Claim Deutsche Bank vs. City of DubuqueIN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY
DEUTSCHE BANK NATIONAL TRUST
COMPANY, AS TRUSTEE OF AMERIQUEST
MORTGAGE SECURITIES, INC. ASSET BACKED
PASS THROUGH CERTIFICATES, SERIES 2006-
M3 UNDER THE POOLING AND SERVICING
AGREEMENT DATED AS OF SEPTEMBER 1,
2006, WITHOUT RECOURSE,
vs
Plaintiff,
BRIAN YOUNG, KAREN YOUNG, STATE OF
IOWA, CITY OF DUBUQUE, AND PARTIES IN
POSSESSION,
Defendants.
CASE NO.
ORIGINAL NOTICE
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TO THE ABOVE-NAMED DEFENDANT~;~ ~ Dab~que
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).
a
Clerk of Court
Dubuque County Courthouse
Dubuque, Iowa
IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO
PROTECT YOUR INTERESTS.
IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY
DEUTSCHE BANK NATIONAL TRUST
COMPANY, AS TRUSTEE OF
AMERIQUEST MORTGAGE SECURITIES,
INC. ASSET BACKED PASS THROUGH
CERTIFICATES, SERIES 2006-M3 UNDER
THE POOLING AND SERVICING
AGREEMENT DATED AS OF
SEPTEMBER I, 2006, WITHOUT
RECOURSE,
Plaintiff,
vs
BRIAN YOUNG, KAREN YOUNG, STATE
OF IOWA, CITY OF DUBUQUE, AND
PARTIES IN POSSESSION,
Defendants.
FORECLOSURE PETITION
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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 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 ORTWO-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:
1. 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.
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2. The Plaintiff, is a company duly authorized to transact business in the United
States of America.
The Defendants, Brian Young and Karen Young may be a married couple and are
residents of Dubuque County.
4. The Defendant, State of Iowa, is made party to this cause of action because it may
claim some right, title, or interest in the property which is the subject of this
action by virtue of judgments FECR060111 and DUSTWE765290. 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.
The Defendant, City of Dubuque, is made party to this cause of action because it
may claim some right, title, or interest in the properly which is the subject of this
action by virtue of judgment DUSTWE765290. 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. 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.
7. On or about July 25, 2006, the Defendants, Brian Young and Karen Young,
executed and delivered to Argent Mortgage Company, LLC, one certain
Promissory Note in the principal sum $234,373.00. A copy of said note is attached
hereto as Exhibit "A" and by this reference incorporated herein.
To secure payment of the Note, the Defendants, Brian Young and Karen Young,
executed and delivered to Argent Mortgage Company, LLC, one certain Purchase
Money Mortgage dated July 25, 2006, which Mortgage was filed on September
25, 2006 in Instrument No. 2006-14890 of the Dubuque County Recorder's
Office, upon the following described real estate, to-wit:
Lot Twenty-One (21) of Block One (1) of Southern Hills Subdivision II, in
Sections 17 and 18, Township 88 North, Range 3 East of the 5`h P.M., according
to the recorded plats thereof.
9. A copy of the Mortgage together with the Recorder's Certificate thereon is
attached hereto as Exhibit "B" and by this reference incorporated herein.
10. Plaintiff is the successor by assignment from Argent Mortgage Company, LLC.
11. 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.
12. The Defendants, Brian Young and Karen Young, have failed to pay the note and
interest thereon as provided by the terms of the Note.
13. By reason of the failure to pay the Note 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.
14. The unpaid balance due on the Note after allowing all credits due to the
Defendants is the sum of $234,230.53, which is the principal balance, plus interest
to February 6, 2007 in the amount of $11,$36.80. Interest accrues on the said sum
at the rate of $76.45 per day.
15. 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
$473.16, and recoverable balance $30.00 to all which sums the Plaintiff is entitled
to a judgment against the property with interest at the rate of 11.75 % 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.
16. The Plaintiff is the owner and holder of the Note and Mortgage, due demand has
been made for payment, and payment has been refused.
17. Under the terms of the Mortgage a receiver may be appointed.
18. The Plaintiff gave a Notice of Right to Cure and more than 30 days have elapsed
JlllVli t..e r~ca..e was given. ~--~ copy o~ ~atd ivutice is atiacned'nereto as Exhibit
"C" and incorporated herein by this reference.
19. The Plaintiff hereby waives their right to a deficiency judgment.
20. Under the terms of said Note and Mortgage, the Defendants, Brian Young and
Karen Young have 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 sum of $234,230.53, which is the principal balance, plus interest to February 6,
2007 in the amount of $11,836.80. Interest accrues on the said sum at the rate of 11.75% per
annum and in the amount of $7b.45 per day, for the costs of this action, including Report of Title
costs of $200.40, accumulated late charges $473.16, recoverable balance $30.00 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 July 25, 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 Sheriffs sale, and
that from and after said sale under special execution, the right, title, Iien 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 sub ed,
DLJNAKEY ~T;P, P.C.
AT0006893
531 Commercial St., Ste. 700
P.O. Box 2363
Waterloo, IA 50701
319-232-3304
319-232-3639 (faxl
Attorney for the Plaintiff
Loan Number. 0098820558 - 9701
ADJUSTABLE RATE NOTE
' (LIBOR index -Rate Caps)
THOS NOTE CONTAINS PROVISIONS ALLOW{NG 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.
EXHIBIT
July 25, 2006 Irvine CA
pate city Slate
8171 SOUTHERN HILLS CIRCLE, DUBUQUE, IA 52003 3
Property Address
~ 1. BORROWER'S PROMISE TO PAY
~ In return for a loan that I have received, I promise to pay U.S. $234,373.00 (this amount is celled "pdnclpal"), plus
interest, to the order of the Lender. The Lender is Argent Mortgage Company, LLC.
I understand that the tender may transfer fhfs Note. The Lender or anyone who takes this Note by transfer and who
Is entitled to receive payments under this Note is called the "Note Holder "
2. INTEREST
interest wilt be charged on unpaid principal until the full amount of principal has been pa{d. i wilt pay interest at a
yearly rate of 11.750 %. This Interest rate I will pay may change in accordance with Section 4 of this Note. The
interest rate required by this Sectlon 2 and Section 4 of this Nota Is the rate t will pay both before and after any
default described in Sectlon 7(B) of this Note.
3. PAYMENTS
(A) Time and Place of Payments
I wil{ pay principal and interest by making payments every month.
I will make my monthly payments on the first day of each month beginning on August 1, 2006 .
t will make these payments every month unlit I have paid all of the principal and Interest and any other charges
described below that f may owe under this Note. My monthly payments will be applied to interest before principal.
If, on, July 1, 2036 , I still owe amounts under this Note, I will pay those amounts in full on that date, which fs
called tfie "Maturity pate."
I will make my payments at: 505 City Parkway West, Sutte 100, Orange, CA 92868
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. $ 2,365.79. This amount may change.
(C) Monthly Payment Changes
Changes in my monthly payment will reflect changes fn the unpaid principal of my loan and In the Interest rate
that 1 must pay. The Note Holder will determine my new Interest rate and the changed amount of my monthly
payment in accordance with Section 4 of this Note.
4, INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
T ha interest rate i will pay may change on the first day of, Juty, 2008 and on that day every shah 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 wilt be based on art Index. The "index" is the average of
Interbank offered rates for six-month U.S. doAar-denominated deposits in the London market ("LIBOR"), as
pub{ished In The Wall Street Journal. The most recent Index figure available as of the date 45 days before the
Change Date is called the "Cun-ant Index"
If at any point in time the Index is no longer available, the Note Holder will choose a new Index that is based upon
comparable information. The Note Holder will give me notice of this choice.
