Lakeview Loan Servicing, LLC v. Shay C. McHone and Evelyn A. Bell

IN THE DISTRICT COURT WITHIN AND FOR OKLAHOMA COUNTY STATE OF OKLAHOMA LAKEVIEW LOAN SERVICING, LLC, Plaintiff, -vs- SHAY C. MCHONE; EVELYN A. BELL; SPOUSE, IF ANY, OF SHAY C. MCHONE; SPOUSE, IF ANY, OF EVELYN A. BELL; OCCUPANT(S) OF THE PREMISES; Defendants. PETITION COMES NOW Lakeview Loan Servicing, LLC (herein: “Plaintiff”), and for its causes of action against the above-named defendants, alleges and states as follows: 1. Plaintiff was at all times and is duly authorized to bring this action. 2. That Shay C. McHone and Evelyn A. Bell (herein: “Borrowers”), are obligated on a certain promissory note and mortgage described below. 3. Borrowers, for good and valuable consideration, made, executed, and delivered to First Mortgage Company, LLC, an Oklahoma Limited Liability Company, the original lender and Plaintiff’s predecessor in interest, a certain written promissory note which is the subject of this action (herein: “Note”). A true and correct copy of the Note is attached hereto as Exhibit “A.” a. The Note is dated November 23, 2011; b. The Note is made in the amount of $90,900.00; c. The Note establishes an annual fixed interest rate of 4.000%; and d. The Note is indorsed in blank. 4. As part of the same loan transaction, and in order to secure the payment of the loan made, Borrowers made, executed, and delivered to Mortgage Electronic Registration Systems, Inc., as nominee for First Mortgage Company, LLC, an Oklahoma Limited Liability Company, the original lender of the Note and Plaintiff’s predecessor in interest, a mortgage and conveyed the mortgage to the mortgagee (herein: “Mortgage”). The mortgage encumbers the following property: Lot Six (6), in Block Six (6), in WILEMAN THIRD ADDITION, to Oklahoma City, Oklahoma County, Oklahoma, according to the recorded Plat thereof. (herein: “Property”) with a common address 2020 NW 45th Street, Oklahoma City, OK 73118. A true and correct copy of the Mortgage is attached as Exhibit “B.” a. The Mortgage is dated November 23, 2011; b. Chay C. McHone, a single person, and Evelyn A. Bell, a single person, signed the Mortgage; and c. The Mortgage was recorded in the Oklahoma County Clerk’s Office on November 30, 2011, at Book 11786, and Page 1614. 5. By virtue of Joint Tenancy Warranty Deed, Borrowers are the present record owners of the subject Property as joint tenants with the right of survivorship. The Joint Tenancy Warranty Deed was recorded with the Oklahoma County Clerk’s Office on November 30, 2011, at Book 11786, and Page 1490. 6. The Borrowers are obligated on the subject Note and have not been released from liability thereon. 7. The Mortgage encumbers the real estate along with all the improvements, easements, appurtenances, and fixtures from the date of the execution to present and hereafter, as well as all replacements and additions to the Property. Mortgage, Ex. B. 8. Plaintiff is entitled to enforce the Note in accordance with OKLA. STAT. TIT. 12A, §3-301. 9. Plaintiff has complied with all the terms and conditions of the Note and Mortgage. 10. Borrowers are in default. The default claimed is failure to make payment, and the default date is February 1, 2025. The default has not been cured by any available means. 11. The Note and Mortgage provide that if default is made as to any of the terms of the Note and Mortgage by Borrowers, or if Borrowers fails to perform any of the other obligations described in the Note and Mortgage, that the entire unpaid principal, interest, and all other sums allowed and secured by the Note and Mortgage, shall become due and payable at the option of the Plaintiff. Further, in response to Borrowers’ default, Plaintiff is entitled to foreclose the mortgage to recover all amounts due, and to have the Property sold and all proceeds applied to the payment of the entire indebtedness described, allowed, and secured by the Note and Mortgage. 12. Plaintiff has made demand and has accelerated this loan in accordance with the Note, Mortgage, and applicable law. 13. As a necessary measure in the furtherance of enforcing this Note and Mortgage, Plaintiff has incurred costs, which are a further lien upon the Property secured by the Mortgage. 14. The Note and Mortgage provide that the attorney fees incurred by Plaintiff in the enforcement of the Note and Mortgage are the responsibility of Borrowers and constitute a further lien on the Property secured by the Mortgage. 15. After consideration of all credits to this loan account, Plaintiff is due the sum of $51,713.79 in unpaid principal balance, with 4.000% interest per annum thereon, or as adjusted by the Note and Mortgage, from January 1, 2025, until paid; and all other costs of this action including title costs, late fees, NSF fees, escrow advances, corporate advances, property preservation costs, attorney fees, and all costs and fees associated with the furtherance of this action, which is a first, prior, and superior lien on the Property. 16. Borrowers may claim some right, title, lien, estate, encumbrance, claim, assessment, or other interest in the Property by virtue of a possible homestead interest which they may have or claim to have in the Property. 