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HomeMy WebLinkAbout04-5431THE WASHINGTON SAVINGS BANK, Plaintiff V. RICHARD SHANK, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. V -f- 61-'T3 CIVIL ACTION - MORTGAGE FORECLOSURE NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 THE WASHINGTON SAVINGS BANK, Plaintiff V. RICHARD SHANK, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. 0y' S9-31 CIVIL ACTION - MORTGAGE FORECLOSURE COMPLAINT AND NOW, comes the Plaintiff, The Washington Savings Bank, by and through its attorneys, the Offices of Fenstermacher and Associates, and files this Complaint, as follows: 1. Plaintiff, The Washington Savings Bank (hereinafter "Plaintiff"), is a national banking association having an office at 4201 Mitchellville Road, Bowie, Maryland, and brings this action to foreclose the mortgage dated April 29, 2004, between Defendant Richard Shank as mortgagor and Plaintiff as Mortgagee, which is recorded in the Office of the Recorder of Deeds of Cumberland County, Pennsylvania, in Mortgage Book Volume 1863, Page 3543. 2. Defendant Richard Shank resides at 106 Wayne Avenue, Enola, Cumberland County, Pennsylvania 17025. The property subject to the mortgage is located at 106 Wayne Avenue, Enola, Cumberland County, Pennsylvania. 3. The mortgage secures Defendant's certain note dated April 19, 2004 in the amount of $ 65,000.00, payable to Plaintiff in monthly installments with simple interest at the rate of 7.750 percent per annum. A copy of the mortgage and note is attached as Exhibit "A." 4. The land subject to the mortgage is: ALL THAT CERTAIN tract of land situate in the Township of East Pennsboro, County of Cumberland, and Commonwealth of Pennsylvania, more particularly bounded and described in accordance with a survey made by Ernest J. Walker, Professional Engineer, dated July 13, 1997, as follows, to wit: BEGINNING at a point on the east side of Wayne Avenue (30 feet wide), said point being 232.5 feet south of the intersection of Wayne Avenue with the projected center line of Huntington Avenue; thence extending along land now or late of Francis W. McConnell, et ux, South 88 degrees, 55 minutes East 54.18 feet to a point; thence North 3 degrees 50 minutes East 9.10 feet to a point; thence South 86 degrees, 43 minutes East 211.94 feet to a point on the Western line of Valley Road (20 feet wide, presently unopened); thence extending along the same, North 10 degrees 10 minutes West 65 feet, more or less, to a point 4 feet south of the dividing line between Lot No. 16 and Lot No. 15 on the hereinafter mentioned Plan of Lots; thence in a westerly direction by a line 4 feet south of the dividing line between Lot Nos. 16 and 15, and parallel thereto, 255 feet, more or less, to a point on the east side of Wayne Avenue aforesaid; thence long the same South 3 degrees East 51 feet, more or less, to a point, the place of BEGINNING. BEING the major portion of Lot No. 15 and a small part of Lot No. 14, Section H, on the plan of lots of West Enola, which plan is recorded in Plan Book 1, Page 29, and a revised plan thereof is recorded in Plan Book 2, Page 70, Cumberland County Records. HAVING THEREON erected a dwelling commonly known as 106 Wayne Avenue. 5. Defendant is the real owner of the land subject to the mortgage and Defendant's address is 106 Wayne Avenue, Enola, Cumberland County, Pennsylvania. 6. The mortgage is in default because of Defendant's failure to make the payment due September 14, 2004 and failure to provide Plaintiff with a pre-paid insurance policy of hazard insurance. The following amounts are due on the mortgage: Principal balance totaling $ 64,954.51 2 Interest from 06/01/04 through 10/12/04 (134 days) at 7.750° or $ 13.99 per day totaling $ 1,874.66. This figure increases daily. Late charges to 10/12/04 totaling $ 69.84. This figure increases daily. No escrow was advanced. Total of all above items equals $ 66,899.01 as of October 12, 2004. 7. Plaintiff has fully performed in accordance with the provisions of the Act of January 30, 1974, Pub. L. 13, No. 6, § 403 (41 P. S. § 403). A notice of intention to foreclose mortgage titled NOTICE OF DEFAULT AND RIGHT TO CURE DEFAULT was forwarded to Defendant on August 31, 2004 via certified mail. A copy of the notice is attached as Exhibit "B." 8. Plaintiff did forward a letter of acceleration to defendant on October 13, 2004 demanding immediate repayment in full of all sums due under the Note and Mortgage. Defendant failed to comply with said letter. A copy of the letter is attached as Exhibit "C." WHEREFORE, Plaintiff requests the Court to enter judgment of mortgage foreclosure against the mortgaged property for the amount set forth above, together with interest thereon, all other amounts, including professional fees, advanced by Plaintiff. 