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1 James F. Lewin (SBN 140268)
Matthew T. Sanford (SBN 336883)
2 THE MORTGAGE LAW FIRM, PLC
27368 Via Industria, Suite 201
3 Temecula, California 92590
Telephone: (619) 465-8200
4 Facsimile: (951) 225-4073
james.lewin@mtglawfirm.com
5 matt.sanford@mtglawfirm.com
TS #165393
6
Attorneys for Plaintiff,
7 MATRIX FINANCIAL SERVICES CORPORATION
8
SUPERIOR COURT OF THE STATE OF CALIFORNIA
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FOR THE COUNTY OF RIVERSIDE
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11
MATRIX FINANCIAL SERVICES Case No.
12 CORPORATION,
COMPLAINT FOR:
13 Plaintiff, (1) REFORMATION AND
(2) DECLARATORY RELIEF
14 vs.
15 IVAN PERIC, an individual;
16 FRANCHISE TAX BOARD OF THE STATE
OF CALIFORNIA;
17
and DOES 1 through 10, inclusive,
18
Defendants.
19
20 Plaintiff, MATRIX FINANCIAL SERVICES CORPORATION, alleges as follows:
21 JURISDICTION AND VENUE
22 1. The real property which is the subject of this complaint is commonly known as 16800
23 Ponderosa Ln, Riverside, CA 92504, bearing Assessor’s Parcel Number 273-180-011-1 (the
24 “Property”). Venue of this action is therefore proper in this county pursuant to California Code of
25 Civil Procedure § 392.
26 2. At all relevant times MATRIX FINANCIAL SERVICES CORPORATION
27 (“Plaintiff”), was authorized to conduct business in the State of California.
28 1
COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
1 3. Plaintiff is informed and believes and thereon alleges that Defendant, IVAN PERIC,
2 is an individual who, at all relevant times, has an ownership interest in the subject real property
3 located in the County of Riverside, State of California.
4 4. Plaintiff is informed and believes and thereon alleges that at all relevant times,
5 Defendant, FRANCHISE TAX BOARD OF THE STATE OF CALIFORNIA, is a government
6 taxing agency of the State of California.
7 5. The true names and capacities, whether individual, corporate, associate or otherwise,
8 of the defendants named herein as DOES 1 through 10, inclusive, are presently unknown to Plaintiff,
9 and claim an interest in the Property which is the subject of this action. Plaintiff therefore sues
10 Defendants, DOES 1 through 10 by their fictitious names and will amend this Complaint to allege
11 their true names and capacities when they are ascertained by Plaintiff. Plaintiff is informed and
12 believes and thereon alleges that each such fictitiously named defendant is responsible in some
13 manner for the acts and occurrences hereinafter alleged.
14 6. Plaintiff is informed and believes and based thereon alleges, that at all times
15 mentioned herein each of the defendants named herein was and is now, the agent, servant, and/or
16 employee of the other defendants herein and each of them, and in doing or omitting to do the acts
17 and things herein, was acting within the course and scope of said agency, service and/or
18 employment, and/or that all of said acts and/or omissions were authorized and/or ratified by said co-
19 defendants, and/or were done with their knowledge and/or consent.
20 7. The correct legal description the real property which is the subject matter of this
21 action known as the Property is as follows:
22 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF RIVERSIDE,
23 IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS
24 FOLLOWS:
25 The land referred to herein below is situated in the City of Riverside, County of Riverside, State of
26 California and is described as follows:
27 PARCEL 1:
28 2
COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
1 THE EASTERLY 93 FEET OF THE WESTERLY 186 FEET OF THAT PORTION OF LOT 2,
2 AMENDED MAP OF WOODCREST ACRES NO. 5, IN THE COUNTY OF RIVERSIDE, STATE
3 OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 18, PAGE 39 OF MAPS, IN THE
4 OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
5 BEGINNING AT A POINT ON THE EASTERLY LINE OF SAID LOT 2, SAID POINT BEING
6 SOUTH 00° 10' 30" EAST, A DISTANCE OF 1091.3 FEET FROM THE NORTHEAST CORNER
7 OF SAID LOT 2; THENCE SOUTH 00° 10' 30" EAST, ALONG THE EASTERLY LINE OF
8 SAID LOT 2, A DISTANCE OF 200 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID
9 LOT 2; THENCE SOUTH 89° 51' WEST ALONG THE SOUTHERLY LINE OF SAID LOT 2
10 645.2 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89° 51'
11 WEST, ALONG THE SOUTHERLY LINE OF SAID LOT 2, 652.4 FEET; THENCE NORTH 00°
12 06' 15" WEST, 300 FEET; THENCE NORTH 89° 51' EAST, 652.4 FEET; THENCE SOUTH, 00°
13 06' 15" EAST, 300 FEET TO THE TRUE POINT OF BEGINNING.
14 PARCEL 2:
15 AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE NORTH 30 FEET
16 OF THE SOUTHEAST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 26, TOWNSHIP 3 SOUTH,
17 RANGE 5 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF
18 RIVERSIDE, STATE OF CALIFORNIA, ACCORDING TO THE UNITED STATES
19 GOVERNMENT SURVEY THEREOF.
20 Assessor's Parcel Number: 273-180-011-1
21 A true and correct copy of the Legal Description is attached hereto as Exhibit “A” and
22 incorporated herein by reference.
