Fillable Printable Sample Mortgage Form - Wisconsin
Fillable Printable Sample Mortgage Form - Wisconsin
Sample Mortgage Form - Wisconsin
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 1 of 16 pages)
After Recording Return To:
WHEDA
Single F amily Loan Servicing
201 W. Washington Ave, Suite 700
Madison, WI 53703
Parcel Identifier Number
___________________________________
_____________________ [Space Above This Line For Recording Data] ____________________
MORTGAGE
DEFINITIONS
Words used in multiple sections of this document are defined below and other words are defined in
Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document
are also provided in Section 16.
(A) “Security Instrument” means this document, which is dated ___________________________,
________, together with all Riders to this document.
(B) “Borrower” is ____________________________________________________. Borrower is
the mortgagor under this Security Instrument.
(C) “Lender” is Wisconsin Housing and Economic Development Authority (“WHEDA”). Lender
is a public body corporate and politic duly created, organized and existing under the laws of Chapter
234 of the State of Wisconsin. Lender’s address is 201 West Washington Avenue, Suite 700,
Madison, WI 53703. Lender is the mortgagee under this Security Instrument.
(D) “Note” means the promissory note signed by Borrower and dated _______________________,
_____. The Note states that Borrower owes Lender _______________________________________
Dollars (U.S. $__________________) plus interest. Borrower has promised to pay this debt in
regular Periodic Payments and to pay the debt in full not later than __________________________.
(E) “Property” means the property that is described below under the heading “Transfer of Rights in
the Property.”
(F) “Loan” means the debt evidenced by the Note, plus interest, any prepayment charg es and late
charges due under the Note, and all sums due under this Security Instrument, plus interest.
(G) “Riders” means all Riders to this Security Instrument that are executed by Borrower. The
following Riders are to be executed by Borrower [check box as applicable]:
Adjustab le Rate Rider Condominium Rider Second Home Rid er
Balloon Rider Planned Unit Development Rid er Other(s) [specify] __________
1-4 Family Rider Biweekly Payment Rid er
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 2 of 16 page s)
(H) “Applicable Law” means all controlling applicable federal, state and local statutes, regulations,
ordinances and administrative rules and orders (that have the effect of law) as well as all applicable
final, non-appealable judicial opinions.
(I) “Community Association Dues, Fees, and Assessments” means all dues, fees, assessments and
other charges that are imposed on Borrower or the Property by a condominium association,
homeowners association or similar organization.
(J) “Electronic Funds Transfer” means any transfer of funds, other than a transaction originated
by check, draft, or similar paper instrument, which is initiated through an electronic terminal,
telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial
institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale
transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and
automated clearinghouse transfers.
(K) “Escrow Items” means those items that are described in Section 3.
(L) “Miscellaneous Proceeds” means any compensation, settlement, award of damages, or
proceeds paid by any third party (other than insurance proceeds paid under the coverages described
in Section 5) for: (i) damage to, or destruction of, the Property ; (ii) condemnation or other taking of
all or a ny p art of th e Prope rty ; ( iii) conveyance in lieu of condemnation; or (iv) misrepresentations
of, or omissions as to, the value and/or condition of the Property.
(M) “Mortgage Insurance” means insurance protecting Lender against the nonpayment of, or
default on, the Loan.
(N) “Periodic Payment” means the regularly scheduled amount due for (i) principal and interest
under the Note, plus (ii) any amounts under Section 3 of this Security Instrument.
(O) “RESPA” means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its
implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time
to time, or any additional or successor legislation or regulation that governs the same subject matter.
As used in this Security Instrument, “RESPA” refers to all requirements and restrictions that are
imposed in regard to a “federally related mortgage loan” even if the Loan does not qualify as a
“federally related mortgage loan” under RESPA.
