BANK OF NEW YORK MELLON TRUST COMPANY, N.A. AS TRUSTEE FOR MORTGAGE ASSETS MANAGEMENT SERIES I TRUST v. WILLIAM D. SHAUL

IN THE DISTRICT COURT IN AND FOR DELAWARE COUNTY STATE OF OKLAHOMA BANK OF NEW YORK MELLON ) TRUST COMPANY, N.A. AS ) TRUSTEE FOR MORTGAGE ASSETS ) MANAGEMENT SERIES I TRUST; ) Plaintiff, vs. WILLIAM D. SHAUL; SPOUSE OF WILLIAM D. SHAUL, IF MARRIED; OCCUPANTS OF THE PREMISES; UNITED STATES OF AMERICA, EX REL. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; Defendants. Case No. CJ 2020-35 Judge PETITION FOR FORECLOSURE OF MORTGAGE COMES NOW the Plaintiff and for cause of action against the Defendants, alleges and states: 1. Plaintiff is a corporation duly organized under the laws of the United States of America, and was at all times hereinafter stated, authorized to transact business in the State of Oklahoma. 2. This court has both jurisdiction and venue for this cause of action. 3. On or about June 8, 2005, Zelda May Shaul, deceased as of September 20, 2007 and the Defendant, William D. Shaul, for good and valuable consideration, made, executed and delivered to Financial Freedom Senior Funding Corporation, a Subsidiary of IndyMac Bank, F.S.B., a certain promissory note, in writing, promising and agreeing to pay to the holder thereof, the sum of $258,948.00 with interest thereon at the initial rate of 4.78% per annum and as said THIS FORECLOSURE ACTION UPON COMPLETION IS NOT TO BE CONSTRUED AS A TITLE GUARANTEE OR FOR PURPOSES OF TITLE INSURANCE. interest rate is adjusted pursuant to the terms of said note on the unpaid balance, principle and outstanding interest payable on demand, pursuant to conditions in said note. A copy of said Note is attached hereto, marked Exhibit "A" and made a part hereof, as if incorporated herein in full. 4. That as part and parcel of the same transaction, and for the purpose of securing the payment of the aforesaid promissory note and all of the indebtedness evidenced thereby, the makers of said note, being then and there the owners of the fee simple title of record of the property hereinafter described, made executed and delivered to Financial Freedom Senior Funding Corporation, a Subsidiary of IndyMac Bank, F.S.B., a real estate reverse mortgage, encumbering the following real property, to-wit: Tract #11 A tract of land located in the NE 1/4 NE 1/4 of Section 32, Township 25 North, Range 24 East, Delaware County, Oklahoma, described as follows: Beginning at the NE corner of the said NE 1/4 NE 1/4; thence South 1188 feet; thence West 145.7 feet to the point of beginning; thence North 149.5 feet; thence West 145.7 feet; thence South 149.5 feet; thence East 145.7 feet to the point of beginning, commonly known as 62993 East 282 Road, Grove, OK 74344 (the "Property") That said reverse mortgage was duly executed and acknowledged, according to law, and was duly recorded in the Office of the County Clerk of said County, State of Oklahoma, recorded on June 17, 2005, in Book No. 1666, at Page 680. Said mortgage is a good and valid first lien upon the property above described. A copy of said mortgage is attached hereto, marked Exhibit "B" and made a part hereof, as if incorporated herein in full. The mortgage tax due on said mortgage, as provided by the laws of the State of Oklahoma, has been duly paid, as evidenced by the endorsement thereon. 5. That the Plaintiff has the right to foreclose and is the present holder of said Note and Mortgage having received due assignment of mortgage through mesne assignments of record, said assignment of mortgage recorded in the office of the County Clerk of said County in Book 2299 at Page 0233. A copy of said assignment of mortgage is attached hereto, marked Exhibit "C" and incorporated herein by reference. 6. By the terms and conditions of said Note and Mortgage now held by the Plaintiff, it is specifically provided that in the event of default and/or demand by note holder under said Note and Mortgage, the entire amount outstanding, less unearned interest, shall at once become due and payable at the option of the note holder. 7. That Zelda May Shaul is deceased, having died on or about the 20th day of September, 2007, and at the time of her death, she held title via a Joint Tenancy Warranty Deed, recorded on the 11th day of April, 2005, in Book 1656, Page 244 in the records of the County Clerk of Delaware County with William D. Shaul. That the joint tenancy of Zelda May Shaul has terminated and the subject property is vested in William D. Shaul. A copy of said deed is attached hereto, marked Exhibit “D” and incorporated herein by reference. 8. Plaintiff further states that demand by note holder pursuant to the terms of the note has declared the entire balance due and payable, according to the terms of said Note on September 24, 2019, which said payment has not been made; and Plaintiff, as the holder of said note, has elected to declare the entire balance due and payable; there is now due on said Note and Mortgage the principal sum of $185,244.87 plus future advances for monthly servicing fees, mortgage insurance premiums, taxes, property preservation costs and other costs as set forth under the terms of the aforesaid loan documents, to be added to the [principal/loan] balance, plus compounding interest on that increasing [principal/loan] balance at the monthly-adjustable rate as provided for in the Note; as provided for in said Note and Mortgage. Plaintiff has demanded the payment of the same but the Defendant failed, refused and neglected to pay such amounts due. 9. Plaintiff further states that by reason of the default of said Defendant, the conditions of said Note and Mortgage have been broken; that the whole amount of the indebtedness thereby secured has matured and is now due and payable, together with interest thereon. By reason of the default aforesaid, Plaintiff has been required to pay abstracting charges and will be required to pay other title search expenses during the pendency of this action, and Plaintiff as provided in the Note and Mortgage, is entitled to reimbursement for these costs, the costs of preservation, and the costs of this suit and of collection including a reasonable attorney's fee. 10. Plaintiff has complied with all provisions of the mortgage including provisions relating to notice of default and is thus entitled to foreclosure of its mortgage and to a decree of this Court that its mortgage lien is a first and prior lien thereon and that the same should be sold to satisfy the indebtedness due Plaintiff herein. 11. That after allowing all just credits, there is due to Plaintiff on said Note and Mortgage the sum of $185,244.87, plus future advances for monthly servicing fees, mortgage insurance premiums, taxes, property preservation costs and other costs as set forth under the terms of the aforesaid loan documents, to be added to the [principal/loan] balance, plus compounding interest on that increasing [principal/loan] balance at the monthly-adjustable rate as provided for in the Note; abstracting expense, accrued and accruing; insurance and preservation expenses accrued and accruing, bankruptcy fees and costs, if any; a reasonable attorney's fee provided for in said Note and Mortgage, and Plaintiff's costs; and all necessary funds advanced by Plaintiff accrued and accruing hereafter through completion of this action, for which said amounts said Mortgage is a first, prior and superior lien upon the real estate and premises above described. 12. That the Defendant, Spouse of William D. Shaul, if married, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the real property involved herein. Plaintiff states, however, that any right, title, or interest claimed by said Defendant, Spouse of William D. Shaul, if married, is subordinate and inferior to the mortgage lien claimed by the Plaintiff, and this Plaintiff prays to the Court that the said Defendant, Spouse of William D. Shaul, if married, be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the lands involved in this action or be forever barred from claiming any right in and to the said real estate. 13. That the Defendant, Occupants of the Premises, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the real property involved herein, for and on account of tenancy. Plaintiff states, however, that any right, title, or interest claimed by said Defendant, Occupants of the Premises, is subordinate and inferior to the mortgage lien claimed by the Plaintiff, and this Plaintiff prays to the Court that the said Defendant, Occupants of the Premises, be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the lands involved in this action or be forever barred from claiming any right in and to the said real estate. 