Claim Washington Mutual Bank, F.A.
0ftt;f/ZL-
Plaintiff
IN THE lOW A DISTRICT COURT FOR DUBUQUE COUNTY
)
) EQUITY NO.
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) ORIGINAL NOTICE
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WASHINGTON MUTUAL BANK, FA
v.
MARLA J. SALSER; SPOUSE OF MARLA J.
SALSER; CITY OF DUBUQUE, IOWA;
HOUSEHOLD FINANCE INDUSTRIAL LOAN
COMPANY OF IOWA
Defendant(s).
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 Plaintiff's attorney is James V.
Sarcone, Jr., Belin law Firm, The Financial Center, 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 o~he Original
Notice upon you. Within a reasonable time thereafter you must file your motion or answh 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 caB your district ADA coordinator at 563-589-4433. (If you are hearing
impaired, caB Relay Iowa TTYat 1-800-735-2943.)
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CLERK OF THE ABOVE COURT
IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO
PROTECT YOUR INTERESTS
WASHINGTON MUTUAL BANK, FA
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IN THE lOW A DISTRICT COURT FOR DUBUQUE COUNTY ~ \, ~.:;. \:.
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Plaintiff
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) EQUITY NO.
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PETITION (FOR MORTGAGE
FORECLOSURE AND RECEIVER)
v.
MARLA 1. SALSER; SPOUSE OF MARLA J.
SALSER; CITY OF DUBUQUE, IOWA;
HOUSEHOLD FINANCE INDUSTRIAL LOAN
COMPANY OF lOW A
Defendant(s).
COMES NOW the Plaintiff and for cause of action against the Defendant(s), 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 mDGMENT 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 MONTIf IF THE
.
PETITION INCLUDES A WAIVER OF DEFICIENCY mDGMENT) FROM ENT]{Y OF
JUDGMENT IF. THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-
FAMILY 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-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.
1. That Plaintiff is a foreign corporation; Defendants Marla J. Salser and Spouse of
Marla J. Salser 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; remaining Defendant is a
corporation doing business in the State of Iowa.
2. That on or about the 15th day of September, 1998, the Defendant, Marla J. Salser
made, executed and delivered to Mercantile Bank Midwest one certain Promissory Note in
writing bearing the date aforesaid in the principal sum of$51,750.00 bearing interest at the rate of
7.5 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 Defendant, Marla J. Salser made, executed and
delivered to Mercantile Bank Midwest one certain Mortgage in writing, transferring and
conveying unto Mercantile Bank Midwest the following real estate situated in Dubuque County,
Iowa, to-wit:
Lot 23 in C.A. Voelker's Addition 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 ~part hereof,
. j
is a true and correct copy of said Mortgage.
4. That on September 17, 1998, the said Mortgage was duly recorded in Instr. #14614-
98, 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.
5a. The aforesaid Mortgage has been assigned to the Plaintiff herein.
6. That the said Defendant, Marla J. Salser, has defaulted in the monthly payment of
interest and principal and has neglected and failed to pay the installments as provided in the
written instrument aforesaid and is 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 April I, 2006, is $51,243.39,
including principal and interest and advancements, after allowing due credit to the Defendant(s)
for all payments made.
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 attomey 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 $175.00 for
continuing the abstract of title to the mortgaged premises, which is the reasonable charge for
same.
II. That the Defendant(s) 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 or thepl may
,
have thereon or herein, the same is junior and inferior to the lien of Plaintiff's 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 Defendant Marla J. Salser,
more than 30 days prior to the filing of this foreclosure action/Petition and the defaults set out
therein have not been cured.
14. Spouse of Marla J. Salser is included as a Defendant herein because he is the spouse
. of the record titleholder herein of the above property and a party in possession of said property.
15. City of Dubuque, Iowa is included as a Defendant herein because of a mortgage
dated September 15, 1998 in the sum of $5,000.00, covering the above property executed in its
favor by Marla J. Salser and recorded September, 25 1998 in Instr. #15025-98 of the Dubuque
County, Iowa records.
16. Household Finance Industrial Loan Company of Iowa is included as a Defendant
herein because of the following mortgages: (a) mortgage dated May 25, 2001 in the sum of
$19,130.42 covering the above property executed in its favor by Marla J. Salser and recorded
May, 30 2001 in Instr. #7810-01 of the Dubuque County, Iowa records; (b) mortgage dated July
25,2003 in the sum of $19,350.14 covering the above property executed in its favor by Marla J.