3 Respectfully submitted, FENSTERMACHER AND ASSOCIATES. P.C. John R. Fenstermacher Supreme Court I.D. #29940 Justin D. Barber Supreme Court I.D. #91491 5115 East Trindle Road Mechanicsburg, PA 17050 (717) 691-5400 Attorneys for Plaintiff Dated: /0 (Q/ 6) y 4 VERIFICATION I, Robert Rader, Vice President of The Washington Savings Bank, hereby certify and verify that the facts set forth in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. I understand that any false statements herein are subject to the penalties of 18 Pa. C. S. §4904 relating to unsworn falsification to authorities. AbKrt Rader DATE: /0 -oZ4 -0d EXHIBIT 'A' RECORD AND RETURN TO THE WASHINGTON SAVINGS BANK, FSB 4201 MITCHELLVILLE ROAD, SUITE 300 BOWIE, MD 20716 ?v4t4 ZIECCER. pR Ur" DEED 1'`R?Ar1? COUNT} Sw ;?Y 3 Al7 g 3y IGLJO2-S-1&1? Parcel Number: 01- ) 4- Q 0 3 L -o2 j (Space A e TILLS Line For Recording Data] MORTGAGE Loan ID # pp2795ac 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 this document, which is dated April 29th, 2004 together with all Riders to this document. (B) "Borrower" is Richard Shank . Borrower is the mortgagor under this Security Instrument. (C) "Lender" is The Washington Savings Bank, FSB . Lender is a CORPORATION organized and existing under the laws of THE UNITED STATES OF AMERICA Lender's address is 4201 Mitchellville Road, Ste. 300, Bowie, Maryland 20716 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated April 29th, 2004 The Note states that Borrower owes Lender Sixty Five Thousand and no/100- - - - - - - - - - - - - - - - - - - -- - - - - - Dollars (U.S. $ 65, 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 May 1st, 2034 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ? Adjustable Rate Rider ? Condominium Rider ? Second Home Rider ? Balloon Rider ? Planned Unit Development Rider ? Other(s) [specify] ? 14 Family Rider ? Biweekly Payment Rider Initials: ? 5 PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page I of 14 pages) PA1CM1 - 02222002 w .MortgageBaakingSystemsxom BK18Or 3 G3543 Loan ID # pp2795sc (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (1) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Tmnsfer" 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 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. (I) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (Nn "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. " "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender the following described property located in the county of Cumberland [Type of Recording Jurisdiction] [Name of Recording Jurisdiction) See attached Exhibit "A" Initials: ? 15 PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 2 of 14 pages) PA1CM2 - 02222002 w .Mortgagellaakingsystms.com SKI 863,CI3544 Loan ID # pp2795sc which currently has the address of 106 Wayne Avenue, Enola [Street] [City] Pennsylvania 17025 ("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 and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay. when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) 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 designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. Initials: 9 PENNSYLVANIA-Single Family-Fannie Mae/F7eddie Mae UNIFORM INSTRUMENT Form 3039 1/01 (page 3 of 14 pages) PA1CM3 - 02222002 www.MortgageB-nkingS),stems.com n I.- n OK 1863'rb,)54 Loan ID # pp2795sc 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 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 "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 Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly famish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to he a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Initials: KS PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 4 of 14 pages) PA1CM4 - 02222002 w .MmlgagellanktagSystems.com Loan ID # pp2795sc 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 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. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. Initials: PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 5 of 14 pages) PA1CW-02222002 w .MortgageliaakingSystemsxom t g?3 G3547 Loan ID # pp2795sc All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Initials: ?,?-> PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Fmm 3039 1/01 (page 6 of 14 pages) PA1CM6 - 02222002 w .MortgageBaakiugSystewxtaa n-(- 1)r? 4 3 B 9 66J1'I,, 3 Loan ID # pp2795sc Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. S. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security 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 title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by 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. If Lander required Mortgage Insurance as a condition of making the Loan and Borrower was required to Initials: i s PENNSYLVANIA--Single Family-Fannie Mae/Freddte Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 7 of l4 pages) PA1CM7 - 02222002 w .MortgageBankmgSystems.wm %188- ;PG-3 549 Loan ID # pp2795sc make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the Initials: / S PENNSYLVANIA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 /page 8 of 14 pages) PA1CM8 - 02222002 w .MortgageBankin Systems.com BY 18r3FG3 50 Loan ID # pp2795ac 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 tatting, 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 tatting, 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 begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-siguers; 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-signet'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 Initials: PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSMUMEM' Form 3039 1/01 (page 9 of 14 pages) PAICM9 - 02222002 w .MortgageBaukingSystems.con N11800 r?'J - - f Loan ID # pp2795ec Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such 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 Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. 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 Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; 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 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 he 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 Initials: ?s PENNSYLVANIA,Single Family-Fannie Mae/Preddie Mac UNIFORM INSTRUMENT Form 3039 1101 (page 10 of 14 pages) PAICMA - 02222002 w .MortgagellankmgSystems.mm Est!?bJVb X52 Loan ID # pp2795sc transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of. (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation 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 Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be Initials: PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 11 of 14 pages) PAICMB - 02222002 w .MortgageBankiagSystemsxom t$63l'bJ Loan ID # pp2795sc taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). Lender shall notify Borrower of, among other things: (a) the default; (b) the action required to cure the default; (c) when the default must be cured; and (d) that failure to cure the default as specified may result in acceleration of the stuns 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 Instrument and the estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge and satisfy this Security Initials: 4 J PENNSYLVANIA-Single Faintly-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 12 of l4 pages) PAICMC - 02222002 w .MortgageBanktngSystems.com Blt 1853N'G3554 Loan ID # pp2795sc Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower, to the extent permitted by Applicable Law, waives and releases any error or defects in proceedings to enforce this Security Instrument, and hereby waives the benefit of any present or future laws providing for stay of execution, extension of time, exemption from attachment, levy and sale, and homestead exemption. 25. Reinstatement Period. Borrower's time to reinstate provided in Section 19 shall extend to one hour prior to the commencement of bidding at a 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: Richard Shank' PENNSYLVANIA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT PAICMD - 02222002 (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower Form 3039 1/01 (page 13 of 14 pages) w .MortgageBankingSystems.com ??t 1€ 0ol 03555 Certificate of Residence Loan ID # pp2795sa I do certify that the precise address of the within-named mortgagee is 4201 Mitchellville Road, Ste. 300, Bowie, Maryland 20716 Witness my hand this 29th day of April, 2004 Agent of Mortg gee COMMONWEALTH OF PENNSYLVANIA U M V 1e. County ss: On this, the 29th day of April, 2004 before me, the undersigned officer, personally appeared Richard Shank known to me (or satisfactorily proven) to be the person(s) whose name(s) is subscribed to the within instrument and acknowledged that HE executed the same for the purposes herein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. My