(P) “Successor in Interest of Borrower” means any party that has taken title to the Property,
whether or not that party has assumed Borrower’s obligations under the Note and/or this Security
Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals,
extensions and modifications of the Note; and (ii) the performance of Borrower’s covenants and
agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby
mortgage, grant and convey to Lender, with power of sale, the following described property located
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 3 of 16 page s)
in the _________________________________ of ______________________________________:
[Type of Recording Jurisdiction] [Name of Recording Jurisdiction]
which currently has the address of _____________________________________________________
[Street]
______________________________, Wisconsin _______________ (“Property Address”):
[City] [Zip Code]
TOGETHER WI TH all the improveme nts now or hereaf ter erec ted on the property, and all
easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and
additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this
Security Instrument as the “Property.”
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed
and has the right to mortgage, grant and convey the Property and that the Property is unencumbered,
except for encumbrances of record. Borrower warrants and will defend generally the title to the
Property against all claims and demands, subject to any encumbrances of record.
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.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late
Charges. Borrower sha ll pay when due the principal of, and interest on, the debt evidenc ed by the
Note and any prepayment charges and late charges due under the Note. Borrower shall also pay
funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security
I nstrument shall be made in U.S. curr ency . H owever, if any check or other instrument r eceived by
L ender as pay ment under the Note or this Security I nstrument is returned to L ender unpaid, L ender
may require that any or all subsequent pay ments due under the Note and this Security Instrument be
made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order;
(c) certified check, bank check, treasurer’s check or cashier’s check, provided any such check is
drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity;
or (d) Electronic Funds Transfer.
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 4 of 16 page s)
Payments are deemed received by Lender when received at the location designated in the
Note or at such other location as may be designated by Lender in accordance with the notice
provisions in Section 15. Lender may return any payment or partial payment if the payment or
partial payments are insufficient to bring the Loan current. Lender may accept any payment or
partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or
prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not
obligated to apply such payments at the time such payments are accepted. If each Periodic Payment
is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender
may hold such unapplied funds until Borrower makes payment to bring the Loan current. If
Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or
return them to Borrower. If not applied earlier, such funds will be applied to the outstanding
principal balance under the Note immediately prior to foreclosure. No offset or claim which
Borrower might have now or in the future against Lender shall relieve Borrower from making
payments due under the Note and this Security Instrument or performing the covenants and
agreements secured by this Security Instrument.
2. Application of Payments or Proceeds. Except as otherwise described in this Section 2,
all payments accepted and applied by Lender shall be applied in the following order of priority:
(a) interest due under the Note; (b) pr incipal due under the Note ; (c) amounts due under Sec tion 3.
Such pay ments shall be applied to each Periodic Pay ment in the order in which it became due. Any
remaining amounts shall be applied first to late charges, second to any other amounts due under this
Security Instrument, and then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which
includes a sufficient amount to pay any late charge due, the payment may be applied to the
delinquent pay ment and the late charg e. I f more than one Periodic Pay ment is outstanding, L ender
may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to
the extent that, each payment can be paid in full. To the extent that any excess exists after the
payment is applied to the full payment of one or more Periodic Payments, such excess may be
applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment
charges and then as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due
under the Note shall not extend or postpone the due date, or change the amount, of the Periodic
Payments.
3. Funds for Escrow Items. Borrower shall pay to L ende r on the day Periodic Payments
are due under the Note, until the Note is paid in full, a sum (the “ Funds”) to provide for pay ment of
amounts due for: (a) taxes and assessments and other items which can attain priority over this
Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents
on the Property , if any ; (c) premiums for any and all insurance required by L ender unde r Section 5;
and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of
the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10.
