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HomeMy WebLinkAbout14-3081 r, a Supreme Courf—ofTennsylvania h� Cour `Uf Commo 'Tleas For Prothonotary Use Only: CiVivCover,Sheet F {, Docket No: Curii6erlarid" County ¢ The information collected on this form is, used solely for court administrcttiort purposes. This form does not supplement or replace the filing and service of pleadings or other papers as required by lain or rules of court. Commencement of Action: S 0 Complaint 0 Writ of Summons Petition Transfer from Another Jurisdiction Q Declaration of Taking E C Lead Plaintiff's Name: Lead Defendant's Name: T Cornerstone Federal Credit Union Stephen W. Bailey Are money damages requested? Yes Q No Dollar Amount Requested: Elwithin arbitration limits I (check one) ©x outside arbitration limits 0 N Is this a Class Action Suit? Yes S No Is this an MDJAppeal? Q Yes [E No A Name of Plaintiff/Appellant's Attorney: Christopher E. Rice, Esquire/Martson Law Offices 0 Check here if you have no attorney(are a Self-Represented [Pro Sel I.,itigant) Nature of the Case: Place an"X"to the left of the ONE case category that most accurately describes your PRIMARY CASE. If you are making more than one type of claim, check the one that you consider most important. TORT(do not include Mass Tort) CONTRACT(do not include Judgments) CIVIL APPEALS El Intentional } Buyer Plaintiff Administrative Agencies El Malicious Prosecution El Debt Collection:Credit Card El Board of Assessment E] Motor Vehicle Ci Debt Collection:Other F1 Board of Elections E] Nuisance E] Dept.of Transportation 0 Premises Liability L❑_ Statutory Appeal:Other S Product Liability(does not include 0 Employment Dispute: Emass tort) Q Slander/Libel/Defamation Discrimination C E3 Other: Employment Dispute:Other El Zoning Board T Q Other: I Q Other: O MASS TORT [3 Asbestos N p Tobacco Q Toxic Tort-DES Q Toxic Tort-Implant REAL PROPERTY MISCELLANEOUS Toxic Waste Ejectment Other: [3Jectment � Common Law/Statutory Arbitration B El Eminent Domain/Condemnation Declaratory Judgment El Ground Rent Mandamus F-11 Landlord/Tenant Dispute Non-Domestic Relations Mortgage Foreclosure:Residential Restraining Order PROFESSIONAL LIABLITY El Mortgage Foreclosure:Commercial 11 Quo Warranto n Dental 0 Partition 0 Replevin Legal 0 Quiet Title 0 Other: Medical Other: r1 Other Professional: Updated 111/1011 L T ?L r'rio 1 101,10 TAuRY Christopher E. Rice, Esquire Attorney I.D.No. 90916 E" %t'— (-2 P,X 10: 12 Aaron S. Haynes, Esquire CU 13ERLAN0 COu,:T Attorney I.D. No. 307746 P E N!N S Y LVA IN I A MARTSON DEARDORFF WILLIAMS OTTO GILROY& FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff CORNERSTONE FEDERAL CREDIT : IN THE COURT OF COMMON PLEAS OF UNION, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff : V. NO. 2014 - 30kl CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant 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 Plaintiffs. 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 REDUCE FEE OR NO FEE: IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD A LAWYER Contact: Cumberland County Bar Association 32 South Bedford Street 103 . Carlisle, Pennsylvania 17013 Telephone (717) 249-3166 i NOTICE REQUIRED UNDER THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. §1601 (AS AMENDED) AND THE PENNSYLVANIA UNFAIR TRADE PRACTICES ACT AND CONSUMER PROTECTION LAW, 73 PA. CON. STAT. ANN. §201, ET SEQ. ("THE ACTS") To the extent the Acts may apply, please be advised of the following: 1. The amount of the original debt is stated in the Complaint attached hereto. 2. The Plaintiff who is named in the attached Complaint is a Creditor to whom the debt is owed. The Creditor's law firm,Martson Deardorff Williams Otto Gilroy&Faller, is filing this Complaint on behalf of the Creditor. 3. The debt described in the Complaint attached hereto and evidenced by the copies of the promissory note will be assumed to be valid by the Creditor's law firm,unless the Debtor(s) (identified as Defendant(s) within), within thirty (30) days after receipt of this notice, disputes, in writing, the validity of the debt or some portion thereof. 4. If the Debtor(s) notifies the Creditor's law firm in writing within thirty days of the receipt of this notice that the debt or any portion thereof is disputed, the Creditor's law firm will obtain verification of the debt and a copy of the verification will be mailed to the Debtor(s) by the Creditor's law firm. 5. If the Creditor who is named as Plaintiff in the attached Complaint is not the original Creditor, and if the Debtor(s) makes written request to the Creditor's law firm within thirty days from the receipt of this notice, the name and address of the original Creditor will be mailed to the Debtor(s)by the Creditor's law firm. 6. Written request should be addressed to: MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER Attn: Christopher E. Rice, Esquire 10 East High Street Carlisle, PA 17013 * THIS DOCUMENT MAY BE CONSTRUED AS AN ATTEMPT TO COLLECT A DEBT FOR THE PLAINTIFF AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. CIF T ,E Pi 0 T i10h0AK- Christopher E. Rice, Esquire r� Attorney I.D. No. 90916 2 �� MIA,S '2 AIi 10' � Aaron S. Haynes, Esquire CUMBERE..AidD COUNTY Attorney I.D. No. 307746 P E N1,415 Y LVA N I A MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff CORNERSTONE FEDERAL CREDIT : IN THE COURT OF COMMON PLEAS OF UNION, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. NO. 2014 - CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant COMPLAINT AND NOW, comes the Plaintiff, CORNERSTONE FEDERAL CREDIT UNION, by and through its attorneys, MARTSON DEARDORFF WILLIAMS OTTO GILROY& FALLER, and files this Complaint in Mortgage Foreclosure upon the following: 1. Plaintiff, Cornerstone Federal Credit Union ("Plaintiff'), is a federally chartered credit union located at 5 East Gate Drive, Carlisle, Pennsylvania 17013. 2. Defendant, Stephen W. Bailey ("Defendant"), is adult individual residing at 932 Allenview Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055-6169. 3. Defendant is the owner of the real property located at 932 Allenview Drive, Mechanicsburg,Cumberland County,Pennsylvania, 17055-6169("Real Property"),and more fully described in a certain deed recorded in the Recorder of Deeds Office of Cumberland County,Book 255, Page 4434, which is subject to the Mortgage described below. 4. On or about July 16, 2010, Defendant and Gloria 1. Dewald executed an Open-End Home Equity Credit Agreement(the "Agreement")with Plaintiff in the amount of$40,000.00. A true and correct copy of the Agreement is attached hereto as Exhibit"A"and is incorporated herein by reference. 5. As security for the performance of his obligations under the Agreement,Defendant, as Mortgagor,made, executed and delivered to Plaintiff, as Mortgagee, a mortgage upon the Real Property (the "First Mortgage"). A true and correct copy of the First Mortgage containing a complete legal description of the Real Property is attached hereto and incorporated as Exhibit`B." 6. On or about September 29, 2010, Defendant and Gloria I. Dewald executed a Promissory Note(the"Note")with Plaintiff in the amount of$165,000.00. A true and correct copy of the Note is attached hereto as Exhibit"C" and is incorporated herein by reference. 7. As security for the performance of his obligations under the Note, Defendant, as Mortgagor, made, executed and delivered to Plaintiff, as Mortgagee, a mortgage upon the Real Property (the "Second Mortgage"). A true and correct copy of the Second Mortgage containing a complete legal description of the Real Property is attached hereto and incorporated as Exhibit"D." 8. The First and Second Mortgages have not been assigned. 9. Defendant is the owner of the Real Property,and Plaintiff knows of no other persons holding an ownership interest in the Real Property. 10. Plaintiff has made demand for payment of all sums due and owing thereunder, but payment has been refused. 11. Plaintiff provided Defendant with notice of the period in which Defendant's default may be cured, but Defendant has failed to cure his default. 12. As authorized under the First and Second Mortgages,the loan obligation to Plaintiff from Defendant has been accelerated. 13. The total sum due and owing from Defendant under the Agreement,as of March 14, 2014, is itemized as follows: Principal: $38,070.00 Late Fees: $15.00 Interest as of March 14, 2014: $196.61 Court Costs and Fees (estimated): $500.00* Attorney Fees: $4,000.00 Total as of March 14, 2014: $42,781.61 Plus interest accruing at$3.39 per day from March 14,2014, until paid in full. *To be determined by the Cumberland County Sheriff. 