Preview
FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020
NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF ROCKLAND
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MORTGAGE ELECTRONIC REGISTRATION AMENDED COMPLAINT
SYSTEMS, INC.
Plaintiff,
vs Index # 031780/2020
MORTGAGED PREMISES:
JOHN C. HEATH, DORIS GORDON-HEATH, 150 Eagle Ridge Way
Nanuet, NY 10954
Defendant(s). DSBL #: 57.12 - 1 - 3.2 - 120
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The Plaintiff by its attorneys, Gross Polowy, LLC, for its amended complaint against the
Defendant(s) alleges upon information and belief as follows:
1. This action is brought pursuant to RPAPL Article § 15 and NY Real Property Law
§ 329 for an Order (a) expunging the Satisfaction of Mortgage recorded on December 17, 2014 as
Instrument Number 2014-00033751 (b) directing the Rockland County Clerk to reform the Land
Records in the Clerk's Office to reflect the cancellation of the Erroneous Satisfaction of Mortgage
as if said Satisfaction was never recorded, (d) restoring all of the Plaintiff's rights given by the
Mortgage referenced therein (e) enjoining the defendants from taking any action that is adverse to
the Plaintiff's lien position or its related rights.
2. MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. ("MERS") is a
corporation organized and existing under the laws of Delaware with itsprincipal place of business
in Virginia and is the holder of the Mortgage which this Action seeks to restore.
3. On or about November 16, 2012, John C. Heath and Doris Gordon-Heath
("Borrowers") executed and delivered a note whereby they promised to pay the sum of
$210,000.00 plus interest on the unpaid amount due and offered the Property commonly known as
150 Eagle Ridge Way, Nanuet, NY 10954 ("Subject Property") as collateral. The subject property
is more fully described in the legal description attached hereto as Schedule A.
4. As security for the payment of the note, the Borrowers duly executed and delivered
a mortgage ("First Mortgage") to MERS in the amount of $210,000.00, which was recorded on
December 6, 2012 at Instrument No. 2012-00044293. A copy of the First Mortgage is attached
hereto as Schedule B.
5. On or about November 21, 2014, the Borrowers duly executed and delivered a gap
mortgage ("Gap Mortgage") to MERS in the amount of $11,682.75, which was recorded on
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January 7, 2015 at Instrument No. 2015-00000433. A copy of the Gap Mortgage is attached hereto
as Schedule C.
6. Also on or about November 21, 2014, the First Mortgage and Gap Mortgage were
consolidated into a Consolidation, Extension and Modification Agreement ("Unrecorded CEMA")
in the amount of $200,000.00, which was not recorded and cannot be recorded or assigned until
the Erroneous Satisfaction is expunged. A copy of the CEMA is attached hereto as Schedule D.
7. Upon information and belief, due to fraud or mistake, an Erroneous Satisfaction
("Erroneous Satisfaction") of only the First Mortgage was recorded on December 17, 2014 as
Instrument Number 2014-00033751 with the Rockland County Clerk. Despite this, the Mortgage
has not been satisfied. The First Mortgage was not in fact paid off or satisfied but instead
consolidated with the Gap Mortgage as the Unrecorded CEMA shows. A copy of this Erroneous
Satisfaction is annexed as Schedule E.
8. Due to the Erroneous Satisfaction, the subject mortgage's lien priority is
jeopardized every day that the First Mortgage appears satisfied on the record.
9. Upon information and belief, the Borrowers are fully aware that there is an
outstanding debt owed on the Mortgage.
10. Upon information and belief, there is no showing of detrimental reliance. The
Borrowers do not appear to have changed positions to rely on the Erroneous Satisfaction.
11. Upon information and belief, the Defendants herein are of full age and sound mind
and is not an absentee, infant, incompetent, or alcohol abuser.
12. A judgment will not affect a person or persons not in being or ascertained at the
commencement of this action, who by any contingency contained in a devise or grant or otherwise,
could afterward become entitled to a beneficial estate or interest in the property.
13. No personal claim is made, in this action against any Defendant other that a
Defendant who shall assert a claim adverse to the claim of Plaintiff set forth in this Amended
Complaint.
14. Plaintiff seeks judgment to the effect that the Defendant and every person or entity
claiming under them are barred from all claims to an estate or interest in the property described in
the Amended Complaint superior to the Plaintiff's mortgage interests.
WHEREFORE, PLAINTIFF RESPECTFULLY REQUESTS AN ORDER:
(a) expunging the Satisfaction of Mortgage recorded on December 17, 2014 as Instrument Number
2014-00033751;
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(b) directing the Rockland County Clerk to reform the Land Records in the Clerk's Office to reflect
the cancellation of the Erroneous Satisfaction of Mortgage as if said Satisfaction was never
recorded;
(c) restoring allof the Plaintiff's rights given by the Mortgage referenced therein;
(d) enjoining the Defendants from taking any action that is adverse to the Plaintiff's lien position
or its related rights;
(e) and granting such other relief as the Court deems just and proper.
/s/Austin R. Caster
Austin R. Caster, Esq.
Gross Polowy, LLC
1775 Wehrle Drive, Suite 100
Williamsville, NY 14221
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Schedule A - Legal Description
ALL that certain piece, or parcel of real property, with the buildings and improvements thereon
erected, situate and being part of a Condominium located in Nanuet, Town of Clarkstown,
County of Rockland and State of New York, known and designated as Home No. 12, together
with 1/79 undivided interest in the Common Elements of the condominium hereinafter described
as the same is defined in the Declaration of Condominium hereinafter referred to.
The real property above described is a Home shown on the plans of a Condominium prepared
and certified by James Tanner, registered Architect and filed in the Office of the Clerk of the
County of Rockland on the 26th day of October, 1994, as File No. 6745/94 defined in the
Declaration of Condominium entitled, "Declaration of Eagle Ridge Phase D made by JMK
Building Corp., under Article 9-B of the New York Real Property Law dated October 18, 1994
and recorded in the Office of the Clerk of the County of Rockland on the 26th day of October,
1994, in Liber 725 of Conveyances at page 2202 covering the property therein described.