These items are called “Escrow Items.” At origination or at any time during the term of the Loan,
Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed
by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly
furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the
Funds for Escrow I tems unless Lender waives Borrower’s obligation to pay the Funds for any or all
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 5 of 16 page s)
Escrow Items. Lender may waive Borrower’s obligation to pay to Lender Funds for any or all
Escrow Items at any t ime. Any such waiver may only be in writing. In the event of such waiver,
Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for
which pay ment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender
receipts evidencing such payment within such time period as Lender may require. Borrower’s
obligation to make such payments and to provide receipts shall for all purposes be deemed to be a
covenant and agreement contained in this Security Instrument, as the phrase “covenant and
agreement” is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a
waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights
under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay
to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time
by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to
Lender all Funds, and in such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender
to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a
lender can require under RESP A. Lender shall estimate the amount of Funds due on the basis of
current data and reasonable estimates of expenditures of future Escrow Items or otherwise in
accordance with Applicable Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency,
instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured)
or in any Federal Home Loan Bank. L ender shall apply the Funds to pay the Escrow I tems no later
than the time specified under RESPA. L ender sha ll not charge B orrower for holding and a pply ing
the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays
Borrow er interest on the F unds and Applicable L aw pe rmits Le nder to ma ke such a charg e. Unle ss
an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender
shall not be required to pa y Borr ower any interest or earning s on the Funds. B orr ower and Lender
can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to
Borrower, without charge, an annual accounting of the Funds as required by RESPA.
If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account
to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in
escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and
Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with
RESPA, but in no more than 12 monthly pay ments. If there is a deficiency of Funds held in escrow,
as defined under RESPA, Lender shall notify Borrower a s required by RESPA, and B orrower shall
pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no
more than 12 monthly payments.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly
refund to Borrower any Funds held by Lender.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and
impositions attributable to the Property which can attain priority over this Security Instrument,
leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees,
and Assessments, if any . To the extent that these items are Escrow I tems, Borrower shall pay them
in the manner provided in Section 3.
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 6 of 16 page s)
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, but only so long as Borrower is performing such agreement;
(b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings
which in Lender’s opinion operate to prevent the enforcement of the lien while those proceedings are
pending, but only until such proceedings are concluded; 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 can attain priority over this
Security Instrument, Lender may give Borrower a notice identify ing the lien. Within 10 days of the
date on which that notice is given, Bor rower shall satisfy the lien or take one or more of the actions
set forth above in this Section 4.
Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or
reporting service used by Lender in connection with this Loan.
5. Property Insurance. Borrower shall keep the improvements now existing or hereafter
erected on the Property insured against loss by fire, hazards included within the term “extended
coverage,” and any other hazards including, but not limited to, earthquakes and floods, for which
Lender requires insurance. This insurance shall be maintained in the amounts (including deductible
levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding
sentences can change during the term of the Loan. The insurance carrier providing the insurance
shall be chosen by Borrower subject to Lender’s right to disapprove Borrower’s choice, which right
shall not be exercised unre asonably. Le nder may require Borrow er to pay, in connection with this
Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services;
or (b) a one-time charge for flood zone determination and certification services and subsequent
charges each time remappings or similar changes occur which reasonably might affect such
determination or certification. Borrower shall also be responsible for the payment of any fees
imposed by the Federal Emergency Management Agency in connection with the review of any flood
zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain
insurance coverage, at Lender’s option and Borrower’s expense. Lender is under no obligation to
purchase any particular type or amount of cove rag e . Ther efor e, such c overa g e shall cove r Lender,
but might or might not protect Borrower, Borrower’s equity in the Property, or the contents of the
Property , ag ainst any risk, hazard or liability and might provide greater or lesser c overage than was
previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained
migh t sig nif ica ntly exceed the cost of insurance that B orrower c ould have obtained. Any amounts
disbursed by L ender under this Section 5 shall become additional debt of Borrowe r secured by this
Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement
and shall be pay able, with such interest, upon notice from L ender to Borrower requesting pay ment.
All insurance policies required by Lender and renewals of such policies shall be subject to
Lender’s right to disapprove such policies, shall include a standard mortgage clause, and shall name
Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the
policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all
receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage,
not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 7 of 16 page s)
include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss
payee.