(C) Calcutatlon of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding six narpantage point(s)
(6.000 ) rn fhe rurrcnt ;,-,dex. ; nq ivoca Holder wilt then round the result of this addition to thre nearest one-e{ght
of one percent (0,125%). Subject to the f(mits stated in Section 4(D) below, fhfs rounded amount will be my new
interest race untl! 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 al the Change Date in full on the
Maturity Date et my new Interest rate in substantially equal payments. The result of this calculation will be the
new amount of my monthly payment.
Initials:
201•tUNiV (Rm. 03105) 1 Dr3
07125!2006 2:3225 PM
Loan Number: 0098820558 - 9701
{D} t_tmits on Interest Rate Changes
The interest rate I am required to pay at the first Change Date will not ba greater than 13.750 °!o or less than
11.750°l0. Thereafter, my interest rate will never be increased or decreased on any single Change Dale by more
than One percentage point(s) 1.OD0°!o) fram the rate of interest i have bean paying for the preceding six months.
My interest rate will never be greater than 17.750 % or less than 11.750 %.
(E) Effective Date of Changes
My new Interest rate will become effective on each Change Dete. 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 ag91n.
(F) Notice of Changes
The Note Holder will deliver or mail fo 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 indude Information required by law to be
given me and also the title and telephone number of a person who wilt answer any question I may have regarding
the notice.
5. PREPAYMENT pRMLEGE
1 may repay all or any part of the principal balance of this Note In accordance with the terms of this Section without
incurdng a prepayment charge. A "prepayment" Is any amount that t pay to excess of my ragulady scheduled
payments of principal and interest that the Lender will apply to reduce the outstanding principal balance on this Note
in accordance with this Section.
(A) ApplJcation of Funds
I agree that when I Indicate In writing that I am making a prepayment, the Lender shell apply funds it receives in
accordance with the order of application of payments set forth in Section 2 of the Security Instrument.
(B) Monthly Payments
If I make a prepayment of an amount less than the amount needed to completely repay all amounts due under this
Note and Security Instrument, my regularly scheduled payments of principal and interest will not change as a
result.
6. LOAN CHARGES
If a law, which applies to this loan and which sets maximum loan charges, Is fina)ly interpreted so that the Interest or
other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (I) any
such loan charge shalt be reduced by the amount necessary to reduce the charge to the permitted Ilmit; and (iI) any
sums already collected from me which exceeded permuted limits will be refunded to me. The Note Holder may
choose to make this refund by redudng the principal I owe under this Note or by making a direct payment tome. If a
refund reduces the principal, the reduction will be treated as a partial prepayment
7. BORROWER'S FAILURE TO PAY AS REQUIRED
(Ai Late Charges for Overdue Payment
If the Nota Holder has not received the full amount of any monthly payment by the and of fifteen
calendar days after the data it fs due, t will pay a late charge m the Note Hoiden.
The amount of the charge wiN be 5,000 °fo of my overdue payment of principal and interest.
I will pay this late charge prompGy 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; 1 will be In detauit.
jc} Notice of Default
If f am fn default, the Note Holder may send ma a written notice telling ma that 'rf 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 which
has not been paid and aN the Interest that I owe on that amount. The date must be at least 30 days after iha
date on which the notice is delivered or malted to me.
(D} No Waiver by Note Holder
Even tf, 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 I am in default at a later time,
(E) Payment of Mote Hoidens 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 taw_ Thnga gvpanceg rnclu,r° r^r axar•-
- „Nle, r=aSC~riabro aCioriieys' fees.
6. GIVING OF NOTICES
Unless appAcabte law requires a different method, any notice that must be given to me under this Note wilt be given
by delivering it or by mailing it by first class mai! to me at [he Property Address above or at a different address if I
give the No[e Holder a notice of my different address.
Any notice that must be given to the Note Holder under this Note will be given by melting it by first class mail to the
Note Holder at the address stated In Section 3(A) above or at a different address ff I am given notice of that
different address.
Q°,-2UNIV (Rev. 03m5) 2 or 3 InlUels:
S 006 2:3225 PM
_ -- ....~.... w rtlrtrirll ~~ ~ ~
----
Loan Number: 0098820558 - 9701
9. OBLIGATIONS OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each person is fully and personalty obligated to keep ail 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. The Note Holder may enforce its rights under this Note against each person (ndlvidually 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 fhe 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 Nota Is a untfonn Instrument with limited variations in some jurisdictions. in addition, to the protections given to
the Note Holder under this Note, A Mortgage, Deed of Trust or Security Deed {the "Security Instrument"), dated the
same as this Note, protects the Note Holder from possible losses which might result if l do not keep the promises
that 1 make In this Note. That the Security Instrument describes how end under what conditions 1 may ba required to
make immediate payment In full of alt amounts I owe under this Note. Some of those conditions are described as
follows:
Transfer of the Property or a Beneficial Interest In Borrower. If al! or any part of the Property or any interest in
It fs sold or transferred (or if a beneficial Interest In Borrower is sold or transferred and Borrower is not a natural
person) without the Lenders prior written consent, Lender may, at Its option, require immediate payment in full of ail
sums secured by this Security Instrument However, this option shat) not be exercised by Lender if exercise Is
prohibited by federal law as of the date of fhis Security Instrument Lender also shall not exercise this option if:~ (s)
Borrower causes to be Submitted to lender Information required by Lander to evaluate the Intended transferee as if a
new loan were being made to the transferee; end (b) Lender reasonable determines that Lenders security wilt not be
Impaired by the loan assumption and that the dsk of a breech 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 of Lenders
oonsent to the loan assumption. Lender may also require the transferee to sign en 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 Security instrument. Borrower will continue to be obligated under the Mote and this Security Instrument unless
Lender releases Borrower in wilting.
If Lender exercises the option to require Immediate payment in full, Lender shall give Borrower notice of
accaleratlon. The notice shall provide a period of not less than 30 days from the date the notice Is delivered or
mailed within whlgh the Borrower must pay ail 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.
Oral agreements, promises or commitments to tend money, extend credit, or forbear from enforcing repayment
of a debt, including promises to extend, modify, renew or waNe such debt, are not enforceable. This written
agreement contains ail the terms the Borrower(s) and the Lender have agreed to. Any subsequent agreement
between us regarding this Note or the instrument which secures this Note, must be in a signed writing to be
legally enforceable.
vvi7NES5 THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED.
(Seat)
orrower tCAREN UNG
~C~'"' " (Seal)
Borrower BR1AN DUNG
(Seal)
Borrower
(Seat)
Borrower
20~~UNN (Rm aws~ 3 or 3 07252006 2:3225 PM
I~1{~C11~11181IN~l11111111111~111~~lIIIIlll~lflf~~ll~1i1811~
Ooc ID: 005503100019 Type: OEN
Recorded: 09/25/2006 at 12:59:40 Ptt
Fee Amt: 597,00 Pape 1 of 19
Dubuque County Iowa
l~~~ Fi1e2006~000614890
3a t
EXHIBIT
b
- ... ........ - ----...-.---..-... [Space Abovc This [,ix For Recording Dstal ------------------------------ • 9
Prepared By:
Argent iriortgago Company, I,LC
Joseph Gleason
2603 Main Street,Zrviae, CA 92614
Return To:
Electronic C)osing Service
nc.
dba e-Title
290 Bilmar Dr
Pittsburgh, PA 15205
LC-tUCI teat uc tU:a~ua wa yubv r. -
MORTGAGE
nEFINITlONS
Words used in multiple sections of this document are de&ned below and other words are defined in
Sections 3, S l , 13, 18, 20 and 21. Certain rules regarding the usagc of words used in thss document aze
also provided in Section l6.