TOGETHER with the rights of ingress and egress across the roads of the condominium to the
nearest public highway.
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Schedule B - First Mortgage
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NYSCEF DOC. NO. 14 Paul Piperato,
County Clerk RECEIVED NYSCEF: 07/08/2020
1 SouthMain St., Ste
100
New City, NY10956
(845) 638-5070
Rockland County Clerk Recording Cover Sheet
Received From : Return To :
FAMILY ABSTRACT FAMILY ABSTRACT
337 NORTH MAIN ST - SUlTE 14 337 NORTH MAIN ST - SUITE14
NEW CITY, NY 10956 NEW CITY, NY 10956
Method Returned : FILE CABINET
FirstGRANTOR
HEATH, JOHN C
FirstGRANTEE
PROSPECT LENDING LLC
Index Type : Land Records
Instr Number : 2012-00044293
Book : Page :
Type of Instrument: Mortgage
Type of Transaction: Mtg Type B
Recording Fee : $145.00
The Propertyaffected
by this instrument
is situated
in Clarkstown,
in the
Recording Pages : 21 County of Rockland,
New York
Mortgage Taxes
Property Located : Clarkstown
SerialNumber : DD5926
Mortgage Amount : $210,000.00
Basic Tax : $1,050 00 State of New York
Local Tax: $0.00 County of Rockland
AdditionalTax : S600.00 I hereby certify that the within and foregoing was
recordedin the Clerk's
office for Rockland County,
Transpw-st!on Auth Tax : $525 00 New York
SONYMA: $000
On (Recorded Date) : 12/06/2012
County Tax : $525.00
At (RecordedTime): 2:09:00PM
Total: $2,700.00
TotalFees : $2,845.00
Doc ID - 026314580021 Paul Piperato,
County Clerk
This sheet constitutes the Clerks endorsement required by Section 319 of Real Property Law of the State of New York
EnteredBy:SS PrintedOn
12/13/2012At : 2:09:37PM
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Mortgage Recording Tax:
After Recording Return To:
PROSPECT LENDING, LLC
15301 VENTURA BLVD. , STE D300
SHERMAN OAKS , CALIFORNIA 91403
Loan Number: 81262342
[SpaceAboveThis LineForRecordingData]
MORTGAGE
MIN: 100034200812623423 MERS Phone: 888-679-6377
WORDS USED OFTEN IN THIS DOCUMENT
Instrurnent."
This document, which is dated
NOVEMBER 16 , 2012
(A) "Security , togetherwith
all Riders to this document, will be called the "Security Instrument."
"Borrower." John C. Heath and Doris Gordon-Heath
(B)
,
whoseaddressis 150 EAGLE RIDGE WAY, NANUET, NEW YORK 10954
be called "Borrower"
sometimeswill
and sometimessimply "I"
or "me."
(C) "MERS"is MortgageElectronicRegistration Systems,Inc. MERSisaseparatecorporation that isacting solely
as a nomineefor Lender and Lender's successorsand assigns. MERS is organized and existing under the [aws of
MI 48501-2026 and a street address of 1901 E.
Delaware, and has a mailing addressof P.O. Box 2026, Flint,
Voorhees Street, Suite C, Danville, IL 61834.
MERS telephonenumber is (888) 679-MERS. FOR PURPOSES
OF RECORDING THIS MORTGAGE, MERS IS THE MORTGAGEE OF RECORD.
"Lender." PROSPECT A LIMITED LIABILITY COMPANY
(D) LENDING, LLC,
will be called "Lender."
Lender is a corporation or associationwhich exists under the laws of
DELAWARE
Lender's addressis
15301 VENTURA BLVD. , STE D300, SHERMAN OAKS ,
CALIFORNIA 91403
"Note."The note signed by Borrower and dated
NOVEMBER 2012
(E) 16, , will
be called the
"Note."The Note showsthat I owe Lender
TWO HUNDRED TEN THOUSAND AND 00/100
Dollars (U.S. $
210, 000. 00 )
plus interest and other amountsthat may be payable. I havepromised to pay this debt in Periodic Paymentsand to
pay the debt in full by
DECEMBER 1, 2027
Section: Block: Lot(syUnit
No(s).:
NEWYORK-SingleFamily--Fannie
Mae/Freddie
MacUNIFORMINSTRUMENT- MERS DocAfe
Form3033 01/01 Page1 of 16 com
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(F) The property that is describedbelow in the section titled "Description of the Property," will
"Property." be
"Property."
called the
"Loan."The "Loan"meansthe debt evidencedby the Note, plus interest, any prepaymentchargesand late
(G)
chargesdue under the Notc, and all sumsduc under this Security Instrument, plus mterest.
(H) "Sums Secured." The amountsdescribedbelow in the sectiontitled "Borrower' s Transfer to Lenderof Rights
in the Property" sometimeswill be called the "Sums Secured"
(I) All Ridersattachedto this Security Instrument that are signed by Borrower will be called "Riders."
"Riders."
The following Riders are to be signed by Borrower [check box asapplicabic]:
O Adjustable RateRider O PlannedUnit Development Rider
O Balloon Rider Biweekly Payment Rider
1-4 Family Rider O SecondHome Rider
Condominium Rider O Other(s) [specify]
Law." All
(J) "Applicable controlling applicable federal, state and local statutes, regulations, ordinancesand
administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable,judicial
be called "Applicable Law."
opinions will
(K) "Community Association Ducs, Fees, and Assessments." All dues, fees, assessments
and other chargesthat
are imposed on Borrower or the Property by a condominium association, homeowners association or similar
organization will be called "Community Association Dues, Fees, and Assessments."
(L) "Electronic Funds Transfer" meunsany transfer of money, other than by check,
"Electronic Funds Transfer."
draft, or similar paperinstrument, which is initiated through anelectronic terminal, telephonic instrument,computer,
Some
or magnetictape so as to order, instruct, or authorize a financial institution to debit or credit an account.
commonexamplesof an Electronic Funds Transfer arepoint-of-sale transfers(where a card suchasanassetor debit
transactions, transfers initiated by telephone,wire
card is usedat a merchant), automatedteller machine(or ATM)
transfers, and automatedclearinghousetransfers.
