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HomeMy WebLinkAboutR-1990-D5705 Homeownership ProgramRESOLUTION NO. D -57O5 A Resolution of the Council of the City of Yakima, Washington, authorizing a loan for Hector M. Mesina and Leticia Mesina under the City's Homeownership Program. WHEREAS, pursuant to Ordinance No. 3206 of the City of Yakima (the "City), adopted September 26, 1989, the City established a program to provide below-market rate loans for the acquisition of residential property by persons or families of low income (the "Homeownership program" or "Program") and authorized the issuance and sale of its Limited Tax General Obligation Notes, 1989 (Series A -C and E -K), to fund such program; and WHEREAS, Ordinance No. 3206 requires approval by the City Council of each loan to be made under the Program; and WHEREAS, the Office of Housing and Neighborhood Conservation (the "Office"), as administrator of the Homeownership Program, has requested that the City Council approve a loan to be made under the Program; and WHEREAS, in the certificate attached hereto as Exhibit 1 and incorporated by this reference herein, the Office has assured the City Council that such loan meets all requirements of the Program and complies with the laws of the State of Washington and with the Internal Revenue Code of 1986, as amended; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF YAKIMA, WASHINGTON, AS FOLLOWS: SECTION 1. Findings. In reliance upon the certificate attached hereto as Exhibit 1, the City Council hereby finds that the proposed loan to Hector M. Mesina and Leticia Mesina (the "Debtor") , in the aggregate amount of $38,200.00 (the "Loan") , to purchase and rehabilitate) a residence located at 109 N 8TH ST in the City, meets all federal and state laws and regulations applicable to the Program and meets all requirements of the Program, as set forth in the Program Policies and Procedures. The City Council further finds that $3,200.00 of the Loan be funded from the Homeownership Account of the Yakima General Fund and that $35,000.00 will be funded from 203K PROGRAM through Security Pacific Bank Washington and that such amounts are not greater than the amounts available for such purpose. SECTION 2. Authorization. The City Council hereby authorizes the Office to make the Loan upon the terms set forth in and upon the execution by the Debtor of the Homeownership Agreement, Promissory Note and Deed of Trust, attached hereto as Exhibit 2 and by this reference incorporated herein. The City Council further authorizes the Office to execute and deliver all documents necessary thereto. ADOPTED by the Council, of the C' y.\ of Yakima, Washington,/,,at a regular meeting thereof, this �J day of -Q �7 ,19 1 0/ CITY OF YAKIMA, WASHINGTON BY ATTEST: CITY CLERK MAYOR CERTIFICATE I the undersigned_ Clerk of the City of Yakima, Washington (the "City"), and keeper of the records of the City Council (herein called the "Council"), DO HEREBY CERTIFY: 1. That the attached resolution is a true and correct copy of Resolution No. of the Council (herein called the "Resolution"), duly passed at a meeting thereof held on the of ;19_ , held all respects in 2. That said meeting was duly convened andheld in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage .� other ' Lr. and proceedings of said Resolution; that all other requirements incident to the proper passage of said Resolution have been duly fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHFRFnF _ I have hereunto set my hand this day of A19 ' CITY CLERK CITY OF YAKIMA, WASHINGTON LOAN AGREEMENT THIS LOAN AGREEMENT ("Agreement") is made and entered into this 26 day of February. 1990 by and between the City of Yakima ("Lender") and Hector M. and Leticia Mesina ("Borrower(s)"). RECITALS WHEREAS, Borrower is purchasing that certain property (the "Property") located in Yakima County, Washington, more particularly described in Exhibit A attached hereto and by this reference incorporated herein; WHEREAS, this Agreement is entered in conjunction with the Borrower's note (the "Note") and the deed of trust (the "Deed of Trust") of even date securing Lender's loan; WHEREAS, this Agreement together with the Note and the deed of trust shall hereinafter be collectively referred to as the "Loan Documents"); NOW, THEREFORE: in consideration of the mutual promises contained herein, and other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the parties agree to the following terms: 1. Performance of Obligations. Borrower agrees to comply with, abide by, and perform as applicable all of the obligations, terms, provisions and conditions of this Agreement. Borrower's breach of any of the provisions in this Agreement shall constitute a default (an "Event of Default") under the Loan Documents, thereby providing Lender with any or all of the remedies specified in the Loan Documents or otherwise available at law. 2. Borrower's Examination_of the Property: Requirements of Occupancy. Repairs and Improvements. Borrower acknowledges that he/she examined the Property, is aware that the Property may need repairs and takes the full responsibility for repairing the Property to such a condition that the Property is safe and satisfactory for habitation and meets all applicable minimum code standards, and that Lender 1 o responsibility whatsoever, including costs, any b(IGlll IIdVC IIV IQ�7'.JNIIs14J11l6� including for b.a++' e such repair. a. Repairs Required Prior to Occupancy: Prior to Borrower's occupancy of the Property, Borrower, at Borrower's sole cost and expense; must repair those defects on the Property, if any, which pose a substantial danger to health and safety, and also must place the property in such condition as to meet the minimum health and safety standards for occupancy as determined by the appropriate governmental authorities. b. Improvements: Compliance. with Local Housing Code Standards. Borrower must improve the Property so that it meets all local code standards for decent, safe, and sanitary housing. Borrower also must comply with any energy conservation measures designated by Lender as part of the repairs. Borrower's failure to place the Property in such condition as required in this subparagraph 2(b) and to present evidence of such compliance to Lender within three (3) years from the date of this Agreement shall constitute an Event of Default. 