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Filing # 67851657 E-Filed 02/12/2018 04:18:58 PM
IN THE CIRCUIT COURT OF THE NINTH
JUDICIAL CIRCUIT IN AND FOR OSCEOLA
COUNTY, FLORIDA
GENERAL JURISDICTION DIVISION
CASE NO.
HSBC BANK USA, NATIONAL
ASSOCIATION, AS TRUSTEE FOR ACE
SECURITIES CORP. HOME EQUITY
LOAN TRUST, SERIES 2006-OP2,
Plaintiff,
VS.
JAYNE CATHCART; UNKNOWN
SPOUSE OF JAYNE CATHCART; ANY
AND ALL UNKNOWN PARTIES
CLAIMING BY, THROUGH, UNDER,
AND AGAINST THE HEREIN NAMED
INDIVIDUAL DEFENDANT(S) WHO
ARE NOT KNOWN TO BE DEAD OR
ALIVE, WHETHER SAID UNKNOWN
PARTIES MAY CLAIM AN INTEREST
AS SPOUSES, HEIRS, DEVISEES,
GRANTEES, OR OTHER CLAIMANTS,
Defendant(s).
/
VERIFIED COMPLAINT FOR FORECLOSURE OF MORTGAGE
Plaintiff, HSBC BANK USA, NATIONAL ASSOCIATION, AS TRUSTEE FOR
ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-OP2, sues the
Defendants and alleges:
COUNT I- MORTGAGE FORECLOSURE
1. This is an action to foreclose a mortgage on real property in OSCEOLA County, Florida.
2. The Court has jurisdiction over the subject matter.
PAGE 1
17-0755633. On or about May 19, 2006, JAYNE CATHCART executed and delivered a promissory
note. A copy of the Note is attached hereto as Exhibit “A”.
4. On or about May 19, 2006, JAYNE CATHCART executed and delivered a mortgage
securing payment of the Note to OPTION ONE MORTGAGE CORPORATION, A
CALIFORNIA CORPORATION. The Mortgage was recorded on June 1, 2006, in Official
Records Book 3174, Page 710, of the Public Records of Osceola County, Florida, and
encumbered the property described in the Mortgage then owned by and in possession of the
Mortgagor, a copy of the Mortgage being attached hereto as Exhibit “B”. Said loan was modified
and a copy of the Home Affordable Modification Agreement is attached hereto and incorporated
herein as Exhibit “C”.
5. The Mortgage of the Plaintiff is a lien superior in dignity to any prior or subsequent right,
title, claim, lien or interest arising out of Mortgagor or the Mortgagor’s predecessor(s) in interest.
6. Plaintiff is the holder of the original Note secured by the Mortgage and is entitled to
foreclose pursuant to Florida Statute 673.3011(1).
7. Ocwen Loan Servicing, LLC (“Ocwen’”) is the loan servicer for this particular loan.
Plaintiff has delegated Ocwen the authority to service the loan on its behalf pursuant to a Limited
Power of Attorney.
8. Defendant(s) have defaulted under the Note and Mortgage by failing to pay the payment
due as of March 01, 2017, and all subsequent payments.
9. Plaintiff declares the full amount payable under the Note and Mortgage to be due, except
to the extent any part of that amount is or would be subject to a statute of limitations defense.
10. Defendant(s) owe Plaintiff $127,311.08, which includes a deferred principal balance in
PAGE 2
17-075563the amount of $67,420.00 that is due and owing on principal on the Note and Mortgage, plus
interest from and after February 01, 2017, and title search expenses for ascertaining necessary
parties to this action, pursuant to the documents attached, except for those defendants who have
been discharged in bankruptcy.
ll. In order to protect its security, the Plaintiff may have advanced and paid Ad Valorem
Taxes, premiums on insurance required by the Mortgage and other necessary costs, or may be
required to make such advances during the pendency of this action. Any such sum(s) so paid will
also be due and owing to the Plaintiff.
12. The property is now owned by Defendant, JAYNE CATHCART, and the record legal
title to said mortgaged property is now vested in Defendant, JAYNE CATHCART, who now
holds possession.
13. All conditions precedent to the acceleration of this Mortgage Note and to foreclosure of
the Mortgage have occurred, been satisfied or been waived.
14. Plaintiff is obligated to pay its attorneys a reasonable fee for their services. Plaintiff is
entitled to recover its attorneys’ fees pursuant to the express terms of the Note and Mortgage.
15. Plaintiff alleges that the claims of the remaining Defendants are secondary, junior,
inferior and subject to the prior claim of Plaintiff.
16. The Defendant, UNKNOWN SPOUSE OF JAYNE CATHCART, may claim some right,
title, or interest in the property herein sought to be foreclosed by virtue of homestead rights,
possession or some other unknown interest, the exact nature of which is unknown to Plaintiff and
not a matter of public record. However, said interest, if any, is subordinate, junior, and inferior to
the lien of Plaintiff's Mortgage.
PAGE 3
17-07556317. Any and all unknown parties claiming by, through, under, and against the herein named
individual Defendant(s) who are not known to be dead or alive, whether said unknown parties
may claim an interest as spouses, heirs, devisees, grantees, or other claimants, are joined as
Defendants herein. The claims of said Defendants are subordinate, junior, and inferior to the
interest of the Plaintiff.
WHEREFORE, Plaintiff demands judgment foreclosing the Mortgage, for costs (and,
when applicable, for attorneys’ fees), and, if the proceeds of the sale are insufficient to pay
Plaintiff's claim, a deficiency judgment. Request that subject to any applicable statute of
limitations, that the Court ascertain the amount due to Plaintiff for principal and interest on the
Mortgage and Note and for late charges, abstracting, taxes, expenses and costs, including
attorney’s fees, plus interest thereon; that if the sums due Plaintiff under the Mortgage and Note
are not paid immediately, the Court foreclose the Mortgage and the Clerk of the Court sell the
Property securing the indebtedness to satisfy the Plaintiffs Mortgage lien in accordance with the
provisions of Florida Statutes §45.031 (2011); that the rights, title and interest of any Defendant,
or any party claiming by, through, under or against any Defendant named herein or hereinafter
made a Defendant be forever barred and foreclosed; that the Court appoint a receiver of the
Property and of the rents, issues, income and profits thereof, or in the alternative, order
sequestration of rents, issues, income and profits pursuant to Florida Statutes §697.07 (2006);
and that the Court retain jurisdiction of this action to make any and all further orders and
judgments as may be necessary and proper, including the issuance of a writ of possession and the
[THIS SPACE IS INTENTIONALLY LEFT BLANK]
PAGE 4
17-075563entry of a deficiency judgment decree, when and if such deficiency decree shall appear proper, if
borrower(s) has not been discharged in bankruptcy.
VERIFICATION
Under penalty of perjury, I declare that I have read the foregoing, and the facts alleged
therein are true and correct to the best of my knowledge and belief.