I n the event of loss, Borrow er sha ll give pr ompt notice to the insuranc e ca rrie r and Lender.
Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower
otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was
required by Lender, shall be applied to restoration or repair of the Property , if the restoration or repair
is economically feasible and Lender’s security is not lessened. During such repair and restoration
period, Lender shall have the right to hold such insurance proceeds until Lender has had an
opportunity to inspect such Property to ensure the work has been completed to Lender’s satisfaction,
provided that such inspection shall be undertaken promptly . L ender may disburse proceeds for the
repairs and restoration in a single payment or in a series of progress payments as the work is
completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on
such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on
such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be
paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or
repair is not economically feasible or Lender’ s secur ity would be lessened, the insura nce proce eds
shall be applied to the sums secured by this Security Instrument, whether or not then due, w ith the
excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for
in Section 2.
If Borrower abandons the Property, Lender may file, negotiate and settle any available
insurance claim and related matters. If Borrower does not respond within 30 day s to a notice fr om
L ender that the insurance carrier has offered to settle a claim, then L ender may negotiate and settle
the claim. The 30-day period will begin when the notice is given. In either event, or if Lender
acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender
(a) Borrower’s rights to any insurance proceeds in an amount not to exceed the amounts unpaid
under the Note or this Security Instrument, and (b) any other of Borrower’s rights (other than the
right to any refund of unear ned pre miums paid by Borrow er) under a ll insurance policies cover ing
the Property, insofar a s such rig hts are applicable to the cover ag e of the Proper ty. Lender may use
the i nsuran ce proceeds ei ther t o repair o r restore t he Property or to pay amounts unpaid under the
Note or this Security Instrument, whether or not then due.
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower’s
principal residence within 60 days after the execution of this Security Instrument and shall continue
to occupy the Property as Borrower’s principal residence for at least one year after the date of
occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably
withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.
7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower
shall not destroy , damage or impair the Property , allow the Property to deteriorate or commit waste
on the Property. Whether or not B orrowe r is residing in the Proper ty, B orrow er sha ll maintain the
Property in order to prevent the Property from deteriorating or decreasing in value due to its
condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically
feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or
damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking
of, the Property , Borrower shall be responsible for repairing or restoring the Property only if Lender
has released proceeds for such purposes. Lender may disburse proceeds for the repairs and
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 8 of 16 page s)
restoration in a sing le pay me nt or in a series of prog ress payments as the work is completed. If the
insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is
not relieved of Borrower’s obligation for the completion of such repair or restoration.
L ender or its agent may make reasonable entries upon and inspections of the Property . If it
has reasonable cause, L ender may inspect the interior of the improvements on the Property . L ender
shall give Borrower notice at the time of or prior to such an interior inspection specifying such
reasonable cause.
8. Borrower’s Loan Application. Borrower shall be in default if, during the Loan
application process, Borrower or any persons or entities acting at the direction of Borrowe r or with
Borrower’s knowledge or consent gave materially false, misleading, or inaccurate information or
statements to Lender (or failed to provide Lender with material information) in connection with the
Loan. Material representations include, but are not limited to, representations concerning Borrower’s
occupancy of the Property as Borrower’s principal residence.
9. Protection of Lender’s Interest in the Property and Rights Under this Security
Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this
Security Instrument, (b) there is a legal proceeding that might significantly affect Lender’s interest in
the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy,
probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this
Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property ,
then Lender may do and pay for whatever is reasonable or appropriate to protect Lender’s interest in
the Property and rights under this Security Instrument, including protecting and/or assessing the
value of the Property , and securing and/or repairing the Property . L ender’s actions can include, but
are not limited to: (a) paying any sums secured by a lien which has priority over this Security
Instrument; (b) appearing in court; and (c) paying Reasonable Attorneys’ Fees (as defined in Section
25) to protect its interest in the Property and/or rights under this Security Instrument, including its
secure d position in a bankruptcy proceeding. Sec uring the Proper ty include s, but is not limited to,
entering the Property to make repairs, c hange loc ks, replace or boa rd up doors and windows, dra in
water from pipes, eliminate building or other code violations or dangerous conditions, and have
utilities turned on or off. Although Lender may take action under this Section 9, Lender does not
have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no
liability for not taking any or all actions authorized under this Section 9.