17. With respect to the additional defendants, Plaintiff alleges as follows: a. Additional defendant, Spouse, if any, of Shay C. McHone, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of any possible homestead interest which he/she may have or claim to have in or to the Property. b. Additional defendant, Spouse, if any, of Evelyn A. Bell, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of any possible homestead interest which he/she may have or claim to have in or to the Property. c. Additional defendants, Occupant(s), if any, of the Premises, whose true and correct legal identities are unknown to the Plaintiff at this time, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of occupancy of the Property. d. Plaintiff further asserts that any right, title, lien, estate, encumbrance, claim assessment, or interest claimed by any defendant is subordinate and inferior to the mortgage lien claimed by Plaintiff. Plaintiff respectfully requests that each and every defendant claiming and interest in the Property be required to establish the claimed right herein or be barred forever for further asserting such a claim. WHEREFORE, Plaintiff prays for a judgment in personam against Borrowers in the amount of $51,713.79, with 4.000% interest per annum thereon, or as adjusted by the Note and Mortgage, from January 1, 2025, until paid; all abstracting and title costs incurred by Plaintiff to enforce the Note and Mortgage; all late charges; NSF fees; escrow advances; corporate advances; taxes; insurance premiums; property preservation charges; attorney fees; and all fees and costs associated with this action as allowed by the Note and Mortgage. FURTHER, Plaintiff prays for judgment in rem against Borrowers, the Property, the Premises, and all other defendants, awarding judgment as follows: All defendants have set out their purported claims to the Property or have waived their rights to do so. Plaintiff's mortgage is declared a first, prior, and superior lien on the Property as to all other claims asserted, and further declaring that Plaintiff is entitled to all amounts set forth herein. That Plaintiff is entitled to foreclose the Mortgage, and the Property shall be sold for cash and that sale shall be had with appraisement. The proceeds of the sale shall be applied first to the payment of the costs incurred herein, and then to the satisfaction of the judgment amount, Mortgage, and lien asserted by Plaintiff. That Plaintiff's Mortgage lien interest is prior, first, and superior to all other claims of defendants. That all right, title, claim, encumbrance, or interest claimed by any defendant shall be adjudged junior, inferior, and subject to Plaintiff's Mortgage lien. That upon confirmation of the sale, that all and each of the defendants herein, be forever foreclosed, barred, and enjoined from asserting claim of a right, title, estate, encumbrance, or other interest of any nature to the Property. Finally, Plaintiff prays for any and all further relief this Court deems just and equitable. Respectfully submitted, Sally E. Garrison, OBA #18709 Alex S. Rivera, OBA #32269 Amy R. Sullivan, OBA #35938 The Mortgage Law Firm, PLLC 421 NW 13th Street, Suite 300 Oklahoma City, OK 73103 Telephone: (405) 246-0602 Facsimile: (405) 698-0007 [email protected] [email protected] [email protected] Attorneys for Plaintiff THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. November 23, 2011 NOTE MIN: [blacked out] 2020 NW 45th Street Oklahoma City, OK 73118 [Property Address] 1. PARTIES "Borrower" means each person signing at the end of this Note, and the person's successors and assigns. "Lender" means First Mortgage Company, LLC, an Oklahoma Limited Liability Company and its successors and assigns. 2. BORROWER'S PROMISE TO PAY; INTEREST In return for a loan received from Lender, Borrower promises to pay the principal sum of Ninety Thousand Nine Hundred and 00/100 Dollars (U.S. $90,900.00), plus interest, to the order of Lender. Interest will be charged on unpaid principal, from the date of disbursement of the loan proceeds by Lender, at the rate of Four and 000/1000 percent (4.000%) per year until the full amount of principal has been paid. 3. PROMISE TO PAY SECURED Borrower's promise to pay is secured by a mortgage, deed of trust or similar security instrument that is dated that same date as this Note and called the "Security Instrument." That Security Instrument protects the Lender from losses which might result if Borrower defaults under this Note. 4. MANNER OF PAYMENT (A) Time Borrower shall make a payment of principal and interest to Lender on the 1st day of each month beginning on January 1st, 2012. Any principal and interest remaining on the 1st day of December, 2041, will be due on that date, which is called the "Maturity Date". (B) Place Payment shall be made at 6501 N BROADWAY STE 250 Oklahoma City, OK 73116 or at such other place as Lender may designate in writing by notice to Borrower. (C) Amount Each monthly payment of principal and interest will be in the amount of U.S. $433.97. This amount will be part of a larger monthly payment required by the Security Instrument, that shall be applied to principal, interest and other items in the order described in the Security Instrument. (D) Allonge to this Note for payment adjustments If an allonge providing for payment adjustments is executed by Borrower together with this Note, the covenants of the allonge shall be incorporated into and shall amend and supplement the covenants of this Note as if the allonge were a part of this Note. [Check applicable box.] [ ] Graduated Payment Allonge [ ] Growing Equity Allonge [ ] Other [specify] 5. BORROWER'S RIGHT TO PREPAY Borrower has the right to pay the debt evidenced by this Note, in whole or in part, without charge or penalty, on the first day of any month. Lender shall accept prepayment on other days provided that borrower pays interest on the amount prepaid for the remainder of the month to the extent required by Lender and permitted by regulations of the Secretary. If Borrower makes a partial prepayment, there will be no changes in the due date or in the amount of the monthly payment unless Lender agrees in writing to those changes. 