Executed on this ath day of teh : 20\8. ,
1 Ke ycot AO
Poi Name,
Kyandra Brown
Title: Contract Management Coortinator
Ocwen Loan Servicing, LLC as Attorney-in-fact for
HSBC BANK USA, NATIONAL ASSOCIATION,
AS TRUSTEE FOR ACE SECURITIES CORP.
HOME EQUITY LOAN TRUST, SERIES 2006-
OP2
RE: Borrower: JAYNE CATHCART
Address: 910 WYOMING AVE
SAINT CLOUD, FL 34769
File #: 17-075563
ROBERTSON, ANSCHUTZ & SCHNEID, P.L.
Counsel for Plaintiff
6409 Congress Ave., Suite 100
Boca Raton, FL 33487
Telephone: 561-241-6901
Facsimile: 561-997-6909
» WL. oy com
[ ] Jonathan Meisels. lie. Florida Bar No. 29235, Email Address: j.meisels@rasflaw.com
[ ] Melissa Konick, Esq., Florida Bar No. 17569, Email Address: mkonick@rasflaw.com
[ ] Sean M. Swartz, Esq., Florida Bar No. 112209, Email Address: sswartz@rasflaw.com
1], Wendy Manswell, Esq., Florida Bar No. 12027, Email Address: wmanswell@rasflaw.com
VW Olivia Soden, Esq., Florida Bar No. 97086, Email Address: osoden@rasflaw.com
[ ] Shannon Dobel, Esq., Florida Bar No. 126299, Email Address: sdobel@rasflaw.com
PAGE 5
17-075563Loan Numbet: Da niing omer: iz @ Date: 05/19/06
ADJUSTABLE RATE NOTE
(LIBOR Index - Rate Caps)
THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY
MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT
ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY.
910 WYOMING AVE, SAINT CLOUD, FL 34769-
{Property Address}
1. BORROWER'S PROMISE TO PAY
In return for a loan that I-have received, I promise to pay U.S. $140,000.00 (this amount
is called “principal"), plus interest, to the order of the Lender. The Lender is
Option One Mortgage Corporation, a California Corporation :
Tunderstand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to
receive payments under this Note is called the "Note Holder."
2. INTEREST
Interest will be charged on unpaid principal until the full amount of principal has been paid. Interest will be-calculated
on the basis of a 12-month year and a 30-day month. 1 will pay interest at a yearly rate of = 10. 050%. The interest rate
T will pay may change in accordance with Section 4 of this Note.
‘The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any default
described in Section 7(B) of this Note.
3. PAYMENTS
(A) Time and Place of Payments
I will pay principal and interest by making payments every month. ‘
I will make my monthly payments on the first day of each month beginning on July 01 + 2006
1 will make these payments every month until I have paid all of the principal and interest and any other charges, described below
that I may owe under this Note. My monthly payments will be applied to interest before principal. If, on,
June 01 | 2036, I still owe amounts under this Note, I will pay those amounts in full om that
date, which is called the "Maturity Date.”
Twill make my monthly payments at Option One Mortgage Corporation
P.O, BOX 92103 LOS ANGELES, CA 90009-2103
or at a different place if required by the Note Holder.
(B) Amount of My Initial Monthly Payments
Each of my initial monthly payments will be in the amount of U.S. $1,233.78 . This amount may change.
(© Monthly Payment Changes
Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must
pay. The Note Holder will determine my new interest rate and the changed amount of my monthly payment in accordance with
Section 4 of this Note.
(D) Application of Payments
Payments received by the Note Holder will be applied in the following order: (i) prepayment charges due under this Note:
Gi) amounts payable under paragraph 2 of the Security Instrument (defined below); (iil) interest due under this Note; (iv) principal
due under this Note; and (v) late charges due under this Note.
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the first day of | June 01 » | 2008
and on that day every sixth month thereafter. Each date on which my interest rate could change is called a “Change Date.”
@) The Index
Beginning with the first Change Date, my interest rate will be based on an Index. The “Index” is the average of interbank
offered rates for six-month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street
Journal. The cost recent Index figure available as of the first business day of the month immediately preceding the month in which
the Change Date occurs is called the “Current Index.” :
If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information.
‘The Note Holder will give me notice of this choice.
(© Calculation of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding
SIX AND 10/100 ‘percentage point(s) ( 6.100% )
to the Current Index. The Note Holder will then round the result of this addition to the next higher one-eighth of one percentage
point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next
‘Change Date.
‘The Note Holder will then determine the amount of the monthly payment that would be sufficient.to repay. the unpaid
principal that 1 am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal
payments. The result of this calculation will be the new amount of my monthly payment.
O
FLORIDA ADJUSTABLE RATE NOTE-LIBOR ~ Single Family
Page 1 of 3 FLNTOO21.wp (04-07-05)Loan Number: fervicing Number: * @ Date: 05/19/06
(D) Limits on Interest Rate Changes
The interest rate I am required to pay at the first Change Date will not be greater than 13. 050% or less than
10.050% . Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one
percentage point (1.0%) from the rate of interest I have been paying for the preceding six months. In no event will my interest rate
be greater than © 16. 050% or less than 10.050%
(©) Effective Date of Changes
My new interest rate will become effective on each Change Date. 1 will pay the amount of my new monthly payment
beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again.
(F) Notice of Changes
‘The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly
payment before the effective date of any change. The notice will include information required by law to be given me and also the
tie and telephone number of a person who will answer any question I may have regarding the notice.
5. BORROWER'S RIGHT TO PREPAY
Thhave the right to make payments of principal at any time before they are due, together with accrued interest. A payment
of principal only is known as a "prepayment." When I make a prepayment, I will teil he Note Holder in writing that I am doing
50.
If | make a partial prepayment, there will be no changes in the due dates of my monthly payments unless the Note Holder
agrees in writing o those changes. My partial prepayment may reduce the amount of my monthly payments after the first Change
Date following my partial prepayment. However, any reduction due to my partial prepayment may be offset by an interest rate
increase.
If within 24 Months from the date of execution of the Security Instrument I make a full prepayment
or, in certain cases a partial prepayment, I will at the same time pay to the Note Holder a prepayment charge. The prepayment
charge will be equal to six (6) months advance interest on the amount of any prepayment that, when added to all other amounts
prepaid during the twelve (12) month period immediately preceding the date of the prepayment, exceeds twenty percent (20%) of
the original principal amount of this Note. In no event will such a charge be made unless it is authorized by state or federal law.
6. LOAN CHARGES
Ifa law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other
loan charges collected or to be collected in connection with this loan exceed the permitted limits, chen: () any such loan charge shall
be reduced by the amount necessary to reduce the charge to the permitted limit; and (i) any sums already collected from me which
exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the principal | owe
tinder this Note or by making a direct payment to me. If a refund reduces principal, the reduction will be treated as @ partial
prepayment.
7. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Late Charges for Overdue Payments
If the Note Holder has not received the full amount of any monthly payment by the end of 15 ‘calendar days
after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 6.000%
of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each-late payment.
(B) Default
If do not pay the full amount of each monthly payment on the date it is due, I will be in default. If I am in default, the
Note Holder may require me to pay immediately the full amount of principal which has not been paid and all interest that 1 owe
con that amount, together with any other charges that I owe under this Note or the Security [nstrument, except as otherwise required
by applicable law.
(© No Waiver by Note Holder
Even if, ata time when Iam in default, the Note Holder does not require me to pay immediately in full as described above,
the Note Holder will still have the right to do so if I am in default at a later time.
(D) Payment of Note Holder's Costs and Expenses
If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to
be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law, whether
or not a lawsuit is filed. Those expenses include, for example, reasonable attorneys fees.
8. GIVING OF NOTICES
Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by
delivering it or by mailing it by first class mail (0 me at the Property Address above or at a different address if I give the Note
Holder a notice of my different address.
‘Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note
Holder at the address stated in Section 3(A) above or at a different address if ] am given a notice of that different address,
9 OBLIGATIONS OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made
in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note
ig also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety
tr endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights
‘under this Note against each person individually or against all of us together. This means that any one of us may be required to pay
all of the amounts owed under this Note.
Page 2 of 3 FLNT6022.wp (04-07-05)Loan Numbe:: Q...— e Date:. 05/19/06
10. WAIVERS:
I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor.
“Presentment” means the right to require the Note Holder to demand payment of amounts due. “Notice of dishonor” means the right
to require the Note Holder to give notice to other persons that amounts due have not been paid.
11, SECURED NOTE
In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the
“Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if 1 do
not keep the promises that I make in this Note. That Security Instrument describes how and under what conditions I may be required
to make immediate payment in full of all amounts 1 owe under this Note. Some of those conditions are described as follows:
‘Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in itis sold
or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's
prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument.
However, this option shall not be exercised by Lender if exercise is probibited by federal law as of the date of this Security
Instrument, Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by
Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines
that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in
this Security Instrument is acceptable to Lender.
To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the
Joan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that
obligates the transferee to Keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will
continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing.
If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration.
‘The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower
rust pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period,
Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower.
12. DOCUMENTARY TAX
‘The state documentary tax due on this Note has been paid on the Mortgage securing this indebtedness.
WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED.
(oles so seo
7] ~Borrower
= [PATHCAI
Seal) eal)
Borrower “Borrower
Gea) ety
‘Borrower : Borrower
[Sign Original Only}
FLNT0023.wp (04-07-05)
Page 3 of 31
Loan Numer: i D gvicins Nunber: e Date: 05/19/06
ALLONGE TO NOTE
(INVESTOR)
This allonge makes reference to the following Note:
Loan #:
Property Address: 910 WYOMING AVE, SAINT CLOUD, FL 34769-
| Borrowers: JAYNE CATHCART
| Loan Amount: $140,000.00
Note Date: 05/19/06
‘Therefore, in reference to the captioned note, the following applies:
Pay to the order of:
Without Recourse
Option One Mortgage Corporation
A California Corporation
By:
Aurora Léne
Assistant Secretary
Page I of 1 USD3050.wp (03-14-03)WHEN RECORDED MAIL TO: LARRY WHALEY 12P
oe OSCEOLA COUNTY, FLORIDA
Prepare by: CLERK OF CIRCUIT COURT
OPTION ONE MORTGAGE CORPORATION GL_2006144106 OR 3174/710
P.O. BOX 57096 HGP Date 06/01/2006 Time 10:51:52
IRVINE, CA 92619-7096
ATTN: "RECORDS MANAGEMENT DOC STAMPS: 490.00
INTANGIBLE: 280.00
Loan Number
[Space Above This Line For Recording Datal
MORTGAGE
THIS MORTGAGE ("Security Instrument") is given on May 19, 2006 .The mortgagor is
JAYNE CATHCART, A SNe nN
whose address is 910 WYOMING Al SOR OR FL 34769-
("Borrower").
‘This Security Instrument is given to. «~~
Option One Mortgage Corpor: fornia Corporation .
which is organized and existing under te la SFORNIA and whose address is
3 Ada, Irvine, CA 92618 ("Lender").
FORTY THOUSAND
soe NO/100THS Dollars (U.S. $140,000.00 ).
‘This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides
for monthly payments, with the full debe, if not paid earlier, due and payable on June 01, 2036 :
‘This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and
all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced
‘under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's
covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower, does hereby
mortgage, grant and convey to Lender the following described property located in Osceola
County, Florida:
01 26 30 001 0119 9010
SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART THEREOF.
Borrower owes Lender the principal sum of
which has the address of 910 WYOMING AVE, SAINT CLOUD
{Street, City},
Florida 34769- ("Property Address");
{Zip Code}
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements,
appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be
covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the “Property.”
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the
right to mortgage, 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.
FLORIDA Single Fasily c
Page 1 of 8 FLD 10011 (05/10/00)
EXHIBIT BCL 2006144106
as a Date:05/19/06
COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when
due he principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under
the Note.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower
shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum
("Funds") for: (a) yearly taxes
and assessments which may a
ity) over this Security Instrument as a lien on the Property; (b) yearly
leasehold payments or ground reds\qu the-Property, if any: (c) yearly hazard or property insurance premiums; (4)
yearly flood insurance premiums, iPanyr(@)yeacly mortgage insurance premiums, if any, and (f) any sums payable
by Borrower to Lender, in accordand (fag dj provisions of paragraph 8, in lieu of the payment of mortgage
insurance premiums. These items are skxqw Items.” Lender may, at any time, collect and hold Funds in
fan amount not to exceed the maximunYamoGnt’a Yender for a federally related mortgage loan may require for
Borrower's escrow account under the f soe ee Settlement Procedures Act of 1974 as amended from time
to time, 12 U.S.C. § 2601 et seg. (" nother law that applies to the Funds sets a lesser amount,
If so, Lender may, at any time, collect ¥od Nol han amount not to exceed the lesser amount. Lender may
estimate the amount of Funds due on the basis of cy
Escrow Items or otherwise in accordance p
‘The Funds shall be held in an instiedt T0SE deposits are insured by a federal agency, instrumentality,
or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply
the Funds to pay the Escrow Items. Lender may not Charge Borrower for holding and applying the Funds, annually
analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds
and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a
one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan,
‘unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be
paid, Lender shall not be required to pay Borrower any interest or earnings on the Punds. Borrower and Lender
nay agree in writing, however, that interest shall be paid om the Funds. Lender shall give to Borrower, without
charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each
debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security
Instrument.
If the Punds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall
account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of
the Fonds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify
Borrower in writing, and, in such case Borrower shall pay to Lender the amount necessary to make up the
deficiency. Borrower shali make up the deficiency in no more than twelve monthly payments, at Lender's sole
discretion.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to
Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property. Lender,
prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or
sale as a credit against the sums secured by this Security Instrument. .
