Agenda 12/10/2013 Item #16D 6 12/10/2013 16.D.6.
EXECUTIVE SUMMARY
Recommendation to accept a State Housing Initiatives Partnership Program (SHIP) mortgage and
promissory note in the amount of$41,937.21 with a loan term of fifteen (15)years to begin effective
10/5/2009. This is a one-time exception to the 2007-2010 Local Housing Assistance Plan (LHAP) to
allow for an alternate payment term.
OBJECTIVE: Record a promissory note and mortgage in the amount of$41,937.21 to a SHIP eligible
household with a forgiveness date of October 6, 2024.
CONSIDERATIONS: On September 15, 2009, Immokalee Helping Our People in Emergencies, Inc.
(IHOPE) entered into an Agreement with Collier County for the acquisition and/or rehabilitation and
relocation of a manufactured dwelling unit to benefit one household earning less than 80% of the area
median income. The total cost of $41,937.21 was used to pay for the acquisition, transportation, and
installation of a modular unit located at 304 Weeks Ave, Immokalee. The land was already owned by the
household being assisted and they were qualified for assistance.
Staff determined that IHOPE did not fulfill the program requirements and its agreement terms.
Specifically, MOPE had improperly entered into a promissory note arrangement directly with the
homeowners whereby repayment to IHOPE would be repaid over a period of time. The promissory note
arrangement was not recorded in the public records. Staff has worked diligently with SHIP technical
assistance advisor, the family, and IHOPE to correct the areas necessary to bring the project into
compliance with the SHIP LHAP guidelines.
IHOPE assisted the family with the proper transfer of title ownership to the eligible household and
conveying the unit from personal property to real property. The last step necessary to bring this project
into full compliance with SHIP regulations requires that the County accept a promissory note and
mortgage from the homeowners to secure the$41,937.21 SHIP loan.
The requested exception to the FY2007-2010 LHAP is to allow for an alternate payment term of 15 years
from the date of the execution of the MOPE promissory note, which is allowable in the current 2010-
2013 LHAP. The 2007-2010 LHAP currently provides for repayment in full if the property is sold or no
longer the borrower's primary residence. Technically, it would be prudent for IHOPE, in concert with
this exception,to record a release of the promissory note. However, it was not recorded, and IHOPE is no
longer an operating not for profit entity. Consequently, the recording of the mortgage, should this item be
approved, will be the only recorded loan against the property.
There are two options that staff evaluated for the repayment terms of mortgage and note:
1) Consistent with the 2007-2010 Local Housing Assistance Plan, in effect at time of transaction,
require$41,937.21 to be paid to the County when the property is sold,transferred,refinanced.
2) Grant a one-time exception and apply the terms of the most recent 2010-2013 Local Housing
Assistance Plan so as to forgive $41,937.21 in 15 years and allow the term date to begin on
10/5/2009, the same date the household executed into a promissory note with IHOPE. Prior to
the forgiveness date if the property is sold or no longer the borrower's primary residence payment
is due in full.
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12/10/2013 16.D.6.
Staff recommends Option #2 in an effort to be consistent with the most recently adopted Local Housing
Assistance Plan.
FISCAL IMPACT: Funds were expended from Fund 191, from State Housing Initiatives Partnership
(SHIP) Project 44209, in the amount of$41,937.21. No general funds were utilized for this project. The
recommended action will result in loan forgiveness on October 6, 2024. Prior to the forgiveness date if
the property is sold or no longer the borrower's primary residence payment is due in full.
LEGAL CONSIDERATIONS: This item has been approved for form and legality and requires a
majority vote for Board approval. —JAB
GROWTH MANAGEMENT IMPACT: Approval of this item will facilitate the goals set forth in the
Housing Element of the Growth Management Plan.
RECOMMENDATION: Recommendation to approve a one-time exception to issue a SHIP mortgage
and promissory note in the amount of$41,937.21 with a loan term of fifteen (15)years to begin effective
10/5/2009 to a qualified household which received State Housing Initiatives Partnership Program (SHIP)
funds for the acquisition and rehabilitation of a manufactured dwelling unit.
Prepared By: Priscilla Doria, Grant Coordinator,Housing,Human and Veteran Services
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12/10/2013 16.D.6.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.D.16.D.6.
