of trust or other lien or encumbrance has priority over this Security Instrument. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. IN WITNESS WHEREOF, Borrower has signed and sealed this Security Instrument. STANLEY E. DOUG w SARAH B. DOUGLAS BARRY L. LO MARY K. ZREMAN Witness: 61?? WITNESS I hereby certify that the precise address of the Lender (Mortgagee) is 2 GATEHALL DRIVE, PARSIPPANY, NJ 07054. On Behalf a Lender. l ?r >_T-rLr SCWIiC' , r_c By: Title: ??1?1pt:2-5?Qtz IIE11i111000 11011 11111111111 IIN011111 [11111 BK 1836PG4120 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 10 of 12 COMMONWEALTH OF PENNSYLVANIA ss: COUNTY OF,eumBERt?4NpZQufk,?,v? ) On this TH day of S EMBER, 2003, before me l7e- 17VIU-9eg, the undersigned e.officer, personally appeared STANLEY E. DOUGLAS MARRIED, SARAH B. DOUGLAS MARRIED, BARRY L. LOREMAN MARRIED, MARY K. LOREMAN MARRIED known to me (or satisfactorily proven) to be the person(s) whose name(s) Ware subscribed to the within instrument and acknowledged that he/she/they executed the same for the purposes therein contained. In Witness Whereof, I hereunto set my hand and official seal. Notary Public My Commission Expires: NOTARIAL SEAL ANNE E. MOUSER, NO Pubk Lower Paxton Twp. Ua ? 01'1111Nii?1111 IN110311 ? igoogol 10111 BKI836PG4121 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 11 of 12 ORDER #; 371468 FOGMIT A ALL THAT PARCEL OF LAND IN TOWNSHIP OF MONROE, CUMBERLAND COUNTY, COMMONWEALTH OF PENNSYLVANIA, AS MORE FULLY DESCRIBED IN DEED BOOK 258, PAGE 3736, ID# 22-11-0278-078, BEING KNOWN AND DESIGNATED AS BEING LOT NUMBER 1 IN THE PLAN OF LOTS OF FRANK E. STONER, AS RECORDED IN PLAN BOOK 57, PAGE 53 (ERRONEOUSLY REFERRED TO AS PLAN BOOK "Q", VOLUME 36, PAGE 106 IN THE DEED IN THE CHAIN OF TITLE), CUMBERLAND COUNTY RECORDER OF DEEDS OFFICE, MORE PARTICULARLY DESCRIBED AS METES AND BOUND PROPERTY. DEED FROM BARRY L. LOREMAN AND MARY K. LOREMAN, HIS WIFE AS SET FORTH IN DEED BOOK 258, PAGE 3736 DATED 06/18/2003 AND RECORDED 06/18/2003, CUMBERLAND COUNTY RECORDS, COMMONWEALTH OF PENNSYLVANIA. t Cc'-t;k !y this to be recon' In Cumbc. •, hind County I Page 2 of 6 ?cI. of Tc;k pis ? BKIB36PG4I ,y 05/08/2012 9:49:29 AM CUMBERLAND COUNTY Inst.# 200351910 - Page 12 of 12 EXHIBIT "C" 1 R1 73 T.A. OF LANCAST 329 A MAIN ST. '' "ntoi538 +A07ER1 P. L;ECLER c, 130=M& PCORDER OF DEEDS C? M' ERRAND C0JINTY-PA (Company Name) 39 RUG ZO flM 10 0 17&rne of Ahtwel Person] 3465 H. Pbotbill Blvd. jSbroet Adaa7ese] Pasadena, chi 91107 [City, Slate Zip Code] M EH - 1 q4B [Specs Abwe n* Lkw Far Reoar ft Dab.] MORTGAGE DEF941TIONS MIN 1000554012OM2891 Words used in multiple semons of this document are defined below and other wards 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 July 27, 2004 together with all Riders to this document. (B) "Borrower"is Stanley Douglas, Sarah B. Douglas, and Barry L. Loreman, Mary K. Loreman . Borrower is the mortgagor under this Security Instrument. (C) "N=S" is Mortgage Electronic Registration Systems, Inc. MERS is a sgharate corporation that is acting solely as a nominee for Lender and Leader's successors and assigns. MMS is the mortgapae under this Security Instrmnent. MFRS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is MXtAW Bank, F.S.B., a federally cbartered savings bank Leader is a Fedeval Savings Bank organized ad adding under the laws of United States of An riCd Leader's address is 155 Pbrth bake Aventm, Pasadena, CA 91101 (E) "Note" means the promissory note signed by Harrower and dated JU3.y 27, 2004 . The Note states that Borrower owes Leader cne buorldred fifty selves tlr0 mnd five hamdred and ND/100ths Dollars (U.S. S 157, 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 August 1, 2034 L= NO: 120115289 P?aarytvedr Mkrlpp-81a0e F?zn*F=mk hfmffl t Mat UNUNDRM RNMUMMT MW Medbd Fars 3639 OlA1 -T= COMPUANCS SOURCt, INC.- Pyr 1 of 14 14M PA 6040 a.v. MAO Wr Aamptao...oa..am 4=3.'RaQaw0Wm.3ao...,Ion. 8K 1877PG4462 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Paqe 1 of 21 (P) "Property" means the property that is described blow undo the heading 'Transfer of Rights in the Property." (G) "Loon" 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 Sassily Instrument, plus interest. (l) "Riders" means all Riders to this Security Instrument that are acecaued by Borrower. The following Riders are to be executed by Borrower [Mod box as wkabbt ? Adjustable Rate Rider ? Condominium Rider ? Second Home Rider ? Balloon Rider ? Planned Unit Development Rider ? Biweekly Payment Rider ? 1-4 Family Rider ? Revocable Trust Rider Q Other(s) 18P000Y] Fixed/Adjustable Rate TABOR Rider (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, admancrs and administrative rules and orders (that have the effect of law) as well as all applicable final, nom-appealable judicial opinions. (,n "Commudty Association Dues, Fees, card Assassoemb" moans all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Prods Transfer" meow any transfer of ands, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through as dectrank 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 transfn, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated cleeringbouse traadrrs. (L) "Escrow Item" means those items that are described in Section 3. (M) "Miscellwoons ProceW meets any compensation, settlement, award of damages, or procce a paid by any third party (other then insurance proceeds paid under the coverages described in Secticm S) for: (1) 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. (1) "Mortgage Insurance" means insurance protecting Lender against the nonpayment og or default on, the Loan. (U) "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 Saarrity Instrument (P) "RESPA" mans 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 tom time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" rders to all requirements and restrictions that are imposed in regard to a 'Tederally related mortgage loan" even if the Loan does not qualify aw a "Werally related mortgage ban" under RESPA. (Q) "Successor In Interest of Borrower" mans 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 IQ NO: 12013,5289 Past h Mae -? FSFAV-Fmmb Mr/ *od& Mee UNDO WrjWMPIT 11+I M IY%d15Pd Farm 3 34 KNI T= CODBiJANa SOURCa6 Inc. Pro t 0(14 14SWA war Nov. WM CDOr3? 71rEo?M Ion " AQMFN- BK 1877PG4463 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 2 of 21 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 cova=U and agreanents under this Security Instrument and the Note. For this purpose, Borrower does haft mortgage, grant and convey to MERS (solely as nominee for Lander and Lender's successors and assigns) and to the successors and assigns of MERS the following described property located in the Count of t7YAa dRaoad0ylunrdlbdbnj (lWma d/4aaardip JWidVoaon] Tax Pwool A0 No.: 9999 Legal deecripti cn attached hereto and mmerrle a part hereof. . which currently has the address of 1330 William Gcom Road Mer?+A*+,? .?*'? , Pennsylvania ?70 5 (`Property Address") 9* Godi1 TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hera8e a part of the property. All replacements and additions shall also be covered by this Security Inslttnnent. All of fine huegoing is rdwed to in this Sams* Instrlmient as the "Property." Borrower understands and agrees that MFRS holds only legal tide to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or c usk m, MFRS (as nominee for Lender and Lender's successors and assigns) has the right: to a cercise nay or all of those interests, intruding but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawlirlly 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 ad Leader covenant and agree as follows: 1. Pscynsent of Prlaclpal, bft nsk Zftrow 111e91a, PrepW=W Cl agges, and Late Charges. Borrower shall pay when due the principal 4 and interat on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay 8mds 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, Leader may requite that any or all aftequent p qm mss due under the Note and this Security instrument be made in one or more of the Wowing forms, as selected by Lender: (a) rash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon in institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Ioan No: 12OU5289 P6=ghat Moe%gp4Hm r Fanny-Finai Mm/Fndit Mee a nom vamut7Ma T Mina ft M 'Form 3939 31/01 Tim CONrIimcz Souxc % W-- Pqp 3 OF 14 I~A Meal Rvv. WU ""ti'mMOPIMONOWROA°° 00003,1UCQWA-8---%J-- BKI077PG4464, 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 3 of 21 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 curreaL Leader may accept any payment or partial payment muffidlent to bring tine Loan current, without waive of any rights hereunder or pr*ldice to its right to rellm sack payment or partial payments in the fiwwe, but Leader 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 Leader need not pay interest on unspplied finds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does net do so within a reasonable period of time, Leader shall either apply such fiords or return Wen to Borrower. If not applied earlier, such fiords will be applied to the outstanding principal balance under the Note immediately prior to threclosuae. No offiet or claim which Harrower might have now or in the Uwe against Leader shall relieve Borrower firm making payments due under the Note and this Security Instrument or pwt wmmg the covenants and agreements seared by this Security Instrument. 2. Appdcaltim of Payumb or Proceeds. Except as otherwise described in this Spec Lion 2, all payments accepted and applied by Lender shall be applied in the *&wing 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 c horges, second to any other amounts due under this Security Instrument, and than to redaace 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, die payment may be applied to the delinquent payment and die late charge: If more than one Periodic Payment is outstanding, Leader may apply any payment received from Borrower to the repayment of the Periodic Payments K and to the extent that, each payment can be paid in full. To the extent that any excess exists aft the payment is applied to the fiall 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 die due date, or change die amount, of the Periodic Payments. 3. Frieda for Fswm Ito- Borrower shall pay to Lender an the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain pcionty over this Security Instrument as a lien or entamabrance on the Property; (b) laschold payments or ground rents on the Property, if any; (e) premiums for any and an insurance required by Leader under Section 5; ad (d) Mortgage his rsom premiums, if any, or any arms payable by Borrower to Lender in lieu of the payment of Mortgage Insurance preminma in accords m with the provisions of Section 10. These items an called "Escrow Items." At origination or at any time during the tam of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if my, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly Ibmish to Leader all notices of amounts to be paid under this Section. Harrower shall pay Leader the Fends for Escrow Items unless Leader waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lcnda may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Aay such waiver may only be in writing. In We event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Fends has been waived by Lend and, if Leader requires, shall famish to Leader receipts evidencing such payment within such time period as I= 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'tovenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, ad Borrower fails to pay the amount due for an Escrow Item, Leader may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lauder any such amount. Lee Wa may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, span such revocation, Borrower shape pay to Lender all Funds, and in such amounts, than are then required under dais Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at tae time specified under RESPA, and (b) not to exceed the maximum amount a lender can. require under Loem NO: 1202$9 P?rrylv?la bbrtpp-gb& Fan&j4=xb MoNlhdib Mn U141201 W U41rrRUMR•NT hm" Nldle" Forum 3439 41101 T= COMLLVXM BOtRC36 D C - Pep 4 of 14 I~A M 11m. OW •?? ?+? 9=3.11rC=*1m*5oor,%1oe. BK 1877PG4465 05108/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 4 of 21 RESPA. Leader shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of Marc Escrow It= or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are WwW by a federal agency, instrumentality, or entity (including Lender, if Leader is an institution whose deposits are so insured) or in any Federal Home Loan BaaL Lender shall apply the Funds to pay the Escrow Ite na no Inter tion the time sp=fied under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the acrow account, or vaibing the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Leader 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 awnings on the Funds. Borrower and Lander can agree in writing, however, dug interest shall be paid on the Funds. Leader shall give to Borrower, without charge, an annual accounting of the Finds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Leader shall account to Borrower for the excess fads in accordance with RESPA. If them is a shortage of Ftmds held in escrow, as defined under RESPA, Lender shall notify Harrower as required by RESPA, and Borrower shall pay to Leader the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds heel in escrow, as defined order RESPA, Linder 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. Upon payment in hull of all sums seaared by this Security Instrument Lender shall promptly refund to Borrower any Funds held by Leader. 4. Charges; LUm Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Iastrumnent, le nchc d payments or ground rents on the Property, if any, and Community Association Dies, Fees, and Assaaments, if any. To the extent that these items are Escrow Items, Borrower shalt pay them m 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 obliga im secured by the lien in a manner acceptable to Leader, but only so long as Borrower is pwfxn ing such agreement; (b) cantata the lien m good faith by, or defends against enforcement of the lien in, legal proceedings which in Leader's opinion operate to prevent the enforcement of the lien while those procmhnp are pending, but only until such proceedings are concluded; or (c) secure Rom the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Leader determines that say part of the Property is sabjed to a hen which can attain priority over this Security Instrument, Leader may give Barower a notice identifying the lien. Within 10 days of the date an which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set ford above in this Section 4. Leader may require Borrower to pay a onetime charge for a real estate tax verification and/or reporting service used by Leader in connection with this Loan. 5. Property Inawanee. Borrower shall keep the improvements now a dating 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 Lander requires insu rsum This insurance shall be maintained in the amounts (including deducdWe levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change dating the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower s*ecx to Lender's right to disapprove Borrower's choice, which right shall not be marcised mn essonably. Lender may require Borrower to pay, in connexion with this Loan, either: (a) a one-time charge for flood zone determartiaa, certification and trading services; or (b) a one-time charge for flood zone determination and certification savica and subsequent charges each time remappings or similar chamga occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fora imposed by the Federal Emergency Uhn age ment Agency in connexionwith the review of say flood zone determination resulting Morn in objection by Borrower. If Borrower Sill to maintain any ofthe coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Leader is under no obligation to purchase any particular type or amount of coverage. Therefore; such coverage shall cover Leader, but might or might not prated Borrower, Borrower's Iran ffQz 120315289 Ps ylvads h19r%pV4W& F=Qy6Fmu* himAhvidit Mn LMEPOSM IIYSrntl *WM MFas arlod96d For= 3039 01101 T9>. Corer icons Suvacs, lxc. Pop 5 Stu IOWA nit aw. OM wWaaopffiM0=QM*@ ao cnm71rCepsaaayloo. BK 1877PG4466 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 5 of 21 equity in the Property, or the contents ofthe Property, against any risk, hazard or liability and might provide greater or lesser coverage dm was previously in effect. Borrower admowledges that the cost of the insurance coverage so obtained might sigoi icautly 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, There amounts shall bear interest at the Note rate f om, the date of disbursement and shall be payable, with such interest, upon notice from Leader to Borrower requesting payment. All iasuaranc a 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 close, 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 Lenderrequires, Borrower shall promptly give to Lender all receipts of paid prasunlms 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 dame and shall name Lender as mortgagee and/or as an additional loss payw- In the event of loss, Borrower shall give prompt notice to the insurance carrier and Leader. Lender may make proof of loan 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, :hall be applied to restoration or repair of the Property, if the restoration or repair is economically fassible and Lender's sec city is not lessened. During such repair ad restoration period, Lander 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 satiafkction, provided that such inspection shall be undertaken promspdy. Ladder 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 Harrower any intereat or earnings on such proceeds. Fees f'br public adyaaten, or other third parties, retained by Harrower 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 seared by this Secondly Instrument, whether or not then due, with the access, if any, paid to Borrower. Such insurance proceeds shall be Whed in the order provided for in Section 2. If Borrower abandons the Property, Lender may fate, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice bom Leader 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 insw ace 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 ref?imd of unearned premium paid by Borrower) under all insurance policies covering the Property, msofw 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 InatrumaK whether or not then due. 6. Oeapang. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days aflrer the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year aft 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, Mdnteaanee and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste m the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to preveot the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section S 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 condenonadon proceeds are paid in connection with damage to, or the tatting of; the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such proposes. Lender may disburse proceeds for the rquirs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds P.a"lv?la Ton Coale MMY-F .Eft MAWnod b Mw UMMMM DUMMUMCNT MEna bbditd Fier 30" ®U41 react For 6 of 14 14MPA I a.v. OW C=3, 7b@ Coryinn Sow*%1w. SKI877PG4467 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 6 of 21 are not sufficient to repair or restore the Property, Harrower is not relieved of Borrower's obligation for the x ipldion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Leader may inspect the interior of the improvements on the Property. Leader shall give Borrower notice at the time of or prior to such as interior inspection specifying such reasonable cave. S. Borrower's Loan Application. Borrower shall, be in default K during the Loan apphcatioa ka', Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or macauate intbrmation or statements to Lender (or failed to provide Lender with material in>lannation) in connection with the Loan. Material representations mdudq but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Probcedoe of Leader's Interest In the Property and Bkglb Under, this Seem* Inurement. If (a) Borrower fails to perfrrm 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 Instrument (such as a proceeding inn banbVicy, probete, for condemnation or farfiature, for ent'orcem ent of a lien which may attain priority over this Searity Instruuaent or to entbrce laws or rgpgationsl or (c) Borrower has abandoned the Property, them Leader may do and pay for whatever is reasonable or appropriate to protect Larder'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 rgmmg the Property. Leader's actions can include, but are not limited to: (a) paying any sums seared by a lien which has priority over this Security Inrtnument; (b) appearing in court; and (c) paying reasonable attorneys' fen to protect its interest in the Property and/or rights under this Security Inatrnment, including its seamed position in a baolcroptcy proceeding. Securing the Property includes, but is not limited to, catering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, dominate building or other code violations or dertgerous conditions, and have utilities turned on or off Although Lead may take action under this Section 9, Lends does not leave to do so and is not under any duty or obligation to, do so. It is agreed that Lander incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lauder under this Section 9 shall become additional debt of Borrower secured by this Seauity Instrument. These amounts shall bar interest at the Nate rate 5nm the date of disbursement and shall be payable, with such interest, upon notice from Lender to Harrower requesting payment. If this Saarity Instrument is on a leasehold, Borrower shall comply with all the provisions of the 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 lksarance. If bender required Mortgage Insurance as a condition of making the Loan, Borrower shill pay the preainms required to maintain the Mortgage Insurance m effect. A for any reason, the Mortgage hmmince coverage required by Lender ceases to be available f omm the mortgage insurer that previously provided such insurance and Baaower was required to makor; separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the preamiumms required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effxt, at a cart substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an ahernate mortgage insurer selected by Landa. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shaU corntmne to pay to the amount of the separately designated payments that were doe when the insurance coverage ceased to be in effect. Linder will accept, use and retain than payments as a non-refundable loss reserve in lien of Mortgage Insurance. Such Iona reserve shall be non-refmdable, nolaithspsndiog t6efact that the Loan is uWMMdy PAW in M and Lender "no be required to lay Borrower any interest or earnings an such Ions reserve. Linder can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Leader requires) provided by an iuaurersedated by Lender again becomes available, is obtained, and Lender requires seedy dewed payments toward the preauums for Mortgage hnsm=ce. If Leader required Mortgage hmmmce 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 Inaarmce in e ffeM or to provide a upon-refuuulable loss reserve, until Leader's requirement fbr Mortgage insurance ends in aeoordance with any written agreement Icam NO: 120115289 P?PUrrir MW ftW kwIP F=Ih4wnb Mw/phiiaY Mee UMFORM ff4yn h=T %IM P " W Fa 3x99 OIAI -rS DW-- Pqp Tear 14 10MA I acv. MW T1W Camp"" 500"14 L.& 8K 1877PG4468 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 7 of 21 between Borrower and Lander providing for such termination or until termination is required by Applicable Law. Nothing in this Sodom 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Leader (a any entity that purdwas 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 dies total risk on all such insurance in three from time to tiny and may enter into agreements with other parties that abate or mod* their risk, or reduce losses. These agreements are on tans and conditions that are sxdsbctory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage inmarer to make payments using any source of I=& that the mortgage insurer may have available (which may include finds obtained from Mortgage Insurance premiums). As a result of these agreements, Leader, any purchaser of the Note, another insurer, any remora, any other entity, or any affiliate of any of the foregoing, may receive (directly or hx1irectly) amounts that derive ftom (or night be characterized aa) a portion of Borrower's payments for Mortgage Insurance; in cWhange for sharing or modif*g the mortgage insura's risk, or reducing losses. If such agreement provides that an affiliate of Leader takes a share of the insirer'a risk in aWlia age for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such a:reeawnb will not affect the assouats brat Borrower has agreed to pay for Mortgage Insurance, or any Bier berms of the boas. So& agreonab will rot lownese the aasowt Borrower will owe for Mortgage Iapraaee, and trey will ant =*k Borrower to any refund. (b) Any sacs agreenumb will not atfact the rifts Borrower has - if any - with respect to the Mortpge Insurance order the Honeowners Protecd n Act of 1"S or ray od w law. These riots may include the right to receive certain disclaaores, to regaaat and obtain cxudbdan of the Mortgale Insurance, to have tie Mortprge )f uwmce tasseled entlo¦satially, and/or to receive a reh ad of ray Mortgage Insurance premium fiat were wearaed at the dm of mch aacellatloa or terwaatlon. 11. AselPsneat of MlscelWeoaa Proceeds; Forfeiture, All Miscellaneous Proceeds are hereby assigned to and shall be paid to Leader. 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 tesible and I.eoclerIa security is not lessened. During such repair and restoration period, Lends shall have the right to hold such Miscellaneous Proceeds until Lander has had an oppanmity to inspect such Property to ensure the work has been completed to dander's satisfaction, provided that such inspection shall be undertaken promptly. Leader may pay for the repairs and restoration in a single disbursement or in a series of progress payments as due work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Hecellaneout Proceeds, Leader 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 Leader's security would be lessened, the Miscellaneous Proceeds shall be applied to the mums secured by this Security Instrument, whether or not then du>e, with die carets, if any, paid to Barrows. Such Miscdianeouus 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 sumo seared by this Security Instrument, whether or not then due; with die excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loan 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 befae the partial taking, destruction, or doss in value, unless Borrower and Leader otherwise agree in writing, the sums sacred 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 seared im no tdy before the partial taking, dea raction, 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 lea than the amount of the sums segued immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise Ivan NO: 120115289 Pa ghMb ShV%F=Q/-Farb McWn" Mac UNH OW UUNItUMOff b8W Mid Foes 3e39 KAI T= Co muncs aovacs, INC.- Pup a ort1 iearw M Ra& we, ?rso?git?oo?oar?am ?.71rCmpto??s?.]ao. 8K i 877PG4469 05/08/2012 9AT34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 8 of 21 agree in writing, the Miscellaneous Proceeds shallbe 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 K 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 fbr damage, Borrower fails to respond to Leader within 30 days after the date the notice is given, I andar is authorized to cohere and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security 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 krkture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Boasower can cure such a dexbult 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 Leader's judgment, precludes forfdbve of the Property or othr material impairment of Lender's interest in the Property or rights under this Security Instrument. 'Ihe proceeds of any award or dam for damages that are attributable to the impairment of Loader's interest in the Property are hereby assigned and shall be paid to Leader. 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; Forbearasot by Larder Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Leader to Borrower or any Successor in Interest of Borrower shall not operate to release fire liability of Borrower or any Successors in Interest of Harrower. Leader shall not be required t0 commence proceedings against any Successor in Interest of Borrower or to recluse to extend time for payment or otherwise modify amortization of the sums segued by this Security instrument by reason of any demand made by the original Harrower or any Successors in Interest of Borrower. Any forbearance by Leader in acardsmg any right or remedy including, without 'imitation Lender's acceptance of payments ftnm 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 acid Several LabWty; Cadp us; Succemors and Amps Hassid. 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 co4* m's interest in the Property under the two of this Security Instrument; (b) is not personally obligated to pay the sums segued by this Security Instrument; and (c) agrees that Leader and any other Borrower an 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 Harrower who assume Borrower's obligations under this Security Instrument in writing, and a approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Harrower shall not be released Rom Borrower's obligations and liability under this Security Instrument unless Lender gees 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 Leader. 14. Lmn Charges. Lender may charge Harrower foes far services performed in connection with Borrower's default, for due purpose of protecting Lender's interest in the Property and rights under this Security Instrument, mcludm& but not limited to, attorneys' fees, property inspection and valuation. fees. In regard to any other fees, the absence of cWess authority in this Security Instrument to c harp a specific fee to Borrower shall not be construed as a prohibition an the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Appliabie 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 chore 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 rebmded to Borrower. Leader may choose to make this refimd by reducing the principal owed under the Note or by making a direct payment to Borrower. If a rcft and reduces principal, the reduction will be treated as a partial prepayment Loan NO: 120115289 Pet yMWI* Mw%Wft& Faao*Fmmb Mw7n&lk Mae UNUFORM DW NT ham MadMd Fare 363! Simi T= C0WWL =9001M DOC - Pap 9 or14 I~A wowLwMeat . Aouvb ,o 0=3,T1»Cvwp1n iowsktea. BK 1877PG4470 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 9 of 21 without any prepayment charge (whdher or not a prepayment charge is provided for under die Note). Borrower's acceptance of any such rcdmd made by direct payment to Harrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 1S. Notices. All notices given by Borrower or Lender in cometion with this Sammy 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 seat by other means. Notice to any one Borrower shall constitute notice to all Borrowers mien Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has wed 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 trough that specified procedure. there may be only one designated notice address under this Security instrument at any erne time. Any notice to Treader shall be given by delivering a or by Mailing it by first class mail to Leader's address stated herein udiess Lender has designated another address by notice to Borrower. Any notice in connection with this Sauuity Instrument shall not be deemed to have been given to Lender until actually re roved by Lender . If any notice required by this Seauity Instrument is also required under Applicable Law, the Applicable Law requirement will sad* the corresponding requsiement under this Seauity Instrument. 16. Governing Law; Seversbliity; Was of Coadr mMm Ibis Security Instrument shall be governed by federal law and the law of the ju isdicti on 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 partial to agree by contract or it might be silent, but such silence shall not be construed as a proidbition against agreement by contracL In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such c milict shall not aflred other provisions of this Security Instrument or the Note which can be given effect without the eonilicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mein and include corresponding neuter words or wards of the feminine gender; (b) words in die singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion wiihhout any obligation to take any action. 17. Borrower's Copy. Borrower doll be given one copy of the Note and of this Searity Instrument. 18. Trander of the Property or a Heaeleid 11h0ened 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, time beneficial interests transferred in a bond far deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a Uwe date to a purchaser. If all or any part of the Property or any Interest in toe 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 suss segued 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 hils to pay these sums prior to the expiration of this period, Leader may invoke any remedies permitted by this Swmty Instrument without fiu her notice or demand on Borrower. 19. Borrower's Right to Rdnstde After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enfhromrent 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 far die termmatian of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are dust Borrower: (a) pays Leader all sums which then would be due under this Security Instrument and the Note as if no acceleration had oeansed; (b) cures any default of any other covenants at 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 Se=* Instrument; and (d) takes such action as Lender may reasonably require to erasure suit Leader's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums seared by this Security Instrummt, shall Loan NO: 12OUS289 PSaWyWi NIOe%PV.91Mb Pam11y =1k Mm4W&ft Mee UNDKIRM WgrRU M01'r Mesta Mid Pw=MM 41/01 1 .owe. 