14. That the Defendant, United States of America, ex rel. Department of Housing and Urban Development, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the real property involved herein, for and on account of a mortgage. Plaintiff states, however, that any right, title, or interest claimed by said Defendant, United States of America, ex rel. Department of Housing and Urban Development, is subordinate and inferior to the mortgage lien claimed by the Plaintiff, and this Plaintiff prays to the Court that the said Defendant, United States of America, ex rel. Department of Housing and Urban Development, be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the lands involved in this action or be forever barred from claiming any right in and to the said real estate. A copy of said mortgage is attached hereto, marked Exhibit "E", and incorporated herein by reference. 15. **This is an attempt to collect a debt and any information obtained will be used for that purpose.** The creditor signed has employed the below law firm to collect the amount of debt, together with any other costs and expenses allowed under the note and real estate mortgage. Prior to the filing of this action and in compliance with the Fair Debt Collection Practices Act the Plaintiff's attorney has mailed Debt Verification Notices to the last known addresses of the debtor. WHEREFORE, premises considered, Plaintiff prays that it have judgment, **in rem**, of and from the Defendant, William D. Shaul, in the amount of $185,244.87 plus future advances for monthly servicing fees, mortgage insurance premiums, taxes, property preservation costs and other costs as set forth under the terms of the aforesaid loan documents, to be added to the [principal/loan] balance, plus compounding interest on that increasing [principal/loan] balance at the monthly-adjustable rate as provided for in the Note; as provided for in said Note and Mortgage, abstracting expense, accrued and accruing; insurance and preservation expenses accrued and accruing; bankruptcy fees and costs, if any; a reasonable attorney's fee provided for in said Note and Mortgage, and Plaintiff's costs; and all necessary funds advanced by Plaintiff accrued and accruing hereafter through completion of this action. And a further judgment against all of the Defendants, adjudging; That said mortgage be foreclosed and that the same be declared a valid first and prior lien upon the real estate and premises above described, for and in the amount set forth, and order the said real estate and premises sold, with or without appraisement, as the Plaintiff shall elect at the time judgment is rendered herein; and as provided in said Mortgage, and by law, subject to unpaid taxes, if any, to satisfy said judgment and the proceeds therefrom applied to the payment of the costs herein and payment and satisfaction of the judgment, mortgage and lien of this Plaintiff, and that the surplus, if any, be paid into Court, to abide the further order of the Court; That all of said Defendants be required to appear and set forth any right, title, claim or interest which they have or may have in and to said real estate and premises, which they, in any way claim, is prior or superior to the mortgage and lien of this Plaintiff; That the Court adjudicate that all of said claims are subject, junior and inferior to the mortgage, lien and judgment of this Plaintiff; and that upon confirmation of said sale, the Defendants herein and each of them, and all persons claiming by, through or under them, since the commencement of this action, be forever barred, foreclosed and enjoined from asserting or claiming any right, title, interest, estate or equity of redemption in and to said premises or any part thereof; That this Plaintiff have such other and further relief as may be just and equitable. KIVELL, RAYMENT AND FRANCIS A Professional Corporation By:__________________________________________ Jason Howell, OBA #19128 Triad Center I, Suite 550 7666 East 61st Street Tulsa, Oklahoma 74133 Telephone (918) 254-0626 Facsimile (918) 254-7915 E-mail: [email protected] ATTORNEYS FOR PLAINTIFF VERIFICATION STATE OF OKLAHOMA ) COUNTY OF TULSA ) ) ss. Jason Howell, being first duly sworn, upon oath, deposes and says: That he/she is one of the attorneys for the Plaintiff in the above entitled action; that he/she prepared the above and foregoing Petition, knows the contents thereof, and that to the best of his/her knowledge and belief, the matters and things therein set forth are true and correct. By: Date: 2/20/20 Title: Attorney Jason Howell, OBA #19128 Triad Center I, Suite 550 7666 East 61st Street Tulsa, Oklahoma 74133 Telephone (918) 254-0626 Facsimile (918) 254-7915 E-mail: [email protected] ATTORNEYS FOR PLAINTIFF SUBSCRIBED AND SWORN to before me this 20 day of Feb., 2020, by Jason Howell. NOTARY PUBLIC ADJUSTABLE RATE NOTE (HOME EQUITY CONVERSION) FHA Case No. JUNE 08 , 2005 62993 E. 292 RD., GROVE, OKLAHOMA 74344 [Property Address] 1. DEFINITIONS "Borrower" means each person signing at the end of this Note. "Lender" means FINANCIAL FREEDOM SENIOR FUNDING CORPORATION, A SUBSIDIARY OF INDYMAC BANK, F.S.B. and its successors and assigns. "Secretary" means the Secretary of Housing and Urban Development or his or her authorized representatives. 2. BORROWER'S PROMISE TO PAY; INTEREST In return for amounts to be advanced by Lender to or for the benefit of Borrower under the terms of a Home Equity Conversion Loan Agreement dated JUNE 08, 2005 ("Loan Agreement"), Borrower promises to pay to the order of Lender a principal amount equal to the sum of all Loan Advances made under the Loan Agreement with interest. All amounts advanced by Lender, plus interest, if not paid earlier, are due and payable on JUNE 02 , 2090 . Interest will be charged on unpaid principal at the rate of FOUR AND 780/1000 percent ( 4.7800 %) per year until the full amount of principal has been paid. The interest rate may change in accordance with Paragraph 5 of this Note. Accrued interest shall be added to the principal balance as a Loan Advance at the end of each month. 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 the 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 pay all outstanding principal and accrued interest to Lender upon receipt of a notice by Lender requiring immediate payment in full, as provided in Paragraph 7 of this Note. (B) Place Payment shall be made at FINANCIAL FREEDOM SENIOR FUNDING CORPORATION, 500 NORTH RIDGE ROAD STE. 508, ATLANTA, GEORGIA 30350 may designate in writing by notice to Borrower. (C) Limitation of Liability Borrower shall have no personal liability for payment of the debt. Lender shall enforce the debt only through sale of the Property covered by the Security Instrument ("Property"). If this Note is assigned to the Secretary, the Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment. 5. INTEREST RATE CHANGES (A) Change Date The interest rate may change on the first day of SEPTEMBER, 2005 , and on ☐ that day of each succeeding year ☒ the first day of each succeeding month. "Change Date" means each date on which the interest rate could change. (B) The Index Beginning with the first Change Date, the interest rate will be based on an Index. "Index" means the weekly average yield on United States Treasury Securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. "Current Index" means the most recent Index figure available 30 days before the Change Date. If the Index (as defined above) is no longer available, Lender will use as a new index any index prescribed by the Secretary. Lender will give Borrower notice of the new Index. (C) Calculation of Interest Rate Changes Before each Change Date, Lender will calculate a new interest rate by adding a margin of ONE AND 500/1000 percentage points ( 1.5000 %) to the Current Index. Subject to the limits stated in Paragraph 5(D) of this Note, this amount will be the new interest rate until the next Change Date. (D) Limits on Interest Rate Changes ☐ The interest rate will never increase or decrease by more than two percentage points (2.0%) on any single Change Date. The interest rate will never be more than five percentage points (5.0%) higher or lower than the initial interest rate stated in Paragraph 2 of this Note ☒ The interest rate will never increase above FOURTEEN AND 780/1000 percent ( 14.7800 %). (E) Notice of Changes Lender will give notice to Borrower of any change in the interest rate. The notice must be given at least 25 days before the new interest rate takes effect, and must set forth (i) the date of the notice, (ii) the Change Date, (iii) the old interest rate, (iv) the new interest rate, (v) the Current Index and the date it was published, (vi) the method of calculating the adjusted interest rate, and (vii) any other information which may be required by law from time to time. (F) Effective Date of Changes A new interest rate calculated in accordance with paragraphs 5(C) and 5(D) of this Note will become effective on the Change Date, unless the Change Date occurs less than 25 days after Lender has given the required notice. If the interest rate calculated in accordance with Paragraphs 5(C) and 5(D) of this Note decreased, but Lender failed to give timely notice of the decrease and applied a higher rate than the rate which should have been stated in a timely notice, then Lender shall recalculate the principal balance owed under this Note so it does not reflect any excessive interest. 