Any amounts disbursed by Lender under this Section 9 shall become additional debt of
Borrower secured by thi s Securit y Instrum ent. These amoun ts shall bear interest at t he Note rate
from the date of disbursement and shall be payable, with such interest, upon notice from L ender to
Borrower requesting payment.
If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of
the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge
unless Lender agrees to the merger in writing.
10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making
the L oa n, B orrowe r shall pay the premiums required to maintain the Mortg ag e Insurance in ef fec t.
I f, for any rea son, the Mortgage I nsurance coverage required by Lender ceases to be available from
the mortgage insurer that previously provided such insurance and Borrower was required to make
separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the
premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 9 of 16 page s)
in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance
previously in effect, from an alternate mortgage insurer approved by Lender. If substantially
equivalent Mortgage Insura nce coverag e is not available, Borrowe r shall continue to pay to L ender
the amount of the separately designated payments that were due when the insurance coverage ceased
to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in
lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that
the L oan is ultimately pa id in full, and L ender shall not be requir ed to pay Borrower any intere st or
earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage
Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer
selected by Lender again becomes available, is obtained, and Lender requires separately designated
payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a
condition of making the L oan and B orrower wa s required to make se parately desig nated payments
toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain
Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender’s requirement
for Mortgage Insurance ends in accordance with any written agreement between Borrower and
Lender providing for such termination or until termination is required by Applicable Law. Nothing
in this Section 10 affects Borrower’s obligation to pay interest at the rate provided in the Note.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain
losses it may i ncur if Borrower does not repay the Loan as agreed. Borrower is not a party to the
Mortgage Insurance.
Mortga g e insurer s evalua te their total risk on all such insura nce in f orce from time to time,
and may enter into agreements with other parties that share or modify their risk, or reduce losses.
These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the
other party (or parties) to these agreements. These agreements may require the mortgage insurer to
make pay ments using any source of funds that the mortgage insurer may have available (which may
include funds obtained from Mortgage Insurance premiums).
As a result of these agreements, Lender, any purchaser of the Note, another insurer, any
reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly )
amounts that derive from (or might be characterized as) a portion of Borrower’s payments for
Mortga ge I nsura nce, in exchang e for sharing or modify ing the mortga ge insurer’s risk, or reducing
losses. If such agreement provides that an affiliate of Lender takes a share of the insurer’s risk in
exchange for a share of the pr emiums paid to the insurer, the arrangement is often termed “captive
reinsurance.” Further:
(a) Any such agreements will not affect the amounts that Borrower has agree d t o pay
for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase
the am ount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to
any refund.
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 10 of 16 page s)
(b) Any such agreements will not affect the rights Borrower has – if any – with respect
to th e Mortga ge I n su ran ce u n der t he H omeow n ers Protecti on Act o f 19 98 o r an y other law.
These rights may include the right to receive certain disclosures, to request and obtain
cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated
automatically, and/or to receive a refund of any Mortgage Insurance premiums that were
unearned at the time of such cancellation or termination.
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are
hereby assigned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or
repair of the Property, if the restoration or repair is economically feasible and Lender’s security is not
lessened. During such repair and restoration period, Lender shall have the right to hold such
Miscellaneous Proceeds until L ender has ha d an opportunity to inspect such Proper ty to ensure the
work has been completed to Lender’s satisfaction, provided that such inspection shall be undertaken
promptly. L e nder ma y pay for the re pairs and r estora tion in a single disburse ment or in a ser ies of
progress payments as the work is completed. Unless an agreement is made in writing or Applicable
Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay
Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not
economically feasible or Lender’s security would be lessened, the Miscellaneous Proceeds shall be
applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if
any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in
Section 2.