'rNC. - r4pleo[1L Q=3WCa PffiM"SMfarlM SKI877PG447I 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 10 of 21 continue unchanged. Lends may require that Borrower pay such rent sums and a gmnses in one or more of the following forma, as selected by Leader: (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 Punds Thmsfer. Upon reinstatement by Borrower, this Security Instrument and obligations sawed hereby shall remain folly dbctive as if no acceleration had occurred. However, this right to reinstate shall not apply in the cue of acceleration under Section 18. 20. Sak of Nebo; Chasse of Las Savhw,- Notre of Grkvaaoe. The Norte or a partial interest in the Now (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 "Low Service") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage ban servicing obligations under the Note; this Security Instrument, ad Applicable Law. 'there also milt be one or more changes of the Loan Services unrelated to a sale of the Note. If there is a change of the Loan Servieer, Borrower will be given written notice of the change which will state the name and address of the new Loan Savieer, 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 Lon Saview either than the pwduser of the Note, the mmtgago loan servicing obligations to Borrower will remain with the Loan Services 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 die member of a class) that arises hom the o dur party's actions pursuant to this Security Instrument or that allege that the other party has breached any provision o4 or any duty owed by reason ot, this Security Instrument, until such Harrower 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 dam befire 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 sae given to Borrower pursuant to Section 22 and the notice of. acceleration given to Harrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take curative action provisions of this Section 20. 21. Hazardous Ssbstsum As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substance, pollutants, or wastes by Environmental Law and the following substances: gasoline; kerosene, other flammable or toxic petroleum products, toxic pesticides and hetwides, volatile solvents, materials containing asbestos or formalddryde, 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 Clenup" includes any response scum remedial action, or removal action, as defined in Environmental Law; and (d) ao "Environmental Condition" means a condition that can causes contribute to, or otherwise trigger m Environmental Cleanup. Borrower shall not cause or permit the presence, we, disposal, storage, or release of any Hazardous Substances, or threaten to release my Hazardous Substance, 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, doe to the presence, use; or release of a Hazardous Substance, creates a condition thud adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, user u storage on the Property of small quantities of Hazardous Substance that are generally recognized to be appropriate to normal residential use 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 prime party involving the Property and soy Aazurdous Substance or Environmental Law of which Borrower has actual Imcmdedge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a HHmardous Substamce 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 remediatim of any Hazardous Substance affecting the Property is necessary, Lom No • 120]15 89 B'?yh-- MnlpWeiq & P&=0y-Fm0WP Mmft%"& Mn UMPO11M IIYSratlIIYWT m1=5 Mori FWW 303! KAI T= CoiQLiMCS /oolCS, DW-- Yqp 11 or m warty a AM WW wwae?ew?aaaca OaOA TLS Cam?M ?Iro. BK i 877PG4472 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 11 of 21 Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Leader for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and I ender ffluiher covenant and agree as follows: 22. Acceleration; Renedles. Leader AM give nods to Borrower prior to acederadon fdlowIng Berrower's breach of arty covenant or a g reammat In tib Seem* Instrumment (best not prior to acceleration under Sodom 19 antra Applicable Law provides dberwbe). Leader aid so* Borrower o4 among otter things: (a) the default; (b) tie action regalred to are the default; (c) wren tde default mast be cared; and (d) Heart failure to cure tie ddm& as apaMd any remit is acederadon of the sass secured by this Security Iustruwem4 foredoaore by Jedkid proceeding and auk of tie Property. Lender dwR father inferve Borrower of the right to Mutate altar acederadon and the right to aaert in the foreeleare proceeding the non-e istem of a ddmk or my other defecae of Borrower to accelesudem and fordo care. If the default is not cured as specified, Lender at Its option may require tasanedlate payaaent in toad of all mm secured by this Seem* Indrowdant wNhout further demand and ssy foreclose this Security Inst rommot by Judicial proms Lender shall be eadded to cedied all enlpattaea Incurred In purs¦dng the reasedies provided in this Sodom 22, bxhd erg, but not limited to, attorneys' fees and cats of We evidence to the ertent peraaltbed by Applicable Law. 23. Release. Upon payment of all sums secured by this Security Instrument, this Security Imtnmsmt and the estate conveyed shall terminate and become void. After such occurrency Latch shall discharge and satisfy this Security Imtrument. Borrower shall pay any recordation costs. Lander 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 a= or defects in proceedings to enforce this Security Instrument, and hereby waives the benefit of any present or fadnre laws providing for stay of exemtion, intension of time, exemption from attachment, levy and sale; and homestead exemption. 25. RdastatenKSt Period. Borrower's time to reinstate provided at Section 19 shall mend to one ho>a prior to the commmcamot of bidding at a sheiff s sale or other sale pursuant to ibis Secxxrhy Instrument. 26. Pwcbare Money Mortgage. N any of the debt secured by this Seaarity Instrument is lent to Borrower to acquire title to the Property, this Security buIr anent 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. ISO WW" on F0*WkV Papq ICM NO; 120135289 Few"b nd.lYt.t%W4IG& Fimaily?Finak Mrffiftd ti MW UMPORM nvlrl7tU ww" &Otsaa 1N.iMt.a Frog am SIAI Tara cossruAAca Sovaca, mC 1'w 12 of 14 lowrw 8Ma... We. ..? AGOWbROMOM- 00003,mwCaR -sommim. BK 1877PG4473 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 12 of 21 BY SIGNING BELOW, Borsoww accepts and agrees to the tams and covenants oontained in this Severity Instrument and in any Rider atecuted by Borrower and recorded with it. (seat) 4kaomer sraey (Seal) L&IL 69LOL _ Sarah B. Douglas tA"m?q (Sew) _Bmmm Mary K. oreman rmwmmq Ol. (Seat) 3mwww Barry L. Loreman NW* Certificate of Residence: I/We do hereby certify that the precise address of the within named mortgagee is P.O. Box 2026, Flint, W 48501- 2026. li Aa of Moeya jAoknowlaafprmW an FaNowkp PaM to= No• 120115289 Ptaa b --M F=Ot-7mokMaMtodOMmUMFO1tMVWrZUMENT ?4=h WWWF==3W 61MI T=Com "m abotcs, xxc. Pt. 13 of 14 14WA *MRw. WM 00007,76?Cam?wsaum%Im. 8KI877PG4474 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 13 of 21 State of ?n/1SS? lUd a- $ County of CLMW wyc CS,E °av 5/ On this, the ? J-0- day of T U the undersigned officer, personally appeared Stanleya 919 . S&Aah 6 1 dL (a S 'a&AA?r L i-a Cem?nand MaAtJ( 1.?Rcma?? before me known to me (or saw ily proven) to be the person(s) whose name(s) is/are snbamzibed to the within instmne at, and acknowledged that hdsha they a =ded the same for the pmposaa diaem contained. In witness whereo4 I here?mto set my hand and nfficw sal. NOW" sm Shirley Ann , Hotary Put`; s°1 y (Seal) Hampden T 00, umberiand Coun W My Commission Expires Apr. 14, 20( fide ofOffkw I&M No 120=2139 Pemryl?aai? Nw,*r4 im& Famitylhde Nwwwaeia mm IAmnam RUTRUlY MT ban hbdjbd Fa= 3839 61101 T= COWLSANQ seeRCS, DIC.-- Pop 11014 i rw wane.. ass WWW 02003 IIr Ca?gYrn aeoroq lm. BKI877PG4475 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 14 of 21 EXHIBIT A File No. LST179-1948-A ALL that certain tract of land and the improvements thereon situate in Monroe Township, Cumberland County, Pennsylvania, bounded and described as follows: BEGINNING at a point on the western right-of-way line of the Williams Grove Road at the comer of Green Lane, as shown on the hereinafter mentioned Plan of Lots; thence along said right-of-way line, South 00 degrees 11 minutes 11 seconds West, a distance of 225.24 feet to a point; thence along the dividing line between Lots Nos. I and 2 on said Plan, South 87 degrees 32 minutes 12 seconds West, a distance of 980.51 feet to a point; thence North 00 degrees 28 minutes 00 seconds East, a distance of 225.29 feet to a point on the southern line of Green Lane; thence along the latter, North 87 degrees 32 minutes 12 seconds East, a distance of 979.40 feet to a point, the Place of BEGINNING. BEING Lot No. 1 on the Plan of Lots of Frank E. Stoner, as recorded in the Cumberland County Recorder of Deeds Office in Plan Book 57, Page 53 (erroneously referred to as Plan Book "Q", Volume 36, Page 106 in prior deeds). BEING the same premises which Barry L. Loreman and Mary K. Loreman, his wife, by deed dated August 18, 2003, and recorded in the Office of the Recorder of Deeds for Cumberland County, Pennsylvania, in Deed Book 258, Page 3736, granted and conveyed unto Barry L. Loreman and Mary K. Loreman, his wife and Stanley E. Douglas and Sarah B. Douglas, his wife. BEING Parcel Number: 22-11-0278-078 R 1877PG4476 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 15 of 21 FIXED/ADJUSTABLE RATE RIDER mum ]oases - Rabe Caps) MIN: 100055401201152891 THIS FDCED/ADJUSTABLE RATE RIDER is made this 27th day of July, 2004 , and is incorporated into and shall be deemed to amend ad 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 Borrower's Note to m3dymc Bank, F. S. B. , a federally Chartered savings bank (the 'Lender') of the same date and covering the property described in the Security Instrument and located at: 1330 Willia= Grove Road, M9Cbi3nJC8h rg, PA 17055 [Property Abdrearl THIS NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Leader further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 5.375 SG . The Note also provides for a change in the init[al fixed rata to an adjustable interest rate, as follows: 4. IN7E3ES'T RATE AND MONTHLY PAYMENT CHANGES (A) Chaoge Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of August 2006 , and the adjustable interest rate I will pay may change on that day every 6th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change is called a 'C'hange Date." Loan No: 120115289 MULTISTATE FIXED/ADJUSTABLE RATE RIDER {LIBOR Index) - Single Family Form 4008 4101 Page 1 of 4 8480254 (0104) VMP MORTGAGE FORMS - (800)621-7291 6KI877PG4477 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 16 of 21 (B) The Index Beginning with the first Change Data, my interest cafe will be based on an Index. The "Index" is the average of interbank offered rates for six-month U.S. dollar-daaomioated deposits in the London market ("LIBOR"), as published in The Wall Stud Journal. The most recent Index figure available as of the first business day of the month immediately preoe tug the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give no notice of this choice. (C) CakulaSon of Ckwass Before each Change Date, the Note Holder will calculate my new interest rate by adding tour nzd 23012000ebs percentage points ( 4.250 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest onaeighth of one percentage point (0.125 %). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to may the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Umitg on Interest Robe Cbartgrs The interest rate I am requited to pay at the first Change Date will not be greater than 8.375 % or lees than 4.250 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by mote than 1.000 percentage point(s) (1.000 %) from the rate of interest I have been paying for the preceding 6 mouths. My interest rate will never be greater than 11.375 96. (E) Effective Dote of Changes My new interest rate will become effective on each (heap Dace. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (I+) Nodm of Chaff The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the smount of my monthly payment, any information required by law to be givveendttongme and also the tide and telephone number of a person who will answer any question I may have regar do notice. Won No. 120115289 8480254 (0104) Pogo 2 of 4 Form 4008 4101 ix BK 1877PG4478 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 17 of 21 B. TRANSFER OF THE PROPERTY OR A MENEM14L INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate chattgas to an adjustable interest rate under the terms sated in Section A above, Uniform Covenant 18 of the Security Instrument siyall road as follows: Trundler of We Props_* or a Bwo&W hdar+eat In Borrower. As used in this Section 18, "Interest in the Property" meaar any egd or 1 1-fcid ia- i - in the Property, , but not limited to, those bensficid inaseoste tnmda=red in a bond for deed, contract ..for installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future data to a If all or any part of the or say Iotat+est in the Pro is sold or transfmW (or if Borrower is not it natural and a boadicid interest r?m?r is sold or tameferred) Leader's without prior =cement, Leader may require payment in full of all sums secured this Se Imo. However, this won eihdI not be exercised by Leader if such exercises is prohib by Applic" Law. If Lender exsrcisa this option, Lender shall gtw Borrower notice of acceleration. The notice shall provide a period of not lees than 30 days from the date the notice is Aiwa in accordance with Section 15 within which Borrower must pay all swan secured by this Security Instrument. if Borrower fR& to pa thetas sums prior to the expiration of this period, Lender may ur olm any remedies permitted by this 8ecurhy instrument without farther notice or demand on Borrower. 2. When Boaower's initial fixed interest rate dm *n to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Sepuity Lntroment described in Section B 1 above shall then cease to be in effect, and Hie provisions of Uniform Covenow 18 of the Security Instrument shall be amended to read as follows: Tyraadar of the Property or a Bsaslhid hdored In Borrower. As used in this Section 18, "Interest in the property" metes mW legal or beneficial interest in the Property, decd?d? but not limited to, those benefieid intet+sats tronefened in a bond for doed, 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 ois sold or hazWarred (or if Borrower is not a natural person and a bmafieid inform in JB?ovver is sold or tratnferred) without Lender's written consent, Leader may require immediate payment in full of all sums secured by this Sscu ty Int. However, this option der not be exercind by Lender if such exercise is prohibited by Law. Carder also shall not exercise this option if: (a) Borrower c oum to be to Leader information required by Lender to evahute the intended transferee as if a new loan was behig mode to the tacmferee; and (b) Lender ne.soncblykdetermiaas that Leader's security will not be h ? by the loan assumption and thatthe ris of a breach of any c?venurt or agreenoant im is Security Ind is acceptable to Lender. To the extent permitted by Law, Lender may charge a reasonable fee as a condition to Candor's dxhn?nt to theAken aswlmQu LeMer aLo may require the tramfaree to sign an assumption agreement that is soceptrcble to Lender and that obligates the troahroe to and Borrowall er the w? to ba red wider tiro Note and this Security Instrwaent unless Leader releases Borrower in writing. If Lender exercises the option to require immediate payment in fall, Lender shall give Borrower notice of accolontian. 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 pmt pay all 8480254(0104) Pays 3 of 4 Form 4008 4101 Inem NO: 120115289 BKI877PG4479 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 18 of 21 mm secured by this Security Inshument. If Borrower fxtls to pay these sums prior to the expiration of this period, Leader may invoke any remedies permitted by this Security Insammemt without further notice or demand on Borrower. BY SIGNING BBIAW, Borrower accepts and again to the terms and covenants cor aimed in this Fixed/Adjustable Rate Rider. ,__._(Sea) -Harrower O Seal) Mary Loreman -Borrower -(SW) -Borrower _ (Sem) -Borrower (Sul) Sarah B. Douglas -Borrower (Sw) Barr Loreman -Borrower CT (Sed) -Borrower Loan No: 120115289 8480254 (0104) Pays 4 of 4 BK 1877PG4400 -(Sew) -Borrower form 4008 4/01 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 19 of 21 a ADDENDUM TO RXED/ADJUSTABLE RATE RUDER {Subprkm) Loan #: 120115289 THIS ADDENDUM to the Fixed/Adjustable Rate Rider is made this 27th day of July, 2004 , 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") and Fixed/Adjustable Rate Rider of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to TndyMsc Bank, F.S.B., a fede=Uy d azt eezed swings bank (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 1330 Williams Cove Road, MB , PA 17055 [Property Addreaal ADDITIONAL COVENANTS. In Addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: 1. Section 4(D) of the Fixed/Adjustable Rate Rider is modified as follows: The interest rate I am required to pay at the first Change Date will not be greater than 8.375 % or less than 4.250 %. Thereafter, my interest rate will never be increased or decreased on any single change Date by more than one and WD/1000ths percentage point(s) ( 1.000 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 11.375 % or less than 4.250 %. IndyMao ¦ank SW*dma ARM Addendum to Fixed/AdluatabM Rate Rider MuNietate 8480345 (0112) Page 1 of 2 VMP MORTGAGE FORMS - (800)521-7281 1075 12101 t B 1877PG4481 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 20 of 21 2. All other provisions of the RxedJAdlustable Raft Rider are unchanged by this Addendum and remain in full force and effect. Dated: ,q 7-0K (Seal) ??yy..??,?.,,?? Sda aey Dodgicla/ -Borrower (Seal) y 771 -Borrower Mr reman a (Seal) -Borrower 8480345(0112J (Seal) Z Sar h B. Douglas / -Borrower Afto Seal) Barr G. Loreman -Borrower (Seal) -Borrower _ (Seal) -Borrower 1075 Paps 2 of 2 12101 I Certify this to be recorded In Cumberland County PA ??