14. The total sum due and owing from Defendant under the Note,as of March 14,2014, is itemized as follows: Principal: $154,040.96 Late Fees: $0.00 Interest as of March 14, 2014: $3,483.91 Court Costs and Fees (estimated): $500.00* Attorney Fees: $15,000.00 Total as of March 14,2014: $173,024.87 Plus interest accruing at$24.26 per day from March 14,2014,until paid in full. *To be determined by the Cumberland County Sheriff. 15. Plaintiff specifically reserves the right to increase the Court Costs and Fees, and Attorney Fees listed above should additional services be requested and/or costs/charges/fees be incurred as a result of the collection of the money owed and foreclosure of the Real Property. 16. Pursuant to the notice provision of Act 6,41 P.S. §403 (the"Notice"),Plaintiff sent notice of intention to foreclose mortgage and accelerate the loan balance dated April 4, 2014, to Defendant by certified mail, return receipt requested. WHEREFORE,Plaintiff demands judgment against Defendant under the Agreement in the amount of$42,781.61, plus interest from March 14,2014,at the rate of$3.39 per day until the debt is paid in full, and demands judgment against Defendant under the Note in the amount of $173,024.87, plus interest from March 14, 2014, at the rate of$24.26 per day until the debt is paid in full. MARTSON LAW OFFICES By: Christopher E. Rice, Esquire I.D. No. 90916 Aaron S. Haynes, Esquire I.D. No. 307746 Ten East High Street Carlisle, PA 17013-3093 ` (717) 243-3341 Date: / �� , 2014 Attorneys for Plaintiff This is a debt collecting firm attempting to collect a debt for Cornerstone Federal Credit Union. Any information received will be used for that purpose. EXHIBIT "A" �iNU11 - CORNERSTONE HOINEEQWrYSYSTM "I.— -•­ .. P O.eee 1 tet•S Eaa Gah OrM•Cadi,le.m t101s Phi (71 719.1661•Tnll-free:"M.71 ll 11 Open-End Home Equity Credit Agreement F"17M i.9-0iee.wwumenW rtcu cdp and Truth in Lending Disclosure xf_berfovnded—Smiceba d BO ROWER 1 NAME(Please Int) ACCOUNT NUMBER BORROWER 2 NAME(Please PElnt) Arr1111NT NI IEARFR Apo a. � e� G « d BORRO ER 1 AD RESS BORROWER 2 ADDRESS / 3 Vie,, !� C iC S r /7,zS V iec�.l lir (17�CEtuhit.Sbur ,g CREDIT AGREEMENT AND TRUTH IN LENDING DISCLOSURE INTRODUCTION.This LOANLINERe Home Equity Plan Credit Agreement and Truth in 3.JOINT ACCOUNTS.If this is a joint account,each of you must sign this Plan and' Lending Disclosure will be referred to as this"'Plan".This Plan consists of this you will be individually and jointly responsible for the promises you make in this Agreement and the accompanying Addendum which is incorporated into and Agreement,including paying all amounts owed.This means that the credit union can becomes a part of this Credit Agreement and Truth In Lending Disclosure.The words require any one of you to repay all advances plus applicable finance charges,other "you,""your,"and"Borrower"mean each person who signs this Plan.The words applicable charges,and voluntary payment protection costs.Unless the credit union's "we,""us,""our,""Lender,"and"credit union"mean the credit union whose name written policy requires all of you to sign for an advance,each of you authorizes the appears above or anyone to whom the credit union transfers its rights under this Pian, other(s)to obtain advances individually and agrees to repay advances made to the 1. HOW THIS PLAN WORKS. This Plan establishes a revolving line of credit other(s).The credit union can release one of you from responsibility under this Plan account("account").You and the credit union anticipate that you will obtain a series without releasing the other(s). of advances under this Plan from time to time.The maximum amount you can 4. SECURITY INTEREST. This Plan is secured by a mortgage, deed of trust, borrow("credit limit")is disclosed in the Addendum.It is the amount of credit you security deed,or security agreement(the"security instrument"),in your dwelling may borrow,repay all or a portion and re-borrow subject to the terms of this Plan, which is described in the Addendum. 2. PROMISE TO PAY. You promise to repay to the credit union, or order, all 5. PROMISES IN SECURITY INSTRUMENT.The security instrument you sign the advances made to you under this Plan, plus finance charges, other applicable same day you sign this Plan is incorporated by reference into this Plan.You must charges,and costs of voluntary payment protection for which you are responsible keep all the promises you made in the security instrument. under this Plan.You agree to pay the Minimum Payment on or before the due date. (Continued on reverse side.) SIGNATURES By signing below you agree that you have read the LOANLINERe Home Equity Plan this Agreement,and the Home Equity Early Disclosure and handbook entitled"What Credit Agreement and Truth in Lending Disclosure and Addendum and agree to be You Should Know About Home Equity Lines of Credit"given to you at the time of bound by the terms of the Agreement.You also acknowledge receipt of a copy of application. Notice To Vermont Borrowers: NOTICE TO COSIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENT OF THIS LOAN.IF THE BORROWER DOES NOT PAY,THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU. (SEAL) (SEAL) :- BORROWER 1 SIGNATURE q GATE WITNE SIGN RE DATE W (SEAL) J (SEAL)771&_16)J1 BO ROWER 2 SIGNATURE DATE IT IGNATURE DATE ENROLLMENT/ • •R VOLUNTARY PAYMENTPROTECTION CUNA Mutual Insurance Society - Madison,WI 53701-0391 - Phone: 800/937-2644 "You"or"Your"means the member and the joint insured(if applicable). these charges the same as it accrues on amounts of advances which are added to Credit insurance is voluntary and not required in order to obtain your loan.You may your Loan Balance. select any insurer of your choice.You have established an open-end Loan Plan with DO NOT SIGN THIS APPLICATION IF IT CONTAINS ANY BLANK SPACES. This the Credit Union.Your Loan Plan may consist of one or more Loans.You are applying application is void and will not be used in a contest if all blank spaces have not to the Society for credit insurance.You authorize the charges for insurance to bebeen completed,if the member has not signed and dated the Application,and If added to your Loan Balance each month and understand that interest will accrue on the Application has not been witnessed. NOTE: The Insurance you're applying for contains certain terms and exclusions;Refer to your certificate for coverage details. INSURED MEMBER MEMBER'S DATE OF BIRTH ACCOUNT NUMBER DATE OF ISSUE OF THIS CERTIFICATE JOINT INSURED MEMBER JOINT INSURED'S DATE OF BIRTH GROUP POLICY NUMBER SECONDARY BENEFICIARY(if you tic6xe to nate one) 037-1095-0 TME FOLLOWING STATEMENTS MADE BY YOU ARE REPRESENTATIONS AND ARE TRUE TO THE 8EST OF YOUR KNOWLEDGE AND BELIEF: CREDIT LIFE INSURANCE CREDIT DISABILITY INSURANCE YES NO I COVERAGE SELECTED YES NO COVERAGE SELECTED PREMIUM SCHEDULE COST PER$100 SEE SEPARATE SINGLE CREDIT LIFE OF YOUR MONTHLY $.07 SINGLE CREDIT DISABILITY RATE SCHEDULE LOAN BALANCE COST PER$100 ON THIS DATE,ARE YOU PHYSICALLY WORKING FOR A SALARY OR y JOINT CREDIT LIFE OF YOUR MONTHLY $.123 WAGES A MINIMUM OF 25 HOURS A WEEK? LOAN BALANCE ARE YOU MAXIMUM AGEARE YOU MAXIMUM AGE UNDER AGE 65 .? FOR INSURANCE 651 UNDER AGE 65 ? FOR INSURANCE 65- AXIMUM INSURABLE BALANCE -UNDER CREDIT LIFE AND DISABILITY,THE IlillIMUM MONTHLY TOTAL -UNDER CREDIT LIFE AND DISABILITY,THE PER LOAN ACCOUNT MAXIMUM ELIGIBILITY AGE FOR COVERAGE DISABILITY BENEFIT MAXIMUM ELIGIBILITY AGE FOR COVERAGE $ 50.000 IS 65,WITH NO MAXIMUM TERMINATION AGE. $ 850.00 IS 65,WITH NO MAXIMUM TERMINATION AGE. SIGNATURE OF JOINT INSURED MEMBER DATE If you are totally disabled for more than 14 days,then the X disability benefit will begin with the 15th day of disability. WITNESS DATE WITNESS DATE X -la/L1 X X SIG tEOFMEMBER DATE SIGNATURE OF MEMBER DATE (Be aura to check one of the boxes above) (Be aura to check one of the boxes above) APP.611-0786PA APP.801-0786PA , CGUNA TO ORDER: 1800-3560 MUTUAL 912,200(1,01,03,Oa,ALL RIGHTS RESERVED CREDIT UNION COPY - . EST706 EXHIBIT "B" t rQ PREPARED BY: Cornerstone Federal Credit Union OOOCFP WHEN RECORDED, MAIL TO: Cornerstone Federal Credit Union PO Boy 1181 , 5 East Gate Dr. , Carlisle, PA 17013 UNIFORM PARCEL IDENTIFIER: 42-28-2423-230 PREMISES: 932 Allenview Drive Mechanicsburg, Pa 17055 SPACE ABOVE THIS LINE FOR RECORDER'S USE OPEN-END MORTGAGE THIS MORTGAGE SECURES FUTURE ADVANCES THIS MORTGAGE CONTAINS A DUE-ON-SALE PROVISION AND SECURES INDEBTEDNESS UNDER A CREDIT AGREEMENT WHICH PROVIDES FOR A REVOLVING LINE OF CREDIT AND MAY CONTAIN A VARIABLE RATE OF INTEREST. THIS MORTGAGE ("Security Instrument") is made on July 16 , 2010 , The Mortgagor is Stephen W Bailey ("Borrower"). The Mortgagee is r''nrnerstone Federal Credit Union a corporation organized and existing under the laws of The United States of America whose address is PO Box 1181 , 5 East Gate Drive, rarl i sl e, PA 17013 ("Lender"). WHEREAS, Borrower is indebted to Lender as described in this paragraph; TO SECURE to Lender: (1) The repayment of all