6. BORROWER'S RIGHT TO PREPAY A Borrower has the right to pay the debt evidenced by this Note, in whole or in part, without charge or penalty. Any amount of debt prepaid will first be applied to reduce the principal balance of the Second Note described in Paragraph 11 of this Note and then to reduce the principal balance of this Note. All prepayments of the principal balance shall be applied by Lender as follows: First, to that portion of the principal balance representing aggregate payments for mortgage insurance premiums; Second, to that portion of the principal balance representing aggregate payments for servicing fees; Third, to that portion of the principal balance representing accrued interest due under the Note; and Fourth, to the remaining portion of the principal balance. A Borrower may specify whether a prepayment is to be credited to that portion of the principal balance representing monthly payments or the line of credit. If Borrower does not designate which portion of the principal balance is to be prepaid, Lender shall apply any partial prepayments to an existing line of credit or create a new line of credit. 7. IMMEDIATE PAYMENT IN FULL (A) Death or Sale Lender may require immediate payment in full of all outstanding principal and accrued interest if: (i) A Borrower dies and the Property is not the principal residence of at least one surviving Borrower, or (ii) All of a Borrower's title in the Property (or his or her beneficial interest in a trust owning all or part of the Property) is sold or otherwise transferred and no other Borrower retains title to the Property in fee simple or retains a leasehold under a lease for less than 99 years which is renewable or a lease having a remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest Borrower or retains a life estate (or retaining a beneficial interest in a trust with such an interest in the Property). (B) Other Grounds Lender may require immediate payment in full of all outstanding principal and accrued interest, upon approval by an authorized representative of the Secretary, if: (i) The Property ceases to be the principal residence of a Borrower for reasons other than death and the Property is not the principal residence of at least one other Borrower; (ii) For a period of longer than 12 consecutive months, a Borrower fails to physically occupy the Property because of physical or mental illness and the Property is not the principal residence of at least one other Borrower; or (iii) An obligation of the Borrower under the Security Instrument is not performed. (C) Payment of Costs and Expenses If Lender has required immediate payment in full as described above, the debt enforced through sale of the Property may include costs and expenses, including reasonable and customary attorneys' fees, associated with enforcement of 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. (D) Trusts Conveyance of a Borrower's interest in the Property to a trust which meets the requirements of the Secretary, or conveyance of a trust's interests in the Property to a Borrower, shall not be considered a conveyance for purposes of this Paragraph. A trust shall not be considered an occupant or be considered as having a principal residence for purposes of this Paragraph 8. WAIVERS Borrower waives 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. 9. 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. 10. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully obligated to keep all of the promises made in this Note. Lender may enforce its rights under this Note only through sale of the Property 11. RELATIONSHIP TO SECOND NOTE (A) Second Note Because Borrower will be required to repay amounts which the Secretary may make to or on behalf of Borrower pursuant to Section 255(g)(1)(A) of the National Housing Act and the Loan Agreement, the Secretary has required Borrower to grant a Second Note to the Secretary. (B) Relationship of Secretary Payments to this Note Payments made by the Secretary shall not be included in the debt due under this Note unless: (i) This Note is assigned to the Secretary; or (ii) The Secretary accepts reimbursements by the Lender for all payments made by the Secretary. If the circumstances described in (i) or (ii) occur, then all payments by the Secretary, including interest on the payments, shall be included in the debt. (C) Effect on Borrower Where there is no assignment or reimbursement as described in (B)(i) or (ii), and the Secretary makes payments to Borrower, then Borrower shall not: (i) Be required to pay amounts owed under this Note until the Secretary has required payment in full of all outstanding principal and accrued interest under the Second Note held by the Secretary, notwithstanding anything to the contrary in Paragraph 7 of this Note, or (ii) Be obligated to pay interest or shared appreciation under this Note at any time, whether accrued before or after the payments by the Secretary, and whether or not accrued interest has been included in the principal balance of this Note, notwithstanding anything to the contrary in Paragraphs 2 or 5 of this Note or any Allonge to this Note. 12. SHARED APPRECIATION If Borrower has executed a Shared Appreciation Allonge, the covenants of the Allonge shall be incorporated into and supplement the covenants of this Note as if the Allonge were a part of this Note. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Note William O. Shaul (Seal) WILLIAM D. SHAUL - Borrower Gilda M. Shaul (Seal) GILDA M. SHAUL - Borrower PAY TO THE ORDER OF WITHOUT RECOEURSE FINANCIAL FREEDOM SENIOR FUNDING CORPORATION A SUBSIDIARY OF INDY MAC BANK, F.S.B. Blake Hurst Asst. Vice-President RECORD AND RETURN TO: FINANCIAL FREEDOM SENIOR FUNDING CORPORATION, A SUBSIDIARY OF INDYMAC BANK, F.S.B. 590 NORTH RIDGE ROAD STE. 500 ATLANTA, GEORGIA 30350 TREASURER'S ENDORSEMENT I hereby certify that I received $13,655. Mtg. tax, $500. Cert. fee and issued receipt No.48014 therefore in payment of mortgage tax on the within mortgage dated this 10th Day of April 2005 Mary Jane Law, County Treasurer By ________________________________ Deputy -2005-008896 Book 1896 Pg: 680 08/17/2005 9:21 am Pg 0650-0687 Fee: $27.00 Doc: $0.00 Carol Farmer - Delaware County Clerk State of Oklahoma [Space Above This Line For Recording Data] NOT AN OFFICIAL COPY ADJUSTABLE RATE HOME EQUITY CONVERSION MORTGAGE THIS MORTGAGE ("Security Instrument") is given on JUNE 02, 2005. The mortgagor is William D. English, 2420 S. 3RD STREET, OKLAHOMA CITY, OKLAHOMA 73109 ("Borrower"). whose address is 62993 E. 282 RD., GROVE, OKLAHOMA 74346 ("Borrower"). This Security Instrument is given to FINANCIAL FREEDOM SENIOR FUNDING CORPORATION, A SUBSIDIARY OF INDYMAC BANK, F.S.B., which is organized under the laws of THE STATE OF DELAWARE, and whose address is 590 NORTH RIDGE ROAD STE.500, ATLANTA, GEORGIA 30350 ("Lender"). Borrower has agreed to repay to Lender amounts which Lender is obligated to advance, including future advances, under the terms of a Home Equity Conversion Loan Agreement dated the same date as this Security Instrument ("Loan Agreement"). The agreement to repay is evidenced by Borrower's Note dated the same date as this Security Instrument ("Note"). This Security Instrument secures to Lender; (a) the repayment of the debt evidenced by the Note, with interest at a rate subject to adjustment, and all renewals, extensions and modifications of the Note, up to a maximum principal amount of TWO HUNDRED FIFTY EIGHT THOUSAND NINE HUNDRED FORTY EIGHT AND 00/100 (U.S. $258,948.00); (b) the payment of all other sums, with interest, advanced under Paragraph 5 to protect the security of this Security Instrument or otherwise due under the terms of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. The full debt, including amounts described in (a), (b), and (c) above, if not paid earlier, is due and payable on JUNE 02, 1990. For this purpose, Borrower does hereby mortgage, grant and convey to Lender, with power of sale, the following described property located in DELAWARE County, Oklahoma: VIEW ADDITIONAL LAND RECORDS AT OKCOUNTYRECORDS.COM EXHIBIT B Tract #11 A tract of land located in the NE 1/4 NE 1/4 of Section 32, Township 25 North, Range 24 East, Delaware County, Oklahoma, described as follows: Beginning at the NE corner of the said NE 1/4 NE 1/4; thence South 1188 feet; thence West 145.7 feet to the point of beginning; thence North 149.5 feet; thence West 145.7 feet; thence South 149.5 feet; thence East 145.7 feet to the point of beginning. which has the address of: 74344 Grove Rd., Grove, OK 74344 ("Property Address"); GROVE, OKLAHOMA 74344 ("City") ("State") ("Zip Code") TOGETHER WITH all the improvements now or hereafter covering the property, and all casements, rights, 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 seized of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT contains uniform provisions for national use and non-uniform covenants with limited variations by jurisdiction to regulate individual security instruments covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note. 2. Payment of Property Charges. Borrower shall pay all property charges consisting of taxes, ground rents, flood and hazard insurance premiums, and special assessments in a timely manner, and shall provide evidence of payment to Lender, unless Lender pays property charges by withholding funds from monthly payments due to the Borrower or by charging such payments to a line of credit as provided for in the Loan Agreement. 