Item Summary: Recommendation to accept a State Housing Initiatives Partnership
Program (SHIP) mortgage and promissory note in the amount of$41,937.21 with a loan term of
fifteen (15) years to begin effective 10/5/2009. This is a one-time exception to the 2007-2010
Local Housing Assistance Plan (LHAP)to allow for an alternate payment term.
Meeting Date: 12/10/2013
Prepared By
Name: DoriaPriscilla
Title: SHIP Loan Processor,Housing, Human&Veteran Servi
10/28/2013 9:31:52 AM
Approved By
Name: KushiEdmond
Date: 10/29/2013 9:00:48 AM
Name:AlonsoHailey
Title: Operations Analyst,Public Service Division
Date: 11/1/2013 3:44:40 PM
Name: SonntagKristi
Date: 11/4/2013 10:45:06 AM
Name: GrantKimberley
Title: Interim Director
Date: 11/5/2013 1:00:31 PM
Name: BelpedioJennifer
Title:Assistant County Attorney,County Attorney
Date: 11/6/2013 9:29:24 AM
Name: CarnellSteve
Title: Purchasing/General Services Director
Date: 11/18/2013 4:09:15 PM
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12/10/2013 16.D.6.
Name: Mott Toni Amok,
Title:Manager-Property Acquisition&Const M,Facilitie
Date: 11/21/2013 2:50:06 PM
Name: StanleyTherese
Title: Management/Budget Analyst, Senior,Office of Manage
Date: 11/21/2013 4:41:30 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 11/22/2013 10:10:54 AM
Name: FinnEd
Title: Senior Budget Analyst, OMB
Date: 12/3/2013 5:39:18 PM
Name: OchsLeo
Title: County Manager
Date: 12/4/2013 9:12:35 AM
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10/12/2011 13:58 23965'• 35 :IHOPE,INC. 01 PAGE 02/03
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1 HOPE, Inc.
Promissory Note
Principal amount$ 20000.00 Date: r� /Q
FOR VALUE RECEIVED,the undersigned hereby jointly and severally promise to pay to the order of
!HOPE,Inc. the sum of Twenty thousand dollars($20000.00),together with interest thereon at the rate of •
0.00%per annum on the unpeid balance for maximum of sixty seven(67)months.Said sum shall be paid in
•
the manner following:A minimum of Three un•red1= ($300.00)down and Three hundred
dollars($300.00)per month beginning b_ d ' = manta are due by the let of each month.
All payments shall be first applied to inter:st:nd the •-lance to principal.This note may be prepaid,at any
time,in whole or in part,without penalty.
This note shall at the option of any holder thereof be immediately due and payable upon the occurrence of
any of the following:t)Failure to make any payment due hereunder within 30 days of Its due date.2)
Breach of any condition of any security interest,mortgage,loan agreement pledge agreement or guarantee
granted as collateral security for this note.3)Breach of any condition of any loan agreement,security
agreement or mortgage,if any,having a priority over any loan agreement security agreement or mortgage
on collateral granted,in whole or in part,as collateral security for this note.4)Upon the death,incapacity,
• dissolution or liquidation of any of the undersigned,or any endorser,guarantor to surety hereto_5)Upon the
filing by any of the undersigned of an assignment for the benefit of creditors,bankruptcy or other form of
insolvency,or by suffering an involuntary petition in bankruptcy or receivership not vacated within thirty(30)
days.
In the event this note shall be in default and placed for collection,then the undersigned agree to pay all
reasonable attorney fees and costs of collection.Payments not made within five(5)days of due date shall
be subject to a late charge of$25.00.All payments hereunder shall be made to such address as may from
time to time be designated by any holder.
The undersigned and,ali other parties to this note,whether as endorsers,guarantors or sureties,agree to
remain fully bound until this note shall be fully paid and waive demand,presentment and protest and all
notices hereto and further agree to remain bound,notwithstanding any extension,modification,waiver,or
other indulgence or discharge or release of any obligor hereunder or exchange,substitution,or release of
any collateral granted as security for this note.No modification or indulgence by any holder hereof shall be
binding unless in writing;and any indulgence on any one occasion shall not be an indulgence for any other
or future occasion.Any modification or change in terms,hereunder granted by any holder hereof,shall be
valid and binding upon each of the undersigned,notwithstanding the acknowledgement of any of the
undersigned,and each of the undersigned does hereby irrevocably grant to each of the others a power of
attorney to enter into any such modification on their behalf.The rights of any holder hereof shall be
cumulative and not necess.= successive.This note shall take effect as a sealed instrument and shall be
construed,governed an. =nforoeti in accordance with the laws of the State of Florida.