(M) Those items that are describedin Section3 will be called "Escrow Items."
"Escrow Items."
(N) "Miscellaneous Proceeds." "Miscellaneous Proceeds"meansany compensation,settlement,awardof damages,
or proceedspaid by any third party (other than Insurance Proceeds,as defined in, and paid under the coverage
(i) damageto, or destruction of, the Property; (ii) Condemnationor other taking of all
describedin, Section5) for:
conveyancein lieu of Condemnation or sale to avoid Condemnation; or (iv)
or any part of the Property; (iii)
misrepresentationsof, or omissions as to, the value and/or condition of the Property.
A taking of the Property by
"Condemnation."
any governmentalauthority by eminent domain is known as
"MortgageInsurance."
"MortgageInsurance"
meansinsuranceprotecting Lender againstthenonpaymentof,
(0)
or default on, the Loan.
(P) "Periodic Payment."
The regularly scheduledamountdue for (i) principal and interestundertheNote, and (ii)
be called "Periodic Payment."
any amountsunder Section3 will
"RESPA." "RESPA" means the Real Estate SettlementProceduresAct (12 U S.C. §2601 et
(Q) seq.) and its
implementing regulation, Regulation X (12 C.F.R. Part 1024), as they might be amendedfrom time to time, or any
additional or successorlegislation or regulation that governs the samesubject matter.
As used in this Security
"RESPA" refers to all requirementsand restrictions that are imposed in regard 10a
Instrument, "federally related
mortgageloan" evenif the Loan doesnot qualify as a "federally relatedmortgage loan" underRESPA.
NEWYORK-SingleFamily--Fannie MacUNIFORM
Mae/Freddle INSTRUMENT- MERS DocMagicdUlpenas
Form3033 01/01 Page2 of 16 www.docmagic.com
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BORROWER'S TRANSFER TO LENDER OF RIGHTS IN THE PROPERTY
I mortgage, grant and convey the Property to MERS (solely as nominee for Lender and Lender's successorsin
interest) and its successorsin interest subject to the terms of this Security Instrument. This meansthat, by signing
this Security Instrument, I am giving Lender thoserights that are stated in this Security Instrument and also those
rights that Applicable Law gives to lenderswho hold mortgageson real property.
I am giving Lender theserights
to protect Lender from possible lossesthat might result if I fail to:
(A) Pay all the amountsthat I owe Lender as stated in the Note including, but not limited to, all renewals,
extensionsand modifications of the Note;
(B) Pay, with interest, any amountsthat Lender spendsunder this Security Instrument to protect the value of
the Property and Lender's rights in the Property; and
(C) Keep all of my other promisesand agreementsunder this Security Instrument and the Note.
I understandand agrccthat MERS holds only legal title to the rights granted by me in this Security Instrument, but,
if necessaryto comply with law or custom, MERS (asnomineefor Lender andLender's successorsand assigns)has
the right:
(A) To exercise any or all of those rights, including, but not limited to, the right to forecloseand sell the
Property; and
(B) To take any action required of Lender including, but not limited to, releasing and canceling this Security
Instrument.
DESCRIPTION OF THE PROPERTY
I give MERS (solely as nominee for Lender and Lender's successorsin interest) rights in the Property describedin
(A) through (G) below:
(A) The Property which is located at 150 EAGLE RIDGE WAY
{street)
NANUET , New York 10954
[City,Townor Village] [ZipCodc]
This Property is in ROCKLAND County. It has the following legal description:
LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF
A.P.N.: 392089.057.012-0001-003.002/0120
(B) All buildings andother improvementsthatarelocatedon the Property describedin subsection(A) of this section;
(C) All rights in other property that I have as owner of the Property described in subsection(A) of this section.
Theserights areknown as "easementsand appurtenancesattachedto the Property;"
(D) All rights that I havein the land which lies in the streetsor roadsin front of, or next to, the Property described
in subsection(A) of this section;
(E) Allfixtures that are now or in the future will
be on the Property described in subsections(A) and (B) of this
section;
(F) All of therights and property describedin subsections(B) through (E) of this sectionthat I acquirein the future;
and
NEWYORK--Single Mae/Freddie
Family--Fannie MacUNIFORMINSTRUMENT- MERS DocMagic smuls
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(G) All replacementsof or additions to the Property describedin subsections(B) through (F) of this sectionand all
InsuranceProceedsfor loss or damageto, and all MisecllaneousProceedsof the Property describedin subsections
(A) through (F) of this section.
BORROWEiiS RIGHT TO MORTGAGE THE PROPERTY AND BORROWER'S OBUGATION TO
DEFEND OWNERSHIP OF THE PROPERTY
I promisc that: (A) I lawfully own the Property; (B) I havethe right to mortgage. grant and convey the Property to
Lender; and (C) thereareno outstanding claims or chargesagainstthe Property, except for thosewhich areof pubhe
record.
I give a generalwarranty of title to Lender. This meansthat I will be fully responsiblefor any losseswhich Lender
suffers becausesomeoneother than myself has some of ihe rights in the Property which I promisc that I have
I
promise that J will defend my ownership of the Property against any claims of such rights
PLAIN LANGUAGE SECURITY INSTRUMENT
This Security Instrumentcontainspromiscsand agreementsthat arc usedin real property security instrumentsall over
thecountry. h alsocon|ainsother promiscsand agreementsthat vary in different parts of the country. My promises
and agreementsarc statedin "plain language."
COVENANTS
I promise and I agreewith Lender as follows:
L Borrower's Promise to Pay. pay to Lender on time principal and interest due underthe Note and
I will
any prepayment, late chargesand other amounts due under the Note.
I will
also pay all amountsfor Escrow Items
under Section3 of this Security Instrument.
Paymentsduc under the Note and this Security Instrumensshall be made in U.S. currency.