- Recorder of Deeds B K1 877PG4482 _ (seal) -Borrower 05/08/2012 9:47:34 AM CUMBERLAND COUNTY Inst.# 200434021 - Page 21 of 21 l r ? ??NCASTER T.A.329 A MAIN ST. neat " 5mufawq Ten?t?? ompany Name) (Nerve of Natural Person] 3465 E. Foothill Blvd. JS&vot Address] Pasadena, (A 91107 1010 6 state Zip Cods] PrOEERT P. ZIEGLER 'cCORpER OF DEEDS CUMBERLAND COUNTY PA W, HUG Ze :BPI 05 Above 7hle LAne For Rsoonc ft Datel MORTGAGE (Secondary Lien) MW 100055401201154954 DEFUgMONS Words used in multiple sections of this document are defined blow and other words are defined in Sections 3, 10, 12, 17, 19, and 20. Certain rules regarding the usage of wads need in this document are also provided in Section 15. (A) "Security Instrument" means this document, which is dated July 27, 2004 together with all Riders to this document. (B) "Borrower"is Stanley Douglas , Sarah B. Douglas, and Barry L. Loreman, Mary K. Loreman . Harrower is the mortgagor under this Sxurity instrument. (C) "HERS" is Mortgage Electronic Registration System, Inc, MFRS is a separate corporadon that is acting solely as a nominee tar Leader and Lender's successors and assigns. MB,RS is the beodidwy under this Security Instrnu"VIL MERS is organized and existing wider the lava of Ddawarc; and has an address and telephone number of P.O. Boa 2026, Flint, MI 48501-2026, td. (888) 679-MERS. (D) "Lender" is nxtftW Bank, F. S. B. , a feder&Uy c bartered savings hank Lender is a Federal savings Bank organized and existing under the laws of United States of America . Lender's address is 155 Pbrth Lalae Aveme, Pte, CA 91101 Compum BKI877PG4483 Meae.a Fer.3001 KAI Pqp 10(12 Oft MpwMW osus,nncMVKVws....,W. 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 1 of 15 (E) "Note" means the promissory note si ad by Harrower and dated July 27, 2004 The Note states that Borrower owes Lender ?ifty two tboureamd five bhmdt{,oed and IUD/100tim Dollars (U.S. $ 52,500. 00 ) plus interest Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than k guest 1, 2019 (b) "Property" means the property that is described below under the heading "Transfer of Rights in the Prey ,> (G) "Loan" means the debt evidenced by the Note; phis interest, any prepayment urges and late charges due under the Note, if allowed under Applicable Law, and all sums due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security but;unent that are executed by Harrower. The following Riders are to be executed by Borrower [dock box as appiic&W. ? Adjustable Rate Rider ? Condominium Rider ? Second Home Rider ? Balloon Rider ? Planned Unit Development Rider ? Biweekly Payment Rider Home Improvement Rider ? Revocable Trust Rider a Other(s) ISPaWFirst/Second Lien Gal loon Rider (1) "Applicable law" means all controlling applicable federal, state and local shWes, rgpdatiems, ordinances and administrative rules and orders (that have the d%d of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Associadea Dues, Fees, and Assessaseuri" means all dues, fees, assessments and other charges that are imposed on Borrower or the Properly by a condominium association, homeowners association or similar organization. (K) "Electronic Frlads Tirmster" meatus any transfer of funds, other than a transaction originated by check, draft, or similar paper insirvmemt, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a fi=x W 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. (L) "Escrow Items" means those items that are described in Section 3. (M) "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; (u) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnati on; or (iv) minWesentations og or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Leader against the nonpayment of, or default on, the Loan. (O) "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 (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. 12601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended bom time to time, or any additional of successor legislation or regulation that governs the same subject mattes. As used in this Security -rla COMPUAMM aooRCIC, INC Pap 2 ort2 Mdwab"1ML1r?i..w?.n...Lo»filrJlw paaA.v w OX 1877PG448.4 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 2 of 15 Instrument, "RESPA" refers to all requirements and ra tridiaos 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. (Q) "Sacceaw in Interest of Borrower" means any party that has takm tide 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 perkemance of Borrower's covenants and agreements undo this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to him (solely as nominee for Lender and Leader's successors and assigns) and to the successors and assigns of NERS, the following described property located in the Comity of Omberland (TJpa of R.owdt@ Jwkdbdml (Hams of Rsoordiup AMWk lmJ TaxPWVW ID No. 999 Legal deecriptim attacbed hereto and made a part hereof. which currently has the address of 1330 William Ghx" Road M04 MeehanicobtlYg , Pennsylvania 17055 ("Property Address"). [city] Rt' CO&I TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appcstmmces, and fixtures now or hereafter a part of the property. All replacements and additions shall also be coveral by this Security Instrument. All of the Rregoing is referred to in this Security Inert as the "Property " Borrower understands and agrees that MFRS holds only legal tide to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or wawm, I RS (as nominee fur Leader and Lender's successors and assigns) has the right: to exercise any or all of those interests, inducting, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lander including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property ad 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 covmants for national use and uon-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 Prindpnl, Ius nvd and Other Cbrges. Borrower shell pay when due the principal of: and interest on, the debt evidenced by the Note and if allowable under Applicable Law, any prepaym0mt charges and late cages due under the Note. Payments due under the Note and this Security Instrument shall be made in U.S. 8KI877PG4485 aka MAN Firm 3M1 0141 Pap 3 o(U wrw+emus C$0*bN 4*arS rbL" MWA d r..wu 021A Mw CwvN=wSaw@% Eno. 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 3 of 15 currency. However, if any check or other instrument received by Leader as payment under the Note or this Security Instrument is returned to Leader unpaid, Leader may require that any or all sabsegnent payments due under the Note and this Security Instrument be made in one or more of the fallowing Forms, as selected by Leader. (a) cash; (b) money order; (c) ratified 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. 2. Appiiadieu of Paymeab or Proceeds. Payments are deemed received by Leader when received at the location designated in the Note or at such other location as may be designated by Leader in accordance with the notice provisions in Section 14 or in such manna at location as required under Applicable Law. Except as otherwise described in this Section 2, and as permitted under Applicable Law, all payments accepted and applied by Leader shall be applied in the hollowing order of priority: (a) interest dw 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 ahdl be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce die priiac ipal balance of the Note. If Leader 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 ddmgumt payment and the late charge. if more than one Periodic Payment is outstandin& Leader may apply any payment received from Borrower to the repayment of the Periodic Payments ii; and to the extent that, each payment can be paid in full. To the a= that any excess exists alter the payment is applied to the fall payment of one or more Periodic Payments, such eaccess may be applied to any late charges due. To the extent permitted by Applicable Law, voluntary prepayments shall be applied f irst to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or h iscellaamuu Proceeds to principal due under the Note shall not eatead or postpone the due date, or change die amount, of the Periodic Payments. 3. Funds for Kmaw Item. Subject to Applicable Law, Borrower shall pay to Lender on the day Periodic Payments are due under the Note; until die Note is paid in full, a sum (the'me') 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 Leader under Section S; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Leader in lieu of the payment of Mortgage Insor mce premiums. These items are called "Escrow Item." 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 furnish to Leader all notices of amounts to be paid under this Section. Borrower shall pay Leader the Funds for Escrow Items unless Lacier waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Leader Funds far 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 doe for any Escrow items for which payment of Funds has been waived by Lender and, if Lerhder requires, shall famish to Leader receipts evidencing such payment within such time period as Leader may require. Borrower's obligation to make such payments and to provide re cArts 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 8. 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 righter under Section 8 and pay such amount and Borrower shall then be obligated under Section 8 to repay to Lender any such amount. Leader may revoke the waiver as to any or all Escrow Items at any time by a notice given in aocordancx with Section 14 and, upon such revocadoo, Borrower shall pay to Lender all Farris, and in such amounts, that are then requited under this Section 3. Leader may, at any time, rolled and hold Funds in an amount (a) suscient 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 hderal agency, instrumentality, or entity (inchu ing Lender, if Lander is an institution whose deposits are so insured) or in any Federal Home Loan Bank Leader shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Leader rem 7 m s, -we 1,0=75bwe Fly W S hbd6d Foes3001 61101 TRZ Casnum a? , AIC.- Pep 4 of 12 ew+rwae-n. c rsr... s.no c?i? .ewes WW B{ t 877PG4486 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 4 of 15 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 Leader to make such a charge. Unless an agreement is made in writing or Applicable law requbu interest to be paid on the Funds, Lender shall not be required to pay Harrower any interest or earnings on the Funds. Harrower and Leader can agree in writing, however, that interest shall be paid on the Funds. Leader 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, I Am shall account to Harrower for the excess finds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lade shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in aeowdanm with RESPA, 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 Lander the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in hull of all sums scarred by this Security Instrument, Lender shall promptly refimd to Borrower any Funds held by Lander. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional lender. If under Section 21 the Property is sold or the Property is otherwise acquired by Lender, Leader shall apply no later than immediately prior to the sale of the Property or its action by Lender, any Funds held by Lender at the time of application as a credit against the gums secured by this Security Instrument. 4. Charges; Leas. Harrower shall pa* m all of Borrower's obligations under any mortgages deed of trust, or other security agreement with a lien which has priority over this Security Instrument. Borrower shall pay when due, 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 hen other than alien disclosed to Lender in Borrower's application or in any title report Lender obtained which has priority over this Sect rky Instrument mien Borrower: (a) agrees in writing to the payment of the obligation sacred by the tin in a manner acceptable to Lend, but only so long as Borrower is perlilrmmg such agreement; (b) contests the lien in good faith by, or deflads against aforeemeunt of the lien in, legal proceedings which in Lender's opinion operate to prevent the mgircement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) segues ftm the holder of the lien an agreement satufadary to Lender subordinating the hem to this Security Instrument. Lender may require Harrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan if allowed under Applicable Law. S. Property Werra nce. 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 . 1uding, but not limited to, and qu4m ad floods, lbr which Leader requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and fir the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change dosing the term of the Lean. The insurance carder providing the insurance shall be chosen by Borrower subject to Ladder's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lander may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge fir flood zone determination, certification nand tracking services; or (b) a one-time charge fir flood zone determination and ratification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certificatkft 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, Leader may obtain insurance coverage, at Lender's option and Borrower's expose. Leader is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Leander, 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 grater or lesser coverage than was previously in effect. Borrower admowledges that the cost of the msumuce coverage so obtained might significantly exceed the cost of insurance dial Borrower could have obtained. Any amounts . --.--=w a.==wy nmmv w i o!-3nt0 t gout AL nYwMw 74 MI 01441 T=Couni r Bou=6INC. PW50F12 Y.Nwarnucu paws O? WWAa Ma ?WM WWWAGMVI? BK 1877PG4487 05108/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 5 of 15 disbursed by Lender under this Section 5, shall be added to the unpaid balance of the loan and interest shall accrue at the Note rate, from the time it was added to the unpaid balance until it is paid in fall. Subject to Applicable Law, all insurance policies required by Lender and renewals of such policies shall be subject to Leader's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional Ions payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Leader all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, ibr damage to, or destruction og 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 Leader. Lender may make proof of Iona if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying immmonce was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically fusible and Lender's security is not lessened. During such repair and restoration period, Leader shall have the right to hold such cssuramoe proceeds until Lender has had an opportunity to inspect step Property to ensure the work has been completed to Leader's satisfaction, provided that such inape zm shall be undertaken promptly. Leader may disburse proceeds for the repairs and restoration in a single payment or in a aeries 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, Lander shalt not be required to pay Borrower any interest or caminga on such proceeds. Fees for public musters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shalt 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 seared by this Security Instrument, whether or not then dne, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Harrower 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 21 or otherwise; Borrower hereby assigns to Lender (a) Borrower's rights to any issuance proceeds in an mount not to acceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refumd of unearned premiums paid by Borrower) under all insurance policies covering the Property, insoft 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 Instrumenk whether or not then due: 6. Preservatlon, P&W benanee sad Protectlan 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, Harrower 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 funiher deterioration or damage. U insurance or coudematiua proceeds are paid in cormec Lion with damage to, or the taking og the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disbase 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 adficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lander 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 ressonaMe cause. 