3. Fire, Flood and Other 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. This insurance shall be maintained in the amounts, to the extent and for the periods required by Lender or the Secretary of Housing and Urban Development ("Secretary"). Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any 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 loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss to Lender instead of to Borrower and to Lender jointly. Insurance proceeds shall be applied to restoration or repair of the damaged Property, if the restoration or repair is economically feasible and Lender's security is not released. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied first to the reduction of any indebtedness under a Second Note and Second Security Instrument held by the Secretary on the Property and then to the reduction of the indebtedness under the Note and this Security Instrument. 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. 4. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence after the execution of this Security Instrument, and Borrower (or at least one Borrower, if initially more than one person was Borrower) shall continue to occupy the Property as Borrower's principal residence for the term of the Security Instrument unless the residence(s) shall have the same meaning in the Loan Agreement. Borrower shall not abandon, waste or destroy damage or substantially alter the Property or allow the Property to deteriorate unreasonable wear and tear excepted. Borrower shall also be obligated if Borrower, during the loan application process gives knowingly false 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 as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires an interest in the Property, the mortgage or deed of trust will become merged, unless Lender agrees to the merger/forfeiting. 5. Expenses to be Paid and Borrower's Rights in the Property. Borrower shall pay all governmental or public utility charges, taxes and assessments that are properly charged in Paragraph 2. Borrower shall pay these charges out of income directly into the entity which is owed the revenue. If failure to so do would adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument in the manner provided in Paragraph 2(c). If Borrower fails to make required payment of the property charges required in Paragraph 2, or fails to perform any other covenants and agreements contained in this Security Instrument where is a legal proceeding that may significantly affect Lender's rights in the Property including, but not limited to an proceeding in bankruptcy, for condemnation or to enforce laws or regulations which Lender may defend and whatever is 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. To protect Lender's security in the Property, Lender shall advance and charge to Borrower all amounts due to the Secretary for the Mortgage Insurance Premium as defined in the Loan Agreement as well as all sums due to the loan servicer for servicing activities as defined in the Loan Agreement. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower as provided for in the Loan Agreement and shall be secured by this Security Instrument. 6. Inspection. Lender or its agent may enter on, inspect or make appraisals of the Property in a reasonable manner and at reasonable times provided that Lender shall give the Borrower notice prior to any inspection or appraisal specifying a purpose for the inspection or appraisal which must be related to Lender's interest in the Property. If the property is vacant or abandoned or the loan is in default, Lender may take reasonable action to protect and preserve such vacant or abandoned Property without notice to the Borrower. 7. 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 place of condemnation shall be paid to Lender. The proceeds shall be applied first to the reduction of any indebtedness under a Second Note and Second Security Instrument held by the Secretary on the Property, and then to the reduction of the indebtedness under the Note and this Security Instrument. Any excess 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. 8. Fees. Lender may collect fees and charges authorized by the Secretary. 9. Grounds for Acceleration of Debt. (a) Due and Payable. Lender may require immediate payment in full of all sums secured by this Security Instrument if: (i) A Borrower dies and the Property is not the principal residence of at least one surviving Borrower; or (ii) All of a Borrower's title in the Property (or his or her beneficial interest in a trust owning all or part of the Property) is sold or otherwise transferred and no other Borrower retains title to the Property in fee simple or retains a leasehold under a lease for less than 99 years which is renewable or a lease having a remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest Borrower or retains a life estate (or retaining a beneficial interest in a trust with such an interest in the Property). (b) Due and Payable with Secretary Approval. Lender may require immediate payment in full of all sums secured by this Security Instrument, upon approval of the Secretary, if: (i) The Property ceases to be the principal residence of a Borrower for reasons other than death and the Property is not the principal residence of another Borrower; or (ii) For a period of more than twelve (12) consecutive months Borrower fails to occupy the Property because of physical or mental illness and the Property is not the principal residence of at least one other Borrower; or (iii) An agreement by the Borrower under this Security Instrument is not performed. (c) Notice to Lender: Borrower shall notify Lender whenever any of the events listed in this Paragraph (a)(i) or (b) occur. (d) Notice to Secretary and Borrower. Lender shall notify the Secretary and Borrower whenever the loan becomes delinquent pursuant to Paragraph (a)(iii). Lender shall not have the right to commence foreclosure until Borrower has had thirty (30) days after notice to either: (i) Correct the matter which caused the Security Instrument to become due and payable; or (ii) Pay the balance in full; or (iii) Sell the Property for the lesser of the balance owed or 90% of the appraised value and apply the net proceeds of the sale toward the balance; or (iv) Provide the Lender with a deed in lieu of foreclosure. (e) Trusts. Conveyance of a Borrower's interest in the Property to a trust which meets the requirements of the Secretary, or conveyance of any such interest in the Property by a Borrower, shall not be considered a conveyance for purposes of this Paragraph 9. A nondisabled medical or custodial occupant shall not be considered as having a principal residence for purposes of this Paragraph 9. (f) Mortgage Not Insured. Borrower agrees that should this Security Instrument and the Note not be eligible for insurance under National Housing Act within SIXTY DAYS from the date hereof, if permitted by applicable law 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 Secretary dated subsequent to SIXTY DAYS from the date hereof, declining to insure this Security Instrument and the Note, shall be deemed conclusive proof of such inelegibility. 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 to the Secretary. 10. No Deficiency Judgments. Borrower shall have no personal liability for payment of the debt secured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be permitted to obtain a deficiency judgment against Borrower if the Security Instrument is foreclosed. If this Security Instrument is assigned to the Secretary upon demand by the Secretary, Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment. 11. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full. This right applies even after foreclosure proceedings are instituted. To reinstate this Security Instrument, Borrower shall correct the condition which resulted in the requirement for immediate payment in full. Foreclosure costs and reasonable and customary attorneys' fees and expenses properly associated with the foreclosure proceeding shall be added to the principal balance. Upon reinstatement by Borrower, this Security Instrument and the obligations that it secures shall remain in effect as if Lender had not required immediate payment in full. However, Lender is not required to permit reinstatement if: (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings within two years immediately preceding the commencement of a current foreclosure proceeding, (ii) reinstatement will preclude foreclosure on different grounds in the future, or (iii) reinstatement will adversely affect the priority of the Security Instrument. 