Salser and recorded July 30, 2003 in Instr. #20172-03 of the 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 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 mortga'}ed premises
Jr
in the sum of$51,243.39 with interest at 7.5 percent from April I, 2006, 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,
September 15, 1998, 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 Defendant(s) 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 ofthis 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 Defendant(s), 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.
BELIN LAMSON McCORMICK
ZUMBACH FLYNN
A Professional Corporation ~
t!
BY OrJ ~)
J~ V. SARCONE, JR.
The Financial Center
666 Walnut Street Suite 2000
Des Moines, IA 50309-3989
Telephone: 515-243-7100
PK 0004845
D:\HOMESfDE\Salser\PETSET.Doc
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MuItistate
NOTE
//(,1-;;;37'1
FHA Case No.
161-1752078 - 703
SBPTEMBER 15, 1998
(Date]
'i'-fIG:,\;). ::rJY<.o
488 LOWELL STREBT
DUBUQUE, IA 52001
[Property Add"",)
1. PARTIES
"Borrower" means each person signing at the end of this Note, and the person's successors and assigns. "Lender" means
MERCANTILB BANK MIDWEST
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-ONE THOOSAND
SBVBN HtlNDRXD FIFTY AND NO/100
Dollars (U .S. $ 51, 7 SO . 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 SEVEN AND 500/1000
percent ( 7.500 %) per year until the full amount of principal has been paid.
3. PROMISE TO PA YSECURED
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 Instrument protects the 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 flISt day of each month beginning on
NOVEHIlBR 1, 1998 . Any principal and interest remaining on the first day of OCTOBBR, 2028
wiD be due on that date, which is called the "Maturity Date."
(B) Place
Payment shall be made at P. O. BOX 148, DOBUQOll
IA 52004-0148
or at such place as Lender 't,ty designate in writing
,
by notice to Borro~r. ..
(C) Am "\' .... . ;,"::1.: . .
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Each monthly payment ofpri'i.cipal and interest wiUbe in the amount of U.S.$ 361. 84 . This
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.
(D) Allonge to this Note for payment adjustments
If' an allonge providing for payment adjustments is executed by Borrower together with this Note, the covenants of
the allonge shall be iucoIJlOrated into and shall amend and supplement the covenants of this Note as if the allonge were a
part of this Note. [Check applicable box] .
DGraduated Payment 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, without 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 pem1itted 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.
:.
DOther [specify]
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<<l FHANOTE (4.o'2ml
FHA Multistate Fixed Rate Note -10195
VMP MORTGAGE FOAMS -(8001621-72.91
DisuibtMd by FormAtion TechrloIooi_.lne. {900l931-3799
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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 AND NO/1000 percent ( 4.000 %) 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 this 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 reguIations. As used in this Note, "Secretary" means the Secretary of Housing and Urban Development or his or her
designee.
(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 attorneys' fees for enforcing this Note to 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 to 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 Slated
in Paragraph 4(B) or at a different address if Borrower is 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 j>,romises,.made
in this Note, inclnding the promise to pay the full amount owed. Any plb"'H""""""""gU1j'AAW.~~.hf end~.~ of this
Note is also obligated to do these things. Any person who takes ov!""' these- nbliptmnr.iltc.tudilrg'theo .gallo of a
guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. Len may
enforce its rights under this Note against each person individually or against all sigJP.lll(lm iB!1iiQiI~e person igning
this Note may be required to pay all of the amounts owed under this Note.: HOMESID'E LENDING, \NP. I
: WITHOUT RECOURSE
BY SIGNING BELOW, Borrower accepts and agrees to the termS and COVeffll.'Ii~~1btldMPAN:J
By: Or-
p_ ClpoIIa. E>c8clJlMI Vice PreLI-a
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MARLA J. SALS -Borrower tH RL"'~ F. ('I'RRV COMPANY -Borrower
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(Seal)
-Bo~pany,,*
Mortgage~~~
Pay to the order of Trustcorp
Without Recourse
Mercantile Bank Midwest
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FHANOTE (412196)
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BORROWER NAME MJ4-11-LA J SA-L~e-fl.
