IN THE CIRCUIT COURT OF THE PIGHTEENTH JUDICIAL CIRCUIT IN AND FOR BREVARD COUNTY, FLORIDA GENERAL JURISDICTION DIVISION CASE NO. 2014CA034487 REVERSE MORTGAGE SOLUTIONS, INC,, Plaintifi, vs, UNKNOWN AND KNOWN HEIRS, DEVISEES, GRANTEES, ASSIGNEES, LIENORS, CREDITORS, TRUSTEES, AND OTHER UNKNOWN PERSONS OR, UNKNOWN SPOU! CLAIMING BY, THROUGH, UNDER OR AGAINST MARY E, KEATING, et. al Defendant. PLAINTIFF'S MEMORANDUM OF LAW IN SUPPORT OF FINAL JUDGMENT ORIN ‘THE ALTERNTIVE PLAINTIFFS MOTION TO RE-OPEN ITS CASE IN CHIEF TO PROVIDE ADDITIONAL EVIDENCE, Plaintiff REVERSE MORTGAGE SOLUTONS, INC, (hereinafter “RMS") by and through undersigned counsel, hereby files its Memorandum of Law in Support of Final Judgment in favor of Plaintiff and establishing the priority of Plaintiff's claim on the property as first mortgagee, or in the alternative to allow Plaintiff to re-open case to present additional evidence and in supports states as follows: BACKGROUND 1. This action involves a Home Equity Conversion Mortgage and Note (commonly referred to as “reverse mortgage”) executed and deliv. ed by MARY E. KEATING (hereinafter WILE IOAN AM 15-030459 - EvR“Borrower") on April 24, 2003. The same was recorded in the Public Records of Brevard County, Florida. 2. On March 4, 2010, the Note and Mortgage became due and payable due to the death of the Borrower, pursuant to paragraph 9(a)(i) of the mortgage. 3, Defendant PALM COLONY CLUB CONDOMINIUM ASSOCIATION, INC was named ‘a party defendant as to a potential Claim of Lien under 718.116, The mortgage being foreclosed on is a first purchase money mortgage which was recorded after April 1, 1992 pursuant to 718.116 and Plaintiff's lien is superior to any interest to any condominium assessment except those not to exceed six months unpaid assessments or 1% of the original principal balance of the mortgage, whichever is less. 4. On August 17, 2015, this Court held a trial on the issues, wherein the Court reserved ruling as to the issues of superiority regarding Plaintiffs status as a first mortgage. ARGUMENT 5, As previously stated, this matter involves a Home Equity Conversion Mortgage (HECM or reverse mortgage). 6, HECM loans were created by the United States Government to provide additional ineome to seniors over the age of sixty-two (62). 7. Since HECM loans were a creation of the Federal Government, they are appropriately governed under the United States Code of Federal Regulations. 8. Title 24 of the United States Code of Federal Regulations entitled “Housing and Urban Development” is the governing authority to Home Equity Conversion Mortgages, specifically, part 206, 15-030459 - EVR,9. Code of Federal Regulation 24 CFR 206 is entitled “Home Equity Conversion Mortgage Insurance.” This specific section speaks to all requirements the United States places on HECM or reverse mortgages. 10, In 24 CER. 206.3, the regulations specifically define a “mortgage” (meaning a HECM) as “a first lien on real estate under the laws of the jurisdiction where the real estate is located.” 24 C.P.R. 206.3. As a matter of preemption, the United States, through its regulations, as clearly established at the outset of part 206 that it is understood that all mortgages that are HECM take first priority lien. J wee hres be Ledorn | 11. Secondly, 24 C.F.R. 206.8 entitled “Preemption” states in pertinent part the following: 7456 1g,. ee §206.8 Preemption. Bre ee Se (@) Lien priority, The full amount secured by the [Home Equity Conversion} 4, 7 [Mforigage shall have the same priority over any other liens on the property as. 2°99 & a CERI GROUAT Ha beer aIsbUsed on the date the initial disbursement was Ser cy tnade, cegurdese ofthe achal dete of any disbursement: The amount secured by “7p the mortgage shall include all direct payments by the mortgagee to the mortgagor 4, and all other loan advances permitted by the mortgage for any purpose including, oan advances for interest, taxes and special assessments, premiums for hazard or 7” * ‘mortgage insurance, servicing charges and costs of collection, regardless of when the payments or loan advances were made. The priority provided by this section shall apply notwithstanding any State constitution, law or regulation, {b) Second mortgage. Ifthe Secretary holds a second mortgage, it shall have a priority subordinate only to the first mortgage (and any senior liens permitted by paragraph (a) of this section). (emphasis added) 12, Here, the passage of the Federal Regulation places the parties on notice of the priority of above all other encumbrances on the property. The regulation a HECM loan and place: is clear in its meaning which establishes the lien priority of a HECM over any other liens, including those such as the ones claimed by Defendant, to wit: association assessments. 13, At trial, Plaintiff introduced the Note and Mortgage into evidence, Both documents clearly evidence as documents for a HECM loan which would fall under 24 C.F.R. 206. A. 15-030459 - EvR & Sofa ey Ls, Tie wegtrue and correct copy of the Note and Mortgage (HECM documents) are attached hereto and marked as composite exhibit “A” 14, By presenting as evidence the note and mortgage, the documents in and of themselves taken with the Federal Regulations clearly establish the Plaintiff mortgage as a first mortgage. Asa result, the burden shifts to the Defendant present evidence to the contrary. 15, Additionally, this Court should take judicial notice of the Federal Regulations pursuant to Fla, Stat, 90.202 and 90.203. 