12. Lien Status. (a) Modification. Borrower agrees to extend this Security Instrument in accordance with this Paragraph 12(a). If Lender determines that the original lien status of the Security Instrument is jeopardized under state law (including but not limited to situations where the amount secured by the Security Instrument equals or exceeds the maximum principal amount stated or the maximum period under which loan advances retain the same lien priority initially given when loan advances expired) and state law permits the original lien status to be maintained for such loan advances through the execution and recordation of one or more documents, then Lender shall obtain evidence at Borrower's expense. If outside evidence indicates that the Property is not encumbered by such liens (except this Security Instrument or the Second Security Instrument described in Paragraph 13(a)) and by all limitations that the Lender determines will also be applicable to any future loan advances), Lender shall request the Borrower to execute any documents necessary to protect the lien status of future loan advances. Borrower agrees to execute such documents. If state law does not permit the original lien status to be extended to future loan advances Borrower will be deemed to have failed to have performed its obligations under this Security Instrument. (b) Tax Deferred Programs. Borrower will not participate in a tax deferred program, if any lien created thereby is not subordinate and attached to this Security Instrument. (c) Borrower shall promptly discharge any lien which was recorded over this Security Instrument unless Borrower: (a) agrees in writing with Lender to extend the obligating agreement of 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 forfeiture of any part of the property; and/or secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien(s) or documents thereby creating such a lien. If Lender determines that any part of the Property is subject to a lien which is not junior prior to this Security Instrument, Lender may give Borrower notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 30 days of the giving of notice. 13. Relationship to Second Security Instrument. (a) Second Security Instrument. In order to secure payments which the Secretary may make to or on behalf of Borrower pursuant to Section 255(i)(1)(A) of the National Housing Act and the Loan Agreement, the Secretary has required Borrower to execute a Second Note and a Second Security Instrument on the Property. (b) Relationship of First and Second Security Instruments. Payments made by the Secretary shall not be included in the debt under the Note unless: (i) This Security Instrument is assigned to the Secretary; or (ii) The Secretary accepts reimbursement by the Lender for all payments made by the Secretary. If the circumstances described in (i) or (ii) occur, then all payments by the Secretary, including interest on the payments, but excluding late charges paid by the Secretary, shall be included in the debt under the Note. (c) Effect on Borrower. Where there is no assignment or reimbursement as described in (b)(i) or (ii) and the Secretary makes payments to Borrower, then Borrower shall not: (i) Be required to pay amounts owed under the Note, or pay any rents and revenues of the Property under Paragraph 19 to Lender or a receiver of the Property, until the Secretary has required payment in full of all outstanding principal and accrued interest under the Second Note; or (ii) Be obligated to pay interest or shared appreciation under the Note at any time, whether accrued before or after the payments by the Secretary, and whether or not accrued interest has been included in the principal balance under the Note. (8) No Duty of the Secretary. The Secretary has no duty to Lender to enforce covenants of the Second Security Instrument or to take actions to preserve the value of the Property, even though Lender may be unable to collect amounts owed under the Note because of restrictions in this Paragraph 13. 14. Forbearance by Lender Not a Waiver. 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. 15. Successors and Assigns Bound; Joint and Several Liability. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender. Borrower may not assign any rights or obligations under this Security Instrument or under the Note, except to a trust that meets the requirements of the Secretary. Borrower's covenants and agreements shall be joint and several. 16. Notices. Any notice 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 all Borrowers jointly designate. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any address Lender designates by notice to Borrower. Any notice provided for within this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided, sub to Paragraph 18. 17. General Legal Effect and Liability. This Security Instrument shall be governed by Federal law and the law of the jurisdiction in which the Property is located. In the event there is a conflict between the provisions of this Security Instrument or the note described herein, Federal law, such conflict item is not a breach nor violations of this Security Instrument or the note which can be given effect without the conflicting provision. To the end the provisions of this Security Instrument and the Note are declared to be severable. 18. Borrower's Copy. Borrower shall be given one conforming copy of the Note and this Security Instrument. NOTE: IMPORTANT COVENANTS: Borrower makes the following covenants and agrees as follows: 19. Assignment of Rents. In consideration for consideration by assignee and assignor, Lender shall lend the rents and revenues from the Property to Borrower. Borrower authorizes Lender and Lender's agents to collect such rents and revenues and hereby directs said rents of the Property to pay the secured obligations. Prior to Lender's notice to Borrower of Borrower's breach of any covenant or agreement in the Security Instrument, Borrower shall collect and receive all rents and revenues of the Property as trustee for the benefit of Lender and such assignments and constitutions are also assignments and notices assignment for additional security only. If Lender gives notice of breach to Borrower: (a) all rents received by borrower shall be held by Borrower as trustee for benefit of Lender only, to be applied to the debt evidenced by this Security Instrument; (b) Lender shall be entitled to collect and retain all the rents of the Property; and (c) each tenant of the Property shall pay all rents due and unpaid to Lender if lender's agent or lender written demands the tenant. Borrower has not executed any prior assignment of the rents and has not and will not perform any act that would prevent Lender from exercising its rights under this Paragraph 19. Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice of breach to Borrower. However, Lender or a judicially appointed receiver may do so at any time there is a breach. Any application of rents shall not cure or waive 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 this Security Instrument is paid in full. 20. 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 costs and expenses incurred in pursuing the remedies provided in this Paragraph 20, including, but not limited to, reasonable attorney's fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of sale to Borrower in the manner required by applicable law. Lender shall also publish the notice of sale, and the Property shall be sold as prescribed by applicable law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the manner prescribed by applicable law. 21. Lien Priority. The full amount secured by this Security Instrument shall have the same priority over any other liens on the Property as if the full amount had been disbursed on the date the initial disbursement was made, regardless of the actual date of any disbursement. The amount secured by this Security Instrument shall include all direct payments by Lender to Borrower and all other loan advances permitted by this Security Instrument for any purpose. This lien priority shall apply notwithstanding any State constitution, law or regulation, except that this lien priority shall not affect the priority of any bonds for unpaid State or local governmental unit special assessments or taxes. 