(r'~) "Security instrument" means this document, which is dated ably 25, 200b >
together with al! Riders to this document.
(3) "Borrower" is BRT.At~[ Y0~3NG and KAR@t YODZiG, Buaband and Wife, As Joint
Tenants With Ettll Rights of Survivorship, sad
Not As Tenants In Common
Borrower is the mortgagor under this Sccuriry Instrument.
fOWA-Single Parody-Famie MaelFreddie Mac UNIFORM INSTRUMENT
~, -6(tA)~~cxj
Pape 1 of 15 Inifia y5:~~
d06-Olia (Ot120U6)Rcv.03
0098820558 - 9701
Form 3U16 1101
0')/25/2006 2:32:25
C *~f/
. _.--
9 7-
(C)"Lender"is Argent Mortgage Company, LLC
Lender is a Corporation
organized and existing under the laws of Delavrare
Lender's address is 3 Park Plaza - 10th Floor Irvine, CA 92614
Lender is the mortgagee under this Security instrument.
(D) "Note" means the promissory note signed by Bcarower and dated July 25, 2006
The Note states that Borrower owes Lender t.~o hundred thirty-four thousand three
hundred seventy-three and 00/100 Dol[azs
(U.S. S 234, 373.00 )plus interest. Borrower has promised to pay this debt in regular Periodic
Payments and to pay the debt in full not later than July 1, 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 Flome Rider
0 Balloon Rider ^ Planned Unit Development Rider ~ 1-0 Family Rider
[~ VA Rider ~ Biweekly Payment Rider [] Other(s) [spacaf3'l
(Il) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations,
ordinances and administrative rubs and orders (that have the effect of law) as well as all applicable final,
non-appea)able judicial opinions.
(I} "Community Association Does, Fees, and Assessments" mcaas all dues, fees, assessments and other
charges that are imposed on Borrower or the Property by a condominium association, homeowners
association or similar organization.
(,n "IIeettronie [finds Transfer" means any transfer of funds, other than a transaction origanatcd by
chock, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic
-nstrument, computer, or magnetic tape so as to order, instruct, or authorize a financial iastitution ro debit
or credit an account. Such term includes, but is not limited tor, point-of-sale transfers, autnn~ated teller
machine transactions, transfers initiated by tole; here, ::Zre tra:,s ~-.s, a~u auiomaieti clearinghouse
transfers.
(1C) "Escrow Items"means those items that aze described in Sectioo 3.
(L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid
by any third party (other than insurance proceeds paid under the coverages described is 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
valueand/or condition of the Property.
(M} "Mortgage Insurance" means inswance protecting Lender against the nonpayment of or default on
the irnW,.
(N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the
Note, plus (ii) any amounts undo Section 3 of this Security Instrument.
0098820558-9701
~~~
~~Mlc~s1 a„~eza,s t=o~r-i3o1s ~x1t
07/25 2:32:25
oos-ozu totnoo6lx~.o3
(O) "RESPA" means the Real Estate Settlement Procedures Act (t2 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 ar 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
k> a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage
loan" under RESPA.
(P} "Successor itt 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 lnstntment.
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 perforrnancc 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 sate, the following described property located in the
Country of Dt78IIQIIE
[Type of Recrading J~aiadictiaoJ [Nano of RocordinY huisdictiw)
ERHISZT A ATTACS® HERETO AHD 29t<DE A PART HERETP:
Pazcel ID Number: 16-18-277-003
8171 30[TrHERN HILLS CIRCLE
DDSUQUE
("Property Address"):
which currentty has the address of
(Sa~xr}
(Cityl, Inarg 5Enn3 IZiN~w'eJ
TOGETHER WITH all the improvements now or hereafter ere~.ed on the propestty, and aJ)
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
Securiy Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has
the right to grant grid convey the Property and that the Property is unencumbered, except for encumbrances
of record Borrower warra_Ttc ?nd wi!! def ~,d g".c~a;ly the tide iv int noperty 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.
C(IA) iOOO51
m
00988 5 - 9701
~~
Pape 7 d 15 p7/25 /20 32:25 FoRn 3016 trot
d06-03ia (Ol(2006)Rev.03
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Prinagal, 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 lau charges due under the Nou. Borrower shall also pay funds for Escrow Items
pursuant to Section 3. Payments due under rbe Note and this Setvrity 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
duo 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
cashiers chccit, 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 arc dcemed 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 t S.
Lends may return any payment or partial payment if the payment or partial payments are insufficient to
bring the Loan current. Lends 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 futurt, but Lrnda is not obligated to apply such payments at the time such payments aze
accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay
interest on unapplied fiords. Lender may bald 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
principa! 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 6rom making payments due under
the Note and this Setanity Instrument or perforating the covenanu and agreements secured by this Security
Instrument.
2. Applieat3on of Payments or Proceeds. Except as otherwise described in this Section 2, all
payments accepted and applied by Lender shall be applied in the following order of priority. (a) interest
due under the Note; (b} principa! due under the Nou; (c} amounts due under Section 3. Such payments
shall be applied to cacti Periodic Payment in the order in which it became due. Any remaining amounts
shall be appliod first w late charges, second to any other amounu due under this Security Insttvmcnt, and
then to reduce the principal balance of the Note.
If Lrndcr 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 repaymrnt 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 fi,:Il pa-y~~ea,t of one or
more Periodic Paymrnts, such excess may be applied to any lau charges due. Voluntary prepayments shall
be applied fuse to any prepayment charges and then as described in the Nott.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds w principal due under
the Note shall not extrnd or postpone the due date, or change the amount, of the Periodic Payments.
3. Fonds for Escrow ltetns. Borrower shall pay ro Lender on the day Periodic Payments are due
under We Note, until the Nou is paid in full, a sum (the "Funds") to provide for payment of amounts doe
for: (a) taxes and assessments and other items which can attain priority over this Security Inssrumeat as a
lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c)
premiums for any and ail i^~:.•a:.ce :,:y~irai uy Laiucr under Section 5; and (d) Mortgage Insurance
premiums, if any, or any sums payable by $orrowcr to Lrnder in lieu of the payme~ of Mortgage
Insurance premiums in.acco7dance with the provisions of Section !0. 'Chew items are called "Escrow
Items." At origination tx at any time during the term of the Loan, Lender may require that Community
0098 20 58 - 9701
~nrus~c
(/~${tA) IOOO51 Pepe4d IS 07 /25/20~C: :25 Form 3Qt8 1lut
D06-041A (Oll2006)Rav.a 3
Association Ducs, Fees and Assessments, if any, be escrowed by Bea-rower, and such dues, fors and
assessments shall be an Esaow Item. Borrower shall promptly famish to Lender all notices of amounts to
be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives
Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
obligation to pay to Leader Funds for any or all Escrow Ieeats at any time. Any sucb waiver may only be
in writing. In the event of such waiver, Borrower shalt pay directly, when and where payable, the aanounts
due for any Escrow Items for whicb payment of Funds has been waivod by Lender and, if Lender requires,
shall furnish to Lender receipts evidencing such payment within sucb time period as Lender may requue.
Borrowers obligation to stake such paymenu and to provide receipts shall for all purposes be deemed to
be a covenant and agreement eantained in this Security instrument, as the phrase "covenant and agreement"
is used in Suction 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 tray exercise its tights 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, Botrowa shall pay to Lender all Funds, and in
such amounts, that arc then required under this Suction 3.
Lender may, at any time, colloct 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 curretrt data and
reasonable estimates of expenditures of future Esaow Items or otherwise in accordance with Applicable
Law.