16. In the alternative, if the Court is inclined to hold that Plaintiff has not met its burden, Plaintiff requests that the Court allow Plaintiff to re-open its case in chief to present additional evidence to support its argument that Plaintiff has priority and is a first mortgage on the property in question. 17. Because this is a Court of equity, Plaintiff requests the court consider the equitability of allowing Plaintiff to provide additional testimony and evidence. 18, As stated in Defendant's Memorandum “[tJhe Bank could attempt to prove its priority by submitting a title search, if a proper predicate is laid for its admissibility.” Defendants Memorandum goes on to state additional avenues that the Plaintiff could take, and Plaintiff would like the opportunity to present such additional evidence in order to allow the court to enter judgment based upon all available evidence, WHEREFORE, Plaintiff REVERSE MORTGAGE SOLUTIONS, INC. hereby requests this Honorable Court grant judgment in favor of the Plaintiff, or in the alternative, allow Plaintiff to reopen its case in chief and present additional evidence and testimony to satisfy the Court, and any and other relief the Court deems necessary and just. 15-030459 - EvRCERTIFICATE OF SERVICE 1HEREBY CERTIFY that a true and correet copy of the foregoing was mailed on this day of. heyy vo 2015, to the attached service list. ROBERTSON, ANSCHUTZ & SCHNEID, PLL. Attorney for Plaintiff 6409 Congress Ave., Suite 100 Boca Raton, FL 33487 ‘Telephone: 561-241-6901 Facsimile: 561-997-6909 Service Email: mail@ras! com By: ‘Evan Rosenber, Florida Bar No. Communication Email: erosenberg@rasflaw.com 15-030459 - EvRSERVICE LIST MINERVA SIMPSON, FSQ. MINERVA SIMPSON, ESQ. ATTORNEY FOR UNKNOWN AND KNOWN HEIRS, DEVISEES, GRANTEES, ASSIGNEES, LIENORS, CREDITORS, TRUSTEES, AND OTHER UNKNOWN PERSONS OR UNKNOWN SPOUSES CLAIMING BY, THROUGH, UNDER OR AGAINST MARY E. KEATING 208 HARDEE LANE ROCKLEDGE, FL 32955-2122 PRIMARY EMAIL: MSIMPSONATTORNEY@CFL.RR.COM SECRETARY OF HOUSING AND URBAN DEVELOPMENT C/O US ATTORNEYS OFFICE FOR THE MIDDLE DISTRICT OF FLORIDA 400 N. TAMPA STREET, SUITE 3200 TAMPA, FL 33602 PRIMARY EMAIL: USAFLM.STATE.FORECLOSURES@USDOJ.GOV. WATSON SOILEAU JOHN L SOILEAU, ESQ. ATTORNEY FOR PALM COLONY CLUB CONDOMINIUM ASSOCIATION, INC. 3490 N US HIGHWAY ! COCOA, FL 32926 PRIMARY EMAIL: JSOILEAU@BREVARDLAWGROUP.COM EO BURGETT PICKLES & BAUGHAN, PA STATE OF FLORIDA, DEPARTMENT OF REVENUE 2450 SHUMARD OAK 8LVD TALLAHASSEE, FL 3399) UNITED STATES OF AMERICA, DEPARTMENT OF TREASURY - INTERNAL REVENUE SERVICE C/O US ATTORNEYS OFFICE FOR THE MIDDLE DISTRICT OF FLORIDA 400 N. TAMPA STREET, SUITE 3200 TAMPA, FL 33602 PRIMARY EMAIL: USAFI.M.STATE.FORECLOSURES@USDOJ.GOV DANIEL KEATING 33 WIITEWOOD ROA‘ NEWTOWN, CT 064701 UNKNOWN SPOUSE (1 DANIEL KEATING 33 WHITEWOOD ROAD NEWTOWN, CT 06470 TIMOTHY KEATING 1706N. DIXIE HWY APT SN FORT LAUDERDAL(:, L 33305 15-030459 - EvRUNKNOWN SPOUSE: (:? TIMOTHY KEATING 1706 N. DIXIE HWY APT SN FORT LAUDERDALE, 'L 33305 KERRY FERGUSON 1 BETHEL STREET, Ail 2 NORWALK, CT 0685. 7 KERRY FERGUSON 2 1 BETHEL STR! NORWALK, CT 0685 15-030459 - EVRDAABACKS] ADJUSTABLE RATE NOTE r (HOME EQUITY CONVERSION) ~apiti. 24, 2003, PROPERTY ADDRESS FHA Case Number: 094-4788381-958 LOAN NO: 1000638 2700 NORTH HIGHWAY A1A #4-201 INDIALANTIC, FLORIDA 32903 BREVARD COUNTY 1. DEFINITIONS “Borrower” means each person signing at the end of this Note. "Lender” means Seattle Mortgage Company 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 APRIL 24, 2003 (‘Loan Agreement’), Borrower promises 10 pay to the order of Lender f principal amount equal to the sum of all Loan Advances made under the Loan Agreement with interest. AH amounts advanced by Lender, plus interest, if not paid earlier, are due and payable on SEPTEMBER 27, 2083, Interest will be ‘charged on unpaid principal at the rate of TWO AND EIGHTY-THREE HUNDREDTHS percent (2.830%) 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 fas this Note and called the "Security Instrument.” ‘The 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 oulstanding 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 190 Queen Anne Avenue North, Suite $00, Seattle, Washington 98109 or any such other place as Lender may designate in writing by notice to Borrower, (©) Limitation of Liability Borrower shall have no personal liability for payment of the debt. Lender shall enforce the debt only through sale of the Propesty covered by the Security Instrument ("Peoperty"). 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 acerued interest, owed by Borrower at the time of assignment, 5, INTEREST RATE CHANGES (A) Change Date The interest rate may change on the first day of JULY, 2003 and on that day of each succeeding month. Change Date means ‘each date on which the interest rate could change. (B) The Index Beginning withthe 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 [ndex” 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(sLimits on Interest Rate Changes "Th inetest rate will never increase above TWELVE AND EIGHTY-THREE HUNDREDTHS PERCENT (12.83%) (£) 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 ew interest rate takes effect, andl must set forth (i) the date of the notice, (ji) the Change Date, (ii) the old interest rate, (Gv) 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 requited by law from time