indebtedness due and to become due under the terms and conditions of the LOANLINERO Home Equity Plan Credit Agreement and Truth-in-Lending Disclosures made by Borrower and dated the same day as this Security Instrument, and all modifications, amendments, extensions and renewals thereof (herein "Credit Agreement"). Lender has agreed to make advances to Borrower under the terms of the Credit Agreement,which advances will be of a revolving nature and may be made, repaid, and remade from time to time. Borrower and Lender contemplate a series of advances to be secured by this Security Instrument. The total outstanding principal balance owing at any one time under the Credit Agreement(not includino finance charges thereon at a rate which may vary from time to time, and any other charges and collection costs which may be owing from time to time under the Credit Areement shall not exceed Forty Thousand Dollars ($ 40 ,6100 -00 ) That sum is referred to herein as the Maximum Principal Balance and referred to in the Credit Agreement as the Credit Limit. On the Final Payment Date, 25 years from the date of this Security Instrument, the entire indebtedness under the Credit Agreement, if not paid earlier, is due and payable. (2) The payment of all other sums advanced in accordance herewith to protect the security of this Security Instrument, with finance charges thereon at a rate which may vary as described in the Credit Agreement. (3) The performance of Borrower's covenants and agreements under this Security Instrument and under the Credit Agreement. BORROWER does hereby mortgage, grant and convey to Lender the following described property located in the County of Cumberland Commonwealth of Pennsylvania: Q CUNA MUTUAL GROUP,1991,2000,04-06,08,ALL RIGHTS RESERVED PACE 1 EPA91 E P which has the address of 932 Allenview Drive, (Street) Mechanicsburg , Pennsylvania 17055 (herein "Property Address"); (City) (Zip Code) TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances and fixtures,all of which shall be deemed to be and remain a part of the property covered by this Security Instrument;and all of the foregoing,together with said property(or the leasehold estate if this Security Instrument is on a leasehold) are hereinafter reforred to as the "Property." Complete if applicable: This Property is part of a condominium project known as This Property includes Borrower's unit and all Borrower's rights in the common elements of the condominium project. This Property is in a Planned Unit Development known as 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 encumbrances of record. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Finance Charges and Other Charges. Borrower shall promptly pay when due all amounts borrowed under the Credit Agreement, all finance charges and applicable other charges and collection costs as provided in the Credit Agreement. 2. Funds for Taxes and Insurance. Subject to applicable law, Lender,at Lender's option, may require Borrower to pay to Lender on the day monthly payments of principal and finance charges are payable under the Credit Agreement, until all sums secured by this Security Instrument are paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments (including condominium and planned unit development assessments, if any) which may attain priority over this Security Instrument,and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance and flood insurance, if applicable, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional Lender. If Borrower pays Funds to Lender,the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Security Instrument that interest on the Funds shall be paid to Borrower,and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower,without charge,an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made.The Funds are pledged as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by Lender,together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the PAGE 2 : amount of the Funds held by Lender shall not be sufficient to pay taxes,assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender may require. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 22 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Credit Agreement and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, second,.(in the order Lender chooses) to any finance charges, other charges and collection costs owing, and third, to the principal balance under the Credit Agreement. 4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this Security Instrument, including Borrower's covenants to make payments when due. Except to the extent that any such charges or impositions are to be paid to Lender under paragraph 2, Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Security Instrument,and leasehold payments or ground rents,if any.Within five days after any demand by Lender, Borrower shall exhibit to Lender receipts showing that all amounts due under this paragraph have been paid when due. 5. Hazard 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," floods, and such other hazards as Lender may require and in such amounts and for such periods as Lender may require. Unless Lender in writing requires otherwise, the policy shall provide insurance on a replacement cost basis in an amount not less than that necessary to comply with any coinsurance percentage stipulated in the hazard insurance policy,and the amount of coverage shall be no less than the Maximum Principal Balance plus the full amount of any lien which has priority over this Security Instrument. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Security Instrument. 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.All insurance proceeds are hereby assigned to Lender and shall be paid to Lender to the extent of all sums secured by this Security Instrument, subject to the terms of any mortgage, deed of trust or security agreement with a lien which has priority over this Security Instrument. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restore or repair the Property, if it is economically feasible to do so. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Security Instrument. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Security Instrument is on a leasehold. If this Security Instrument is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development,the by-laws and regulations of the condominium or planned unit development, and the constituent documents. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,then Lender,at Lender's option, upon notice to Borrower, may make such appearances,disburse such sums, including reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. Any amounts disbursed by Lender pursuant to this paragraph 7, with finance charges thereon, at the rate provided in the Credit Agreement, shall become additional indebtedness of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder. Any action taken by Lender under this paragraph shall not cure any breach Borrower may have committed of any covenant or agreement under this Security Instrument. Borrower agrees that Lender is subrogated to all of the rights and remedies of any prior lienor, to the extent of any payment by Lender to such lienor. PAGE 3 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. 9. Condemnation.The proceeds of any award or claim for damages,direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender,to the extent of any indebtedness under the Credit Agreement, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Security Instrument. 10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 11. Successors and Assigns Bound;Joint and Several Liability; Co-signers. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower, subject to the provisions of paragraph 21 hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Security Instrument, but does not execute the Credit Agreement, (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property to Lender under the terms of this Security Instrument, (b) is not personally liable under the Credit Agreement or under this Security Instrument, and (c) agrees that Lender and any other Borrower hereunder may agree to extend, modify, forbear, or make any other accommodations or amendments with regard to the terms of this Security Instrument or the Credit Agreement,without that Borrower's consent and without releasing that Borrower or modifying this Security Instrument as to that Borrower's interest in the Property. 12. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing such notice by First class mail addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein, and (b) any notice to Lender shall be given by First class mail to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. 