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Claim by Wells Fargo v CityIN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY WELLS FARGO BANK, NATIONAL ASSOCIATION AS TRUSTEE, Plaintiff, vs RONDA GARNER, SPOUSE OF RONDA GARNER, CITY OF DUBUQUE, AND PARTIES IN POSSESSION, Defendants. CASE NO. p 13 ~~ E~ ~~ ~ q ~ ~ 3S ORIGINAL NOTICE TO THE ABOVE-NAMED DEFENDANT(S): City of Dubuque You are notified that a Petition has been filed in the office of the Clerk of this Court, naming you as a Defendant in this action. A copy of the Petition (and any documents filed with them) are attached to this notice. The attorney for the Plaintiff is Brian G. Sayer of the law firm of Dunakey & Klatt, P.C., whose address is 531 Commercial, Suite 700, P.O. Box 2363, Waterloo, Iowa 50704. That attorney's phone number is (319) 232-3304; facsimile number (319) 232-3639. You must serve a motion or answer within 20 days after service of this Original Notice upon you and, within a reasonable time thereafter, file your motion or answer with the Clerk of Court for Dubuque County, at the Dubuque County Courthouse, in Dubuque, Iowa. If you do not, judgment by default may be rendered against you for the relief demanded in the petition. If you require the assistance of auxiliary aids or services to participate in court because of a disability, immediately call your district ADA coordinator (563) 589-4433. (If you are hearing impaired call Relay Iowa TTY (800) 735-2942). ~"'' Clerk of Court Dubuque County Courthouse Dubuque, Iowa IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS. bl '~~h~ rgC1Q ~1S ='1 wd i z i~t1C LO ~~ a~ni~~~z~ IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY WELLS FARGO BANK, NATIONAL ASSOCIATION AS TRUSTEE, Plaintiff, vs RONDA GARNER, SPOUSE OF RONDA GARNER, CITY OF DUBUQUE, AND PARTIES IN POSSESSION, Defendants. CASE NO.d ~,~1 ~ C QCtf@ ~(~ (~ j S FORECLOSURE PETITION ~-, ~.., ",=~, _. r..._ ~ ~~ _ .~ fy .ne! b l rs \, C.~_ ny Y V NOTICE : E` + r, n o ~.- _ THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTI0~1'Hf~' MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL SIX MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS AONE-FAMILY OR TWO- FAMILYDWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE, BUT NOT AONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY. YOU MAY PURCHASE AT THE SALE. COMES NOW the Plaintiff respectfully states to the Court the following as its cause of action against the Defendants: The Plaintiff elects to foreclose without redemption pursuant to Iowa Code Section 654.20. The mortgaged property which is the subject of this action is not used for agricultural purpose. The mortgaged property is cone-family or two- family dwelling. 2. The Plaintiff is a company duly authorized to transact business in the United States of America. 3. The Defendants, Ronda Garner and Spouse of Ronda Garner, may be a married couple and are residents of Dubuque County, Iowa. .,,. ~~. f r~4 -,.~ 4. The Defendant, City of Dubuque, is joined as a party to this action because it may claim some right, title or interest in the property which is the subject to this action including, but not limited to, by virtue of a mortgage recorded as Instrument No. 2006-16213 in the records for Dubuque County. Any right or interest the Defendant may have in and to the property which is the subject of this action is junior and subordinate to the right and interest of the Plaintiff in and to the property. 5. The Defendants, Parties in Possession, are made parties to this cause of action because they may claim some right, title or interest in the property which is the subject of this action. Any right or interest the Defendant may have in and to the property which is the subject of this action is junior and subordinate to the right and interest of the Plaintiff in and to the property. 6. On or about May 22, 2006, the Defendant, Ronda Garner, executed and delivered to New Century Mortgage Corporation, one certain Promissory Note in the principal sum of $70,300.00. A copy of the Note is attached hereto as Exhibit "A" and incorporated herein by this reference. 7. To secure payment of the Note, the Defendant, Ronda Garner, executed and delivered to New Century Mortgage Corporation, one certain Purchase Monev Mort~a~e dated May 22, 2006, which Mortgage was filed on May 31, 2006, as Instrument No. 2006-7986 of the Dubuque County Recorder's Office, upon the following described real estate, to-wit: Lot 66 in Charles Stafford's Addition to the City of Dubuque, Iowa. 8. A copy of the Mortgage together with the Recorder's Certificate thereon is attached hereto as Exhibit "B" and by this reference incorporated herein. 9. Plaintiff is the successor by assignment from New Century Mortgage Corporation. 10. The Mortgage and Note provided that in case of default the holder may declare the entire principal and the interest accrued thereon due and payable and the Mortgage may be foreclosed. 