to time, (8) Effective Date of Changes ‘A new interest rte caloulated 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 $(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 receiving monthly payments under the Loan Agreement lias the right to pay the debt evidenced by this Note, ‘n 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 {1 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: i, to that portion of the principal balance representing aggregate payments for morigage insurance premiums; ‘Second, to that portion ofthe principal balance representing aggregate payments for servicing fees; “This, to that porion ofthe principal balance representing acoued 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 created to that portion ofthe principal balance representing monthly payments or the line of credit, If Borrower does not designate which portion of the principal balance is fo be prepaid, Lender shall apply any partial prepayments to an existing ine 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 () A Borrower dies and the Property is not the principal residence of at least one surviving Borrower, or Gi) All of a Borrower's title inthe 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 Borrawer retains (a) title to the Property in fee simple (b) a leasehold under a lease for les than 99 years which is renewable or a lease having a remaining period of not less than $0 years beyond the date of the 100th birthday of the youngest Borrower (or retaining a beneficial interest in a trust with such an interest in the Property), oF (¢) a life estate in the Property (B) Other Grounds Lender may require immediate payment in full of all outst ‘authorized representative of the Secretary, if \ding prinejpal and accrued interest, upon approval by an (The Propery ceases to be the principal residence of a Borrower for reasons other than death and the Property is not the principal residence of a least one other Borrower, (i) For a petiod of longer than twelve (12) consocutive months, a Borrower fails to physically occupy the Property because of physical or mental illness and the Property is not the principal residence of atleast one other Borrower, or (iil) An obligation of the Borrower under the Security Instrument is not performed,D) Trusts ‘Conyefance of a Borrower's interest in the Propet 10 a trust which mets the requirements ofthe Secretary, oF conveyance of ainis’s interest in the Property to a Borrower, shall sit 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 o require Lender (0 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 patd 9. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given fo 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 atthe 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 ofthe 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 Bortower pursuant to Section 255()(1\(A) of the National Housing Act and the Loan Agreement, the Seeretary 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 (This Note is assigned to the Secretary, or Gi) ‘The Secretary accepts reimbursements by the Lender for all payments made by the Secretary. If the circumstances described in (i) or (ji) occur, then all payments made by the Secretary, including interest on the payments, shall be included in the debe. (C) Effect ou Borrower Where there sno assgnientor reimbursement as described in (B)() o (i), and the Secretary makes payments o Borrower, then Borrower shall na 5 AT OT 44 Wee ARGKS BHT OT tat :d io pay amounts owed under this Note until phe[Seetetaetids refuted piyniefiChhull of all ‘uistanding principal anced interest adr the Second Noel ste Secitary, outa fi/Ohingdotthe,bSntrary if Paragraph 7 of this Note; or~ far on cma “ wan ADOT Adi 1ARe (iy gn Be obigateaad ay thCTEHGFARned appreciation unde HS NOON sAP URE Wide’ Acried bore or lr the payments by the Seeretary, and whether or nl accrued interest has been cluded in the principal balance of this Note, siotwithstanging anything to the contrary in Pagagraplis 2 or, 5_of this, Note or any lone tis Na aise W deak naehed A pads 8 ees to the terms and covenants contained in.this.Notére- yond feokvidad yasth 2 YAYOR LY SIGNING BELOW, Borrower accepts and aPAY TO THE ORDER OF PAY TO. THE ORDER OF SEATTLE SAVINGS BANK eo WITHOUT RECOURSE WITHOUT RECOURSE SEATTLA MORTGAGE, COMPANY “Carlson fest. Sheipi Carian, Yea eeaont a hawt By: Jpeg iy L. Arhoy, sistant Secretéty Mary L. Aineg/AssistanSetrotarypoisrn 20. A fe Associates, nt. j CFN2008;25402:. 0-28-2003 0536 pm | Ft Souns iy | ompoavroge 4894 7 3751. 2055 — L beat 1 Scott Ellis 1 lek oF Cura, eats County Yaron 9 aNemes:2 . in tec: ve Et 1ySOB ‘ett 06 "Rac 37.60, Se con Becerra Reterete: ing” 94858 Seaitle Mortgage Company 1800 112% Avenue, NE, Suite 300 Bellevue, Washington 9800¢ Gy? Tidy Holdin BHA Case Number: 094-4788383-958, LOAN NO: 1000638 ‘State of Fortda ~~ ADJUSTABLE RATE HOME EQUITY CONVERSION MORTGAGE THIS MORTGAGE ("Security Instrument") is given on APRIL 24, 2003. The mortgagor is MARY E. KEATING, A SINGLE WOMAN, whose address is 2700 NORTH HIGHWAY AA #4201, INDIALANTIC, FLORIDA 32903 (’Borower"). This Security Instrument is given fo Seattle Morigage Company, which is organized and existing under the Jaws ofthe state of Washington, and whose address is 190 Queew Anne Avenue North, Suite 500, Seatle, Washington 98109 ("Leader"), Borrower has agreed to repay to Lender amounts which Lender is obligated 10 