23 8. On or around November 21, 2016, Ivan Peric, a married man as his sole and separate
24 property, obtained a loan in the amount of $375,000.00 and secured the loan by executing a Deed of
25 Trust in favor of Mortgage Electronic Registration Systems, Inc. (“MERS”), a separate corporation
26 acting solely as nominee for EZ Fundings, Inc., as beneficiary, which was recorded on December 5,
27 2016, in the Official Records of the County of Riverside, State of California as Document No. 2016-
28 3
COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
1 0540232 (“Deed of Trust”). A true and correct copy of the Deed of Trust is attached hereto as
2 Exhibit “B” and is incorporated herein by reference.
3 9. Plaintiff is informed and believes and thereon alleges that through mistake, error
4 and/or inadvertence, the legal description attached to the Deed of Trust (“DOT legal description”)
5 contains the following errors highlighted below in bold:
6 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF
7 RIVERSIDE, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS
8 DESCRIBED AS FOLLOWS: [this sentence is missing from the DOT legal description]
9 The land referred to herein below is situated in the City of Riverside, County of Riverside,
10 State of California and is described as follows: [this sentence is erroneously stated in the DOT
11 legal description as: Real property in the unincorporated area of the County of Riverside, State of
12 California, described as follows:
13 PARCEL 1:
14 THE EASTERLY 93 FEET OF THE WESTERLY 186 FEET OF THAT PORTION OF LOT 2,
15 AMENDED MAP OF WOODCREST ACRES NO. 5, IN THE COUNTY OF RIVERSIDE,
16 STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 18, PAGE 39 OF MAPS,
17 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS
18 FOLLOWS: [the highlighted language above is erroneously stated in the DOT legal description as
19 follows: THE EASTERLY 93 FEET OF THE WESTERLY 186 FEET OF THAT PORTION OF
20 LOT 2, AMENDED MAP OF WOODCREST ACRES NO. 5, AS SHOWN BY MAP ON FILE
21 IN BOOK 18 OF MAPS, PAGE 39, RECORDS OF SAID COUNTY, DESCRIBED AS
22 FOLLOWS
23 BEGINNING AT A POINT ON THE EASTERLY LINE OF SAID LOT 2, SAID POINT BEING
24 SOUTH 00° 10' 30" EAST, A DISTANCE OF 1091.3 FEET FROM THE NORTHEAST CORNER
25 OF SAID LOT 2; THENCE SOUTH 00° 10' 30" EAST, ALONG THE EASTERLY LINE OF
26 SAID LOT 2, A DISTANCE OF 200 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID
27 LOT 2; THENCE SOUTH 89° 51' WEST ALONG THE SOUTHERLY LINE OF SAID LOT 2
28 4
COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
1 645.2 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89° 51'
2 WEST, ALONG THE SOUTHERLY LINE OF SAID LOT 2, 652.4 FEET; THENCE NORTH 00°
3 06' 15" WEST, 300 FEET; THENCE NORTH 89° 51' EAST, 652.4 FEET; THENCE SOUTH,
4 00° 06' 15" EAST, 300 FEET TO THE TRUE POINT OF BEGINNING.
5 [the highlighted language above is erroneously stated in the DOT legal description as follows:
6 THENCE SOUTH, 00° 06' 15" EAST, 300 FEET TO THE TRUE POINT OF BEGINNING.
7 PARCEL 2:
8 AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE NORTH 30 FEET
9 OF THE SOUTHEAST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 26, TOWNSHIP 3 SOUTH,
10 RANGE 5 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF
11 RIVERSIDE, STATE OF CALIFORNIA, ACCORDING TO THE UNITED STATES
12 GOVERNMENT SURVEY THEREOF.
13 [the highlighted language above is erroneously excluded from in the DOT legal description]
14 Assessor’s Parcel Number: 273-180-011-1
15 10. On January 14, 2020, all right title and beneficial interest in the Deed of Trust was
16 assigned to Plaintiff by a Corporate Assignment of Deed of Trust (“Assignment”), recorded on
17 January 23, 2020, in the Official Records of the County of Riverside, State of California as
18 Document No. 2020-0035152. A true and correct copy of the Assignment is attached hereto as
19 Exhibit “C” and is incorporated herein by reference.
20 11. On or about April 13, 2022, a Notice of State Tax Lien (“Tax Lien”) was recorded by
21 The Franchise Tax Board of the State of California in the official records of the County of Riverside,
22 State of California, as Document No. 2022-0175319. A true and correct copy of the Tax Lien is
23 attached hereto as Exhibit “D” and is incorporated herein by reference.
24 12. The Deed of Trust is presently in default due to a failure by Ivan Peric, to make
25 monthly payments thereunder. However, despite the monetary default by Ivan Peric, Plaintiff is
26 unable to proceed with a nonjudicial foreclosure of the Deed of Trust because due to the mistaken
27 legal description stated in the Deed of Trust, a nonjudicial foreclosure sale will not result in Plaintiff
28 5
COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
1 or a hypothetical bona fide third-party purchaser acquiring marketable title to the Property through a
2 nonjudicial trustee’s sale foreclosure. Plaintiff seeks to correct this mistake and/or error and seeks
3 judgment as prayed for below.
4 FIRST CAUSE OF ACTION
5 REFORMATION OF DEED OF TRUST
6 (Against All Defendants and DOES 1 through 10, Inclusive)
7 13. Plaintiff re-alleges and incorporates herein by reference paragraphs 1 through 12,
8 inclusive, as though fully set forth below.
9 14. “When through fraud or a mutual mistake of the parties or a mistake of one party
10 which the other at the time knew or suspected a written contract does not truly express the intention
11 of the parties it may be revised on the application of a party aggrieved so as to express that intention
12 so far as it can be done without prejudice to rights acquired by third persons, in good faith and for
13 value (Civil Code § 3399.)
14 15. Reformation is not limited to the original parties to a written instrument but to any
15 aggrieved parties (Hart v. Walton (1908) 9 Cal App 502, 507, 508.)
16 16. Plaintiff alleges that at the time of funding the loan secured by the Deed of Trust, it
17 was the mutual intent of MERS as nominee for EZ Fundings, Inc., and Ivan Peric, that the Deed of
18 Trust would secure repayment of the subject loan by encumbering the Property. See Exhibit B,
19 Deed of Trust, at page 2 of 14.
20 17. However, because of the errors made in the legal description in the Deed of Trust
21 which was the result of the mutual mistake of the parties, the Deed of Trust may not correctly
22 encumber the Property, and therefore the Deed of Trust is not truly expressing the intention of the
23 parties.