The Funds shalt be Geld in an institution whose deposits are ittsttred by a federal agency,
insWmentality, 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 lterns no late 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, boweva, that interest
shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the
Funds as required by RESPA.
If there is a surpbs of Ftmds held in escrow, as defined under RESPA, Lender shag acxattnt W
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
twelve monthly payments. if there is a deficiency of Funds held in escrow, as defined under RESPA,
LcridGr snail notiry Borrower as required by RESPA, and Harrower shall pay to Lender the amount
necessary to take up the deficiency in accordance with RESPA, but in no more than twelve monthly
payments.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly rofwnd
to Borrower any Funds held by Lender,
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions
attributable to the Property which can attain priority over this Security Instrument, leasehold payments or
ground rents on the Property, if any, and Community Association hues, Fees, and Assessments, if any. To
the extent that these Items are Escrow ltems, Borrower shall day tF, ~ ~, the ~ ,,. ~,~ YYGP~~ u3 ~--`'Vn ~.
Borrower shall promptly disebazge 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, but only so tong as Borrower is performing such agreement; (b) contests the lien in good faith
0098 0 58 - 9701
~~
~~~6(IA-taooi~a, vape6d15 07/25/2006/,2• ;25 F9fTA~48 3199
D06-OS1A (01ROf16)Rev.03
by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to
pre^vcnt the enforcement of the Lien while those proceedings are pending, but only until such proceedings
arc conctudrd; ar (c) secures from [beholder of the lien an agreement satisfactory to Lender subordinating
the lien to this Security Instrument. If Lender dctennines that any part of the Property is subject to a ticn
which can attain priority over this 5r~curity Instrument, Linder may give $orrowcr a notice identifying the
lice. Within l0 days of the date an which that naiice is given, Borrawcr shalt satisfy the lien or take one or
more of the actions sit Earth shave in this Section 4.
Lender may require $orrowez to pay a one-time charge for a real estate tax verification and/or
reporting service used by Lender in connection with this Loan.
5. Property Insurance. Harrower shall keep the improvements now existing ar hereafter erected on
the Property insured against toss by Ere, hazards ine}uded within the term "extended coverage," and any
other hazards including, but not limited to, earthquakes and floods, fur which Lender requires insurance.
This insurance shalt be maintained in the amounts (including deductible levers) and far the periods that
Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of
the Loan. The ittstuanct carrier providing the insurance shall 'be cbostn by Burrower subject to Lender's
right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Cruder may
require Acxrowcr [o pay, in connection with this I.aan, either: (a) a one•tirnt charge far flood zone
determination, certificaaon and tracking services; or (b) a one-time charge for flood zone determination
and certification services and subsequent charges each time resrtappings ar similar charrges occwr which
treasonably might affCCt such determination or ccrtiftc~tion. Horrower shall also be responsible for the
payment of any fees imposed by rite Federal ]~mergency Management Agency in coaueetion with the
review of arty #2ood zone dctezntination resulting from an objection by Htxrowtr.
If Borrower fails to maintain any of the caveragcs dtscribcd above, Lender may obtain insuranae
coverage, at Lendtx's option and Borrower's expense. Lender is under no obligation to purchase airy
particular type or amount of coverage. Therefore, such eoveragt shalt cover Leader, but might ar trtight
not protxt Borrower, Borrower's equity in t}rc Prppetty, or the conttnts of the Property, against any risk,
hazard or liability and might provide greases or lesser aaverage than was previously in efl`*.et. &xrawer
acknawtedgca that the cast of the insurance coverage so obtained' might sigaiftcantty exceed the cost of
insurance that Horrower cou}d have obtained. Any amounts disbursed by Lender under this Section 5 shall
become additional debt of 13orrowa secured by Phis Security instrument. These amounts shall bear interest
at the Notc rate from the date of disbursement and shall be payable, with such inteccst, upon notice from
Linder to Borrower requesting paymetrir
All insurance policies required by Lender and renewals of such policies shalt be sub}eet to Lender's
tight to disapprove such policies, shall include a standard rnartgage clause, and shall Hams Lender a~
mortgagee and/or as an additional }ors payee. Lender shalt have the right to hold the *,!C}iiGic6 and renewal
certificates. if Lender requires, Borrower shall promptly give to L-endue ail receipts of paid premiums and
renewal natives. if $orrawer obtains any form of ir~stuance coverage, not otherwise required by Lender,
far damage ta, or dtsiructian cf, the Property, such policy strait intrude a standard mortgage etatue and
shalt name Ls;<;uer as rnprtgaget and/or as an additional lass payee.
In the cvrnt of toss, Harrower shall give prompt notice to the ittsuxanee carrier and Landes. Leader
may make proof of loss if not made promptly by $orrower. Unless Lender and }3orrower otherwise agree
in writing, any instrranct proce>~d.s, whether or not the undtxlying insurance was required by Lender, strait
be apptied to restoration or repair of the Property, if the restaration or repair is ecouotnicatty f~ to and
Lender's security is not lcssenai. During such repair and restoration period., L~der shall have the right w
hold such insurance proccals urtti} Leader has had an or~r<'~iity to itsspcct such Property to ensure the
work has boen co[np[eted to Lender's sa.;sfaction, provided that such inspection shall be undertsken
promptly. Lender ma; disburse proceeds for the repairs and restoration in a single payment or in a series
pf Y;;,gress payments as ttst work is completed. Unless an agreement is rrtade in writing or Appticab}c I,,aw
009 t3SS6 - 9702
~~
,~j~t~-) ro~37 des ar rs p7j25j200 :25 Form 30th tt01
m
1305-06LA (o}t200bjRev.O)
,. , ,
requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any
interest or comings 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 Barowct. If
the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance
proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in
Section 2.
if Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the
insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 3I)-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 inswance
proceaLs 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 We Property, insofar as such rights are applicable to the
coverage of the Property. Lender may use the insurance proceeds tither to repair or restore the Property err
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 Bcarower's principal
residence within 60 days after the execution of this Security Instrument and shag continue to occupy the
Property as Borrower's principal residence for at least one year after the date of occupancy, unless Leader
otherwise agrees in writing, which consent shall not be unreazanably withheld, or unless extenuating
circumstances exist which are bryond Borrower's control.
7. Preservation, Maintenance and Protection of We Property; Inspections. Harrower shall not
aestray, damage or impair the Property, allow the Property u, deteriorate or commit waste on the
Property. Whether or not Borrower is rtsiding in the Property, Borrower shall maintain the Property in
order to prevent the Property from deteriorating or decrt~sing in value due to its condition. Unless it is
determined pursuant to Section 5 that repair or restoration is not txonomically feasible, Borrower shall
promptly repair the Property if damaged to avoid fiultter dt:tetioratian or damage. If insurance or
condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
shall be responsibic for repairing or restoring the Property only if Lends has releasod proceeds for sack
purposes. Lender may disburse proceeds for the repairs and restoration in a single payment err in a series of
progress payments a_s the work is completed. If the insurance or condemnation proceeds aze not sufficient
to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the catnpietion 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 imnrovetnettt_c nn the Frop~i, I.e ndw s: nll Svc
borrower notice at the time of or prior to such an intt~ior inspection spxifying such reasonable cause.
S. Borrower's Loan Application. Borrower shall be in default if, during the Loaa application
process, Borrower or any persoru or entities acting at the direction of $czrower err with Borrower`s
' [tnowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender
(or faiiod to provide Lender with material information) in connection with the Loan. Material
representations include, but are not limited ter, representations concerning Barower's occupancy of the
' Property as 8orrowcr's principal residence.