11. The Defendant, Ronda Garner, has failed to pay the principal and interest thereon as provided by the terms of the Note. 12. By reason of the failure to pay the principal and interest, the Plaintiff has elected and does hereby elect in accordance with the terms and conditions of the Note and Mortgage to declare the whole of the Note due and payable forthwith and to exercise its right to enforce payment of the entire Note as provided by the Note and to foreclose the Mortgage given to secure the same. 13. The unpaid balance due on the Note after allowing all credits due to the Defendants is the principal balance of $70,067.33, plus interest to June 14, 2007 in the amount of $2,231.48. Interest accrues on the said sum at the rate of $21.19 per day. 14. In order to commence this foreclosure proceeding the Plaintiff has expended title costs of $200.00 for a Report of Title, in addition to accumulated late charges $183.72 and recoverable balance $119.35, to all which sums the Plaintiff is entitled to a judgment against the property with interest at the rate of 11.05% per annum, costs and accruing costs including but not limited to any and all advances made by the Plaintiff for taxes, insurance, property preservation and other costs between the time of the Foreclosure Decree and the time of Sheriff s Sale, including reasonable attorney's fees. 15. The Plaintiff is the owner and holder of the Note and Mortgage, due demand has been made for payment, and payment has been refused. 16. Under the terms of the Mortgage a receiver may be appointed. 17. The Plaintiff gave a Notice of Right to Cure and more than 30 days have elapsed since the notice was given. A copy of said Notice is attached hereto as Exhibit "C" and incorporated herein by this reference. 18. The Plaintiff hereby waives their right to a deficiency judgment. 19. Under the terms of said Note and Mortgage, the Defendant, Ronda Garner, has agreed to pay attorney's fees and all costs in connection with the proceeding to enforce or foreclose the Mortgage. Attached hereto as Exhibit "D" and incorporated herein by this reference is an Affidavit of Attorney's Fees as required by Iowa Code §625.22 (2005). WHEREFORE, the Plaintiff, prays for judgment in rem against the real estate described above, for the principal balance of $70,067.33, plus interest to June14, 2007 in the amount of $2,231.48. Interest accrues on the said sum at the rate of 11.05% per annum and in the amount of $21.19 per day, for the costs of this action, including Report of Title $200.00, accumulated late charges $183.72, recoverable balance $119.35, plus reasonable attorney's fees and additional sums for continuing the abstract of title or other purposes authorized by said Note and Mortgage and by Iowa law and that said sums be declared a lien upon the premises above described from May 22, 2006, the date of the Plaintiff's mortgage, prior and superior to any right, title, lien or interest of the Defendants or any of them therein; that the Plaintiff's Mortgage be foreclosed; that any right, title, lien or interest of the Defendants or any of them in said property be declared junior and inferior to the lien of Plaintiff's Mortgage; that a special execution issue for the sale of the mortgaged premises or so much thereof as may be necessary to satisfy the judgment including interest, costs and accruing costs including but not limited to any and all advances made by the Plaintiff for taxes, insurance, property preservation and other costs between the time of the Foreclosure Decree and the time of Sheriff's sale, and that from and after said sale under special execution, the right, title, lien or interest of the Defendants in and to the mortgaged premises be forever cut off, barred and foreclosed, and the purchaser at said sale take free and clear of any right, title, lien or interest of the Defendants or any of them. The Plaintiff further prays for a Writ of Possession to be issued under the seal of this Court, directed to the Sheriff of Dubuque County, Iowa, commanding him to put the purchaser at said sale under special execution or a successor in interest in the possession of the premises; and that a receiver be appointed to take charge of the mortgaged premises during the period of foreclosure for the purpose of preserving the mortgaged premises for the benefit of all concerned. The Plaintiff further prays for such other and further relief as the Court may deem just and equitable under the circumstances. Respectfully submitted, DUNAKEY &~~ATT, P C. ~,~ r -~ ~-= /' .; Bri Sayer A 093 531 Commercia ., Ste. 700 P.O. Box 236 Waterloo, IA 50701 319-232-3304 319-232-3639 (fax) Attorney for the Plaintiff • ADJUSTABLE RATE NOTE (LIBOR Six-Month Index (As Publisbed In The Wall Street Journal -Rate Caps) THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. May 22, 2006 Dubuque Iowa [Datej [Ciryj [State] 2622 QUEEN STREET, Dubuque, IA 52001- [Properry Address] EXHIBIT I. BORROWER'S PROMISE TO PAY In return for a loan that I have received, 1 promise to pay U.S. $ 70, 300.00 (this amount is called "Principal"), plus interest, to the order of Lender. Lender is New Century Mortgage Corporation I will make all payments under this Note in the form of cash, check or money order. l understand that Lender may transfer this Note. 