If any of my
paymentsby checkor other payment instrument is returned to Lender unpaid, Lender may require my payment be
treasurer'
s checkor cashier's check,drawn upon
madeby: (a) cash;(b) moneyorder; (c) certified check, bank check,
an institution whosedepositsare insured by a federal agency, instrumentality, or entity: or (d) Electronic Funds
Transfer.
Paymentsare deemed received by Lender when received at the location required in the Note, or at another
locationdesignatedby Lenderunder Section 15ofthis Security Instrument. Lender may return or acceptany payment
or partial paymentif it is for an amount that is less than the amount that is then due.
If Lender accepts a lesser
payment, Lender may refuse to accepta lesserpayment that I may make in the future and doesnot waive any of its
rights. Lender is not obligated to apply suchlesserpaymentswhen it acceptssuchpayments. If intereston principal
accrucsasif all Periodic Paymentshad beenpaid when due, then Lender neednot pay interest on unappliedfunds.
Lender may hold such unapplied funds until I make paymentsto bring the Loan current.
If I do not do so within a
reasonableperiod of time, Lenderwill cither apply such funds or return them to me. In the eventof foreclosure, any
unappliedfunds will be applied to the outstanding principal balance immediately prior to foreclosure. No offset or
claim which I might havenow or in the future againstLender will
relieve me from making paymentsduc under the
Note and this Security Instrument or keeping all of my other promises and agreementssecuredby this Security
Instrument.
2. Application
of Borrower's
Payments and Insurance Proceeds. Unless Applicable Law or this Section
2 requiresotherwise, Lender will apply eachof my paymentsthat Lender acceptsin the following order:
First, to pay interestduc under the Note;
Next, to pay principaf due under the Note; and
Next, to pay the amountsdue Lender under Section 3 of this Security Instrument.
Suchpaymentswill be applied to eachPeriodic Payment in the order in which it becamedue.
Any remaining amountswill be applied as follows:
First, to pay any late charges;
Next, to pay any other amountsdue under this Security Instrument; and
Next, to reducethe principal balanceof the Note.
NEWYORK-SingleFamily-FannieMae/Freddie
MacUNIFORMINSTRUMENT- MERS DocMugic %mn;s
Forrn3033 01/01 Pago4 of 16 www.doemagk.mm
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If Lenderreceivesa paymentfrom me for a late Periodic Paymentwhich mcludesa sufflegentamountto pay any
late charge due, the payment may be applied to the late Periodic Paymentand the late charge. If more than one
Periodic Paymentis due, Lender may apply any paymemreceived from me: First, to the repaymentof the Periodic
Paymentsthat are due if, and sothe ex1entthal, cachpaymentcan be paiti m full; Nexi, to the extent thal any excess
exists after the paymentis applied to the full paymentof one or more Periodic Payments, suchexcessmay beapphed
to any late chargesdue.
Voluntary prepaymemswdl be applied as follows:
First, to any prepayment charges; and Next, asdescribed
in the Note.
Any applicationof payments, InsuranceProceeds,or Miscellancous Proceedsto prmcipal due under the Note
will not extendor postponethe due dateof the Periodic Paymentsor changethe amount of thosepayments.
3. MonthlyPayments For Taxes And Insurance.
(a)Borrower's Obligations.
I will pay to Lender all amounts necessaryto pay for taxes, assessments,water charges, sewerrents andother
similar charges,ground leaseholdpaymentsor rents (if any), hazardor property insurancecovering the Property,
flood insurance(if any), and any required Mortgage Insurance,or a Loss Reserveas describedin Section 10 in the
place of Mortgage Insurance. liach Periodic Payment will
include an amount ro be applied toward paymentof the
" Escrow Items:"
following itemswhich are called
(1) The taxes,assessments,water charges,sewerrenasand other similar charges, on the Property which under
Applicable Law may be superior to this Security Instrument as a Lien on the Property.
Any claim, demandor
chargethat is madeagainst property becausean obligation has not beenfulfdled is known asa "Licn;"
(2)The leascholdpaymentsor ground rents on the Property (if any),
(3)The premium for any and all insurancerequired by Lender under Section 5 of this Security Instrument;
(4)The premium for Mortgage Insurance(if any);
(5)The amount I may be required to pay Lender under Section 10of this Security Instrument insteadof the
paymentof the premium for Mortgage Insurance(if any); and
(6) If required by Lender, the amount for any Community Association Ducs, Fees, and Assessments.
Añer signing the Note, or at any time during its term, Lender may include theseamountsasEscrowItems. The
be basedon Leader' s estimateof the annual amountrequired.
monthly paymentI win make for Escrow Items will
I will pay all of theseamountsto Lender unlessLendertells me, in writing,
that 1do not haveto do so, or unless
Applicable Law requires otherwise.
I win make thesepayments on the same day that my Periodic Paymentsof
principal and interestare due under the Notc.
The amountsthat I pay to Lender for Escrow Items under this Section3 will be called "Escrow Funds." I will
pay Lenderthe EscrowFunds for Escrow ItemsunlessLender waives my obligation to pay the EscrowFundsfor any
or all Escrow 1tems. Lendct may waive rny obligation to pay to Lcnder Escrow Funds for any or all Escrow Items
at any time. In the eventof such waiver, I will
Any suchwaiver must be in writing. pay directly, when and where
payable,the amountsdue for any Escrow Items for which paymentof Escrow Funds hasbeenwaived by Leader and,
if Lender requires, will promptly sendto Lender receipts showing suchpayment within suchtime period asLender
My obligation to make such paymentsand to provide receipts win be consideredto be a promiseand
may require.
agreementcontainedin this Security Instrument, asthe phrase"promises and agreements"is usedin Section9 of this
amobligated to pay Escrow Items directly, pursuantto a waiver, andI fail to pay theamount
Security Instrument. ffI
due for an Escrow Dem, Lender may pay titat amount and I will
then be obligated under Section9 of this Security
Instrument to repay to Lender
Leader may revoke the waiver as to any or an Escrow items at any tirne by a notice
given in accordancewith Section 15of this Security Instrument and, upon the revocation, I will pay to Lender all
Escrow Funds, and in amounts, that are then required under this Section3.