Commission Expires: t f 0 7 Title of Officer COMMONWEALTH OF PENNSYLVANIA Notarial Seal 1T Certl t Shari L. btel-AbBar, Notary Public t17is t0 be fe.lyr?ded l ycarnp OorurnMionE)pmNov.4,22W7 In Cumberland Co III] ty i-=t Member, Pennsylvania Association Of Notaries Recorder OfUeecls Initials: 41 PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 (page 14 of 14 pages) PA1CME - 02222002 w .MortgageBankiog5ystems.mm EXHIBIT "A" - MORTGAGE LEGAL ALL THAT CERTAIN tract of land situate in the Township of East Pennsboro, County of Cumberland, and Commonwealth of Pennsylvania, more particularly bounded and described in accordance with a survey made by Ernest J. Walker, Professional Engineer, dated July 13, 1967, as follows, to wit: BEGINNING at a point on the east side of Wayne Avenue (30 feet wide), said point being 232.5 feet south of the intersection of Wayne Avenue with the projected center line of Huntington Avenue; thence extending along land now or late of Francis W. McConnell, at ux, South 88 degrees, 55 minutes East 54.18 feet to a point; thence North 3 degrees 50 minutes East 9.10 feet to a point; thence South 86 degrees, 43 minutes East 211.94 feet to a point on the Western line of Valley Road (20 feet wide, presently unopened); thence extending along the same, North 10 degrees 10 minutes West 65 feet, more or less, to a point 4 feet south of the dividing line between Lot No. 16 and Lot No. 15 on the hereinafter mentioned Plan of Lots; thence in a westerly direction by a line 4 feet south of the dividing line between Lot Nos. 16 and 15, and parallel thereto, 255 feet, more or less, to a point on the east side of Wayne Avenue aforesaid; thence along the same South 3 degrees East 51 feet, more or less, to a point, the place of BEGINNING. BEING the major portion of Lot No. 15 and a small part of Lot No. 14, Section H, on the plan of lots of West Enola, which plan is recorded in Plan Book 1, Page 29, and a revised plan thereof is recorded in Plan Book 2, Page 70, Cumberland County Records. HAVING THEREON erected a dwelling commonly known as 106 Wayne Avenue (SHANK. PFD/SHANK/19) B1 86'"3, 557 NOTE Loan ID # pp2795sc April 29th, 2004 Camp Hill, Pennsylvania [Date] [city] [State] 106 Wayne Avenue, Enola, PENNSYLVANIA 17025 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $65, 000.00 (this amount is called "Principal"), plus interest, to the order of the Lender. The Lender is The Washington Savings Hank, PSB I will make all payments under this Note in the form of cash, c eck or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 7.750 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the 1st day of each month beginning on June lot, 2004 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on May lot, 2034 , 1 still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 4201 Mitchellville Road, Ste. 300, Bowie, Maryland 20716 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $465.67 4. BORROWER'S RIGHT TO PREPAY _ I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, 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 me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of Pifteen calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 5.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default First American Title Insurance Company Commitment Number: P.04-145 SCHEDULE A 1. Commitment Date: April 20, 2004 at 08:00 AM 2. Policy (or Policies) to be issued: (a) Owner's Policy ( ALTA Own. Policy (10(17/92) ) Proposed Insured: RICHARD SHANK (b) Loan Policy ( ALTA Loan Policy (10/17/92) ) Proposed Insured: THE WASHINGTON SAVINGS BANK, its successors and/or assigns, as their interests may appear Policy Amount $ 65,000.00 $ 65,000.00 3. Fee Simple interest in the land described in this Commitment is owned, at the Commitment Date, by: JOHN W. KICHMAN and PATRICIA J. KICHMAN, husband and wife 4. The land referred to in the Commitment is described as follows: SEE SCHEDULE C ATTACHED HERETO PURITY ABSTRACT COMPANY By: PUIg4aBSTRACT COMPANY ALTA Commitment Schedule A (10117192) (SHANK.PFD/SHANK/20) First American Title Insurance Company Commitment Number: P.04-145 SCHEDULE B - SECTION I REQUIREMENTS The following requirements must be met: 11 a. Defects, liens, encumbrances, adverse claim, or other matters, if any, created, first appearing in the public records or attached subsequent to the effective date hereof but prior to the date the proposed insured acquired for value of record the estate of interest or mortgage thereon covered by this commitment. b. Instrument(s) creating the estate or interest to be insured