24 18. Plaintiff is an aggrieved party as due to the mistaken legal description it is unable to
25 exercise its power of sale to proceed with a nonjudicial foreclosure for the loan secured by the Deed
26 of Trust which is in default.
27
28 6
COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
1 19. Plaintiff is an aggrieved party as a result of errors made in the legal description in the
2 Deed of Trust. Plaintiff’s interest in the Property which was pledged as security for the subject loan
3 is in jeopardy and subject to dispute.
4 20. Plaintiff is informed and believes and based thereon alleges that the parties intended
5 the Deed of Trust be an encumbrance upon and valid and enforceable against the Property.
6 21. Plaintiff is informed and believes and based thereon allege that through mutual
7 mistake, error, and/or inadvertence, the Deed of Trust did not include and/or identify the correct
8 legal description alleged in Paragraph 7 of this Complaint.
9 22. Despite the error made in the legal description in the Deed of Trust, the Deed of Trust
10 otherwise correctly describes the Property with the correct street address and the county in which the
11 Property is situated as well as the correct lot number, tract number and assessor’s parcel number.
12 Therefore, Plaintiff is informed and believes, and on that basis, alleges that there is no third-party
13 whose rights would be prejudiced by reformation of the Deed of Trust as requested herein.
14 Accordingly, the Deed of Trust can be reformed as requested herein without prejudice to any
15 purported rights potentially acquired by third persons in good faith and for value.
16 23. Plaintiff is informed and believes and based thereon alleges that to reflect the true
17 intentions of the parties, the legal description for the Property stated in the Deed of Trust should be
18 reformed nunc pro tunc to include the legal description as described in paragraph 7 of this
19 Complaint effective December 5, 2016.
20 SECOND CAUSE OF ACTION
21 DECLARATORY RELIEF
22 (Against All Defendants and DOES 1 through 10, Inclusive)
23 24. Plaintiff hereby incorporates by reference the allegations contained in paragraph 1
24 through 23, inclusive, above, as though fully set forth herein.
25 25. An actual controversy has arisen and now exists between Plaintiff and Defendants,
26 and each of them, as to their respective rights and duties regarding the Deed of Trust. The
27 controversy between the parties’ concerns is not limited to Plaintiff’s contentions, as follows: the
28 7
COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
1 Deed of Trust should be reformed to reflect the true intent of the parties thereto and include the legal
2 description set forth in Paragraph 7 of this Complaint.
3 26. Plaintiff is informed and believes and based thereon alleges that Defendants, and each
4 of them, dispute these contentions.
5 27. Plaintiff desires a judicial determination of its rights and interests in the Deed of Trust
6 as follows: Reformation of the Deed of Trust to reflect the true intent of the parties thereto and
7 include the legal description set forth in Paragraph 7 of this Complaint nunc pro tunc effective
8 December 5, 2016.
9 28. A judicial declaration is necessary and appropriate at this time under the
10 circumstances so that Plaintiff may ascertain its rights, duties, and interests in the Deed of Trust.
11 PRAYER FOR RELIEF
12 WHEREFORE, Plaintiff prays for judgment against Defendants, and each of them, as
13 follows:
14 ON THE FIRST CAUSE OF ACTION
15 1. That the Deed of Trust be reformed, nunc pro tunc, effective December 5, 2016, to
16 express the true intent of the parties thereto to include the legal description set forth in Paragraph 7
17 of this Complaint.
18 ON THE SECOND CAUSE OF ACTION
19 2. For a judicial determination of Plaintiff’s rights and duties, and a declaration
20 establishing that the Deed of Trust be reformed, nunc pro tunc, effective December 5, 2016, to
21 express the true intent of the parties thereto and include the legal description set forth in Paragraph 7
22 of this Complaint.
23 ON ALL CAUSES OF ACTION
24 3. For costs of suit incurred herein;
25 ///
26 ///
27 ///
28 8
COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
1 4. For such other and further relief as this Court may deem just and proper.
2
3 DATED: July 14, 2023 THE MORTGAGE LAW FIRM, PLC
BY~-AM- - 1~'- +F-~_E_WIN_,_~
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Attorneys for Plaintiff,
7 MATRIX FINANCIAL SERVICES
CORPORATION
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COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF
EXHIBIT “A”
DOC #2015-0313258 Page 3 of 3
31
PRELIMINARY REPORT Ticor Title Company of California
YOUR REFERENCE: ORDER NO.: 00306178-993-SSI
EXHIBIT "A"
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF RIVERSIDE, IN THE COUNTY OF
F17 RIVERSIDE, STATE OF CALIFORNIA, A0JD IS DESCRIBED AS FOLLOWS:
The land referred to herein below is situated in the City of Riverside, County of Riverside, State of California and is
X-X
described as follows:
Parcel 1:
The Easterly 93 feet of the Westerly 186 feet of that portion of Lot 2, amended map of Woodcrest Acres No.5, in the County
of Riverside, State of California, as per Map recorded in Book 18, Page 39 of Maps, in the Office of the County Recorder of
Said County, described as follows:
beginning at a point on the Easterly line of Said Lot 2, said point being South 00° I 0' 30" East, a Distance of I 091.3 Feet
from the Northeast Corner of Said Lot 2; Thence South 00° I 0' 30" East, along the Easterly line of Said Lot 2, a distance of
200 feet to a point on the Southerly line of Said Lot 2; thence South 89° 51' West along the Southerly line of Said Lot 2,
645.2 feet to the true point of beginning; thence continuing South 89° 51' West, along the Southerly line of Said Lot 2, 652.4
feet; thence North 00° 06' 15" West, 300 feet; thence North 89° 51' East, 652.4 feet; thence South, 00° 06' 15" East, 300 feet
to the true point of beginning.