6. BORROWER'S FAILURE TO PAY (A) Late Charge for Overdue Payments If Lender has not received the full monthly payment required by the Security Instrument, as described in Paragraph 4(C) of this Note, by the end of fifteen calendar days after the payment is due, Lender may collect a late charge in the amount of Four and 000/1000 percent (4.000%) of the overdue amount of each payment. (B) Default If Borrower defaults by failing to pay in full any monthly payment, then Lender may, except as limited by regulations of the Secretary in the case of payment defaults, require immediate payment in full of the principal balance remaining due and all accrued interest. Lender may choose not to exercise this option without waiving its rights in the event of any subsequent default. In many circumstances regulations issued by the Secretary will limit Lender's rights to require immediate payment in full in the case of payment defaults. This Note does not authorize acceleration when not permitted by HUD regulations. As used in this Note, "Secretary" means the Secretary of Housing and Urban Development or his or her designee. (C) Payment of Costs and Expenses If Lender has required immediate payment in full, as described above, Lender may require Borrower to pay costs and expenses including reasonable and customary attorneys' fees for enforcing this Note to the extent not prohibited by applicable law. Such fees and costs shall bear interest from the date of disbursement at the same rate as the principal of this Note. 7. WAIVERS Borrower 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 Lender to demand payment of amounts due. "Notice of dishonor" means the right to require Lender to give notice to other persons that amounts due have not been paid. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to Borrower under this Note will be given by delivering it or by mailing it by first class mail to Borrower at the property address above or at a different address if Borrower has given Lender a notice of Borrower's different address. Any notice that must be given to Lender under this Note will be given by first class mail to Lender at the address stated in Paragraph 4(B) or at a different address if Borrower is 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 is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. Lender may enforce its rights under this Note against each person individually or against all signatories together. Any one person signing this Note may be required to pay all of the amounts owed under this Note. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Note. The undersigned borrower(s) receipt of a copy of this instrument. (SEAL) Borrower Shay C McHone (SEAL) Borrower Evelyn A Bell (SEAL) Borrower (SEAL) Borrower (SEAL) Borrower Without Recourse, pay to the order of JPMorgan Chase Bank, N.A. First Mortgage Company, LLC, an Oklahoma Limited Liability Company By Jan R. Gotcher, Co-Manager Rec & Ret: to: American Eagle Title Group 410 N. Walnut, Suite 100 Oklahoma City, OK 73104 Whom Recorded Returns To: First Mortgage Company, LLC 6501 North Broadway Ste 180 Oklahoma City, OK 73116 [FH] [Space Above This Line For Recording Date] State of Oklahoma MORTGAGE FHA Case No. MIN: THIS MORTGAGE ("Security Instrument") is given on November 23rd, 2011. The mortgagor is Shary C. McMoore, A Single Person and Evelyn A. Bell, A Single Person ("Borrower"). This Security Instrument is given to Mortgage Electronic Registration Systems, Inc. ("MERS") (solely as nominee for Lender, as hereinafter defined, and Lender's successors and assigns), as beneficiary. MERS is organized and exists under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 62-MERS. First Mortgage Company, LLC, an Oklahoma Limited Liability Company which is organized and existing under the laws of the State of Oklahoma and whose address is 6501 N BROADWAY STE 250 Oklahoma City, OK 73116 ("Lender"). Borrower owes Lender the principal sum of Ninety Thousand Nine Hundred and Fifty Dollars ($90,950.00). 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 debt, if not paid earlier, due and payable on December 1, 2041. This Security Instrument is current secure to Lender; (a) the payment 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, with power of sale, the following described property located in Oklahoma County, Oklahoma: Lot Six (6) in Block Six, in Witteman Third Addition, to Oklahoma City, Oklahoma County, Oklahoma, according to the recorded plat thereof. RECEIVED AT TAX S 90/90 PAID ON NOVEMBER 20th 2011 RCPTS 601 FOURSOM DUGAN FREEMAN OKLA CO. TREASURER PAUL PAULE WEISS which has the address of 2828 NW 45th Street Oklahoma City [State] OK [Zip Code] 73118 [County] ("Property Address") TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures therefor hereafter acquired of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to herein as the "Security Instrument" as the "Property". THE BORROWER COVENANTS that Borrower is lawfully seized of the property here conveyed and has the right to mortgage, grant, assign, 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. FHAI Mortgage MERS 35977.CY (344) 5652788 THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variation by jurisdiction to constitute a uniform security instrument covering real property. Borrower and lender covenant and agree as follows: UNIFORM COVENANTS: 1. Payment of Principal, Interest and Late Charges. Borrower shall pay when due the principal of, and interest on, any debt evidenced by the Note and late charges due under the Note. 2. Monthly Payment of Escrow Items. Borrower shall include in each monthly payment, together with the principal and interest as set