13. Governing Law; Severability. The state and local laws applicable to this Security Instrument shall be the laws of the jurisdiction in which the Property is located.The foregoing sentence shall not limit the applicability of Federal law to this Security Instrument. in the event that any provision or clause of this Security Instrument or the Credit Agreement conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Credit Agreement which can be given effect without the conflicting provision, and to this end the provisions of this Security Instrument and the Credit Agreement are declared to be severable. As used herein, "costs," "expenses" and "attorneys'fees" include all sums to the extent not prohibited by applicable law or limited herein. 14. Prior Mortgage or Deed of Trust; Modification; Future Advance. Borrower shall not enter into any agreement with the holder of any mortgage,deed of trust or other security agreement which has priority over this Security Instrument by which that security agreement is modified, amended, extended, or renewed, without the prior written consent of the Lender.Borrower shall neither request nor accept any future advance under a prior mortgage,deed of trust, or other security agreement without the prior written consent of Lender. 15. Borrower's Copy. Borrower shall be furnished a copy of the Credit Agreement and of this Security Instrument at the time of execution or after recordation hereof. 16. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home rehabilitation, improvement, repair, or other loan agreement which Borrower may enter into with Lender. Lender, at Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender,an assignment of any rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in connection with improvements made to the Property. 17. Waiver of Homestead Exemption. To the extent permitted by law, Borrower hereby waives the benefit of the homestead exemption as to all sums secured by this Security Instrument. 18. Waiver of Statutes of Limitation. To the extent permitted by law, Borrower hereby waives statutes of limitation as a defense to any demand or obligation secured by this Security Instrument. 19. Merger. There shall be no merger of the interest or estate created by this Security Instrument with any PAGE 4 other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. 20. Notice of Transfer of the Property; Advances after Transfer. Borrower shall give notice to Lender, as provided in paragraph 12 hereof, prior to any sale or transfer of all or part of the Property or any rights in the Property. Any person to whom all or part of the Property or any right in the Property is sold or transferred also shall be obligated to give notice to Lender, as provided in paragraph 12 hereof, promptly after such transfer. Even if Borrower transfers the Property, Borrower will continue to be obligated under the Credit Agreement and this Security Instrument unless Lender releases Borrower in writing. As a condition to Lender's consent to any proposed transfer or as a condition to the release of Borrower, Lender may require that the person to whom the Property is transferred sign an assumption agreement satisfactory to Lender and Lender may impose an assumption fee. The assumption agreement will not entitle the person signing it to receive advances under the Credit Agreement. 21. Transfer of the Property. Subject to applicable law, Lender shall have the right to accelerate, that is, to demand immediate payment in full of all sums secured by this Mortgage or Deed of Trust, if Borrower, without the written consent of Lender, sells or transfers all or part of the Property or any rights in the Property. If Lender exercises the option to accelerate, Lender shall give Borrower notice of acceleration in accordance with paragraph 12 hereof. The notice shall provide a period of not less than 30 days from the date of the notice within which Borrower may pay the sums declared due. If Borrower fails to pay those sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by paragraph 22 hereof. 22. Default; Termination and Acceleration; Remedies. Each of the following events shall constitute an event of default ("event of default") under this Security Instrument: (1) Borrower commits fraud or makes a material misrepresentation in connection with this Security Instrument or the Credit Agreement;(2)Borrower does not meet the repayment terms of the Credit Agreement; or (3) Borrower's action or inaction adversely affects the Lender's rights in the Property secured by this Security Instrument. If an event of default occurs, then prior to exercising any right or remedy provided for in this Security Instrument and prior to acceleration, Lender shall give notice as provided in paragraph 12 hereof and as required by applicable law.The notice shall specify: (a)the event of default; (b) the action required to cure the event of default; (c) a date not less than thirty days (or any longer period required by applicable law)from the date the notice is given to Borrower by which the event of default must be cured; (d) that failure to cure the event of default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding, and sale of the Property; and (e)any other information required by applicable law. The notice shall further inform Borrower of the right to reinstate after acceleration, if applicable, and the right to assert in the foreclosure proceeding the nonexistence of an event of default or any other defense of Borrower to acceleration and sale. If the event of default is not cured on or before the date specified in the notice, Lender, at Lender's option,without further notice or demand, may declare default, may declare all sums secured by this Security Instrument to be immediately due and payable, and may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph 22, including, but not limited to, reasonable attorneys' fees, and costs of documentary evidence, abstracts and title reports. 23. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to at least one hour before the commencement of bidding at a sheriff's sale or other sale pursuant to this Security Instrument.Those conditions are that Borrower: (a) pays Lender all sums which would then be due under this Security Instrument and the Credit Agreement had no acceleration occurred; (b) cures all other events of default under this Security Instrument and the Credit Agreement; (c) pays all reasonable expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys'fees; and (d)takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the 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 paragraph 21. 24. Release. This Security Instrument secures a revolving line of credit and advances may be made, repaid, and remade from time to time, under the terms of the Credit Agreement. When according to the terms of the Credit Agreement, no more advances will be made, and Borrower has paid all sums secured by this Security Instrument (or earlier if required by applicable law), Lender shall discharge this Security Instrument. To the extent permitted by law, Lender may charge Borrower a fee for such discharge and require Borrower to pay costs of recordation, if any. 25. Interest Rate After Judgment. Borrower agrees that the interest rate payable after a judgment is entered on the Credit Agreement or in an action of mortgage foreclosure shall be the rate explained in the Credit Agreement. PAGE 5 W REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this Security Instrument to give Notice to Lender, at Lender's address set forth on page one of this Security Instrument, of any default under the superior encumbrance and of any sale or other foreclosure action. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any riders(s) executed by Borrower and recorded with it. r X —�'�y �. (Seal) (Seal) Stephen- W. e y Borrower Borrower (Seal) (Seal) Borrower Borrower I hereby certify that the precise address of the Lender (Mortgagee) is: PO Box 1181, 5 East Gate Drive, Carlisle, PA 17013 On behalf of the Lender. By: Elizabeth Leach Title: Loan Officer COMMONWEALTH OF PENNSYLVANIA, Cumberland County ss: On this, the 16th day of July , 2010, before me, Tina M. Reever the undersigned officer, personally appeared Stephen W. Bailey known to me (or satisfactorily proven)to be the person(s) whose name(s) i S 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: `M itle of Officer COMM WEALTH OF PENNSYLVANIA Notarial Seal Tina M.Reever,Notary Public South Middleton Twp.,Cumberland County My Commission Expires Oct 24,2013 Member,Pennsylvania Association of Notaries PAGE 6 BEGINNTNQ at Oe.narrowest corner of Townhouse Plot 3 and going along a line. North 43 degrees 23 minutes East,a distance of 14.46 feet t4 a point common with the southeast corner of Townhouse Plot 1; thence bearing right along a line, North 53 degrees 52 minutes East, a distance of 28.79 feet to a point;thence turning right along a line, 3uulli 36 degrees 08 minutes East,a distance of 85 feet; thence turning right along a line, South 53 degrees 52 minutes West, a distance of 43.01 feet to a point on the easterly boundary of Townhouse Plot 2; thence turning right along a said boundary line, North $5 degrees 08 minutes West, a distance of 82.37 feet to the point of BEGINNING, l ' ROBERT P. ZIEGLER RECORDER OF DEEDS -� CUMBERLAND COUNTY "em 1 COURTHOUSE SQUARE CARLISLE, PA 17013 = �' 717-240-6370 - a : Instrument Number-201019782 Recorded On 7/22/2010 At 11:34:49 AM *Total Pages- 8 *Instrument Type-MORTGAGE Invoice Number-69561 User ID-AF *Mortgagor-BAILY,STEPHEN W *Mortgagee- CORNERSTONE FEDERAL CREDIT UNION *Customer- CORNERSTONE *FEES STATE WRIT TAX $0.50 Certification Page STATE JCS/ACCESS TO $23.50 JUSTICE DO NOT DETACH RECORDING FEES - $17.50 RECORDER OF DEEDS PARCEL CERTIFICATION $10. 