Claim by Laura Schumacher National Advantage
.~
Nationwide Advantage Mortgage
Company f/k/a Nationwide Home
Mortgage Company,
PLAINTIFF
v.
IN THE IOWA DISTRICT COURT FOR DUBUQUE COUNTY
Laura L. Schumacher a/k/a Laura
Schumacher, and
Steven J. Schumacher, Wife and
Husband,
City of Dubuque, Housing &
Community Development
Department, and
Citizens Finance Co.,
DEFENDANTS
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TO THE ABOVE-NAMED DEFENDANT(S): ~
You are notified that a petition has been filed in the office of the clerk of this
court naming you as the defendant(s) in this action. A copy of the petition (and any documents
filed with it) is attached to this notice. The name of the attorney for the Plaintiff is David R.
Elkin whose address is 315 East 5`" Street, Ste 5, Des Moines, Iowa 50309. The attorney's
phone number is (515) 244-3188 and facsimile number is (515) 244-3189.
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 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 disability, immediately call your district ADA coordinator at (563) 589-4433. (If you
are hearing impaired, call Relay Iowa TTY at 1-800-735-2942.)
(SEAL)
Equity # O ~.3 ~ ~ ~, ~~ ~ V~ l~~~q
ORIGINAL NOTICE
Date Petition Filed: `"l ~ ~ ~ " ~~
,. .~
CLERK OF COURT
Dubuque County Courthouse
Dubuque, Iowa 52004-1220
IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT
YOUR INTERESTS
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IN THE IOWA DISTRICT COURT FOR DUBUQUE COUNTY`~{~~G~
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Nationwide Advantage Mortgage Company
f/k/a Nationwide Home Mortgage Company,
PLAINTIFF
v.
Laura L. Schumacher a/k/a Laura
Schumacher, and
Steven J. Schumacher, Wife and Husband,
City of Dubuque, Housing & Community
Development Department, and
Citizens Finance Co.,
DEFENDANTS
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Equity # f~ r3 ~ 1 ~ RC.V ~~ to -l ci9
PETITION FOR FORECLOSURE
OF REAL ESTATE MORTGAGE
NOTICE
THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS
MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR
PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A
WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE
SALE WILL BE DELAYED UNTIL TWELVE MONTHS (or SIX MONTHS if the petition
includes a waiver of deficiency judgment) FROM ENTRY OF JUDGMENT IF THE
MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS AONE-FAMILY OR TWO-
FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE
MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE BUT
NOT AONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF
REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALL WILL BE
ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPT~RTY. YOU
MAY PURCHASE AT THE SALE.
2
COMES now the Plaintiff and for cause of action against the above-named
-Defendants, states:
Plaintiff is a corporation authorized to foreclose mortgages assigned to it.
2. Defendants Laura L. Schumacher a/k/a Laura Schumacher and Steven J.
Schumacher are individual residents of Dubuque County, Iowa. Defendant City of Dubuque,
Housing & Community Development Department is a political subdivision. Defendant Citizens
Finance Co. is a corporation authorized to do business in Iowa.
3. On or about October 19, 2001, Defendant Laura L. Schumacher executed
in writing and delivered to Dubuque Bank and Trust Company one certain promissory note in the
sum of $44,470.00. A copy of said note, marked Exhibit "A" is attached hereto and by this
reference incorporated herein and made a part hereof.
4. To secure payment of said promissory note, Defendant Laura L.
Schumacher and Defendant Steven J. Schumacher executed and delivered to Dubuque Bank and
Trust Company one certain real estate purchase money mortgage covering the following
described real estate and premises in Dubuque County, Iowa, to-wit:
Lot 2 of Lot 1 of Elm Street Subdivision, in the City of Dubuque, Iowa, according to the
recorded plat thereof
and locally known as 2150 Elm Street, Dubuque, Iowa 52001. A copa~ of said mortgage, marked
Exhibit "B" is attached hereto and by this reference incorporated herein and made a part hereof.
Said morigage was filed for record in the offie of the Recorder of Dubuque County, Iowa on
December 28, 2001 as Instrument #22244-2001 ~ of the mortgage records in said office.
3
5. On October 19, 2001, Dubuque Bank and Trust Company assigned the
Note and Mortgage to Nationwide Home Mortgage Company, now known as Nationwide
Advantage Mortgage Company.. The assignment was filed December 28, 2001 as Instrument
#22245-2001 of said office. A copy of the assignment is attached as Exhibit "C".
6. Plaintiff is now the owner and holder of said promissory note and
mortgage.
7. The said promissory note and real estate mortgage are conditioned that if
default be made in the payment of said note, or any part thereof, that said promissory note shall,
at the option of the legal holder thereof, become at once due and collectible, and principal and
interest accruing under said promissory note and mortgage now being in default, and all required
notices having been given, the Plaintiffhereby elects to and does, declare the entire sum owing
thereunder now due and payable.
8. There is now past due and owing to the Plaintiff under and by virtue of
said promissory note and mortgage the sum of $43,554.14, together with interest at the rate of
6.375 percent per~annum from and after the 1st day of March, 2007, plus accrued late charges of
$100.50, miscellaneous fees of $117.00, and MI premium due of $19.27, less escrow funds of
$414.18, no part of which has been paid or tendered prior to the commencing of this cause of
action.
