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Agenda 11/15/2016 Item #16D 2 16.D.2 11/15/2016 EXECUTIVE SUMMARY Recommendation to authorize the Chairman to sign one satisfaction of mortgage for an owner- occupied affordable housing unit that has satisfied the 5 year affordability period for which no repayment is required to the Collier County HOME Investment Partnership Program in the amount of$7,198.67. OBJECTIVE: To support the affordability of housing in Collier County by assisting first-time home buyers with down payment assistance and owner-occupied single-family residential rehabilitation programs. CONSIDERATIONS: Collier County offers assistance to individuals to make repairs to owner-occupied housing units through state and federal grants, such as the federal HOME Investment Partnership Program (HOME). In conformance with the requirements of HOME, contained in 24 CFR 92.254, homeowners receiving grant funds not exceeding$15,000 must meet affordability requirements for five years. If the property is occupied as the principal residence during the initial five-year,the assistance provided is forgiven. The following table details one client who has fulfilled the obligations of the HOME assistance provided and forgive and therefore is entitled to a satisfaction of mortgage. Name(s) Grant/ Address Date of Recording Date Loan Affordability Mortgage Date OR Assistance Amount Period Book&PG Forgiven being Satisfied Carlos HOME 5year 2875 35th 11/07/2011 11/15/2011 11/07/2016 $7,198.67 Vallejo Ave NE 4736/3087 Naples 34120 TOTAL $7,198.67 Approval of this item will authorize the Chairman to sign the aforementioned satisfaction of mortgage and the executed document shall be recorded in the Public Records of Collier County,Florida. FISCAL IMPACT: There is no fiscal impact associated with this action. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for Board approval.-JAB STAFF RECOMMENDATION: That the Board of County Commissioners approves and authorizes the Chairman to sign one satisfaction of mortgage for an owner-occupied affordable housing unit that has satisfied the terms of assistance. Prepared By: Wendy Klopf, Operations Coordinator,Community&Human Services Division Packet Pg. 886 16.D.2 11/15/2016 ATTACHMENT(S) 1. Satisfaction of Mortgage (PDF) 2.Vallejo Recorded Mortgage&Promissory Note (PDF) Packet Pg. 887 16.D.2 11/15/2016 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.2 Item Summary: Recommendation to authorize the Chairman to sign one satisfaction of mortgage for an owner-occupied affordable housing unit that has satisfied the 5 year affordability period for which no repayment is required to the Collier County HOME Investment Partnership Program in the amount of $7,198.67. Meeting Date: 11/15/2016 Prepared by: Title: Operations Coordinator—Community&Human Services Name: Wendy Klopf 10/12/2016 4:45 PM Submitted by: Title: Division Director-Cmnty&Human Svc—Public Services Department Name: Kimberley Grant 10/12/2016 4:45 PM i 1 Approved By: Review: } 0 Community&Human Services Kristi Sonntag Additional Reviewer Completed 10/12/2016 4:59 PM Community&Human Services Maggie Lopez Additional Reviewer Completed 10/13/2016 8:17 AM Community&Human Services Leslie Davis Additional Reviewer Completed 10/14/2016 10:54 AM Public Services Department Amanda O.Townsend Additional Reviewer Completed 10/17/2016 8:12 AM Public Services Department Kimberley Grant Additional Reviewer Completed 10/25/2016 4:52 PM Public Services Department Hailey Margarita Alonso Level 1 Division Reviewer Completed 10/26/2016 2:57 PM Grants Erica Robinson Level 2 Grants Review Completed 10/26/2016 3:20 PM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 10/28/2016 8:44 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 11/01/2016 8:52 AM County Attorney's Office Jeffrey A.Klatzkow Level 3 County Attorney's Office Review Completed 11/01/2016 8:56 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/01/2016 9:06 AM Grants Therese Stanley Additional Reviewer Completed 11/02/2016 12:57 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 11/06/2016 5:47 PM Board of County Commissioners MaryJo Brock Meeting Pending 11/15/2016 9:00 AM Packet Pg. 888 16.D.2.a Prepared by:Wendy Klopf Collier County Community and Human Services 3339 E.Tamiami Trail Naples,FL 34112 THIS SPACE FOR RECORDING SATISFACTION OF MORTGAGE KNOW ALL MEN BY THESE PRESENTS: That COLLIER COUNTY, whose post office address is 3299 E TAMIAMI TRAIL, NAPLES, FLORIDA 34112, the owner(s) and holder(s) of a certain 0. Mortgage executed by Carlos Vallejo to COLLIER COUNTY, recorded on 11/15/2011 In Official Records Book 4736 ,Page 3087 , of the Public Records of a) Collier County,Florida, securing a principal sum