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 it .050 %. The interest rate I will pay may change in accordance with Section 4 of this Note. The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any default described in Section 7(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay princ[pal and interest by malting a payment every month. I will make my monthly payments on the first day of each month beginning on July 1, 2006 I will make these payments every month until j have paid all of the principal and interest and any other chazges 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 06/01/2036 , I 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 16400 Von Karman, Suite 1000, Irvine, CA 92612 or at a different place if required by the Note Holder. (B) Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S. $ 672.15 .This amount may change. (C)'Monthly Payment Changes Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will deternune my new interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note. 1007961949 MULTISTATE ADJUSTABLE RATE NOTE -LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THEWRLL STREET JOURNAL) - Single Family - Fannie Mae UNIFORM INSTRUMENT ®-838N (o2to) Form 3520 1101 VM P M OaTGAGE FOPod S • (800)521-72 91 Papa t of a Infllala: ~r~u~N~a'u ~ • 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate 1 will pay may change on the fast day of June, 2008 ,and on that day every 6th month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "index" is the average of interbank offered rates for six month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street .Iournal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current index." if the Index is no longer available, the Note Holder will choose a new index that is based upon compazable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Six And Five Hundredth (sl percentage points ( 6.050 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%}. Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that i am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation wilt be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 12.550 or less than 11.050%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than One And One-half percentage point{s) { 1.500 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 18.050 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (~ Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. S. 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 this Note. I may make a full Prepayment or partial Prepayments without paying any 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 this Note. If I make a partial Prepayment, there will be no changes in the due dates of my monthly payments unless the Note Holder agrees in writing to those changes. My partial Prepayment may reduce the amount of my monthly payments after the first Change Date following my partial Prepayment. However, any reduction due to my partial Prepayment may be offset by an interest rate increase. 6. 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 changes 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 that 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. 1007961949 Fonn 3520 1101 ~-836N (02to) vap•s ot4 Initids: ® , t • ?. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of fifteen calendar days after the date it is due, [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 If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal that has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if 1 am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Unless the Note Holder requires a different method, any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if 1 am given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantors surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 10. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jwisdictions. In addition to the protections given to the Note ,Holder under this Note, a Mortgage, Deed of Trust, or Secwity Deed (the "Secwity Instrument"), dated the same date as this Note, protects the Note Holder from possible losses that might result if I do not keep the promises that I make in this Note. That Secwity Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions read as follows: 1007961949 FOrm 3520 1101 ~638N (0210) Paps 3 011 Initiak: f • Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender' s prior written wnsent, Lender may require immediate payment in full of all sums secwed by this Secwity Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender' s secwity will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and 'in this Secwity Instrument. Borrower will continue to be obligated under the Note and this Secwity Instrument unless Lender releases Borrower in writing. 