3. Residence on the Property. Borrower must occupy the Property upon completion of the repairs required in subparagraph 2(a). Borrower shall reside in the Property as his/her principal place of residence for a period of no Tess than five (5) consecutive years following occupancy of the Property. The Property shall not be occupied by persons other than Borrower and his/her immediate family unless the unit has been approved in writing for multiple -occupancy by Lender. In the event of the death of Borrower, the occupancy provisions in this paragraph shall remain in effect as to the surviving Borrower. 4. Insurance and Liability. Borrower shall obtain and at all times maintain and keep in force: insurance against Toss or damage to the Property and any improvements thereon, by fire and any of the risks covered by insurance now known as "fire and extended coverage" in an amount not Tess than the full replacement value of the Property and improvements, with a deductible not to exceed an amount approved by Lender. These policies of insurance shall contain a "Replacement Cost Endorsement" reasonably satisfactory to Lender. 2 All policies of insurance shall be issued by companies and in amount satisfactory to Lender. Borrower shall furnish Lender with an original or certified copy of all policies of required insurance. At least fifteen (15) days before the expiration of each such policy, Borrower shall furnish Lender with evidence satisfactory to Lender of the payment of premiums and the reissuance of a policy so as to continue in force the insurance required by the Loan Documents. All insurance policies shall contain a provision that such policies may not be cancelled or amended, which term shall include any reduction in the scope or limits of coverage, without at least thirty (30) days prior written notice to Lender. Borrower assumes all risk and responsibility for accident, injury or damage to person or property caused from the condition of the Property or Borrower's use and control of the Property. Borrower shall forever defend, indemnify and hold harmless Lender and any of Lender's employees, agents or officers for any expense or damages Lender may suffer due to the Action of Borrower or anyone acting on Borrower's behalf or any invitee upon the Property which shall cause accident, injury, or damage to any person or property. Borrower's shall, while this Agreement remains in effect, keep in force with respect to the Property, public liability insurance in such manner and in such amounts as Lender deems appropriate. Lender shall be a named insured of such policy. 5. Property Taxes and Assessments. Borrower shall pay, before delinquency, all taxes and assessments. Borrower shall promptly pay all contractors and materialmen to minimize the possibility of any lien attaching to the Property, and should any lien be filed, Borrower shall cause such lien to be released through bond or otherwise within thirty (30) days after such lien is filed. 6. Monitoring. For a period ending five (5) years after Borrower's occupancy of the Property, Lender may enter and inspect the Property every six (6) months, at a date and time agreed to by Lender and Borrower, to determine if Borrower is complying with the terms and conditions of this Agreement. Borrower's failure to cooperate with Lender in arranging such visits shall constitute an Event of Default. 3 7. Certification of Borrower. Borrower certifies that he/she (1) is is twenty-one (21) years of age or over, (2) is the head of a household as such is defined for Federal Income Tax purposes, (3) possesses the financial resources nr the necessary skills to rehabilitate nr cause the rehabilitation of the Property, as well as to pay the appropriate expenses in the continuing maintenance and upkeep of the Property, (4) has not (including immediate family) previously participated in the City of Yakima Homesteading Program, and (5) is not currently a homeowner. 8. Benefit. The Agreement shall be binding on Lender and Borrower, the Lender's successors and assigns and Borrower's heirs, legatees and devisees. CITY OF YAKIMA By A TTI-fi T, iNTTES . City Clerk 4 Richard A. Zais, Jr., City Manager /1:t.. _t \/_1.:._ /1 ..J_..