of$7,198.67 and certain promises and a) obligations set forth in said Mortgage,upon the property described in the aforementioned mortgage. o 2 COLLIER COUNTY hereby acknowledges satisfaction of said Mortgage, and surrenders the same as 46 cancelled, and hereby directs the Clerk of said Circuit Court to cancel the same of record. o w ca 4- N This Satisfaction of Mortgage was approved by the Board of County Commissioners on ,2016,Agenda Item Number w U) w 2 C ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E.BROCK,CLERK OF COLLIER COUNTY,FLORIDA By: By: ,DEPUTY CLERK m Donna Fiala,Chairman a ea a) Approval for form and legality: 2 46 0 Jennifer A.Belpedio s'27 Assistant County Attorney � o N f4 () w C E t V as r+ r+ Packet Pg. 889 16.D.2.b INSTR 4627016 OR 4736 PG 3087 RECORDED 11/15f2011 4:21 PM PAGES 4 • DWIGHT E.BROCK,CLERK OF THE CIRCUIT COURT COWER COUNTY FLORIDA • DOC@.35$25.20 REC$35.50 OBLD$7,198.67 Project Number NM 09-10-004 MORTGAGE THIS MORTGAGE("Security Instrument")is given on 11f7/2011 The Mortgagor is: Carlos,Vallejo,a married man ("Borrower"). This Security Instrument is given to Collier County ("Lender"),which is organized and existing under the laws of the United States of America,and whose address is 3339 E.Tamiami Trail Suite 211,Naples,Florida 34112. Borrower owes Lender the sum of Seven Thousand One Hundred Ninety Eight Dollars and 67/100($7,198.67).This debt is evidenced by Borrower's Note dated the same date as this Security Instrument("Mortgage"),which provides for the full k`e debt,if not paid earlier,due and payable on transfer of title,sale of property,refinance,or loss of homestead exemption. This Mortgage will be forgiven at the five(5th)year anniversary date of mortgage.This Security Instrument secures to Lender:(a)the repayment of the debt evidenced by the mortgage,and all renewals,extensions and modifications;(b)the payment of all other o sums,under paragraph 7 to protect the security of the Security Instrument;and(c)the performance of Borower's covenants and agreements under this Security Instrument and the Mortgage For this purpose,Borrower does hereby,convey to Lender the following described property located in Collier County,Florida. a) co More particularly described as: C The East 75 Feet of the West 150 Feet of Tract 93,Golden Gate Estates,unit No.64,according 2 to the Plat thereof recorded in Plat Book 7,page 64,of the Public Records of Collier County,Florida. `o Folio#39898920004 0 Address: 2875 35th Ave NE Naples,FL 34120 o •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 hereaftera part of the property.The Security Instrument shall also cover all replacements and additions.All of the foregoing is referred to in this u_ Security Instrument as the"Property". N BORROWER COVENANTS that Borrower is lawfully seized of the property described above,and has the right to W mortgage,the Property and that the Property is unencumbered,except f of record.Borrower warrants and will defend generally the o title to the Property against all claims and demands,subject to any encumbrances of record. z S THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variation by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: csa 1. TERMS: The Borrower)of this Mortgage have been granted a°Defered Repayment Loan,"the terms of which are intended to ensure that any Home Investment Partnership Act(HOME)funds utilized to facilitate the ro rehabilitation of this Property are recaptured and utilized to assist another lower-income home owner with rehabilitation unless the o affordability requirements are met. The terms of this Mortgage do not require that payments be made as long as the makers comply with the following conditions and provisions: 0 Borrower shall occupy the Property as their principal residence. Subletting of the Property is not allowed even on a a. temporary basis. Failure to abide by the principal occupancy requirements can result in foreclosure. The Borrower shall be off required to submit proof of principal occupancy to Collier County on an annual basis beginning on the anniversary of the first-year w occupancy and annually until the end of the Five-year amortization period. Such proof shall include:proof of homestead exemption,copies of paid receipts for taxes and insurance,and copies of insurance certificates for owner-occupied Property listing Collier County as Mortgage Holder. If the Borrower fails to provide sufficient proof of occupancy in a timely manner,the Lender o may contract with an independent title company to perform the necessary title re-certification,the cost of which will be added to the 2 principal amount of this Mortgage. In the event the Borrower cease principal occupancy,transfer,sell or in any manner dispose