22. Adjustable Rate Feature. Under the Note, the initial stated interest rate of 4.7000% which accrues on the unpaid principal balance ("Initial Interest Rate") is subject to change, as described below. When the interest rate changes, the new adjusted interest rate will be applied to the total outstanding principal balance. Each adjustment to the interest rate will be based upon the weekly average yield on United States Treasury Securities adjusted to a constant maturity of one month as made available by the Federal Reserve Board in Statistical Release H.15 (519) (the "Index"). If the index is not longer available, Lender will use as a new Index any index reasonably selected by the Security. Lender will give Borrower notice of the new Index. Lender will perform calculations described below to determine the new adjusted interest rate. The interest rate may change at the Change Date ("Adjustment Date", 2005 and every thirty days for each succeeding year [X] the first day of each succeeding year ("Change Date") until the loan is repaid in full. The value of the Index will be determined, using the most recent index figure available thirty (30) days before the Change Date ("Current Index"). Before each Change Date, the new interest rate will be calculated by adding a margin to the Current Index. Interest rates adjusted through the Current Index will be called the "Calculated Interest Rate" for each Change Date. The Calculated Interest Rate will be compared to the interest rate in effect immediately prior to the Change Date ("Existing Interest Rate"). [X] (Monthly Adjusting Variable Rate Feature) Calculated interest rates may not be more than 2.0% higher or lower than the Existing Interest Rate, nor can any rate be more than 5.0% higher than the Initial Interest Rate. (X) (Monthly Adjusting Variable Rate Feature) The Calculated Interest Rate will never increase above FOURTEEN AND 780/1000 PERCENT (14.7800%). The Calculated Interest Rate will automatically adjust to comply with these rate limit(s) and will be in effect until the next Change Date. At any Change Date if the Calculated Interest Rate equals the Existing Interest Rate, the interest rate will not change. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument without charge to Borrower unless otherwise provided herein. 24. Waiver of Appraisement. Appraisement 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; 25. Assumption Fee. If there is an assumption of this loan, Lender may charge an assumption fee of U.S. $ N/A 26. Obligatory Loan Advances. Lender's responsibility to make Loan Advances under the terms of the Loan Agreement, including Loan Advances of principal to Borrower, as well as Loan Advances for interest, MIP, Servicing Fees and other charges, is obligatory. 27. 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 [ ] Shared Appreciation Rider [ ] Planned Unit Development 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 notice or even a foreclosure action upon default by Borrower under this Security Instrument. BY SIGNING HERE, I ACKNOWLEDGE my agreement to the terms contained within this Security Instrument and in any rider(s) executed by Borrower and recorded with it. William D. Shaul William D. Shaul William D. Shaul STATE OF Oklahoma COUNTY: Delaware Before me, a notary public in and for this state, on this 8 day of June, 2005 personally appeared William D. Shaul and Zelda M. Shaul, husband and wife, to me known to be the identical person(s) who executed the within and foregoing instrument, and acknowledged to me that they executed the same as their free and voluntary act and deed for the uses and purposes therein set forth. My commission expires: William D. Shaul Notary Public VIEW ADDITIONAL LAND RECORDS AT OKCOUNTYRECORDS.COM EXHIBIT B NOT AN OFFICIAL COPY ASSIGNMENT OF MORTGAGE Min Fax Phone FHA Case #: ____________ FOR VALUE RECEIVED, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., AS MORTGAGEE, whose address is P.O. Box 2026, Flint, MI 48501-2026, AS NOMINEE FOR FINANCIAL FREEDOM ACQUISITION LLC, ITS SUCCESSORS AND ASSIGNS, does hereby assign and transfer to BANK OF NEW YORK MELLON TRUST COMPANY, N.A. AS TRUSTEE FOR MORTGAGE ASSETS MANAGEMENT SERIES I TRUST, ITS SUCCESSORS AND ASSIGNS, forever and without recourse, whose address is 1875 Connecticut Avenue NW – 10th Floor, Washington, DC 20009, all its right, title and interest in and to a certain Mortgage from WILLIAM D. SHAUL AND ZELDA M SHAUL, HUSBAND AND WIFE to FINANCIAL FREEDOM SENIOR FUNDING CORPORATION, A SUBSIDIARY OF INDYMAC BANK, F.S.B. for $258,948.00, dated 6/8/2005 of record on 6/17/2005 in Book 1666 Page 680 as Document 2005-006895, in the DELAWARE County Clerk's Office, State of OKLAHOMA. Property Address: 62993 E. 282 Rd., Grove, OKLAHOMA 74344 Legal description: Tract #11 A tract of land located in the NE 1/4 NE 1/4 of Section 32, Township 25 North, Range 24 East, Delaware County, Oklahoma, described as follows: Beginning at the NR corner of the said NE 1/4 NE 1/4; thence South 1188 feet; thence West 145.7 feet to the point of beginning; thence North 149.5 feet; thence West 145.7 feet; thence South 149.5 feet; thence East 145.7 feet to the point of beginning. VIEW ADDITIONAL LAND RECORDS AT OKCOUNTYRECORDS.COM EXHIBIT C I-2019-008597 Book: 2299 Pg: 0234 10/28/2019 01:54 PM Pg 0233-0234 Fee: $15.00 Doc: $0.00 Barbara Barnes - Delaware County Clerk State of Oklahoma Executed this OCT 0 2 2019. MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., AS MORTGAGEE AS NOMINEE FOR FINANCIAL FREEDOM ACQUISITION LLC, ITS SUCCESSORS AND ASSIGNS By: ________________________ JENNIFER WHITE Title: ASSISTANT SECRETARY STATE OF TEXAS COUNTY OF TRAVIS Before me, the undersigned officer, on this day personally appeared ____________________________, the ASSISTANT SECRETARY of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., AS MORTGAGEE AS NOMINEE FOR FINANCIAL FREEDOM ACQUISITION LLC, ITS SUCCESSORS AND ASSIGNS known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledges to me that he/she executed the same for the purposes and consideration therein expressed. Given under my hand and seal this ___19___ day of ___OCT___ 2019. ______________________________ Notary Public in and for the State of TEXAS Notary's Printed Name: Jorge L. Solis My Commission Expires: NOV 1 O 2021 Mortgage for $258,948.00 dated 6/8/2005 JORGE L SOLIS Notary ID #13134852. My Commission Expires November 10, 2021 VIEW ADDITIONAL LAND RECORDS AT OKCOUNTYRECORDS.COM EXHIBIT C NOT AN OFFICIAL COPY RECORD AND RETURN TO: FINANCIAL FREEDOM SENIOR FUNDING CORPORATION, A SUBSIDIARY OF INDY MAC BANK, F.S.B. 500 NORTH RIDGE ROAD STE. 500 ATLANTA, GEORGIA 30350 TREASURER'S ENDORSEMENT I hereby certify that I received $__________ Mtg. tax, $_______. Cart. fee and issued receipt No. _______ therefore in payment of mortgage tax on the within mortgage dated this _____ day of _____ 20____ Mary Jane Law, County Treasurer By ___Blilcha____ Deputy [Space Above This Line For Recording Date] State of Oklahoma NOT AN OFFICIAL COPY ADJUSTABLE RATE HOME EQUITY CONVERSION SECOND MORTGAGE THIS MORTGAGE ("Security Instrument" or "Second Security Instrument") is given on JUNE 12, 2090 by WHITTY D. SHAW, and BELLA M SEIDEL, borrowers, whose address is 62993 R. RD RD - GROVE, OKLAHOMA. This Security Instrument secures to the Secretary of Housing and Urban Development, whose address is 451 Seventh Street, S.W., Washington, DC 20410 (hereinafter referred to as the "Secretary"), a secured, agreed repayment to Lender amounts which Lender is obligated to advance upon such instrument unless, under the terms of a Home Equity Conversion Loan Agreement dated the same date as this Security Instrument ("Loan Agreement"). The agreement to repay is evidenced by Borrower's Note dated the same date as this Security Instrument ("Second Note"). This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Second Note, with interest, at a rate subject to adjustment, and all renewals, extensions and modifications of the Note, up to a maximum principal amount of TWO HUNDRED FIFTY EIGHT THOUSAND NINE HUNDRED FORTY EIGHT AND 00/100 (U.S. $ 258,948.00 ) (b) the payment of all other sums, with interest, advanced under Paragraph 5 to protect the security of this Security Instrument or otherwise due under the terms of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Second Note. The full debt, including amounts described in (a), (b), and (c) above, if not paid earlier, is due and payable on JUNE 02, 2090 . For this purpose, Borrower does hereby mortgage, grant and convey to Lender, with power of sale, the following described property located in DELAWARE County, Oklahoma: VIEW ADDITIONAL LAND RECORDS AT OKCOUNTYRECORDS.COM EXHIBIT E NOT AN OFFICIAL COPY security is not leased. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied first to the reduction of any indebtedness under the Second Note and this Security Instrument. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Second 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. 4. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence after the execution of this Security Instrument, and Borrower (or at least one Borrower, if initially more than one person are Borrowers) shall continue to occupy the Property as Borrower's principal residence for the term of the Security Instrument unless Borrower shall have the same occupancy as the Loan Agreement. Borrower shall not commit waste or destroy, damage or substantially change the property or allow the Property to deteriorate, except正常 wear and tear excepted. Borrower will also have a duty to notify Lender, during the loan application process and thereafter in a reasonable interval or at Lender's request. Lender (or failed to provide Lender with any representation information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires for sale into the Property a leasehold fee title, or during renewal under agreement to the merger as written. 