PROPERlY ADDRESS 4(rf' L Ow~1-t.. ! T . PiA (ju ~I.AE III n 00 I
~.AY TO T.llE ORDER OF
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HOm;SIDll; LElIDING. 111e.
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SEnOR VICE PRESIDENT
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KATH"( FLYNN mURLOII' "..[)
COUHTY RECllRDER \ lY
DUBUQUE CO.. :DlVAFEES~ .
Prenared by-
MBRCANTlLE BANK IllIDWESr
ROXANNE H. ~LLB (3~9)589-JJ~8
7m & row CLOCK PLAZA
DUBUQUE. XA 5J004-0~48
( P"-RC-W)
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(Space Above This Line For Recording Data]
State ofIowa
MORTGAGE
FHA Case No.
( H~-~75J078
THIS IS A PURCHASE MONEY MORTGAGE
)
THIS MORTGAGE ("Security Instrument") is given on SEPTllHBllR ~5. ~998
The Mongagor is MARLA J. SALSER. A SINGLE PERSON
("Borrower"), This Security instI1lment is given to HERCAN'l'It.E BAN!I: IllIDWEsr
which is organized and existing under the law. of Iowa
whose address is P. O. !lOX 148, DUBUQUE, IA 5J004-0148
("Lender"). Borrower owes Lender the principal sum of
FIFTY-ONE mOUSAND SEVIlN HONDRIlD FIFTY AND NO/~OO $
Dollars (U.S. 5~. 750.00 ).
Thi. debt is evidenced by Borrower's nole 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 OCTOBER ~. J 0 J 8
. '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 inlerest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the
Rlt'O APR ~2 1999
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Gl1!::4R(IA) .....,
"'AFHAIW2i96)
VMP MORTGAGE FORMS -(800)521-7291
Distributed by formAtIon TechnOlogies, Inc. (800)937-3799
Page 1 018
FHA Iowa Mortgage ~ 10/95
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perfoIIDilPl<" ,Jlf. Borr"we{'. ,iXlvenant.<; and agreement.<; wuler this Security Instrmnent and the Note. For this
purpose,,-,1lotrower' dots' hereby mortgage, grant and convey to the Lender the following described property located
in Dubuque COlDlty, Iowa:
'LOT 2~,. pi, C. A. VOELKER'S ADDITION IN THE CITY OF DUBUQUE, IOWA, ACCORDING
TO' ~~ '-MCP1\IlED PUT THEREOF
which has the address of 4 B 8 LOWELL STREET, DUBUQUE
Iowa 5200J. [Zip Code) ("Property Address");
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. Ail replacement.<; 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 lawfulIyseized of the estate hereby conveyed and has the right
to mortgage, grant and convey the Property and that the Property is unencumbered, exoept for encwnbrances of
record. Borrower warrants and will defend generally the title to the Property against all claims and demands,
subject to any encwnbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenant.<;
with: limited variations by jurisdiction to constitute a uniform security instrwnent covering real property.
Borrower and Lender covenant and agree as follows:
(Street, City),
UNIFORM COVENANTS.
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 shaIl inclu~:in each monthly
payment, together with the principal and interest as set forth in the Note and any late charges, of sum for (a) taxes
and special assessments levied or to be levied against the Property, (h) leasehold payments or grolDldllrents on the
Pro~, 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 ("SecretaIy"), or in any year in
which such premium would have been required if Lender still held the Security Instrument, eacb 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 to be detetmined by the SecretaIy. Exoept for the monthly charge by the
Secretary, these items are called "Escrow Items" and the sums paid to Lender are caIled "&crow Funds."
'Lender may, at any time, collect and hold amolDlt.<; for Escrow Items in an aggregate amount not to exceed
the maximum amount that may be required for Borrower's escrow accolDlt under the Real Estate Settlement
Procedures Act of 1974, 12 U.S.C. Section 2601 er .eq. and implementing regulations, 24 CPR Part 3500, as they
may be amended from time to time ("RESPA "), exoept that the cushion or reserve permitted by RESPA for
unanticipated disbursement.<; or disbursements before the Borrower's payment.<; are available in the account may
not be based on amount.<; due for the mortgage insurance premium.