9. Defendant City of Dubuque, Housing & Community Development
Department obtained a mortgage upon the above described real estate dated October 19, 2001 in
the amount of $5,000.00. Said mortgage was filed for record in the office of the Recorder of
4
Dubuque County, Iowa on November 6, 2001 as Instrument #18106-2001 of the mortgage
records in said office. Said mortgage was subordinated to Plaintiff's mortgage by reason of a
-subordination agreement dated July 15, 2002 and filed July 18, 2002 as Instrument #12791-2002.
Said mortgage is therefore junior and inferior to Plaintiffs aforesaid first mortgage note and lien.
10. Defendant City of Dubuque, Housing & Community Development
Department obtained also another mortgage upon the above described real estate dated October
19, 2001 in the amount of $5,000.00. Said mortgage was filed for record in the office of the
Recorder of Dubuque County, Iowa on November 28, 2001 as Instrument #19605-2001 of the
mortgage records in said office. Said mortgage was subordinated to Plaintiff's mortgage by
reason of a subordination agreement dated July 15, 2002 and filed July 18, 2002 as Instrument
#12792-2002. Said mortgage is therefore junior and inferior to Plaintiffs aforesaid first
mortgage note and lien.
11. Defendant Citizens Finance Co. obtained a judgment dated November 6,
1997 against Laura Schumacher in the amount of $41.00 in Case No. SCSC037351 in the
Dubuque County lows Associate District Court. Said judgment is junior and inferior to
Plaintiffs aforesaid first mortgage note and lien by reason of the purchase money mortgage
status of Plaintiff's mortgage.
12. The lien of Plaintiffs said mortgage is paramount and superior to any
interest in or lien upon the said premises of the Defendants.
13. Plaintiff is entitled to the sum of $800.00 for necessary continuation of the
abstract of title to the aforesaid premises.
14. Plaintiff hereby waives any rights to a deficiency judgment against the
Defendants:
Wf~REFORE, Plaintiff prays for in rem judgment against the Defendant Laura
L. Schumacher a/k/a Laura Schumacher in the sum of $43,554.14, together with interest at the
rate of 6.375 percent per annum from and after the 1st day of March, 2007, plus accrued late
charges of $100.50, miscellaneous fees of $117.00, and MI premium due of $19.27, less escrow
funds of $414.18, and for the sum of $800.00 for necessary continuation of the abstract and for
the costs of this action, including reasonable attorney fees; and Plaintiff prays that said judgment
be decreed to be the first lien upon said mortgaged premises from and after the date of the
execution of said mortgage, to-wit: October 19, 2001; that the lien upon, or interest in, said
mortgaged premises of the Defendants be decreed to be junior and inferior to that of Plaintiffs
mortgage; that a Special Execution issue for the sale of said mortgaged premises, or so much
thereof as may be necessary to satisfy said judgment, with interest and costs.
Plaintiff further prays that the Court adjudge and decree that if any part of said
mortgaged premises be sold that a Sheriffs Deed issue to the purchaser thereof.
Plaintiff further prays for such other relief as to the Court seems just and equitable
in the premises.
David R. Elkin 1'K2895024
Suite Five
315 East Fifth Street
Des Moines, Iowa 50309
Telephone (515) 244-3188
ATTORNEY FOR PLAINTIFF
6
ATTORNEY FEE AFFIDAVIT
STATE OF IOWA )
ss.
COUNTY OF POLK )
I, David R. Elkin, being first duly sworn on oath depose and state that I am a duly licensed and
practicing attorney at law in the City of Des Moines, Polk County, Iowa, and I am the attorney
for the Plaintiff above named; that there has been and is no agreement, express or implied,
between me and any other person, except a practicing attorney engaged with me as an attorney in
this cause, for any division or sharing of the fee to be taxed herein, which fee when taxed, shall
be as compensation for services actually rendered in this cause.
A i
Da ~d R. Elkin
Subscribed and sworn to before me, a Notary Public in and for the State of Iowa by the said
David R. Elkin this 30th day of August, 2007.
`°< ~ asr co~n~iss~onr cx~i;;_ ^ Note ub is
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~n;a JULY'
NOTE
October 19, 2001 DUBUQUE Iowa
[pate) [City]
[Blatt]
2150 ELM STREET, DUBUQUE. IA 52001
._ , .
[Property Address) ' .. . - .
1. B_ORROWER'S PROMISE TO PAY ~~~"~~ ` .--~.:_„~
In return for a loan that I have received, I promise to pay U.S. $ 44, 470 , QQ (this amount is called "principal"),
plus interest, to the order of the Lender. The Lender is DUBUQUE BANK AND TRUST COMPANY , IOWA STATE
CHARTERED BANK
I will make all payments under this Note in the form of cash, check or money order.
I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and whQ is
entitled to receive payments under this Note is called the "Note Holder."
2. INTEREST
Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly
rate of 6.3750 %.
The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6tB)
of this Note.
3. PAYMENTS
(A) Tune and Place of Payments
1 will pay principal and interest by making a payment every month,
I will make my monthly payment on the 1St day of each month beginning on December 1. 2001 . I will
make these payments every month until I have paid all of the principal and interest and any other charges descnibed below that I
may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest
before Principal. If, on November 1. 2031 , I still owe amounts under this Note, I will pay those amounts in full on
that date, which is called the "Maturity Date."
