Claim Washington Mutual Bk
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C17
IN THE lOW A DISTRICT COURT FOR DUBUQUE COUNTY
Defendant( s).
~ EQUITY NO. EQcuOCfcf93cf
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ORIGINAL NOTICE
WASHINGTON MUTUAL BANK, F.A.,
Plaintiff
v.
JAMES P. MENSEN; NICOLE E. MENSEN;
CITY OF DUBUQUE, IOWA; ANN MARIE
WILGENBUSCH;
; 1
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ORIGINAL NOTICE
c.,
TO THE ABOVE-NAMED DEFENDANTS:
You are notified that a petition has been filed in the office of the clerk of this court naming you as
the defendant( s) in this action. A copy of the petition, and any documents filed with it, is attached to this
notice. The name and address of the Plaintiffs attorney is James V. Sarcone, Jr., Belin law Firm, 666
Walnut Street Suite 2000, Des Moines, Iowa 50309-3989. The attorney's phone number is 515-283-
4624; facsimile number 515-283-4653.
You must serve a motion or answer within twenty (20) days after service of the Original Notice
upon you. Within a reasonable time thereafter you must file your motion or answer with the Clerk of
Court for Dubuque County, at the 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 at 319-398-3920 ext. 200. (If you are hearing
impaired, call Relay Iowa TTY at 1-800-735-2942.)
CLERK OF THE ABOVE COURT /~
IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT
YOUR INTERESTS
IN THE lOW A DISTRICT COURT FOR DUBUQUE COUNTY
Plaintiff
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WASHINGTON MUTUAL BANK, F.A.,
v.
PETITION (FOR MORTGAGJ;
FORECLOSURE AND RECEIyER)
JAMES P. MENSEN; NICOLE E. MENSEN;
CITY OF DUBUQUE, lOW A; ANN MARIE
WILGENBUSCH;
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Defendant(s).
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COMES NOW the Plaintiff and for cause of action against the Defendants, the Plaintiff states:
NOTICE
THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS
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 TWELVE MONTHS (OR SIX MONTHS IF THE PETITION INCLUDES A WAIVER OF
DEFICIENCY JUDGMENT) FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS
YOUR RESIDENCE AND IS A ONE-F AMIL Y OR TWO-FAMILY DWELLING OR UNTIL TWO
MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR
RESIDENCE OR IS YOUR RESIDENCE BUT NOT A ONE-F AMIL Y OR TWO-F AMIL Y
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.
1. That Plaintiff is a foreign corporation; Defendants James P. Mensen, Nicole E. Mensen and
Ann Marie Wilgenbusch are natural persons last known to reside in Dubuque County, Iowa; Defendant
City of Dubuque, Iowa is a political subdivision of the State of Iowa.
2. That on or about the 31st day of July, 2002, the Defendants, James P. Mensen and Nicole E.
Mensen made, executed and delivered to Plaintiff one certain Promissory Note in writing bearing the date
aforesaid in the principal sum of $52,333.00 bearing interest at the rate of 7.25 percent per annum after
maturity, and Exhibit "A" hereto attached and by this reference incorporated herein and made a part
hereof is a true and correct copy of said Promissory Note.
3. That at the time of the execution of said Promissory Note, Exhibit "A" aforesaid, and as a
part of the same transaction for the purpose of securing said Note with interest thereon and other sums
hereinafter mentioned, the said Defendants, James P. Mensen and Nicole E. Mensen made, executed and
delivered to Plaintiff one certain Mortgage in writing, transferring and conveying unto Plaintiff the
following real estate situated in Dubuque County, Iowa, to-wit:
Lot I of Lot 1 of Lot I of Lot 16 of the Subdivision of Mineral Lot 79, in
the City of Dubuque, Iowa, according to the recorded Plat thereof.
and Exhibit "B" hereto attached and by this reference incorporated herein and made a part hereof, is a true
and correct copy of said Mortgage.
4. That on July 31, 2002, the said Mortgage was duly recorded in Instr. # 13629-02, of the
records of the office of the Recorder of Dubuque County, Iowa.
5. That said Mortgage, Exhibit "B" aforesaid, among other things expressly provides for the
appointment of a Receiver upon the filing of Petition for Foreclosure or at any time thereafter.