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Leader
‘under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts
payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under
the Note.
‘4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable
to the Property which may attain priority over this Security Instrument, and leaschold payments or ground reats,
if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner,
Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender
all notices of amouats to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall
promptly furnish to Lender receipts evidencing the payments. :
‘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; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which
in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the tien
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 may attain priority over this Security Instrument, Lender may give
Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth
above within 10 days of the giving of notice. UY
Page 2 of 8 FLD 10012 (05/10/00)
OR 3174/711CL 2006144106
Ee 6 Dae:05/29/06
5. Hazard or Property Insurance, Borrower shall keep the improvements now existing or hereafter erected
on the Property insured against loss by fire, hazards included within the term "extended coverage” and any other
hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in
the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen
by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the
Property in accordance with p
All insurance policies afd
clause. Lender shall have the rij
shall be acceptable to Lender and shall include a standard mortgage
he policies and renewals. If Lender requires, Borrower shall promptly
give to Lender all receipts of paid p d renewal notices. In the event of loss, Borrower shall give prompt
notice to the insurance carrier and ler may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower\gtherwisg/ agree in writing, or applicable Law otherwise requires, insurance
proceeds shall be applied first to reimb Bbr costs and expenses incurred in connection with obtaining any
such insurance proceeds, and then, at Lend in such order and proportion as Lender may determine in
irment of security of lack thereof: (i) to the sums secured
el to such components thereof as Lender may determine in
its sole and absolute discretion; and/or (li) to Boryéyé? to pay the costs and expenses of necessary repairs or
. If Borrower abandons the :
Property, or does not answer within 30 day nder that the insurance carrier has offered to settle
aclaim, Lender may collect the insurance proceeds. Lender may, in its sole and absolute discretion, and regardless
of any impairment of security or Jack thereof, use the proceeds to repair or restore the Property or to pay the sums
secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not
extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount
of the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance
policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the
extent of the sums secured by this Security Instrument immediately prior to the acquisition.
If Borrower obtains earthquake insurance, any other hazard insurance, or any other insurance on the
Property and such insurance is not specifically required by Lender, then such insurance shall (i) name Lender as
loss payee thereunder, and (fi) be subject to the provisions of this paragraph 5.
6. Occupancy, Preservation, Maintenance and Protoction of the Property; Borrower's Loan Application;
Leascholds. Borrower acknowledges that the Lender does not desire to make a loan to Borrower secured by this
property on the terms contained in the Note unless the property is to be occupied by Borrower as Borrower's
primary/secondary residence. Lender makes non-owner residence loans of different terms. Borrower promises and
assures Lender that Borrower intends to occupy this property as Borrower's primary/secondary residence and that
Borrower will so occupy this property as its sole primary/sccondary residence within sixty (60) days after the date
of the Security Instrument. If Borrower breaches this promise to occupy the property as Borrower's
primary/secondary residence, then Lender may invoke any of the following remedies, in addition to the remedies
provided in the Security Instrument; (1) Declare all sums secured by the Security Instrument due and payable and
foreclose the Security Instrument, (2) Decrease the term of the loan and adjust the monthly payments under the Note
accordingly, increase the interest rate and adjust the monthly payments under the Note accordingly, or (3) require
that the principal balance be reduced to a percentage of either the original purchase price or the appraised value then
being offered on non-owner occupied loans.
Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit
waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal,
is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially
impair the lien created by this Security Instrument or Lender's security interest, Borrower may cure such a default
and reinstate, as provided in paragraph 18, by causing the action or procceding to be dismissed with a ruling that,
in Lender's good faith determination, precludes forfeiture of the Borrower’ s interest in the Property or other
‘material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also
be in default if Borrower, during the loan application process, gave materially false or inaccurate information or
statements to Lender (or failed to provide Lender with any material information) in connection with the loan
evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the
Property a8 a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the
provisions of the lease. If Borrower acquires fee tile to the Property, the leasehold and the fee title shall not merge
unless Lender agrees to the merger in writing.
“
Page 3 of 8 FLD10013 (05/10/00)
OR 3174/712CL 2006144106
ee
Borrower shall, at Borrower's own expense, appear in and defend any action or proceeding purporting to
affect the Property or any portion thereof or Borrower's tile thereto, the validity or priority of the lien created by
this Security Instrument, or the rights or powers of Lender with respect to this Security Instrument or the Property.
{All causes of action of Borrower, whether accrued before or after the date of this Security Instrument, for damage
oF injury to the Property or any part thereof, or in connection with any transaction financed in whole or in part by
the proceeds of the Note or any other note secured by this Security Instrument, by Lender, or in connection with
or affecting the Property or any part iBeteof, including causes of action arising in tortor contract and causes of
action for fraud or concealment «mage fact, are, at Lender's option, assigned to Lender, and the proceeds
thereof shall be paid directly to\Uknder~Who, after deducting therefrom all its expenses, including reasonable
attorneys" fees, may apply such ps Batyumas secured by this Security Instrument or to any deficiency under
this Security Instrument or may hies so received by it or any part thereof, as Lender may elect.
in its own name any action or proceeding to enforce any such
rfise’ oP settlement thereof. Borrower agrees to execute such further
pate) ime may be necessary to effectuate the foregoing provisions
cause of action and may make any co
assignments and any other instruments as,
and as Lender shall request.
7. Protection of Lender's Rij
n the Bs 3. f Borrower fails to perform the covenants and agreements
contained in this Security Instrument, or there is a I
Proceeding that may significantly affect Lender's rights in
the Property (such as a proceeding in bank aie’\for condemnation or forfeiture or to enforce laws or
regulations), then Lender may do and pay Yor-whtatever is necessary to protect the value of the Property and
Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority
over this Security Instrument, appearing in court, paying reasonable attorneys’ fees and entering on the Property
to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so.
Any amounts disbursed by Leader under this paragraph 7 shall become additional debt of Borrower secured
by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear
interest from the date of disbursement at the Note rate in effect from time to time and shall be payable, with
interest, upon notice from Lender to Borrower requesting payment.
8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured
by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect.
If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower
shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously
in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect,
from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage
is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage
insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender
willaccept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments
may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the
period that Lender requires) provided
by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums
required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage
insurance ends in accordance with any written agreement between Borrower and Lender ot applicable law.
9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property.
Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the
inspection.
10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection
with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are
hereby assigned and shall be paid to Lender. Lender may apply, use or release the condemnation proceeds in the
same manner as provided in paragraph 5 hereof with respect to insurance proceeds. :
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor
offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after
the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, cither to restoration
or repair of the Property or to the sums secured by this Sccurity Instrument, whether or not then due.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not
‘extend or postpone the due date of the monthly payments referred 1 in paragraphs 1 and 2 or change the amount
‘of such payments.