Witne•_:d: 110
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5011•r,Richard Heers,Executnde
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12/10/2013 16.D.6.
STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM
PROMISSORY NOTE
AW
Borrower: Robert Navarro & Amy L. Navarro
304 Weeks Terrace Immokalee Florida 34142
(Property Address) (City) (State) (Zip)
1. BORROWER(S) PROMISE TO PAY: I/We promise to pay Forty-One Thousand Nine Hundred
Thirty-Seven and 21/100 Dollars ($41,937.21) (this amount will be called
"principal") to the order of Collier County or to any other holder of this Note
(the "Lender"), whose address is 3339 E. Tamiami Trail, Naples, Florida 34112.
I/We understand that the Lender may transfer the Promissory Note. The Lender or
anyone who takes this Note by transfer and who is entitled to receive payments under
this Note will be called the "Note Holder".
2. INTEREST: Interest on this Note shall be zero percent (0%) per annum; except that
if I/We fail to pay this Note as required, the interest rate shall be twelve percent
(12%) per annum from the date when payment of this Note is due until I/We pay it in
full.
3. PAYMENTS: Payment in full is due upon sale or no longer remains owner-occupied as
the primary residence. Deferred payment loan shall be forgiven on October 6, 2024.
If sold after the forgiveness date, no repayment is required. As long as the
borrower continues to own and occupy the assisted property during the term of the
mortgage, then the loan will not have to be repaid. My/Our total payment shall be
U.S. $41,937.21.
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.
6. SUBORDINATION: Lender and Borrower acknowledge and agree that this Security
Instrument is 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) 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 and
controlling, and they supersede any other terms and provisions hereof in conflict
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 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 successors or assigns (other than the Borrower or a related
entity of the Borrower), 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 restrictions.
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 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
1
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12/10/2013 16.D.6.
If I/we do not pay the full amount as required in Section 3 ,=
default. If I am in default, the Note Holder may bring about any actions not
prohibited by applicable law and require me/us to pay the Note Holder's cost and
expenses as described in (8) below.
(B) Payment of Note Holder's Cost and Expenses
If the Note Holder takes such actions as described above, the Note Holder will have
the right to be paid back for all of its costs and expenses, including, but not
limited to, reasonable attorneys' fees.
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 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.
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, 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.
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 Instrument. If Borrower(s) fail to pay these sums prior to the
expiration of this period, Lender may invoke any remedies permitted by this Security
Instrument without further notice or demand on Borrower.
Notwithstanding the above, the Lender's rights to collect and apply the insurance
proceeds hereunder shall be subject and subordinate to the rights of the Senior Lien
Holder to collect and apply such proceeds in accordance with the First Deed of
Trust.
12. This note is governed and construed in accordance with the Laws of the State of
Florida.
WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED.
Borrower Date
Borrower Date
RETURN TO: Collier County Housing, Human and Veteran Services Department
SHIP PURCHASE ASSISTANCE PROGRAM
3339 E. Tamiami Trail, Building H, Suite 211
Naples, Florida 34112
SHIP File#: Navarro/IHOPE
Revised 10/2012
2
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Prepared by and Return to:
Collier County
Housing,Human and Veteran Services Department
3339 E.Tamiami Trail,Building H,Suite 211
Naples,Florida 34112
STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM
MORTGAGE
THIS SECOND MORTGAGE("Security Instrument")is given on day of ,2013.
The Second Mortgagor is:
Robert Navarro and Amy L. Navarro, a married couple
("Borrower"). This Security Instrument is given to COLLIER COUNTY SHIP TRUST FUND ("Lender"),
which is organized and existing under the laws of the United States of America,and whose address is 333 9 E.
Tamiami Trail, Naples, Florida 34112. Borrower owes Lender the sum of Forty One Thousand
Nine Hundred Thirty-Seven and 21/100 Dollars ($41,937.21) . This debt is evidenced by
Borrower's Note dated the same date as this Security Instrument("Second Mortgage"),which does not provide for monthly
payments.The full debt,if not paid earlier,is due upon sale.This deferred loan will be forgiven on
10/6/2024 as long as the borrower continues to own and occupy the assisted property during the term of the mortgage,
then the loan will not have to be repaid.