advance, including future advances, under the tems of a Home Equity Conversion Loan Agreement dated the same date as this Security Instrument ("Loan Agreement), ‘The agreement (0 repay is evidenced by Borrower's Note dated the same date as this Security Tstrunent (’Note"). This Security Instrument secures to Leader: (a) the repayntent of the debt evidenced by the Note, with fnterest at a Tae subject to adjustment, and all reneviala, exlensions and modifications of the Note, up to a maximum principal amount of $155,250.00; (b) the payment of all other sums, with interes, advanced under Paragraph $ to protect the security ofthis Security Instrument or otherwise due under the terms ofthis Security Instrument; and (e) the performance cof Borower's covenants and agreements under this Security Instrument and dhe Note. ‘The full debt, including all amounts described in (a), (0), and (@) above, if ot paid earlier, is dus and payable on SEPTEMBER 27, 2083. For this purpose, Borrower does hereby mongage, grant and convey 10 Lender, the following described property located in BREVARD ‘County, Florida: ‘The real propery located at the address 2700 NORTH HIGHWAY ALA #4201, INDIALANTIC, FLORIDA 32903, in the county of BREVARD, state of FLORIDA, describod more fully on Exhibit A attached to this Mortgage “TOGETHER WET al de improvements now o hereafter erected onthe property, andall asoments ights,appurtenanoss and fixtures now of heer a par of the propery. All replacements and addins shall also be covered by this Savory Tastrument. All ofthe foregoing is refered in this Secuty Instrument a the "Property." BORROWER COVENANTS that Borrower is lawflyselsed of the esate hereby conveyed and has the ight to mortage, fam and cowey te Propeay and tat te Property Js unencunbered, Borcower warants and will defend generally the title to the Propesty against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covesans for national use and non-uniform covenants wit Hine ‘acations by jurisdiction to consis a uniform security instrument covering real propery. UNIFORM COVENANTS, Borower and Lender covenant aid agree as follows 4. Payaaeat of Pricipal and Tnterest. Borrower skal pay when dv Ue pricipa of, and iierest on, the det evidenced by the Not 2. Payment of Property Charges. Borrower shall pay all property.charges consisting of taxes, ground rents, food and hazard insurance premiums, and special ascesments ina timely manner, and shal provide evidence of payaeet fo Lender, Fling 18869485 vs D5-2014-CA-OB4MB7-XXXKKXne fn rR [cen zo0stasaae" a: 4 . {OR BookiPade. 4894' 7°°3752" unless Lender pays property charges by withholding funds from monthly payments due to The Borrower 6 BY charging sua payments ta line of credit as provided for inthe 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 maintainedin the amounts, to the extent and for the periods required by Lender or the Secretary of Housing and Urban Developmént (‘Seerelary"). "Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erecied, agninst loss by floods to the extent required by the Secretary. All insurance shail be carried with companies approved by Lender, ‘The insurance policies and any renewals shall Ye held by Lender and shall include loss payable clauses in favor of, and in a form acceptable 0, Lender, In the event of less, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not wade 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 Lender jointly, Insurance proceeds shall be applied to restoration or repair of the damaged Property, if the restoration or repair is economically feasible and Lenders secutity is not lessened. 1F the restoration or repair is not economically feasible or Lenders security would be lessened, the insurance proceeds shall be applied frst to the reduction of any indebtedness under a Second Note and Second Security Instrument held by the Secretary fon 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 inclebtedness under the Note and this Security Instrument shall be paid tothe 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, allright, tile and interest of Borrower in and fo insurance policies in force shall pass to the purchase. 4, Oceapancy, Preservation, Maintenance and Protection of the Property; Borrawer's Loan Application; Leasebolds. Borrower shail occupy, establish, and use the Property as Borrowers principal residence after the execution of this Security Instrument and Bortower (or at least one Borrower, if initially more than one person are Borrowers) and shall continue to ‘occupy the Property as Borrower's principal residence forthe term of the Security Instrument, “Principal residence” shall Ihave the some meaning asin the Loan Agreement, Borrower shall aot commit waste or destoy, damage or substantially change the Property oF allow the Property to Aeterocate, reasonable wear and teac excepted, Borrower shall also be in default if Borrower, during the loan application process, gave materially flze or inaccurate tnformation oF statements to Lender (or failed to provide Leeder with any traterial information) in connection with the Loan evidenced by the Note, including, but not limited to, representations concerning Borrowers occupancy of the Property esa principal residence, If cis Scouity fasuument ig on a leaschold, Borrower shall comply withthe provisions of the lease. If Borrower acquires fee tile 10 the Property, the leasehold and fee tile shall pot be merged unless Lender agroes to