of all or a portion of the Property which is subject to the Mortgage prior to fulfilling the agreement and the end of the amortization,then the principal amount c of this Mortgage shall become immediately due and payable. v The Borrower shall not refinance the indebtedness secured by this Mortgage.The Lender prior to granting approval shall review the proposed refinancing in order to ensure that there will be sufficient equity after the proposed refinancing to recapture the HOME monies. The Lender consents to any agreement or arrangement in which the First Lender waives,postpones,extends, d reduces or modifies any provisions of the First Note or the First Mortgage,including any provision requiring the repayment of io money. > The Borrower shall immediately c.ontact the Lender to obtain approval should they desire to transfer,assign,sell or in any +j manner dispose of all or a portion of the Property,which is subject to this Mortgage prior to fulfilling this agreement and the end of aCi the amortization period.Contacting the Lender will also ensure that the Security Instrument may be appropriately reduced incrementally for each year of the affordability period,according to an amortization schedule based on the anniversary date of the v date the mortgage was recorded.The Lender shall have the authority to disapprove any disposal where the proceeds of such would be less than fair-market value as determined by an independent appraisal by a State Certified Residential Appraiser. f there is no net proceeds from the foreclosure,repayment is not required and HOME requirements are considered to be satisfied. In the event of the death of the Borrower(s)prior to expiration of the,affordability period has been attained,all of the debt will be forgiven. 2.Taxes.The Mortgagor will pay all taxes,assessments,sewer rents or water rates prior to the accrual of any penalties or interest thereon. The Mortgagor shall pay or cause to be paid,as the same respectively become due,(A)(1)all taxes and governmental charges of any kind whatsoever which may at any time be lawfully assessed or levied against or with respect to the Property,(2)all utility and other charges,including"service charges",incurred or imposed for the operation,maintenance,use,occupancy,upkeep and improvement of the Property,and(3)all assessments or other governmental charges that may lawfully be paid in installments over a period of years,the Mortgagor shall be obligated under the Mortgage to pay or cause to be paid only such installments as are required to be paid during the term of the Mortgage,and shall,promptly after the payment of any of the foregoing,forward to Mortgagee evidence of such payment. 3: Application of Payments. Unless applicable law provides otherwise,all payments received by.Lender shall be applied;:first,to principal due;and last,to any late charges due under the Mortgage; • Page 1 of 4 Packet Pg.890 16.D.2.b 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 promptly furnish to Lender all notices of amounts to be paid under this paragraph,and all 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 lien;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 the 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 issuance of notice. 5. Hazard or 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 floods or flooding,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.If Borrower fails to maintain coverage described above,Lender may,at Lender's option,obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7,At all times that the Mortgage is outstanding, the Mortgagor shall maintain insurance with respect to the Premises against such risks and for such amounts as are customarily CD insured against and pay,as the same become due and payable,all premiums in respect thereto,including,but not limited to,all- c risk insurance protecting the interests of the Mortgagor and Mortgagee against loss or damage to the Premises by fire,lightning, r`! and other casualties customarily insured against(including boiler explosion,if appropriate),with a uniform standard extended oti 0. 0 coverage endorsement,including debris removal coverage. Such insurance at all times to be in an amount not less than the full replacement cost of the Premises,exclusive of footings and foundations. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.Lender co shall have the right to hold the policies and renewals. If Lender requires,Borrower shall promptly give to Lender all receipts of paid cz premiums and renewal notices. In the event of loss,Borrower shall give prompt notice to the insurance carrier and Lender.Lender t may make proof of loss if not made promptly by Borrower. o Unless Lender and Borrower otherwise agree in writing,insurance proceeds shall be applied to restoration or repair of s` the Property damaged,if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration o or repair is not economically feasible or Lender's security would be lessened,the insurance proceeds shall be applied to the sums o secured by the Security Instrument,whether or not then due,with any excess paid to Borrower. If Borrower abandons the o Property,or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim,then ro Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured N by this Security Instrument,whether or not then due.The 30-day period will begin when the notice is mailed. Unless Lender and ra Borrower otherwise agree in writing,any application of proceeds to principal shall not extend or postpone the due date of the N monthly payments referred to in paragraph 1 or change the amount of the payments. If under paragraph 21 the Property is W 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 bythis SecurityInstrument immediatelyN prior to the acquisition. w 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application, a Leaseholds. Borrower shall occupy,establish,and use the Propert�`a,s Borrower's principal residence within sixty days after the 0 execution of this Security Instrument and shall continue to occupy llbproperty as Borrower's principal residence for at least the = affordability period r after the date of occupancy, unless Lendet`•",therwise agrees in writing,which consent shall not be unreasonably withheld,or unless extenuating circumstances existwtuch are beyond Borrower's control. Borrower shall not destroy damage or impair the Property,allows the Property to deteriorate,or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding,whether civil or criminal,is begun that in Lender's good faith judgment could result in forfeiture y of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower q 0 may cure such a default and reinstate,as provided in paragraph 18,by causing the action or proceeding to be dismissed with a Z ruling that,in Lender's good faith determination,precludes forfeiture of the Borrower's interest in the Property or other material L" impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if o Borrower,during the loan application process,gave materially false or inaccurate information or statements to Lender(or failed to o, provide Lender with any material information)in connection with the loan evidenced by the Mortgage,including,but not limited to, E representations conceming Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on 2 leasehold,Borrower shall comply with all the provision of the lease. If Borrower acquires fee title to the Property,the leasehold and a_ thefee title shall not merge unless Lender agrees to the merger in writing. o5 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements a) contained in this Security Instrument,or there is a legal proceeding that may significantly affect Lender's rights in the Property rn (such as a proceeding in bankruptcy,probate,for condemnation or forfeiture or to enforce laws or regulations),then Lender may do t and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may o include paying any sums secured by a lien,which has priority over this Security Instrument,appearing in court,paying reasonable 2 attorneys'fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7,Lender a does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower -oa secured by this Security Instrument. . o 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this aao ) Security Instrument,Borrower shall pay the premiums required to maintain the mortgage insurance in effect.If,for any reason,the f mortgage insurance coverage required by Lender lapses or ceases to be in effect,Borrower shall pay the premiums required to0 obtain coverage substantially equivalent to the mortgage insurance previously in effect,at a cost substantially equivalent to the cost °r to Borrower of the mortgage insurance previously in effect,from an alternate mortgage insurer approved by Lender. If substantially "iii— equivalent equivalent mortgage insurance coverage is not available,Borrower shall pay to Lender each month a sum equal to one-twelfth of } the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. c Lender will accept,use and retain these payments as a loss reserve in lieu of mortgage insurance.Loss reserve payments may no 2 longer be required,at the option of Lender,if mortgage insurance coverage(in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained.Borrower shall pay the premiums required to c) maintain mortgage insurance in effect,or to provide a loss reserve, until the requirement for mortgage insurance ends in w accordance with any written agreement between Borrower and Lender or applicable law. 4 9. 