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4D' IAFHA (8I2J96)
Page 2 016
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If the amounts held by Lender for Escrow Items exceed the amollll1S 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 or Payments. All payments under paragraphs 1 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;
~, 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;
.Em!l:!!!., 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.
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 concerned is hereby authorized and directed to make
payment for such loss directly to Lender, instead of to Borrower 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, frrst to any delinquent amounts applied in the order in paragraph 3, and
then to prepayment of principal, or (b) to the restoration or repair of the datnaged 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 '!11 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 indebted."1eSs, all right, title lllld. int<rest of Borrower in 80d to insurance policies in force shall pass
to the purchaser.
5. Occupancy. Preservation, Maintenance and Protection of lbe Properly; 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, datnage 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 1080 is in default. Lender may take reasonable action to protect and
O/:4RQA) (960')
~ IAFHA{&'2I96)
Page 301 B
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preserve such vacant or abandoned Properly. 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 evideneed by the Note, including, but not limited
to, representations concerning Borrower's occupancy of lbe Properly as a priucipal residence. If this Security
Instrument is on a leasehold, Borrower shall comply wilb the provisions of the lease. If Borrower acquires fee title
to the Property, the leasehold and fee title sball 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 Properly, or for conveyance in place of condemnation, are
hereby assigned and sball 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
provi4ed 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 10 Borrower and Protection of Lender's Rights in the Property, Borrower sball pay all
governmental or municipal charges, fines and impositions that are not included in paragrapb 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 furnisb to Lender receipts
evide>ill:ing 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 lbere is a legal proceeding !hat 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 bas 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 lbe
Lender's opinion operate to prevent the enforcement of the lien; or (e) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender @terrnines !hat any
part of the Property is subject to a lien wbich may attain priority over this Security Instrumen~ Lender may give
Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the acti6ns set forth
above.wiJhinJO daysoflbe giving of notice.
8. Fees. Lender may collect fees and charges authorized by the Secretary.
',Grounds for Acceleration or Debt.
,(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 Instrument.
(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including Section 341(d)
of lbe Garn-St. Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j-3(d)) and with the prior
approval of the Secretary, require irmnediate payment in full of all sums secure-d by this Security
Instrument if:
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(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
=rdance 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 BUD Secretary. In many circumstances regulations issued by the Secretary will limit
Lender's rights, in lbe 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 permirted by
regulations of lbe Secret3Iy.
(e) Mortgage Not Insured. Borrower agrees that if this Security Instrument and the Note are not
determined to be eligible for insurance under the National Housing Act within 60 days from the date
hereof, Lender may, at its option, require immediate payment in full of all sums secured by this Security
Instrument. A wrirten statement of any authorized agent of the Secretary dated subsequent to 60 days
from the date hereof, declining to insure this Security Instrument and the Note, shall be deemed
conclusive proof of such ineligibility. Notwithstanding the foregoing, this option may not be exercised by
Lender when lbe unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance
premium to the Secretary.
10. 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 lbe 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 ohligations of
Borrower under this Security Instrument, foreclosure costs and reasonable and customary attorneys' 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 inunediate
payment in full. However, Lender is not required to permit reinstatement if: (i) Lender has accepted reinstatement
after the connnencement of foreclosure proceedings within two years immediately preceding the connnencement of
a current foreclosure proceeding, (ii) reinstatement will preclude foreclosure on different grounds in the future, or
(ill) reinstatement will adversely affect the priority of the lien created by this Security Instrument.
11. 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 origiual Borrower or ~er's successor in
interest. Lender shall not be required to commence proceedings against any successor in iDt'erest if" refuse to
extend time for payment or otherwise modify amortization of the sums secured by this Security Iiistrument by
reason of any demand made by the original Borrower or Borrower's successors in intereat. 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.
U. Succesaors 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(h). Borrower's covenants and agreements shall be joint and several. Any Borrower who
co-signs this Security Instrument but does not execute lbe. Note: (a) is co-siguing this Security Instrument only to
mortgage, grant and convey that Borrower's interest in the Property under the tenus 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 oilier Borrower may agree to cxtend, modify, forbear or make anyacconunodations with regard to thc terms of
this Security Instrument or the Note without that Borrower's consent.
"'R(IA) .....)