merger in writing 5, Charges to Borrower and Protection of Lender’s Rights in the Property. Borrower shal pay ali governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time direcly to the entity which is oved the payment. If failure to pay would adverse affect Lender's interest in the Property, ‘upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments. Borrower shall ‘romply discharge any Vien which has priority over this Security Instrument in the manner provided in Paragraph 12(). If Borrower fails to make these payments or the property charges required by Paragraph 2, or fails to perform any other covenants and agreements contained in this Seeurty 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 whatever is necessary to protect the value of the Property and Lender's rights in the Proper, including payment of taxes, hazard insurance and other items mentioned in Paragraph 2 Fring 15869485, vs 05-2014-CA-034487 XXX| ‘eee | eFNadostasecz : (orbouriee 4894. / 3753 ‘To prtet Lenders security in he Property, Lender stall advance and charge to Borowe aT aROURI due we Setetary———7 forthe Mongege nswancePromiom (IP as defined inte Loan Agreement a ell sal sums du othe loan servicer for servicing aces 'Senctng Fe") as defined inthe Loan Agreement Any amounts disbursed by Lender under this Paragraph ave blignory and shat Devoe an adional debt of Borrower As provide for fo the Loan Agrerent and shal be soo by ths Seer nsruet 46, Inspection. Lender or its agent may emter 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 sppraisal which must be related to Lender's interest in the Property. Ifthe Property ts vacant fr abandoned or the Toan i in default, Lender may take reasonable action to protect and preserve such vacant or abandoned Property without notice to the Borrower. 7. Condemaation, ‘The proceeds of any award or claim for damages, direet 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 proveeds shal 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 indebledness under the Note and this Security Instrument, Any excess proceeds over an aroount 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 foes and charges authorized by the Secretary. 9. Grounds for Acceleration of Debt. (a) Due and Payable, Lender may require immediate payment in fll of all sums secured by this Security Instrument it (A Borrower dies and the Property is not the principal residence of atleast one surviving Borrower, oF Gi) Allofa Borrower's title in the Property (or his oF her beceficial interest in a trust owning all or past of the Property) is sold or otherwise transferred an no other Borrower retalns (a) title to Use Property in fee simple, (0) a leasehold under a lease for less than 99 years shich 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 (¢) life estate in the Property (or a beneficial interest ina trust with such an interest in the Property). (b) Due and Payable with Secretary Approval, Lender may require immediate payment in fal ofall sums secured by this Security Instrument, upon approval by an authorized representative of the Secretary, if (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 atleast one other Borrower; oF Gi) For aperiod of fonger than twelve (12) consecutive months, @ Borrower fils to physically occupy the Property because of physical or mental iiness and the Property is not the principal residence of at least one other Borrower; of not performed. Gil) An obligation of the Borrower under this Security Instrument (€) Notice to Lender. Borrower shall notify Leader whenever any of the events listed in subparagraphs (a) and (b) of this Paragraph 9(a)(i) oF (b) occur. (€) Notice to Secretary and Borrower. Lender shall otify the Secretary and Borrower whenever the loan becomes du fand payable under this Paragraph 9a) and (b), Lender shall not have the right to commence foreclosure until Borrower has had thiny (20) days after notice to either {@)__ Correct the mater which resulted in the Security Instrument coming due aud payable; oc i) Pay the balance in fall; or * Filing 15889485 vs (05-2014-CA-034487-10000XX6 CONE cerwazceaiascoz oo on osePage 4804 (iy a Pay fr ther fe ne 9% fe apd Year Lk 5 Sle toward the tales, i { (iv) Provide the Lender with a deed in lieu of foreclosure, (©) Trosts, Conveyance of a Borrower's interest in the Property (o 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 conskdered a conveyance for pumposes of this Paragraph, trust shall not be considered an occupant ot be considered as having 2 principal residence for purposes of this Paragraph 9. (O Mortgage Not Insured, Borrower agrees that should this Security Instrument and the Note nat be eligible for ‘insurance under the National Housing Act within eight (8) months from the date hereof, Lender may, a is option, require immediate payrent in ful of all sums secured by this Security Instrument. A wiiten statement of any authorized agent of the Secretary dated subsequent to eight (8) months from the date hereof, declining to insure this Security Instrument ‘and the Note, shal! be deemed conclusive proof of such ineligibility. Nowwithstanding the foregoing, this option may not fe exercised by Lender when the unavallablity of insurance is solely due 10 Lender's faiture to remit a mortgage insurance premiutn to the Secretary. 