HomeMy WebLinkAbout12-5546 i F C?THD?VO t~~
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PHELAN HALLINAN & SCHMIEG, LLP
Matthew Brushwood, Esq., Id. No.310592
1617 JFK Boulevard, Suite 1400
One Penn Center Plaza ATTORNEY FOR. PLAINTIFF
Philadelphia, PA 19103
215-563-7000
PHH MORTGAGE CORPORATION
2001 BISHOPS GATE BLVD COURT OF COMMON PLEAS
MOUNT LAURI?L, NJ 08054
CIVIL DIVISION
Plaintiff
TERM Lr I
TERESA L. HIGHLANDS A/K/A 1'ERESA NO. ~p~- S S`'[lU U ~ `
HIGHLANDS
DENNIS E. HIGI-LLANDS CUMBERLAND COUNTY
195 THOMPSOI~II HOLLOW ROAD
SHIPPENSBURG. PA 17257-9475
Defendants
CIVIL ACTION -LAW
COMPLAINT IN MORTGAGE FORECLOSURE
ate{ ~ID3.7S~d Q
File 304415 n ~ l
aSV3~ 1 /
NOTICE
You have'been sued in Court. If you wish to defend against the claims set forth in the
following pages, you must take action within twenty (20) days after this Complaint and Notice
are served by enuring a written appearance personally or by attorney and filing in writing with
the Court your defenses or objections to the claims set forth against you. You are warned that if
you fail to do so, the case may proceed without you, and a judgment may be entered against you
by the Court without further notice for any money claimed in the Complaint or for any other
claim or relief regiuested by the plaintiff. You may lose money or property or other rights
important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO
NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW.
THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE
TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER
LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
CUMBERLAND COUNTY ATTORNEY
REFERRAL
CUMBERLAND COUNTY BAR ASSOCIATION
CUMBERLAND COUNTY COURTHOUSE
2 LIBERTY AVENUE
CARLISLE, PA 17013
(7]7)249-3166
(800)990-9108
File 30441 S
_ _ _ _ _
1. Plaintiff is
PHH MORTGAGE CORPORATION
2001 BISHOPS GATE BLVD
MOUNT LAUREL, NJ 08054
2. The names) and last known address(es) of the Defendant(s) are:
TERESA L. HIGHLANDS A/K/A TERESA HIGHLANDS
DENNIS I~. HIGHLANDS
195 THOI~IPSON HOLLOW ROAD
SHIPPEN$BURG, PA 17257-9475
who is/are the mortgagor(s) and/or real owner(s) of the property hereinafter described.
3. On 11/30/005 TERESA L. HIGHLANDS and DENNIS E. HIGHLANDS made,
executed and delivered a mortgage upon the premises hereinafter described to
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. AS A NOMINEE
FOR ERA'HOME LOANS which mortgage is recorded in the Office of the Recorder of
Deeds of CUMBERLAND County, in Mortgage Book 1936, Page 1166 The
PLAINTIFF is now the mortgagee and is in the process of formalizing an assignment of
same. Thy mortgage and assignment(s), if any, are matters of public record and are
incorporated herein by reference in accordance with Pa.R.C.P. ] 019(g); which Rule
relieves the Plaintiff from its obligations to attach documents to pleadings if those
documents are of public record.
4. The premises subject to said mortgage is described as attached.
5. The mortgage is in default because monthly payments of principal and interest upon said
mortgage due 04/01 /2012 and each month thereafter are due and unpaid, and by the terms
of said mortgage, upon failure of Mortgagor to make such payments after a date specified
by written 'notice sent to Mortgagor, the entire principal balance and all interest due
thereon are'collectible forthwith.
File 304415
_ _ _
6. The following amounts are due on the mortgage as of 07/11/2012:
Principal Balance $152,711.84
Interest $4,976.09
03/01 /2012 through 07/ I 1 /2012
Late Charges $2,734.30
P#operty Inspections $11.25
Subtotal $160,433.48
Escrow Credit ($1,038.46)
TOTAL $159,395.02
7. Plaintiff is not seeking a judgment of personal liability (or an in personam judgment)
against the Defendant(s) in the Action; however, Plaintiff reserves its right to bring a
separate Action to establish that right, if such right exists. If Defendant(s) has/have
received a'discharge of personal liability in a bankruptcy proceeding, this Action of
Mortgage foreclosure is in no way an attempt to reestablish such personal liability
discharged in bankruptcy, but only to foreclose the mortgage and sell the mortgaged
premises pursuant to Pennsylvania Law.
8. Notice of Qntention to Foreclose as set forth in Act 6 of 1974 and/or Notice of Default as
required by the mortgage document, as applicable, have been sent to the Defendant(s) on
the date(s)set forth thereon.
WHEREFORE, Plaintiff demands an in rem judgment against the Defendant(s) in the sum of
$159,395.02, together with interest, costs, fees, and charges collectible under the mortgage
including but not llimited to attorney fees and costs, and for the foreclosure and sale of the
mortgaged property.
PH N H LLINAN & SCHMIEG, LLP
By:
atthe Bru wood, Esquire
Attorney Plaintiff
File 304415
LEGAL DESCRIPTION
ALL that certain piece or parcel of mountain land, with the buildings theron erected, situate in
Southampton Township, Cumberland County, Pennsylvania, bounded and described as follows:
BEGINNING at a small chestnut tree; thence by land now or formerly of Christian Cashman
South Fifty-five (55) degrees West Eighty-two (82) perches to a chestnut tree; thence North
Eleven and One-half (11-1/2) degrees West Fourteen (14) perches to a stone; thence by land now
or formerly of George C. Clever North Fifty-four (54) degrees East Eighty-two (82) perches to a
stone; thence alonig a mountain road by land now or formerly of T.P. Blair, South Five (5)
degrees East Sixtaen and Nine-tenths (16.9) perches to the place of BEGINNING.
CONTAINING Seven (7) acres, more or less.
BEING the same which Robert A. Crawford and Robin L. Crawford, husband and wife, by deed
dated November ~0, 2005, and intended to be recorded in the Office of the Recorder of Deeds
for Cumberland County, Pa., prior hereto, granted and conveyed unto Dennis E. Highlands and
Teresa Highlands, husband and wife, Mortgagors herein.
PROPERTY ADDRESS: 195 THOMPSON HOLLOW ROAD, SHIPPENSBURG, PA
17257-9475
PARCEL # 39-15-0179-027
File # 304415
VERIFICATION
Dana Foye
hereby states that he/she~s~S~nti ~ ICt F'fe5f(~~t~III
MORTGAGE CORPORATION, Plaintiff in this matter, that he/she is authorized to make this
Verification, and verify that the statements made in the foregoing Civil Action in Mortgage
Foreclosure are true and correct to the best of his/her information and belief. The undersigned
understands that this statement is made subject to the penalties of 18 Pa. C.S. Sec. 4904 relating
to unsworn falsification to authorities.