I will make my monthly payments at 1398 CENTRAL AVE , DUBUQUE , IA 52001
or at a different place if required by the Note Holder.
B) Amount of Monthly Payments
My monthly payment will be in the amount of U.S. $ 277 , 43
4. BORROWER'S RIGHT TO PREPAY
I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a
"Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a
Payment as a Prepayment if I have not made all the monthly payments due under the Note.
I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my
prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my
Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the
Principal amount of the Note. If I make a partial prepayment, there will be no changes in the due date or in the amount of my
monthly payment unless the Note Holder agrees in writing to those changes.
SCNUMACHER, L2
3861872090
0
MULTISTATE FIXED RATE NOTE-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
-iN (00061 Mw 05/00 Form 3200 1/01
® VMP MORTGAGE FORMS - (80016 21-72 9 1
Page 1 of 3
1"Itla~' Exhibit A
5. LOAN CHARGES
If a law, which applies to this loan and which sets maximum loan charges, is finally intezpreted so that the interest or other
loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan chazge
shall be reduced by the amount necessary to reduce the chazge to the permitted Iimit; and (b) any sums already collected from
me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refitnd by reducing the
Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated
as a partial Prepayment.
6. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Late Charge for Overdue Payments
If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar da s
after the date it is due, I will pay a late charge to the Note Holder. The amount of the chazge will be 5.0000 9b of
my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment.
(B) Default
If I do not pay the full amount of each monthly payment on the date it is due, I will be in default.
(C) Notice of Default
If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a
certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all
the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or
delivered by other means.
(D) No Waiver By Note Holder
Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described
above, the Note Holder will still have the right to do so if I am in default at a later time.
(E) Payment oP Note Holder's Costs and Expenses
If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to
be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those
expenses include, for example, reasonable attorneys' fees.
7. GIVING OF NOTICES
Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by
delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note
Holder a notice of my different address.
Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by fast
class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that
different address.
8. OBLIGATIONS OF PERSONS UNDER TffiS NOTE
If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in
this Note, including the promise to pay the full amount owed, Any person who is a guazantor, 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 ail of the promises made in this Note. The Noie Holder may enforce its rights
under this Note against each person individually or against all of us together. This means that any one of us may be required to
pay all of the amounts owed under this Note.
9. WAIVERS
I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor.
"Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the
right to require the Note Holder to give notice to other persons that amounts due have not been paid.
SCHUMACHER, L2 3861872090
~® 5H loooa- Form 3200 T/O1
Pape 2 of 3
Initials:
10. UNIFORM SECURED NOTE
This Note is a uniform 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 date as
this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in ibis
Note. That Security Instrument describes how and under what conditions I may be required to make immediate a
of all amounts I owe under this Note. Some of those conditions are described as follows: P yment m full
If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is
not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written
consent, Lender may require immediate payment in full of all sums secured by this Security Instrument.
However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall
provide a period of not less than 30 days from the date the notice is given in accordance with Section 15
within which Borrower must pay all sums secured by this Security Instrument, If Borrower fails to pay these
sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security
Instrument without further notice or demand on Borrower.
WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED.
LAURA L . SC UMACHER (Seal) _ (Sep)
-Borrower
-Borrower
. (Seal) (~~)
-Borrower
-Borrower
_ (Seal)
-Borrower (S~)
-Borrower
(Seal)
-Borrower (Seal)
-Bonvwer
PAY TO THE ORDER OF
NATIONWIDL HOME MORTGAGE COMPANY
WITHOUT P.ECOURSE _
DUBUQUE BANK & x{tUST COMPAN_ [Slgn Original On1yJ
(~ t
MARY ANE EE
VICE PRESIDENT
SCHUMACHER, L2 3861872090
0
~~ JAN (00051
Papa 3 of 3 Form 3200 1 /01
ADDENDUM TO NOTE:
NOTICE
SHOULD NOT BE RELIED UPON.
M'ORTANT: READ BEFORE SIGNING THE AGREEMENT(S) ACCOMPANYING THIS
NOTICE. THE TERMS OF THE AGREEMENT(S) SHOULD BE READ CAREFULLY
BECAUSE ONLY THOSE TERPrIS IN WRITING ARE ENFORCEABLE. NO OTHER
TERMS NOT CONTAINED IN THE WRITTEN CONTRACT MAY BE LEGALLY
ENFORCED, YOU MAY CHANGE THE TERMS OF THE AGREEMENT(S) ONLY BY
ANOTHER WRITTEN AGREEMENT. THIS NOTICE ALSO APPLIES TO ANY OTHER
CREDIT AGREEMENTS (EXC'Fn'r rn~rcr„-,r~n T ,.. ~,,. ~_ _____
-- - L ~.1 ~~ LL~~ ~ vv fllV1J l riles
L~y--
Borrower: Laura L. Schumacher
Borrower:
October 19 2001
Date
Prepazed By:
LINDA S WESSELS
DUBUQUE BANK AND TRUST COMPANY _
1398 CENTRAL AVE, DUBUQUE, IA 52001
(319) 589 -2144 ~- - .' :;~_
`~ ----
~A~
Return To: - .
~:.~'
DUBUQUE BANK AND TRUST COMPANY
1398 CENTRAL AVE, DUBUQUE, IA 52001 'T~9S ~S .~T~~9~ A~l~'?
-~--- - -
~~~~~~ -_
[Space Above This Line For Recording Datal
MORTGAGE
DEFINITIONS
Words used in multiple sections of this document aze defined below and other words are defined in
Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are
also provided in Section 16.