10, No Deficiency Judgements, Borrower shall have no personal lsblity for payment of the debt socured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be permitted (o obtain a deficiency judgement against Borrower if the Security Instrument is foreclosed, If this Security Instrument is assigned 10 the Secretary upon deménd by se Secretary, Borrower shall not be liable for any difference between the mortgage insurance benefits paid t0 Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment, 11, Reiustatement, Borrower has a ight to be reinstated if Lender hag required immediate payment in full. This tight 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 a foreclosure proveeding shall be added to the principal balance. Upon reinstatement by Borrower, this Seewtty Instrument and the obligations that it secures shall remain in effect as if Lender had not requited immediate payment in full, However, Lender is aot required fo permit reinstatement if() Lender has accepted reinstatement after the commencement of foreclosure proceedings within two (2) years immediately preceding the ‘commencement of a current foreclosure proceeding, i) ceinstatement will preclude foreclosure on different grounds inthe future, oF (il) reinstatement will adversely affect the priority of the Security Instrument, 12, First Lien Status (a) Modification, Boriower agrees to extend this Scurity Instrument in accordance with this Paragraph (2(a). If Lender ‘determines thatthe onginal licn status of the Security Instrument s jeopardized understate law (including but not limited to situations where the amount secared by the Security [nstramentoquals or exceeds the maximum principal amount stated fr the maxiowwm period under which loan advances retain the same lien priority inital granted to loan advances bas expired) and sate law permits the original lien status to be maintainedfor future oan advances Unrough the execution and recordation of one or more documents, den Lender shall obtain title evidence at Borrower's expense. Ifthe title evidence indicates that the Proy-iiy is not encumbered by any Wiens (except this Security Instrument, the Second Security Tnstrument described is Porageaph 13(a) and any subordinate liens thatthe Lender determines will also be subordinate to any future loan advances), Lender shall request the Borrower to execute such documents. If state law does not permit the origina lien status to be extended to future loan advances, Borrower willbe deemed to have filed to have performed ‘an obligation under this Security Instrument, (b) Tax Deferral Progress. Borrower shall not participate ina real estate tax deferral program, if any liens created by the tax deferral are noi subordinate to chis Security Iastrument. Fring 15869485, vs 05-2014-CA-034487 X0000XXfern a 4894,1:3755 (@) Prior Liens. Bortower shai promptly discharge any lien which has prioiy SVE UH Seoury iebinisitatate 7 Borrower: (9) ages in writing tothe payent of tie obligation secured by the lien ina manner acceptable to Lender, (b) contests in good Tait the lien by, oF defends agsins enforcement of the Tien in, legal proceedings which in the | Lenders opinion operate to prevent the enforcement of the lien oF forfeiture of any part of the Property, or (6) secures from the bolder of the lin an agreement satisfactory to Lender subordinating the Tien to all amounts scoured by this Seourty Insrument. If Lender determines that any part of the Propeny is subject toa lien which may alain priority over this Sozunty Instrument, Lericr may ive Borower a notice identifying the len. Borrower shal satisfy the len or take fone oF more of the actions set forth above within ten (10) days of the giving of notice. 13, Relatlonship to Second Security fustrument, (a) Second Security Instrumnent, In order to secure payments which the Secretary tay make {0 of on behalf of Borrower pursuant o Section 255(iX1(A) of the National Housing Act and the Loan Agreement, unless otherwise provided by the Secretary, the Secretary has required Borrower to execute a Second Note and Second Security Instrument ‘on the Property. (b) Relationship of First and Second Security Instruments. Payments made by the Secretary shall not be included fn the dabt under the Note unless (This Security Insirunent is assigned to the Sceretary, ar i) The Secretary encents veimbursement by the Lender forall payments made by the Secretary. If the circumstances feseritd in Gj) or (it) ocour, then all payments by the Secretary, including interest on the payments but excluding late charyes paid by the Secretary, shall be included in the debt under the Note (©) Bffect on Borrower. Where there is no assignment or reimbursement as described in (b() or (ii) and the Secretary makes payments to Borrower, then Borrower shall not: () Be requited t0 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 outstancing principal and accrued interest under the Second Note; oF Gi) Be obligated to py bnterest oF shared appreciation under the Note at any time, whether accrued before or after the payne yt Secretary, and whether oF not accrued interest has been included inthe principal balance under the Note (@)_ No Doty of th Tnstrumentor to take 0 ‘owed under the Note because Seeveary. “The Seoretery has ao duty to Lender to enforce covenants of the Socond Security (> preserve the value of the Property, even though Lender may be unable to collect amounts restrictions in this Paragraph 13, 14, Forbeaeauce by Leniler Not s Waivers Any forbearance by Londer in exercising any right or remedy shall not be a waiver of or prechide the evercise of any right or remedy. 