LL. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor
in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors
in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to
Page 4 of & U FLD 10014 (05/10/00)
OR 3174/713CL 2006144106 OR 3174/714
extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason
of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender
in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements
of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the
provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who
co-signs this Security Instrument t execute the Note: (a) is co-signing this Security Instrument only to
mortgage, grant and convey that interest in the Property under the terzas of this Security Instrument;
(b) is not personally obligated to secured by this Security Instrument; and (c) agrees that Lender and
ify, forbear or make any accommodations with regard to the terms
Borrower's consent,
py this Security Instrument is subject to a law which sets maximum
preted{sd tliat the interest or other loan charges collected or to be collected
in connection with the loan exceed the perlite Himits, then: (a) any such loan charge shall be reduced by the
amount necessary to reduce the change’to pf pergaityed limit; and (b) any sums already collected from Borrower
xwer. Lender may choose to make this refund by reducing
the principal owed under the Note or by making a payment to Borrower. If a refund reduces principal, the
reduction will be treated as a partial prepayat Prepayment charge under the Note.
14. Notices. Any notice to Borrower pievid ‘this Security Instrument shall be given by delivering
it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be
directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to
Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates
by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to
Borrower or Lender when given as provided in this paragraph.
15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law
of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security
Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security
Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of
this Security Instrument and the Note are declared to be severable.
16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security
Instrument.
17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any
interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not
‘a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in
full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if
exercise is prohibited by federal law as of the date of this Security Instrument. .
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide
a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay
all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this
period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand
on Borrower.
18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to
have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such
other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of
sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those
conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and
the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays
all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys’ fees;
and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument,
Lender's rights in the Property aud Borrower's obligation to pay the sums secured by this Security Instrument shall
continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby
shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in
the case of acceleration under paragraph 17.
Page $ of & FLDI0015 (05/10/00)CL 2006144106 OR 3174/715
——— ee Duz:05/19/06
19. Sale of Note; Change of Loan Servicer. The Note or a partial interest in the Note (together with this
Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a
change in the entity (known as the “Loan Servicer") that collects monthly payments due under the Note and this
‘Security Instrument. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note.
If there is a change of the Loan Servicer, Borrower will be given written notice of the change in accordance with
paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and
the address to which payments shy made. The notice will also contain any other information required by
wer shall not cause or permit the presence, use, disposal, storage, or
the Property. Borrower shall not do, nor allow anyone else to do,
‘anything affecting the Property that i glijn of any Environmental Law. The preceding two sentences shall
notice of any investigation, claim, demand, lawsuit or other
rivate party involving the Property and any Hazardous
actual knowledge. If Borrower leams, or is notified by
val or other remediation of any Hazardous Substance
ake all necessary remedial actions in accordance with
action by any governmental or regul
Substance or Environmental Law of which B
any governmental or regulatory authority, that any
affecting the Property is necessary, Borrow
Environmental Law.
Borrower shall be solely responsible for, shall indemnify, defend and hold harmless Lender, its directors,
officers, employees, attorneys, agents, and their respective successors and assigns, from and against any and all
claims, demands, causes of action, loss, damage, cost (including actual attorneys fees and court costs and costs of
‘any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation
of any closure, abatement, containment, remedial or other required plan), expenses and liability directly or indirectly
arising out of or attributable to (a) the use, generation, storage, release, threatened release, discharge, disposal,
abatement or presence of Hazardous Substances on, under or about the Property, (b) the transport to or from the
Property of any Hazardous Substances, (c) the violation of any Hazardous Substances law, and (d) any Hazardous
‘Substances claims.
‘AS used in this paragraph 20, "Hazardous Substances" are those substances defined as toxic or hazardous
substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic
petroleum products, to
Preview
Filing # 67851657 E-Filed 02/12/2018 04:18:58 PM IN THE CIRCUIT COURT OF THE NINTH JUDICIAL CIRCUIT IN AND FOR OSCEOLA COUNTY, FLORIDA GENERAL JURISDICTION DIVISION CASE NO. HSBC BANK USA, NATIONAL ASSOCIATION, AS TRUSTEE FOR ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-OP2, Plaintiff, VS. JAYNE CATHCART; UNKNOWN SPOUSE OF JAYNE CATHCART; ANY AND ALL UNKNOWN PARTIES CLAIMING BY, THROUGH, UNDER, AND AGAINST THE HEREIN NAMED INDIVIDUAL DEFENDANT(S) WHO ARE NOT KNOWN TO BE DEAD OR ALIVE, WHETHER SAID UNKNOWN PARTIES MAY CLAIM AN INTEREST AS SPOUSES, HEIRS, DEVISEES, GRANTEES, OR OTHER CLAIMANTS, Defendant(s). / VERIFIED COMPLAINT FOR FORECLOSURE OF MORTGAGE Plaintiff, HSBC BANK USA, NATIONAL ASSOCIATION, AS TRUSTEE FOR ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006-OP2, sues the Defendants and alleges: COUNT I- MORTGAGE FORECLOSURE 1. This is an action to foreclose a mortgage on real property in OSCEOLA County, Florida. 2. The Court has jurisdiction over the subject matter. PAGE 1 17-0755633. On or about May 19, 2006, JAYNE CATHCART executed and delivered a promissory note. A copy of the Note is attached hereto as Exhibit “A”. 4. On or about May 19, 2006, JAYNE CATHCART executed and delivered a mortgage securing payment of the Note to OPTION ONE MORTGAGE CORPORATION, A CALIFORNIA CORPORATION. The Mortgage was recorded on June 1, 2006, in Official Records Book 3174, Page 710, of the Public Records of Osceola County, Florida, and encumbered the property described in the Mortgage then owned by and in possession of the Mortgagor, a copy of the Mortgage being attached hereto as Exhibit “B”. Said loan was modified and a copy of the Home Affordable Modification Agreement is attached hereto and incorporated herein as Exhibit “C”. 5. The Mortgage of the Plaintiff is a lien superior in dignity to any prior or subsequent right, title, claim, lien or interest arising out of Mortgagor or the Mortgagor’s predecessor(s) in interest. 6. Plaintiff is the holder of the original Note secured by the Mortgage and is entitled to foreclose pursuant to Florida Statute 673.3011(1). 7. Ocwen Loan Servicing, LLC (“Ocwen’”) is the loan servicer for this particular loan. Plaintiff has delegated Ocwen the authority to service the loan on its behalf pursuant to a Limited Power of Attorney. 8. Defendant(s) have defaulted under the Note and Mortgage by failing to pay the payment due as of March 01, 2017, and all subsequent payments. 9. Plaintiff declares the full amount payable under the Note and Mortgage to be due, except to the extent any part of that amount is or would be subject to a statute of limitations defense. 