Parcel2:
An easement for Ingress and egress over and across the North 30 feet of the Southeast 1/4 of the Southeast 1/4 of Section 26,
Township 3 South, Range 5 West, San Bernardino base and Meridian, in the County of Riverside, State of California,
according to the United States government survey thereof.
APN: 273-180-011-1
CLTA Preliminary Report Form- Modified (11117/06) Page 3
Order: 220690499 Page 3 of 3 Requested By: pmaruthi, Printed: 12/20/2022 12:51 PM
Doc: RV:2015 00313258
EXHIBIT “B”
DOC# 2016-0540232
R'ecording Requested By 12/05/2016 01:40PM Fees: $64.00
First American Title Company Page 1 of 14
Recorded in Official Records
County of Riverside
Recording Requested By: Peter Aldana
EZ FUNDINGS, INC. Assessor-County Clerk-Recorder
And After Recording Return To:
EZ FUNDINGS, INC. **This document was electronically submitted
8577 HAVEN AVENUE to the County of Riverside for recording**
RANCHO CUCAMO~RNIA 91730 Receipted by: CAROL #914
Loan N u m b e r : - - -
- - - - [Space Above This Line For Recording Data)
DEED OF TRUST
MIN: MERS Phone: 888-679-6377
DEFINITIONS
Words used in multiple sections of this document are 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.
(A) ''Security Instrument" means this document, which is dated NOVEMBER 21, 2 0 16 , together
with all Riders to this document.
(B) ''Borrower" is IVAN PERIC, A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY
BORRCWER'S ADDRESS IS 16800 ro-JDEROSA LN, RIVERSIDE, CALIFORNIA 92504.
Borrower is the trustor under this Security Instrument.
(C) "Lender" is EZ FUNDINGS, INC.
Lender is a CALIFORNIA CORPORATION organized
and existing under the laws of CALI FORNI A
Lender's address is 85 77 HAVEN AVENUE, RANCHO CUCAMONGA, CALIFORNIA
91730
(D) 'Trustee"is FIRST AMERICAN TITLE COMPANY
1855 W REDLANDS BLVD, SUITE 100, REDLANDS, CALIFORNIA 92373
(E) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting
solely as a nominee for Lender and Lender's successors and assigns. MERS is the beneficiary under this Security
lnstrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number
of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS.
(F) "Note" means the promissory note signed by Borrower and dated NOVEMBER 21 1 2 016
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The Note states that Borrower owes Lender THREE HUNDRED SEVENTY- FIVE THOUSAND
AND 0 0 I 1 0 0 Dollars (U.S. $ 3 7 5 , 0 0 0 • 0 0 ) plus interest.
Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than
DECEMBER 1, 2031
(G) "Property" means the property that is described below under the heading "Transfer of Rights in the Property."
(H) ''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.
(1) "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]:
0 Adjustable Rate Rider 0 Planned Unit Development Rider
0 Balloon Rider 0 Biweekly Payment Rider
0 1-4 Family Rider 0 Second Home Rider
0 Condominium Rider 0 Other(s) [specifY]
(J) "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.
(K) "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 similar
organization.
(L) "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 financial institution to debit or credit an account. Such term
includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by
telephone, wire transfers, and automated clearinghouse transfers.
(M) "Escrow Items" means those items that are described in Section 3.
(N) "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 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.
(0) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan.
(P) "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.
(Q) ''RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing
regulation, Regulation X (12 C.F.R. Part 1024), 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 quality as a "federally related mortgage loan" under RESPA
(R) "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
The beneficiary of this Security Instrument is MERS (solely as nominee for Lender and Lender's successors and
assigns) and the successors and assigns of MERS. This Security Instrument secures to Lender: (i) the repayment of
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the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's
covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants
and conveys to Trustee, in trust, with power of sale, the following described property located in the
COUNTY ~ RIVERSIDE
[Type of Recording Jurisdiction] [Name of Recording Jurisdiction]
SEE lEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A".
A.P.N.: 273-180-011-1
which currently has the address of 16 8 0 0 PONDEROSA LN
[Street]
RIVERSIDE , California 9 2 50 4 ("Property Address"):
[City] [Zip Code]
TOGE1HER Willi all the improvements now or hereafter erected on the property, and all easements,
appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be
covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security
Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors
and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose
and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling
this Security Instrument.
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right
to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record.
Borrower warrants and will defend generally the title to the Property against 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.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall
pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late
charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due
under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other
instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid,
Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in
one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check,
treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured
by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer.
Payments are deemed received by Lender when received at the location designated in the Note or at such other
location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return
any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender
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may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights
hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not
obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of
its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds
until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of
time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be
applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim
which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due
under the Note and this Security Instrument or performing the covenants and agreements secured by this Security
Instrument.
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 charges, second
to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If
more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the
repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that
any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may
be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then
as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to 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: (a) taxes and
assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the
Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance
required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower
to Lender in lieu ofthe 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 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 basis of current data and reasonable estimates of expenditures
of future Escrow Items or otherwise in accordance with Applicable Law.
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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 veri :tying
the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make
such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,
Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree
in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without 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 all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, tines, and impositions attributable to
the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the
Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items
are Escrow Items, Borrower shall pay them in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower:
(a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only
so long as Borrower is performing such agreement; (b) contests the lien in good faith 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 I 0 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 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. Borrower shall keep the improvements now existing or hereafter erected on the
Property insured against loss by tire, hazards included within the term "extended coverage," and any other hazards
including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be
maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender
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 charges 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
CALIFORNIA- Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT- MERS DocMagic~
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by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These
amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest,
upon notice from Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to
disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an
additional loss payee and Borrower further agrees to generally assign rights to insurance proceeds to the holder of the
Note up to the amount of the outstanding loan balance. 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 and Borrower further agrees to generally assign rights to insurance proceeds to the
holder of the Note up to the amount of the outstanding Joan balance.