forth in the Note and late charges due under the Note: (a) special assessments levied or to be levied against the Property; (b) leasehold payments or ground rents on the Property; and (c) items required for insurance under Paragraph 4, in any year in which the Lender must pay a mortgage insurance premium to the Secretary of HUD ("HUD" or "Secretary"), or in any year in which such premium would have been required if Lender still held the Security Instrument. In any such payment and also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secretary; or (ii) monthly installments instead of a mortgage insurance premium if this Security Instrument is held by the Secretary. In a reasonable manner, these items are called "Escrow Items." Except for the monthly charge by the Secretary, these items are called "Escrow Items" and the sums paid to Lender are called "Escrow Items." Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the maximum permitted by law for required Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. §2601 et seq., and all related regulations, 24 CFR Part 3550, as they may be amended from time to time ("RESPA"), except that the cushion or reserve established under RESPA for anticipated disbursements or disbursements before the Borrower's payments are available in the account may not be based on amounts for the mortgage insurance premium. If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require the Borrower to pay up the shortage as determined by RESPA. The Escrow Funds are pledges as additional security for all sums secured by this Security Instrument. If Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not been required to pay to the Secretary. Any Lender shall promptly refund any excess funds to Borrower immediately prior to an extinguishment of the indebtedness secured by Lender. Borrower's account shall be credited with any balance remaining for all installments for items (a), (b), and (c). 3. Application of Payments. All payments under Paragraphs 1 and 2 shall be applied by Lender as follows: First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary instead of the monthly mortgage insurance premium; Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance premiums, in the following order: Third, to interest due under the Note; Fourth, to amortization of the principal of the Note; and Fifth, to the charges due under the Note. 4. Policy of Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against any flood as required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and all renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. In the event of death of Borrower, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss payment for such loss directly to Lender, instead of to Borrower and/or Lender jointly. All or any part of the proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness secured by this Note under this Security Instrument; first, to any remaining amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the restoration of the Property to damage. Property. Any application of the proceeds to the principal shall not extend or postpone the due date of the money payments referred to in Paragraph 2, or change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto. In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. 5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Assumption Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property). Borrower shall maintain the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender determines that Borrower will not use the Property as a principal residence by reason of extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of any such extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Property to become infested with vermin and/or unsanitary. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default. Lender may take reasonable measures to protect and preserve such vacant or abandoned Property. Borrower shall also be in default if Borrower, during the term of application, application, application, application or statement to Lender (or failed to provide Lender with any material information) in connection with the note as evidenced by the Note, including but not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence if this Security Instrument is on a leasehold. Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, Lender shall have no recourse unless Lender agrees to the merger in writing. 6. Condemnation. The proceeds of any sale or action, or any proceeds of condemnation, 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 to the extent of the full amount of the Indebtedness that remains unpaid under the Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts specified in the order provided in Paragraph 3, and then to prepayment of principal. Any application of the proceeds to the Note shall not extend or postpone the due date of the monthly payments, which are referred to in Paragraph 2, or change the amount of any payment. Any proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to Borrower promptly after receipt thereof. 7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all assessments, taxes, or municipal charges, fines and Impositions that are not included in Paragraph 2. Borrower shall pay these obligations directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments. If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other covenant, agreement or condition contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property, such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay any act or acts necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes, hazard insurance and other items mentioned in Paragraph 2. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured by this Security Instrument. These amounts shall bear interest from the date of disbursement at the Note rate, and in the option of Lender, shall be immediately due and payable. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the satisfaction of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against, action brought in a legal proceeding which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender for coordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien that 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. 8. Fees. Borrower shall pay all fees and charges authorized by the Secretary. 9. Grounds for Acceleration of Debt. (a) Default. Lender may, except as limited by regulations issued by the Secretary in the case of payment defaults, require immediate payment in full of all sums secured by this Security Instrument if: (i) Borrower fails to pay in full any monthly payment required by this Security Instrument prior to or on the due date of such monthly payment; or (ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in this Security Instrument. (b) Sale Without Judicial Approval. Lender shall, if permitted by applicable law (including section 341(d) of the Germ-St Germain Dormitory Institutions Act of 1942, 12 U.S.C. §1701-3(d)) and with the prior approval of the Secretary, require immediate payment in full of all sums secured by this Security Instrument if: (i) All or any part of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or otherwise transferred (other than by devise or descent), and (ii) The Property is not occupied by the purchaser or grantee, nor his or her principal residence, or the purchaser or grantee does not occupy the Property, but his or her credit has not been approved in advance pursuant to the requirements of the Secretary. (c) No Waiver. If circumstances occur that permit Lender to require immediate payment in full, but Lender does not require such payment, Lender does not waive its rights with respect to subsequent events. (d) Regulations of HUD Secretary. In many circumstances regulations issued by the Secretary will limit Lender's rights, in the case of payment defaults, to require immediate payment in full and foreclose if not paid. This Security Instrument does not authorize acceleration or foreclosure if not permitted by regulation of the Secretary. (e) Mortgage Insurance. Borrower agrees that if this Security Instrument and the Note are not determined to be eligible for insurance under the National Housing Act within Sixty (60) days from the date hereof, Lender may, at its option require immediate payment in full of all sums secured by this Security Instrument. A written statement of any authorized agent of the Borrower dated subsequent to Sixty (60) days from the date hereof, declining to insure this Security Instrument and the Note, shall be deemed conclusive proof of such inability. Notwithstanding the foregoing, this option may not be exercised by Lender when the unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance premium. 10. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full because of Borrower's failure to pay an amount due under the Note or this Security Instrument. This right applies even after commencement of foreclosure proceedings. To reinstate the Security Instrument, Borrower shall tender in a lump sum all amounts required to bring Borrower's obligations current, to the extent there are obligations of Borrower under this Security Instrument, foreclosure costs and reasonable attorney fees, expenses and expenses incurred in connection with the foreclosure proceeding. Upon reinstatement by Borrower, this Security Instrument and the obligations that it secures shall be as if Lender had not required immediate payment in full. However, Lender is not required to permit reinstatement if: (i) Lender denies that reinstatement after the commencement of foreclosure proceedings within two years immediately preceding the commencement of foreclosure proceeding; or (ii) reinstatement will preclude foreclosure on different grounds in the future, or (iii) reinstatement will adversely affect the interests of persons whose interest is covered by this Security Instrument. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. If payment of the time of 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 successor in interest. Lender shall not be obligated to permit either borrower again to assume in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any default 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 9(c). Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument for Borrower, (b) assumes the Borrower's interest in the Property under the terms of this Security Instrument; (c) is not personally obliged to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, increase or change any accommodations with regard to terms of this Security Instrument or the Note without that Borrower's consent. 13. Notices. All notices to Borrower provided for in 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 in writing to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any address Lender designates in writing to Borrower. Such notice made for this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 14. 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 which violates applicable law such conflict shall not affect other provisions of this Security Instrument or the Note which may be valid if voided by said conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 15. Borrower's Copy. Borrower shall be given one conforming copy of the Note and of this Security Instrument. 16. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the normal use or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential use and to maintenance of the Property. Borrower shall promptly give Lender written notice of any enforcement claims, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substances at Environmental Law which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any remediation or other remediation of any Hazardous Substances affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 16, "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, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in the paragraph 16, "Environmental Laws" means federal laws and laws of the State enacted by the property located that relate to health, safety or environmental protection. NON-UNIFORM COVENANTS. Borrower and Lender mutually agree as follows: 17. Assignment of Rents. Borrower unconditionally assigns and transfers to Lender all the rents and revenues of the Property. Borrower authorizes Lender or Lender's agents to collect the rents and revenues and hereby directs each as agent of the other to give rent so to Lender or lender's agents. However, prior to Lender's notice to Borrower of Borrower's breach of any covenant contained in this Security Instrument, Borrower shall collect and receive all rents and revenues of the Property as trustee for the benefit of itself and Borrower. This assignment of rents constitutes an absolute assignment and not an assignment for additional security only. If Lender is authorized to collect and receive the rents, (a) all rents received by Borrower shall be held by Borrower as trustees for benefit of Lender only, to be applied by Borrower in satisfaction of the Security Instrument; (b) Lender shall be entitled to collect and receive all of the rents of the Property; and (c) each tenant of the Property shall pay all rents due to them to Lender or Lender's agent on Lender's written demand to the tenant. Borrower has not executed a power of attorney to assign the rents and has not and will not perform any act that would prevent Lender from exercising its rights under this paragraph. Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice of foreclosure or deed. However, Lender or a judicially appointed receiver may do so at any time there is a breach. Any application of funds shall not operate to discharge any default or invalidate any other right or remedy of Lender. This assignment of rents of the Property shall terminate when the debt secured by the Security Instrument is paid in full. 18. Foreclosure Procedure. If Lender requires immediate payment in full under Paragraph 9, Lender may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 18, including, but not limited to, reasonable attorney fees and costs of record evidence. If Lender directs that there be a sale, Lender shall give notice in the manner required by applicable law to Borrower and any other persons prescribed by applicable law. Lender shall publish the notice of sale, and the Property shall be sold, as prescribed by applicable law. Lender or its designated may purchase the Property at any sale. The proceeds of the sale shall be applied in the manner prescribed by applicable law. If this Security Interest assigned by this Security Instrument is held by the Secretary and the Secretary requires immediate payment in full under Paragraph 9, the Secretary must exercise nonjudicial power of sale provided in the Single Family Mortgage Foreclosure Act of 1994 ("Act") (12 U.S.C. 3717-3719, as amended), granting it a continuing power if designated under the Act to commence foreclosure and to sell the Property as provided in the Act. Nothing in the foreclosures proceeding shall deprive the Secretary of any rights otherwise available to a Lender under this Paragraph 18 or applicable law. 19. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument without charge to Borrower. Borrower shall pay any recording cost unless applicable law provides otherwise. 20. Waiver of Appraisement. Appraisal of the Property is waived or not waived at Lender's option, which shall be exercised before or at the time judgment is entered in any foreclosure. 21. Assumptions Fee. If there is an assumption of this loan, Lender may charge an assumption fee of the maximum allowed by the Secretary of HUD. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. (Check applicable box (es)) ☐ Condominium Rider ☐ Graduated Payment Rider ☐ PUD Rider ☐ Growing Equity Rider ☐ Other [Specify] NOTICE TO BORROWER A POWER OF SALE HAS BEEN GRANTED IN THIS SECURITY INSTRUMENT. A POWER OF SALE MAY ALLOW THE LENDER TO TAKE THE PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY BORROWER UNDER THIS SECURITY INSTRUMENT. BY SIGNING BELOW, Borrower accepts and agrees to the terms contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Witnesses: __________________________ ________________________________ (Seal) (Seal) Shay C McHone Evelyn A Bell __________________________ ________________________________ (Seal) (Seal) Borrower __________________________ ________________________________ (Seal) (Seal) Borrower __________________________ ________________________________ (Seal) (Seal) Borrower __________________________ ________________________________ (Seal) (Seal) Borrower [Space Below This Line For Acknowledgement] STATE OF Oklahoma ) COUNTY OF Oklahoma ) ss: The foregoing instrument was acknowledged before me this 23rd day of November 2011, by Shay C. McHone, A Single Person and Evelyn A. Bell, A Single Person Witness my hand and official seal. My commission expires: __________________________ ________________________________ (Signature) (Signature) Jethwa Anderson Notary Public