~`~) "~~h' Instnuent" means this document, which is dated OCt~r 19 , 20
together with alt Riders to this document.
B) "Borrower'!, is LAURA L. S~1-IUMACHER and STEVEN J ~.C~IUMACHER, wi and
husband / /
Borrower is the mortgagor under this Security Instrument.
SCHUMACHER, L2 3861$72090
IOWA-Single Family-Fannie Mae/Freddle Mac UNIFORM INSTRUMENT
~® 8(IAl Io005)
Pape 7 of 15 MW 05/00 IniUais-
VMP MORTGAGE FORMS -1800)52 t _7qy ~
Form 3016 1/01
Exhibit B
(c) "Leaser" is DUBUQUE BANK AND TRUST COMPANY
Lender is a IOWA STATE CHARTERED BANK
organized and existing under the laws of THE STATE OF IOWA
Lender's address is 1398 CENTRAL AUE , DUBUQUE , IA 52001
Lender is the mortgagee under this Security Instrument.
(D) "Note" means the promissory note signed by Borrower and dated October 19 , 2001
The Note states that Borrower owes Lender Forty Four Thousand Four Hundred Seventy
and no/10O / Dollars
(u.s. $ 44 . ~ 00 )plus interest. Borrower has promised to pay this debt in regular Periodic
Payments and to pay the debt in full not later than November 1, 2031
(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 chazges
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 0 Condominium Rider ~ Second Horne Rider
[~ Balloon Rider ~ Planned Unit Development Rider ~ 1-4 Family Rider
0 VA Rider ~ Biweekly Payment Rider ~aCx~Exe)mpt~ffinancing rider
(I~ "Applicable Law" means all controlling applicable federal, state and local statutes, regulations,
ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final,
non-appealable judicial opinions.
(n "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other
charges that are imposed on Borrower or the Property by a condominium association, homeowners
association or similaz organization.
(~ "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by
check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic
instrument, computer, or magnetic tape so as to order, instruct, or authorize a fmancial institution to debit
or credit an account. Such term includes, but is not limited to, point-of--sale transfers, automated teller
machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse
transfers. `
(K) "Escrow Items" means those items that aze described in Section 3.
(L) "1liiscellaneous Proceeds" means any compensation, settlement, awazd of damages, or proceeds paid
by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i)
damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the
Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the
value and/or condition of the Property.
(M} "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on,
the Loan. ,
(1V) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the
Note, plus (ii) any amounts under Section 3 of this Security Instrument.
SCHUMACHER. L2 3861872090 n
~~t~a~:
-6(IA) t0005t Pape 2 of 16 Form 3016 1/0~
(O) "RE A" means the Real Estate Settlement
Procedures Act (12 U.S.C. Section 2601 et seq.) and its
implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to
time, or any additional or successor legislation or regulation that governs the same subject matter. As used
in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard
to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage
loan" under RESPA.
(~ "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or
not that party has assumed Borrower's obligations under the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and
modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this
Security Instrument and the Note. For this purpose, Borrower irrev a es rants and
conveys to Lender, with power of sale, the following descri ed property located in the
COUNTY of
[Type of Recording Jurisdiction) [Name of Recording Jurisdicti
LOT 2 OF LOT 1 OF ELM STREET SUBDIVISION. IN THE CITY OF DU E. IOWA,
ACCORDING TO THE RECORDED PLAT THEREOF (THIS IS A PURCHASE NEY
MORTGAGE)
Parcel ID Number: 10 -24-211- 004
2150 ELM STREET
DUBUQUE
("Property Address"):
which currently has the address of
(street)
(City]. Iowa 52001 (Zip Code]
TOGETHER WITH alI the improvements now or hereafter erected on the property, and all
easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and
additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this
Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has
the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances
of record. Borrower warrant<~ and will defend generally the title to the Property against all 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.
SCHUMACHER, L2 3861872090 ~
®6UA) roooe~ i"it~a~a:
Pape 3 of 16 Form 3016 1 /01
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges.
Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any
prepayment charges and late chazges due under the Note. Borrower shall also pay funds for Escrow Items
pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S.
currency. However, if any check or other instrument received by Lender as payment under the Note or this
Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments
due under the Note and this Security Instrument be made in one or more of the following forms, as
selected by Lender: (a) cash; tb) money order; (c) certified check, bank check, treasurer's check or
cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a
federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer.
Payments are deemed received by Lender when received at the location designated in the Note or at
such other location as may be designated by Lender in accordance with the notice provisions in Section 15.
Lender may return any payment or partial payment if the payment or partial payments are insufficient to
bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan
current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial
payments in the future, but Lender is not obligated to apply such payments at the time such payments are
accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay
interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring
the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply
such funds or return them to Borrower. If not applied eazlier, such funds will be applied to the outstanding
principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower
might have now or in the future against Lender shall relieve Borrower from making payments due under
the Note and this Security Instrument or performing the covenants and agreements secured by this Security
Instrument.