'If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section I S within which Borrower must pay all sums secwed by this Secwity Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Secwity Instrument without further notice or demand on Borrower. WITNESS TILE HAND(S) AND SEAL(S) OF THE UNDERSIGNED RONDA'GARNER -Borrower - (Seal) -Borrower - (Seal) -Horrowcr (Seal) -Borrower -(mil) -Borrower -(Seal) -Borrower - (Seal) -Borrower -(Seal) -Borrower (Sign Original Onlyj 1007961949 ~$38N ~ozro~ Pays ~ of 1 . ~ [Space Above Thin Line For Recording Prepared By; ~,l (~(~~~ ~~ Neer Century Mortgage Corporation 18400 Von Rarman, Ste 1000 Zrvine, CA 92612 800-967-7623 Return To: ~5~~ Ne,v Centur Mortgage Corporation AFTERRECOROINGRETIlRNTO~ l as o o von arman , ate l o 0o ALL-AMERICAN ESCROW >3~ TITLE SERV{CES Zrvine, 92612 4855 East State~reei Full Lega) Description located on page 16 ROdcford, IL611Q8 Lender Name located on page 2. MORTGAGE DEFINITIONS Words used in multiple sections of this document aze defined below and other words are defined in Sections 3, l 1, 13, 18, 20 and 2I. 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 May 22, 2006 , together with all Riders to this document. (B) "Borrower" is RONDA GARNER, 0. Si n9 le ~X'SOn Borrower is the mortgagor under this Security Instrument. IOWA-Single Family-Fannie Mae/Freddle Mac UNIR~RM INSTRUMENT PaOe 1 of 75 Initlals: VMPMortgaye Solutbns (80Q~2t-7291 I~Y~A~~RI~~~~~W91N~~IU~~~~~~N11 Recorded: 05/31%200B2atT12e30~35 Ph Fee Amt: $102.00 Page 1 of 20 Dubuque County Iona Kathy Flynn Thurlou Recorder F11e2006_00007986 EXHIBIT :>,~ s 1007951949 Fonn 301fi t/ 0. ~~~ - ~uzrc- (C) "Lender" is New Century Mortgage Corporation Lender is a Corporation organized and existing under the laws of California Lender's address is 18400 Von Karmen, Suite 1000, Irvine, CA 92612 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated May 22, 2006 The Note states that Borrower owes Lender SEVENTY THOUSAND THREE HUNDRED AND 00/100 Dollars (U.S. $ 70, 300.00 )plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than 06/01/2036 . (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 ^ 1-4 Family Rider ^ VA Rider ^ Biweekly Payment Rider ®Other(s) [specify] Arm Rider Addendum (II) "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. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that aze imposed on Borrower or the Property by a condominium association, homeowners association or similaz organization. (,n "FJectronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similaz 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. (K) "Escrow Items" means those items that are described in Section 3. (L) "lgiscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third parry (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. (~1~ "1~Iortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (,Y) "Periodic Payment" means the regulazly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. / 1007961949 Initials: (~-~ -6(IA) (oso5).ot Pie 2 of 75 Form 3016 7101 (O) "RESPA" means the Real Estate Settlement Procedures Act (I2 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same 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 irrevocably mortgages, grants and conveys to Lender, with power of sale, the following described property located in the County of Dubuque [Type of Recording Jurisdicrion] [Dame of Recording Jurisdiction] See Legal Description Attached Hereto and Made a Part Hereof Parcel ID Number: 10-13-402-001 2622 QIIEEN STREET Dubuque ("Property Address"): which currently has the address of [Strect] (City), Iowa 52001- (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. Alt 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 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 alt 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. /J 10079fi1949 i~~~,: y -&(IAl (oaos>.ot Pie 3 of 15 Forth 3n16 1101 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 insuff cient 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. 1. Application of Payments or Proceeds. Except as otherwise described in this Section 2, alt payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may 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 principa! 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 !/ 1007951949 inltiels:~ j~ ~ -6t~+1 Loans}Ot Pqe 4 0(S 5 Form 3U16 t~a~ Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive 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 be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such 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 alt 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 shalt be held in an institution whose deposits aze 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 chazge, 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, 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, chazges, 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 disehazge 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 1007961949 Inilisls: lr~ -6(IA}(0405J.Oi P~eSor i5 Form3018 1101 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 cone-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 an 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 requues 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 similaz changes occur which reasonably might affect such determination or certification. Borro~~er 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, hazed 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. 