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. 10.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,in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the taking,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. In the event of a partial taking of the Property in which the fair market value of the Property (31 immediately before the taking is less than the amount of the sums secured immediately for the taking,unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides,the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are 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 or change the amount of such payments. Page 2 of 4 Packet Pg.891 16.D.2.b 11.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. 12.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 anyaccommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13.Loan Charges.If the loan secured by this Security Instrument is subject to a law which sets mabmum 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. m Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. c If a refund reduces principal,the reduction will be treated as a partial prepayment without any prepayment charge under the Note. N 14.Notices.Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it c by first class mail unless applicable law required 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 to Borrower or Lender when given as provided in this paragraph. e 15. Governing Law;Severability. Federal law and the law of the jurisdiction in which the property is located shall coc govern this Security Instrument In the event that any provision or clause of this Security Instrument or the Note conflicts with r applicable law,such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect o 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. o 17.Transfer of the Property or a Beneficial Interest in Borrower.If all or any part of the Property or any interest in it =o 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 w Instrument. However,Lender shall not exercise this option if federal law as of the date of this Security Instrument prohibits N exercise. If Lender exercised this option,Lender shall give Borrower notice of acceleration.The notice shall provide a period of .c not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this co Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period,Lender may invoke any remedies W permitted by this Security Instrument without further notice or demand on Borrower. co 18. Borrower's Right to Reinstate. If Borrower meets certain conditions,Borrower shall have the right to have w enforcement of this Security Instrument discontinued at any time prior to the earlier of:(a)5 days(or such other period as 2 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 as if no acceleration had occurred;(b)cures and ,)— default of any other covenants or agreements;(c)pays all expenses 1- incurred in enforcing this Security Instrument,including,but not limited to,reasonable attomey's 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 y obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower,this p Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, z this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note;Change of Loan Servicer. The Note or a partial interest in the Note(together with this Security o in Instrument)may be sold one or more times without prior notice to Borrower.A sale may result in a change in the entity(known as rn the"Loan Service()that collects monthly payments due under the Note and this Security Instrument. There also may be one or E more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer,Borrower will be 2 given written notice of the change in accordance with paragraph 14 and applicable law.The notice will state the name and address a of the new Loan Servicer and the address to which payments should be made.The notice will also contain any other information ott required by applicable law. 07 20.Hazardous Substances.Borrower shall not cause or permit the presence,use,disposal,storage,or release of any a Hazardous Substances on or in the Property. Borrower shall not do,nor allow anyone else to do,anything affecting the Property that is in violation of any Environmental Law.The preceding two sentences shall not apply to the presence,use,or storage on the 0 Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property.Borrower shall promptly give Lender written notice for any investigation,claim,demand, a co lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous -aa` Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns,or is notified by any governmental o or regulatory