In the event ofloss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make
proof of Joss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any
insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration
or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
During such repair and restoration period, Lender shall have the right to hold such in.surance 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 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 lnstrument, 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 30-day period will begin when the
notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby
assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid
under the Note or this Security Instrument, and (b) any other of Borrower' s rights (other than the right to any refund
of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights
are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the
Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's
principal residence for at least one 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 Pr
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1 James F. Lewin (SBN 140268) Matthew T. Sanford (SBN 336883) 2 THE MORTGAGE LAW FIRM, PLC 27368 Via Industria, Suite 201 3 Temecula, California 92590 Telephone: (619) 465-8200 4 Facsimile: (951) 225-4073 james.lewin@mtglawfirm.com 5 matt.sanford@mtglawfirm.com TS #165393 6 Attorneys for Plaintiff, 7 MATRIX FINANCIAL SERVICES CORPORATION 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 FOR THE COUNTY OF RIVERSIDE 10 11 MATRIX FINANCIAL SERVICES Case No. 12 CORPORATION, COMPLAINT FOR: 13 Plaintiff, (1) REFORMATION AND (2) DECLARATORY RELIEF 14 vs. 15 IVAN PERIC, an individual; 16 FRANCHISE TAX BOARD OF THE STATE OF CALIFORNIA; 17 and DOES 1 through 10, inclusive, 18 Defendants. 19 20 Plaintiff, MATRIX FINANCIAL SERVICES CORPORATION, alleges as follows: 21 JURISDICTION AND VENUE 22 1. The real property which is the subject of this complaint is commonly known as 16800 23 Ponderosa Ln, Riverside, CA 92504, bearing Assessor’s Parcel Number 273-180-011-1 (the 24 “Property”). Venue of this action is therefore proper in this county pursuant to California Code of 25 Civil Procedure § 392. 26 2. At all relevant times MATRIX FINANCIAL SERVICES CORPORATION 27 (“Plaintiff”), was authorized to conduct business in the State of California. 28 1 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF 1 3. Plaintiff is informed and believes and thereon alleges that Defendant, IVAN PERIC, 2 is an individual who, at all relevant times, has an ownership interest in the subject real property 3 located in the County of Riverside, State of California. 4 4. Plaintiff is informed and believes and thereon alleges that at all relevant times, 5 Defendant, FRANCHISE TAX BOARD OF THE STATE OF CALIFORNIA, is a government 6 taxing agency of the State of California. 7 5. The true names and capacities, whether individual, corporate, associate or otherwise, 8 of the defendants named herein as DOES 1 through 10, inclusive, are presently unknown to Plaintiff, 9 and claim an interest in the Property which is the subject of this action. Plaintiff therefore sues 10 Defendants, DOES 1 through 10 by their fictitious names and will amend this Complaint to allege 11 their true names and capacities when they are ascertained by Plaintiff. Plaintiff is informed and 12 believes and thereon alleges that each such fictitiously named defendant is responsible in some 13 manner for the acts and occurrences hereinafter alleged. 14 6. Plaintiff is informed and believes and based thereon alleges, that at all times 15 mentioned herein each of the defendants named herein was and is now, the agent, servant, and/or 16 employee of the other defendants herein and each of them, and in doing or omitting to do the acts 17 and things herein, was acting within the course and scope of said agency, service and/or 18 employment, and/or that all of said acts and/or omissions were authorized and/or ratified by said co- 19 defendants, and/or were done with their knowledge and/or consent. 20 7. The correct legal description the real property which is the subject matter of this 21 action known as the Property is as follows: 22 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF RIVERSIDE, 23 IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS 24 FOLLOWS: 25 The land referred to herein below is situated in the City of Riverside, County of Riverside, State of 26 California and is described as follows: 27 PARCEL 1: 28 2 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF 1 THE EASTERLY 93 FEET OF THE WESTERLY 186 FEET OF THAT PORTION OF LOT 2, 2 AMENDED MAP OF WOODCREST ACRES NO. 5, IN THE COUNTY OF RIVERSIDE, STATE 3 OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 18, PAGE 39 OF MAPS, IN THE 4 OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: 5 BEGINNING AT A POINT ON THE EASTERLY LINE OF SAID LOT 2, SAID POINT BEING 6 SOUTH 00° 10' 30" EAST, A DISTANCE OF 1091.3 FEET FROM THE NORTHEAST CORNER 7 OF SAID LOT 2; THENCE SOUTH 00° 10' 30" EAST, ALONG THE EASTERLY LINE OF 8 SAID LOT 2, A DISTANCE OF 200 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID 9 LOT 2; THENCE SOUTH 89° 51' WEST ALONG THE SOUTHERLY LINE OF SAID LOT 2 10 645.2 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89° 51' 11 WEST, ALONG THE SOUTHERLY LINE OF SAID LOT 2, 652.4 FEET; THENCE NORTH 00° 12 06' 15" WEST, 300 FEET; THENCE NORTH 89° 51' EAST, 652.4 FEET; THENCE SOUTH, 00° 13 06' 15" EAST, 300 FEET TO THE TRUE POINT OF BEGINNING. 14 PARCEL 2: 15 AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE NORTH 30 FEET 16 OF THE SOUTHEAST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 26, TOWNSHIP 3 SOUTH, 17 RANGE 5 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF 18 RIVERSIDE, STATE OF CALIFORNIA, ACCORDING TO THE UNITED STATES 19 GOVERNMENT SURVEY THEREOF. 20 Assessor's Parcel Number: 273-180-011-1 21 A true and correct copy of the Legal Description is attached hereto as Exhibit “A” and 22 incorporated herein by reference. 