7. Borrower's Loan Applieatlan. Borrower shall be in detkult ii; during the Loan application process, Borrower or any persons or entities acting at the direction of Harrower or with Borrower's knowledge or consent gave materially false, misleading, or macerate information or statements to header (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:, Yewybp aeamin) M,eIV@ Lem-3hWbFwdW MRirs1bl dtears9Mi ?iN1 --Tt# CO?a'LrANLr? INIC.- Pip 6 of 12 M.ila.?a?rif.Cw?w swaw?! 1?? ? BX l877PG4488 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 6 of 15 8. Protection of Leader's Interest In the Property and l Under this Security brsdruareat. If (a) Harrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lmder's interest in the Property and/or rigihts under this Security Instrument (such as a proceeding in bankn4 tcy, probate, for condemnation or forfeiture, for enforcement of alien which has or may attain priority over this Security Instrument or to enforce laws or regWaiioos? 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 drier Security Instrument, including protecting sndlor assessing the value of the Property, and saucing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums seared by a lien which has or may attain priority over this Security Instrammt; (b) appearing in court; and (c) paying reaasomble attorneys' fees to protect its interest in the Property andiar rights under this Security Instrument, including its seared positim in a bankruptcy proceedm& Sewing 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, chnimate building at other code violations or dangerous conditions, and have utilities tamed on or off. Although Leader may take action under this Section 8, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Linda inure no liability for not taking any or all actions authorized under this Sac ti al 8. Any amounts disbursed by Lender under this Se tim 8 shall become additional debt of Borrower seared by this Security Instrument if allowed under Applicable Law. 't'hese amounts dhall bear interest at the Note rate from the date of disbursement and shall be payaWe, with such interest, upon notice from Lender t0 Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge =less Lender agrees to the merger in writing. 4. Mortpge h rang. Mortgage Inaurmce reimburses under (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 bhsarance. If Leader required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. 10. Assignment of Miscellbaeous Procnds; liorfeiturre. The Miscellaneous Proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the property, or part thereo4 or for conveyance in lieu of aundemaation, are hereby assigned and ahari be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Security Instrument. If the Property is damaged, such b iscellaneons 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, Leader shalt have the right to hold such Miscdhmeouus Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's s&dsfaction, 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 Mscellaneous Proceeds, Lerida 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, die Miscdlaneuus Proceeds shall be applied to the sums seared by this Security Instrument, whether or not then due; with the excess, if any, laid to Borrower. Such Misedlaneous Proceeds shall be applied in the order provided for in Section 2. If the Property is abandoned by Borrower, or it alter 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 aft r the date the notice is given, Linder is authorized to collect and apply the Misc lianeous Proceeds either to restoration or repair of the Property or to the sumps seared by this Security Insku meat, whether or not then due. "Opposing Party" means the third party that owes Borrower MisceUmexra Proceeds or the party against whom Borrower has a right of action in regard to hfiscdlaneous Proccc& Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in Anfdture of the Property or other material impairment of Lender's interest in the Coiwe?LUti INC,- P1p 7 0( 12 memwa ft-m o vows b..yia't1? ltlpl'A ewf llwc wu ??. 07000.Ca?arlaowe Yin. BX 1877PG4489 05/0812012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 7 of 15 Property or rights under this Security Instrument. Borrower can afire such a debult and, if acceleration has occurred, reinstate as provided in Section 18, 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 Linda's interest in the Property or rights under this Security lnstr meaL The proceeds of any award or claim for damages that are attributable to the impairment of Leader's interest in the Property are hereby assigned and shall be paid to Leader. All Nscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 11. Borrower Not Released; Forbearance By Lendeyr 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 Harrower or to refuse to extend time fur 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 Snoceasors in Interest of Borrower. Any forbearance by Lender in ecacising 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 waive of or prelude the exacise of nay right or remedy. 12. Joint and Several Lability; Co-dpuw, Successors and Asdps 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 am me the Note (a " co-signs" ): (a) is ca-signing this Security Instrument only to mortgage; grant and convey the co-signer's interest in the Pmperty under the tams of this Security lustruument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Leader and any other Borrower can agree to extend, modify, forbear or make any aocommodaliaas with regard to the tams of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 17, any Successor in bacrest of Harrower who assume 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 sad liability under this Security Instrument unless Leader agrees to such release in writing. The covenants and agr F - I s of this Security Instrument shall bind (except as provided in Section 19) and benefit the successors and assigns of Lender. 13. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's dedrult, for the purpose of protecting Lender's interest in the Property and rigbta under this Security Instrument, as allowed under Applicable Law. The absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition an the charging of such foe. 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, ad that law is finally interpreted so that the Want 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 pamitted limit; and (b) any sums already collected from Harrower which exceeded permitted limbo will be redimded 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 refimd reduces principal, the reduction will be treated as a partial prepayment. 14. Notices. All notices given by Borrower or Lender in connection with this Security Instrumeat most be in writing. Any notice to Borrower in connection with &a Security Instrument shall be deemed to have been given to Borrower when mailed by fast class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Harrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Harrower has designated a substitute notice address by notice to Leader. Barrows shall promptly notify Lender of Borrower's cliamge of address. If Lender specifies a procedure for reporting Borrower's change of address, then Harrower shall only report a change of address through that specified procedwc? There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class trail 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 Leader until actually received T= COWIJMCX sovtmcs, DW-- Pop a of 12 tr.as.r arter. cummm .s.,...z.,r 14MWA EM bm *?'r ® 02047Laca?parw500m4 o. BK 1877PG4490 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 8 of 15 by Lender. If any notice required by this Security Instrument a also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instcumeut. 15. Governing Lane; SoverWitty; Rules of Construction. This Security Instrument ahall 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 dime shall not be construed as a prohibition against agreement by contract. In the evmt 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 mom and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take my action. 16. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security instrument 17. Transfer of the Property or a BeneAcW Worse in Borrower. As used in this Section 17, "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 Ibr deed, contract for decd, installment sales contract or escrow agreement, the intent of which is the transfer of title: by Borrower at a fature 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 trmsferred) without Lender's prior written consent, Lender may require immediate payment in hill of all sums seared 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 14 within which Borrower must pay all sums segued by this Security Instrument. If Borrower Nils to pay these sums prior to the apration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower's Right to Reinstate Aiken Acederatiaa If Borrower manta certain conditions, Borrower shall have the right to have eaftcement of this Security Instrument discontinued at any time prior to the earliest of (a) five days before sale of the Property pursuant to my 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 reinstates or (c) entry of a judgment eafnrang 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) pees any default of any other covenants or agreements; (c) pays all agmnm incurred in enforcing ft Security Instrument, as allowed under Applicable Law; and (d) takes such action as Leader may reasonably require to assure that Lender's interest m the Property and rights under this Security hnstrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continuo unchanged Lender may require that Borrower pay such reunstatement sums and mrpanses in we or more of the following forms, as selected by Leader: (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 Finds Transfer. Upon reinstatement by Borrower, this Seau4 Instrument and obligations secured hereby shall remain fatly effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 17. 19. Sale of Note; Change of Loan Servicer; Notice of Grkvmce. 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 Savicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Insumnent, 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, if required under Applicable Law, 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 thereaft the Loan is serviced by a Low Servicer other than the purchaser of the Note, the mortgage tom servicing obligations to Borrower will remain with the Lam Servicer or be transferred I M"Mft 7 M WOW LOM-SWO Fruity M X5 MdYd thong 30111 01101 THeCoMCrlwx >1cc, P61P 9err12 wow amax mwcmraa¦w.M.t BK 1877PG449 I 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 9 of 15 to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purdhass. Neither Borrower nor Lender may conmiaw , join, or be joined to any judicial action (as other 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 ot; or any duty owed by reason of this Security Instrument, until such Borrows or Leader has notified the other party (with such notice given in compliance with the requirements of Section 14) of such alleged breach and a$brded 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 fiat purposes of this section. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 21 and the notice of acceleration given to Borrower pursuant to Section 17 shall be deemed to sad* the notice and opportunity to take corrective action provisions of this Section 14. 20. Hazardous Substances. As used in this Section 20: (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 contatrung asbestos or formaldehyde; and radioactive materials; (b) "Environmental Law" means Weral laws and laws of the jurisdiction where the Property is located that relate to health, sa&ty or environmental protection; (c) "EavironmenW Clean*' includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition duct 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 edition 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 er regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Harrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affats 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 army obligation an Lends for an Environmental Cleanup. NON-UNIFORM COVENANTS. Harrower and Lender further covenant and agree as fbilows: 21. Acceleration; ReneaHeL Leader shad give notice to Borrower prior to acceleration following Borrower's breach of say coven M or agreenu nt in this Security Instrument (but not prior to acceleration alder Seddon 17 unless Applicable Law provides otherwise). armour dwil notify Borrower of, among other thin=s: (a) the dstadt; (b) the action required to cure the def n tt; (c) when dw deiaak must be cured; and (d) that bilare to cure the defank as spedAW my result in aeceler coat of the mesa secured by this Security In:trv I t, foreclosure by JvAcial proceeding and sale of the Property. Leader shall farther inform Borrower of the right to rdastate after se eleratim and the right to assert In the foreclosure proceeding the non-existence of a default or stay other & Man of Borrower to acedu*aden and foredearre. If the detesrdt is not cored a specified, Leader at its option my regtdre iannedlate paymW In felt of all amas secured by this Security Instrument without further demand and may foreclose this Securky Insatrum mat by Judicial procmftg Lender shall be entitled to collect all egme ntes incurred In pgra t due remedies provided In ffida Section 21, inclmdtag, but not limited to, attorneys' fen cud casts of title evidence to the extent permitted by Applicable Law. L-W-Single Pip to of tZ xm=w ft ns c-Ps-ssw*%ba" WMWA *= %m *M 6aen.7Ua.01....e....,em. 8K 1877PG4492 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 10 of 15 22. Release. Upon payment of all sums secured by this Security Instrument, this Saauiity Instrument and the estate conveyed shall terminate and become void. After such occurrence, Leader shall discharge, and satisfy this Security Instrument. Borrower shall pay any recordation costs. Lender may duarge 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 pemrilted under Applicable Law. 23. 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 firtuure laws providing for stay of eaasrtion, extension of time, exemption from attachment, levy and sale, and homestead exemption. 24. Reinstatement Period. Borrower's time to redastate provided in Section 18 shall extend to one how prior to the commencemen t of bidding at a sheriffs sale or other sale pursuant to this Security Instrument. 25. Purchase Money MortpgL 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 26. Interest Rate Alter 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. REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this Security Instrument to give notice to Lender, at Lender's address set forth on page me of this Mortgage; of any default under the superior encumbrance and of any sale or other foreclosure action. lSlynntu?ea on Fobowing Pop] WWWAGOVISMOOMMAM BKI877PG4493 MOW malmmWiftm3»I em Pap 11 at 12 u WNW1*-n.*W01MWtwrw,aw wgRw!Ribura 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 11 of 15 BY SIGNING BELOW, Borrower accepts and agrees to the terms and coves mts contained in din SWmty Instrument and in any Rider executed by Borrower and recorded with it. (seal) ey -Boaower 11(m 6L? 8, cgoao/04- (Seal) Sarah B. Douglas "Borrower (Seal) Mary K/./Loreman 'Bamww r (Sent) Barry --t,oreman Certificate of Residence: I/We do hereby catify that the precise address of the within named ee is 0 0 , ji?u _ Agmt of /? (Space Below for A0v;owkdvnw9I State of k11nse lddr)ia- § County of Ctl d7 l?m la r'4- § On this, the 71a 7 10q day of , before me the undersigned officer, personalty appeared StaalW, DmgIm anti 5a-A4 -h B OZ.&& -80.,0,& G ZoRe,,,,Z gal " K l.0aeryu43' brown to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acimowledged that he/sheftey executed the same for the purposes therein contained In witness where:a$ I hereunto set my hand and =" ?&" No" Sear (sue) '? I4 ?a N-j M81 tW PnrM Tide ofOtl'ioer j - MN%W Qty hUW MMbd Fina 3OO1 O1102 T= CoLiAN4 hvc, P.p12d12ay?.p.pr,wa..