authority,that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, y Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law.As used in this paragraph 20, EY "Hazardous Substances"are those substances defined as toxic or hazardous substances by Environmental Law and the following C substances: gasoline,kerosene,other flammable or toxic petroleum products,toxic pesticides and herbicides,volatile solvents, v materials containing asbestos or formaldehyde,and radioactive materials. As used in this paragraph 20,"Environmental Law" a means federal laws and laws of the jurisdiction where the Property is located that relate to health,safety or environmental protection. c 21.Acceleration;Remedies.Lender shall give notice to Borrower prior to acceleration following Borrower's breach of m any covenant or agreement in this Security Instrument(but not prior to acceleration under paragraph 17 unless applicable law E 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 '6 before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument,foreclosure by `_ judicial proceeding and sale of the Property.The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure process the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 21,including,but not limited to,reasonable attorney's fees and costs of the title evidence. 22. Release. Upon payment of all sums secured by this Security Instrument,Lender shall release this Security Instrument,without charge,to Borrower. Borrower shall pay any recordation costs. 23.Attorneys'Fees.As used in this Security Instrument and the Note,"attorneys'fees"shall include any attorneys'fees awarded by an appellate court. 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. Page 3 of 4 Packet Pg.892 1 16.D.2.b (Check Applicable Box) Lr7- Adjustable Rate Rider 0 Rate Improvement Rider 0 Condominium Rider ❑ Graduated Payment Rider ❑ 1-4 Family Rider 0 Second Home Rider urt Balloon Rider C Biweekly Payment Rider 0 Planned Unit Development Rider t--I Other(s)(specify c N a] SIGNING BELOW,Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any c rider(s)executed by Borrower and recorded with it. Signed,sealed and delivered in the presence of: m ar Witness Signature: . _ _ � IL ` ;Ili a i Signature: 0......af O �Af1 V „ Borrower Carlos Vail m o 0 Witness Print Name:\ '.\,R• .A.PA t Signature: Borrower o Witness Signature: _ .�,! o Witness Print Name: 'F1rC1�Q Address: 2875 35"'Avenue NE R Naples.Fl 34120 N STATE OF FLORIDA .� COUNTY OF COLLIER N IX 1 LL ! tu 2 0 S I hereby certify that on this 7 day of /461.12a.-• ,200 before me,tian officer duly authorized in the N state aforesaid and in the county aforesaid to take acknowledgements,personally appeared&Alt 1i)t v, to �^ d me known to be the person(s)described in and who executed the foregoing instrument and acknowledged before me that HE/ o Z SHE/THEY executed the same for the purpose therein expressed. L" 0 w cn WITNESS my hand and official seal in the County and State aforesaid this 11il(aot( _ �E 0 L a My Commission Expires: LA-L1 2A34, ;c1 Oft Notary Public's Signatu m ar m pp\am Notary's Printed c.0 (SEAL) E a o a L 0 u o re 0 r WE?DYAIa --- 3 +; r MY COMMISSION t DD 708906 > '�� „ •'` SIRES Apel 12 2012 4th Notify Nile Underwriters c E t u m Return to: Collier County Housing&Human Services Q 3301 E.Tamiami Trail,Bldg H#211 Naples,FL 34112 Phone: (239)252-4663 c9-/O-Of Project# HM44.00.404 0 Page 4 of 4 Packet Pg.893 16.D.2.b Project# HM 09-10-004 PROMISSORY NOTE HOME INVESTMENT PARTNERSHIPS ACT (HOME) SINGLE FAMILY REHABILITATION PROGRAM Date: Borrower: Carlos Vallejo 2875 35th Ave NE Naples P1 34120 (Property Address) (City) (State) (Zip) 1. BORROWER (S) PROMISE TO PAY: I/We promise to pay Seven Thousand One Hundred Ninety-Eight Dollars and 67/100 ($7,198.67) (this amount will be called "principal") to the order of en Collier County or to any other holder of this Note (the "Lender"), whose address is c 3339 E. Tamiami Trail Suite 211, Naples, Florida 34112. I/We understand that the a Lender may transfer the Promissory Note. The Lender or anyone who takes this Note by c transfer and who is entitled to receive payments under this Note will be called the "Note Holder". 