9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument [f
(a) Borrower falls to aerfOrrr7 fir rnyw,,yr~~ 'orv a~-;,~cTueriu ws~caincd in ibis Security Instttrmtnt, (b) there
is a legal proceeding that might significantly affect Lender's interest in the Property andlor 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 [nstrument or to enforce laws or
i
D09~ 0 58 - 9701
mum
~'61~`I l00QSl Pm'7 °~'s 07/25/200 :25 ~O1Tt 3018 1(61
{ D06-071A {OIROO6~tcv.03
,~
regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is
reasonable or appropriate to protect Lender's interest in the Property and rights under this Security
Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing
the Property. Lender's actions can include, but are not limited to: (s} paying any sums secured by a lien
which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including
its scarred 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 Gave utilities Keened
on or off. Although Lender may take action under this 5oction 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 alI
actions authorized under this Section 9.
Any amounts disbwsed by Lender under this Section 9 shall become additional debt of Borrower
secured by this Security Instrument. These amounts shall bear interest at the Nou rate froth the date of
disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
payment.
If ibis Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the
Icase. if Borrower acquires fee title to the Property, the leasehold and the fa tide shall oot magc unless
Lender agrees to the merges in writing.
i0. Mortgage Insurance. 1f Lender required Mortgage tnsurance as a condition of malting the Loan,
Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason,
the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
previously provided such insurance and Borrower was required to make sepazatety designated payments
toward the premiums for Mortgage Insurance, Btarower shall pay the premiums required to obtain
coverage substaz-tially equivalent to the Mortgage Insurance previously in effect, at a cost substantially
equivalent to the oust to Borrower of the Mortgage Insurance previously in effect, from an alternate
mortgage insurer selxed by Lender. if substantially equivalent Mortgage Insurance coverage is not
available, Borrower shall continue to pay to Lender the amount of the separately designated payments that
were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain thess
payments as anon-refundable loss reserve in lieu of Mortgage Insurance, S~rch loss reserve shall be
non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall hat 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 Lends requires)
provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires
separately designated payments toward the premiums for Mortgage Insurance. If Lender roquircd Mortgage
Insurance as a condition of making the Loan and Borrower was required to make separately designated
payments toward the premiuums for Mortgage Insurance, Borrower shall pay the premiums required to
maintain Mortgage Insurance in effect, or to provide anon-refundable loss reserve, until Lwder's
requirement for Mortgage Insurance ends in accordance wiW any written agreement between Borrower and
Lender providing fot such termination or until termination is required by Applicable Law. Nothing in this
Section 10 affects Borrower's obligation to pay i^.t,~.est zt the, ra'w pror~u~ ru wC r~ioie.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it
may incur if Borrower does not repay the Loan as agreed. Borrower is not a parry to the Mortgage
Insurance.
Mortgage insurers evaluate their total risk on all such insurance in force from time w time, and may
enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements
are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to
these agreements. These agreements may require the mortgage insurer to make payments using any source
of funds that the mortgage insurer may have available (which tnay include funds obtained from Mortgage
Insurance premiums).
4. ~.~aveTiii~~~w, UG11UG7, any purchaser of the Note, another lrlStrfef, any rC1nSllreC,
any other entity, or any affiliate of any of the foregoing, tray receive (directly or indirectty) 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 insuress risk, or reducing losses. If such agreement
4U9 558 - 9701
wus
~-sl~+) ro~si °epsB of s 07/25/2006 3 ~ 25 Fo+m 3018 1101
DO6-08IA (O l /2006)Rev.01
~- ---
provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the
premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further:
{a) Any such agreements will not aifeet the amounts that Borrower bas agreed to pay for
Mortgage Insurance, or any other terms of the Loan. Sock agreements will not increase the amount
Borrower will owe [or Mortgage Insurance, and they will not entitle Borrower to any retnnd_
(b) Any such agreements will not affect the rights Borrower bas - if any -with respect to the
Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights
may include the right to receive certain disclosures, to request and obtain cancellation of the
Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to recetve a
refnad of any Mortgage Insurance premiums that were unearned at the time of such cancellation or
termination.
ll. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
assigned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of
the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
During such repair and restoration period, Lends shall have the right to hold such Misccllancous 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 agretment is made in writing or Applicable Law requires interest to be paid on such
Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would
be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument,
whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
applied in the order provided for in 5edion 2.
In the event of a total taking, destruction, or lass in value of the Property, the Miscxllanoous
Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
the excess, if any, paid to Brower.
In the event of a partial taking, destruction, or loss in value of the Property in which the fair mazket
value of the Property immediately before the partial taking, destntction, or loss in value is equal to or
greater than the amount of the sutras secured by this Security Instrument immediately before the partial
taking, destntction, or loss in value, unless Borrower and Lender otherwise agree in writing, the stuns
secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds
multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
partial 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 Borrower.
In the evert 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 We 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 Sectuity Inst~umeatt whither er net the s.:us ere thti~ uve.
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,
Harrower fails to respond to Lender within 30 days after the daft the notice is giver., Lender is authorized
to collect and apply the Miscellaneous Proceeds tither to restoration or repair of the Property or to the
sutras secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party
that owes Botiower Miscellaneous Proceeds or the party against whom Brower has a right of action in
regard to Miscellaneous Proceeds.
Borrower shall be in default if any action of proceeding, whether civil or criminal, is begun that, in
Lender's judgment, could result in forfeiture of the Property or other material impairnnent of Lender's
rnterM ~.. the Atn...a., ... ~._ ~__ ~ •.
r.....J ... ;.g,,w iinuci alts Security instrument. torrower 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
in~tpairment of Lender's interest is the Property or rights under this Security Instrument. The proceeds of
0098 20 58 - 9701
~x
~S(tAl tooos~ aepn B d 15 07/25/200 : 25 form Sots trot
DO6-091A (OIt2006}Rev.03
any award or claim for damages that aze attributable to the impairment of Lender's interest in the Property
aze hereby assigned and shall be paid w Lender.
All Miscellaneous Proceeds that are not applied to restoration or rcpau of the Property shall be
applied in the order provided for in Section 2.
12. Borrower Not Released; Forbearance By Leader Not a Waiver. Extension of the time for
payment or modification of amortization of the sums secured by this Security Instrument granted by [,ender
to Borrower or any Successor in Interest of Borrower shall not operate io release the liability of Brarower
or any Successors in Interest of Borrower. Lendea shall nat be required to commence proceedings agaitut
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 trsade 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 Wird 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-sigrsers; Successors and Assigns 13oond, Borrower covenants
and agrees that Barrowe~s obligations and liability shall be joint and several. However, any Borrower who
co-signs t8is Security Instrwnent but does not execute the 1~Fote (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 We
terms of this Security Instrument; (b) is not personally obligated to pay We 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 consort.
Sub}act to the provisions of Section 18, any Successor in Interest of Borrower who assumes
$orrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain
alt of $orrower's rights and benefits under this Security Instrument. Borrower shall not be released from
Borrower's obligations and liability under this 5ecuriry 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
$orrower's default, for the purpose of protecting Lender's interest in the Property and rights under this
Security Instrument, including, but not Limited to, attorneys' fees, property inspection and valuation fees.
In regard to any other fees, the absence of express authority in this Security instrument to charge a specific
fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lendex may not charge
fees that are expressly prohibited by this Security Instrument or by Applicable Law.
If the Loan is subject to a law which sets maximum bars charges, and that law is finally interpreted so
that We interest or other loan charges eolFected or w be collected in connection with the Loars exceed the
permitted limits, then: (a) any such loan charge shalF be reduced by the amount necessary to reduce We
charge to the permitted limit; and (b) any sutra already collected from Borrower which exceeded permitted
limits will be refunded to Bartower. Lender may choose to make this refund by reducing the principal
owed under the Note or by malting a direct payment to Borrower. If a refund reduces principal, the
reduction will be treated as a pa~+±z papa}^.ro::: without any prepayment charge (whether or not a
prepayment charge is provided for under the Note). Borrower's acceptance of any such reftmd made by
direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out
of such overcharge.