>ca:e BK 1877PG4494 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 12 of 15 EXHIBIT A File No. LST179-1948-A ALL that certain tract of land and the improvements thereon situate in Monroe Township, Cumberland County, Pennsylvania, bounded and described as follows: BEGINNING at a point on the western right-of-way line of the Williams Grove Road at the comer of Green Lane, as shown on the hereinafter mentioned Plan of Lots; thence along said right-of-way line, South 00 degrees 11 minutes 11 seconds West, a distance of 225.24 feet to a point; thence along the dividing line between Lots Nos. 1 and 2 on said Plan, South 87 degrees 32 minutes 12 seconds West, a distance of 980.51 feet to a point; thence North 00 degrees 28 minutes 00 seconds East, a distance of 225.29 feet to a point on the southern line of Green Lane; thence along the latter, North 87 degrees 32 minutes 12 seconds East, a distance of 979.40 feet to a point, the Place of BEGINNING. BEING Lot No. 1 on the Plan of Lots of Frank E. Stoner, as recorded in the Cumberland County Recorder of Deeds Office in Plan Book 57, Page 53 (erroneously referred to as Plan Book "Q", Volume 36, Page 106 in prior deeds). BEING the same premises which Barry L. Loreman and Mary K. Loreman, his wife, by deed dated August 18, 2003, and recorded in the Office of the Recorder of Deeds for Cumberland County, Pennsylvania, in Deed Book 258, Page 3736, granted and conveyed unto Barry L. Loreman and Mary K. Loreman, his wife and Stanley E. Douglas and Sarah B. Douglas, his wife. BEING Parcel Number: 22-11-0278-078 BK 1877PG4495 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 13 of 15 MM: 100055401201154954 BALLOON RIDER Loan #: 120115495 (To be attached to the Security Instrument . ) THIS RIDER is made this 27th day of July, 2004 and is incorporated into and shall be deemed to amend and suppiement 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 Borrower's Note to IrdAW Bank, F.S.B., a federally chartered savings bank (the "Lender") of the same date and covering the property described In the Security Instrument and located at: 1330 Williams Carom eP Road Nedanic d=g, EA 17055 Aadmal ADDITIONAL COVENANT: In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. Balloon Rider: Borrower is aware that this loan is due and payable in full on the tat day of August, 2019 , with a Balloon Payment of $ 45, 408.02 , based upon scheduled payments. Borrower acknowledges and agrees that Lender has not made any representations to Borrower, either oral or written, that Lender will subordinate its lien created by this Security Instrument to any other lien which the Property may hereafter become subject to, including, without limitation, any lien arising from Borrower's subsequent construction of improvements on the Property. Borrower acknowledges and agrees that Lender is under no obligation to subordinate its lien created by this Security Instrument to any lien created hereafter and Lender does not intend to subordinate its lien to any other lien which the Property may hereafter become subject to. -as6oo56 ?osoal TM Pop I of 2 ELECTRONIC LASER FORMS, INC. - 18001327.05" FORM INDYMAC 1153 9/26/95 BK i 877PG4496 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 14 of 15 IN WITNESS WHEREOF, Borrower has executed this Balloon Rider and fully understands the conditions thereof. Date: ! %2 7`O91 JtZit?, lge.-- (Seal) -Borrower <. _ (Seal) Bar Loreman -Borrower 9)aA-0-k rU- (Seal) Sarah B. Dou as -Borrower Seal} Mary K Loreman -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower Loan No: 120115495 4M0006a came lit BX 1877P4497 Pqp 2 o12 _(Seal) -Borrower FORM NWYMAC 163 8/26/86 I Certify this toleMorr " In Cumberland County PA 05/08/2012 9:48:19 AM CUMBERLAND COUNTY Inst.# 200434022 - Page 15 of 15 EXHIBIT "D" NE"PCO 1407 York Road, Suite 111 Ludierville, MD 21(K)3 This Instrument Prepared By: Alter R riling Return To: AMERI AN FINANCIAL RESOURCES, INC. 273 E T MAIN STREET DENVIL E, NEW JERSEY 07834 Loan N er: 0000003191 807 Nly 24 Am 3 11 Uniform Parcel Identifier Number: I I - ( I - 0,X1I o? Q Property Address: 1330 W I LL IAMS GROVE ROAD U MECHANICSBURG, PENNSYLVANIA 17055 [Space Above This Line For Recording Data] PPA Ion-111 MORTGAGE MIN: 100336300000003191 DEFINITIONS 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 thiscument, which is dated MAY 16, 2 0 0 7 together with all Riders to this document. C.-Jil B, (B) "Borrower"is STANLEYADOUGLAS AND SARAH"DOUGLAS, HUSBAND AND WIFE, AS TENANTS BY ENTIRETY AND BARRY L. LOREMAN AND MARY K, LOREMAN, HUSBAND AND WIFE, AS TENANTS BY ENTIRETY Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the merfgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. PENNSYLVANIA--Single Fam??yy DocA#agk dPbnm OW.640-IJ62 Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS www.dbenMgk.com Form 3039 01/01 Page 1 of 17 1919V%174b 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 1 of 24 (D) "Lender"is AMERICAN FINANCIAL RESOURCES, INC. Lender is a NEW JERSEY CORPORATION organized and existing under the laws of NEW JERSEY Lender's address is 273 EAST MAIN STREET, DENVILLE, NEW JERSEY 07834 (E) "Note" means the promissory note signed by Borrower and dated MAY 16 , 2007 The Note states that Borrower owes Lender TWO HUNDRED SEVENTY THOUSAND AND 00/100 Dollars (U.S. $ 270, 000. 00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JUNE 1, 2037 (F) "Property" means the property that is described below under the beading "Transfer of Rights in the property. " (G) "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. (1) "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 ? Planned Unit Development Rider ? Balloon Rider ? Biweekly Payment Rider ? 1-4 Family Rider ? Second Home Rider ? Condominium Rider ® Other(s) [specify] ADDENDUM TO ADJUSTABLE RIDER (I) "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. U) "Coomamdty Asaodation Does. Fees, and Anesswnts" 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. (K) "Electronic Funb Transfer" means any transfer of funds, other than a tranuction originated by check, draft, or similar paper instrument, which is 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. (L) "Escrow Item" means those items that are described in Section 3. (M) "Misceftemis Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid wider the coverages described in Section 5) for: (i) damage to, or m/Fred-die•Si'NTnyt. Fannie MaNFred am?IyRM INSTRUMENT - MERS DoeA11mokd9bovow 800-640- 136Z Fannie ae F UNIFd Form 3039 01101 Page 2 of 17 www.docnmgic.com O K I 993PG 1747 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 2 of 24 destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (HO conveyance in lieu of condemnation; or ([v) misrepresentation of, or omissions as to, the value and/or condition of the Property. (N) "Mort" Insurance" means insurance protecting Leader against the noipayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (d) principal and Interest under the Note, plus (U) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 of 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 resWcdons that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgae loan" under RESPA. (Q) "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 MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS the following described property located in the COUNTY of CUMBERLAND [Type of Recording jurisdiction] (Name of Recording jurisdlctionj SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A". which currently has the address of 1330 WILLIAMS GROVE ROAD [Street) MECHANICSBURG , Pennsylvania 17055 ("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 Inatrumment as the "Property. " Borrower understands and agrees that MERS holds only legal tide to the Interests granted by Borrower In this Security Instrument, but, If necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose PENNSYLVANIA--S' Family DocMa0kdPbM= aoaaWanasa Fannie Mae/Freddie Mac X% IM INSTRUMENT - MERS www doco? cm. Form 3039 01/01 Page 3 of 17 8K 1993PG 1748 05/08/2012 9:48:58 AM CUMBERLAND COUNTY inst.# 200717686 - Page 3 of 24 and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. 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 Leader covenant and agree as follows: 1. Payment of PrhK*W, Interest, Eaerdw Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on. the debt evidenced by the Nom and any prepayment cbarges 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 Leader as payment under the Note or this Security Instrnmau 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) certitkd 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 incident 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 pmJudice 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 bold 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 finds or return them to Borrower. If not applied earlier, such fiends 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 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 PENNSYLVANIA»Sm Famey DocAllsoc ? aoo?e4e-13ez Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS www.doemmok.com Form 3039 01/01 Page 4 of 17 8K 1993PG 1749 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 4 of 24 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 Leader on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") 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 Leader under Section 5; and (d) Mortgage Insurance premiums, if any, or any same 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 Anessmeats, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Leader 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 hems for which payment of Funds has been waived by Leader and, if Lender rein, shall furolah 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 combined in this Security Instrument, as the phrase "covenant and agreement" is used In Section 9. If Borrower is oblipted to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Itmu, Leader 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 many 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 hater 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 Leader 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 fads 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 RESPA, but in no more than 12 monthly payments. If there is a deficiency of PENNSYLVANIA.-Single Family Fannie MadFreddia i1?ac UNIFORM INSTRUMENT - MERS Docubak 4PIonme ow foe s? Form 3039 01101 Page 5 or 17 www'd oc n igk.arorn W 1993PG 1750 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 5 of 24 Funds held in escrow, as defined under RESPA, Leader 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. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Changes; Lien:. Borrower shall pay all saxes, assessments, charges, finm and impositions attributable to the Property which can attain priority over this Security Instrument, lasehokl payments or ground rents on the Property, if any, and Community Association Does, 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 Instivmennt 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 Leader'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 Leader 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 tire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Leader 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 dining 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 Leader 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 PENNSYLVANIA-- Farmly DocIONSk9 40MRS aaoa4ausa Farnwa Maa/Fradi de Mac UNIARM INSTRUMENT - MERS www doemp t own Form 3039 01/01 Page 6 of 17 BKI 993PG 1751 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 6 of 24 additional loss payee. Lender shall have the right to hod 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 restoration or repair of the Property, if the restoration or repair Is economically feasible and Leuila's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has bad 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. Leader 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 nude 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 sock 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 world 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 setae 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) order all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Leader may use the im mince 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 condemmation 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 PENNSYLVANIA--S' Family ?iluiWa4vionm adol4a-1302 Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3039 01/01 Page 7 of 17 www'deenwSk.com 993PG 1752 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 7 of 24 to repair or restore the Property. Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Leader 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 Appileadon. 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 Leader with material information) in connection with the Loan. Material representation include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Leader's Interest in the Property and F*bb Under this Security Instrument. If (a) Borrower fails to perform The covenants and agreements conWned 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 Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lion 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 Iastrummot: (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 linked 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, Leader does not have to do so and Is not under nay duty or obligation to do so. It is agreed that Lender Incurs no liability for not taking any or all actions anthorized 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 leasebold estate and Interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lefler, 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 Laurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage (surer 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 nbstantWly 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 irsarer selected by Leader. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Leader 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, PENNSYLVANIA-.Single Fa y soae?sr3sa Fannin Mee/Freddie NTsc UNIF RM INSTRUMENT - MERS WWW dbryr> ok tram Form 3039 01/01 Page 8 of 17 BK { 993PG 1753 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 8 of 24 notwithstanding the fact that the Loan is ultimately paid in fall. and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can so longer require loan reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender :gain becomes available, is obtained. and Leader requires separately dedgeated payments toward the premiums for Mortgage Insurance. If Leader required Mortgage Insurance as a condition of making We Loan and Borrower was required to make separately desipaled payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Gtaurarce in effect, or to provide a non-refiaadable 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 k 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 lasses it may incur if Borrower does not repay the Loan as agreed. Borrower hs 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 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 reluusurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts dot derive from (or might be characterized as) a portion of Borrower's payments for Mortgage losurance, in exchange for sharing or modifying the mortgage insurer's d*, or reducing losses. H such agreemeat provides that an ablate of Leader 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 of eat the amounts that Borrower has agreed to pay for Mortgage Luorance, or any ether terms of the Law. Such agreements uric not iocnmse the amamt Burrower wlf, owe for Morlpge Insurance, and they will ant en" Borrower to arty refWa t. (b) Any such agreements will not affect the rights Berrowee has - if any - wkb respect to the Mortgage Insurance under the Heeeowners Protection Act of lilt or any odrer law. These rights nay hrchsde the right to receive certain disclosures, to request and oblate cancellation of the Merge kourada, to have the Mortgage lunr'an0e terminated autonaiicaffj. awlior to receive a refund of any MaTpp lasurance premi ma that were unearned at the tine of such conceraden or t rudmadon. 11. Amt of Miscellaneous Proceeds; Fortdture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Leader. 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, Leader 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 wall b completed. Unless an agreement hs made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to lay 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 PENNSYLVANIA--S' FsmNv DoeaarWCtftvrrra no-"& 1362 Fannie Maalhoddis Niac UNIFORM INSTRUMENT - MERS WNrW. k - mg(c emu Form 3039 01 /01 Page 9 of 17 OK-1 993PG 1754 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 9 of 24 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 is 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 same 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 ernes 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 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 began 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 Leader. All Miscellaneous Proceeds that are not applied to restoration or repair of the Properly shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Leader 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, Leader'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 Ardgrts Booed. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrowerwbo co-signs this Security PENNSYLVANIA--S F Documokdvisman 60"49w 7362 Fait. Mae/Froddie Mac UNARM INSTRUMENT - MERS www.deanupfc.com Form 3039 01/01 Page 10 of 17 OKI993PG1755 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 10 of 24 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 Leader 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 hen 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 Leader'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 refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Leader 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 rnalled 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. Any 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 Leader until actually received by Leader. 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; Severability: Wes of Consturoct4un. 