must be approved, executed, delivered and filed for record. The following documents must be recorded: 1) DEED from John W. Kichman and Patricia J. Kichman to Richard Shank; and 2) MORTGAGE from Richard Shank to The Washington Savings Bank, FSB. C. Rights of claims by parties in possession or under the terms of any unrecorded agreement(s) of sale. d. Any lien, or right to lien, for services, labor or materials heretofore or hereafter furnished, imposed by law and not shown by public records. e. Township/Borough, County and School Taxes and Water, Sewer, Refuse Rents for the years 2003 to 2004 to be produced and filed with Company. ASSESSMENT $33,630.00 TAX PARCEL NUMBER:09-14-0834-254 f. Proof of identity, legal age, competency, and marital status of all parties to the transaction. Also, the social security number and future address of the seller(s) will be required for the completion of the IRS Form 1099. NOTE: Valid photo identification will be required of all parties to the transaction. g. Liability for any unfiled Mechanics and Municipal Claims that may be filed for work done or ordered to be done or materials furnished. h. Proof that no sewers have been installed or ordered to be installed, abutting or in front of or upon premises described herein prior to completion of this transaction or receipts for the cost of same to be produced, otherwise an exception will be certified in Schedule "B" of the policy relieving company from liability for any loss arising by reason of a claim. i. Proof that there are no overdue support obligations of record with the Domestic Relations Section of the Parties of this transaction, up through the date of recording of the instruments to be insured. NOTE: RICHARD SHANK CURRENTLY HAS ARREARAGE IN CUMBERLAND COUNTY IN THE AMOUNT OF $641.00. THIS AMOUNT MUST BE PAID AT CLOSING OR SHALL BE AN EXCEPTION TO THE LENDERS AND OWNERS POLICY. j. LENDER'S Title Policy to be issued with Pennsylvania endorsements 100, 300 and 900. k. CURRENT MORTGAGES: MORTGAGE to Mid Penn Bank dated May 7, 2003 and recorded May 12, 2003 in Mortgage Book 1811, Page 228 in the original amount of $34,323.62. ASSIGNMENT OF RENTS recorded in Misc. Book 697, Page 658. 1. JUDGMENTS: NONE m. TAX LIENS: NONE n. SECURED TRANSACTIONS: NONE o. Subject to prood of marital status of Richard Shank. ALTA Commitment Schedule 8 -Section I (10/6/82) (SHANKPFD/SHANK/20) First American Title Insurance Company Commitment Number: P.04-145 SCHEDULE B - SECTION II EXCEPTIONS Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. a. THE FOLLOWING EXCEPTIONS, TOGETHER WITH THE TERMS, PROVISIONS, CONDITIONS, STIPULATIONS, AND EXCLUSIONS FROM COVERAGE LISTED ON OUR CURRENT A.L.T.A. TITLE POLICY, AS WELL AS THE ITEMS NOT REMOVED FROM SCHEDULE B, SECTION 1, WILL APPEAR AS EXCEPTIONS ON SAID POLICY OR POLICIES OF TITLE INSURANCE UNLESS CLEARED TO THE SATISFACTION OF FIRST AMERICAN TITLE INSURANCE COMPANY: b. Easements, or claims of easements, not shown by the public record. c. Possible addition tax assessments for new construction and/or major improvements not yet due and payable. d. Accuracy of acreage content. e. Public and private rights in and to the portion of the premises lying in the bed of the road. f. Subject to real estate taxes assessed but not yet due and payable. g. Any variation in location of lines or dimensions or other matters which an accurate survey would disclose. q; h. Subject to rights-of-way, restrictions, conditions, easements and/or setback lines contained on plan in Plan UJ Book 2, Page 70 and Plan Book 1, Page 29. ALTA Commitment Schedule B -Section 11 (1016182) (SHANK.PFD/SHANK120) First American Title Insurance Company Commitment Number: P.04-145 SCHEDULE C PROPERTY DESCRIPTION The land referred to in this Commitment is described as follows: ALL THAT CERTAIN tract of land situate in the Township of East Pennsboro, County of Cumberland, and Commonwealth of Pennsylvania, more particularly bounded and described in accordance with a survey made by Ernest J. Walker, Professional Engineer, dated July 13, 1967, as follows, to wit: BEGINNING at a point on the east side of Wayne Avenue (30 feet wide), said point being 232.5 feet south of the intersection of Wayne Avenue with the projected center line of Huntington Avenue; thence extending along land now or late of Francis W. McConnell, et ux, South 88 degrees, 55 minutes East 54.18 feet to a point; thence North 3 degrees 50 minutes East 9.10 feet to a point; thence South 86 degrees, 43 minutes East 211.94 feet to a point on the Western line of Valley Road (20 feet wide, presently