6. That the said Defendants, James P. Mensen and Nicole E. Mensen, have defaulted in the
monthly payment of interest and principal and have neglected and failed to pay the installments as
provided in the written instrument aforesaid and are now in default of the said payments for several
months last past, and the Plaintiff does now elect to and hereby does declare the whole of said Note and
Mortgage due and payable forthwith.
7. That the balance due on said Note and Mortgage as of February 11, 2005, is $59,684.17,
including principal and interest and advancements, after allowing due credit to the Defendants for all
payments made.
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8. That in the preparation of this Petition and cause of action for presentation to the Court, it
was necessary for Plaintiff to employ an attorney to represent and serve it herein, and for this purpose
Plaintiff has retained and employed Belin Lamson McCormick Zumbach Flynn, A Professional
Corporation, Attorneys at Law of this Court.
9. That the Plaintiff is willing and now offers, upon payment of the amount due it as heretofore
set forth, to cancel the Note declared on, discharge of record the Mortgage securing the same, and to do
all things that equity and good conscience may require of it.
10. That the Plaintiff has been made to incur the expense in the sum of $205.00 for continuing
the abstract of title to the mortgaged premises, which is the reasonable charge for same.
11. That the Defendants herein have or claim to have some lien upon or interest in the mortgaged
premises, but the Plaintiff avers that whatever lien or interest they or any of them may have thereon or
herein, the same is junior and inferior to the lien of Plaintiffs Mortgage, Exhibit "B" and the amounts
hereinbefore set out.
12. That Plaintiff waives its rights to a deficiency judgment in this matter.
13. That a Notice of Right to Cure Default was mailed to the Defendants, James P. Mensen and
Nicole E. Mensen, more than 30 days prior to the filing of this foreclosure action/Petition and the defaults
set out therein have not been cured.
14. City of Dubuque, Iowa is included as a Defendant herein because of a judgment rendered in
its favor against James Patrick Mensen with fines and costs in the amount of $104.50 on September 4,
2003, in DUSTWE739469 of the Dubuque County, Iowa records.
15. Ann Marie Wilgenbusch is included as a Defendant herein because of a judgment against
James Patrick Mensen for child support entered in EQCB89612 ofthe Dubuque County, Iowa records.
WHEREFORE, Plaintiff prays:
FIRST: That a Receiver be appointed by the Court to take immediate posseSSIOn of the
mortgaged premises hereinbefore described, with power and authority and the duty to keep, repair,
maintain and insure the premises, buildings and other improvements thereon; to lease the same and collect
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the rents, issues and profits arising which may be had therefrom, and to retain and dispose of said rents
and profits as said Mortgage provides and as the Court may hereafter determine and direct.
SECOND: (a) That the Plaintiff have judgment in rem, against the mortgaged premises in the
sum of $59,684.17 with interest at 7.25 percent from February 11,2005, and have such additional sum of
sums as may hereafter be advanced for continuing the abstract of title or other purposes authorized by
said Note and Mortgage and by Iowa law. (b) For reasonable attorney's fees upon the Note, interest and
other sums advanced by the Plaintiff as set out above, and for the costs of this action.
THIRD: That said judgment be declared to be a lien upon the mortgaged premises involved
herein from and after the date of execution of said Mortgage, Exhibit "B", to-wit, July 31, 2002, and upon
the rents, issues and profits arising and which may be had therefrom from and after the date of filing of
this Petition, and that said lien be declared to be prior and paramount to the lien and interest of the
Defendants upon and in the said property.
FOURTH: That Plaintiffs Mortgage aforesaid, Exhibit "B", be foreclosed, and that a special
execution issue for the sale for the mortgaged premises, or so much thereof as may be necessary to satisfy
the said judgment with interest and costs.
FIFTH: That in the event the property aforesaid does not sell for sufficient to satisfy the
judgment herein, the net proceeds from the rents, issues and profits which may be had therefrom, from
and after this date, be applied upon said judgment until the same is fully satisfied.
SIXTH: That after the Sheriffs sale of the above described premises pursuant to a special
execution issued herein, a Writ of Possession issue herein under seal of this Court directed to the Sheriff
of Dubuque County, Iowa, commanding him to put the Grantee under Sheriffs Deed in possession of the
premises deeded to him, and to remove any Defendants, or persons claiming by, through or under any of
them, or any person in possession thereof, out of such possession of said premises.
