Residential Mortgage Agreement

RESIDENTIAL MORTGAGE AGREEMENT

THIS RESIDENTIAL MORTGAGE AGREEMENT (this Agreement) is made as of by and between Borrower Name: whose address is (hereinafter Mortgagor), and Lender Name: whose address is (hereinafter Mortgagee).

RECITALS

WHEREAS, Mortgagor has executed and delivered to Mortgagee a promissory note in the principal sum of $ (the Note), bearing interest at the rate of per annum, payable in accordance with the terms of the Note, and evidencing a loan made by Mortgagee to Mortgagor on .

WHEREAS, to secure payment of the Note and performance of Mortgagor's obligations under this Agreement and the Note, Mortgagor desires to grant a mortgage and security interest in and to the real property located at , legally described as:

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the security interest granted in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby covenant and agree as follows:

1. DEFINITIONS

For purposes of this Agreement, the following terms shall have the following meanings: "Note" means the promissory note described in the Recitals; "Property" means the real property described above and all improvements thereon; "Default" means an event described in Section 7 of this Agreement.

2. GRANT OF MORTGAGE; SECURITY

Mortgagor, as grantor, hereby mortgages, grants, conveys and assigns to Mortgagee, as security for payment of the Note and performance of Mortgagor's obligations, the Property together with all improvements, fixtures, easements, rights, and appurtenances thereto (collectively, the Security). This grant constitutes a first priority mortgage lien, subject only to liens and encumbrances of record that are expressly permitted by Mortgagee in writing.

3. LOAN TERMS; PAYMENT

Mortgagor promises to pay the principal and interest and to comply with all terms of the Note. The principal balance of the Note is $. The monthly payment is $, commencing on and continuing until the maturity date of .

Mortgagor may prepay the Note in whole or in part without penalty except as provided in the Note. Any prepayment shall be applied in accordance with the Note and applicable law.

4. INTEREST, LATE CHARGES AND DEFAULT INTEREST

Interest shall accrue at the rate set forth in the Note. In addition to any other remedy, if any payment required under this Agreement or the Note is not paid within days after its due date, Mortgagor shall pay a late charge of as liquidated damages. Upon Default, Mortgagee may declare the entire unpaid principal and accrued interest immediately due and payable and, where permitted by law, may impose default interest at a rate of above the Note rate.

5. TAXES, INSURANCE AND ESCROW

Mortgagor shall pay when due all real estate taxes, assessments, and other governmental charges against the Property and shall maintain hazard insurance insuring Mortgagee's interest in an amount not less than the replacement cost of improvements. Mortgagor shall maintain the following escrow or impound account: . Mortgagee may, at its option, require Mortgagor to deposit monthly sums into escrow to pay taxes and insurance.

6. MAINTENANCE, USE AND ALTERATIONS

Mortgagor shall keep the Property in good repair and shall not commit or permit waste, deterioration or disrepair. Mortgagor shall not make substantial alterations, additions or demolitions without Mortgagee's prior written consent, which consent shall not be unreasonably withheld where the alteration does not materially impair the security.

7. DEFAULT; ACCELERATION; REMEDIES

The occurrence of any of the following shall constitute an Event of Default: failure to make any payment when due; failure to perform any covenant or agreement herein after written notice and a reasonable cure period where required by applicable law; death of Mortgagor when personal liability survives; or any representation or warranty of Mortgagor proving false or misleading in any material respect. Upon Default, Mortgagee shall have all rights and remedies provided by law and equity, including acceleration of the debt, foreclosure of the Security, entry, possession and sale of the Property, and recovery of costs, expenses and attorneys' fees.

8. TRANSFER OF PROPERTY

Mortgagor shall not convey, lease or otherwise transfer an interest in the Property without Mortgagee's prior written consent, which shall not be unreasonably withheld for transfers to a co-owner or a trust for estate planning purposes. Any permitted transferee shall assume in writing Mortgagor's obligations under the Note and this Agreement if required by Mortgagee.

9. INSURANCE PROCEEDS; REPAIR OF DAMAGE

In the event of loss or damage to the Property, any insurance proceeds shall be applied to restoration of the Property unless Mortgagee elects, in its sole discretion, to apply proceeds to the outstanding indebtedness. Mortgagor shall give prompt notice to Mortgagee of any loss or damage.

10. ASSIGNMENT; SUCCESSORS

Mortgagee may assign its interest in the Note and this Agreement. This Agreement shall bind and benefit the parties and their successors, assigns, heirs and legal representatives.

11. NOTICES

All notices, demands and communications required or permitted hereunder shall be in writing and shall be delivered by personal delivery, nationally recognized overnight courier, or certified mail, return receipt requested, to the addresses set forth above or to such other address as a party shall specify by written notice. Notices shall be effective upon receipt.

12. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state where the Property is located. The parties submit to the exclusive jurisdiction of the courts located in such state for any litigation arising out of or relating to this Agreement.

13. ENTIRE AGREEMENT

This Agreement, together with the Note and any security instruments and loan documents executed in connection herewith, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

14. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

15. AMENDMENTS; WAIVER

No amendment to or waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom enforcement is sought. No waiver of any breach shall constitute a waiver of any other breach.

16. COUNTERPARTS; RECORDING

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Mortgagor authorizes Mortgagee to record this Agreement or a memorandum thereof in the official public records of the county in which the Property is located.

17. REPRESENTATIONS AND WARRANTIES

Mortgagor represents and warrants that: (a) Mortgagor is the lawful owner of the Property free of all liens and encumbrances except those disclosed to and approved in writing by Mortgagee; (b) Mortgagor has full power, right and authority to execute and deliver this Agreement; and (c) no action, suit or proceeding is pending or, to Mortgagor's knowledge, threatened which would affect Mortgagor's title to the Property or jeopardize performance hereunder.

18. MISCELLANEOUS

The headings in this Agreement are for convenience only and shall not affect the interpretation of this Agreement. Time is of the essence with respect to Mortgagor's obligations to make payments and to perform covenants herein.

NOTICES OF RECORD

Recording information (county): . Recording reference number: .

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