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13. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or
by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed
10 the Propeny Address or any other address Borrower designates by notice 10 Lender. Any notice 10 Lender shall
be given by first class mail to Lender's address slaled herein or any address Lender designates by notice 10
Borrower. Any notice provided for in this Securily Instrument shall be deemed to have been given 10 Borrower or
Lender when given as provided in this paragraph.
14. Governing Law; Severability. This Securily Instrument shall be governed by Federal law and the law of the
jurisdiction in which the Property is located. In the evenl that any provision or clause of this Security lnstrument or
the . Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrumenl or
the Note which can be given effect withoul the conflicting provision. To this end the provisions of this Security
Instrumenl and the Note are declared to be severable.
15. BOlTOwer's Copy. Borrower shall be given one conformed copy of the Nole and of this Security
Instrwrienl.
16. Hazardous Substances. Borrower shall not cause or permil the presence, use, dib"JlOsal, storage, or
release of any Hazardous Substances on or in the Property. Borrower shall nol do, nor allow anyone else 10 do,
anything affecting 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 Propeny of small quantities of Hazardous Substances that are
generally recognized to be appropriate to nonnal residential uses and to maintenance of the Property.
Borrower shall promptly give Lender written 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 actuaI knowledge. If Borrower learus, 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 lake all necessary remedial actions in accordance with
Envi;ronrnental 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
fonnaldehyde, 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 10 health, safety or environmental protection.
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NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
17. Assignment of Renls. Borrower unconditionally assigns and transfers to Lender all the rents and revenues
of the Property. Borrower authorizes Lender or Lender's agenls to collect the rents and revenues and hereby
directs each tenant of the Property 10 pay the rents to Lender or Lender's agents. However~rior to Lender's
notice 10 Borrower of Borrower's breach of any covenanl or agreement in the Security Instru:aJtilt. Borrower shall
collect and receive all rents and revenues of the Property as trustee for the benefit of Lender and BOhower. This
assignment of rents constitutes an absolule assignment and nol an assigrunent for additional security only.
. If Lender gives notice of breach to Borrower: (a) all rents received by Borrower shall be held by IlQrrower as
trustee for henefit of Lender only, 10 be applied to the sums secured by the Securily 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 nOI executed any prior assignment of the rents and has not and will not perform any act that
would prevent Lender from exercising its rights nuder 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.
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18. Foreclosure Procedure. If Lender requires immediate payment in full under paragraph 9, Lender may
foreclose tbis Security Instrument hy judicial proceeding. Lender shall be entiOed to collect aI] expenses incurred
in pursuing the remedies provided in tbis paragraph 18, including, but not limited to, reasonable attorneys' fees
and c:osts of tiOe 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 U.S.C.3751 el seq.) byrequesling a. foreclosure
commissloner designated under the Act to commence foreclosure and to sell the Property as provided in
the Act. Nothlng in the preceding sentence shall deprive tbe Secretary of any rights otherwise available to a
Lender under this Paragraph 18 or applicable Jaw.
19. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security
Instrument without 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 as 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 to a deficiency judgment against Borrower. the period of redemption from judicial sale shall
be reduced to 6 months. If the court fmds 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 paragraph 21 shall be construed to conform to the provisions of Sections 628.26
and 628.27 of the Code ofIowa.
22. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together
with this Security Instrument, the covenants of each sueb rider shall be incorporated into and shall amend and
supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security
Instrument. [Check applicable box(es)].
o Condominium Rider
o Planned Unit Development
D Growing Equity Rider
D Graduated Payment Rider
o Other [specify]
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BY SIGNING BELOW, Borrower accepts and agrees to the tenns contained in this Security Instrument and
in anyrider(s) executed by Borrower and recorded with it.
Witnesses:
STATE OF JOWA,
'--'r'-l\ A. t~ '" , ~n Q". ^-
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321 VALERn
DUBUQUE. n 52001
(Seal)
~Borrower
Dubuque
County ss:
, before me, a Notary Public in Ibe
On this 15th day of September , 1998
StateofIowa, personally appeared Marl a J. Sal5er
to tile personally known to be the person(s)
acJQiowledged that she executed the same as
My Commission Expires: <\\'d-t\o..t
il T\-1f : ~o~ , LINDH BUDDE I
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named in and who executed the foregoing instrument, and
her voluntary act and deed.
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