Tpromisc to promptly sendto Lender any notices that Ireceive of Escrow Item arnountsto be paid. Lenderwill
estimatefrom time to time the amountof Escrow Funds I will haveto pay by using existing assessmcats
andbills and
reasonableestimatesof the amount I will haveto pay for Escrow Items in the future, unlessApplicable Law requires
Lender to useanothermethod for determimng the amount I am to pay.
Preview
FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF ROCKLAND ----------------------------------------------------------------X MORTGAGE ELECTRONIC REGISTRATION AMENDED COMPLAINT SYSTEMS, INC. Plaintiff, vs Index # 031780/2020 MORTGAGED PREMISES: JOHN C. HEATH, DORIS GORDON-HEATH, 150 Eagle Ridge Way Nanuet, NY 10954 Defendant(s). DSBL #: 57.12 - 1 - 3.2 - 120 ----------------------------------------------------------------X The Plaintiff by its attorneys, Gross Polowy, LLC, for its amended complaint against the Defendant(s) alleges upon information and belief as follows: 1. This action is brought pursuant to RPAPL Article § 15 and NY Real Property Law § 329 for an Order (a) expunging the Satisfaction of Mortgage recorded on December 17, 2014 as Instrument Number 2014-00033751 (b) directing the Rockland County Clerk to reform the Land Records in the Clerk's Office to reflect the cancellation of the Erroneous Satisfaction of Mortgage as if said Satisfaction was never recorded, (d) restoring all of the Plaintiff's rights given by the Mortgage referenced therein (e) enjoining the defendants from taking any action that is adverse to the Plaintiff's lien position or its related rights. 2. MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. ("MERS") is a corporation organized and existing under the laws of Delaware with itsprincipal place of business in Virginia and is the holder of the Mortgage which this Action seeks to restore. 3. On or about November 16, 2012, John C. Heath and Doris Gordon-Heath ("Borrowers") executed and delivered a note whereby they promised to pay the sum of $210,000.00 plus interest on the unpaid amount due and offered the Property commonly known as 150 Eagle Ridge Way, Nanuet, NY 10954 ("Subject Property") as collateral. The subject property is more fully described in the legal description attached hereto as Schedule A. 4. As security for the payment of the note, the Borrowers duly executed and delivered a mortgage ("First Mortgage") to MERS in the amount of $210,000.00, which was recorded on December 6, 2012 at Instrument No. 2012-00044293. A copy of the First Mortgage is attached hereto as Schedule B. 5. On or about November 21, 2014, the Borrowers duly executed and delivered a gap mortgage ("Gap Mortgage") to MERS in the amount of $11,682.75, which was recorded on 1 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 January 7, 2015 at Instrument No. 2015-00000433. A copy of the Gap Mortgage is attached hereto as Schedule C. 6. Also on or about November 21, 2014, the First Mortgage and Gap Mortgage were consolidated into a Consolidation, Extension and Modification Agreement ("Unrecorded CEMA") in the amount of $200,000.00, which was not recorded and cannot be recorded or assigned until the Erroneous Satisfaction is expunged. A copy of the CEMA is attached hereto as Schedule D. 7. Upon information and belief, due to fraud or mistake, an Erroneous Satisfaction ("Erroneous Satisfaction") of only the First Mortgage was recorded on December 17, 2014 as Instrument Number 2014-00033751 with the Rockland County Clerk. Despite this, the Mortgage has not been satisfied. The First Mortgage was not in fact paid off or satisfied but instead consolidated with the Gap Mortgage as the Unrecorded CEMA shows. A copy of this Erroneous Satisfaction is annexed as Schedule E. 8. Due to the Erroneous Satisfaction, the subject mortgage's lien priority is jeopardized every day that the First Mortgage appears satisfied on the record. 9. Upon information and belief, the Borrowers are fully aware that there is an outstanding debt owed on the Mortgage. 10. Upon information and belief, there is no showing of detrimental reliance. The Borrowers do not appear to have changed positions to rely on the Erroneous Satisfaction. 11. Upon information and belief, the Defendants herein are of full age and sound mind and is not an absentee, infant, incompetent, or alcohol abuser. 12. A judgment will not affect a person or persons not in being or ascertained at the commencement of this action, who by any contingency contained in a devise or grant or otherwise, could afterward become entitled to a beneficial estate or interest in the property. 13. No personal claim is made, in this action against any Defendant other that a Defendant who shall assert a claim adverse to the claim of Plaintiff set forth in this Amended Complaint. 14. Plaintiff seeks judgment to the effect that the Defendant and every person or entity claiming under them are barred from all claims to an estate or interest in the property described in the Amended Complaint superior to the Plaintiff's mortgage interests. WHEREFORE, PLAINTIFF RESPECTFULLY REQUESTS AN ORDER: (a) expunging the Satisfaction of Mortgage recorded on December 17, 2014 as Instrument Number 2014-00033751; 2 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 (b) directing the Rockland County Clerk to reform the Land Records in the Clerk's Office to reflect the cancellation of the Erroneous Satisfaction of Mortgage as if said Satisfaction was never recorded; (c) restoring allof the Plaintiff's rights given by the Mortgage referenced therein; (d) enjoining the Defendants from taking any action that is adverse to the Plaintiff's lien position or its related rights; (e) and granting such other relief as the Court deems just and proper. /s/Austin R. Caster Austin R. Caster, Esq. Gross Polowy, LLC 1775 Wehrle Drive, Suite 100 Williamsville, NY 14221 3 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 Schedule A - Legal Description ALL that certain piece, or parcel of real property, with the buildings and improvements thereon erected, situate and being part of a Condominium located in Nanuet, Town of Clarkstown, County of Rockland and State of New York, known and designated as Home No. 12, together with 1/79 undivided interest in the Common Elements of the condominium hereinafter described as the same is defined in the Declaration of Condominium hereinafter referred to. The real property above described is a Home shown on the plans of a Condominium prepared and certified by James Tanner, registered Architect and filed in the Office of the Clerk of the County of Rockland on the 26th day of October, 1994, as File No. 6745/94 defined in the Declaration of Condominium entitled, "Declaration of Eagle Ridge Phase D made by JMK Building Corp., under Article 9-B of the New York Real Property Law dated October 18, 1994 and recorded in the Office of the Clerk of the County of Rockland on the 26th day of October, 1994, in Liber 725 of Conveyances at page 2202 covering the property therein described. TOGETHER with the rights of ingress and egress across the roads of the condominium to the nearest public highway. 