00 This page is now part FEES of this legal document. AFFORDABLE HOUSING $11.50 COUNTY ARCHIVES FEE $2.00 ROD ARCHIVES FEE $3.00 TOTAL PAID $68.00 I Certify this to be recorded in Cumberland County PA ap cuMe /D S n ° RECORDER O 7ED X750 *-Information denoted by an asterisk may change during the verification process and may not be reflected on this page. 101CFP III IIIIIIII IIIIIIIIII)III) d � EXHIBIT "C" BORROWER NAME AND ADDRESS LENDER NAME AND ADDRESS LOAN DESCRIPTION Stephen W. Bailey Cornerstone Federal Credit Union Gloria I. Dewald PO Box 1181 5 Eastgate Dr. Number 2- 932 Allenview Dr. Carlisle, PA 17013 AmounIS165,000.00 Mechancisburg, PA 17055 Date 9/27 2010 ❑Refer to the attached Signature Addendum,incorporated herein,for additional Borrowers and their signatures. COMMERCIAL PROMISSORY NOTE DATE, The date of this Promissory Note(Note)is September 29, 2010 GOVF,RNING AGREEMENT. This Note is further governed by the Commercial Loan Agreement between Lender and Borrower dstedSeptember 29, 2010 as modified,amended,or supplemented.All definitions of terms in the Commercial Loan Agreement apply to this Note as well.Upon execution of this Note.Borrower represents that Borrower has reviewed and is in compliance with all Loan Documents and the Commercial Loan Agreement. PROMISE,TO PAY. For value received,Borrower promises to pay Lender or Lender's order,at Lender's address,®s 165,000.00 (Principal). El s (Principal)or the Borrowing Base,whichever is less. ®Single Advance. Borrower will receive all of this Principal in one advance.No additional advances are contemplated under this Note. ❑Multiple Advances. The Principal amount stated above is the maximum amount of Principal that Borrower may borrow under this Note.On Borrower will receive s and future advances are contemplated.The conditions for future advances are stated in the Commercial Loan Agreement. INTEREST. Borrower agrees to pay interest on the outstanding Principal balance of this Note at the rate of 5.75 percent per year until September 29, 2017 Variable Rate. ❑Post MaturityMefauil Interest Borrower agrees to pay interest on the unpaid balance of this Note owing after MATURITY/DEMAND.This Note is a demand note, but if no demand is made this noteMM matures on Septe»Ibe PAYMENT. Borrower a es to ■ this Note a■follows: 29, 2017 We prom se to pay this note on demand, but if no demand is made we will pay this note in 84 monthly payments. This note is amortized over 240 months. We will pay 83 monthly payments of $1,158.58 beginning on October 29, 2010 and on the 29th day of each month thereafter. One final "Baloon Payment" of the entire unpaid balance of principal and ante e. will be due and payable on September 299 2017, All payments must be made in United States dollars. Each payment Borrower makes on this Note will be applied first to any charges Borrower owes other than Principal and interest,then to interest that is due,and finally to Principal that is due. If Lender and Borrower agree to a different application of payments,that application will be described on this Note. The actual amount of Borrower's final payment will depend upon Borrower's payment record. USE OF PROCEEDS: Purchase of Residential Investment Real Estate WAIVERS AND CONSENT. Borrower waives protest,presentment for payment,demand and notices of acceleration,intent to accelerate,and dishonor(if allowed by law). ❑ADDITIONAL TERMS. WARRANT OF AUTHORITY TO CONFESS JUDGMENT.Upon default,in addition to all other remedies and rights available to Lender,by signing below Borrower irrevocably authorizes the prothonotary,clerk,or any attorney to appear in any court of record having jurisdiction over this matter and to confess judgment against Borrower at any time without stay of execution.Borrower waives notice,service of process, and process.Borrower agrees and understands that judgment may be confessed against Borrower for any unpaid principal,accrued interest, and accrued charges due on this Note,plus collection coats and reasonable attorneys'fees up to 15 percent of the judgment.The exercise of the power to confess judgment will not exhaust this warrant of authority to confess judgment and may be done as often as Lender elects.Borrower further understands that Borrower's property may be seized without prior notice to satisfy the debt owed.Borrower knowingly,intentionally, and voluntarily waives any and all constitutional rights Borrower has to pre-deprivation notice and hearing under federal and state laws and fully understand the consequences of this waiver. By signing immediately belgv, I agree to the terms of the CONFESSION OF Jsection. Signature Stephen W. ley Signature Gloria I. Dewald SIGNATURES.By signing below.Borrower agrees to the terms contained in this Note.Borrower also acknowledges receipt of a copy of this Note. BORROWER: Entity Name Entity Name i Signature Stephen W. a ley Date Signature Date Signature Date Signature Date Gloria I. Dewald LENDER: FAdpral r Ait Union Entity Name Signature Nathan g. paViq Date Signature Date GOMMERCIAL PROMISSORY NOTE-PA COMM-NOTEy19/2007 VMPtA Banken Systema^ MP 50a(PA)(07091.00 Walters KI—er Financial Services O 2001,2007 To Reorder Fartn:1.900-552-9410 InxMN: Page t of t ,f : P r , EXHIBIT "D" 001Z1F PREPARED BY: Nathan Davis CFCU WHEN RECORDED, MAIL TO: PO Box 1181 Carlisle, PA 17013 UNIFORM PARCEL IDENTIFIER: 42-28-2423-230 PREMISES: 932 Allenview Drive Mechanicsburg, PA 17055 MORTGAGE THIS MORTGAGE is made this 29th day of September 2010 , between the Mortgagor, Stephen W Bailey (herein "Borrower"), and the Mortgagee, Cornerstone FEderal Credit Union , a corporation organized and existing under the laws of The United States of America whose address is PO Box 1181 5 Eastgate Dr. , Carlisle, PA 17013 (herein "Lender"). WHEREAS, Borrower is indebted to Lender in the principal sum of U.S. $ 165,000.00 which indebtedness is evidenced by Borrower's note dated September 29, 2010 and extensions and renewals thereof (herein "Note"), providing for monthly installments of principal and interest,with the balance of the indebtedness, if not sooner paid, due and payable on September 29, 2017 ; TO SECURE to Lender the repayment of the indebtedness evidenced by the Note, with interest thereon;the payment of all other sums,with interest thereon,advanced in accordance herewith to protect the security of this Mortgage;and the performance of the covenants and agreements of Borrower herein contained, Borrower does hereby mortgage, grant and convey to Lender the following described property located in the County of Cumberland State of Pennsylvania: SEE ATTACHED LEGAL DESCRIPTION which has the address of 932 Allenview Drive Mechanicsburg 17 0 5 5 [street] ]city] Pennsylvania (herein "Property Address"); [zip code] r TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances and rents, all of which shall be deemed to be and remain a part of the property covered by this Mortgage; and all of the foregoing, together with said property (or the leasehold estate if this Mortgage is on a leasehold) are hereinafter referred to as the "Property." PAGE 1 EPA21E 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 covenants that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness evidenced by the Note and late charges as provided in the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments (including condominium and planned unit development assessments, if any) which may attain priority over this Mortgage and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any,all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional Lender. If Borrower pays Funds to Lender,the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes,assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made.The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes,assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender may require. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender,Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof,then to interest payable on the Note, and then to the principal of the Note. 4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges,fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. 5. Hazard 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", flood and such other hazards as Lender may require and in such amounts and for such periods as Lender may require. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. 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. PAGE 2 4 If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,then Lender, at Lenders option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorneys'fees,and take such action as is necessary to protect Lender's interest. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the Note rate, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder. 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. 9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property,or part thereof,or for conveyance in lieu of condemnation,are hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. 10. 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 Mortgage granted by Lender to any successor in interest of Borrower shall not operate to release, in any manner,the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Mortgage by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law,shall not be a waiver of or preclude the exercise of any such right or remedy. 11. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements herein contained shall bind,and the rights hereunder shall inure to,the respective successors and assigns of Lender and Borrower,subject to the provisions of paragraph 16 hereof.All covenants and agreements of Borrower shall be joint and several.Any Borrower who co-signs this Mortgage, but does not execute the Note, (a) is co-signing this Mortgage only to mortgage,grant and convey that Borrower's interest in the Property to Lender under the terms of this Mortgage, (b) is not personally liable on the Note or under this Mortgage,and(c)agrees that.Lender and any other Borrower hereunder may agree to extend, modify,forbear, or make any other accommodations with regard to the terms of this Mortgage or the Note without that Borrower's consent and without releasing that Borrower or modifying this Mortgage as to that Borrower's interest in the Property. 12. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Mortgage shall be given by delivering it or by mailing such notice by First class mail addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein,and (b)any notice to Lender shall be given by First class mail to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Mortgage shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. 13. Governing Law; Severability. The state and local laws applicable to this Mortgage shall be the laws of the jurisdiction in which the Property is located.The foregoing sentence shall not limit the applicability of Federal law to this Mortgage. In the event that any provision or clause of this Mortgage or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage or the Note which can be given effect without the conflicting provision, and to this end the provisions of this Mortgage and the Note are declared to be severable. As used herein, "costs", "expenses"and "attorneys'fees" include all sums to the extent not prohibited by applicable law or limited herein, PAGE 3 y 14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and of this Mortgage at the time of execution or after recordation hereof. 15. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home rehabilitation, improvement, repair, or other loan agreement which Borrower enters into with Lender. Lender, at Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender,an assignment of any rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in connection with improvements made to the Property. 16. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)without Lender's prior written consent, Lender may,at its option, require immediate payment in full of all sums secured by this Mortgage. However,this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Mortgage. 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 delivered or mailed within which Borrower must pay all sums secured by this Mortgage. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Mortgage without further notice or demand on Borrower. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 17. Acceleration;Remedies.Upon Borrower's breach of any covenant or agreement of Borrower in this Mortgage, including the covenants to pay when due any sums secured by this Mortgage, Lender prior to acceleration shall give notice to Borrower as provided by applicable law specifying,among other things:(1)the breach;(2)the action required to cure such breach; (3) a date, not less than 30 days from the date the notice is mailed to Borrower, by which such breach must be cured;and (4)that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Mortgage,foreclosure by judicial proceeding,and sale of the Property.The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the nonexistence of a default or any other defense of Borrower to acceleration and foreclosure. if the breach is not cured on or before the date specified in the notice, Lender, at Lender's option, may declare all of the sums secured by this Mortgage to be immediately due and payable without further demand and may foreclose this Mortgage by judicial proceeding. Lender shall be entitled to collect in such proceeding all expenses of foreclosure, including, but not limited to, reasonable attorneys'fees,and cost of documentary evidence,abstracts and title reports. 18. Borrower's Right to Reinstate.Notwithstanding Lender's acceleration of'the sums secured by this Mortgage due to Borrower's breach, Borrower shall have the right to have any proceedings begun by Lender to enforce this Mortgage discontinued at any time prior to at least one hour before the commencement of bidding at a sheriff's sale or other sale pursuant to this Mortgage if: (a) Borrower pays Lender all sums which would be then due under this Mortgage and the Note had no acceleration occurred; (b) Borrower cures all breaches of any other covenants or agreements of Borrower contained in this Mortgage; (c)Borrower pays all reasonable expenses incurred by Lender in enforcing the covenants and agreements of Borrower contained in this Mortgage, and in enforcing Lender's remedies as provided in paragraph 17 hereof, including, but not limited to, reasonable attorneys' fees; and (d) Borrower takes such action as Lender may reasonably require to assure that the lien of this Mortgage, Lender's interest in the Property and Borrower's obligation to pay the sums secured by this Mortgage shall continue unimpaired. Upon such payment and cure by Borrower, this Mortgage and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. 19. Assignment of Rents; Appointment of Receiver; Lender in Possession. As additional security hereunder, Borrower hereby assigns to Lender the rents of the Property, provided that Borrower shall, prior to acceleration under paragraph 17 hereof or abandonment of the Property, have the right to collect and retain such rents as they become due and payable. Upon acceleration under paragraph 17 hereof or abandonment of the Property, Lender, in person, by agent or by judicially appointed receiver shall be entitled to enter upon,take possession of and manage the Property and to collect the rents of the Property including those past due.All rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bond and reasonable attorneys' fees, and then to the sums secured by this Mortgage. Lender and the receiver shall be liable to account only for those rents actually received. 20. Release. Upon payment of all sums secured by this Mortgage, Lender shall discharge this Mortgage. Borrower shall pay all costs of recordation, if any. Lender may charge Borrower a fee for releasing this Mortgage, if permitted by applicable law. 21. 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 stated in the Note. PAGE4_ a REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this Mortgage to give Notice to Lender, at Lender's address set forth on page one of this Mortgage, of any default under the superior encumbrance and of any sale or other foreclosure action. IN WITNESS WHEREOF, Borrower has executed this Mortgage. (Seal) Stephen W. Ba:1 -Borrower (Seal) —Borrower (Seal) —Borrower (Seal) —Borrower (Sign Original Only) I hereby certify that the precise address of the Lender(Mortgagee) is: PO Box 1181 5 Eastgate Dr. Carlisle, PA 17013 On behalf of the Lender. By: Nathan Davis Title: Finance Officer COMMONWEALTH OF PENNSYLVANIA, -Snvjer County ss: On t�is,the f day of J210 m bL � X10 , before me, (.t.. the undersigned officer, personally appeared 3 � DI.sP/1 9211 known tome or satisfactorily proven)to be the person(s)whose name /5 subscribed to the within ' a instrument and acknowledged that A executed the same for the purposes herein contained. 