By PHH Mortgage Corporation,
Its authorized agent,
Date: / 12_.. _
BY
PHS#: 304415
Name: HIGHLANDS
File 304415
- -
FORM 1
t=
IN THE COURT OF COMMON PL r.`,
PHH MORTGAGE CORPORATION OF CUMBERLAND COUNTY, PENNSY~~NIr~
Plaintil~ s
~O ~ ~ --c~
~ j, ,J
vs. ~ ....i
_ t
C_J
TERESA L. HIGHLANDS A/K/A TERESA ~
HIGHLANDS Z~ C> ~t~~.
DENNIS E. HIGHLANDS ^ ~
Defendant(s) la'SSN Civil -
NOTIC~ OF RESIDENTIAL MORTGAGE FORECLOSURE
DIVERSION PROGRAM
You have bden served with a foreclosure complaint that could cause you to lose your home.
If you own itnd live in the residential property which is the subject of this foreclosure action, you may be able
to participate in acourt-supervised conciliation conference in an effort to resolve this matter with your lender.
If you do nqt have a lawyer, you must take the following steps to be eligible for a conciliation conference.
First, within twenty (~0) days of your receipt of this notice, you must contact MidPenn Legal Services at (717) 243-9400
extension 2510 or (8(~0) 822-5288 extension 2510 and request appointment of a legal representative at no charge to you.
Once you have been ~ppointed a legal representative, you must promptly meet with that legal representative within
twenty (20) days of t)}e appointment date. During that meeting, you must provide the legal representative with all
requested financial information so that a loan resolution proposal can be prepared on your behalf. If you and your legal
representative compl~te a financial worksheet in the format attached hereto, the legal representative will prepare and a
Request for Conciliation Conference with the Court, which must be filed with the Court within sixty (60) days of the
service upon you of tthe foreclosure complaint. If you do so and a conciliation conference is scheduled, you will have an
opportunity to meet kith a representative of your lender in an attempt to work out reasonable arrangements with your
lender before the morkgage foreclosure suit proceeds forward.
If you are represented by a lawyer, you and your lawyer must take the following steps to be eligible for a
conciliation conference. It is not necessary for you to contact MidPenn Legal Service for the appointment of a legal
representative. However, you must provide your lawyer with all requested financial information so that a loan resolution
proposal can be prepajred on your behalf. If you and your lawyer complete a financial worksheet in the format attached
hereto, your lawyer wjill prepare and file a Request for Conciliation Conference with the Court, which must be filed
within sixty (60) days of the service upon you of the foreclosure complaint. If you do so and a conciliation conference is
scheduled, you will hive an opportunity to meet with a representative of your lender in an attempt to work out
reasonable arguments''with your lender before the mortgage foreclosure suit proceeds forward.
IF YOU WI~H TO SAVE YOUR HOME, YOU MUST ACT QUICKLY AND TAKE THE STEPS
REQUIRED BY TH S NOTICE. THIS PROGRAM IS FREE.
Respectful] submitted:
~n+--
Date
Ma ew B shwood,
Esqu
Attorney for Plaintiff
FORM 2
Cumberland County Residential Mortgage Foreclosure Diversion Program
Financial Worksheet
Date
Cumberland County Court of Common Pleas Docket #
BORROWER RE VEST FOR HARDSHIP ASSISTANCE
To complete your request for hardship assistance, your lender must consider your circumstances to determine
possible options while working with your counseling agency. Please provide the following information to the
best of your knowledge:
Borrower name(s):
Property Address:
City: State: Zip:
Is the property for sale? Yes ? No ? Listing date: Price: $
Realtor Name: Realtor Phone:
Borrower Occupied? Yes ? No ?
Mailing Address (i$different):
City: State: Zip:
Phone Numbers: Home:_ Office:
Cell: Other:
Email:
# of people in household: How long?
Mailing Address:
City: _ State: Zip:
Phone Numbers: Home:_ Office:
Cell: _ Other:
Email:
# of people in household: How long?
First Mortgage Lender:
Type of Loan:
Loan Number: Date You Closed Your Loan:
Second Mortgage L$nder:
Type of Loan:
Loan Number:
Total Mortgage Payments Amount: $ Included Taxes & Insurance:
Date of Last Payme~ht:
Primary Reason for pefault:
_ - _ _
Is the loan in Bankruptcy? Yes ? No ?
If yes, provide names, location of court, case number & attorney:
Assets Amount Owed: Value:
Home: $ _ $
Other Real Estate: $ _ $
Retirement Funds: $ $
Investments: $ $
Checking: $ $
Savings: $ $
Other: $ $
Automobile #1: Model: Year:
Amount owed: Value:
Automobile #2: Model: Year:
Amount owed: Value:
Other transaortatio~h (automobiles boats motorcvcles)• Model:
Year:_ Amount owed: Value
Monthly Income
Name of Employers:
1 • Monthly Gross Monthly Net
2• Monthly Gross Monthly Net
Monthly Gross Monthly Net
Additional Income bescription (not wages):
1 • monthly amount: _
2. monthly amount:
Borrower Pay Days':_ Co-Borrower Pay Days:
Monthly Exaensest (Please only include expenses you are currently paying)
EXPENSE AMOUNT EXPENSE AMOUNT
Mort a e Food
2°d Mort a e Utilities
Car Pa ment s Condo/Nei h. Fees
Auto Insurance Med. not covered
Auto fuel/re airs Other ro a ment
Install. Loan Pa met Cable TV
Child Su ort/Alim, S endin Mone
Da /Child Care/Tuit. Other Ex enses
Amount Available fbr Monthly Mortgage Payments Based on Income & Expenses:
Have you been working with a Housing Counseling Agency?
Yes ? No ?
If yes, please provide the following information:
Counseling Agency: Counselor:
Phone (Office): Fax:
_ _
Email:
Have you made application for Homeowners Emergency Mortgage Assistance Program (HEMAP)
assistance?
Yes ? No ?
If yes, please indicate the status of the application:
Have you had any prior negotiations with your lender or lender's loan servicing company to resolve your
delinquency?
Yes ? No ?