4 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 Schedule B - First Mortgage 5 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 Paul Piperato, County Clerk RECEIVED NYSCEF: 07/08/2020 1 SouthMain St., Ste 100 New City, NY10956 (845) 638-5070 Rockland County Clerk Recording Cover Sheet Received From : Return To : FAMILY ABSTRACT FAMILY ABSTRACT 337 NORTH MAIN ST - SUlTE 14 337 NORTH MAIN ST - SUITE14 NEW CITY, NY 10956 NEW CITY, NY 10956 Method Returned : FILE CABINET FirstGRANTOR HEATH, JOHN C FirstGRANTEE PROSPECT LENDING LLC Index Type : Land Records Instr Number : 2012-00044293 Book : Page : Type of Instrument: Mortgage Type of Transaction: Mtg Type B Recording Fee : $145.00 The Propertyaffected by this instrument is situated in Clarkstown, in the Recording Pages : 21 County of Rockland, New York Mortgage Taxes Property Located : Clarkstown SerialNumber : DD5926 Mortgage Amount : $210,000.00 Basic Tax : $1,050 00 State of New York Local Tax: $0.00 County of Rockland AdditionalTax : S600.00 I hereby certify that the within and foregoing was recordedin the Clerk's office for Rockland County, Transpw-st!on Auth Tax : $525 00 New York SONYMA: $000 On (Recorded Date) : 12/06/2012 County Tax : $525.00 At (RecordedTime): 2:09:00PM Total: $2,700.00 TotalFees : $2,845.00 Doc ID - 026314580021 Paul Piperato, County Clerk This sheet constitutes the Clerks endorsement required by Section 319 of Real Property Law of the State of New York EnteredBy:SS PrintedOn 12/13/2012At : 2:09:37PM 6 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 Mortgage Recording Tax: After Recording Return To: PROSPECT LENDING, LLC 15301 VENTURA BLVD. , STE D300 SHERMAN OAKS , CALIFORNIA 91403 Loan Number: 81262342 [SpaceAboveThis LineForRecordingData] MORTGAGE MIN: 100034200812623423 MERS Phone: 888-679-6377 WORDS USED OFTEN IN THIS DOCUMENT Instrurnent." This document, which is dated NOVEMBER 16 , 2012 (A) "Security , togetherwith all Riders to this document, will be called the "Security Instrument." "Borrower." John C. Heath and Doris Gordon-Heath (B) , whoseaddressis 150 EAGLE RIDGE WAY, NANUET, NEW YORK 10954 be called "Borrower" sometimeswill and sometimessimply "I" or "me." (C) "MERS"is MortgageElectronicRegistration Systems,Inc. MERSisaseparatecorporation that isacting solely as a nomineefor Lender and Lender's successorsand assigns. MERS is organized and existing under the [aws of MI 48501-2026 and a street address of 1901 E. Delaware, and has a mailing addressof P.O. Box 2026, Flint, Voorhees Street, Suite C, Danville, IL 61834. MERS telephonenumber is (888) 679-MERS. FOR PURPOSES OF RECORDING THIS MORTGAGE, MERS IS THE MORTGAGEE OF RECORD. "Lender." PROSPECT A LIMITED LIABILITY COMPANY (D) LENDING, LLC, will be called "Lender." Lender is a corporation or associationwhich exists under the laws of DELAWARE Lender's addressis 15301 VENTURA BLVD. , STE D300, SHERMAN OAKS , CALIFORNIA 91403 "Note."The note signed by Borrower and dated NOVEMBER 2012 (E) 16, , will be called the "Note."The Note showsthat I owe Lender TWO HUNDRED TEN THOUSAND AND 00/100 Dollars (U.S. $ 210, 000. 00 ) plus interest and other amountsthat may be payable. I havepromised to pay this debt in Periodic Paymentsand to pay the debt in full by DECEMBER 1, 2027 Section: Block: Lot(syUnit No(s).: NEWYORK-SingleFamily--Fannie Mae/Freddie MacUNIFORMINSTRUMENT- MERS DocAfe Form3033 01/01 Page1 of 16 com www.docmagic 7 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 (F) The property that is describedbelow in the section titled "Description of the Property," will "Property." be "Property." called the "Loan."The "Loan"meansthe debt evidencedby the Note, plus interest, any prepaymentchargesand late (G) chargesdue under the Notc, and all sumsduc under this Security Instrument, plus mterest. (H) "Sums Secured." The amountsdescribedbelow in the sectiontitled "Borrower' s Transfer to Lenderof Rights in the Property" sometimeswill be called the "Sums Secured" (I) All Ridersattachedto this Security Instrument that are signed by Borrower will be called "Riders." "Riders." The following Riders are to be signed by Borrower [check box asapplicabic]: O Adjustable RateRider O PlannedUnit Development Rider O Balloon Rider Biweekly Payment Rider 1-4 Family Rider O SecondHome Rider Condominium Rider O Other(s) [specify] Law." All (J) "Applicable controlling applicable federal, state and local statutes, regulations, ordinancesand administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable,judicial be called "Applicable Law." opinions will (K) "Community Association Ducs, Fees, and Assessments." All dues, fees, assessments and other chargesthat are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization will be called "Community Association Dues, Fees, and Assessments." (L) "Electronic Funds Transfer" meunsany transfer of money, other than by check, "Electronic Funds Transfer." draft, or similar paperinstrument, which is initiated through anelectronic terminal, telephonic instrument,computer, Some or magnetictape so as to order, instruct, or authorize a financial institution to debit or credit an account. commonexamplesof an Electronic Funds Transfer arepoint-of-sale transfers(where a card suchasanassetor debit transactions, transfers initiated by telephone,wire card is usedat a merchant), automatedteller machine(or ATM) transfers, and automatedclearinghousetransfers. (M) Those items that are describedin Section3 will be called "Escrow Items." "Escrow Items." (N) "Miscellaneous Proceeds." "Miscellaneous Proceeds"meansany compensation,settlement,awardof damages, or proceedspaid by any third party (other than Insurance