14 IN WITNESS WHEREOF, I hereunto set my hand and official seal a porno 31 -lY :2"'4118f%Nla�LVANJA YCVANJA ° 6 c �Z� Ili Title of Officer z Woa low This Line Reserved For Lender and Recorder) a� y PAGE 5 J v+, i 1 BEGiNNWO at the northwest corner of Townhouse Plot 3 and going along a line, North 43 degrees 23 minutes East,a distance of 14.46 feet to a point common with the southeast corner of Townhouse Plot 1; thence bearing right along a line, North 53 degrees 52 minutes East,a distance of 28.79 feet to a point;thence turning right along a lint, 8uuth 36 degrees 48 minutes East,a distance of 85 feet; thence turning right along a line, South 53 degrees 52 minutes West, a distance of 43.01 feet to a point on the easterly boundary of Townhouse Plot 2, thence turning right along a said boundary line,North 36 degrees 08 minutes West, a distance of 82.37 feet to the point of BEGINNINQ. w' r-� ROBERT P. ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY ` '. 1 COURTHOUSE SQUARE ` CARLISLE, PA 17013 717-240-6370 Instrument Number-201028052 Recorded On 10/4/2010 At 9:13:23 AM *Total Pages- 7 *Instrument Type-MORTGAGE Invoice Number-73940 User ID -MSW *Mortgagor-BAILY,STEPHEN W *Mortgagee- CORNERSTONE FEDERAL CREDIT UNION *Customer-MADISON SETTLEMENTS *FEES STATE WRIT TAX $0.50 Certification Page STATE JCS/ACCESS TO $23.50 JUSTICE DO NOT DETACH RECORDING FEES - $15.50 RECORDER OF DEEDS This page is now part PARCEL CERTIFICATION $10.00 FEES of this legal document. AFFORDABLE HOUSING $11.50 COUNTY ARCHIVES FEE $2.00 ROD ARCHIVES FEE $3.00 TOTAL PAID $66.00 I Certify this to be recorded in Cumberland County PA ay°�CU ,O RECORDER O D EDS 1780 *-Information denoted by an asterisk may change during r the verification process and may not be reflected on this page. 001Z1F III IIIIIIIIIII IIID I IIIII III c 1 t VERIFICATION as an employee of Cornerstone Federal Credit Union,acknowledge I have the authority to execute this Verification on behalf of Cornerstone Federal Credit Union and certify that the foregoing Complaint in Mortgage Foreclosure is based upon information which has been gathered by my counsel in the preparation of the lawsuit. The language of this document is that of counsel and not my own. I have read the document and to the extent the Complaint based upon information which I have given to my counsel,it is true and correct to the best of my knowledge, information and belief. To the extent the content of the Complaint is that of counsel,I have relied upon counsel in making this Verification. This statement and Verification are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities, which provides that if I knowingly make false averments,I may be subject to criminal penalties. CORNERSTONE FEDERAL CREDIT UNION By: TAUY-cLrLA— FAFILESTlients\13915 Comerstane FCN13915.9 Bailey&0cwald113915.9.CompWnt Foredosurc.wpd Christopher E. Rice, Esquire i 1, 2 2 AMi0,; Attorney I.D. No. 90916 Aaron S. Haynes, Esquire CUMBERLAND C�1�1 �� *I Attorney I.D. No. 307746 PENNSYLVANIA MARTSON DEARDORFF WILLIAMS OTTO GILROY& FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff CORNERSTONE FEDERAL CREDIT : IN THE COURT OF COMMON PLEAS OF UNION, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. NO. 2014 - 309] CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant NOTICE OF RESIDENTIAL MORTGAGE FORECLOSURE DIVERSION PROGRAM You have been served with a foreclosure complaint that could cause you to lose your home. If you own and live in the residential property which is the subject of this foreclosure action,you may be able to participate in a court-supervised conciliation conference in an effort to resolve this matter with your lender. If you do not have a lawyer,you must take the following steps to be eligible for a conciliation conference. First, within twenty(20)days of your receipt of this notice,you must contact MidPenn Legal Services at(717)243-9400 extension 2510 or(800) 822-5288 extension 2510 and request appointment of a legal representative at no charge to you. Once you have been appointed a legal representative,you must promptly meet with that legal representative within twenty(20)days of the 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. Ifyou and your legal representative complete a financial worksheet in the format attached hereto, the legal representative will prepare and file 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 the foreclosure complaint. If you do so and a conciliation conference is scheduled,you will have an opportunity to meet with a representative of your lender in an attempt to work out reasonable arrangements with your lender before the mortgage foreclosure suit proceeds forward. 8 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 Services 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 prepared on your behalf. If you and your lawyer complete a financial worksheet in the format attached hereto, your lawyer will prepare and file 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 the foreclosure complaint. If you do so and a conciliation conference is scheduled,you will have an opportunity to meet with a representative of your lender in an attempt to work out reasonable arrangements with your lender before the mortgage foreclosure suit proceeds forward. IF YOU WISH TO SAVE YOUR HOME,YOU MUST ACT QUICKLY AND TAKE THE STEPS REQUIRED BY THIS NOTICE. THIS PROGRAM IS FREE. Respectfully submitted: C2X z S Christopher E. Rice,Esquire I.D. No. 90916 Aaron S. Haynes, Esquire I.D. No. 307746 Ten East High Street Carlisle, PA 17013-3093 (717) 243-3341 Date: lt4kl 2/ , 2014 Attorneys for Plaintiff Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor SHERIFF'S OFFICE OF CUMBERLAND COUNTY THE PROTHOliTirr. JUN is PM2:5. CUMBERLAND COUNTY PENNSYLVANIA Cornerstone Federal Credit Union vs. Stephen W. Bailey Case Number 2014-3081 SHERIFF'S RETURN OF SERVICE 06/04/2014 08:55 PM - Deputy Amanda Ebersole, being duly sworn according to law, served the requested Complaint in Mortgage Foreclosure by "personally" handing a true copy to a person representing themselves to be the Defendant, to wit: Stephen W. Bailey at 932 Allenview Drive, Upper Allen, Mechanicsburg, PA 17055. SHERIFF COST: $39.79 SO ANSWERS, June 05, 2014 RONNY R ANDERSON, SHERIFF (c) CountySuite Sheriff, Teleesoft, Inc. 7 Christopher E. Rice, Esquire Attorney I.D. No. 90916 Aaron S. Haynes, Esquire Attorney I.D. No. 307746 MARTSON DEARDORFF WILLIAMS MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff HE PRO I HOPO,F`F; 2011; AUG 26 PM 2: 214 CUMBERLAND COUNTY PENNSYLVANIA OTTO GILROY & FALLER CORNERSTONE FEDERAL CREDIT UNION, Plaintiff v. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 2014 - 3081 CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant PLAINTIFF'S MOTION TO LIFT THE STAY AND NOW, comes the Plaintiff, Cornerstone Federal Credit Union, by and through its attorneys, MARTSON LAW OFFICES, and files this Motion to Lift the Stay as follows: 1. Plaintiff, Cornerstone Federal Credit Union ("Plaintiff') is a federally chartered credit union located at 5 East Gate Drive, Carlisle, Cumberland County, Pennsylvania. 2. Defendant, Stephen W. Bailey ("Defendant"), is an adult individual residing at 932 Allenview Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055-6169. 3. On May 22, 2014, Plaintiff filed a Complaint in the above -captioned mortgage foreclosure action and forwarded a copy of the Complaint to the Cumberland County Sheriff for service upon Defendants. 4. The Complaint included a Notice of the Cumberland County Residential Mortgage Foreclosure Diversion Program as well as the Financial Worksheets. (See Complaint). 5. According to the Sheriff's Return of Service attached hereto and incorporated herein as Exhibit "A," Defendant Stephen W. Bailey was served with the Complaint on June 4, 2014. 6. Per Administrative Order dated February 28, 2012, a 60 day Automatic Stay is placed on all residential mortgage foreclosure actions in Cumberland County. 7. In order to participate in the Cumberland County Mortgage Diversion Program, Defendant was required to file a Request for Conciliation Conference within 60 days of the date of service of the Complaint. Said 60 day deadline expired on August 3, 2014. 8. Upon information and belief, Defendant has not filed a Request for Conciliation Conference in this matter and has not opted into the Diversion Program. 9. No Judge has previously ruled in this matter. 