If yes, please indicate the status of those negotiations:
Please provide the following information, if known, regarding your lender and lender's loan servicing
company:
Lender's Contact (Name): Phone:
Servicing Company (Name):
Contact: Phone:
I/We, ,authorize the above named
to use/refer this information to my lender/servicer for the sole purpose of evaluating my
financial situation fCrr possible mortgage options. I/We understand that I/we am/are under no obligation to
use the counseling siervices provided by the above named
Borrower Signature Date
Co-Borrower Signature Date
Please forward this) document along with the following information to lender and lender's counsel:
1. Proof of income
2. Past 2 bank statements
3. Proof of and expected income for the last 45 days
4. Copy of a current utility bill
5. Letter explajining reason for delinquency and any supporting documentation (hardship letter)
6. Listing agreement (if property is currently on the market)
_... ~ .,... r,,,.. ,. _.,
'_ _ ~ ,
_ ..._... ...'i
PHELAN HALLINAN & SCHMIEG, LLP ATTORNEY FOR PLAINTIFF
BY: .IOSEPH P. SCHALK, ESQUIRE
Identification No: 91656
126 Locust Street
Harrisburg, PA 17101
Telephone~215Z563-7000, Ext. 7365
PHH MORTGAGE CORPORATION COURT OF COMMON PLEAS
2001 BISHOPS GATE BLVD CUMBERLAND COUNTY, PENNA.
MOUNT LAURE, NJ 08054,
Plaintiff, Civil Division
vs. .
NO. 12-5546 CIVIL
TERESA L. HIGHLANDS A/K/A 'I'ERESA
HIGHLANDS AND
DENNIS E. HIGHLANDS
195 THO:MPSON HOLLOW ROAD
SHIPPENSBURG, PA 17257-9475
Defendants
PLAINTIFF'S REPLY TO DEFENDANTS' NEW MATTER
AND NOW COMES the Plaintiff, PHH Mortgage Corporation, by and through its
attorneys, Phelan, Hallinan & Schmieg, LLP, and hereby files the within Reply to New Matter of
Defendants, Teresa L. Highlands, A/K/A Teresa Highlands and Dennis E. Highilands, and states as
follows:
11. Plaintiff incorporates herein by reference the averments of paragraphs 1
through 8'~ of its Complaint as if set forth herein at length.
PHS~~ 04415
12. Denied. The averment contained in paragraph 12 is denied as a conclusion of
law to which no response is necessary. To the extent that a response is required. Plaintiff is under no
obligation to schedule a Conciliation Conference with the Cumberland County Courts for the
Defendants. Defendants have the right to opt in and request a conference of thou own accord. If the
Defendants failed to do so, Plaintiff may proceed with its Foreclosure Complaint. Strict proof to the
contrary is demanded.
13. Denied.. The averment contained in paragraph 13 is denied as a conclusion of law to
which no response is necessary. To the extent that a response is required, DetE;ndants', under the
Trust and Lending A,ct, are barred by the applicable Statute of Limitations, as Defendants'
Mortgage was executed on November 30, 2005. Any and all claims under the Trust and Lending Act
would ha~~e terminated three (3) years from the date of execution. Strict proof'to the contrary is
demanded. With respect to subsections a through g o~f paragraph 13, said subsections are denied
again as conclusions of law to which no responses are necessary.
13(sic). Denied. The averment contained in paragraph 13 is denied as a conclusion of
law to which no response is necessary. To the extent that a response is required, it is specifically
denied that Plaintiff lacks standing to commence the .action in mortgage foreclosure. Plaintiff, PHH
Mortgage Corporation, is the Assignee of the Mortgage executed by the Defendants as evidenced by
the Assignment of Mortgage recorded in the Office of the Recorder of Deeds in and for Cumberland
County, Pennsylvania, to Instrument #201224093, on August 09, 1012. Strict proof to the contrary is
demanded. A copy of the Assignment of Mortgage, redacted to protect personal account identifying
information, is attached hereto, made part hereof and marked as Exhibit `°A."'
14. Denied. The averment contained in paragraph 14 is denied as a ~;~onclusion of law to
which no response is necessary. To the extent that a response is required, Defendants have failed to
PHS#30441
plead facts sufficient to raise a defense or violation under RESP. Further, Defendants intimation
that the Plaintiff has failed to comply with the guidelines provided for by the Housing and Urban
Development Department, are specifically denied as Defendants' loan is not an FHA insured
Mortgage. A copy of the Mortgage, redacted to protect personal account identifying information, is
attached hereto, incorporated herein and marked as Exhibit `B." The remaining subsections of
paragraph 14 are all denied as conclusions of law to vrhich no responses are necessary.
15. Denied. The averment contained paragraph 1 ~ is a conclusion of la~~~ to which no
response is necessary. To the extent that a response is required, Defendants have tailed to plead any
facts sufficient to rai~~se a defense or allegation under the Homeowner Equity Protection Act. Strict
proof to the contrary is demanded.
WHEF:EFORE, Plaintiff respectfully requests that the Court enter ,judgment in its
favor and against Defendants as requested in Plaintiff's Complaint.
Respectfully submitted,
PHELAN HALLINAN & SCHMIEG, LLP
Date: _~. / 0i2~~~L---
r
~_
p P. 'Schalk, Esquire
rney for Plaintiff
PHS#304415
VERIFICATICIN
Joseph P. Schalk, Esquire, hereby states that he is the attorney for the Plaintiff in this action,
that he is authorized to make this verification, and that the statements made in the foregoing Reply
to Ne~~~ Matter are true and correct to the best of his knowledge, information. a.nd belief.
The undersigned understands that this statement is made subject to the penalties of 18
Pa.C.S. §4904 relating to unsworn falsifications to authorities.
DATE : l o '~----
PHELAN HALLINAN & SCfIMIEG, LLP
Bv:
~o ph~.'Schalk, Esquire
At orney for Plaintiff
12 Locust Street
Harrisburg, PA 17101
Telephone: 215-563-7000, Ext. 7365
PHS#304415
Return To:
PHH Mortgage Corporation
1 Mortgage ~Vay
Mt. Laurel. N7 08054
"this instrument Prepared :By: L.eatma Srnolar,
PFll1 Mortgage C~>rl~oration
1 Mortgage Way. Mt. Laurel, NJ 08054
Task ID:
Min ~':
Mers Phone:
ASSIGNMEN'T' UF' MUR'I'GAGE/ DEED OF TRUST;'
~i~i~ii~~~a
i or Value l;eceived, Mortgage Electronic Registration Systems, Inc, ("MFRS") as nominee for ERA Il:(:)MI?