10. Defendant(s) owe Plaintiff $127,311.08, which includes a deferred principal balance in PAGE 2 17-075563the amount of $67,420.00 that is due and owing on principal on the Note and Mortgage, plus interest from and after February 01, 2017, and title search expenses for ascertaining necessary parties to this action, pursuant to the documents attached, except for those defendants who have been discharged in bankruptcy. ll. In order to protect its security, the Plaintiff may have advanced and paid Ad Valorem Taxes, premiums on insurance required by the Mortgage and other necessary costs, or may be required to make such advances during the pendency of this action. Any such sum(s) so paid will also be due and owing to the Plaintiff. 12. The property is now owned by Defendant, JAYNE CATHCART, and the record legal title to said mortgaged property is now vested in Defendant, JAYNE CATHCART, who now holds possession. 13. All conditions precedent to the acceleration of this Mortgage Note and to foreclosure of the Mortgage have occurred, been satisfied or been waived. 14. Plaintiff is obligated to pay its attorneys a reasonable fee for their services. Plaintiff is entitled to recover its attorneys’ fees pursuant to the express terms of the Note and Mortgage. 15. Plaintiff alleges that the claims of the remaining Defendants are secondary, junior, inferior and subject to the prior claim of Plaintiff. 16. The Defendant, UNKNOWN SPOUSE OF JAYNE CATHCART, may claim some right, title, or interest in the property herein sought to be foreclosed by virtue of homestead rights, possession or some other unknown interest, the exact nature of which is unknown to Plaintiff and not a matter of public record. However, said interest, if any, is subordinate, junior, and inferior to the lien of Plaintiff's Mortgage. PAGE 3 17-07556317. Any and all unknown parties claiming by, through, under, and against the herein named individual Defendant(s) who are not known to be dead or alive, whether said unknown parties may claim an interest as spouses, heirs, devisees, grantees, or other claimants, are joined as Defendants herein. The claims of said Defendants are subordinate, junior, and inferior to the interest of the Plaintiff. WHEREFORE, Plaintiff demands judgment foreclosing the Mortgage, for costs (and, when applicable, for attorneys’ fees), and, if the proceeds of the sale are insufficient to pay Plaintiff's claim, a deficiency judgment. Request that subject to any applicable statute of limitations, that the Court ascertain the amount due to Plaintiff for principal and interest on the Mortgage and Note and for late charges, abstracting, taxes, expenses and costs, including attorney’s fees, plus interest thereon; that if the sums due Plaintiff under the Mortgage and Note are not paid immediately, the Court foreclose the Mortgage and the Clerk of the Court sell the Property securing the indebtedness to satisfy the Plaintiffs Mortgage lien in accordance with the provisions of Florida Statutes §45.031 (2011); that the rights, title and interest of any Defendant, or any party claiming by, through, under or against any Defendant named herein or hereinafter made a Defendant be forever barred and foreclosed; that the Court appoint a receiver of the Property and of the rents, issues, income and profits thereof, or in the alternative, order sequestration of rents, issues, income and profits pursuant to Florida Statutes §697.07 (2006); and that the Court retain jurisdiction of this action to make any and all further orders and judgments as may be necessary and proper, including the issuance of a writ of possession and the [THIS SPACE IS INTENTIONALLY LEFT BLANK] PAGE 4 17-075563entry of a deficiency judgment decree, when and if such deficiency decree shall appear proper, if borrower(s) has not been discharged in bankruptcy. VERIFICATION Under penalty of perjury, I declare that I have read the foregoing, and the facts alleged therein are true and correct to the best of my knowledge and belief. Executed on this ath day of teh : 20\8. , 1 Ke ycot AO Poi Name, Kyandra Brown Title: Contract Management Coortinator Ocwen Loan Servicing, LLC as Attorney-in-fact for HSBC BANK USA, NATIONAL ASSOCIATION, AS TRUSTEE FOR ACE SECURITIES CORP. HOME EQUITY LOAN TRUST, SERIES 2006- OP2 RE: Borrower: JAYNE CATHCART Address: 910 WYOMING AVE SAINT CLOUD, FL 34769 File #: 17-075563 ROBERTSON, ANSCHUTZ & SCHNEID, P.L. Counsel for Plaintiff 6409 Congress Ave., Suite 100 Boca Raton, FL 33487 Telephone: 561-241-6901 Facsimile: 561-997-6909 » WL. oy com [ ] Jonathan Meisels. lie. Florida Bar No. 29235, Email Address: j.meisels@rasflaw.com [ ] Melissa Konick, Esq., Florida Bar No. 17569, Email Address: mkonick@rasflaw.com [ ] Sean M. Swartz, Esq., Florida Bar No. 112209, Email Address: sswartz@rasflaw.com 1], Wendy Manswell, Esq., Florida Bar No. 12027, Email Address: wmanswell@rasflaw.com VW Olivia Soden, Esq., Florida Bar No. 97086, Email Address: osoden@rasflaw.com [ ] Shannon Dobel, Esq., Florida Bar No. 126299, Email Address: sdobel@rasflaw.com PAGE 5 17-075563Loan Numbet: Da niing omer: iz @ Date: 05/19/06 ADJUSTABLE RATE NOTE (LIBOR Index - Rate Caps) THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. 910 WYOMING AVE, SAINT CLOUD, FL 34769- {Property Address} 1. BORROWER'S PROMISE TO PAY In return for a loan that I-have received, I promise to pay U.S. $140,000.00 (this amount is called “principal"), plus interest, to the order of the Lender. The Lender is Option One Mortgage Corporation, a California Corporation : Tunderstand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of principal has been paid. Interest will be-calculated on the basis of a 12-month year and a 30-day month. 1 will pay interest at a yearly rate of = 10. 050%. The interest rate T will pay may change in accordance with Section 4 of this Note. ‘The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any default described in Section 7(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making payments every month. ‘ I will make my monthly payments on the first day of each month beginning on July 01 + 2006 1 will make these payments every month until I have paid all of the principal and interest and any other charges, described below that I may owe under this Note. My monthly payments will be applied to interest before principal. If, on, June 01 | 2036, I still owe amounts under this Note, I will pay those amounts in full om that date, which is called the "Maturity Date.” Twill make my monthly payments at Option One Mortgage Corporation P.O, BOX 92103 LOS ANGELES, CA 90009-2103 or at a different place if required by the Note Holder. (B) Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S. $1,233.78 . This amount may change. (© Monthly Payment Changes Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will determine my new interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note. (D) Application of Payments Payments received by the Note Holder will be applied in the following order: (i) prepayment charges due under this Note: Gi) amounts payable under paragraph 2 of the Security Instrument (defined below); (iil) interest due under this Note; (iv) principal due under this Note; and (v) late charges due under this Note. 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of | June 01 » | 2008 and on that day every sixth month thereafter. Each date on which my interest rate could change is called a “Change Date.” @) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The “Index” is the average of interbank offered rates for six-month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The cost recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the “Current Index.” : If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. ‘The Note Holder will give me notice of this choice. (© Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding SIX AND 10/100 ‘percentage point(s) ( 6.100% ) to the Current Index. The Note Holder will then round the result of this addition to the next higher one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next ‘Change Date. ‘The Note Holder will then determine the amount of the monthly payment that would be sufficient.to repay. the unpaid principal that 1 am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. O FLORIDA ADJUSTABLE RATE NOTE-LIBOR ~ Single Family Page 1 of 3 FLNTOO21.wp (04-07-05)Loan Number: fervicing Number: * @ Date: 05/19/06 (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 13. 050% or less than 10.050% . Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one percentage point (1.0%) from the rate of interest I have been paying for the preceding six months. In no event will my interest rate be greater than © 16. 050% or less than 10.050% (©) Effective Date of Changes My new interest rate will become effective on each Change Date. 1 will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes ‘The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given me and also the tie and telephone number of a person who will answer any question I may have regarding the notice. 