IS. 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 deetncd to
have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's
notice address if sent by other means. Notice to any one Harrower 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 oromntly
~t~Fy Lr.^.der as g,n owe s ~.uatigc of address. if Lender specifies a procedure for reporting Borrower's
change of address, Wen Borrower shall only report a change of address through that specified procedure.
There may be only one designated notice address under this Searrity Instrument at any ome 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
003 58 - 9701
~~
~.s(u-) (0005) a~eSOof t5 07/25(2006 :25 Form 3016 1101
DO~IOIA (Ol/Zll(16lRcv.03
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 Savrity
Instrument
16. Governing Law; Severability; Rules of Construction. This Sxtuity Insorttment shall be
governed by federal !aw 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 neater 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.
l7. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrtunent.
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 beneficia! 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 $ortower
is act a natural person and a bweficial interest in Borrower is sold or transferred) without Lender's prior
written consent, Lender may require immediate payment in full of all stems secured by this Security
instrument. However, this option steal! not be exercised by Lender if such exercise is prohtbitod by
Applicable Law.
If Lender exorcises this option, Leader 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 acxordance with Sccpion 15
within which Borrower must pay all sutras secured by this Scewity Instrument If Borrower fails to pay
these sums prior to the expiration of this period, Lender may invoke any remtxiies permitted by this
Security Instrument without further notice or demand on Borrower.
19. Borrower`s Right to Reinstate After Acceleration. [f Borrower mcets attain txsnditions,
Borrower shall have the right to have enforcement of this Seattrity lnstrvmtxit discontinued at any lilac
prior to the earliest of: (a) five days before salt of the Property pursuant to arty power of sale contained in
Utis Socurity Instrument; (b} such other period as Applicable Law might specify for the termination of
Borrower's right to reinstate; or (c} entry of a judgmrnt enforcing this Sccwity Instrument. Those
conditions arc that Borrower: (a) pays Lender all sums which then would be due under this Security
Instrument and thz Notc as if no acceleration had occurred; (b) cures any default of any other covenants or
agtetments; (c) pays all expenses incurred in enforcing this Security lnsrrurttent, including, but not limited
to, reasonable attorneys' fens, property inspection and valuation fees; and otl+er few int°.ntcd r the
Y':rptise :.f prvtoc'ung Lenders interest in the Property and rights under this Security Irtshvmertt; and (d)
takes such action as Lender may reasonabty require to assure that Lender's interest in thz Property and
rights tinder this Security Instrument, and Borrower's obligation to pay the sums secured by this Stxhuity
Instrument, shall conrnue unchanged. Lender may require that Borrower pay such reinstatement sums and
expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c)
certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon
an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) ElecUrotric
Funds Transfer. Upon reinstatErnent by Harrower, this Security lnstrument and obligations securod hereby
shall remain fully affective as if no acceleration bad occurred. However, thts nght to retnstate Shall not
apply in the case of acceleration under Section l R
iu. dale of Note; Change of Loan Setvicer; Notice of Griev:ace. The Noce or a partial interest in
the Note (together with this Security Instrument) can be sold one or more tithes without prior notice to
009 58 - 9701
i°~
~~(IAl tooost ~°"O"s 07/25/2006 3 :25 Form 3016 1/ D1
Doh- t I IA (Ol l2006}R ev.03
Borrower. A sale might result in a change in the entity (known as the "Loan 5ervicer") that collocts
Ptriodic 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 Scrvicer 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 Servieer, the address to which payments should be made and any other information 12ESPA
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 Servieer or be transferred to a successor Loan Servicer and arc not
assumed by the Notc purchaser unless otherwise provided by the Note purchaser.
Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an
individual Litigant or the member of a class) that arises from the other party's actions pursuant to this
Security Instrument or that alleges thaz the other party has breached any provision of, or any duty owed by
reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such
notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the
other party hereto a reasonable period after the giving of such notice to take corrective action. if
Applicable Law provides a time period which must elapse before certain action can be taken, that time
period wi)l be deemed to be reasonable for purposes of Wis 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.
ll. 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 captaining asbestos or formaldehyde, and radioactive tnatuials;
(b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is loc~tcd 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) as "Environmental
Condition" means a condition that can cause, wntribute to, or otherwise trigger an Envaonmental
Cleanup.
Borrower shalt not cause or permit the presence, use, disposal, storage, or release of any Hazardous
Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do,
ttor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental
Law, (b) which creates an Environmenaa! Condition, or (c) which, due to the presence, use, or release of a
Hazardous Sltbstance, creates a condition that adversely affects the value of the Property. The preceding
two sentences shall not apply to the presencr., 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 (inc)uding, 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 regulaWry agency or private party involving the Property, and any
Hazardous Substance or Environmental Law of which Borrower bas actual knowledge, (b) any
Endvonmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of
release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a
Hazardous Substance which adversely affects the value of the Property. If Barrows ]earns, or is notified
by any governmental or regulatory u,tfinrity, nr anv nriv~r.. n~n.~ ti.,. t + --
y ,--....-.. ~.....~, uaaa aiij rvuu'vay uw OtUGC remenlanOn
of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary
remedial actions in accordance with Envirotuncnta] Law. Nothing herein shall create any obligation on
Lender for an Environmental Cleanup.
0098 0 58 - 9701
InRie lc
~~(lA)tooost Pule+zor,s 07/25/200 5 Form3tN6 t10i
Gov- t z to to i noa6la~_o 3 '
. .~
NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
Z2. Acceleration; Remedies. Lender sha[I give nonce to Borrower prior to acceleration following
Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to
acceleration ender Section 28 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 3Q days from the date
the notice is given to Borrower, by which the deianlt mast be cared; and (d) that failure to Ixire the
default on or before the date specified in the notice may result in acceieratioa of the saws 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 aecnred by this Security Instrument
without further demand and may foreclose this Security Instrument by judicial proceeding. Lender
shall be entitled to collect all expenses incurred in pursuing the remedies provided is this Section 22,
including, but not limited to, reasonable attorneys' fees and casts of title evidence.
23. Release. Upon payment of all sums secured by this Setvrity Instrument, Lends shall release this
Sectu~ity 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 rbe charging of the fee is permitted under
Applicable Law.
24, Waivers. Borrower relinquishes al] right of dower and waives all right of homestead and
distributive share in and to the Property, Harrower waives any right of exemption as to the Property.
25. AOMFSTEAD EXEMPTION WAIVER. I UNDERSTAND THAT HOMESTEAD
PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND
EXEMPT FROM 3UDICIAL SALE; AND TART BY SIGNING THIS MORTGAGE, I
VOLUNTARQ.Y G[VE UP MY RIGHT TO THIS PROTECTION FOR THIS MORTGAGED
PROPERTY WTTII RESPECT TO CLAIMS BASED UPON THIS MORTGAGE.
Sea ee KAREN YO Date Bnrrowa t3RIAN LTNG Dam
BcaTOwtr Dato 8arotvar Date
Borrows
Datt B~iower
Dam
t3orrowv
-6(IAl rooos~
Lute BOfroWet
- Diu
0098820558-9701
a~• ra or is 07/25/2006 2:32:25 Faem 3018 Clot
d06-l3ia(Q{120ob)Rev.Q)
,~ r
26. Redemption Period. If the Property is less than 10 acres in sizx and [.ender waives in any
foreclosure grocceding 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 Lends- waives any right to a deficiency judgment against Borrower, the period of
redemption &otn judicia! sa3e shall be reduced to 60 days. The provisions of this Section 26 shall be
construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa.
IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE
READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO
OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN TINS WRITTEN CONTRACT
MAY BE LEGALLY ENFORCED. YOU MAY CHANGE TAE TERMS OF THIS AGREEMENT
ONLY BY ANOTHER WRITTEN AGREEMENT.
BY SIGNING BELOW, 8orrowcr accepts and agrees tD the terms and covenants .contained in this
Security Instrument and in any Rider executed by Borrower and recorded with it.
witnesses:
®~M1 tunas)
_ (seal)
-Hmrowc
_ (seal)
-Hormwcr
(Seal)
-Hmro~
(~)
Icl~tEx' ~ovx~ -B~~
~~~
aRSatr Y -s~wa
_ (seal)
-a~o~
(Seal)
~w~
_ (Seal]
-a~ow~r
0098820558-9701
Pry• S4 of 16 p7/25/2006 2:32:25 Form Sots tf01
d06-i4ia(Ol/2Q06)Rev.03
STATE OF IOWA, ~~ County ss:
On this 25~"`" day of ~~ ~~~~~~ ,
Day MonthlYear
before me, a tJotary Public in the State of Iowa, personally appeared
1~ Y~~ Oc~ ~ Q.~t ~~.~ ~I Dc~ q
to me personally known to be the person(s) named in and who executed the foregoing
instrument and acknowledged that he/she/4hey executed the same as hls/herltheir Erse act and
deed.
My Commission Expires: i{"~(~ ~UQ
Notary Public in e ' aaid County and Stale
ELIZABETH A BOYLE
NotQriot Seof - 4owa
Commission q 7159 7
My Commission Expires
~~~~~t~ iiu~~~~mn~ii~A~m~n
`I~~118u~II111~~IIIDIIIIIDUWp11U~IWI
nape rs d is 0098826558 - 97D1
6725!2006 2.3225 PM
400- t 5iA (O1I2006)Rev.63
.• ,_ y
American [.and Title Associaoon Shoe Form Conuniunern
1 /I?!04
I
File No: 281237
"EXHIBIT A"
Legal Description
ALL THAT PARCEL OF LAND [N COUNTY OF DUBUQUE, STATE QF [OWA AS MORE
FULLY DESCRIBED IN DOCUMENT 2446-40006757 AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
~ LOT TWENTY-ONE (2l) OF BLOCK ONE (I) OF SOUTHERN HILLS SUBDIVISION II, IN
SECTIONS 17 AND 18, TOWNSHIP 88 NORTH, RANGE 3 EAST OF THE 5TH P.M.,
ACCORDING TO THE RECORDED PLATS THEREOF. SITUATED IN DUBUQUE
COUNTY, IOWA.
1 APN: 1b18277003
C.ah~
Shat FormCortunitmeot (1/17/04)
ADJUSTABLE RATE RIDER
(LIBOR Sbc-1NonthJndex (As Pubtlshed in the Watl Street Journal)- Rate Caps)
THIS ADJUSTABLE RATE RIDER is made this 25th day of July , 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 glvan by the undersigned (the "Borrower) to secure
Borrowers Adjustable Rate Note (the "Note") to Argent Mortgage Company, LLC (the `[.ender) of
the same date and covering the property described in the Security Instrument and totaled at:
8177 SOUTHERN HILLS CIRCLE, DUBUQUE. IA 52003
IPropurr neaeul
THE NOTE CONTAINS PROVI510NS ALLOWING FOR CHANGES IN THE
INTEREST RATE AND THE MONTHLY PAYMENT. 7NE NOTE LIMITS THE
AMOUNT THE BORROWER'S FNTEREST RATE CAN CHANGE AT ANY ONE
TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY.
ADDITIONAL COVENANTS. In addition to the covenants and agreements made In the
Sectmty Instrument, Borrower and Lender further covenant and agree as follows:
A. {NTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 11.750 %. The Note pruvldes for changes In the
interest rete and the monthly payments, as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I wiH pa may change on the first day of July, 2006 ,and on that day every
sixth month thereafter. Each date on which my interest rata 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-danominatad dnpncits in tt:e
Lcndc~~ riiaiel8i ("LiBGR7, as published in the Walt Street Journal. The most rHCant Index figure
available as of Ne date 45 days before each Change Oate is called the 'Current Indox."
tf the Index is no longer available, the Nate Huldar vriU ,.goose a new index which is based
upon comparable information. The Note Holder will give me rwtice of this choice.
Initlals /
Loan Number: 0098820558 - 9701 U
8)0.11R"r X101) PagB 1 01 3
0 725/1006 2 3 2:25 PM
w
(C) talculatlon of Changes
Before each Change Date, the Nota Holder will calculate my new interest rate by adding
sEx percentage points (6.090 %) to the Current Index. The Note Holder wilt 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 refs until the
next Change Data.
The Note Holder will then determine the amount of the monthly payment that would be suffident
to repay the unpaid principal that I am expected to owe at the Change Date in fuN an the
Maturity Date at my new interest rate in substantially equal payments. The result of this
calculation wil3 be the new amount of my monthly paymen[.
(D) Limits on Interest flats Changes
The interest rate I am required to pay at the first Change Date wi0 not be greater than 13.750%
or less than 11.750%. Thereafter, my Interest rate will never be increased or decreased on any
single Change Date by more than One( 1.000 %1 fmm the rate of interest I have been paying for
the precedrng six months. My interest rate wit( never ba greater than 17.750)% or less than
11.750)q°.
(E) Effective Date of Changes
My new interest rate wit! become effective on each Change Date. 1 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.
(F) Notice of Changes
The ote Holder wilt deliver or mail to me a notice of any changes in my interest rate and the
amount of my monthly payment before the effectve date il any change. The notice will include
information required by law to be given me and also the title and telephone number of a person
who wilt answer any questicn I may have regarding the notice.
B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
Section 18 of the Security Instrument is amended to read as follows:
Transfer of the rroperty or a f3eneficfal Interest In Borrower. As used in this Section
78, "Interest in the Property" means any legal or beneficial interest in the Property, inducting,
but not limited to, those beneficial interests transferred in a bond for deed, contract for deed,
installment sales contrail or escrow agreement, the intent of which Ss the transfer at title by
Borrower at a future data tc a purchaser.
Irvtiafa
Loan Number. 0098820558 - 9701
°+ox t++~) ~~ + Page 2 013
07rt52W6 232:25 PM
~ s
If all or any part of the Property or any Interest in the Property is sold or trensfered (or if
Borrower is not a natural person and a beneficial interest in Borrrnver is sold or transferred)
without Lenders prior written consent, Lender may require immediate payment In toll of aA sums
secured by this Security Instrument. However, this option shall not 6e exercised by Lender tt
such exercise is prohibited by federal law. Lender also shall not exercise this option rf: (a)
Borrower causes to be submitted to Lender information required 6y Lender to evaluate the
intended transferee as if a new loan were being made to the transferee; and (b) Lender
reasonably determines that Lenders security will not be impaired by the ban 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 Lenders consent to the loan assumption. lender may also 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 Security Instrument.
Borrower will oontlnue to be obligated under the Note and this Security Instrument unless Lander
releases Borrower in writing. If Lender exercises [he option to require immediate payment in full,
Lender shall glue Borrower notice of acceleration. The notice shall provide a period of not less
Urarr 30 days from the date the notice is given in accerdance with Section 15 within which
Borrower must pay all sums secured by this Security Instrument. It Borrower fails to pay these
sums prior to the expiration of this period, Lender may invoke arty remedies permitted by this
Security instrument vnttrout further notice or demand on Borower.