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 standazd 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 tv the insurance cazrier 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 1007961949 i~~ua~s: ® ~6(kAl (oao5l.ot Pie B d 7 5 Forth 3016 1101 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 Lendet that the insurance carver 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 aze 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 yeaz 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 snail 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 shal} be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shat) give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Apptication. 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 Iaterest 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 1007961949 Initials: -6(tA) caaosl.os P~erwts Forrts 3016 tf01 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 secwing 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 Secwity 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 disbwsement 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 Inswance in effeM. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage inswer that previously provided such insurance and Borrower was required to make sepazately designated payments toward the premiums for Mortgage Inswance, 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 inswer selected by Lender. If substantially equivalent Mortgage Inswance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated pa,ments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as anon-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 inswer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Inswance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Inswance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide anon-refundable loss reserve, until Lender's requirement for Mortgage Inswance ends in accordance with any written agreement between Borrower and Lender providing far 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 reimbwses 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 Inswance. Mortgage insurers evaluate their total risk on all such inswance 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 an terms and conditions that are satisfactory to the mortgage inswer 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 inswer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any pwchaser of the Note, another inswer, any reinswer, any other entity, or any affiliate of any of the foregoing, may receive (directly or induectty) 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 inswer's risk, or reducing losses. If such agreement 1007961949 IniUalx -6(IA} (0405).0 Pie B of 75 Fomt 3016 1101 provides that an affiliate of Lender takes a share of the inswer'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 ogre 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 ]998 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, andJor to receive a refund of any vfortgage 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 secwity 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 Secwity Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shalt 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 sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Bo~trower and Lender otherwise agree in writing, the sums secured by this Secwity Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Bon:ower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Secwity 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 forfeitwe 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 Secwity Instrument. The proceeds of 1007961949 Initia is: l>" -6(IAl (0405).01 Pg~e B of 15 Forth 3016 lint any award or claim for damages that aze attributable to the impairment of Lender' s interest in the Property are hereby assigned and shall be paid to Lender. All vliscellaneous 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 Leader to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to gay 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 righu and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14.. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting 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 regazd 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 chazge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a taw 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 chazge 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 frrst class mai! 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 fast class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in ( _ 100?96i949 Initla ls: tf -6(IA) (oa05).ot Pia 10 of 15 Form 3016 1101 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 be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security 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) eatry 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 of more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's cheek or cashier's check, provided any such check is drawn upon an institution whose deposits aze 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 Vote; 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 1007961949 m~c~is: v-~ ® -6(IA) (oaos~.oi Pie 11 of 16 Fomt 301fi 11 01 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 individuat litigant or the member of a class) that azises 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 I S) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. Zl. 