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 PENNSYLVANIA--S Family Docaagia! lbrM= W04496 1J#2 Fermis Mae/Frodde Mae UNIFORM INSTRUMENT - MERS "no .doenraic com Form 3039 01/01 Page 11 of 17 1993-PG 1756 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 11 of 24 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 gentler 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 my 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 Boodkiaf Interest In Borrower. As used in this Section 18. "Interest in the Property" means any legal or beneficial Interco In the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed. Dent sales contract or escrow agreement, the intent of which is the transfer of tide 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 Leader if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acmeration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 widen 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 Rehmtate After Acceleration. N Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at my time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of We contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's tight to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Leander 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 valuadw 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 to pay the sums secured by this Security Lmhvment, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums sad expenses in one or more of the following forms, as selected by Lender: (a) crib; (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 &Ily 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 Servfoer; Notice of Grievance. Tbe 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 Seavicer") 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 (be change which will state the name and address of the new Loan Servicer, the address to which payments should be madeand any other PENNSYLVANIA--ShVb Famil ??? ? aoopfc.ewn Fannie Mea/Freddie Mac UNIFORM INSTRUMENT - MERS Yww+v.doomafec?om Form 3039 01/01 Page 12 or 17 6K] 99*3PG 1757 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 12 of 24 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 merge 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 purcbma. Neither Borrower nor Lender may commence, join, or be joined to any ju&dal action (as either an individual litigant or the member of a class) that arises, from the other party's actions pursrant 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 sacb 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 mast elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragrapb. 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 sball 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 bafth. 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 cease, 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 senteaces 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 say 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 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. Leader shall give notice to Borrwer prier to acceleration following Borrower's breach of any covenant or agreement In this Security lase m ut (bat not prior to acceleration under PENNSYLVANIA--SkVW FamNy DoCjuWWC du gMW IW449.1362 Farw?ia MN/Freddie Mac UNIFORM INSTRUMENT - MERS WyN, ,VoM Form 3039 01/01 Page 13 of 17 UK 1993PG 1758 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 13 of 24 Section IS unless Applicable Law provides otherwdse). Lender shall =dfy Borrower of, among other things: (a) the default: (b) the action required to core the ddarlt; (c) when the ddadt scat be curodi and (d) that failure to cure the default as sp1 Pill1 may result in aembradn of the sacs secured by this Security Instrument, foreclosre by ju&W prooeedhag and sale dthe Frelierty. Lender shad further htdorm Borrower of the right to reiwtate after acceleration and the right to assert is the Toro A - s psroooelfrlg the non-existence of a defsndt or any odwr defense of Borrower to acederadw and foredosre. If the default is not cured as specified, Leader at Its option may regdre immolate psymest In fur of all sums secured by dais Security Instrument without farther desaW and may tereclese this Security lsstweeni by judicW pswoeedisg. Lower sha! be endded to collect all expeases Incurred in pursuing the remodiee presided in this Section 22, Including, but not limited to, attorneys' fm and cab of title eyMmm to the extent permitted by Applicable Law. 23. Release. Upon payment of all sums secured by this Security Instrument. this Security Inshummt and the estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge and satisfy this Security Instrument. Borrower shalt 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 parry 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 benef(t 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 sheriff's sob or other sale pursuant to this Security Instrument. 26. Purchase Money Mortgage. If any of the debt secured by this Security instrument is tent to Borrower to acquire title to the Property, this Security Instrument shall be a purchase money mortgage. 27. Interest Rate After Judpmt. 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. SYLIA-- iilIyy D000M9kdPbVMW W04WO-tsar FaPENNnnla Maa/FrVAN=!e ac UN FammIFORM INSTRUMENT - MERS www.docmagiic.eom Form 3039 01101 Page 14 of 17 OU 993PG 1759 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 14 of 24 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. &4 f-- (Seal) STANLE DO LAS -Borrower '?L" (Seal) BARRY LOREMAN -Borrower - (Seal) -Borrower Witness: Witness: - (Seal) -Borrower PENNSYLVANIA--SkVW F DOCWMV#e dPbVMW s00-049.1962 FenMe MM/Freddie Mac UNIF RM INSTRUMENT - MERS w,ww.dOcnmogie,com Form 3039 01/01 Pegs 15 of 17 BKIT"i 9 9 3 PG 17 6 0 9_w? ./? 1 (Seal) SARAH DOUGLAS -Borrower MAR LOREMAN -Borrower 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 15 of 24 [Space Below This Lim For Acknowled"nt) COMMONWEALTH OF PENNSYLVANIA ) COUNTY OF CUMBERLAND SS: ) On this the 1 day of M AY 2001 before me, -r mw f A yAVX the undersigned officer, personalty appeared STANLEY DOUGLAS AND SARAH DOUGLAS AND BARRY L. LOREMAN AND MARY K. LOREMAN known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged that he/she/they executed the same for the purposes therein contained. In witness whereof. I hereunto set my hand and official seals. NMwW Baal 11osw Raysa. usury ruwic Signature Myc eft .c"lua. mt9 Title of Officer (Notary's Stamp and Embosser) My commission expires: f Certi f' this to be recorded in Cumberland County PA PENNSYLVANIA--ngle emN Fannie M=reddieSiIllfec F=6RM INSTRUMENT - MERS ?.?. Form 3039 01/01 Page 1 0 17 09culapicdubm s noa"F13s2 Recorder of Deers'l°pr"Dr``'`°"' OK-1.913K 176 1 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 16 of 24 Ca'tiflcste of Residence of Mortga The undersigned hereby certifies that: (1) he/she is the Mortgagee or the duly authorized attorney or agent of the Mortgagee named in the within instrument; and (0) Mortgagee's precise residence is: P.0 BOX 2026, FLINT MI 48501 Witness my hand this day of t/?` ° aO^ 4;?? Signature of Mortgagee or M s Authorized Attorney or Agent ?.?1 c.?- C'taF\ Type or Print Name of or Malgigee's Duly Authorized Attorney or Agent PENNSYLVANIA--Sim Fam?y DOCMWf dUb"M 800-64& 13M Fannie Mae/Freddle Mac UN&M INSTRUMENT - MERS www.dacnwgk.com Form 3039 01101 Pape 17 of 17 OK-4.993PG 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 17 of 24 MIN: 100336300000003191 FIXED/ADJUSTABLE RATE RIDER (LIBOR ARM BALLOON LOAN - Rate Caps) Loan #: 0000003191 THIS FIXED/ADJUSTABLE RATE RIDER is made this 16th day of MAY, 2007 and is incorporated Into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Secwrity Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to AMERICAN FINANCIAL RESOURCES, INC., A NEW JERSEY CORPORATION (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 1330 WILLIAMS GROVE ROAD, MECHANICSBURG, PENNSYLVANIA 17055 [Property Address) THIS NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE AND HAS PROVISIONS ALLOWING CHANGES IN THE MTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S IITEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 7. 500 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The Initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of JUNE, 2009 , and the adjustable interest rate I will pay may change on that day every 6th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for six-month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." MULTISTATE FIXED/ADJUSTABLE RATE RIDER (LIBOR Index) - Single Family Page 1 of 4 Form 4301 8480796 (0511) VMP Mortgage Solutions, Inc. (800)521-7281 5/05 UK] 993PG 1763 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 18 of 24 If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holier will calculate my new interest rate by adding SIX AND 000/1000 percentage points ( 6.000 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date on the "Amortization Period Date" at my new interest rate in substantially equal payments. The Amortization Period Date is JUNE 1, 2047 , which is greater than the Maturity Date. The result of this calculation will be the new amount of my monthly payment. I acknowledge that this amount will not be sufficient to repay my loan in full on the Maturity Date and that I may owe a significant amount to the Lender on the Maturity Date. (D) Limits on interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 10. 500 % or less than 6.0 0 0 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than ONE percentage points (1.0 0 0 % ) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 13.500 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notke of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any questions I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument shall read as follows: 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. Form 4301 8480796 (0511) Page 2 of 4 5/05 09,111 1764 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 19 of 24 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 rat 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. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section B1 above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a BeneRelal 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 soli 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. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the ban assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the ban assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. Form 4301 8480796 (0511) Page 3 of 4 5/05 1993PG 1 765 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 20 of 24 if Lender exercises the option to require immediate payment in full, 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. BY SIGNING BELOW, Borrower accepts i in this Fixed/Adjustable Rate Rider. (Seal) S ANL DO LAS -Borrower (Seal) BARR . LOREMAN -Borrower - (Seal) -Borrower (Seal) Borrower - (Seal) -Borrower (Seal) -Borrower Form 4301 8480796 (0511) Page 4 of 4 5/05 1:993PG 1766 ind agrees to the terms and covenants contained (Seal) SARAH DOUGLAS -Borrower Seal) MARY LOREMAN -Borrower 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 21 of 24 ADDENDUM TO FIXED/ADJUSTABLE RATE RIDER Loan #: 0000003191 THIS ADDENDUM to the Fixed/Adjustable Rate Rider is made this 16th day of MAY 2007 , 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") and Fixed/Aoiustable Rate Rider of the some date given by the undersigned (the "Borrower") to secure Borrower's Note to AMERICAN FINANCIAL RESOURCES, INC. , A NEW JERSEY CORPORATION (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 1330 WILLIAMS GROVE ROAD, MECHANICSBURG, PENNSYLVANIA 17055 [Property Address] ADDITIONAL COVENANTS. In Addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: 1. Section 4(D) of the Fixed/Adjustable Rate Rider is modified as follows: The interest rate I am required to pay at the first Change Date will not be greater than 10. 5 0 0 % or less than 6.000 %. Thereafter, my interest rate will never be increased or decreased on any single change Date by more than ONE AND 000/1000 percentage point(s) ( 1.000 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 13. 5 0 0 % or less than 6.000 %. FUME ARM Addendum to Fixed/Adjustable Rate Rider Multistate Page 1 of 2 1075 8480345 (0610) VMP Mortgage Solutions, Inc. 10/06 n Ls. A# 9,43 .FG 17 6 7 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 22 of 24 2. AN other provisions of the Fbced/Adju:table Rate Rider are unchanged by this Addendum and remain In full force and effect. Dated: S I b - 4? ` (Seal) D GLAS -Borrower STANLEY ???vL (Seal) BARRY Of. LOREMAN -Borrower - (Seal) -Borrower (Seal) -Borrower 8480345 (0610) Page 2 of 2 t"3 1768 (Sean &4L _ SARAH DOUGLAS -Borrower n MAR LOREMAN -Borrower _ (Seal) -Borrower - (Seal) -Borrower 1075 10/06 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 23 of 24 Issued by NETCO, Inc. 1407 York Road, Suite 311,Lutherville, MD 21093 Underwritten by Stewart Title Guaranty Company File Number: NPA-1004722 Aggendtz A All that certain tract of land and the improvements thereon situate in Monroe Township, Cumberland County, Pennsylvania, bounded and described as follows: Beginning at a point on the Western right of way line of the Williams Grove Road at the corner of Green Lane, as shown on the hereinafter mentioned plan of lots; thence along said right of way line, South 00 degrees 11 minutes 11 seconds West, a distance of 225.24 feet to a point; thence along the dividing line between lots numbers 1 and 2 on said plan, South 87 degrees 32 minutes 12 seconds West, a distance of 980.51 feet to a point; thence North 00 degrees 28 minutes 00 seconds East, a distance of 225.29 feet to a point on the Southern line of Green Lane; thence along the latter, North 87 degrees 32 minutes 12 seconds East, a distance of 979.40 feet to a point, the place of beginning. Being lot number I on the plan of lots of Frank E. Stoner, as recorded in the Cumberland County Recorder of deeds office in plan book 57, page 53 (erroneously referred to as plan book "Q", volume 36, page 106 in prior deeds). Being the same property or a portion of the same property conveyed to Barry L. Loreman and Mary K. Loreman, his wife, as tenants by the entirety and Stanley E. Douglas and Sarah B. Douglas, his wife, as tenants by the entirety by Deed dated August 18, 2003 from Secretary of Houseing and Urban Development filed on August 18, 2003 in Book 258 at Page 3736 in the Cumberland County records. Commonly known as: 1330 Williams Grove Road, Mechanicsburg, PA 17055 Parcel Number: 22-11-0278-078 ALTA 2006 Commitment (Refi) 77 1K 1 10710 " 17.6 05/08/2012 9:48:58 AM CUMBERLAND COUNTY Inst.# 200717686 - Page 24 of 24 HAROLD s. IRwIN, 111, EsQU1RE bUG 24 PM 12~ 29 ATTORNEY ID NO. 29920 64 SOUTN PITT STREET ii ' CARLISLE PA 17013 (717) 243.6090 ATTORNEY FOR PLAINTIFF STANLEY E. DOUGLAS, : IN THE COURT OF COMMON PLEAS OF Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA vs. :CIVIL ACTION -LAW BARRY L. LOREMAN and : NO. 2012 - 2061 CIVIL TERM MARY K. LOREMAN, his wigs, Defendants : IN PARTITION PRAECIPE TO SETTLE AND DISCONTINUE To the Prothonotary: Please mark this case settled and discontinued August 24, 2012 prejudice. 11AKVLU ,. IKr1111V, 111 Attorney for plaintiff Supreme Court ID No. 29920 64 South Pitt Street Carlisle, PA 17013 (717) 243-6090 j ~'t Robert G. Frey, Esquire ~ ~, o Attorney for Barry L. and Mary K. Loreman ~~., 5 South Hanover Street n n s+• ~ c~-~ -:- Carlisle, PA 17013 ~ °~ ~~ ~ .~""~~~ (717) 243-5838 -~ -e" Supreme Court I.D.#46397 "'~ ~ STANLEY E. DOUGLAS, Plaintiff vs. BARRY L. LOREMAN and MARY K. LOREMAN, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION -LAW NO. 2012-2061 CIVIL TERM IN PARTITION DEFENDANTS' PETITION TO STRIKE DISCONTINUANCE AND FOR ENTRY OF .TUDGMENENT BY DEFAULT Defendants, Barry L. Loreman and Mary K. Loreman, by and through their attorney, Robert G. Frey, respectfully request your Honorable Court to Strike the Discontinuance entered by the Prothonotary and grant Judgment by Default in Defendants' favor on their Counterclaim. and in support thereof aver as follows: 1. This action to partition real estate located at 1330 Williams Grove Road, Mechanicsburg, Pennsylvania was initiated by Plaintiff, Stanley Douglas, by the filing of a Complaint on March 30, 2012. A copy of Plaintiffs Complaint is attached hereto and incorporated herein as Exhibit "A." 2. Plaintiffs Complaint seeks an "order providing for the partition of this real estate, its transfer to the plaintiff...." 3. On May 10, 2012, Defendants filed their Answer to the Complaint and included a New Matter and Counterclaim. A copy of Defendants' Answer, New Matter and Counterclaim (without the corresponding exhibits) is attached hereto and incorporated herein as Exhibit "B." 4. Defendants' Counterclaim seeks an Order be entered directing the partition of the Property setting forth Defendants Barry L. Loreman and Mary K. Loreman as owners of 100% of the property as joint tenants and Plaintiff Stanley E. Douglas and Sarah B. Snyder as having no interest in the Property. 5. Plaintiff has not filed a Reply or other responsive pleading to Defendants' Counterclaim. 6. On August 16, 2012, Defendants served upon Plaintiff's counsel of record a Notice of Intent to enter judgment by default. 