LOAD'S, its successors and assigns whose address is PO BOX 2026, fzlint, Michigan 48501-2026, and ~transter to
PHH MORTGAGE COIZPORATION, its successors and assigns, whose address is 1 MORTGAGE W_AY MT
LAUREL NJ 080.54, all its right, title and interest in and to a certain Iti4ortgage /Deed of Trust executed by TERESA
L HIGHLANI~S~DENNIS E I~IIGT~iLANDS and bearing the date of 11!30/2005, and recorded on OI/03/2006 in the
office of the recorder of CUMBERLAND County, State of PA, iu Book, Volume, or Libcr No. 1936, at page 1.166_
or as No. in the amount of $161500.00
Property Address: 195 THOMPSON HOLLOW RD SHIPPENSBtTRG PA 17257
~ =~~
Signed on 06~ 15/2012
MORTGAGE ISLTfi°l`12C~NIt: I~~s"C;IS'I':RA'TION SYSTEMS, INC. (MI~;RS)
By. ~ ~
C's ~ 41.u:G C~,tllaz'dc7 ,. , 1 AN'1 Is(~i~ly 1 r1RY
State oC Ne-w Jersey, County of Burlington,
On OE'15!2012, before me, Donna Budden, a notary public in and for said State, personally appeared Candace
Galiarcio ASSISTANT SEC;R>;TARY, of Mortgage %lectronic Registz-atiou Systems, Inc, personally known to me or
proved to n-ze on the basis of satisfactory evidence to be the individual whose name is subscribed to the within
instrument and aclalowledged to me that she executed the same in her capacity, and th~al by her signature on the
iustntment, the individual, or the person upon behalf of which the individual acted, executed the instntrnen.t.
"~~~~-~~`'~ Donna Budden
1~~ _ --
I~otan• Public Notary Public of New aersey
A~Iy Connnission E:xpirea: 07-24 14
~!p1'tt'i2! f3U~~t~r
1C? 23170J7 S#;~t 7~~
~y Comm, ~xp
,, ~.-
CERTIFICATE OF RESIDENCE
I HEREBY CERTIFY THAT THE PRECISE RESIDENCE OF THE ASSTCiNEE IS AS FOLLOWS:
PHH MORTGAGE CORPORATION
1 MORTGAGE VVAY
MT. LAUREL, NJ 08054
{,~.X)`~tIOI~IZIND SIGNER)
30415
A ,E. _ ,
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~ ~3~. . ~ ~ ,
_: , ,
,
~.
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,_ ~~ ~ ~
ROBERT P. ZIEGLER
12ECORD:ER OF DEEDS
CUMBERLAND COUNTY
1 COURTHOUSE SQUARE
CARLISLE, PA 17013
717-240-6370
Instrument Number - 201224093
Recorded On 8/9/2012 At 11:45:37 AM
* Instrument Type -ASSIGNMENT OF MORTGAGE
Invoice Number - ].14687 User ID - MSW
* Mortgagor -HIGHLANDS, DENNIS E
* Mortgagee - PHH MORTGAGE CORD
* Customer - PHELAN HALLINAN & SCIIMIEG LLP
* FEES
STATE WRIT TAX $0.50
STATE JCS/ACCESS TO $23.50
JUSTICE
RECORDING FEES - $11.50
RECORDER OF DEEDS
PARCEL CERTIFICATION $10.00
FEES
COUNTY ARCHIVES FEE $2.00
ROD ARCHIVES FEE $3.00
TOTAL PAID $50.50
I Certify this to be recorded
in Cumberland County PA
a'~ s~F ~ M ~ ,,
~' '° .~ 1 ° RECORDER O D F.DS
i
r ~ti
~~ }„ ~ , ''
_ nso
* Total Pages - 4
Certification Page
DO NOT DETACH
This page is now part
of this legal document.
* -Information denoted by an asterisk may change during
the verification process and may not be reflected on this page.
i iiu6iuf~iii i~nii
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Prepared By:
Justine Stahl, ERA Hame Loans
3000 Leadenhall Road Mount
Laurel, NJ 08054
(866) 471-6683
Rehn7i To:
ERA Nome Loans
2001 Bishops Gate Blvd. Mount
Laurel, NJ 08054
Parcel. Number:
Premises: 195 THOMPSON HOLLOW ROAD
SHIPPENSBURG
ISpace Above Thls Line For Recording Dotal
MORTGAGE
MIN
DEFLNI'I'IONS
Words used in multiple sections of this document are defined below and other words are defined in
Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the; usage of words used in this document are
also provided in Section 16.
(A) "Security Instrument" means this document, which is dated November 30 , 2005 ,
together with all Riders to this document.
(B)"Borrower"is Teresa L Highlands and Dennis E Highlands. WIFE AND HUSBAND
Borrower is the mortgagor under this Security Instrument.
(C) "1VIERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is
acting, solely as a r-ominee 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. (88'8) 679-MERS.
PENNSYLVANIA -Single Family - Fannle MaelFreddle Mac UNIFaRM INSTRUMENT WITH MERS Form 3839 1101
~•fiA(PA) {oso21
° fJC, t'1 ~~l
Page 1 of ? 5 Initials:
VMP!,tortgageSalution<.~, lnc. (800}521-7291
Bit 1 935PG 1 l ~6
(1)) "Lender" is ERA Home Loans
Lender is a Corporation
organized and existing under the laws of Del aware
Lendt;r's address is 3000 Leadenhal l Road Mount Laurel . NJ 08054
(E} "Mote" means the promissory note signed by Borrower and dated November 30, 2005
The rdote states that Borrower owes Lender One Hundred S'1 xty-One Thousand Five Hundred
Dollars and Zero Cents Dollars
(U. S. $ 161, 500.00 }plus interest. Borrower has promised to pay ithis debt in regular Periodic
Payments and to pa}~ the debt in fui[ not later than December 1St, 2035
(F} "Property" means the property that is described below under the heading "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 intere-st.
(F~ "-Riders" mean:; all Riders to this Security Instrument that are executed b;y Borrower. The following
Riders are to be executed by Borrower jcheck box as applicablei:
Adjustable Rate Rider Condominitun Rider Second Home Rider
Balloon Rider Planned Unit Development Rider 1-4 Family Rider
`JA Rider Biweekly Payment Rider Other(s) [specify]
m "Applicable Law" means all controlling applicable fedl;ral, state and local statutes, regulations,
ordinances and administrative rules and orders (that have the effect of law) as well as all applicable #Inal,
non-appealable judicial opinions.
(.n "C,ommunity 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,
(IC) "Electronic Funds 'T'ransfer" 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 #inancial 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, ands 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 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.
~ "Mortgage Insurance" means insurance protecting Lender 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.
Initials: ~~
~•&A(PA) ~oso21 P~ya2 of a Form 3039 1101
UI1 ~ J~Uf~ ~ ~ ~~
(P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et sec[.) and its
Implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to
time, or any additional or successor legislation or regulation that governs the same subject matter. As used
in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard
to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage
loan" under RESPA.