072. TERMS: The maker(s) of this Promissory Note have been granted a "Deferred Repayment Loan," p� the terms of which are intended to ensure that any Home Investment Partnership Act (HOME) C funds utilized to facilitate the rehabilitation of this Property are recaptured and m utilized to assist another lower-income home owner unless the 5-Year affordability c requirements are met. 0 The terms of this Note do not require that payments be made as long as the makers comply m with the following conditions and provisions: Maker(s) shall occupy the Property as their principal residence. Subletting of the Property is not allowed even on a temporary basis. Failure to abide by the principal o occupancy requirements can result in foreclosure. The Maker(s) shall be required to submit ce proof of principal occupancy to Collier County on an annual basis beginning on the °- anniversary of the first-year occupancy and annually until the end of the amortization u1 period. Such proof shall include: proof of homestead exemption, copies of paid receipts E for taxes and insurance, and copies of insurance certificates for owner-occupied Property S listing Collier County as Mortgage Holder. If the Maker(s) fail to provide sufficient .. proof of occupancy in a timely manner, the County may contract with an independent title N company to perform the necessary title re-certification, the cost of which will be added to the principal amount of this Promissory Note. In the event the Maker(s) cease principal occupancy, transfer, sell or in any manner 0 dispose of all or a portion of the Property which is subject to the Mortgage securing this Z Note prior to fulfilling the agreement and the end of the amortization, then the principal amount of this Note shall become immediately due and payable. The Maker(s) shall not refinance the indebtedness secured by this Promissory Note. The o County prior to granting approval shall review the proposed refinancing in order to ensure that there will be sufficient equity after the proposed refinancing to recapture the HOME ea monies. m The Note Holder consents to any agreement or arrangement in which the. First Lender waives, postpones, extends, reduces or modifies any provisions of the First Note or the First 10) Mortgage, including any provision requiring the repayment of money. o The Maker(s) shall immediately contact the County to obtain approval should they desire to 2 transfer, assign, sell or in any manner dispose of all or a portion of the Property which 3 is subject to the Mortgage securing this note prior to fulfilling this agreement and the end of the amortization period. The County shall have the authority to disapprove any 0 disposal where the proceeds of such would be less than fair-market value as determined by an independent appraisal by a State Certified Residential Appraiser. O In the event of a sale, the proceeds of such shall be applied as follows: Ts a. If the sales price is sufficient, the proceeds will be applied as follows: 1) first to pay off the balance of the First Mortgage, any closing costs, and advances by the g Mortgagee; and 2) the balance of the Mortgage representing the full subsidy as referenced E by this Note. If there are no net proceeds from the foreclosure, repayment is not required and HOME a requirements are considered to be satisfied. b. If the Maker(s) comply with the principal occupancy requirements and do not transfer, assign, refinance, sell, or in any manner dispose of all or a portion of the Property which is subject to the Mortgage securing this Note, then the entire sum due and payable according to the terms of the Note will be considered paid in full at the end of the amortization period which is five (5) years. 3. PAYMENTS: Principal payments shall be deferred on the first loan or until transfer of title, sale of property, refinance, or loss of homestead exemption, or until Ten years from the original mortgage date, whichever happens first. The recapture clause is as follows: 20% a year is forgiven from the date of the mortgage through the end of the fifth (5th) year. These amounts will not be pro-rated on a per diem basis. 1 Packet Pg.894 16.D.2.b I/We agree to immediately pay the entire sum due under this Note. My/Our total payment shall be U.S. $ 7,198.67 4. BORROWER'S RIGHT TO PREPAY: I/We have the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment". When I/We make a prepayment, I/we will tell the Note Holder in writing that I/we am doing so. I/We may make a full prepayment or partial prepayment charge. The Note Holder will use all of my prepayments to reduce the amount of the principal that I owe under this Note. If I/We make a partial prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. If I/We make a partial prepayment, there will be no prepayment penalty adhering to or associated with such prepayment 5. LOAN CHARGES: If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits; then (i) any such loan charges shall be reduced by the amount necessary to reduce the charges to the permitted limit; and (ii) any sums already collected from me which exceeded permitted limits will be refunded to me/us. The Note Holder may choose to make this refund by reducing the principal that I/We owe under this Note or by making a direct payment to me/us. If a