7. C-n August 24, 2012, Plaintiff filed a Praecipe to Settle and Discontinue the action. 8. No agreement has been reached between Plaintiff and Defendants settling the action and Defendants did not agree to or authorize the discontinuance of their Counterclaim. 9. The office of the Prothonotary discontinued the action based on the Praecipe filed by Plaintiff. 10. The discontinuance was not authorized by Defendants and should be stricken as to their Counterclaim. 11. A discontinuance by a plaintiff does not affect the right of a defendant to proceed on a counterclaim already filed in the action. Baumgartner v. W)tinney,156 Pa Superior Ct. 167, 39 A.2d 738 (1944). 12. Plaintiff is now in default for failing to have filed a responsive pleading as required and Defendants are entitled to judgment in their favor. 13. Counsel for Defendant was not able to obtain concurrence from counsel for Plaintiff for this Motion. 14. Pa.R.C.P. 229(c) authorizes the court to strike off a discontinuance in order to protect the rights of a party "from unreasonable inconvenience, vexation, harassment, expense or prejudice." 15. The discontinuance of the action will result in unreasonable inconvenience, vexation and expense because they are entitled to judgment at this time and refilling a partition action would cause additional court costs, attorney's fees and a delay in time during which they do not have access to the real estate or the opportunity to rent or sell the property. WHEREFORE, Defendants Barry L. Loreman and Mary K. Loreman respectfully request that a Rule be issued on Plaintiff, returnable within 20 days, to show cause why the discontinuance of the action should not be stricken as to their Counterclaim, that Judgment should not be granted in their favor against Plaintiff Stanley E. Douglas on their Counterclaim directing the partition of the real estate known as 1330 Williams Grove Roar Mechanicsburg, Pennsylvania setting forth Defendants Barry L. Loreman and Mary K. Loreman as owners of 100% of the property as joint tenants and Plaintiff Stanley E. Douglas and Sarah B. Snyder as having no interest in the Property. Dated: August 29, 2012 Respectfully submitted, By: Robert G. Frey, Esquire Attorney for Barry L. and Mary K. an 5 South Hanover Street Cazlisle, PA 1'7013 (717) 243-5838 Supreme Court I.D.#46397 Exhibit "A" T aTANLlY e. oouoi.Aa, Plalntlf( BARRY L. LORNMAN and MARY iK. LORBMAN, hls wNi, D~ndants IN THe count of coMMON P~eAS of : cuMBSeRLANO COUNTY, PeNNS1nvAN1A CML ACTION -LAIN N0.2012 - ~~ CML TlRM IN PARTITION . C4MPI.AINT NOW, comes the plaintiff, by his attorney; Harold S. Irwin, III, Esquire, and presents this complaint, representing as follows: 1. Plaintiff is STANLEY E. D©UGLAS, an adult individual residing, at` 1330 WiNiams Grove Road, Aechanicsburg, Cumberland County, Pennsylvania 17055. 2. Defendants are BARRY L. LOREMAN and MARY K. LOREMAN, his wife, adult individuals residing at 1204 Brandt Roil, Mechanicsburg, Cumberland County, Pennsylvania 17055. 3. The parties are joint ovmers, together with Sarah B. Douglas, now Sarah B. Snyder (hereinafter Snyder), of a tract of real estate and improvements located in Monroe Township, Cumberland County, Pennsylvania, known and numbered as 1330 Williams Grove Road, Mechanicsburg, Pennsylvania 17055: 4. The-partres and Snyder hold title to said real estate by virtue of a deed from the defendants to the plaintiff, Snyder, and to the defendants, dated August 18, 2003, and recorded in the Cumberland County Recorder of Deeds office in Deed Book 258, Page 3736. A cePY of this deed is incorporated herein by reference and attached hereto'as Exhibit `A". ~. 5. .The premises which is the subject of this. action is security for a first mortgage, all of the payments for which have been made by the plaintiff since 2002. Plaintiff has also paid all of the real estate tax payments, homeowners insurance payments, and maintenance expenses since 2002. 6. No persons other than the parties to this partition argon have an interest in the said property, except Snyder, who, by virtue of a Substituted Settlement Agreement between here and the plaintiff, dated. September 23, 2010, has waived all her right, title, and interest -legal, equitable, and possessory.- to the property in favor of plaintiff. Snyder has also agreed in the substituted agreement to execute any and all documentation to effectuate this transfer of her interest to plaintiff. A copy of this substituted agreement is incorporated herein by reference attached hereto as Exhibit'B' ~ - 7. No partition or division of the above-described property has ever been made. 8. When the property was originally purchased, by the defendants in June, 2002, it was for the benefit of the plaintiff and Snyder, then husband and wife, who provided the downpayment and dosing costs for the purchase. The parties had previously agt~l that upon ~aintiff and Snyder (defendants' daughter) moving from Texas to Cumberland County, Pennsylvania, the property would ultimately become the property of the plaintiff and Snyder'. 9. The plaintiff and Snyder subsequently divorced and both have remarried, while the plaintiff has continued to reside in the property and pay ail expenses therefor. 10. Plaintiff has demanded personally and through counsel that the defendants now convey their remaining undivided one-hall interest in the property to the plaintiff, but defendants have refused and continue so to refuse to execute a deed providing for that transfer. 12. The said real estate cannot be divided without prejudice to or spoiling the whole, neither should rt be divided under the circumstances of this case, but should be conveyed to the plaintiff. WHEREFORE, the plaintiff requests that the Court enter an order providing for the partition of this real estate, its transfer to the plaintiff, and such other relief as the Cour# may deem appropriate. March 27, 2012 l./~-~ ~ W HAROLD S. IRWlN,11 Attorney for Plaintiff 64 South Pitt Street Carlisle, PA 17013 , (717) 243-6090 Exhibit "B" Robert G.:Frey::~squire supreme Court F.D. No. Aa+osney for Defei~aat[s A6~97 Frey at~d Tiley S South Hanover Street Z`el: 'I1Z-243-583:8 Carlisle: Penns~lvanta 17013 Fay: 71'7=243-6841 STANLIEY E. DOI7GLAS, Plantif#` vs: BARRY L. LOR~MAN anri MARY K. L4RElt!IAN, Defendants Ta: Stanley E: Dougiaa You;.-are hereby notif ed to file: a written response to the +~nclosed Answer with New Matter atyd !~ouriter Claim within twenty (ZQ) days :from servine hereof oT a judgmentmay be entered against yoci: Attorney for Defendants 5 So~eth Hanover Street Carlisle, Pennsylvania 17013 STANLEY E. DOUGLAS, Plaintiff vs. BARRY L. LORBINAN snd MARY K. LOREMAN, Defendants IN THE COURT OF COMMON PLEAS OF CUNiBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION -LAW NO. 2012-2061 CIVIL TERM IN PARTITION ANSWER AND NOW, come Frey 8t Tiley, Attorneys Cor Defendants, and respectfully Answer the Complaint of Plaintiff as follows: 1. Admitted 2. Admitted. 3. Admitted. ey way of further answer, the real estate referenced in Plaintiff s paragraph shall hereinafter be referred to as "the Property." 4. Admitted. 5. Admitted in part; Denied in part. It is admitted that the Property is subject to a mortgage. [t is further admitted that Defendants have not made any payments on the mortgage obligation or real estate tax payments, and homeowners insurance payments. It is denied that Defendants did not assist in maintenance expenses. Defendants provided their dme and labor in assisting with renovations of the Property. After reasonable investigation, Defendants have no tcnowledge and are unable to determine what payments were made by Plaintiff. Therefore, the allegation is denied. Byway of further answer, Plaintiff has had the right of possession, either shared with Snyder, or exclusively, since 2002 and Defendants have received no payments of rent or other compensation from Plaintiff for his occupancy of the Property. 6. Admitted. 7. Admittcci. T 8. Admitted in part; Denied in part. It is admitted that Defendants purchased the Property with the intention that it be a home for Plaintiff and Snyder, their daughter, upon their moving to Cumberland County from Tecas. It is denied that Plaintiff or Snyder provided any portion of the down payment for the Property. Defendants paid all of the down payment constituting 1056 of the purchase price, totaling X15,000.00, which has not repaid to them. It is further denied that it was agreed that the Property would be conveyed to Plaintiff and Snyder upon their moving to Cumberland County. To the contrary, the verbal agreement between the parties was that upon Plaintiff and Snyder moving to Cumberland County, Defendants would convey aone-half interest to them, which was done by the Deed attached as Exhibit "A" to Plaintiff's Complaint. It was further verbally agreed that upon Plaintiff and Snyder repaying Defendants the S 15,000.00 down payment that Defendants had paid as a loan to Plaintiff and Snyder, that Defendants would convey all of their interest in the Property to Plaintiff and Snyder. 9. Admitted in part; Denied in part It is admitted that Plaintiff and Snyder have each divorced and remarried. It is further admitted that Plaintiff has continued to reside at the Property. After reasonable investigation, Defendants have no knowledge and are unable to determine what payments were made by Plaintiff. Thercfa eSe, the allegation is denied. 10. Admitted. By way of further answer, Defendants remain willing to convey the property to Plaintiff upon his repaying to them of their 1056 equitable interest in the property by virtue of the S1S,000.00 down payment that they had originally made as a loan to I~aintiff and Snyder. 11. Omitted from Plaintiff s Complaint. 12. Admitted in part; Denied in part. it is admitted that the Property should not be divided. It is denied that having the Property conveyed to Plaintiff is a remedy available in an action in Partition. WHEREFORE, Defendants respectfully request that the Court enter an order directing the partition of the Property setting forth the respective interests of parties in the Property, recognizing Defendant's payment of a portion of the purchase price. NEW MATTER 13. Paragraphs 1 through 12 are incorporated herein by reference. 14. The Property was purchased by Defenclartt Barry L. Loreman on or about June S, 2002 for a purchase price of $150,000.00. As part of the purchase, Defendant Bang L. Lorernan borrowed $142,500.00 from Countrywide Home Loans and gave a f first mortgage on the Property. A copy of said mortgage is attached hereto as Exhibit "A". 15. Un or about September 1$, 2003, subsequent to the conveyance of the Property to Plaintiff, Snyder and Defendants as joint tenants, Plaintiff, Snyder and Defendants refinanced with Champion Mortgage, receiving first mortgage financing of $144,500.00 and second mortgage financing of $25,500.00 for total indebtedness of $170,000.00. A copy of said first and second mortgages are attached hereto as Exhibit "B". 16. A portion of the proceeds of the financing referenced in Paragraph 15 were used to payoff the prior financing with Countrywide Home Loans. None of the balance of the proceeds of the refinancing were received by Defendants and it is believed that alt of the proceeds were used far the sole benefit of Plaintiff andlor Snyder. 17. Un ar about August 20, 2004, Plaintiff, Snyder and Defendants refinanced with IndyMac Bank, receiving first mortgage f nancing of $157,500.00 and second mortgage financing of $52,500.00 for totstl indebtedness of $210,000.00. A copy of said first and second mortgages are attached hereto as Exhibit "C". 18. A portion of the proceeds of the Onancing referenced in Paragraph 17 were used to payoff the prior financing with Champion Mortgage. None of the balance of the proceeds of the refinancing were received by and it is believed that a!! of the proceeds were used for the sole benefit of Plaintiff and/or Snyder. 19. On or about May 24, 2007, Plaintiff, Snyder and Defendants refinanced with Americ~trt Financial Resources, receiving first mortgage financing of 5270,000.00. A copy of said mortgage is attached hereto as E.~thibit "D". 20. A portion of the proceeds of the financing referenced in Paragraph 19 were used to payoff the prior financing with IndyMac Bank. None of the balance of the proceeds of the refinancing were received by and it is believed that all of the proceeds were used for the sole benefit of Plaintiff and/or Snyder. 21. It is believed and averred that the money received by Plaintiff and/or Snyder was used for the petsotwl purposes of Plaintiff and Snyder and far exceeds payments on principal, homeowners' insurance, taxes, maintenance and repair of the Property and that neither Plaintiff nor Snyder have any equitable interest in the Property. 22. To determine the extent of Plaintiffs or Snyder's interest in the Property, it is necessary for Plaintiff to provide an accounting of the rents and profits received by him and Snyder, including the net proceeds from each of the above-referencxd refinancing transactions, an accoundng for the fair value of the use and occupancy of the Property by Plaintiff and Snyder, and an accounting of payments made on the principal indebtedness, homeowners' insurance, real estate taxes, repairs and maintenance of the Property. WI~REFORE, Defendants respectfully request that an Order be entered requiring Plaintiff to provide an accounting of the rants and profits received by him and Snyder, including the net proceeds from each of the above-referenced refinancing transactions, an accounting for the fair value of the use and occupancy of the Property by Plaintiff and Snyder, and an accounting of payments made on the principal indebtedness, homeowners' insurance, real estate tares, repairs and maintenance of the Property. COUNTERCLAIM 23. Paragraphs 1 through 22 are incorporated herein by reference. 24. Defendants have an equitable interest in the Property to the extent of their initial contribution toward the purchase price in the amount of 515,000.00. 25. Defendants have received no rents or profits from the Property, no pordan of the net proceeds from the above-referenced refinance ttansactivns, and no privileges for the use or occupancy of the Property. 26. It is believed and averred that through increasingly greater refinancing tnussactions, Plaintiff and Snyder have taken equity in the Property, converted this money to cash through borrowing and use the money for their personal purposes rather than adding value to the Property. 27. It is lxlieved and averred that the money diverted Cor personal purposes by Plaintiff and Snyder significantly exceeds all payments that they had made payments on principal, homeowners' insurance, taxes, maintenance and repair of the Property. 28. Therefore, it is believed and averred that neither Plaintiff nor Snyder have any equitable interest in the Property and that they should be determined in Partition pursuant to Pa.RC.P. to have no interest in the Property. WHEREFQRE Defendants respectt'uliy request that ars Order be entered directing: ,the partitiott of the Propert}r setting #'orth I7et`t3ntiants Barry L,. Lareman and glary lC: l,oremian as owners of`100~a of tfie propet°t~ as joint Eenantsstnd Plaintiff Stanely E. Uonglas and Sarah B: Snyder as hztvng na::interest in the Property Respectftly submitted, Frey: & They, t verify t6at:the stsytesttcnts:muade herein are true at>sl edrt+cct utxl understand that-false .statemettts herein are mAde subject to the'. penalties<af 18 f'a. C. S. ?I. ~ =t9t~} reiat~g to uas~vorn_!'alsit`icatioa't~ aut}roritics. Dated: ~~ ~ Z.;: :3012 __ rye... `BAR L. LOREMAN / /y~ /~ r. d4! ~/.L//_.r5 i1~tARY ORE Exhibit "C" STANLEY E. DOUGLAS, : IN THE COURT OF COMMON PLEAS OF Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA vs. :CIVIL ACTION -LAW BARRY L. LOREMAN and NO. 2012-2061 CIVIL TERM MARY K. LOREMAN, Defendants IN PARTITION T0: Stanely E. Douglas DATE OF NOTICE: August 16, 2012 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ETTTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIlVD OUT WHERE YOU CAN GET LEGAL HELP: CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PENNSYLVANIA 17013 TELEPHONE: 717-249-3166 r---- /~ B J Y' Robert G. Frey, Esquire ~. Supreme Court Number 46397 5 South Hanover Street Carlisle, Pennsylvania 17013 (717) 243-5838 3 Robert G. Frey, Esquire Attorney for Barry L. and Mary K. Loreman 5 South Hanover Street Carlisle, PA 17013 (717) 243-5838 Supreme Court I.D.#46397 STANLEY E. DOUGLAS, Plaintiff vs. BARRY L. LOREMAN and MARY K. LOREMAN, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2012-2061 CIVIL TERM IN PARTITION RULE TO SHOW CAUSE AND NOW, this day of 54;G;k-,2012, upon consideration of the attached Petition, it is Ordered as follows: 1. A Rule is issued upon Stanley E. Douglas ("Plaintiff"), to show cause why the Defendants are not entitled to the relief requested; 2. If Plaintiff, wishes to oppose Defendants' Motion, he shall file an Answer to the Petition within twenty (20) days of the date of this Order; and 3. If an Answer is filed by Plaintiff opposing the granting of relief, a Hearing shall be scheduled on Motion of either party. Dated: By t ourt L"7 n.a i r*1 c) cn -11 y.C. Distribution: ? Robert G. Frey, Esquire, Attorney for Defendants ? Harold S. Irwin, III, Esqurie, attorney for Plaintiff av,e5 $AaJed g411;1' fik&