2. Application 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) principal due under the Note; (c) amounts due under Section 3. Such payments
shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts
shall be applied first to late chazges, second to any other amounts due under this Security Instrument, and
then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a
sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and
the late charge: If more than one Periodic Payment is outstanding, Lender may apply any payment received
from Borrower .to the repayment of the Periodic Payments if, and to the extent that, each payment can be
paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or
more Periodic 1ayments, such excess may be applied io any late chazges due. Voluntazy prepayments shall
be applied first to any prepayment charges and then as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under
the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
3, Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due
under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due
for: (~) taxes and assessments and other items which can attain priority over this Security instrument as a
lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c)
premtums for any and all insurance required by Lender under Section 5; and (d) Moa:gage Insurance
premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage
Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow
Items. " At origination or at any time during the term of the Loan, Lender may require that Community
SCHUMACNER, L2 3861872090 0
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-61~A) iooosi Fags a of i e Form 3016 1101
Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and
assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to
be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives
Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be
in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts
due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires,
shall furnish to Lender receipts evidencing such payment within such time period as Lender may require.
Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to
be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement"
is used in Section 9. If Borrower is obligated to pay Escrow items directly, pursuant to a waiver, and
Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9
and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such
amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in
accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in
such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply
the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can
require under RESPA. Lender shall estimate the amount of Funds due on the basia° of current data and
reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable
Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency,
instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in
any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time
specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually
analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the
Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing
or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower
any interest or earnings on the Funds. Bonower and Lender can agree in writing, however, 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 surplus of Funds held in escrow, as defined under RESPA, Lender shall account to
Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow,
as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to
Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12
monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall
notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make
up the deficiency in accordance with RESPA, but in no more than 12 monthly payments.
Upon payment in full of ail sums secured by this Security Instrument, Lender shall promptly refund
to Borrower any Funds held by Lender.
4. Charges; Liens. Borrower shall pay all taxes, assessments, 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 Dc es, Fees, and Assessments, if any. To
the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable
to ):,ender, but only so long as Borrower is performing such agreement, (b) contests the lien in good faith
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by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to
prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings
are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating
the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien
which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the
lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or
more of the actions set forth above in this Section 4.
Lender may require Borrower to pay aone-time chazge for a real estate tax verification and/or
reporting service used by Lender in connection with this Loan.
S. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on
file Property insured against loss by fire, hazazds included within the term "extended coverage," and any
other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance.
This insurance shall be maintained in the amounts (including deductible levels) and for the periods that
Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of
the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's
right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may
require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone
determination, certification and tracking services; or (b) a one-time charge for flood zone determination
and certification services and subsequent chneges each time remappings or similar changes occur which
reasonably might affect such determination or certification. Borrower shall also be responsible for the
payment of any fees imposed by the Federal Emergency Management Agency in connection with the
review of any flood zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance
coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any
particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might
not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk,
hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower
acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of
insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall
become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest
at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from
Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender's
right to disapprove such policies, shall include a standazd mortgage clause, and shall name Lender as
mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal
certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender,
for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and
shall name Lender as mortgagee and/or as an additional loss payee.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree
in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall
be applied to restoration or repair of the P,;_gperty, if the restoration or repair is economically feasible and
Lender's security is not lessened. During sUCh repair and restoration period, Lender shall have the right to
hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the
work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series
of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law
SCHUMACNER. L2 3861872090
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requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any
interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by
Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If
the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance
proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in
Section 2.
If Borrower abandons the Property, bender 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 30-day
period will begin when the notice is given. In either event, or if Lender acquires the Property under
Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and
(b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by
Borrower) under all insurance policies covering the Property, insofaz as such rights aze applicable to the
coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or
to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
residence within 60 days after the executir. n of this Security Instrument and shall continue to occupy the
Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender
otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating
circumstances exist which are beyond Borrower's control.
7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not
destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the
Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in
order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is
determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall
promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such
purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of
progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient
to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of
such repair or restoration.
Lender or, its agent may make reasonable entries upon and inspections of the Property. If it has
reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give
Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause,
8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application
process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender
(or failed to provide Lender with material information) in connection with the Loan. Material
representations include, but are not limited to, representations concerning Borrower's occupancy of the
Property as Borrower's principal residence.
9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument, If
(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there
is a Legal proceeding that might significantly affect Lender's interest in the Property and/or rights under
this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for
enforcement of a Iier, which may attain priority over this Security Instrument or to enforce laws or
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Form 3016 1/01
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: (a) paying any sums secured by a lien
which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including
its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to,
entering the Property to make repairs, change locks, replace or board up doors and windows, drain water
from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned
on or off. Although Lender may take action under this Section 9, Lender does not have io do so and is not
under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all
actions authorized under this Section 9.
Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower
secured by this Security Instrument. 'These amounts shall bear interest at the Note rate from the date of
disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
payment.
If this Security Instrument is on a leasehold, Borrower shall co^rply with alt the provisions of the
lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless
Lender agrees to the merger in writing.
10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan,
Borrower shall pay the premiums required to maintain the Mortgage 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 separately designated payments
towazd the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain
coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially
equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate
mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not
available, Borrower shall continue to pay to Lender the amount of the sepazately designated payments that
were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these
payments as anon-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be
non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be
required to pay Borrower any interest or earnings on such loss reserve. Lender can no longec require loss
reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires)
provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires
separately designated payments towazd the premiums for Mortgage Insurance. If Lender required Mortgage
Insurance as a condition of making the Loan and Borrower was required to make sepazately designated
payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
maintain Mortgage Insurance in effect, or to provide anon-refundable loss reserve, until Lender's
requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and
Lender providing for such termination or until termination is required by Applicable Law. Nothing in this
Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note.