(Q) "Successor in >nterest of Borrower" means any party that has taken title to the Property, whether or
not that pazty has assumed Borrower's obligations under the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This ;iecurity 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
MERE (solely as nominee for Lender and Lender's successors and assigns) and to the successors and
assigns of MERS, tFte following described property located in the COUNTY [type of Recording Jurisdiction]
of Cl1MB~RLAND [Nome of Recording .turisdietionj:
which currently has the address of 195 TNOMPSON HOLLOW ROAD
SNIPP~NSBURG
("Property Address" ):
[Streetl
[cirri, Pennsylvania 17257 ['Lip Code]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all
easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and
additions shall also be covered by this Security Instrument. ,All of the foregoing is referred to in this
Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title
to the interests granted by Borrower to 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 and sell the Property; and to
take any action required of Lender including, but not limited to, releasing and canceling this Security
Instrwnent.
6A PA oso2 ~nit~a~s: tk
•~" ~ ~ ~ ) Page 3 of 16
~E{ ~ ~s ~ i ~ i~~i t 1 C) C~1
Form 3039 1101
BORROWER i~OVENANTS that Borrower is lawfiilly seised of the estate hereby conveyed and has
the ri;;ht 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.
IINIFORl~I COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late I'~harges.
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
par•suant 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
Secuuity Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments
due under the Note and this Security Instrument be made in one or more of the following forms, as
selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or
cashier's check, provided any such check is drawn upon an lnstihrtion whose deposits are insured by a
federal agency, instrumentality, or entity; or (d} Electronic Funds Transfer.
Payments are deemed received by Lander when received at the location d'.esignated 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
currend, without waiver of any rights hereunder or prejudice to its rights to refiuse such payment or partial
payments in the fuhtre, but Lender is not obligated to apply such payments at the time such payments are
accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay
interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring
the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply
such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding
principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower
might have no~v or in the future against Lender shall relieve Forrower from making payments due under
the Note and this Security Instrument or performing the covenants and agreements secured by this Security
Instrument.
2;. Applicatiorr 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 f;ach 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
Initlafs: ~4'1'~
'~- -OA(PA) ~osoz) Paga4 of i6 Form 3039 1101
PK1~36~G116~
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 clue under
the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
'~. Funds for l~scrow 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 "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 encwnbrance on the Property; (b) leasehold payments ar ground rents on the Property, if any; (c)
premiums for any amd all insurance required by Lender under Section 5; and (d) Mortgage Insurance
premiums, if any, nor any sums payable by Borrower to Lender in lieu of the payment of Mortgage
Insuuance premiums in accordance with the provisions of Section ]t). Theca items are called "Escrow
Items." At origination or at any time d~uing 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 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 Bonower'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 vvhere payable, the amounts
clue for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires,
shall furnish to Lender receipts evidencing such payment within such time period as Lender may require.
Borrower's obligatia~n to make such payments and to provide receipts shall for all purposes be deemed to
be a covenant and agreement contained in this Security Instrument, as the phrase: "covenant and agreement"
is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and
Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9
and pay such amour.~t and Borrower shall then be obligated under Section 9 to repay to Lender any such
amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in
accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in
such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply
the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can
require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and
reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable
Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency,
instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in
any Federal Home Loan Bank. Lender shall apply the Funds to :pay the Escrow ]:tams 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 Lander pays Borrower interest on the
Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing
or Apphcabie Law requires interest to be paid on the Funds, Lender shall not bc, required to pay Borrower
any interest or earnings on the Funds. Borrower and Lander can agree in writiing, however, that interest
Initials: Af.l~
~•6A(PA~ losa2l Page 5 of 16 Form 3439 1141
~~{ { ~~~3~~ ~ ~ ~~
shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the
Funds as required by RESPA.
l:f there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to
Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow,
as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to
Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12
monthly payments.:(f there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall
notify Borrower as required by RESPA, and Borrower shall pay to Lender the, amount necessary to make
up the; deficiency in accordance with RESPA, but in no more than I2 monthly payments.
1Jpon payment in full of all sums secured by this Security Instrument, Leander shall promptly refimd
to Borrower any Fuatds held by Lander.
4. Charges; Liens. Borrower shalt pay all taxes, assessments, charges, fines, and impositions
attributable to the Property which can attain priority over this Security Instrument, leasehold payments or
ground rents on the :Property, if any, and Community Association Dues, Fees, and Assessments, if any. To
the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3.
Borrower shall promptly discharge any Iien which has priority over this Security Instrument unless
Borror era (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; {h) contests the lien in goad 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 (cj 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 Iien
which can attain priority over this Security Instrtunent, Lender may give Borrower a notice identifying the
lien. Within 10 days of the date on which khat notice is given, Eiorrower shall satisfy the lien or take one or
more of the actions s,et Earth above in this Section 4.
tender may require Borrower to pay aone-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 Properly insured against loss by fire, hazards included within the term "extended coverage," and any
other ftazards including, but not limited to, e<lrthquakes 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 four flood zone determination
and certification services and subsequent charges each time reamappings or similar changes occur which
reasonably might affect such determination or certification. Eorrower shall also be responsible for the
payment of any fees imposed by the Federal Emergency Management Agency in connection. evith the
review of any flood ~:one determination resulting from an objection by Borrower.
Initials: t~tG~ Q/i.,~
~•tiA{PA) tasozt aa9es of is Form 3039 1101
B[~[~3GPG[[7[
]f 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 S shall
become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest
at the Note rate from the date of disbursement and shall be payable, with such. interest, upon notice from
Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender's
right to disapprove such policies, shall include a standard mortgage clause, and shall name :Lender as
mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal
certifcates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
renewal notices. If 1orrower obtains any form of insurance coverage, nat otherwise required by Lender,
f'or damage to, or destruction of, the Property, such policy shall include a standard mortgage r.,lause 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
he 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 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 ~mdertaken
promptly. Lender may disbarse proceeds for the repairs and restoration in a single payment or in a series
of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law
requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any
interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by
Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If
the restoration or repair is not economically feasible or Lender's security would. be lessened, the insurance
proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in
Section 2.
If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the
insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day
period will begin when the notice is given. In either event, or if Lender acquires the Property under
Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and
(b) an;y other of Borrower's rights (other than the right to a.ny refund of unearned premiums paid by
Borrower) under all insurance policies covering the Property, insofar as such rights era applicable to the
coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or
to pay amounts unpaid under the Note or this Security Instrument, whether or nat then due.
tnitlals: pig.!-t'
+~-iiA(PA} (o5oz) Page r or 16 Form 3039 1101
~(t ~ n~~B~ ~ ]' ~~
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 unrE;asonably withheld, or unless extenuating
circiurrstances 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 Propert•~ to deteriorate or commit waste on the
Property. Whether or not Borrower is residing in the Prapert}~, Borrower shall maintain the Property in
order Ito 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 af, the Property, Borrower
shall be responsible for repairing or restoring the Property only if Lender has released proceeds far 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 ~utd inspections of the Property. If it has
reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.