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. Bcarower 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. Harrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any En~lronmental 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, dischazge, 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 far an Environmental Cleanup. 1007961949 imimt~: ~~(IA) {onast.o~ Pie 72 0~ 15 Forth 3016 1101 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). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the 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. The notice 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 on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demsad 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, reasonable attorneys' fees and costs of title e~~dence. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. 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 relinquishes ail right of dower and waives all right of homestead and distributive share in and to the Property. Borrower waives any right of exemption as to the Property. 25. HOMESTEAD EXEMPTION WAIVER I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AIVD EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAL~ASED UPON THIS vIORTGAGE. 1 ~ ~~~ - v / Borrower RONDA G R Dat Borrower Date Horrower Date Borrower Dace Borrower Date Bcarower Date Borrower Date Borrower Date 1007961949 -6(lA) tosos).ot Pege 13 of 15 Form 3016 1Il)t 26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any foreclosure proceeding any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 6 months. If the court finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 shalt be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. I1~ORTA~YT: READ BEFORE SIGNING. THE TERl4S OF TIIIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT 1ZAY BE LEGALLY ENFORCEll. YOU .1gAY CHANGE THE TERMS OF TRIS AGREE~NT ONLY BY A~~10THER WRITTEN AGREEMENT. BY SIGNING BELObV, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Harrower and recorded with it. Witnesses: ,,- ~ ~ /.~'r~ ~- c...en- (Seal) ~~ m~(~ l..e~ ~! G(jt~ RO A GARNER -Borrower _ (Seal) -Borrower _ (Seal) -Borrower _ (Seal) -Borrower (Seal) -Borrower (Seal) -Harrower (Seal) -Borrower (Seal) -Borrower 1007961949 -6(IA1 (aos).ot v~etsorts Form 3416 11Q1 ~. STATE OF IOWA, "'~` bu~`t::ounty ss: On this ~~ day of mGi, y ~ ~ZQQ(o ,before me, a Notary Public in the State of Iowa, peroosonally appeared f1~r1G~ 0. ~t' n~~ to me personally known to be the personf~ named in and who executed the foregoing instrument, and acknowledged that h~t-hay executed the same as lt~ei~ voluntary act and deed. VIy Commission Expires:.~l~l~ ~\~~ //f ``\\\\~~~ ~ 8~ ~4r~~////' \o~ary Public in and far said County and State +~ I~ i a o ~'' i~= -_ 2 y ~' ~~ ~• O1 :,syq~ ~~~ \~`\ 1007961999 Inltlals• -b(1111 (04U5}01 Pie l5 01 IS Fo[m 3t)1li 1/Qi Y Legal Description Lot 66 in Charles Stafford's Addition to the City of Dubuque, Iowa, according to the recorded Plat thereof. Situated in Dubuque County, Iowa. l~ ADJUSTABLE RATE RIDER (LIBOR Siz-l~lonth Index (As Published In The Wall Street Journal) -Rate Caps) THIS ADJUSTABLE RATE RDER is made this 22nd day of tray, 2006 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to New Century Mortgage Corporation ("Lender") of the same date and covering the property described in the Security Instrument and located at: 2622 QUEEN STREET, Dubuque, IA 52001- (Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrowe r and Lender further covenant and agree as follows A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 11.050 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST R~'E AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I wil I pay may change on the first day of June, 2008 and on that day every 6th month thereafter. Each date on whic h my interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for six month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in whic h the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder wi-I give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Six And give Hundredth(s) percentage points ( 6.050 %) to the Current Index. The Note Holder will then round the result of 1007961949 MULTISTATE ADJUSTABLE RATE RIDER -LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREETJOURNAL -Single Family -Fannie Mae Un~onn Instrument - -83 8R (040 2) Form 3 1101 Page 1 of 3 Initials: VMP Mortgage Solutions, I c. (80 0)521 -7291 r this addition to the nearest one-eighth of one percentage point (0.12 5%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation wil I