23 8. On or around November 21, 2016, Ivan Peric, a married man as his sole and separate 24 property, obtained a loan in the amount of $375,000.00 and secured the loan by executing a Deed of 25 Trust in favor of Mortgage Electronic Registration Systems, Inc. (“MERS”), a separate corporation 26 acting solely as nominee for EZ Fundings, Inc., as beneficiary, which was recorded on December 5, 27 2016, in the Official Records of the County of Riverside, State of California as Document No. 2016- 28 3 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF 1 0540232 (“Deed of Trust”). A true and correct copy of the Deed of Trust is attached hereto as 2 Exhibit “B” and is incorporated herein by reference. 3 9. Plaintiff is informed and believes and thereon alleges that through mistake, error 4 and/or inadvertence, the legal description attached to the Deed of Trust (“DOT legal description”) 5 contains the following errors highlighted below in bold: 6 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF 7 RIVERSIDE, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS 8 DESCRIBED AS FOLLOWS: [this sentence is missing from the DOT legal description] 9 The land referred to herein below is situated in the City of Riverside, County of Riverside, 10 State of California and is described as follows: [this sentence is erroneously stated in the DOT 11 legal description as: Real property in the unincorporated area of the County of Riverside, State of 12 California, described as follows: 13 PARCEL 1: 14 THE EASTERLY 93 FEET OF THE WESTERLY 186 FEET OF THAT PORTION OF LOT 2, 15 AMENDED MAP OF WOODCREST ACRES NO. 5, IN THE COUNTY OF RIVERSIDE, 16 STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 18, PAGE 39 OF MAPS, 17 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS 18 FOLLOWS: [the highlighted language above is erroneously stated in the DOT legal description as 19 follows: THE EASTERLY 93 FEET OF THE WESTERLY 186 FEET OF THAT PORTION OF 20 LOT 2, AMENDED MAP OF WOODCREST ACRES NO. 5, AS SHOWN BY MAP ON FILE 21 IN BOOK 18 OF MAPS, PAGE 39, RECORDS OF SAID COUNTY, DESCRIBED AS 22 FOLLOWS 23 BEGINNING AT A POINT ON THE EASTERLY LINE OF SAID LOT 2, SAID POINT BEING 24 SOUTH 00° 10' 30" EAST, A DISTANCE OF 1091.3 FEET FROM THE NORTHEAST CORNER 25 OF SAID LOT 2; THENCE SOUTH 00° 10' 30" EAST, ALONG THE EASTERLY LINE OF 26 SAID LOT 2, A DISTANCE OF 200 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID 27 LOT 2; THENCE SOUTH 89° 51' WEST ALONG THE SOUTHERLY LINE OF SAID LOT 2 28 4 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF 1 645.2 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89° 51' 2 WEST, ALONG THE SOUTHERLY LINE OF SAID LOT 2, 652.4 FEET; THENCE NORTH 00° 3 06' 15" WEST, 300 FEET; THENCE NORTH 89° 51' EAST, 652.4 FEET; THENCE SOUTH, 4 00° 06' 15" EAST, 300 FEET TO THE TRUE POINT OF BEGINNING. 5 [the highlighted language above is erroneously stated in the DOT legal description as follows: 6 THENCE SOUTH, 00° 06' 15" EAST, 300 FEET TO THE TRUE POINT OF BEGINNING. 7 PARCEL 2: 8 AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE NORTH 30 FEET 9 OF THE SOUTHEAST 1/4 OF THE SOUTHEAST 1/4 OF SECTION 26, TOWNSHIP 3 SOUTH, 10 RANGE 5 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF 11 RIVERSIDE, STATE OF CALIFORNIA, ACCORDING TO THE UNITED STATES 12 GOVERNMENT SURVEY THEREOF. 13 [the highlighted language above is erroneously excluded from in the DOT legal description] 14 Assessor’s Parcel Number: 273-180-011-1 15 10. On January 14, 2020, all right title and beneficial interest in the Deed of Trust was 16 assigned to Plaintiff by a Corporate Assignment of Deed of Trust (“Assignment”), recorded on 17 January 23, 2020, in the Official Records of the County of Riverside, State of California as 18 Document No. 2020-0035152. A true and correct copy of the Assignment is attached hereto as 19 Exhibit “C” and is incorporated herein by reference. 20 11. On or about April 13, 2022, a Notice of State Tax Lien (“Tax Lien”) was recorded by 21 The Franchise Tax Board of the State of California in the official records of the County of Riverside, 22 State of California, as Document No. 2022-0175319. A true and correct copy of the Tax Lien is 23 attached hereto as Exhibit “D” and is incorporated herein by reference. 24 12. The Deed of Trust is presently in default due to a failure by Ivan Peric, to make 25 monthly payments thereunder. However, despite the monetary default by Ivan Peric, Plaintiff is 26 unable to proceed with a nonjudicial foreclosure of the Deed of Trust because due to the mistaken 27 legal description stated in the Deed of Trust, a nonjudicial foreclosure sale will not result in Plaintiff 28 5 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF 1 or a hypothetical bona fide third-party purchaser acquiring marketable title to the Property through a 2 nonjudicial trustee’s sale foreclosure. Plaintiff seeks to correct this mistake and/or error and seeks 3 judgment as prayed for below. 4 FIRST CAUSE OF ACTION 5 REFORMATION OF DEED OF TRUST 6 (Against All Defendants and DOES 1 through 10, Inclusive) 7 13. Plaintiff re-alleges and incorporates herein by reference paragraphs 1 through 12, 8 inclusive, as though fully set forth below. 9 14. “When through fraud or a mutual mistake of the parties or a mistake of one party 10 which the other at the time knew or suspected a written contract does not truly express the intention 11 of the parties it may be revised on the application of a party aggrieved so as to express that intention 12 so far as it can be done without prejudice to rights acquired by third persons, in good faith and for 13 value (Civil Code § 3399.) 14 15. Reformation is not limited to the original parties to a written instrument but to any 15 aggrieved parties (Hart v. Walton (1908) 9 Cal App 502, 507, 508.) 16 16. Plaintiff alleges that at the time of funding the loan secured by the Deed of Trust, it 17 was the mutual intent of MERS as nominee for EZ Fundings, Inc., and Ivan Peric, that the Deed of 18 Trust would secure repayment of the subject loan by encumbering the Property. See Exhibit B, 19 Deed of Trust, at page 2 of 14. 20 17. However, because of the errors made in the legal description in the Deed of Trust 21 which was the result of the mutual mistake of the parties, the Deed of Trust may not correctly 22 encumber the Property, and therefore the Deed of Trust is not truly expressing the intention of the 23 parties. 24 18. Plaintiff is an aggrieved party as due to the mistaken legal description it is unable to 25 exercise its power of sale to proceed with a nonjudicial foreclosure for the loan secured by the Deed 26 of Trust which is in default. 