15, Successors and slo Nowy Joint aud Several Liability, The covenants ané agreements of this Security Ingurument shall bind si ett the successors ané assigns of Lender. Boctower may not assign any rights or obligations under this Security Instrument or under the Note, except toa trust that meets the requirements of the Secretary. Borrower's Covenants and agreement: b=") Se joint and several 16, Notices. Any notice o Honower provided for in this Security Instrument shall be given by delivering it or by mailing A by first class mait ws slicable law requires use of another method. ‘The notice shall be directed to the Property ‘Address of any other adress all Borrowers joindy designate. Any notice to Lender shall be given by frst class mai Fling 18869485 vs 05-2014-CA-034487-KX0K2ae . crR2008125402 Lenders adres sat sino ay ares Lender desis by note to Barow. OR Bane: 4804, /. 3786 ‘Senurity asroment chal bs eed to tave ben given to Borower or Lender when given as provided i Us PAABaBH 16 17, Goveroiog Law; Severity, Ths Security Instrumetsallbe governed by Federal lw and hela of the juristiton in which the Property is ics tu the event that any provision or clause ofthis Secirity Instrument oF the Not conics ‘with applicable law, suc effect without the consi to be severable. bot t sal not affect other provisions of this Security Instrument ar the Note which can be given ing provision, To this end the provisions of this Security Instrument and the Note are declared 18, Borrower's Copy. 8 ower shall be given one conformed copy of the Note and this Security Instrument NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree a8 follows: 19, Assigument of Rents, Borrower unconditionally assigns and tansfers to Lender all the rents and revenues of the Property. Borrower authori lender or Lender's agents to collect the rents and revenues and hereby directs each tenant of the Propecty to pay the 1-0" :0 [ender or Lenders agents. However, prior to Lender's Notice to Borrower of Borrower's Dreach of any covenant or sen! in the Security instrament, Borrower shall collect and reecve all rents and revenues of the Property as tne benefit of Lender and Borrower. This assignment of rents consifules an absolute assignment and not an assigaricat lor additfonal security only. It Lender gives notice of breach to Borrower: (a) all rents received by Borrower shall be held by Borrower as teustce for ‘benefit of Lender only, to bo opie 1o the sums Secured by Unis Security Instrument; (b) Lender Shall be entitled to collect and receive all ofthe ver's! = Pe perty, and (c) each tenant of the Property shall pay all rents due and unpaid to Lender fo Lender's agent on Lense siten demand to the tenant. ‘Borrower has not execute! “ine assignment of the rents and has not and will tt perform any act that would prevent Lender from exercisiny tor this Paragraph 19. Lender shall ot be sea! ‘upon, take control of or maintain the Property before or after giving notice of breach to Borrower, However, Leer or a judicially appointed receiver may do so at any time there is a breach, Any application ff rents shal not cure or vive anv defnalt or ivalidate any other right or remedy of Lender. This assignment of rents of the Property shall termin ‘debt secured by this Security Instrument is paid in ful. 20. Forectosure Pris Jer requires immediate payment n fall under Paragraph 9, Lenider may foreclose this Security Instrument oy »~ ‘cial proceeding, Lender shall be entitled to collect all expenses incurred in pursuing the remedies provi! ‘sph 20, ineluding, but not limited to, Feasonable attorneys’ fees and costs of title evidence, 21. Liew Priority. ‘The soured by this Security Instrument shall have the same priority over any other liens fon the Property as if tind been disbursed on the date the intial disbursement was made, repardiess of the cual date of any dish: ~ smo secured by this Seeurty Instrument shall include all direct payments by Lender to Borrower and all other Jo20 svonces permitted by this Security Instrument for any purpose. This lien priority shall apply notwithstandingony Sine + ny oF regulation, excopt that this Hien priority shal not affect the priority of any liens for unpaid State or Io +1 wail special assessments or taxes. 22, Adjustable 1 vier the Note, the initish stated interest rate of TWO AND ELGHTY-THREE HUNDREDTHS pec 2) acerues on the unpaid principal balance ("Initial Interest Rate) is subject to change, as described Ine interest rate changes, the new adjusted interest rate will be applied to the total ‘outstanding principal | Justment to the interest rate will be based upon the weekly average yield om United States Treasury Sec"! "constant maturity of one year, as made available by the Federal Reseive Board in Sutistcal Release 1-15 ‘) plusa margin, IE the Index is no longer available, Lender will use a8 a new index and index prescribes Lender will give Borrower notice of the new Index Lender will perform the ‘escrited below to determine the new adjusted interest rate. The- interest rate may change on JULY 3, 2: first day of ___ and on that day of each succeeding year, or _X_ the first day of each sue vange Date) nt te loan is repaid in fll PS Filing 15869485 vs (05-2014-CA-034487-XKXKXX(oe | cravostzssoa ‘ ‘The value of the Index w:!! 