\ %illy UI T411%lllld, kLeIluer) 129 North Second Street Yakima, Washington 98902 Borrower Borrower (Address) STATE OF WASHINGTON) CITY OF YAKIMA ) ss. YAKIMA COUNTY ) On this day of ,19 , before me the undersigned, a notary public in and for the State of Washington, duly commissioned and sworn, personally appeared , known to be the individual(s) described in and who executed the foregoing instrument as their free and voluntary act and deed, for the uses and purposes therein mentioned. WITNESS my hand and official seal affixed the date and year in this certificate above written. NOTARY PUBLIC in and for the State of Washington residing at My commission expires STATE OF WASHINGTON) CITY OF YAKIMA ) ss. YAKIMA COUNTY ) On this day of ,19 , before me the undersigned, a notary public in and for the State of Washington, duly commissioned and sworn, personally appeared , known to be the individual(s) described in and who executed the foregoing instrument as their free and voluntary act and deed, for the uses and purposes therein mentioned. WITNESS my hand and official seal affixed the date and year in this certificate above written. NOTARY PUBLIC in and for the State of Washington residing at My commission expires 5 PROMISSORY NOTE $3,200.00 DATE: We, Hector M. Melina and Leticia Melina, husband and wife, jointly and severally promise to pay to the order of OFFICE OF HOUSING AND NEIGHBORHOOD CONSERVATION, a division of the Department of Community Development of the City of Yakima, a municipal corporation of the State of Washington, at Yakima, Washington, THRT:.v THnTTSANTI ¶140HTTTJTIRRTI £ pm/inn---- Tllr11 arc _ payahl e lawful money of the United States of America, with interest thereon in like money from N/A until paid, at the rate of 0 percent per annum, to be paid as follows: PAYMENT IN FULL IS DUE UPON ANY TRANSFER OF OWNERSHIP OF THE PROPERTY LOCATED AT 109 N 8TH ST, YAKIMA, WASHINGTON, TO ANY OTHER PERSON(S) OR ENTITIES OTHER THAN WHETHER SUCH TRANSFER IS RECORDED OR NOT RECORDED. In the event any payments due hereunder are not paid within ten (10)days of the due date, makers agree to pay, in addition thereto, a late charge equal to Five Dollars ($5.00) for each calendar month, or portion thereof, that such payment remains delinquent. This note is secured by Deed of Trust of even date, covering property located at 109 N 8TH ST, Yakima County, Washington, and the terms of such Deed of Trust are incorporated herein by this reference. In case of default in payment of any of the principal installments or interest, when the same shall 1J LVl11C due arld payable, the holder hereof may declare the whole amount due and payable and may immediately institute suit to collect the entire amount, including principal and interest. The maker and endorser hereon severally waive presentment for payment, protest, and notice of protest of non-payment of this note; and do hereby agree that if roll erted by an attorney after maturity and before the commencement of suit hereon, fifteen percent (15%) of the sum due and unpaid shall be added and paid as attorney's fees for such collection; and in case suit or action is instituted to collect this note or any portion thereof, do further promise and agree to pay such sum as the court may adjudge reasonable as attorney's fees in such suit or action; and the venue of such action shall lie in Yakima County. Hector M. Mesina Leticia Mesina STATE OF WASHINGTON ) City of Yakima ) SS YAKIMA COUNTY ) ON THIS DAY OF 19 , BEFORE ME THE UNDERSIGNED, A NOTARY PUBLIC IN AND FOR THE STATE OF WASHINGTON, DULY COMMISSIONED AND SWORN, PERSONALLY APPEARED Hector M Mesina AND Leticia Mesina, KNOWN TO BE THE INDIVIDUAL(S) DESCRIBED IN AND WHO EXECUTED THE FOREGOING INSTRUMENT AS THEIR FREE AND VOLUNTARY ACT AND DEED, FOR THE USES AND PURPOSES THEREIN MENTIONED. WITNESS MY HAND AND OFFICIAL SEAL AFFIXED THE DATE AND YEAR IN THIS CERTIFICATE ABOVE WRITTEN. NOTARY IN AND FOR THE STATE MY COMMISSION EXPIRES: OF WASHINGTON RESIDING AT AFTER RECORDING RETURN TO: Office of Housing and Neighborhood Conservation 112 S. 8th St. Yakima, WA 98901 [Spec. Above This Una For Recording pats] DEED OF TRUST THIS DEED OF TRUST ("Security Instrument") is made on March 2 19..9.0.... The grantor is He.CLP.r..14.,Molna...and Let, gia Mesina1 husband an wife ("Borrower"). The trustee is ...CitY...A.f...Xr k411k1.,.. Qf ;4g€ f..kltmsing..rand...Ng1g11nrho od Conservation ("Trustee"). The beneficiary is .Cd.Cyt...af..Xak,ima,,,..AepC.r 9f 9ommupity & Economic Development which is organj1ze and existing under the laws of kiasxtingCAzt., and whose address is 129 NortTi 'inn Street .Yakima...Wa tingtaxt WOW ("Lender"). Borrower owes Lender the principal sum of .,..TktigA..TftRUS.an!)...Tw4.. kAndrgd and 00000— — — — — — - - — — — — — — — — — — — — — Dollars (U.S. S 1,209.00 ) This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on ....as...per...no.te This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note,, with interest, and all renewals, extensions and modifications; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in XaJ lma. County,, Washington: Lot 12, Block 169 of Huson's Addition to North Yakima, now Yakima, Washington, as recorded in Volume "A" of Plats, page 11, Records of Yakima County, Washington. Situated in Yakima County, State of Washington. which has the address of 109 N. 8th Street Yakima Washington 98901 [Zip Code] ("P roperty Address"); [WW1 [City] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water rights and stock and all fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencutnbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. WASHINGTON—Stngle Family— FNMAIFHLMC UNIFORM INSTRUMENT Mod arTaM Waahingiun Legal Blank Inc.. Bellevue, WA Form Na 111, 17183 MATERIAL MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY FORM WHATSOEVER. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay Lender .h",ha., payments are due under the Note, until the Note is paid in full; a sum ("Fundti') equal to to on the day ni" ' pay:::e.. '�.. one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents un the Piupeity, if any; (c) yearly hazard insurance prssrume, and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items. . .i F .. . _ _ •f.i . _ the '---_.....