27 28 6 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF 1 19. Plaintiff is an aggrieved party as a result of errors made in the legal description in the 2 Deed of Trust. Plaintiff’s interest in the Property which was pledged as security for the subject loan 3 is in jeopardy and subject to dispute. 4 20. Plaintiff is informed and believes and based thereon alleges that the parties intended 5 the Deed of Trust be an encumbrance upon and valid and enforceable against the Property. 6 21. Plaintiff is informed and believes and based thereon allege that through mutual 7 mistake, error, and/or inadvertence, the Deed of Trust did not include and/or identify the correct 8 legal description alleged in Paragraph 7 of this Complaint. 9 22. Despite the error made in the legal description in the Deed of Trust, the Deed of Trust 10 otherwise correctly describes the Property with the correct street address and the county in which the 11 Property is situated as well as the correct lot number, tract number and assessor’s parcel number. 12 Therefore, Plaintiff is informed and believes, and on that basis, alleges that there is no third-party 13 whose rights would be prejudiced by reformation of the Deed of Trust as requested herein. 14 Accordingly, the Deed of Trust can be reformed as requested herein without prejudice to any 15 purported rights potentially acquired by third persons in good faith and for value. 16 23. Plaintiff is informed and believes and based thereon alleges that to reflect the true 17 intentions of the parties, the legal description for the Property stated in the Deed of Trust should be 18 reformed nunc pro tunc to include the legal description as described in paragraph 7 of this 19 Complaint effective December 5, 2016. 20 SECOND CAUSE OF ACTION 21 DECLARATORY RELIEF 22 (Against All Defendants and DOES 1 through 10, Inclusive) 23 24. Plaintiff hereby incorporates by reference the allegations contained in paragraph 1 24 through 23, inclusive, above, as though fully set forth herein. 25 25. An actual controversy has arisen and now exists between Plaintiff and Defendants, 26 and each of them, as to their respective rights and duties regarding the Deed of Trust. The 27 controversy between the parties’ concerns is not limited to Plaintiff’s contentions, as follows: the 28 7 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF 1 Deed of Trust should be reformed to reflect the true intent of the parties thereto and include the legal 2 description set forth in Paragraph 7 of this Complaint. 3 26. Plaintiff is informed and believes and based thereon alleges that Defendants, and each 4 of them, dispute these contentions. 5 27. Plaintiff desires a judicial determination of its rights and interests in the Deed of Trust 6 as follows: Reformation of the Deed of Trust to reflect the true intent of the parties thereto and 7 include the legal description set forth in Paragraph 7 of this Complaint nunc pro tunc effective 8 December 5, 2016. 9 28. A judicial declaration is necessary and appropriate at this time under the 10 circumstances so that Plaintiff may ascertain its rights, duties, and interests in the Deed of Trust. 11 PRAYER FOR RELIEF 12 WHEREFORE, Plaintiff prays for judgment against Defendants, and each of them, as 13 follows: 14 ON THE FIRST CAUSE OF ACTION 15 1. That the Deed of Trust be reformed, nunc pro tunc, effective December 5, 2016, to 16 express the true intent of the parties thereto to include the legal description set forth in Paragraph 7 17 of this Complaint. 18 ON THE SECOND CAUSE OF ACTION 19 2. For a judicial determination of Plaintiff’s rights and duties, and a declaration 20 establishing that the Deed of Trust be reformed, nunc pro tunc, effective December 5, 2016, to 21 express the true intent of the parties thereto and include the legal description set forth in Paragraph 7 22 of this Complaint. 23 ON ALL CAUSES OF ACTION 24 3. For costs of suit incurred herein; 25 /// 26 /// 27 /// 28 8 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF 1 4. For such other and further relief as this Court may deem just and proper. 2 3 DATED: July 14, 2023 THE MORTGAGE LAW FIRM, PLC BY~-AM- - 1~'- +F-~_E_WIN_,_~ . 4 5 ___ f-/ ___ 6 Attorneys for Plaintiff, 7 MATRIX FINANCIAL SERVICES CORPORATION 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9 COMPLAINT FOR REFORMATION AND DECLARATORY RELIEF EXHIBIT “A” DOC #2015-0313258 Page 3 of 3 31 PRELIMINARY REPORT Ticor Title Company of California YOUR REFERENCE: ORDER NO.: 00306178-993-SSI EXHIBIT "A" LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF RIVERSIDE, IN THE COUNTY OF F17 RIVERSIDE, STATE OF CALIFORNIA, A0JD IS DESCRIBED AS FOLLOWS: The land referred to herein below is situated in the City of Riverside, County of Riverside, State of California and is X-X described as follows: Parcel 1: The Easterly 93 feet of the Westerly 186 feet of that portion of Lot 2, amended map of Woodcrest Acres No.5, in the County of Riverside, State of California, as per Map recorded in Book 18, Page 39 of Maps, in the Office of the County Recorder of Said County, described as follows: beginning at a point on the Easterly line of Said Lot 2, said point being South 00° I 0' 30" East, a Distance of I 091.3 Feet from the Northeast Corner of Said Lot 2; Thence South 00° I 0' 30" East, along the Easterly line of Said Lot 2, a distance of 200 feet to a point on the Southerly line of Said Lot 2; thence South 89° 51' West along the Southerly line of Said Lot 2, 645.2 feet to the true point of beginning; thence continuing South 89° 51' West, along the Southerly line of Said Lot 2, 652.4 feet; thence North 00° 06' 15" West, 300 feet; thence North 89° 51' East, 652.4 feet; thence South, 00° 06' 15" East, 300 feet to the true point of beginning. Parcel2: An easement for Ingress and egress over and across the North 30 feet of the Southeast 1/4 of the Southeast 1/4 of Section 26, Township 3 South, Range 5 West, San Bernardino base and Meridian, in the County of Riverside, State of California, according to the United States government survey thereof. APN: 273-180-011-1 CLTA Preliminary Report Form- Modified (11117/06) Page 3 Order: 220690499 Page 3 of 3 Requested By: pmaruthi, Printed: 12/20/2022 12:51 PM Doc: RV:2015 00313258 EXHIBIT “B” DOC# 2016-0540232 R'ecording Requested By 12/05/2016 01:40PM Fees: $64.00 First American Title Company Page 1 of 14 Recorded in Official Records