unopened); thence extending along the same, North 10 degrees 10 minutes West 65 feet, more or less, to a point 4 feet south of the dividing line between Lot No. 16 and Lot No. 15 on the hereinafter mentioned Plan of Lots; thence in a westerly direction by a line 4 feet south of the dividing line between Lot Nos. 16 and 15, and parallel thereto, 255 feet, more or less, to a point on the east side of Wayne Avenue aforesaid; thence along the same South 3 degrees East 51 feet, more or less, to a point, the place of BEGINNING. BEING the major portion of Lot No, 15 and a small part of Lot No. 14, Section H, on the plan of lots of West Enola, which plan is recorded in Plan Book 1, Page 29, and a revised plan thereof is recorded in Plan Book 2, Page 70, Cumberland County Records. HAVING THEREON erected a dwelling commonly known as 106 Wayne Avenue. ALTA Commitment Schedule C (SHANK.PFD/SHANK/20) EXHIBIT V Operations Offices • 4201 Mitchellville Road ¦ Bowie, MD 20716-3167 Richard Shank 106 Wayne Avenue Enola, PA 17025 NOTICE OF DEFAULT AND RIGHT TO CURE DEFAULT i; Dear Mr, Shank: Your insurance company has sent WSB notice of cancellation. 301-352-3130 Fax 301-352-3131 August 31, 2004 Certified Mail Return Receipt Request Copy 1" Class Account No: 1940257676 Pursuant to the provisions of the note and mortgage/deed of trust dated April 29. 2004 you executed regarding the property 106 Wayne Avenue, Enola PA 17025 please be informed that you are now in default on the credit transaction. You have a right to correct this default within 10 days from the date of this notice. If you correct the default, you may continue as though you did not default. Your default consists of failure to: Pay installments of $1,302.92, and late charges of $46.56 through August 31, 2004; provide WSB with a pre-paid policy of hazard insurance. Cure of default.- Within 30 days from the date of this notice, and not later than September 14, 2004 must cure your default by paying the following amounts in cash, certified or bank cashier's check $1,302.92 plus any additional monthly payments and late charges falling due within this 10-day, period. You must also provide WSB with a pre-paid policy of hazard insurance. Creditor's rights: If you do not correct your defaults in the time specified in this notice, we may exercise our rights against you under the law by acceleration of the sums secured by the trust, foreclosure proceedings, and/or legal collection or equitable action to sell the property at public auction. You have the right to reinstate the loan after acceleration, if provided in your deed of trust, unless the term of your note has matured, and you have the right to bring a court action to assert in the foreclosure proceedings the non- existence of a default or any other defense you may have to the acceleration and sale. If this default was caused by your failure to make a payment or payments, and you want to pay by mar please send a cashier's check; do not send cash by mail. If the default is not cured after 10 days, you may be required to pay all amounts due directly to our designated attorney, plus attorney's fees and costs, in addition to the amounts above. If you have any questions, write to Foreclosure Dept, The Washington Savings Bank, F.S.B., 4201 Mitchellville Road, Suite 300, Bowie, MD 20716, or, call me at (301) 352-3130 between the hours of 9:00 and 4:30, Monday through Friday. Very ly ?'j f Je or Sr. Ice President IW/mw C. N. Clayton PA hart 61. hgeOd k [mers 30DMSha , Richard IA0251616 300X,4 FDIC rxstmttn 1-800-843-7250 wsa-047 www.twsb.com "v'° EXHIBIT V '"a SAVINGS Operations Offices ¦ 4201 Mitchellville Road ¦ Bowie, MD 20716-3167 October 13, 2004 Richard Shank 106 Wayne Avenue Enola, PA 17025 RE: Notice of Default & Acceleration Loan #1940257676 Dear Mr. Shank: 301-352-3130 Fax 301-352-3131 Pursuant to our August 31, 2004 notice of default, we hereby accelerate the indebtedness, and make demand for immediate repayment in full of all sums due under the Note and Deed of Trust. Your loan will be forwarded to our attorney, John F. Fenstermacher, Esq., 5115 East Trindle Road, Mechanicsburg, PA 17050, telephone (717) 691-5400. Payment to Mr. Mr. Fenstermacher must be in cash or by bank cashier's check. The amount of the debt as of October 12, 2004, is: Principal $64,954.51 Interest 6/01/04 to 10/12/04 @ 7.75% or $13.99 a day x 134 days 1,874.66 Late Charges to 10/7/04 69.84 TOTAL: $66,899.01 Additional interest, attorney's fees, and costs, will become due as collection progresses. Sincerely, Jeff er Sr. Vice President Enclosure JW/pd C. J. Fenstermacher, Esq. FDIC KWyFilevV.r I"mw 4,R-ACCeWMio Lehr(PA-194W7676)d INSURED 1-800-843-7250 ;;,,,,, WSM47 www.twsb.com I.. (P k' r l C _ o CO 1_. -'? PT, W ?'