8, Borrower`s Loan Application. Borrower shall be in default if, during the Loan application
process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender
(or failed to provide Lender with material information) in connection with the i,oan. ii~laterial
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
reguIations), 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 Froperty 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 acid is not
under any duty or obligation to do so. It is agreed that Lender incurs no liabilit)~ for not taking any or all
actions authorized under this Section 4,
Initials: ~><'t
-6A(PA) (0502) Page a of 1s Form 3039 1101
~~~~~~~~~~~ ~E~3
Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower
secured by this Security Instrument. These amounts shall beau interest at the Note rate from the date of
disbursement and sltall be payable, with such interest, upon notice from Lender to Borrower requesting
payment.
If this Securit}~ 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.
fl0. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan,
Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason,
the Mortgage Insurance coverage required by 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 these
payments as a non-refundable loss reserve in Lieu of Mortgage Insurance. Such loss reserve shall be
non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be
required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss
reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender. requires}
provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires
separately designated payments toward the premiums for Mortgage Insurance. I F 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 anon-refundable lass reserve, until Lender's
requirement for Mortgage Insurance ends in accordance with arty written agreernent between Borrower and
Lender providing fo:r such termination or until termination is required by Applicable Law. Nothing in this
Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it
may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage
Insurance.
Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may
enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements
are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to
these agreements. These agreements may require the mortgage insurer to make payments using any source
of funds that the mortgage insurer may have available (which nay include funds obtained from Mortgage
Insurance premiums).
As a result of 1:hese agreements, Lender, any purchaser of the Note, anol:her insurer, any reinsurer,
any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that
derive from (or nug:ht 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 agreernent
provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the
premicuns paid to the: insurer, the arrangement is often termed "captive reinsuranice." Further.
{a) Any such agreements will not affect the amounts that Borrower has agreed to pay for
1VIortgage 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.
Inillals: ,,~
-6A(PA) toeo2~ Page 9 of 16 Form 3039 1101
f~i{1~3~PG1 ~~74
(b) Any such agreements will not affect the rights Borrower has - if any -with respect to the
Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights
may include the right to receive certain disclosures, to request and obtain cancellation of the
Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a
refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or
termination.
l.l. 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 ar repair of
the Property, if the restoration or repair is economically feasible and Lender's security is net lessened.
During such repair and restoration period, Lender shall have the right to hold s+ach Miscellaneous Proceeds
until Lender has had an opportunity to inspect such Property to ensure the woxk 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 nn 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 secw~ity would
be lessened, the Miscellaneous Proceeds shall be applied to the sums secured tly 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.
I:n the event of a partial taking, destruction, or loss in value of the Property in which the f.~tir market
value of the Property immediately before the partial taking, destruction, or loss in value is equal to or
greater than the amount of the sums secured by this Security Instrument immediately before the partial
taking, destruction, or loss in value, unless Borrower and Lender otherwise ;agree in writing., the sums
secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds
multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
partial taking, destruction, or loss in value divided by (b) the fair marh:et 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 Lander 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 artthorized
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 proceeding to be
Initlafs• ~~.~^
-6A(PA) tosozl Page to or to Form 3939 1101
B~~ 1 93~PG ! ~ 75
dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material
impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of
any award or claim for damages that are attributable to the impairment of Lender's interest in the Property
are hereby assigned and shall be paid to Lender.
All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be
applied in the order provided for in Section 2.
12. Barro~ver 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 reduired to contmenee 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 dt;mand made by the original
Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right ur
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. ;ioint 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 aloes not execute the Note (a "eo-signer"): (a) is co-signing this
Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the
terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security
Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or
make any accommodations with regard to the terms of this Security Instrument or the Note without the
co-signer's consent.
Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes
Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain
all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from
Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in
writing. The covenants and agreements of this Security Instrument shall bind (except as provided in
Section 20) and benefit the successors and assigns of Lender.
1.4. Loan Charges. Lender may charge Borrower fees for services performed in connection with
Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this
Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees.
In regard to any other fees, the absence of express authority in this Security Instrument to chazge 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.
Il'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 Nate or by making a direct payment to Borrower. If a refitnd 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 ax 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
~i~iaig: 5~~~
t~-6A(PAj (0502 page t i of is Form 30139 1101
5~19~~PGIl7~
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 Harrowers
unless Applicable L,aw 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 Barrower's change of address. If Lender specifies a procedure for reporting Borrower's
change of address, then Borrower shall only report a change e~f address through that specified procedure.
There may be only one designated notice address under this Security Instrument at any one time. Any
notice. to [,ender shall be given by delivering it or by mailing; it by first class mail to Lender's address
stated herein unless Lender has designated another address by notice to Borrower. Any notice in
connection with this Security Instrument shall not be deemed to have been given to Lender until actually
received by Lender. If any notice required by this Security Instrument is also required tinder Applicable
Law, the Applicable Law requirement will satisfy the corn;spending requirement under this Security
Instrument.
16. Governing Laty; Severability; Rules of Construction. This Security Fnstruntent shall be
governed by federal. law and the law of the jurisdiction in which the Property is located. All rights and
obligations containf;d 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 agrreement 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 previsions of this Security Instrument or the Note which can he
given effect withaut 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.
't8. Transfer of the Property or a Beneficial Interest in Borrower. A,s used in this Section 18,
"Interest in the Property" means any legal or beneficial interest in the Property, including, but net 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 fu.tttre date to a purchaser.
[f all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower
is not a nattual person and a beneficial interest in Borrower is sold or transferrred) 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 prahibited by
Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The ctotice 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 musk pay all sums secured by this Security Instrumernt. 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.
l9. Borro-ver's Right to Reinstate After Acceleration. If Borrower meets certain conditions,
Horrower 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 Propert}~ pursuant to any power of sale cantained in
this Security Instrument; (b) such other period as Applicable Law might specify for the termination of
Borrower's right to reinstate; or (c) entry of a judgment enforcing this ~iecurity Instrument. Those
conditions are that Borrower: (a) pays Lender all sums which then wottid lie due under this Security
instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or
Initials: ~~
-6A(PA) (0502) Page 12 of 16 Form 3039 1101
81~l93~PG~ !77
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 far 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 Sec;tuity Instrument, and Borrower's obligation to pay the sums secured by this Security
Instrument, shall continue unchanged. Lender may require that. Borrower pay s+.rch reinstatement sums and
expenses in one or more of the following 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
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.
2U. Sa[e of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in
the Note (together with this Security Instrument) can be sold one or more times without prior notice to
Borrower. A sale might result in a change in the entity {known as the "Loan Servicer") that collects
Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan
servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might he
one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan
Servicer, Borrower will be given written notice of the change which will state the name and address of the
new Loan Servicer, the address to which payments should be made and any other information RESPA
requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is
serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations
to Borrower will remain with the Loan Servker or be transferred to a successor Loan Servicer and are not
assumed by the Nate purchaser unless otherwise provided by the Note purchaser.