5. BORROWER'S RIGHT TO PREPAY Thhave the right to make payments of principal at any time before they are due, together with accrued interest. A payment of principal only is known as a "prepayment." When I make a prepayment, I will teil he Note Holder in writing that I am doing 50. If | make a partial prepayment, there will be no changes in the due dates of my monthly payments unless the Note Holder agrees in writing o those changes. My partial prepayment may reduce the amount of my monthly payments after the first Change Date following my partial prepayment. However, any reduction due to my partial prepayment may be offset by an interest rate increase. If within 24 Months from the date of execution of the Security Instrument I make a full prepayment or, in certain cases a partial prepayment, I will at the same time pay to the Note Holder a prepayment charge. The prepayment charge will be equal to six (6) months advance interest on the amount of any prepayment that, when added to all other amounts prepaid during the twelve (12) month period immediately preceding the date of the prepayment, exceeds twenty percent (20%) of the original principal amount of this Note. In no event will such a charge be made unless it is authorized by state or federal law. 6. LOAN CHARGES Ifa law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, chen: () any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (i) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the principal | owe tinder this Note or by making a direct payment to me. If a refund reduces principal, the reduction will be treated as @ partial prepayment. 7. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of 15 ‘calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 6.000% of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each-late payment. (B) Default If do not pay the full amount of each monthly payment on the date it is due, I will be in default. If I am in default, the Note Holder may require me to pay immediately the full amount of principal which has not been paid and all interest that 1 owe con that amount, together with any other charges that I owe under this Note or the Security [nstrument, except as otherwise required by applicable law. (© No Waiver by Note Holder Even if, ata time when Iam in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (D) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law, whether or not a lawsuit is filed. Those expenses include, for example, reasonable attorneys fees. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail (0 me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. ‘Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if ] am given a notice of that different address, 9 OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note ig also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety tr endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights ‘under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. Page 2 of 3 FLNT6022.wp (04-07-05)Loan Numbe:: Q...— e Date:. 05/19/06 10. WAIVERS: I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. “Presentment” means the right to require the Note Holder to demand payment of amounts due. “Notice of dishonor” means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11, SECURED NOTE In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the “Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if 1 do not keep the promises that I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts 1 owe under this Note. Some of those conditions are described as follows: ‘Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in itis sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is probibited by federal law as of the date of this Security Instrument, Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the Joan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to Keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. ‘The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower rust pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 12. DOCUMENTARY TAX ‘The state documentary tax due on this Note has been paid on the Mortgage securing this indebtedness. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. (oles so seo 7] ~Borrower = [PATHCAI Seal) eal) Borrower “Borrower Gea) ety ‘Borrower : Borrower [Sign Original Only} FLNT0023.wp (04-07-05) Page 3 of 31 Loan Numer: i D gvicins Nunber: e Date: 05/19/06 ALLONGE TO NOTE (INVESTOR) This allonge makes reference to the following Note: Loan #: Property Address: 910 WYOMING AVE, SAINT CLOUD, FL 34769- | Borrowers: JAYNE CATHCART | Loan Amount: $140,000.00 Note Date: 05/19/06 ‘Therefore, in reference to the captioned note, the following applies: Pay to the order of: Without Recourse Option One Mortgage Corporation A California Corporation By: Aurora Léne Assistant Secretary Page I of 1 USD3050.wp (03-14-03)WHEN RECORDED MAIL TO: LARRY WHALEY 12P oe OSCEOLA COUNTY, FLORIDA Prepare by: CLERK OF CIRCUIT COURT OPTION ONE MORTGAGE CORPORATION GL_2006144106 OR 3174/710 P.O. BOX 57096 HGP Date 06/01/2006 Time 10:51:52 IRVINE, CA 92619-7096 ATTN: "RECORDS MANAGEMENT DOC STAMPS: 490.00 INTANGIBLE: 280.00 Loan Number [Space Above This Line For Recording Datal MORTGAGE THIS MORTGAGE ("Security Instrument") is given on May 19, 2006 .The mortgagor is JAYNE CATHCART, A SNe nN whose address is 910 WYOMING Al SOR OR FL 34769- ("Borrower"). ‘This Security Instrument is given to. «~~ Option One Mortgage Corpor: fornia Corporation . which is organized and existing under te la SFORNIA and whose address is 3 Ada, Irvine, CA 92618 ("Lender"). FORTY THOUSAND soe NO/100THS Dollars (U.S. $140,000.00 ). ‘This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debe, if not paid earlier, due and payable on June 01, 2036 : ‘This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced ‘under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower, does hereby mortgage, grant and convey to Lender the following described property located in Osceola County, Florida: 01 26 30 001 0119 9010 SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART THEREOF. Borrower owes Lender the principal sum of which has the address of 910 WYOMING AVE, SAINT CLOUD {Street, City}, Florida 34769- ("Property Address"); {Zip Code} TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the “Property.” BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, 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. FLORIDA Single Fasily c Page 1 of 8 FLD 10011 (05/10/00) EXHIBIT BCL 2006144106 as a Date:05/19/06 COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due he principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may a ity) over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground reds\qu the-Property, if any: (c) yearly hazard or property insurance premiums; (4) yearly flood insurance premiums, iPanyr(@)yeacly mortgage insurance premiums, if any, and (f) any sums payable by Borrower to Lender, in accordand (fag dj provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are skxqw Items.” Lender may, at any time, collect and hold Funds in fan amount not to exceed the maximunYamoGnt’a Yender for a federally related mortgage loan may require for Borrower's escrow account under the f soe ee Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. § 2601 et seg. (" nother law that applies to the Funds sets a lesser amount, If so, Lender may, at any time, collect ¥od Nol han amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of cy Escrow Items or otherwise in accordance p ‘The Funds shall be held in an instiedt T0SE deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not Charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan, ‘unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Punds. Borrower and Lender nay agree in writing, however, that interest shall be paid om the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Punds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Fonds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shali make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property. Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. . 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Leader ‘under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note. ‘4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leaschold payments or ground reats, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amouats to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. : ‘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; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the tien 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 may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. UY Page 2 of 8 FLD 10012 (05/10/00) OR 3174/711CL 2006144106 Ee 6 Dae:05/29/06 5. Hazard or Property Insurance, Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage” and any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with p All insurance policies afd clause. Lender shall have the rij shall be acceptable to Lender and shall include a standard mortgage he policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid p d renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and ler may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower\gtherwisg/ agree in writing, or applicable Law otherwise requires, insurance proceeds shall be applied first to reimb Bbr costs and expenses incurred in connection with obtaining any such insurance proceeds, and then, at Lend in such order and proportion as Lender may determine in irment of security of lack thereof: (i) to the sums secured el to such components thereof as Lender may determine in its sole and absolute discretion; and/or (li) to Boryéyé? to pay the costs and expenses of necessary repairs or . If Borrower abandons the : Property, or does not answer within 30 day nder that the insurance carrier has offered to settle aclaim, Lender may collect the insurance proceeds. Lender may, in its sole and absolute discretion, and regardless of any impairment of security or Jack thereof, use the proceeds to repair or restore the Property or to pay the sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. If Borrower obtains earthquake insurance, any other hazard insurance, or any other insurance on the Property and such insurance is not specifically required by Lender, then such insurance shall (i) name Lender as loss payee thereunder, and (fi) be subject to the provisions of this paragraph 5. 