5. Charges to Borrower and Protection of Borrower's Rights Under Paragraphs. Borrower shall pay all governmental or municipal charges, fees and assessments that are not included otherwise. Borrower shall pay these obligations as soon as directed by the entity which makes 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. Borrower shall promptly discharge any lien which has priority over this Security Instrument in the manner provided in Paragraph 12(e). If Borrower fails to make the covenants and agreements expressed in Paragraph 2, or fails to perform any other covenants and agreements contained in this Security Instrument, which is a legal proceeding that may significantly affect Lender's rights in the property (such as, but not limited to bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do any and whatever is 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. To protect Lender's security in the Property, Lender shall advance and charge to Borrower all amounts due to the Secretary for the Mortgage Insurance Premium as defined in the Loan Agreement as well as all sums due to the loan servicer for servicing activities as defined in the Loan Agreement. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower as provided for in the Loan Agreement and shall be secured by this Security Instrument. 6. Inspection. Lender or its agent may enter on, inspect or make appraisals of the Property in a reasonable manner and at reasonable times provided that Lender shall give the Borrower notice prior to any inspection or appraisal specifying a purpose for the inspection or appraisal which must be related to Lender's interest in the Property. If the property is vacant or abandoned or the loan is in default, Lender may take reasonable action to protect and preserve such vacant or abandoned Property without notice to the Borrower. 7. 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 place of condemnation shall be paid to Lender. The proceeds shall be applied first to the reduction of any indebtedness under a Second Note and this Security Instrument. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Second Note and this Security Instrument shall be paid to the entity legally entitled thereto. 8. Fees. Lender may collect fees and charges authorized by the Secretary for the Home Equity Conversion Mortgage Insurance Program. 9. Grounds for Acceleration of Debt. (a) Due and Payable. Lender may require immediate payment in full of all sums secured by this Security Instrument if: (i) A Borrower dies and the Property is not the principal residence of at least one surviving Borrower; or (ii) All of a Borrower's title in the Property (or his or her beneficial interest in a trust owning all or part of the Property) is sold or otherwise transferred and no other Borrower remains title to the Property in fee simple or retains a leasehold under a lease for less than 99 years which is renewable or a lease having a remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest Borrower or retains a life estate (or retaining a beneficial interest in a trust with such an interest in the Property); or (iii) The Property ceases to be the principal residence of a Borrower for reasons other than death and the Property is not the principal residence of at least one other Borrower; or (iv) For periods of not less than twelve (12) consecutive months, Borrowers fail to occupy the Property because of physical or mental illness and the Property is not the principal residence of at least one other Borrower; or (v) As of the date the Borrower under this Security Instrument is not performing. (b) Notice to Lender. Borrower shall notify Lender whenever any of the events listed in Paragraph 9(a)(i)-(v) occur. (c) Negotiation of Foreclosure. Whenever Borrower or any co-Borrower's loan becomes demand payable under Paragraph 9(a)(ii)-(v), Lender shall not have the right to assume the foreclosure unless Borrower has had thirty (30) days' notice prior to expiration of such notice period. (d) Correct themself. which resulted in the Security Instrument can cause immediately for: (i) Every, that balance in full; or (ii) Secure Property for the lesser of the balance or 95% of the appraised value and apply the net proceeds of the sale toward the balance; or (iii) Provide the Lender with a deed in lieu of foreclosure. (e) Trusts. Conveyance of Borrower's interest in the Property or trust which meets the requirements of the Secretary, or conveyance of a trust interest in the Property to a Borrower, shall not be considered a conveyance for purposes of this Paragraph 9. A trust subject to conveyance as occupant or be considered as having a principal residence for purposes of Paragraph 9. 10. No Deficiency Judgment. Borrowers will have no personal liability for payment of the debt secured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be permitted to obtain a deficiency judgment against Borrower if the Security Instrument is foreclosed. 11. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment in full. This right applies even after foreclosure proceedings are instituted. To reinstate this Security Instrument, Borrower shall correct the condition which resulted in the requirement for immediate payment in full. Foreclosure costs and reasonable and customary attorneys' fees and expenses properly associated with the foreclosure proceeding shall be added to the principal balance. Upon reinstatement by Borrower, this Security Instrument and the obligations that it secures shall remain in effect as if Lender had not required immediate payment in full. However, Lender is not required to permit reinstatement if: (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings within two years immediately preceding the commencement of a current foreclosure proceeding, (ii) reinstatement will preclude foreclosure on different grounds in the future, or (iii) reinstatement will adversely affect the priority of the Security Instrument. 12. Lien Status. (a) Modifications. Borrower agrees to extend this Security Instrument in accordance with this Paragraph 12(s). If Lender determines that the original lien status of the Security Instrument is jeopardized under state law (including but not limited to situations where the amount secured by the Security Instrument equals or exceeds the maximum principal amount stated or the maximum period under which loan advances retain the same lien priority initially granted to loan advances has expired) and state law permits the original lien status to be maintained for future loan advances through the execution and recordation of one or more documents, then Lender shall obtain title evidence at Borrower's expense. If the title evidence indicates that the Property is not encumbered by any liens (except the First Security Instrument described in Paragraph 13(a)), this Second Security Instrument and any subordinate liens that the Lender determines will also be subordinate to any future loan advances), Lender shall request the Borrower to execute any documents necessary to protect the lien status of future loan advances. Borrower agrees to execute such documents; if state law does not permit the original lien status to be maintained on future loan advances, Borrower will be deemed to have failed to have performed its obligations under this Security Instrument. (b) Tax liens and judgments. Borrower shall not participate in, and shall not be a federal program, if any liens created by these documents are not subordinate to this Security Instrument. (c) Priority. Borrower will 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 through proceedings commenced by a government or court action; (c) prevents enforcement of the lien or foreclosure of a part of the Property; or (d) acquires from the holder of the First Note agreements satisfactory to Lender subordinate status on an agreement made by this Security Instrument. If Lender determines that a part of the property is subject to a lien, priority attained by, overwriting the First Note Instrument, Lender may send Borrower notice identifying the lien. Borrower shall notify the Secretary of any of the actions set forth above within 10 days of the giving of notice. 