SEVENTH: That Plaintiff have such other and further relief as the Court may find it to be
entitled to in equity.
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d: \ wamu- flo \mensen \petset. doc
BELIN LAMSON McCORMICK ZUMBACH
FLYNN
A Professional Corporation
BY
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J~ES V. SARCONE, JR.
6 0 Walnut Street SUIte 2000
Des Moines, IA 50309-3989
Telephone: 515-243-7100
PK 0004845
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Loan Number 5015119
FHA Case No.
NOTE
]6].1980]08703
JULY 31, 2002
[Date]
]035 WEST 5TH, DUBUQUE, IOWA 52001
[ Property Address]
1. PARTIES
"Borrower" means each person signing at the end of this Note, and the person's successors and assigns.
"Lender" means WASHINGTON MUTUAL BANK, FA and its successors and assigns.
2. BORROWER'S PROMISE TO PAY; INTEREST
In return for a loan received from Lender, Borrower promises to pay the principal sum of FIFTY-TWO
THOUSAND THREE HUNDRED THIRTY-THREE AND OO/lOOths Dollars (U.S.$52,333.00), plus interest, to the
order of Lender. Interest will be charged on unpaid principal, from the date of disbursement of the loan proceeds
by Lender, at the rate of SEVEN AND ONE-QUARTER percent (7.250%) per year until the full amount of principal
has been paid.
3. PROMISE TO PAY SECURED
Borrower's promise to pay is secured by a mortgage, deed of trust or similar security instrument that is dated
the same date as this Note and called the "Security Instrument." The Security Inslrument protects Ihe Lender from
losses which might result if Borrower defaults under this Note.
4. MANNER OF PAYMENT
(A) Time
Borrower shall make a payment of principal and interest to Lender on the first day of each month beginning on
SEPTEMBER I, 2002. Any principal and interest remaining on the first day of AUGUST, 2032, will be due on that
date, which is called the maturity date.
(B) Place
Paymenl shall be made at P.O. BOX 7198, PASADENA, CALIFORNIA 9] 109-7198 or at such place as Lender
may designate in writing by notice 10 Borrower.
(C) Amount
Each monthly payment of principal and interest will be in the amount of U.S. $357.01. This amount will be part
of a larger monthly payment required by the Security Instrument, that shall be applied to principal, interest and
other items in the order described in the Security Instrument.
(0) AUonge to this note for payment adjustments
If an allonge providing for payment adjustments is executed by Borrower together with Ihis Note, the covenants
of the allonge shall be incorporated into and shall amend and supplement the covenants of this Note as if the allonge
were a part of this Note. [Check applicable box.}
o Graduated Payment Allonge
DGrowing Equity Allonge
5. BORROWER'S RIGHT TO PREPAY
Borrower has the right to pay the debt evidenced by this Note, in whole or in part, withoul charge or penalty,
on the first day of any month. Lender shall accept prepayment on other days provided that borrower pays interest on
the amount prepaid for the remainder of the month to the extent required by Lender and permitted by regulations of
the Secretary. If Borrower makes a partial prepayment, there will be no changes in the due date or in the amount of
the monthly payment unless Lender agrees in writing to those changes.
o Other [Specify]
6. BORROWER'S FAILURE TO PAY
(A) Late Charge for Overdue Payments
If Lender has not received the full monthly payment required by the Security Instrument, as described in
Paragraph 4(C) of this Note, by the end of fifteen calendar days after the payment is due, Lender may collect a late
charge in the amount of FOUR percent ( 4.0 %) of the overdue amount of each payment.
(B) Default
If Borrower defaults by failing to pay in full any monthly payment, then Lender may, except as limited by
regulations of the Secretary in the case of payment defaults, require immediate payment in full of the principal
balance remaining due and all accrued interest. Lender may choose not to exercise Ihis option without waiving its
rights in the event of any subsequent default. In many circumstances regulations issued by the Secretary will limit
Lender's rights to require immediate payment in full in the case of payment defaults. This Note does not authorize
acceleration when not permitted by HUD regulations. As used in this Note, "Secretary" means the Secretary of
Housing and Urban Development or his or her designee.