In the event of a total taking, destruction, or loss in value of the Property , the Miscellaneous
Proceeds shall be applied to the sums secured by this Security I nstrument, whether or not then due,
with the excess, if any, paid to Borrower.
I n the event of a partial taking, destruction, or loss in value of the Property in which the fair
market value of the P roperty immediately before the partial taking, destruction, or loss in value is
equal to or greater than the amount of the sums secured by this Security Instrument immediately
before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in
writing, the sums secured by this Security Instrument shall be reduced by the amount of the
Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums
secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair
market value of the Property immediately before the partial taking, destruction, or loss in value. Any
balance shall be paid to Borrower.
I n the event of a partial taking, destruction, or loss in value of the Property in which the fair
market value of the Property i mmediately before the partial taking, destruction, or loss in value is
less than the amount of the sums secured immediately before the partial taking, destruction, or loss in
value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be
applied to the sums secured by this Security Instrument whether or not the sums are then due.
I f the Proper ty is abandoned by Borrower, or if, after notice by L ender to Bor rower that the
Opposing Party (as defined in the next sentence) offers to make an award to 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 Miscellaneous Proceeds either to restoration or repair of
the Property or to the sums secured by this Security Instrument, whether or not then due. “Opposing
WISCONSIN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For m 3050 1/01 (page 11 of 16 page s)
Party” means the third party that owes Borrower Miscellaneous Proceeds or the party against whom
Borrower has a right of action in regard to Miscellaneous Proceeds.
Borrower shall be in default if any action or proceeding, whether civil or cr iminal, is begun
that, in Lender’s judgment, could result in forfeiture of the Property or other material impairment of
Lender’s interest in the Property or rights under this Security Instrument. Borrower can cure such a
default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or
proceeding to be dismissed with a ruling that, in Lender’s judgment, precludes forfeiture of the
Property or other material impairment of Lender’s interest in the Property or rights under this
Securi ty In strument . The proceeds of any award or claim for damages that are attributable to the
impairment of Lender’s interest in the Property are hereby assigned and shall be paid to Lender.
All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall
be applied in the order provided for in Section 2.
12. 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 Borrower or any Successor in Interest of Borrower shall not operate to release
the lia bility of Borrower or any Successors in I nterest of B orrower. L ender shall not be required to
commence proceedings against any Successor in Interest of Borrower or to 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 any Successors in Interest of Borrower. Any
forbearance by Lender in exercising any right or remedy including, without limitation, Lender’s
acceptance of payments from third persons, entities or Successors in Interest of Borrower or in
amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right
or remedy.
13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower
covenants and agrees that Borrower’s obligations and liability shall be joint and several. However,
any Borr ower who co-sig ns this Security I nstrument but does not execute the Note (a “co-signer”):
(a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer’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 can
agree to extend, modify, forbear or make any accommodations with regard to the terms of this
Security Instrument or the Note without the co-signer’s consent.
Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes
Borrower’s obligations under this Security I nstrument in writing, and is approved by L ender, shall
obtain all of Borrower’s rights and benefits under this Security Instrument. Borrower shall not be
released from Borrower’s obligations and liability under this Security Instrument unless Lender
agrees to s uch r eleas e in wri ti ng. Th e coven ant s an d agreemen ts of t hi s S ecu rit y Instrum ent s hal l
bind (except as provided in Section 20) and benefit the successors and assigns of Lender.
14. Loan Charges. Lender may charge Borrower fees for services performed in connection
with Borrower’s default, for the purpose of protecting Lender’s interest in the Property and rights
under this Security Instrument, including, but not limited to, attorneys’ fees, property inspection and
valuation fees. In regard to any other fees, the absence of express authority in this Security
Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the
charging of such fee. Lender may not charge fees that are expressly prohibited by this Security
Instrument or by Applicable Law.