Mortgage Insurance 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 party to the Mortgage
Insurance.
Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may
enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements
are 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 fund`s that the mortgage insurer may have available (which may include funds obtained from Mortgage
Insurance premiums).
As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) 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 insurer's risk, or reducing losses. If such agreement
SCNUMACHER. ~2 3861872090 0
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®6(rA) Iooo6l Peee a of is ~ Form 3016 7/01
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 affect the amounts that Borrower has agreed to pay for
Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount
Borrower will. owe for Mortgage Insurance, and they will not entitle Borrower to any refund.
(b) Any such agreements will not affect the rights Borrower has - if any -with respect to the
Mortgage Insurance under the homeowners Protection Act of 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 receive a
refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or
termination.
11. Assignment of Miscellaneous .Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
assigned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of
the Property, if the restoration or repair is economically feasible ar_d Lender's security is not lessened.
During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds
until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender. may pay for the
repairs and restoration in a single disbursement or in a series of progress payments as the work is
completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such
Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would
be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this 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 Section 2.
In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous
Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
the excess, if any, paid to Borrower.
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market
value of the Property immediately before the partial taking, destruction, or loss in value is equal to or
greater than the amount of the sums secured by this Security Instrument immediately before the partial
taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums
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 mazket value of the Property
immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower.
In the event of a partial taking, destruction, or loss in value of~the Property in which the fair market
value of the Property immediately before the partial taking, destruction, or loss in value is less than the
amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless
Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums
secured by this Security Instrument whether or not the sums aze then due.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
Opposing Party (as defined in the. next sentence) offers to make an awazd to settle a claim for damages,
Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized
to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the
sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party
that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in
regard to Miscellaneous Proceeds.
Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in
Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's
interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if
acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be
dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material
impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of
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any award or claim for damages that are attributable to the impairment of Lender's interest in the Property
are hereby assigned and shall be paid to Lender.
All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be
applied in the order provided for in Section 2.
12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for
payment or modification of amortization of the sums secured by this Security Instrument granted by Lender
to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower
or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against
any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify
amortization of the sums secured by this Security Instrument by reason of any demand made by the original
Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or
remedy including, without limitation, Lender's acceptance. of payments from third persons, entities or
Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or
preclude the exercise of any right or remedy.
13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants
and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who
co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this
Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the
terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security
Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or
make any accommodations with regard to the terms of this Security Instrument or the Note without the
co-signer's consent.
Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes
Borrower's obligations under this Security Instrument in writing, .and is approved by Lender, shall obtain
all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from
Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in
writing. The covenants and agreements of this Security Instrument shall bind (except as provided in
Section 20) and benefit the successors and assigns of Lender.
14. Loan Charges. Lender may charge Borrower fees for services performed in connection with
Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this
Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees.
In 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 chazging of such fee. Lender 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 loan charges, and that law is finally interpreted so
that the interest or other loan chazges collected or to be collected in connection with the Loan exceed the
permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the
charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted
limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal
owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the
reduction will .be treated as a partial prepayment without any prepayment chazge (whether or not a
prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by
direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out
of such overcharge.
15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument
must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to
have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's
notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers
unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address '`
unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly
notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's
change of address, then Borrower shall only report a change of address through that specified procedure.
Thee may be only one designated notice address under this Security Instrument at any one time.. Any
notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address
stated herein unless Lender has designated another address by notice to Borrower. Any notice in
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co~ection with this Security Instrument shall not be deemed to have been given to Lender until actually
received by Lender. If any notice required by this Security Instrument is also required under Applicable
Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security
Instrument.
16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be
governed by federal law and the law of the jurisdiction in which the Property is located. All rights and
obligations contained in this Security Instrument are subject to any requirements and limitations of
Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it
might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In
the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable
Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be
given effect without the conflicting provision.
As used in ibis Security Instrument: (a) words of the masculine gender shall mean and include
corresponding neuter words or words of the feminine gender; (b) words the singular shall mean and
include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to
take any action.
17. Borrower's Copy, $orrower shall be given one copy of the Note and of this Security Instnunent.
18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18,
"Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited
to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or
escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser.
If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower
is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior
written consent, Lender may require immediate payment in full of all sums secured by this Security
Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by
Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall
provide a period of not less than 30 days from the date the notice is given in accordance with Section 15
within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay
these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this
Security Instrument without further notice or demand on Borrower.
19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions,
Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time
prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in
this Security Instrument; (b) such other period as Applicable Law might specify for the termination of
Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those
conditions are that Borrower: a
()pays Lender all sums which then would be due under this Security
Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or
agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited
to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the
purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d)
takes such action as Lender may reasonably require to assure that Lender's interest in the Property and
rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security
Instrument, shall continue unchanged, Lender may require that Borrower pay such reinstatement sums and
expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c)
certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon
an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic
Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby
shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not
apply in the case of acceleration under Section 18.