refund reduces principal, the reduction will be treated as a partial prepayment. c 6. SUBORDINATION: Lender and Borrower acknowledge and agree that this Security Instrument is o subject and subordinate in all respects to the liens, terms, covenants and conditions of the First Deed of Trust and to all advances heretofore made or which may hereafter be made pursuant to the First Deed of Trust including all sums advanced for the purpose of (a) m protecting or further securing the lien of the First Deed of Trust, curing defaults by the Borrower under the First Deed of Trust or for any other purpose expressly permitted by the First Deed of Trust or (b) constructing, renovating, repairing, furnishing, fixturing or equipping the Property. The terms and provisions of the First Deed of Trust are paramount o and controlling, and they supersede any other terms and provisions hereof in conflict c therewith. In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise N restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his u successors or assigns (other than the Borrower or a related entity of the Borrower), G= receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such w restrictions. 5 0 Further, if the Senior Lien Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, the lien of this Security Instrument shall automatically terminate �- upon the Senior Lien Holder's acquisition of title, provided that (i) the Lender has been - given written notice of a default under the First Deed of Trust and (ii) the Lender shall y A not have cured the default under the First Deed of Trust within the 30-day period provided in such notice sent to the Lender. 7. BORROWER(S) FAILURE TO PAY AS REQUESTED: (A) Default 2 If I/we do not pay the full amount as required in Section 3 above, I/we will be in default. a. If I am in default, the Note Holder may bring about any actions not prohibited by ,6 applicable law and require me/us to pay the Note Holder's cost and expenses as described in m (B) below. rn (B) Payment of Note Holder's Cost and Expenses 5 If the Note Holder takes such actions as described above, the Note Holder will have the -a right to be paid back for all of its costs and expenses, including, but not limited to, 'a reasonable attorneys' fees. p U 8. GIVING OF NOTICES: Unless applicable law required a different method, any notice that must be given to me/us under the Note will be given by delivering it or by mailing it by first • class mail to me at the Property Address on Page 1 or at a different address if I/we give the Note Holder a notice of my/our different address. Any notice that must be given to the j Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) or at a different address if I/we have been given a notice of that different address. E 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE: If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, Q including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person, who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 10. WAIVERS: I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 2 Packet Pg.895 16.D.2.b 1 11. UNIFORM SECURED NOTE: This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protection given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I/we do not keep the promises which I/we make in this Note. That Security Instrument describes how and under what conditions I/we may be required to make immediate payment in full of all amounts I/we owe under this Note. Some of those conditions are described as follows: 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 or 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 thirty (30) days from the date the notice is delivered or mailed, within which Borrower must pay all sums secured by this Security r Instrument. If Borrower(s) fail to pay these sums prior to the expiration of this period, N Lender may invoke any remedies permitted by this Security Instrument without further notice o or demand on Borrower. Notwithstanding the above, the Lender's rights to collect and apply the insurance proceeds 0 hereunder shall be subject and subordinate to the rights of the Senior Lien Holder to a collect and apply such proceeds in accordance with the First Deed of Trust. r 0 12. This note is governed and construed in accordance with the Laws of the State of Florida. 0 ) WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. p w N C 'm (10 )(so s #1,'s' (Seal) W Borrower Carlos Vallejo/ N (Seal) W Borrower 0 RETURN TO: Collier County Housing & Human Services N 3339 Tamiami Trail East, Bldg H #211 IC:: Naples, FL 34112 y Phone: (239) 252-4663 Fax: (239)252-6518 p Z H N la e L a as 0 to R rn t 0 a 0 a 0 0 0 d m O 0 R C E u Z a . 3 � 1:70:4-° q. 3 1 f Packet Pg.896