Neither Borrower nor Lender may commence, join, or be joined to any jiudicial action (as either an
individual litigant or the member of a class) that arises from+ the other party's actions pursuant to this
Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by
reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such
notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the
other party hereto a reasonable period after the giving of such notice to take corrective action. If
Applicable Law provides a time period which must elapse before certain action can be taken, that time
period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and
opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to
Borrower pursuant I:o 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 arose
substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the
following substances: gasoline, kerosene, other flammable or toxic petroleums products, toxic pesticides
and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials;
(b) "Einvironmental Law" means federal laws and laws of the jurisdiction where the Property is located that
relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response
action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental
Condition" means ,z condition that can cause, contribute to, or otherwise trigger an Environmental
Cleanup.
Initials: ()~Grf
-eA(PA) tosoz) Page 73 of tfi Form 3039 1101
m
C1tt «~ ~ ^~ t ! / (J
Forrower 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 Propeerty. 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
I-Iazardous 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 Substanre 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-UNIFOF.M COVENANTS. Borrower and Lender fiarther covenant + nd agree as follows:
22. Acceleration; Remedies. Lender shall glue notice to Borrower prior to acceleration following
Borrower's breach of any covenant or agreement ]n this Security Instrument (but not prior to
acceleration under Section 18 unless Applicable Lativ provides otherwise). Lender shalt notify
Borrower of, among other things: (a) the default; (b) the action required to cure the default; (c) when
the default must be cured; and (d) that failure to cure the default as specified may result in
acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and
sale of the Property. Lender shall further inform Borrower of the right to reinstate after acceleration
and the right to assert in the foreclosure proceeding the non-existence of a default or any other
defense of Borrower to acceleration and foreclosure. If the default is not cured as specified, Lender at
its option may require immediate payment in full of all sums secured by this Security Instrument
without further demand and may foreclose this Security Instrument by judicial proceeding. Lender
shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22,
including, but not limited to, attorneys' fees and costs of title evidence to the extent permitted by
Applicable Law.
23. Release. Upon payment of all sums secured by this Security Instrument, this Security Instniment
and tYte estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge
and satisfy this Security Instrument. Borrower shall pay any recordation costs. Lender may charge
Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services
rendered and the charging of the fee is permitted under Applicable Law.
24. Waivers. Borrower, to the extent permitted by Applicable Law, waives and releases any error or
defects in proceedings to enforce this Security Fnstrument, and hereby waives the benefit of any present or
future laws providing for stay of execution, extension of time, exemption front attachment, levy and sale,
and homestead exemption.
2.5. Reinstatement Period. Borrower's time to reinstate provided in Section 19 shall extend to one
hour prior to the commencement of bidding at a sherif#'s stile or other sale; pursuant to this Security
Instrument.
26. Purchase Money Mortgage. If any of the debt secured by this Security Instnument is lent to
Borrower to acquire title to the Property, this Security Instrument shall be a purchase money mortgage.
2'.7. 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 fronn time to time
under the Note.
®-6A(PA) {osos> Page 14 of t6 initials: ~'~ Form 3039 1101
8~{ f ~3~PG 1179
I3Y 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:
~~ ~ `~~~
(Seal)
-Borrower
-6A{PA} tosoz)
„ (Seal)
Borrower
(Seal}
-Borrower
` (Seal)
Teresa LHighland -Borrower
~:
(Seal)
Denni s E Hi ghl a S -Borrower
Page 15 of 16
8it~~3~PG1 I~0
_ (Seal)
-Borrower
_ (Seal)
-Horrower
_ (Seal)
-Borrower
Form 3039 1101
t°~2
COMMONWEALTH OF PENNSYLVANIA, -C-EfMO'EI~CARC! ~~~~i~ County ss:
On this, the 30th day of November, 2005 , before me, the
undersigned officer, personally appeared Teresa L Hi ghl ands, Denni S E Hi ghl ands
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/sho/they executed the same for the purposes herein contained.
l'N WITNESS WHEREOF, I hereunto set my hand and official seal.
My Commission Expires:
COMMONWEALTH OF PENNSYLVANIA ~~~ ~~~ jC
NOTARIAL SEAT
Pamela D. Fteichelderl'er, Notary Public
Greene Township, FrenklEn County Title of Officer
'~nv Commlulon 8xplres June o3, ~t7iJ4
Certificate of Residence /~ ~ ` ~ /
I, JUStine Stahl ~!i-~ ~ (~ ~c~ l~~ , do hereby certify that
the con-ect address of the within-named Mortgagee is P.O. Box: 2026, Flint, MI 48501-2026.
'Witness my hand this 30th day of November. 2005
G~. ~ /
Justine Stahl ~i~-e G, a~eac~e ~ga~
-6A(PA) losozi Page 16 of i6 Form 3039 1101
Ull~~~~t_lSt #~~
EXHIBIT A
ALL that certain piece or parcel of mountain land, with the buildings theron erected, situate in Southampton
Township, C~.imberland County, Pennsylvania, bounded and described as follows:
BEGINNING at a small chestnut tree; thence by land now or formerly of Christian Cashman South Fifty-five
(55) degrees 'West Eighty-1:wo (82) perches to a chestnut tree; thence North Eleven. and One-half (l l-1/2) degrees
West Fourteen (14) perches to a stone; thence by land now or formerly of George C. Clever North Fifty-four (54)
degrees East Eighty-two (82) perches to a stone; thence along a mountain road by land now or formerly of T.P.
Blair, South Five (5) degrees East Sixteen and Nine-tenths (16.9) perches to the place of BEGINNING.
CONTAINING Seven (7) acres, more or less.
BEIN~the same which Robert A. Crawford and Robin L. Crawford, husband andl wife, by deed dated
~1eti r (~ 2005, and intended to be recorded in the Offire of the Recorder of Deeds for Cumberland
County, Pa., prior hereto, granted and conveyed unto Dennis E. Highlands and 'Teresa Highlands, husband and
wife, Mortgagors herein.