-t SHERIFF'S RETURN - REGULAR CASE NO: 2004-05431 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND WASHINGTON SAVINGS BANK THE VS SHANK RICHARD HAROLD WEARY , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon SHANK RICHARD the DEFENDANT , at 1701:00 HOURS, on the 3rd day of November-, 2004 at 106 WAYNE AVENUE ENOLA. PA 17025 RICHARD SHANK by handing to a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 11.10 Affidavit .00 Surcharge 10.00 .00 39.10 Sworn and Subscribed to before me this day of LJn,o' .r,.., ?,? vU y A.D. So Answers: R. Thomas Kline 11/04/2004 FENSTERMACHER & ASSOC By: Deputy S riff rothonotary' THE WM AD9,T1W 5A,,n Xis 13AwK ViAl r4i vs Case No. 04 -5431 R'zC N7 Ar) S K14NK e Evwtcw+ Statement of Intention to Proceed To the Court: Wh-LU, 11nt tAu.-h rllA Ar X Ruv k T intends to proceed with the above captioned matter. Print ?lame MA rr4 fWW AA90N 5mm qi",n -Tam X. o. it. qq cod 3 Date: M-O)e f+ -2,00 -7 Attorney for Rkinh ThC k+;i.:blirlc v? yP1. c?c ?cw? k Explanatory Comment The Supreme Court of Pennsylvania has promulgated new Rule of Civil Procedure 230.2 governing the termination of inactive cases and amended Rule of Judicial Administration 1901. Two aspects of the recommendation merit comment. 1. Rule of civil Procedure New Rule of Civil Procedure 230.2 has been promulgated to govern the termination of inactive cases within the scope of the Pennsylvania Rules of Civil Procedure. The termination of these cases for inactivity was previously governed by Rule of Judicial Administration 1901 and local rules promulgated pursuant to it. New Rule 230.2 is tailored to the needs of civil actions. It provides a complete procedure and a uniform statewide practice, preempting local rules. This rule was promulgated in response to the decision of the Supreme Court in Shop v. Eagle, 551 Pa. 360,710 A.2d 1104 (1998) in which the court held that "prejudice to the defendant as a result of delay in prosecution is required before a case may be dismissed pursuant to local rules implementing Rule of Judicial Administration 1901." Rule of Judicial Administration 1901(b) has been amended to accommodate the new rule of civil procedure. The general policy of the prompt disposition of matters set forth in subdivision (a) of that rule continues to be applicable. II Inactive Cases The purpose of Rule 230.2 is to eliminate inactive cases from the judicial system. The process is initiated by the court. After giving notice of intent to terminate an action for inactivity, the course of the procedure is with the parties. If the parties do not wish to pursue the case, they will take no action and "the Prothonotary shall enter an order as of course terminating the matter with prejudice for failure to prosecute." If a party wishes to pursue the matter, he or she will file a notice of intention to proceed and the action shall continue. a. Where the action has been terminated If the action is terminated when a party believes that it should not have been terminated, that party may proceed under Rule230(d) for relief from the order of termination. An example of such an occurrence might be the termination of a viable action when the aggrieved party did not receive the notice of intent to terminate and thus did not timely file the notice of intention to proceed. The timing of the filing of the petition to reinstate the action is important. If the petition is filed within thirty days of the entry of the order of termination on the docket, subdivision (d)(2) provides that the court must grant the petition and reinstate the action. If the petition is filed later than the thirty-day period, subdivision (d)(3) requires that the plaintiff must make a show in to the court that the petition was promptly filed and that there is a reasonable explanation or legitimate excuse both for the failure to file the notice of intention to proceed prior to the entry of the order of termination on the docket and for the failure to file the petition within the thirty-day period under subdivision (d)(2). B. Where the action has not been terminated An action which has not been terminated but which continues upon the filing of a notice of intention to proceed may have been the subject of inordinate delay. In such an instance, the aggrieved party may pursue the remedy of a common law non pros which exits independently of termination under Rule 230.2. ?7 ? tJ h? t _ f °J ~ 4 1..e A..D