Proceeds,as defined in, and paid under the coverage (i) damageto, or destruction of, the Property; (ii) Condemnationor other taking of all describedin, Section5) for: conveyancein lieu of Condemnation or sale to avoid Condemnation; or (iv) or any part of the Property; (iii) misrepresentationsof, or omissions as to, the value and/or condition of the Property. A taking of the Property by "Condemnation." any governmentalauthority by eminent domain is known as "MortgageInsurance." "MortgageInsurance" meansinsuranceprotecting Lender againstthenonpaymentof, (0) or default on, the Loan. (P) "Periodic Payment." The regularly scheduledamountdue for (i) principal and interestundertheNote, and (ii) be called "Periodic Payment." any amountsunder Section3 will "RESPA." "RESPA" means the Real Estate SettlementProceduresAct (12 U S.C. §2601 et (Q) seq.) and its implementing regulation, Regulation X (12 C.F.R. Part 1024), as they might be amendedfrom time to time, or any additional or successorlegislation or regulation that governs the samesubject matter. As used in this Security "RESPA" refers to all requirementsand restrictions that are imposed in regard 10a Instrument, "federally related mortgageloan" evenif the Loan doesnot qualify as a "federally relatedmortgage loan" underRESPA. NEWYORK-SingleFamily--Fannie MacUNIFORM Mae/Freddle INSTRUMENT- MERS DocMagicdUlpenas Form3033 01/01 Page2 of 16 www.docmagic.com 8 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 BORROWER'S TRANSFER TO LENDER OF RIGHTS IN THE PROPERTY I mortgage, grant and convey the Property to MERS (solely as nominee for Lender and Lender's successorsin interest) and its successorsin interest subject to the terms of this Security Instrument. This meansthat, by signing this Security Instrument, I am giving Lender thoserights that are stated in this Security Instrument and also those rights that Applicable Law gives to lenderswho hold mortgageson real property. I am giving Lender theserights to protect Lender from possible lossesthat might result if I fail to: (A) Pay all the amountsthat I owe Lender as stated in the Note including, but not limited to, all renewals, extensionsand modifications of the Note; (B) Pay, with interest, any amountsthat Lender spendsunder this Security Instrument to protect the value of the Property and Lender's rights in the Property; and (C) Keep all of my other promisesand agreementsunder this Security Instrument and the Note. I understandand agrccthat MERS holds only legal title to the rights granted by me in this Security Instrument, but, if necessaryto comply with law or custom, MERS (asnomineefor Lender andLender's successorsand assigns)has the right: (A) To exercise any or all of those rights, including, but not limited to, the right to forecloseand sell the Property; and (B) To take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. DESCRIPTION OF THE PROPERTY I give MERS (solely as nominee for Lender and Lender's successorsin interest) rights in the Property describedin (A) through (G) below: (A) The Property which is located at 150 EAGLE RIDGE WAY {street) NANUET , New York 10954 [City,Townor Village] [ZipCodc] This Property is in ROCKLAND County. It has the following legal description: LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF A.P.N.: 392089.057.012-0001-003.002/0120 (B) All buildings andother improvementsthatarelocatedon the Property describedin subsection(A) of this section; (C) All rights in other property that I have as owner of the Property described in subsection(A) of this section. Theserights areknown as "easementsand appurtenancesattachedto the Property;" (D) All rights that I havein the land which lies in the streetsor roadsin front of, or next to, the Property described in subsection(A) of this section; (E) Allfixtures that are now or in the future will be on the Property described in subsections(A) and (B) of this section; (F) All of therights and property describedin subsections(B) through (E) of this sectionthat I acquirein the future; and NEWYORK--Single Mae/Freddie Family--Fannie MacUNIFORMINSTRUMENT- MERS DocMagic smuls Form3033 01/01 Page3 of 16 www.docmagic.com 9 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 (G) All replacementsof or additions to the Property describedin subsections(B) through (F) of this sectionand all InsuranceProceedsfor loss or damageto, and all MisecllaneousProceedsof the Property describedin subsections (A) through (F) of this section. BORROWEiiS RIGHT TO MORTGAGE THE PROPERTY AND BORROWER'S OBUGATION TO DEFEND OWNERSHIP OF THE PROPERTY I promisc that: (A) I lawfully own the Property; (B) I havethe right to mortgage. grant and convey the Property to Lender; and (C) thereareno outstanding claims or chargesagainstthe Property, except for thosewhich areof pubhe record. I give a generalwarranty of title to Lender. This meansthat I will be fully responsiblefor any losseswhich Lender suffers becausesomeoneother than myself has some of ihe rights in the Property which I promisc that I have I promise that J will defend my ownership of the Property against any claims of such rights PLAIN LANGUAGE SECURITY INSTRUMENT This Security Instrumentcontainspromiscsand agreementsthat arc usedin real property security instrumentsall over thecountry. h alsocon|ainsother promiscsand agreementsthat vary in different parts of the country. My promises and agreementsarc statedin "plain language." COVENANTS I promise and I agreewith Lender as follows: L Borrower's Promise to Pay. pay to Lender on time principal and interest due underthe Note and I will any prepayment, late chargesand other amounts due under the Note. I will also pay all amountsfor Escrow Items under Section3 of this Security Instrument. Paymentsduc under the Note and this Security Instrumensshall be made in U.S. currency. If any of my paymentsby checkor other payment instrument is returned to Lender unpaid, Lender may require my payment be treasurer' s checkor cashier's check,drawn upon madeby: (a) cash;(b) moneyorder; (c) certified check, bank check, an institution whosedepositsare insured by a federal agency, instrumentality, or entity: or (d) Electronic Funds Transfer. Paymentsare deemed received by Lender when received at the location required in the Note, or at another locationdesignatedby Lenderunder Section 15ofthis Security Instrument. Lender may return or acceptany payment or partial