County of Riverside Recording Requested By: Peter Aldana EZ FUNDINGS, INC. Assessor-County Clerk-Recorder And After Recording Return To: EZ FUNDINGS, INC. **This document was electronically submitted 8577 HAVEN AVENUE to the County of Riverside for recording** RANCHO CUCAMO~RNIA 91730 Receipted by: CAROL #914 Loan N u m b e r : - - - - - - - [Space Above This Line For Recording Data) DEED OF TRUST MIN: MERS Phone: 888-679-6377 DEFINITIONS Words used in multiple sections of this document are 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. (A) ''Security Instrument" means this document, which is dated NOVEMBER 21, 2 0 16 , together with all Riders to this document. (B) ''Borrower" is IVAN PERIC, A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY BORRCWER'S ADDRESS IS 16800 ro-JDEROSA LN, RIVERSIDE, CALIFORNIA 92504. Borrower is the trustor under this Security Instrument. (C) "Lender" is EZ FUNDINGS, INC. Lender is a CALIFORNIA CORPORATION organized and existing under the laws of CALI FORNI A Lender's address is 85 77 HAVEN AVENUE, RANCHO CUCAMONGA, CALIFORNIA 91730 (D) 'Trustee"is FIRST AMERICAN TITLE COMPANY 1855 W REDLANDS BLVD, SUITE 100, REDLANDS, CALIFORNIA 92373 (E) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the beneficiary under this Security lnstrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (F) "Note" means the promissory note signed by Borrower and dated NOVEMBER 21 1 2 016 CALIFORNIA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMagic~ Fonn 3005 01/01 Page 1 of 14 www.dOcmagic.com DOC #2016-0540232 Page 2 of 14 The Note states that Borrower owes Lender THREE HUNDRED SEVENTY- FIVE THOUSAND AND 0 0 I 1 0 0 Dollars (U.S. $ 3 7 5 , 0 0 0 • 0 0 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than DECEMBER 1, 2031 (G) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (H) ''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. (1) "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]: 0 Adjustable Rate Rider 0 Planned Unit Development Rider 0 Balloon Rider 0 Biweekly Payment Rider 0 1-4 Family Rider 0 Second Home Rider 0 Condominium Rider 0 Other(s) [specifY] (J) "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. (K) "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 similar organization. (L) "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 financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (M) "Escrow Items" means those items that are described in Section 3. (N) "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 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. (0) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (P) "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. (Q) ''RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (12 C.F.R. Part 1024), 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 quality as a "federally related mortgage loan" under RESPA (R) "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 The beneficiary of this Security Instrument is MERS (solely as nominee for Lender and Lender's successors and assigns) and the successors and assigns of MERS. This Security Instrument secures to Lender: (i) the repayment of CALIFORNIA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMagic~ Fonn 3005 01/01 Page 2 of 14 www.dcicmagic. com DOC #20 16-0540232 Page 3 of 14 the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the COUNTY ~ RIVERSIDE [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] SEE lEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A". A.P.N.: 273-180-011-1 which currently has the address of 16 8 0 0 PONDEROSA LN [Street] RIVERSIDE , California 9 2 50 4 ("Property Address"): [City] [Zip Code] TOGE1HER Willi all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against 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. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender CALIFORNIA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMagic~ Form 3005 01/01 Page 3 of 14 www.dricmagic. com DOC #2016-0540232 Page 4 of 14 may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 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 charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to 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: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu ofthe 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 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 basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. CALIFORNIA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMagic~ Form 3005 01/01 Page 4 of 14 www. dricmagic. com M DOC #20 16-0540232 Page 5 of 14 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 veri :tying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without 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 all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, tines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith 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 I 0 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 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. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by tire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender 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 charges 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 CALIFORNIA- Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT- MERS DocMagic~ Form 3005 01/01 Page 5 of 14 www. dricmagic.com DOC #2016-0540232 Page 6 of 14 by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee and Borrower further agrees to generally assign rights to insurance proceeds to the holder of the Note up to the amount of the outstanding loan balance. 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 and Borrower further agrees to generally assign rights to insurance proceeds to the holder of the Note up to the amount of the outstanding Joan balance. In the event ofloss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of Joss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such in.surance 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 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 lnstrument, 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 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower' s rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one 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 Pr