10. Plaintiff has written to Defendant requesting concurrence in this motion. Defendant has not responded and therefore, Plaintiff presumes Defendant does not concur. WHEREFORE, Plaintiff requests this Court issue an Order lifting the Stay in this matter. Date: g —24. -/z( MARTSON LAW OFFICES C 2� Christopher E. Rice, Esquire I.D. No. 90916 Aaron S. Haynes, Esquire I.D. No. 307746 Ten East High Street Carlisle, PA 17013-3093 (717) 243-3341 Attorneys for Plaintiff This is a debt collecting firm attempting to collect a debt for Cornerstone Federal Credit Union. And any information obtained will be used for that purpose. EXHIBIT "A" • SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriffi;)F THE PROTHON01 , ow o{ climb.rpt Jody S Smith4,4 0, :17-.`L 2[114 JUN 1 0 PM 2: 5 1. Chief Deputy igiSf="P Richard W Stewart CUMBERLAND COUNTY Solicitor oFricE OF rIE s-HER,,p PENNSYLVANIA Cornerstone Federal Credit Union vs. 2014-3081 Stephen W. Bailey Case Number SHERIFF'S RETURN OF SERVICE 06/04/2014 08:55 PM - Deputy Amanda Ebersole, being duly sworn according to law, served the requested Complaint in Mortgage Foreclosure by "personally" handing a true copy to a person representing • themselves to be the Defendant, to wit: Stephen W. Bailey at 932 Allenview Drive, Upper Allen, Mechanicsburg, PA 17055. SHERIFF COST: $39.79 June 05, 2014 (c) CountySuito Snentl, Tolnoceit. Inc. !,*41 tLJ1. li_o).41 4 AMANDA EBERSOLE, DEPUTY SO ANSWERS, RONNY R ANDERSON, SHERIFF CERTIFICATE OF SERVICE I, Mary M. Price, an authorized agent for Martson Deardorff Williams Otto Gilroy & Faller hereby certify that a copy of the foregoing Motion to Lift the Stay was served this date by depositing same in the Post Office at Carlisle, Pennsylvania, first class mail, postage prepared, addressed as follows; Mr. Stephen W. Bailey 932 Allenview Drive Mechanicsburg, PA 17055 MARTSON LAW OFFICES By: Date: ay,U f 1V. (14t,Quet; Ma . Price 10 Ea High Street Carlisle, PA 17013 (717) 243-3341 i CORNERSTONE FEDERAL CREDIT : IN THE COURT OF COMMON PLEAS OF UNION, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. NO. 2014 - 3081 CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant ORDER AND NOW, this Z$' day of August, 2014, upon consideration of Plaintiff's Motion to Lift the Stay,it appearing that Defendant has not opted in to the Cumberland County Residential Mortgage Foreclosure Diversion Program by filing a Request for Conciliation Conference within 60 days of the date of service upon him of the Complaint in this action,and it further appearing that the 60 day deadline to file the said Request has expired, said Motion is hereby granted and it is Ordered that the Stay is hereby lifted. BY THE COURT J. Di ibution• hristopher E. Rice, Esquire MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 Counsel for Plaintiff r. Stephen W. Bailey ca c:` 932 Allenview Drive Mechanicsburg, PA 17055 Pro Se 0131 ;ES fla,I,&CL G -2 Christopher E. Rice, Esquire Attorney I.D. No. 90916 Aaron S. Haynes, Esquire Attorney I.D. No. 307746 MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff CORNERSTONE FEDERAL CREDIT : IN THE COURT OF COMMON PLEAS OF UNION, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v. : NO. 2014 - 3081 CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant TO: STEPHEN W. BAILEY: NOTICE OF ENTRY OF DEFAULT JUDGMENT You are hereby notified that on the /6 day of , 2014, the following Judgment was entered against you in the above -captioned action: judgment in the amount of $42,781.61, plus interest from March 14, 2014, at the rate of $3.39 per day until the debt is paid in full, along with any additional costs or attorney fees incurred thereafter, for failure to file an Answer to Plaintiffs Complaint. Date: 9///6 I hereby certify that the name and address of the proper person to receive this notice under Pa. R. Civ. P. 236 is: Stephen W. Bailey 932 Allenview Drive Mechanicsburg, PA 17055 F: \FILES \ Clients\ 13915 Cornerstone FCLA13915.9 Bailey & Dewald \ 13915.9.Bailey.Praccipe for default.wpd Christopher E. Rice, Esquire Attorney I.D. No. 90916 Aaron S. Haynes, Esquire Attorney I.D. No. 307746 MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff :THE PROTHONO 20111SEP 16 P1 8: 22 CUMBERLAND COUNTY PENNSYLVANIA CORNERSTONE FEDERAL CREDIT : IN THE COURT OF COMMON PLEAS OF UNION, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v. STEPHEN W. BAILEY, Defendant : NO. 2014 - 3081 CIVILTERM : IN MORTGAGE FORECLOSURE PRAECIPE TO THE PROTHONOTARY: Please enter default judgment in the above -captioned action in favor of Plaintiff and against Defendant Stephen W. Bailey in the amount of $42,781.61, plus interest from March 14, 2014, at the rate of $3.39 per day until the debt is paid in full, along with any additional costs or attorney fees incurred thereafter, for failure to file an Answer to Plaintiffs Complaint. I do hereby certify that written notice of intention to file this Praecipe was mailed to Defendant on September 2, 2014, which date is subsequent to the date default occurred and at least ten (10) days prior to the date of the Praecipe. MARTSON LAW OFFICES Dated: By: Christopher E. Rice, Esquire ID. Number 90916 Aaron S. Haynes, Esquire I.D. No, 307746 Ten East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff Christopher E. Rice, Esquire Attorney I.D. No. 90916 Aaron S. Haynes, Esquire Attorney I.D. No. 307746 MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff CORNERSTONE FEDERAL CREDIT : IN THE COURT OF COMMON PLEAS OF UNION, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v. : NO. 2014 - 3081 CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant IMPORTANT NOTICE TO: STEPHEN W. BAILEY Date of Notice: September 2, 2014 932 Allenview Drive, Mechanicsburg, PA 17055 YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. 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 Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 Telephone (717) 249-3166 MARTSON LAW OFFICES By: 4 C ✓� Christopher E. Rice, Esquire This is a debt collecting firm attempting to collect a debt for Cornerstone Federal Credit Union. Any information obtained will be used for that purpose. Christopher E. Rice, Esquire Attorney I.D. No. 90916 Aaron S. Haynes, Esquire Attorney I.D. No. 307746 MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff CORNERSTONE FEDERAL CREDIT UNION, Plaintiff v. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 2014 - 3081 CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant AFFIDAVIT AS TO MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA :SS. COUNTY OF CUMBERLAND Christopher E. Rice, Esquire, being duly sworn according to law, deposes and says that he has authority to make this affidavit on behalf of his client, and to the best of his knowledge, information and belief, Defendant Stephen W. Bailey, above named is not in the military service of the United States of America, that he has knowledge that the said Defendant's last known address is: 932 Allenview Drive, Mechanicsburg, Cumberland County, Pennsylvania 17055. Said Defendant's place of employment is unknown. Sworn to and subscribed before me this j27L day of September, 2014. 04 4 CiL- hristopher E. Rice, Esquire EALTH OF PENNSYLV. Notarial Seal Mary M. Price, Notary Public Cirlisie Boro, Cumberland County My Commission Expires Aug. 18, 2015 MOMIL,X144W—yArtm ASSOCIMIGN OF NOTARIES Christopher E. Rice, Esquire Attorney I.D. No. 90916 Aaron S. Haynes, Esquire Attorney I.D. No. 307746 MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER MARTSON LAW OFFICES 10 East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Plaintiff CORNERSTONE FEDERAL CREDIT UNION, Plaintiff : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 2014 - 3081 CIVIL TERM STEPHEN W. BAILEY, : IN MORTGAGE FORECLOSURE Defendant COMMONWEALTH OF PENNSYLVANIA : SS COUNTY OF CUMBERLAND) Christopher E. Rice, Esquire, being duly sworn according to law, deposes and says that he is an employee of MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER, attorneys for the Plaintiff in the above captioned matter and that pursuant to the provisions of the Pennsylvania Rules of Civil Procedure, a notice of intention to enter default judgment against Defendant was given to him by mail on September 2, 2014. Sworn o and subscribed before me this day of September, 2014. Christopher E. Rice, Esquire COMMONWEALTH OF PENNSYLVANIA Notarial Seal Mary M. Price, Notary Public Carlisle Boro, Cumberland County MyCommission Expires Aug. 18, 2015 MEMFIER$ PENNSYLVANIA ASSOCIATION Of NOTARIES CERTIFICATE OF SERVICE I, Mary M. Price, an authorized agent of MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER, hereby certify that a copy of the foregoing Praecipe was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Stephen W. Bailey 932 Allenview Drive Mechanicsburg, PA 17055 MARTSON LAW OFFICES By . Price 10 East High Street Carlisle, PA 17013 Dated: This is a debt collecting firm attempting to collect a debt for Cornerstone Federal Credit Union. Any information obtained will be used for that purpose.