6. Occupancy, Preservation, Maintenance and Protoction of the Property; Borrower's Loan Application; Leascholds. Borrower acknowledges that the Lender does not desire to make a loan to Borrower secured by this property on the terms contained in the Note unless the property is to be occupied by Borrower as Borrower's primary/secondary residence. Lender makes non-owner residence loans of different terms. Borrower promises and assures Lender that Borrower intends to occupy this property as Borrower's primary/secondary residence and that Borrower will so occupy this property as its sole primary/sccondary residence within sixty (60) days after the date of the Security Instrument. If Borrower breaches this promise to occupy the property as Borrower's primary/secondary residence, then Lender may invoke any of the following remedies, in addition to the remedies provided in the Security Instrument; (1) Declare all sums secured by the Security Instrument due and payable and foreclose the Security Instrument, (2) Decrease the term of the loan and adjust the monthly payments under the Note accordingly, increase the interest rate and adjust the monthly payments under the Note accordingly, or (3) require that the principal balance be reduced to a percentage of either the original purchase price or the appraised value then being offered on non-owner occupied loans. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest, Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or procceding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower’ s interest in the Property or other ‘material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property a8 a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee tile to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. “ Page 3 of 8 FLD10013 (05/10/00) OR 3174/712CL 2006144106 ee Borrower shall, at Borrower's own expense, appear in and defend any action or proceeding purporting to affect the Property or any portion thereof or Borrower's tile thereto, the validity or priority of the lien created by this Security Instrument, or the rights or powers of Lender with respect to this Security Instrument or the Property. {All causes of action of Borrower, whether accrued before or after the date of this Security Instrument, for damage oF injury to the Property or any part thereof, or in connection with any transaction financed in whole or in part by the proceeds of the Note or any other note secured by this Security Instrument, by Lender, or in connection with or affecting the Property or any part iBeteof, including causes of action arising in tortor contract and causes of action for fraud or concealment «mage fact, are, at Lender's option, assigned to Lender, and the proceeds thereof shall be paid directly to\Uknder~Who, after deducting therefrom all its expenses, including reasonable attorneys" fees, may apply such ps Batyumas secured by this Security Instrument or to any deficiency under this Security Instrument or may hies so received by it or any part thereof, as Lender may elect. in its own name any action or proceeding to enforce any such rfise’ oP settlement thereof. Borrower agrees to execute such further pate) ime may be necessary to effectuate the foregoing provisions cause of action and may make any co assignments and any other instruments as, and as Lender shall request. 7. Protection of Lender's Rij n the Bs 3. f Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a I Proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bank aie’\for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay Yor-whtatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys’ fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Leader under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate in effect from time to time and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender willaccept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender ot applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Lender may apply, use or release the condemnation proceeds in the same manner as provided in paragraph 5 hereof with respect to insurance proceeds. : If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, cither to restoration or repair of the Property or to the sums secured by this Sccurity Instrument, whether or not then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not ‘extend or postpone the due date of the monthly payments referred 1 in paragraphs 1 and 2 or change the amount ‘of such payments. LL. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to Page 4 of & U FLD 10014 (05/10/00) OR 3174/713CL 2006144106 OR 3174/714 extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument t execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that interest in the Property under the terzas of this Security Instrument; (b) is not personally obligated to secured by this Security Instrument; and (c) agrees that Lender and ify, forbear or make any accommodations with regard to the terms Borrower's consent, py this Security Instrument is subject to a law which sets maximum preted{sd tliat the interest or other loan charges collected or to be collected in connection with the loan exceed the perlite Himits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the change’to pf pergaityed limit; and (b) any sums already collected from Borrower xwer. Lender may choose to make this refund by reducing the principal owed under the Note or by making a payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayat Prepayment charge under the Note. 14. Notices. Any notice to Borrower pievid ‘this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not ‘a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. . If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys’ fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property aud Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. Page $ of & FLDI0015 (05/10/00)CL 2006144106 OR 3174/715 ——— ee Duz:05/19/06 19. Sale of Note; Change of Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the “Loan Servicer") that collects monthly payments due under the Note and this ‘Security Instrument. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments shy made. The notice will also contain any other information required by wer shall not cause or permit the presence, use, disposal, storage, or the Property. Borrower shall not do, nor allow anyone else to do, ‘anything affecting the Property that i glijn of any Environmental Law. The preceding two sentences shall notice of any investigation, claim, demand, lawsuit or other rivate party involving the Property and any Hazardous actual knowledge. If Borrower leams, or is notified by val or other remediation of any Hazardous Substance ake all necessary remedial actions in accordance with action by any governmental or regul Substance or Environmental Law of which B any governmental or regulatory authority, that any affecting the Property is necessary, Borrow Environmental Law. Borrower shall be solely responsible for, shall indemnify, defend and hold harmless Lender, its directors, officers, employees, attorneys, agents, and their respective successors and assigns, from and against any and all claims, demands, causes of action, loss, damage, cost (including actual attorneys fees and court costs and costs of ‘any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, abatement, containment, remedial or other required plan), expenses and liability directly or indirectly arising out of or attributable to (a) the use, generation, storage, release, threatened release, discharge, disposal, abatement or presence of Hazardous Substances on, under or about the Property, (b) the transport to or from the Property of any Hazardous Substances, (c) the violation of any Hazardous Substances law, and (d) any Hazardous ‘Substances claims. ‘AS used in this paragraph 20, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, to