BY SIGNING BELOW. Borower accepts end agrees to the terms end oovenents contained in
this Adjustable Rate Rider.
(Seat) ~ (Seal)
' o war F(AR N Y Borower BRIAN DUNG
rcee!j (Seal)
Borrower Borower
Loan Number: 0098820558 - 9701
e~w~a.. ~u,~ Page 3 of 3
07rt5R(x16 232:25 PM
r, R
f ~ ~ g 1~~~ P.O. Bo: ] 1000
MORTGAGE SERVICES SantaAnarCA 927]1-7000
#BPINKZZS
BRIAN YOUNG ,,, , „,.
KAREN YOUNG
8171 SOUTI~ItN HII,LS CIR
DUBUQUE, IA 52003-8984
t't~n 1l,~"111'~n ut~~tl nll~tlu~I1In111IIn~~n 11'II~I~
November 03, 2006
NOTICE OF INTENTION TO FORECLOSE
EXHIBIT
D
AVISO Este documento explica como los propietarios de caws pueden evitar perder sus hogares debido a demoras
de pagos. Para informacitin en espa8oi (lame a su prestamista.
Loan Number: 0098820558
Property Address: 8171 SOUTf1ERN HILLS CIR, DUBUQUE IA, 52003
Dear Borrower,
Tbere has been a breach in the note and deed of trust severing this loan, and it is our intention to institute foreclosure
proceedings against the property identified in this notice and covered by the above loan number. The following
constitutes said breach:
The payment in the amount of 52365.79, which became due 10/01!06, and the late charge in the amount of
S118.29, which became dnc 15 days after your due date, have not been received to date.
In order to cure this defaalt and attempt to bring an end to these fotreclosare proceedings. yon mast remit by
12108!06, the total amount now dae on your aecoont which is 54849,87, Any additional cams that map have
become doe after the date of this letter should also be included in your payment.
Only certified innds will be accepted (that is, a money order or cashier's check). Payments may be sent to 505
City Parkway West, Sane 100, Orange, CA 92868. PLEASE NO7E: 7f the amount received is nor the total
amount due, your default will not be cured and foreclosure proceedings will continue.
Failure to care this breach on or before the date specked may result in oar company declaring all the saws secured
by this deed of trust immediately due and payable, withool farther demand. We may also invoke the power of sale
and seek any other remedies incfiding, but not limited to, reasonable attorney's fees. Yon have the right to pay s)1
amounts owed, including all fees and advances, and to reinstate yow loan wiUr ns after the acceleration of the due date
of your loan. Yon also have the right to bring a court action to assert the non-existence of a defaalt or present any
other defense against the acceleration and sale.
If it is pier rote^..tiCn to cse t;re brctiw and retain ibis property, we urge pun to call nS immediately to discuss the
reason(s) for your defaalt
If yon need additional assistance or counseling yon Wray also find a Housing Counseling Agency in your area by
calling 'l'oll-free (800) 569-4287 or TDD (800) 877-8339.
AMC Mortgage Services, Inc.
(800)430-5262
Fedora/ Lew roquvae us W notify you that ws are noting u a debt oolleolor. If you aro otureatly is a bankruptcy or have received a discbuge is
benkruptay u to /his obligation, this communication is intended for informational pnrporea only and ie not ea anempt to ootleot • debt is vioLtion of
We su,vuaqu~ e,uy w {ae dlalT aiee ,n DnC~~nn_
Also doing business as Delaware AMC Mortgage Services, lac., in the states of Texas, Rhode Island, and New Hampshire.
~~~ P.O, Box 11000
MORTGAGE SERVICESSaataAna,CA_927]1-]000
#BWNKZZS November 03, 2006
BRIAN YOUNG ,,, , „„,
KAREN YOUNG
8171 SOUTHERN HILLS CIRCLE
DUBUQUE, IA 52003-8984
NOTICE OF INTENTION TO FORECLOSE
AVISO Fste documento explica como los propietatios de cocas pueden evitar perder sus hogares debtdo a demoras
de pagos. Para informacion en espat~ol Ilame a su prestamista.
Loan Number: 0098820558
Property Address: 8171 SOUTHERN HILLS CIR, DUBUQUE IA, 52003
Dear Borrower,
There has been a breach in the note and deed of trnsl securing this loan, and it is our intention to institute foreclosure
proceedings against the property identified in this notice and covered by the above loan number. The following
constitutes said breach:
The payment in the amount of 52365.79, which became dne 10!01!06, and the late charge in the amount of
Sl 1$.29, which became dne 15 days after your due date, have not bcen received to date.
In order to care this defaalt and attempt to bring stn end to these foreclosure proceedings, you mast remit by
]2/08/06, the total amount now due on your account which is 54849.87, Any additional sums that may have
become due after the date at this letter should also be included in your payment.
Only certified fonds will be accepted (that is, a mosey order or cashier's check). Payments may be sent to 505
City Parkway West, Suite 100, Orange, CA 92$68. PLEASE NOTE: If the amount received is Rot the total
amount dui your default will Rot be cured and foreclosure proceedings will continue.
Failure to care this breach on or before the date specified may resell in oar company declaring all We sums secured
by this deed of tract immediately due a~ payable, without fitrthet demand. We may also invoke the power of sale
and seek any other remedies inchrding, tint not limited to, reasonable attorney's fees. Yon have the right to pay all
amounts owed, including all fees and advances, and to reinstate your loan with ns after We acceleration of the due date
of your loan Yoa also have the right to bring a court action to assert the non-existence of a default or present any
other defense against the acceleration and sale.
?fit ie °^°- iaeatioa to pure L`,e `areacb and retain this roe we nr a on to call ns immediate to discuss the
,..... P P riy, g y 13'
reason(s) for your defaalt
if you need additional assistance or counseling yon may also find a Housing Connseline Agency in goer area by
calling Toll-free (800} 569-4287 or TDD (800} 877-8339.
AMC Mortgage Services, Inc.
(800} 430-5262
Federal Law roquire, as to notify you That we sre aMing as a debt collector. If you are currently in a bankroptoy or have received a dieoharge in
bmkruptcy u b !hie obligating thin commmioation is imended for informational parpoea only and is sot en attempt to collect s debt in violation of
u,e auiomauc nay or me diaoi,nree miuoctinn
Also doing business as Delaware AMC Mortgage Services, Inc., in the states of Texas, Rhode Island, end New Ilarnpshire
1 Ri
IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY
DEUTSCHE BANK NATIONAL TRUST
COMPANY, AS TRUSTEE OF
AMERIQUEST MORTGAGE SECURITIES,
INC. ASSET BACKED PASS THROUGH
CERTIFICATES, SERIES 2006-M3 UNDER
THE POOLING AND SERVICING
AGREEMENT DATED AS OF
SEPTEMBER 1, 2006, WITHOUT
RECOURSE,
Plaintiff,
vs
BRIAN YOUNG, KAREN YOUNG, STATE
OF IOWA, CITY OF DUBUQUE, AND
PARTIES IN POSSESSION,
Defendants.
STATE OF IOWA )
)ss.
COUNTY OF BLACK HAWK )
CASE NO.
AFFIDAVIT FOR ATTORNEY FEES
HfBIT
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 nn agreement, e ;press :,r i~~~-'- u 'uei een me and any other
person or persons except other practicing attorneys engaged with me i is do , or a division or sharing
of the attorney's fees prayed for herein. ~~~
Subscribed and sworn to hPforP n;P
Tda"y' of cViualY,
Notary~I~ublic in and fd the`State of Iowa
` FAYE M. SCHARES
COMMISSIQN NO. 728998
~ a MY COMMISSION EXPIRES
o W June 15, 2007