-_.. unless Lender may not charge for holding and appiying the rungs, anaiyzing the account or verifying nuc eacww nems, uu,eaa Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that I interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or e r n;ngs on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. if under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than ; ediately prior to the sate of the Property or its acquisition by Lender, any _Funds held by Lender at the time of application as a credit against the suns secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the hen or forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by tire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier nus offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30•day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the insurance in effect until such time as the requirement for the insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. 8. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. in the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 11. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 12. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 13. Legislation Affecting Lender's Rights. If enactment or expiration of applicable laws has the effect of rendering any provision of the Note or this Security Instrument unenforceable according to its terms, Lender, at its option, may require immediate payment in full of all sums secured by this Security Instrument and may invoke any remedies permitted by paragraph 19. If Lender exercises this option, Lender shall take the steps specified in the second paragraph of paragraph 17. 14. 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 Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. if Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower's Right to Reinstate. 11 Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note had no acceleration occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited 1o, reasonable attorneys' fees, and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraphs 13 or 17. NON-UNIFORM COVENANTS, Borrower and Lender further covenant and agree as follows: 19. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraphs 13 and 17 unless applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property at public auction at a date not less than 120 days in the future. The notice shalt further inform Borrower of the right to reinstate after acceleration, the right to bring e court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale, and any other matters required to be included in the notice by applicable law. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitentitled to celled oil espeneee incurred in pursuing remedies presided to this peregrsph 19, including, but limited led .._. _.. _ �. .._ . pursuing ..p the ............o p......... ......«. P"`eg �,... ..rico pill but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give written notice to Trustee of the occurrence of an event of default and of Lender's election to cause the Property to be sold. Trustee and Lender shall take such action regarding notice of sale and shall give such notices to Borrower and to other persons as applicable law may require. After the time required by applicable law and after publication of the notice of sale, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale of the Property for a period or periods permitted by applicable law by public announcement at the time and place fixed in the notice of sale. Lender or its designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable Trustee's and attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it or to the clerk of the superior court of the county in which the sale took place. 20. Lender in Possession. Upon acceleration under paragraph 19 or abandonment of the Property, Lender (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. Any rents collected by Lender or the receiver 1 be tied to ofof m_ f the shall app firstpay payment the costs management of Property and collection of rents, including, but n01 limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Security Instrument. 21. Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security Instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. 22. Substitute Trustee. In accordance with applicable law, Lender may from time to time appoint a successor trustee to any Trustee appointed hereunder who has ceased to act. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by applicable law. 23. Use of Property. The Property is not used principally for agricultural or farming purposes. 24. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements 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)] El Adjustable Rate Rider n Condominium Rider El 2-4 Family Rider ❑ Graduated Payment Rider 0 Planned Unit Development Rider Other(s) [specify] BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security_ Instrument and in any rider(s) executed by Borrower and recorded with it. Hector M. Mesina Leticia Mesina (Space Bebow rick Llne For Acknowledgment] (Seal) —Borrower (Seal) —Borrower EXHIBIT A CITY OF YAKIMA'S DESIGNATED PROJECT'S TARGET AREA The homeownership project's target area will be designated to be all residential homes located East of 16th Avenue and within the City Limits to the South, East and North.