Q~ ~
B1t1~3~PG118~
Loan ~luinber
LOW DOWN NAYMENT MORTGAGE RIDER TO SECURITY INSTRUMENT
THIS LOW DOWN PAYMENT MORTGAGE RIDER TO SECURITY INSTRUMBrI'I' is made
this 30th day of November, 2005, and is incorporated into and shall be deemed to amend and supplement the
Mortgage, Deed of Tn~st, or Security Deed (the "Security Instniment") of the same date given by the
undersigned ("Borrower") to secure Borrower's Note to ERA Home Loans ("Lender"} covering the Property
described in the Sect~irity instrument and located at:
195 THOMPSON HOLLOW ROAD SHIPPENSBURG, PA 17257
[Property Address]
r1.DDiTIONAL COVENANTS. 1n addition to the covenants and agreements made in tl~er Security
Instnunent, Borrower and Lender further covenant and agree as follows:
A. LOW DOWN PAYMENT MORTGAGE RATE REDUCTION
The Note provides for the reduction in the Borrower's interest rate as follows:
1. LOW DOWN PAYMENT MORTGAGE RATE REDUCTION
Borrower has agreed to pay the rate of interest set forth in Section 2 of die Note (the "Nate Rate")
until the full amount of principal has been paid. Note Holder agrees to decrease the Note Rate by
1.125 percentage point(s) on the earlier of (a) the First Cancellation Date or t ~e Second
Cancellation Date, provided that the conditions described in 1.A or l.B below, as applicable, arc
satisfied; or (b) the Termination Date, provided that ]3orrower's monthly payments are current at
that time.
A. First Cancellation Date
1'he "First Cancellation Date" is defined as the date that is the first monthly payment dtte
date after Note Holder has verified that Borrower has satisfied all of the following
requirements: (I) Borrower must request cancellation in writing; (2) the mortgage
balance: (a} is first scheduled to reach 80% of the original property value; or (b) actually
reaches $0% of the original property value; (3) Borrower has demonstrated a Good
Payment History (as described below); and (4) the then-current value of the property is at
least equal to the original property value. {For purposes of calculating original property
valve hereunder, Borrower's loan-to-value ratio at origination is 95.00%. In addition, the
then-current property value will be based on a new appraisal or broker's price opinion
obtained by Nate Holder and paid for by Borrower.)
For purposes of the First Cancellation Date, Borrower will have demonstrated a Good
Payment History if the Borrower has had neither (1) a payment thirty (30) days or more
past due in the twelve (12) months preceding the payment due date immediately prior or
the First Cancellation Date, nor (2) a payment sixty (60) days or more past due in the
twenty-four (24} months preceding the payment due date immediately prior to the First
Cancellation Date. If Borrower has had the mortgage loan far less than twenty-four (24)
months, this payment history requirement vrill be based on the length of time Borrower
has had the mortgage loan.
l~1ULTISTATE LO~V DOWN PAYMENT MORTGAGE RIDER TO SECURITY INSTRUMENT
Page t of {3
~It i ~~~~~ it i ~~
B. Second Cancellation Date
The "Second Cancellation Date" is defined as the date that is the first monthly payment
due date a8er Note Holder has verified that Borrower has satisfied all of the following
requirements: (1) Borrower must request cancellation in writing; (2) the mortgage
b~dance must be paid down to a point that it,: (a) if within 2 to S years of the date of this
document, reaches 75% of the current property value, or (b) if after 5 years of the date of
this document, reaches 80% of the current property value (current property value to be
based on a new appraisal obtained by Note Holder and paid four by Borrower); and {3) the
loan must have at least atwenty-four {24) month history.
For purposes of the Second Cancellation Date, the Borrower will have demonstrated a
Good Payment History if the Borrower has had neither (1) a payment thirty (a0) days or
miore past due in the twelve (12) months preceding the payment due date immediately
prior to the Second Cancellation Date, nor (2) a payment sixty (60) days or more past
d~ae in the twenty-four (24) months preceding the payment due date immediately prior to
the Second Cancellation Date.
C. Termination Date
The "Termination Date" is defined as the earlier of: (1) the date that the: mortgage
balance is first scheduled to reach 78% of the original value of the property;, or (2) the
first day of the month after the date that is the mid-point of the original. mortgage
aimortization period.
For purposes of the Termination Date, the Borrower's monthly payments will be deemed
to be current if the payment due in the month before the 'Termination Date, all prior
monthly payments, and any outstanding late charges have been paid by the end of the
month before the Termination Date. If the Borrower's monthly payments are n.ot current
on the Tertination Date, the rate will be reduced thereafter on the first payment clue date
fallowing the date on which Borrower's monthly payments become current.
Ib. New Payment Amount
U.' and when the Note Rate is reduced as described above, Note Holder will advise
8•orrower (1) of the amount of the new monthly payment that would be saifficient to
rE;pay the unpaid principal Borrower will owe on the date the Note Rate is reduced, in
frill on the maturity date at Borrower's new Note Rate in substantially equal payments
(the result of the calculation will be Borrower's New Payment. Amount"); and (?)the date
on which the New Payment Amount is to commence, which shall be the next payment
due date after the First Cancellation Date, the Second Cancellation Date, or the
Termination Date, as applicable.
MULTISTATE LOW DOWN PAYMENT IVIORTGAGF, R[DER TO SECURITY [NSTRUMEN9
P~ayg~ 2 0( 3
~iC + ~~
U i4 ~ ~ ~ ~ ~ ~ ~ ~~ V
BY SIGNING BELC)W, Borrower accepts and agrees to the tf;rms and provisions contained in this Low
Down Payment Mortgage Rider to Security Instniment.
c~ . (Seal)
Teresa LHighlands -[3orrower
o ti ~ ~ (Seal}
Dennis 8 Highlands -Borrower
I Certify this to be r~coxded
In Cumberland County PA
~~,
-~~" ~~'
~,;.
o ~k:
~~°~ Recorder of Deeds
MULTISTATE LOW DOWN PAYMENT MORTGAGE RIDER TO SECURITY INSTRUMEN9
Paga 3 of 3
~~~ ~ ~~~~ ~ t Ll~
PHELAN HALLINAN & SCHMIEG, LLP
BY: JOSEPH P. SCHALK, ESQUIRE
Identification No: 91656
126 Locust Street
Harrisburg, PA 17101.
Telephone ~ (215 563-7000 Ext. 7365
PHH MORTGAGE CORPORATION
2001 BISHOPS GATE BLVD
MOUNT LAURE, N.I 08054,
Plaintiff,
vs.
TERESA L. HIGHLANDS A/K/A TERESA
HIGHLANDS AND
DENNIS E. HIGHLANDS
195 THOMPSON HOLLOW ROAD
SHIPPENSBURG, PA 17257-947.5
Defendants
ATTORNEY FOR PL.,AINTIFF
COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNA.
Civil Division
NO. 12-5546 CIVIL
CERTIFICATE OF SERVICE
I certify that a true and correct copy of Plaintiff's Reply to Defendants' New Matter
was sent via first class mail to the person(s) listed below on the date indicated:
Shane H. Hobbs, Esquire
Masonic Building
4 South ~:°`i Street
Suite 303
Pottsville, PA 17901
DATE: __ f~,~L~
Jose P.~chalk, Esquire
~tto ey for Plaintiff
PHS~30441 S