paymentif it is for an amount that is less than the amount that is then due. If Lender accepts a lesser payment, Lender may refuse to accepta lesserpayment that I may make in the future and doesnot waive any of its rights. Lender is not obligated to apply suchlesserpaymentswhen it acceptssuchpayments. If intereston principal accrucsasif all Periodic Paymentshad beenpaid when due, then Lender neednot pay interest on unappliedfunds. Lender may hold such unapplied funds until I make paymentsto bring the Loan current. If I do not do so within a reasonableperiod of time, Lenderwill cither apply such funds or return them to me. In the eventof foreclosure, any unappliedfunds will be applied to the outstanding principal balance immediately prior to foreclosure. No offset or claim which I might havenow or in the future againstLender will relieve me from making paymentsduc under the Note and this Security Instrument or keeping all of my other promises and agreementssecuredby this Security Instrument. 2. Application of Borrower's Payments and Insurance Proceeds. Unless Applicable Law or this Section 2 requiresotherwise, Lender will apply eachof my paymentsthat Lender acceptsin the following order: First, to pay interestduc under the Note; Next, to pay principaf due under the Note; and Next, to pay the amountsdue Lender under Section 3 of this Security Instrument. Suchpaymentswill be applied to eachPeriodic Payment in the order in which it becamedue. Any remaining amountswill be applied as follows: First, to pay any late charges; Next, to pay any other amountsdue under this Security Instrument; and Next, to reducethe principal balanceof the Note. NEWYORK-SingleFamily-FannieMae/Freddie MacUNIFORMINSTRUMENT- MERS DocMugic %mn;s Forrn3033 01/01 Pago4 of 16 www.doemagk.mm 10 of 91 FILED: ROCKLAND COUNTY CLERK 07/08/2020 12:08 PM INDEX NO. 031780/2020 NYSCEF DOC. NO. 14 RECEIVED NYSCEF: 07/08/2020 If Lenderreceivesa paymentfrom me for a late Periodic Paymentwhich mcludesa sufflegentamountto pay any late charge due, the payment may be applied to the late Periodic Paymentand the late charge. If more than one Periodic Paymentis due, Lender may apply any paymemreceived from me: First, to the repaymentof the Periodic Paymentsthat are due if, and sothe ex1entthal, cachpaymentcan be paiti m full; Nexi, to the extent thal any excess exists after the paymentis applied to the full paymentof one or more Periodic Payments, suchexcessmay beapphed to any late chargesdue. Voluntary prepaymemswdl be applied as follows: First, to any prepayment charges; and Next, asdescribed in the Note. Any applicationof payments, InsuranceProceeds,or Miscellancous Proceedsto prmcipal due under the Note will not extendor postponethe due dateof the Periodic Paymentsor changethe amount of thosepayments. 3. MonthlyPayments For Taxes And Insurance. (a)Borrower's Obligations. I will pay to Lender all amounts necessaryto pay for taxes, assessments,water charges, sewerrents andother similar charges,ground leaseholdpaymentsor rents (if any), hazardor property insurancecovering the Property, flood insurance(if any), and any required Mortgage Insurance,or a Loss Reserveas describedin Section 10 in the place of Mortgage Insurance. liach Periodic Payment will include an amount ro be applied toward paymentof the " Escrow Items:" following itemswhich are called (1) The taxes,assessments,water charges,sewerrenasand other similar charges, on the Property which under Applicable Law may be superior to this Security Instrument as a Lien on the Property. Any claim, demandor chargethat is madeagainst property becausean obligation has not beenfulfdled is known asa "Licn;" (2)The leascholdpaymentsor ground rents on the Property (if any), (3)The premium for any and all insurancerequired by Lender under Section 5 of this Security Instrument; (4)The premium for Mortgage Insurance(if any); (5)The amount I may be required to pay Lender under Section 10of this Security Instrument insteadof the paymentof the premium for Mortgage Insurance(if any); and (6) If required by Lender, the amount for any Community Association Ducs, Fees, and Assessments. Añer signing the Note, or at any time during its term, Lender may include theseamountsasEscrowItems. The be basedon Leader' s estimateof the annual amountrequired. monthly paymentI win make for Escrow Items will I will pay all of theseamountsto Lender unlessLendertells me, in writing, that 1do not haveto do so, or unless Applicable Law requires otherwise. I win make thesepayments on the same day that my Periodic Paymentsof principal and interestare due under the Notc. The amountsthat I pay to Lender for Escrow Items under this Section3 will be called "Escrow Funds." I will pay Lenderthe EscrowFunds for Escrow ItemsunlessLender waives my obligation to pay the EscrowFundsfor any or all Escrow 1tems. Lendct may waive rny obligation to pay to Lcnder Escrow Funds for any or all Escrow Items at any time. In the eventof such waiver, I will Any suchwaiver must be in writing. pay directly, when and where payable,the amountsdue for any Escrow Items for which paymentof Escrow Funds hasbeenwaived by Leader and, if Lender requires, will promptly sendto Lender receipts showing suchpayment within suchtime period asLender My obligation to make such paymentsand to provide receipts win be consideredto be a promiseand may require. agreementcontainedin this Security Instrument, asthe phrase"promises and agreements"is usedin Section9 of this amobligated to pay Escrow Items directly, pursuantto a waiver, andI fail to pay theamount Security Instrument. ffI due for an Escrow Dem, Lender may pay titat amount and I will then be obligated under Section9 of this Security Instrument to repay to Lender Leader may revoke the waiver as to any or an Escrow items at any tirne by a notice given in accordancewith Section 15of this Security Instrument and, upon the revocation, I will pay to Lender all Escrow Funds, and in amounts, that are then required under this Section3. Tpromisc to promptly sendto Lender any notices that Ireceive of Escrow Item arnountsto be paid. Lenderwill estimatefrom time to time the amountof Escrow Funds I will haveto pay by using existing assessmcats andbills and reasonableestimatesof the amount I will haveto pay for Escrow Items in the future, unlessApplicable Law requires Lender to useanothermethod for determimng the amount I am to pay.