20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in
the Note (together with this Security Instrument) can be sold one or more times without prior notice to
SCHUMACliER, L2 3861812090
-6(tA) (ppo6) Initials: 0
® Papa 11 of 16
Form 3016 1 /01
Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects
Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan
servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be
one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan
Servicer, Borrower will be given written notice of the change which will state the name and address of the
new Loan Servicer, the address to which payments should be made and any other information RESPA
requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is
serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations
to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not
assumed by the Note purchaser unless otherwise provided by the Note purchaser.
Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an
individual Iitigant or the member of a class) that arises from the other party's actions pursuant to this
Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by
reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such
notice given in compliance with the requirements of Section 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 will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and
opportunity to cure given to Borrower pursuant to Section 22 and the rotice 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.
21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" aze those
substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the
following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides
and herbicides, volatile. solvents, materials containing asbestos or formaldehyde, and radioactive materials;
(b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that
relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response
action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental
Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental
Cleanup.
Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazazdous
Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do,
nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental
Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a
Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding
two sentences shall not apply to the presence, use, or storage on the Property of small quantities of
Hazardous Substances that aze generally recognized to be appropriate to normal residential uses and to
maintenance of the Property (including, but not limited to, hazardous substances in consumer products).
Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit
or other action by any governmental or regulatory agency or private party involving the Property and any
Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any
Environmental Condition, including but not limited to, any spilling, leaking, 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 Borrower learns, or is notified
by any governmental or regulatory authority, oc any private party, that any removal or other remediation
of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take al! necessary
retn~dial actions in accordance with Environmental Law. Nothing herein shall create any obligation on
Lender for an Environmental Cleanup.
SCHUMACHER, L2 3861872090 t
Initials:
-6(tA) (oooal Page tz of 15 ~ Form 3016 110'1
NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following
Borrower's breach of any covenant or agreement in this Security Instrument (but not. prior to
acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify; (a)
the default; (b) the action required to cure the default; (c) a date, not less than 30 days Prom the date
the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the
defaul# on or before the date specified in the notice may result in acceleration of the sums secured by
this Security Instrument, Foreclosure by judicial proceeding and sale of the Property. The notice shall
further inform Borrower of the right to reinstate after acceleration and the right to assert in the
foreclosure proceeding the non-existence of a default or any other defense oP Borrower to acceleration
and Foreclosure. If the default is not cured on or before the date specified in the notice, Lender at its
option may require immediate payment in full of all sums secured by this Security Instrument
without further demand and may foreclose this Security Instrument by judicial proceeding. Lender
shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22,
including, but not limited to,.reasonable attorneys' fees and costs of title evidence.
23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this
Security Instrument. Lender may chazge Borrower a fee for releasing this Security Instrument, but only if
the fee is paid to a third party for services rendered and the charging of the fee is permitted under
Applicable Law.
24. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and
distributive share in and to the Property. Borrower waives any right of exemption as to the Property.
25. HOMESTEAD EXEMPTION WAIVER. I UNDERSTAND THAT HOMESTEAD
PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND
EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I
VOLi1NTARILY G1VE UP MY RIGHT TO THIS PROTECTION FOR TIIIS MORTGAGED
PRO}' TY WITH SPECT TO CLAIMS BASED UPON THIS MORTGAGE.
Borrower LAURA L . SCHUMACHER Da~/ ~ Borrower$TE
V SCHU CHER Date7~~~
Borrower
Borrower
Borrower
SCiiUMACHER. L2
-6(tA) 10005)
Date Borrower Date
Date Borrower Date
Date Borrower
Date
3861872090
Pape 13 of 16
0
Form 3016 1 /01
26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any
foreclosure proceeding any right to a deficiency judgment against Borrower, the period of redemption from
judicial sale shall be reduced to 6 months. If the court finds that the Property has been abandoned by
Borrower and Lender waives any right to a deficiency judgment against Borrower, the period of
redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 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 TffiS AGREEMENT SHOULD BE
READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO
OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT
MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT
ONLY BY ANOTHER WRITTEN AGREEMENT.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this
Security Instrument and in any Rider executed by Borrower and recorded with it.
Witnesses:
(Seal)
-Borrower
(~~)
-Borrower
~"~~ (Seal)
LAURA L . SCHUMACHER -Borrower
L~P/L• ~ Seal)
STEVEN J SCH CHER -Borrower
_ (Seal)
-Borrower
(Seal)
-Borrower
SCHUMACHER, L2
3861872090
_ (Seal)
-Borrower
_ (Seal)
-Borrower
0
-6(IA1 looos~ Pace ~ a of ~ s ~ Form 3016 1 /O 1
STATE OF IOWA, DUBUQUE County ss:
On this 19th day of October , 201 before me, a Notary Public
in the State of Iowa, personally appeared LAURA L . SCHUMACHER and STEVEN J SCHUMACHER
to me personally known to be the person(s) named in and who executed the foregoing instrument, and
acknowledged that he/she/they executed the same as his/her/their voluntary act and deed.
My Commission Expires:
~. l~~ ~~
Notary Pub ' ut and for said County and State
John .Walsh
~'P1Al ~
r
x
OWE
SCHUMACHER. L2 38b18720°0
JOHN V. WALSH
MY COIMMI~SSION EXP RES
NOVEMBER 24 2002
0
-6tIA) (0005) Inlttalo:
® ae0e ~ s of t 6 Form 3016 1101
RIDER TO MORTGAGE
This Tax Exempt Financing Rider made this date, is incorporated into and shall be deemed to amend and
supplement the Mortgage of the same date given by the undersigned (the "Mortgagor") to secure the Mortgagor's Note to
DUBUQUE BANK & TRUST COMPANY
property described in the Mortgage (the Pro a (herein, the "Lender") and covering the property
" p rty") to which this rider is attached.