11: ned, using the most recent Index figure availa, OR Bookipaye:" 4894 /.3757° i Date ("Curent Index", change Die he new eres rate we caleuted by aad giciut oink ——7 Indes The gum ef the sles He Caet lide wl be cil he *Calelate Interest Rate” foreach Crange Dale ree Salndatd Ince spared te ntfs tate in effet immediately prior to the current Change Date (the “Eysing Interest te Kamal Aaj Yaible Rate Peat, _X_ Monthy aaj) oon Rate Feature + The Caleulatedttrest Rat wil never inresesbove TWELVE AND HGH OSE MONDREDTHS PERCENT (12.83%) “The Caleuaed nterexe P=» ase st ecessay to comply with he rte Knations deserted above and wil be inet unl be nest oy Say change dt, i tbe Calculated intrest Rate equals the Exiting Interest Rat, tha imerest rate wl 23, Release, Up secre by Oi Secury Instrument, Leder stall lease this Serurty Isirumeat rnoot charge Sotroyee och sal yay any record eas De Attoreeys Bers "cere Inston andthe Note, atone fs” sal ice any atorasy fos awarded by an appellate 25, “Riders to this Seon of, Fone of more riders are executed by Borrower and recorded together with this Securley Instrument, sarcements of each such rider shall be incorporated into and shall amend and supplement the covensais nu) -oscntso¥ this Security Instrument as ihe rider(s) were a part of this Security Instrument, [Check all riders that 2c= 1 7 XL Condomini __— Planned Unit Development Rider __ Shared Appre Others) = BY SIGNING BELOW, © opis and agrees to the terms and covenants contained in this Security Instrument and : nt recorded ih U. STATE oF ¥L0 cowry or Beevaeb ey of “The foregoing ins Ay Fring 15860485, ea (05-2014-CA-034487 XK(rr TERE Grn:z003 125402. * oo Jon bookeage: 4804" 3768 EXHIBIT A eer O04 HES Exhibit A to the Morte REL 24, 2003, by MARY E, KEATING, A SINGLE WOMAN (‘Borrower’) 10 Seattle Morigage Compr ( "|The Property is located in the county of BREVARD, sate of FLORIDA, described 28 follows: Description of Property UNIT 201, BUILT > 4, PALM COLONY CLUB CONDOMINIUM, ACCORDING TO THE DECLARATION ¢ ‘OMINIUM RECORDED IN OFFICIAL RECORDS BOOK 1426, PAGES 88 THROUGH USIVE, AMENDED BY AMENDMENT RECORDED IN OFFICIAL RECORDS 860K Ges 2123 THROUGH 2131, INCLUSIVE, OFFICIAL RECORDS BOOK 2753, PAGES 215 139, INCLUSIVE, RE-RECORDEDIN OFFICIAL RECORDS BOOK 2759, PAGES » (GH 2789, INCLUSIVE, OFFICIAL RECORDS BOOK 2808, PAGES 973 ‘AND 974, CORDS BOOK 3224, PAGES 393 AND OFFICIAL RECORDS BOOK 3362, PAG RECORDS OF BREVARD COUNTY, FLORIDA, TOGETHER WITH AN INDIVIDED 4 PARCEL NO: Fling 15869485 vs 05-2014-CA-034487-XX00XXPHA Case Number: 94-4 ‘THIS CONDOMANILA 111 supplement the Mort, undersigned ("Bortover") (Lender) of the sare date 2700 0 “The Property Address incluts noven as (the "Condominium Pr Association”) holds ti (9 Borrower's interest in 1 0 CONDOMINTUM CONT Borrower and Leader fo: A, Solongas ty policy insuein a hereafter eres! 0 amounts, forte» includ wis Lender wii Ansurance os Inazard insure ‘Owner's Ass coverage a of restoratio: elements, sums secures B,—_ Borrower pro by the ow ©. IEBortowe: disburse Instruroest he date of tv requesting BX SIGNING HEL! Fling 15860485 tN | eenzooas26é02, i CONDOMINIUM RIDER « hbeaunide 4804, 7 3750 988 LOAN NO: 1000638 rnade on APRIL 24, 2003, and is incorporated into and shall be deemed to amend and ‘rust o Security Deed (the “Seourty Instrument") of the same date given by the ioreower's Note 10 Seattle Mortgage Company, an Washington Corporation, sing the Property described in the Seourity Instrument and located at: HIGHWAY AIA #4-201, INDIALANTIC, FLORIDA 32903 1, together with an undivided imerestin te common elements of, a condominium project PALM COLONY CLUB CONDOMINTUM ners association or other entity which ats for the Condominium Project "Owners + the benefit or use of its members or shareholders, the Property also inclodes tion and the uses, proceeds and benefits of Borrower's interest. ‘> adltition to the covenants and agreements made in the Sécurity Instrument, ‘essnt and agree as follows: vion maimains, with a generally accepted insurance carrier, a "master" or “blanket” + ject te the condominium documents, including all improvements now existing or 0 and such poli is satisfactory to Lender and provides insurance coverage in the \dagninstthe hazards Lender and the Secretary quite, including fire and other hazards, tnd coverages" and loss by flood, tothe extent required by the Seeretary, then (i) ‘graph 2 of this Seearity Instrument for the payment of the premium for hazard Sorrower's obligation under Paragraph 3 of this Security Instrument to maintain vou’ 48 deemed satisfied to the extent that the required coverage is provided by the Norrower shall give Lender prompt notice of any lapse in required hazard insurance 1 qu a hazard, In the event of distribution of hazard insurance proceeds in ict vw n toss to the Property, whether to the condominium unit or to the common “orvower are hereby assigned and shall be paid ta Lender for application tothe stotment, With any excess paid 10 dhe entity legally entitled thereto. ‘rs allocated shave of Uhe common expenses oF assessments and charges imposed vwovided in the condominium documents. viumn dues and assessments when doe, then Lender may pay them. Any amounts graph € shall become additional debt of Borrower secured by.the Security ‘der agree to other terms of payment, these amounts shall bear interest from rate and shal be payable, with interest, upon notice from Lender to Borrower ‘oud gages to the terms and provisions contained in this Condominium Rider vs (05-2014-CA-034487-10000XX IGM