Addendum to mortgage and note
This
addendum is incorporated into and made part of the attached note & mortgage
of even date. In the event of a conflict between the terms of this addendum and
the mortgage & note, the terms of this addendum?prevails.
Property Taxes
and insurance
Lender shall not escrow for taxes or insurance.
Borrower shall pay these costs directly themselves. The Borrower shall?pay the annual property taxes no later than
March 31 of the year after that for which they are payable. That is to say by
example, the taxes for calendar year 2000
are payable with maximum discount by November
30, 2000. They will however always be paid by March 31 2001. And so on for following years. If they are not paid
by the end of March, and proof of payment mailed to Lender, the mortgage shall
be in default. Lender shall give 30 days notice to Borrower to cure this
default and may then, at Lenders option, (i) foreclose the mortgage and/or
(ii) pay the taxes themselves, the amount of these taxes being added to the
principal outstanding of the loan and earning interest at the same rate as the
remainder of the loan.
In the event the mortgagor does not renew the hazard
insurance policy then mortgagee may obtain loss payee insurance coverage only,
or pay for the regular property insurance at mortgagee's sole option, which
cost shall be payable by the mortgagor. Failure to reimburse the mortgagee for
the cost of this policy within 10 calendar days after being mailed a bill for
it shall constitute default under the mortgage and the lender shall be entitled
to commence foreclosure without further notice to borrower.
Lender may, in their sole discretion, escrow for
taxes and insurance as provided under the mortgage.
If loan is second mortgage
In
the event that this loan is a second mortgage, borrower agrees to mail or fax
to the above lender a photocopy of the front and back of the cancelled check or
other receipt showing the first mortgage has been paid every month not later
than 45 days after the first mortgage due date. Thus if the first mortgage
payment is due on the 1st of February 1998, the lender shall receive
this copy no later than 15th March 1998. Failure to do this shall
constitute a default under the mortgage, even if the first mortgage is
current. Lender will give borrower 30 days notice to cure default by
sending the above proofs and may then foreclose the mortgage.
Borrower
understands, confirms and agrees that the lender may contact the first mortgage
holder for any reason and to determine if the first mortgage is current.
A
default on the first mortgage creates a default on this second mortgage, even
if this second mortgage is current.
Giving notice by Lender
Lender
may give notice to the borrower by 1st class mail and is not
required to serve notices by certified mail.
Prepayment Penalty
In
the event the note and mortgage provides for a prepayment penalty the amounts
of that penalty shall be as follows: Prepayment months 1-12, 3.75% of the
outstanding principal, in months 13-24, 1.25% of the outstanding principal,
thereafter zero. All other terms provided for shall apply. Prepayment caused by
foreclosure of this loan shall attract the same, above prepayment penalties.
Persistent Late Payments and
Dishonored Checks
If
payments from the Borrower are received more than 15 days late 4 times in any
12-month period the Lender may mail to the Borrower a notice demanding strict
performance. Thereafter the Lender may accelerate the loan without notice if
payments from the Borrower have not been received 5 days after the due date. If
the Lender receives a bad check, Lender can demand that all future payments are
made by money order or cashier's check.
Access to Property
Borrower grants the seller/ mortgagee (or
their agent) the right to access the property for inspection purposes or to have
an appraisal performed with reasonable notice.
?
Signed
? ?
?.
Borrower,
Address, City, State, Zip ?Date
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