be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 12.550 % or less than 11.050 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one And one-half percentage points ( 1.500 %) from the rate of interest I have been paying for the preceding 6 months. M y int Brest rate will never be greater than 1s .050 %. E) Effective Date of Changes y new interest rate wilt become effective on each Change Date. I wi II pay the amount of my new monthly pa ment beginning on the first monthly payment date after the Change Date until the amount o~ my monthly payment changes again. (F) Notion of Changes The Note Holder wi I deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be ~iven to me and also the title and telephone number of a person who-will a newer any question may have regarding t he notice. B. TRANSFER CF THE i~ROPERTY OR A BENEFCIAL INTEREST N BORROWER Uniform Covenant 18 of the Security instrument is amended to read as follows Transfer of the Property or a Beneficial interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. 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 Eransferred) wit hout Lenders prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shalt not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evalfuate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security wi II not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender, To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep ail the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. 10079fi1949 Initialsl~ ~-838R (040 Z) Page 2 of 3 Form 3138 1/01 r, If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. if Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security {nstrument wit hout further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained m Adjustable Rate Rider. (Seal) (Seal) Rot~TDA GARNER -Borrowe r -Borrowe r (Seal) -Borrowe r (Sea!) -Borrowe r (Seal) -Borrowe r ~-83 8R (040 2) Page 3 of 3 (Seal) -Borrowe r _ (Seal) -Borrowe r (Seal) -Borrowe r 1007961949 Fomn 3138 1101 ~ T ADJUSTABLE RATE RIDER ADDENDUM (Libor Index -Rate Caps) This Adjustable Rate Rider Addendum is made this 22nd day of May 2006 and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "Note") and Mortgage, Deed of Trust or Security Deed (the "Secwity Instrument") and Adjustable Rate Rider (the "Rider") of the same date given by the undersigned (the "Borrower") to secure repayment of Borrower's Note to New Cerrtury Mortgage Corporation (the "Lender"). Property securing repayment of the Note is described in the Security Instrument and located at: 2622 QUEEN STREET, Dubuque, IA 52001- (Property Address) To the extent that the provisions of this Adjustable Rate Rider Addendum are inconsistent with the provisions of the Note and/or Security Instrument and/or Rider, the provisions of this Addendum shall prevail over and supersede any such inconsistent provisions of the Note and/or Secwity Instrument and/or Rider. In addition to the covenants and agreements made in the Note, Security Instrument, and Rider, Borrower and Lender further covenant and agree as follows: 4. (D) LIMITS ON I~iTEREST RATE CHANGES The interest rate I am required to pay at the first change date will not be greater than 12.550 % or less than 11.050 %• Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than One And One-half percentage point(s) ( 1.500 %) from the rate of interest I have been paying for the preceding g months. My interest rate will never be greater than 18.050 % or less than 11.050 %• BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this le Rate Rider Addendum. I RONDA GARNER \C.~IC Adjustable Rate Rider Addendum 1007961949 RE-102 (08229b} Page ] of 1 HomEq Servicing April 16, 2007 DF790 EXHIBIT RONDA GARNER 2622 QUEEN STREET DUBUQUE, IA 52001 RE: Account Number 0325424042 Property Address: 2622 QUEEN ST DUBUQUE, IA 52001 Dear RONDA GARNER: This letter is in reference to the above-referenced account, (the Account ), serviced by HomEq Servicing ( HomEq ), on behalf of the following current creditor: - Name of current creditor/owner: Wells Fargo Bank, N.A. - Time and place of the creation of the debt: 05/22/2006 DUBUQUE, IA - Merchandise, services or other things of value: Mortgage/Deed of Trust - Itemization of any delinquency or deferral charges: Number of Payments Due: 2 Total Delinquent Payments: $1,658.40 Late Charges: $121.30 Recoverable Corporate Advances: $8.80 Other Charges: $0.00 Less funds in Suspense: ($0.00) Total Due: $1,788.50 You are hereby provided with Notice that you are in default under the terms and conditions of your Note/Retail Installment Sale Contract and Mortgage/Deed of Trust secured by the above-referenced property (the Property) for failure to pay the required installments when due. If your Account is not brought current within thirty-five (35) days of the date of this letter, which is 05/21/2007, HomEq will, without further demand, accelerate the maturity date of the Account and declare the total balance immediately due and payable. As a consequence, HomEq may refer your Account to an attorney for foreclosure and all fees associated with foreclosure and Property preservation