GMD 0040 (1095) Page I of 2
FHA Multistate Fixed Rate Note
(C) Payment of Costs and Expenses
If Lender has required immediate payment in full, as described above, Lender may require Borrower to pay
costs and expenses including reasonable and customary attorney's fees for enforcing this Note 10 the extent not
prohibited by applicable law. Such fees and Costs shall bear interest from the date of disbursement at the same rate
as the principal of this Note.
7. WAIVERS
Borrower and any other person who has obligations under this Note waive the rights of presentment and notice
of dishonor. "Presentment" means the right 10 require Lender to demand payment of amounts due. "Notice of
dishonor" means the right to require Lender to give notice to other persons that amounts due have not been paid.
8. GIVING OF NOTICES
Unless applicable law requires a different method, any notice that must be given to Borrower under this Note
will be given by delivering it or by mailing it by first class mail to Borrower at the property address above or at a
different address if Borrower has given Lender a notice of Borrower's different address.
Any notice that must be given to Lender under this Note will be given by first class mail to Lender at the
address stated in Paragraph 4(B) or at a different address if Borrower is given a notice of thai 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 guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in
this Note. Lender may enforce its rights under this Note against each person individually or against all signatories
together. Anyone person signing this Note may be required to pay all of the amounts owed under this Note.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in Ihis Note.
R;
S P. MENSEN
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I G t.tXYU'. //:;. '/7
NiCOLE E. MENSEN
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(Seal)
-Borrow~r
(Seal)
- Borrower
(Seal)
-Borrower
PAY TO THE OlIDER OF'
WITHOUT aECOURSE
WASHINGTON MUTUAL BANK
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BRENDA F. BRENDLE
VICE PRESIDENT
GMD 0040 (1095) Page 2 of 2
FHA Multislate Fixed Rate Note
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When Recorded Mail To:
Washington Mutual Bank, Fa
7301 Baymeadows Way
Jacksonville, Florida 32256
Loan Number 5015119
b'D \61\ ~
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\ 113629~02
200Z JUL 31 PH 3: 23
KA.THY fLYNK THURLOW
COUHTYRECOROER
DUBUQUE CO.. IOWA FEES
~31.00
[Space Above This Line For Recording Dalal
Washington Mutual Bank, Fa, 7301 Baymeadows Way, Jacksonville, Florida 32256 (904) 281-3901
Dee Voyta
Prepared By:
'~HA Case No.
MORTGAGE 1161-1980108703
* Husband and Wife ~
THIS MORTGAGE ("Security Instrument") is given on JULY 31,2002. The mortgagor is JAMES P. MENSEN and
NICOLE E. MENSEN,* JOINT TENANCY ("Borrower"). This Security Instrument is given to WASHINGTON
MUTUAL BANK, FA, which is organized and existing under the laws of THE UNITED STATES, and whose address is
7301 BAYMEADOWS WAY, JACKSONVILLE, FLORIDA 32256 ("Lender"). Borrower owes Lender the principal
sum of FIFTY-TWO THOUSAND THREE HUNDRED THIRTY-THREE AND OOIlOOths Dollars (U.S.$52,333.00).
This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for
monthly payments, with the full debt, if not paid earlier, due and payable on AUGUST I, 2032. This Security Instrument
secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and
modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the
security of this Security Instrument; and (c) the perfonnance of Borrower's covenants and agreemenls under this Security
Instrumenl and- the Note. For this pUfllose, Borrower does hereby mortgage, grant and convey to Lender the following
described property located in DUBUQUE County, Iowa:
'f.
RUNNIN GH TO MEEKER STREET AND BEING OF E ON MEEKER STREET.
ALSO THE SOUfHEA - OURTH OF SAID L ING 25 FEET ON FRANKLIN
STREET AND RUNNING BACK 0 TOWARDS MEEKER STREET 1081/2
FEET ON THE,WEST SIDE OF A RIVE , ATED IN THE CITY OF GALENA, JJ7J1
JO DA VlESS COUfNY OIS, TOGETHER WITH A VIDED 1/2 INTEREST IN A 'I II II
PART OF LO THE NORTHEASTERLY SIDE OF FRANKL ET IN THE CITY ~
GALE , 0 DA VIESS COUNTY, ILLINOIS, BEING A STRIP OF LAND 4 IJ) i, II' . J
58.