13. Relationship to First Security Instrument. (a) Second Security Instrument. In order to secure payments which the Secretary may make to or on behalf of Borrower pursuant to section 8507(a)(4) of the Federal Deposit Insurance Act and the Loan Agreement, the Secretary has retained Borrower's existing assignment note and has executed this Second Security Instrument. Borrower also has executed a First Note and First Note Instrument. (b) Relationship of First and Second Security Instruments. Payments made by the Secretary shall not be included in the debt under the First Note. (i) The First Security Instrument is assigned to the Secretary; or (ii) The Secretary accepts reimbursement by the holder of the First Note for all payments made by the Secretary. If the circumstances described in (i) or (ii) occur, then all payments by the Secretary, including interest on the payments, but excluding late charges paid by the Secretary, shall be included in the debt under the First Note. (c) Effect on Borrower. Where there is no assignment or reimbursement as described in (b)(i) or (ii) and the Secretary makes payments to Borrower, then Borrower shall not: (i) Be required to pay amounts owed under the First Note, or pay any rents and revenues of the Property under Paragraph 19 to the holder of the First Note or a receiver of the Property, until the Secretary has required payment in full of all outstanding principal and accrued interest under the Second Note; or (ii) Be obligated to pay interest or shared appreciation under the First Note at any time, whether accrued before or after the payments by the Secretary, and whether or not accrued interest has been included in the principal balance under the First Note. (d) No Duty of the Secretary. The Secretary has no duty to the holder of the First Note to enforce covenants of the Second Security Instrument or to take actions to preserve the value of the Property, even though the holder of the First Note may be unable to collect amounts owed under the First Note because of restrictions in this Paragraph 13. (e) Restrictions on Enforcement. Notwithstanding anything else in this Security Instrument, the Borrower shall not be obligated to comply with the covenants hereof, and Paragraph 19 shall have no force and effect, whenever there is no outstanding balance under the Second Note. 14. Forbearance by Lender Not a Waiver. 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. 15. Successors and Assigns Bound; Joint and Several Liability. Borrower may not assign any rights or obligations under this Security Instrument or the Second Note, except to a trust that meets the requirements of the Secretary. Borrower's covenants and agreements shall be joint and several. 16. Notices. Any notice 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 all Borrowers jointly designate. Any notice to the Secretary shall be given by first class mail to the HUD Field Office with jurisdiction over the Property or any other address designated by the Secretary. All notices provided for in this Security Instrument shall be deemed to have been given to Borrower when given or provided. 17. Governmental Liability. This Security Instrument shall be governed by federal law and the law of the jurisdiction where the Property is located. In the event of a determination in a case involving this Security Instrument or the Second Note contrary to applicable law, such conflicts will not affect either provisions of this Security Instrument or the Second Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Second Note are declared to be severable. 18. Borrower's Consent. Borrower hereby gives one unexecuted copy of the Second Note and this Security Instrument to [Lender]. [UNIFORM CLOSING STATEMENTS] and each other covenant assigned as follows: 19. Assignment of rents. Borrower unconditionally assigns and transfers to Lender all the rents and revenues of the Property, Borrower authorizes Lender to appoint agents to collect by process of law, revenues and hereby directs each tenant of the Property to pay the rent to Lender or Lender's agents. However, prior to Lender's notice to Borrower of Borrower's breach of any covenant or agreement in the Security Instrument, Borrower shall collect and receive all rents and revenues of the Property as trustee for the benefit of Lender and Borrower. This assignment of rents does not create a mortgage or deed of trust and is an assignment for additional security only. If Lender gives notice of breach to Borrower: (a) the rents collected by Borrower shall be held by Borrower as trustee for benefit of Lender only, until applied to the amount secured by this Security Instrument; (b) Lender shall be entitled to collect and receive from the respective Property; and (c) each tenant of the Property shall pay all rents due and unpaid to Lender or Lender's agent on Lender's written demand to the tenant. Borrower has not executed any prior assignment of the rents and has not and will not perform any act that would prevent Lender from exercising its rights under this Paragraph 19, except as provided in the First Security Instrument. Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice of breach to Borrower. However, Lender or a judicially appointed receiver may do so at any time there is a breach. Any application of rents shall not cure or waive 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 this Security Instrument is paid in full. 20. 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 costs and expenses incurred in pursuing the remedies provided in this Paragraph 19, including, but not limited to, reasonable attorney's fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of sale to Borrower in the manner required by applicable law. Lender shall also publish the notice of sale, and the Property shall be sold as prescribed by applicable law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the manner prescribed by applicable law. 21. Lien Priority. The full amount secured by this Security Instrument shall have a lien priority subordinate only to the full amount secured by the First Security Instrument. 22. Adjustable Rate Feature. Under the Note, the initial stated interest rate of 4.7800 % which accrues on the unpaid principal balance ("Initial Interest Rate") is subject to change, as described below. When the interest rate changes, the new adjusted interest rate will be applied to the total outstanding principal balance. Each adjustment to the interest rate will be based upon the weekly average yield on United States Treasury Securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board in Statistical Release H.15 (519) ("Index") plus a margin. If the index is no longer available, Lender will use as a new Index any index prescribed by the Secretary. Lender will give Borrower notice of the new Index. Lender will perform the calculations described below to determine the new adjusted interest rate. The interest rate may change on the first day of SEPTEMBER, 2005 , and on that day of each succeeding year the first day of each succeeding month ("Change Date") until the loan is repaid in full. The value of the Index will be determined, using the most recent widely recognized daily (30) days before the Change Date (the "release date"). Before each Change Date, the new interest rate will be calculated by adding a margin to the Current Index. The sum of the margin plus the Current Index will be the "Calculated Interest Rate" for each Change Date. The Calculated Interest Rate will be compared to the interest rate in effect immediately prior to the current Change Date (the "Existing Interest Rate"). ☐ (Annually Adjusting Variable Rate Feature) The Calculated Interest Rate cannot be more than 2.0% higher or lower than the Existing Interest Rate, nor can it be more than 5.0% higher or lower than the Initial Interest Rate. ☐ (Monthly Adjusting Variable Rate Feature) The Calculated Interest Rate will never increase above FOURTEEN AND NO/100 DOLLARS. The Calculated Interest Rate will be adjusted accordingly to comply with the above conditions(s) and will be in effect until the next Change Date. After Change Date, the Calculated Interest Rate will be recalculated using Interest Rate, the interest rate will not change. 23. 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 recodification costs unless applicable law provides otherwise. 24. Waiver of Appraisement. Appraisement of the property will not be waived at Lender’s option, which shall be executed before or at the time judgments are taken in any foreclosure. 25. Assumption Fee. Where a loan is assigned to a new owner, Lender may charge an assumption fee of U.S. $ N/A 26. Obligatory Loan Advances. Lender’s responsibility to make Loan Advances under the terms of the Loan Agreement, including Loan Advances of principal to Borrower, as well as Loan Advances for interest, MIP, Servicing Fees and other charges, is obligatory. 27. 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 [ ] Shared Appreciation Rider [ ] Planned Unit Development 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 HEREON, Borrower accepts and agrees to the terms contained in this Security Instrument and in any rider(s) executed by Borrower and recorded herein. William D. Shaul (SEAL) Zelda M. Shaul (SEAL) STATE OF Oklahoma COUNTY: SS Before me, a notary public in and for this state, on this 8 day of June, 2005 personally appeared William D. Shaul and Zelda M. Shaul, husband and wife to me known to be the identical person(s) who executed the within and foregoing instrument, and acknowledged to me that they executed the same as free and voluntary act and deed for the uses and purposes therein set forth. My commission expires: Notary Public