may be added to the total amount required to bring the Account current. THIS LETTER CONTINUES ON THE NEXT PAGE -1- In order to avoid further action, your full and timely payment in an amount sufficient to bring the Account current must be received by HomEq via certified funds, cashiers check or money order(s) on or before 05/21!2007. Your remittance must be made payable and mailed to HomEq Servicing at P. O. Box 70829 Charlotte, NC 28272 - 0829. As of the date of this letter, the amount required to bring the Account current and avoid foreclosure is the sum of payments that have come due on or after the date of default, 03/01/2007, plus late charges, periodic adjustments to the monthly payment amount (if applicable) and other expenses associated with collection, all of which total $1,788.50. Because interest accruals, late charges and other expenses may be additionally incurred, the amount required to bring the Account current on the day you actually deliver your payment to HomEq may be greater than the amount provided above. Accordingly, you should contact HomEq at 1-800-795-5125, Monday -Thursday S:OOAM-9:OOPM, Friday S:OOAM-6:OOPM, Saturday 5:OOAM-1:30PM, Sunday 8:OOAM-5:OOPM, Pacific Time to obtain the exact amount needed to bring the Account current prior to remitting payment. You are hereby informed that you have the right to cure or reinstate the Account after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense you may have to acceleration. Although you are not required to pay the total debt (or balance) of the Account prior to its maturity or acceleration, federal law requires HomEq to provide you with the total debt (or balance) due to HomEq as of the date of this letter, which is $71,326.29. The total estimated debt amount provided herein is for informational purposes only and this letter is not intended to act as a payoff statement or demand for you to pay the Account in full. If you want to obtain a written payoff statement, please submit your request to HomEq Servicing, Attention: Payoff Quotes, Mail Code CA3344, P.O. Box 13716, Sacramento, CA 95853 or otherwise contact HomEq at (877) 867-7378, Monday through Friday between 5:00 a.m. and 5:30 p.m., Pacific Time. HomEq is acting as the Mortgage Loan Servicer for Wells Fargo Bank, N.A., which is the current creditor/owner of the Note and deed of Trust associated with your account. HomEq, as Mortgage Loan Servicer, is representing Wells Fargo Bank, N.A. whose address is 9062 Old Annapolis Road, Attn: Client Manager - SABR 2006-NC3, Columbia, MD 21045-1951. The Mortgage Loan Servicer is authorized to represent Wells Fargo Bank, N.A. by virtue of a servicing agreement. The Mortgage Loan Servicer is authorized to collect the debt and to administer any resulting foreclosure of the property securing the above referenced account. All notices, payments, correspondence, and other communications regarding your account should continue to be directed to HomEg. You are notified that this default, and any other legal action that may occur as a result thereof, may be reported by HomEq to one or more credit reporting agencies. Except as otherwise contained herein, all communication concerning this matter must be made to HomEq via telephone at 1-800-795-5125, Monday -Thursday 5:OOAM-9:OOPM, Friday S:OOAM- 6:OOPM, Saturday 5:OOAM-1:30PM, Sunday 8:OOAM-S:OOPM, Pacific Time or in writing to: HomEq Servicing, Attn: Account Research, Mail Code CA3345, P.O. Box 13716, Sacramento, CA 95853. Please take appropriate action with respect to the important matters discussed herein. Sincerely, HomEq Servicing HomEq Servicing is a debt collector. HomEq is attempting to collect a debt and any information obtained will be used for that purpose. -2- IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY WELLS FARGO BANK, NATIONAL ASSOCIATION AS TRUSTEE, Plaintiff, vs RONDA GARNER, SPOUSE OF RONDA GARNER, CITY OF DUBUQUE, AND PARTIES IN POSSESSION, Defendants. CASE NO. AFFIDAVIT FOR ATTORNEY FEES EXHIBIT s STATE OF IOWA ) )ss. COUNTY OF BLACK HAWK ) I, Brian G. Sayer, being first duly sworn on oath, hereby depose and state that I am a member of the firm of Dunakey & Klatt, P.C., the attorneys for the Plaintiff in the above-entitled cause; that the Note and Mortgage sued upon herein are in my possession as attorney for the Plaintiff; that I have read the foregoing Petition and am familiar with the contents thereof, and the allegations contained therein are true as I verily believe. I further depose and state that I am a regular practicing attorney in the Courts of the State of Iowa; that the attorney's fees prayed for herein are for services rendered and to be rendered by me as attorney for the Plaintiff in this action; that there has been no agreement, express or implied, between me and any other person or persons except other practicing attorneys engaged with me in this action, for a division or sharing of the attorney's Subscribed and sworn to before me this 19`h day of June, ZUU7. 6 Nota Pu lic in and for the State of Iowa Qp~'4C J, TANYA P. DAHLEN z~~ Commission Number 745414 My Commission Expires: jOwA ~?-/G-o?d/O