Lot 1 of Lot 1 of Lot 1 of Lot 16 of the Subdivision of Mineral
Lot 79, in the City of Dubuque, Iowa, according to the Plat thereof.
which has the address of 1035 WEST 5TH
Iowa
52001
IStree'l
("Property Address");
, DUBUQUE
ICity)
(Zip Code)
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and
fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security
Instrument. All of the foregoing is referred to in this Security Instrument as the "Property. "
GMD 0160 (496) Page I of6
FHA Iowa Mortgage
r.
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage,
"rai'lt and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower
1rrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of
record.
THIS SECURrry INSTRUMENT combines unifonn covenants for national use and non-uniform covenants with limited
variations by jurisdiction to constitute a uniform security instrument covering real property.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and interest on,
the debt evidenced by the Note and late charges due under the Note.
2. Monthly Payment of Taxes, Insurance, and Other Charges. Borrower shall include in each monthly payment,
together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and special
assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property, and (c)
premiums for insurance required under Paragraph 4. In any year in which the Lender must pay a mortgage insurance
premium to the Secretary of Housing and Urban Development ("Secretary"), or in any year in which such premium would
have been required if Lender still held the Security Instrument, each monthly payment shall also include either: (i) a sum
for the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a
mortgage insurance premium if this Security Instrument is held by the Secretary, in a reasonable amount 10 be determined
by the Secretary. Except for the monthly charge by the Secretary, these items are called "Escrow Items" and the sums paid
to Lender are called "Escrow Funds. "
Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of
1974, 12 U.S.c. ~ 2601 ~~. and implementing regulations, 24 CFR Part 3500, as they may be amended from time to
time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements
before the Borrower's payments are available in the account may not be based on amounts due for the mortgage insurance
premium.
If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time are
not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up the
shortage as permitted by RESPA.
The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If Borrower
tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for
all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become
obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower. Immediately prior to a
foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance
remaining for all installments for items (a), (b). and (c).
3. Application of Payments. All payments under Paragraphs I and 2 shall be applied by Lender as follows:
First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
Secretary instead of the monthly mortgage insurance premium;
Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
insurance premiums, as required;
Third, to interest due under the Note;
Fourth, to amortization of the principal of the Note; and
Fifth, to late charges due under the Note.
4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in
existence or subsequently erected, against any hazards, casualties, and contingencies. including fire, for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower
shall also insure all improvements on the Property, whether now in existence or subsequently erected, against loss by
floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The
insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a
form acceptable to. Lender.
GMD OHiO (496) Page 2 of 6
FlIA Iowa Mortgage
In the event of loss. Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made
promptly by Borrower. Each insurance company conccrned is hereby authorized and directed to make payment for such
.oss directly to Lender, instead of to Borrowcr and to Lender jointly. All or any part of the insurance proceeds may be
applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security
Instrument, first to any delinquent amounts apRlied in the order in Paragraph 3. and then to prepayment of principal, or
(b) to the restoration or repair of the damaged Property. Any application of the proceeds to the principal shall not extend
or postpone the due date of the monthly payments which are referred to in Paragraph 2, or change the amount of such
payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and
this Security Instrument shall be paid to the entity legally entitled thereto.
In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the
indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
5. Occupancy, Presen-ation, Maintenance and Protection of the Property; Borrower's Loan Application;
Leaseholds. Borrower shall occupy. establish, and use the Property as Borrower's principal residence within sixty days
after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall
continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless
Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist
which are beyond Borrower's control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not
commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable
wear and tear excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default.
Lender may take reasonable action to protect and preserve such vacant or abandoned Property. Borrower shall also be in
default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to
Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note,
including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If
this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires
fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby
assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the
Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note
and this Security Instrument, first to any delinquent amounts applied in the order provided in Paragraph 3, and then to
prepayment of principal. Any application of the proceeds to the principal shall not extend or postpone the due date of the
monthly payments, which are referred to in Paragraph 2, or change the amount of such payments. Any excess proceeds
over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to
the entity legally entitled thereto.
7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or
municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on
time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the
Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments.
If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations),
then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the
Property, including payment of taxes, hazard insurance and other items mentioned in Paragraph 2.
Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured by
this Security Instrument. These amounts shall bear interest from the date of disbursement at the Note rate, and at the
option of Lender shall be immediately due and payable.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees
in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith
the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender
subordinating the lien to this Security Instrument. If Lender determines that any part of the ProperlY is subject to a lien
which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower
shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
8. Fees. Lender may collect fees and charges authorized by the Secretary.
9. Grounds for Acceleration of Debt.
GMD 0160 (496) Page 3 of6
FHA Iowa Mortgage
(a) Default. Lender may, except as limited by regulations issued by the Secretary in the case of payment defaults,
require immediate payment in full of all sums secured by this Security Instrument if:
(i) Borrower defaults by failing to pay in full any monthly payment required by this Security Instrument prior
to or on the due date of the next monthly payment, or
(ii) Borrower defaults by failing, for a 'period of thirty days, to perform any other obligations contained in this
Security Instrumen!.
(b) Sale Without Credit Approval. Lender shall, if permined by applicable law (including section 34](d) of the
Garn-SI Germain Depository Institutions Act of ]982,12 USe. 170Ij-3(d)) and with the prior approval of the
Secretary, require immediate payment in full of all sums secured by this Security Instrument if:
(i) All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or
otherwise transferred (other than by devise or descent), and
(ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the purchaser
or grantee does so occupy the Property, but his or her credit has not been approved in accordance with the
requirements of the Secretary.
(c) No Waiver. If circumstances occur that would permit Lender to require immediate payment in full, but Lender
does not require such payments, Lender does not waive its rights with respect to subsequent events.
(d) Regulations of HUD Secretary. In many circumstances regulations issued by the Secretary willlimil Lender's
rights, in the case of payment defaults, to require immediate payment in full and foreclose if not paid. This
Security Instrument does not authorize acceleration or foreclosure if not permined by regulations of the Secretary.
]0. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full because of
Borrower's failure to pay an amount due under the Note or this Security Instrument. This right applies even after
foreclosure proceedings are instituted. To reinstate the Security Instrument, Borrower shall tender in a lump sum all
amounts required to bring Borrower's account current including, to the extent they are obligations of Borrower under this
Security Instrument, foreclosure costs and reasonable and customary anorney's fees and expenses properly associated with
the foreclosure proceeding. Upon reinstatement by Borrower, this Security Instrument and the obligations that it secures
shall remain in effect as if Lender had not required immediate payment in full. However, Lender is not required to permit
reinstatement if: (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings within two
years immediately preceding the commencement of a current foreclosure proceeding, (ii) reinstatement will preclude
foreclosure on different grounds in the future, or (iii) reinstatement will adversely affect the priority of the lien created by
this Security Instrumen!.
II. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time of payment or
modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in
interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successor in interest.
Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for
payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made
by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or
remedy shall not be a waiver of or preclude the exercise of any right or remedy.
]2. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this
Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of
Paragraph 9(b). Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security
Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey
that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay
the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend,
modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that
Borrower's consent.
GMD 0160 (496) Page 4 of 6
FHA Iowa Mortgage
13. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by
maijing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the
Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by
first class mail to Lender's address stated herein or any address Lender designates by notice to Borrower. Any notice
provided for in this Security Instrument shall ~e deemed to have been given to Borrower or Lender when given as
provided in this paragraph.
]4. Governing Law; Severability. This Security Instrument shall be governed by Federal law and the law of the
jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the
Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note
which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the
Note are declared to be severable.
]5. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrumenl.
]6. Hazardous Substances. Borrower shall DOt cause or permit the presence, use, disposal, storage, or release of any
Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecling the
Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use,
or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to
normal residential uses and to maintenance of the Property.
Borrower shall promptly give Lender wrinen notice of any investigation, claim, demand, lawsuit or other action by any
governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental
Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory
authority, that any removal or other remediation of any Hazardous Substances affecting the Property is necessary,
Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law.
As used in this paragraph 16, "Hazardous Substances" are those substances defined as toxic or hazardous substances by
Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic
pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As
used in this paragraph 16, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is
located that relate to health. safety or environmental protection.
NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
17. Assignment of ReDts. Borrower unconditionally assigns and transfers to Lender all the rents and revenues of the
Property. Borrower authorizes Lender or Lender's agents to collect the rents and revenues and hereby directs each tenant
of the Property to pay the rents to Lender or Lender's agents. However, prior to Lender's notice to Borrower of
Borrower's breach of any covenant or agreement in the Security Instrument, Borrower shall collect and receive all rents
and revenues of the Property as trustee for the benefit of Lender and Borrower. This assignment of rents constitutes an
absolute assignment and not an assignment for additional security only.
If Lender gives notice of breach to Borrower: (a) all rents received by Borrower shall be held by Borrower as trustee
for benefit of Lender only, to be applied to the sums secured by the Security Instrument; (b) Lender shall be entitled to
collect and receive all of the rents of the Property; and (c) each tenant of the Property shall pay all rents due and unpaid to
Lender or Lender's agent on Lender's written demand to the tenant.
Borrower has not executed any prior assignment of the rents and has not and will not perform any act that would
prevent Lender from exercising its rights under this Paragraph 17.
Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice of
breach to Borrower. However, Lender or a judicially appointed receiver may do so at any time there is a breach. Any
application of rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment
of rents of the Property shall terminate when the debt secured by the Security Instrument is paid in full.
]8. Foreclosure Procedure. If Lender requires immediate payment in full under Paragraph 9, Lender may foreclose
this Security Instrument by judicial proceeding or by non-judicial power of sale in accordance with applicable law. Lender
shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 18, including, but not
limited to, reasonable attorneys' fees and costs of title evidence.
If the Lender's interest in this Security Instrument is held by the Secretary and the Secretary requires immediate
payment in full under Paragraph 9, the Secretary may invoke the nonjudicial power of sale provided in the Single Family
Mortgage Foreclosure Act of 1994 ("Act") (12 USe. 3751 ~ ~.) by requesting a foreclosure commissioner designated
under the Act to commence foreclosure and to sell the Property as provided in the Act. Nothing in the preceding sentence
shall deprive the Secretary of aDY rights otherwise available to a Lender under this Paragraph 18 or applicable law.
GMD 0160 (496) Page 5 of6
FHA Iowa Mortgage
]9. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security
Inslrument withoul charge to Borrower.
20. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and distributive share in and
to the Property. Borrower waives any right of exemption ~s to the Property.
21. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any foreclosure proceeding
any right 10 a &ficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 6
months. If the cilQit .finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency
juogment a"gains(B&irower, the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this
p.aragraph tI: sh~II~'onstrued to conform to the provisions of Sections 628.26 and 628.27 of Ihe Code of Iowa.
". . o"'-.r-w
.' ',: 2t. Ri~ers ,~~s Security Instrument. If one or more riders are executed by Borrower and recorded together with
~is Securily hy;,@ment, the covenants and agreements of each such rider shall be incorporated into and shall amend and
-ihpPJemeI1l:.the~. ~V.;~J1. ants and agreements of this Security Instrument as if the rider(s) were a part of this Security
,JIstrument..'1 ~ - .;.
[Check apP'iicabli: bOx(es)]
q.Condominium Rider
D Planned Unit Development Rider
D Growing Equity Rider
D Graduated Paymenl Rider
D Adjustable Rate Rider
DOther [Specify]
BY SIGNING BELOW, Borrower accepts and agrees 10 the terms and covenants cOnlained in this Security Instrument and
in any rider(s) executed by Borrower and recorded with it.
Witnesses:
~c;,:/~
S P. MENSEN
~ (' t/;k04Wl
NtCOLE E. MENSEN
(Seal)
- 8orrow~r
(Seal)
-Borrower
(Seal)
(Seal)
-Borrower
-Borrower
STATE OF IOWA, DEBUQUE County ss: ill, L'7hZ-
On this J /'" day of 7'- I y , before me, a Notary Public in the State of Iowa,
personally appeared JAMES P. MENSEN and NICOLE E. MENSEN, JOINT TENANCY, to me personally known
to be the person(s) named in and who executed the foregoing instrument, and acknowledged that executed
the same as voluntary act and deed.
My Commission Expires: 2/t /0 ~
f.ij~ BRADLEY R. BRISSEY
~ Commission Number 220706
. . My Comm. '0 Expires
ow. 2- I b<;
GMD 0160 (496) Page6of6
FHA Iowa Mortgage
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