The provisions hereof shall prevail notwithstanding any contrary provisions in any note or other instrument
which evidences the obligations secured by the Mortgage.
As long as the Mortgage is held by the Iowa Finance Authority or backs amortgage-backed security held by
the Iowa Finance Authority, Nationwide Home Mortgage Company (the "Servicer") or such of its successors or assigns
as may by separate instrument assume responsibility for assuring compliance by the Mortgagor with the provisions of
this Rider ,may declare all sums secured by the Mortgage to be immediately due and payable if:
(1) all or part of the property is sold or otherwise transferred (other than by devise, descent or operation
of law) by the Mortgagor to a purchaser or other transferee:
(a) who cannot reasonably be expected to occupy the property as a principal residence within a
reasonable time after the sale or transfer, all as provided In Section 143(c) and (i)(2) of the Intemal
Revenue Code of 1986, as amended (the" Code"); or
(b) who has had a present ownership interest in a principal residence during any part of the
three-year period ending on the date of the sale or transfer, all as provided in Section 143(d) and
(i)(2) of the Code (except that the language "100percent" shall be substituted for "95 percent or
more" where the latter appears in Section 143(d)(1)), unless the property is in a Targeted Area; or
(c) at an acquisition cost which is greater than 90 percent of the average area purchase price (greater
than 110 percent for Targeted Area residences), all as provided in Section 143(e) and (i)(2) of the
Code; or
(d) who has a gross family income not in excess of appilcabfe median family income; all as
provided In Section 143(f) and (I)(2) of the Code; or
(2) the Mortgagor fails, or ceases, to occupy the property described in the Mortgage without the prior
written consent of the Mortgagee or its successors or assigns; or
(3) the Mortgagor omits or misrepresents a fact that is material with respect to the provisions of Section
143 of the Code in an application for Mortgage which secures the Note.
References are to the Intemal Revenue Code of 1986, as amended, in effect on the date of the execution of the
Mortgage and are deemed to include the implementing regulations.
ey signing below, the Mortgagor(s) accepts and agrees to the terms of this Tax Exempt Financing Rider.
Date• Octob 9, 01
~~ ~
Borrower ,,~~~
LAURA L. SCHUMACHER Co- orrower ~ ~'4
Typed Name Steven J. Schumacher
Typed Name
MRB 14
STATE OF IOWA )
COUNTY OF )ss
DUBUQUE )
On this 19th day of October 2001 ,before me appeared LAURA L. SCHUMACHER
to me known to be the person(s) described in the foregoing
instrument, and who, being by me first duly sworn, executed the foregoing instrument and acknowledged, deposed
and said that he/she/they executed the same as his/her/their free act and deed and stated that the information and
certifications contained therein are true and correct.
Q 6~
_ Nota ubiic in and for the County of
DUBUQUE ,State of Iowa
My Commission Expires:
JOHN WALSH
COMMISSION NO. 225685
• " MY COMMISSION EXPIRES
owe NOVEMBER 24 2002
MRB 14
Prepared by: Linda Wessels 1398 Central Ave. Dubuque, Iowa 52001 (319) 589-2144
ASSIGNMENT OF MORTGAGE
KNOW ALL MEN BY THESE PRESENTS:
That Dubuque Bank and Trust Company, a corporation duly organized and existing under the laws of the State
of Iowa, Assignor, in consideration of the sum of Forty Four Thousand Four Hundred Seventy and no/100
DOLLARS ($ 44,470) in hand paid by Nationwide Home Mortgage Company Assignee, receipt whereof is hereby
aclrnowledged, does hereby sell, assign, transfer and set over, to the Assignee, its successors and assigns, that certain
mortgage executed by Laura L. Schumacher and Steven J. Schumacher, Wife and Husband Mortgagor(s)
bearing the date of the 19th day of October, 2001 filed for record in the Office of the County Recorder of the
County of Dubuque, State of Iowa, on the day of
,Page , 2001, and recorded in Book
as Document Number , of the Dubuque County, Iowa records, and the
Mortgage Note relating therein.
IN WITNESS WHEREOF, this instrument is executed this 19th day of October, 2001.
`l r~~~ ~~i m ~'~~'~J~ t~ii~(~
CERT9F1~~ C~~Y
~ /'~-~"~
~W
STATE OF IOWA )
ss:
COUNTY OF DUBUQUE )
On this 19`s day of October, 2001, before me, the undersigned Notary Public in and for said County and State,
personally appeazed Michael J. McCullough and Mary Jane Steele, to me personally known, who being by me
duly sworn did say that they aze the Vice President and Vice President, respectively of said corporation, that the
seal affixed hereto is the seal of said corporation; that said instrument was signed and sealed on beJialf of said
corporation by authority of its Board of Directors; and that the said Vice Presidents as such officers acknowledge
the execution of said instrument to be the voluntary ~ at~,~eed of said corporation, by it and by them vnt,,,,+ar~..
executed.
D~otary Public `~ "~-~
Dubuque, State of Iowa
My Commission Expires:
LINDA S. WESSELS
~~ ~NumbK 1 ~ 8
Exhibit C rvovernbsr s,