This Security Instrument secures to Lender:(a)the repayment of the debt evidenced by the Note,with interest,and all
renewals,extensions and modifications;(b)the payment of all other sums,with interest advanced under paragraph 7 to
protect the security of the Security Instrument;and(c)the performance of Borrower's covenants and agreements under this
Security Instrument and the Note. For this purpose,Borrower does hereby second mortgage,grant and convey to Lender
the following described property located in Collier County, Florida.
As more particularly described as:Beginning at the Northeast corner of the Southeast 1/4
if the Southeast 1/4 if the Southwest 1/4 if Section 3, Township 47 South,
Range 29 East, Collier County, Florida, run North a distance of 491 feet for
the point of beginning of this piece of land. From this point of beginning run
North a distance of 75 feet, then run West a distance of 136.67 feet, then run
South a distance of 75 feet, then run East a distance of 136.60 feet to point
of beginning of this piece of land.
and which has the address of: ("Property Address"):
304 Weeks Terrace Immokalee Florida 34142
(Address) (City) (State) ( Zip)
TOGETHER WITH all the improvements now or hereafter erected on the property,and all easements,rights,
appurtenances,rents,royalties,mineral,oil and gas rights and profits,water rights and stock and all fixtures now or
hereafter a part of the property. All replacements and additions shall also be covered by the Security Instrument. All of the
foregoing is referred to in this Security Instrument as the"Property".
BORROWER COVENANTS that Borrower is lawfully seized 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 variation 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 and Interest;Prepayment and Late Charges. Borrower shall promptly pay when due
the principal of and interest on the debt evidenced by the Note.
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 interest due;and,to principal due;and last,to any late charges due under the Note.
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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 AkIlreetk
shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
5. Hazard 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,
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12/10/2013 16.D.6.
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 Note is outstanding,the Mortgagor shall maintain insurance with respect to the Premises against such risks
and for such amounts as are customarily insured against and pay,as the same become due and payable,all premiums in
respect thereto,including,but not limited to,all-risk insurance protecting the interests of the Mortgagor and Mortgagee
against loss or damage to the Premises by fire,lightning,and other casualties customarily insured against(including boiler
explosion,if appropriate),with a uniform standard extended 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 shall have the right to hold the policies and renewals, If Lender requires,Borrower shall promptly give to Lender all
receipts of paid premiums and renewal notices. In the event of loss,Borrower shall give prompt notice-to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing,insurance proceeds shall be applied to restoration or
repair of the Property damaged,if the restoration or repair is economically feasible and Lender's security is not lessened. If
the restoration or repair is not economically feasible or Lender's security would be lessened,the insurance proceeds shall
be applied to the sums secured by the Security Instrument,whether or not then due,with any excess paid to Borrower. If
Borrower abandons the Property,or does not answer within 30 days a notice from Lender that the insurance carrier has
offered to settle a claim,then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security Instrument,whether or not then due. The 30-day period will begin
when the notice is mailed. 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 paragraph 1 or change the amount of the
payments. If under paragraph 21 the Property is acquired by Lender,Borrower's right to any insurance policies and
proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums
secured by this Security Instrument immediately prior to the acquisition.
6. Occupancy,Preservation,Maintenance and Protection of the Property;Borrower's Loan Application,
Leaseholds. Borrower shall occupy,establish,and use the Property as Borrower's principal residence within sixty 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. Borrower shall not
destroy,damage or impair the Property,allow 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 of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's
security interest. Borrower may cure such a default and reinstate,as provided in paragraph 18,by causing the action or
proceeding to be dismissed with a ruling that,in Lender's good faith determination,precludes forfeiture of the Borrower's
interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security
interest. Borrower shall also be in default if Borrower,during the loan application process,gave materially false or
inaccurate information or statements to Lender(or failed to provide Lender with any material information)in connection with
the loan evidenced by the Note,including,but not limited to,representations concerning Borrower's occupancy of the
Property as a principal residence. If this Security Instrument is on a leasehold,Borrower shall comply with all the provision
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.
7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements
contained in this Security Instrument,or there is a legal proceeding that may significantly affect Lender's rights in the
Property(such as a proceeding in bankruptcy,probate,for condemnation or forfeiture or to enforce laws or regulations),
then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the
Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument,
appearing in court,paying reasonable attorneys'fees and entering on the Property to make repairs. Although Lender may
take action under this paragraph 7,Lender does not have to do so. Any amounts disbursed by Lender under this paragraph
7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other
terms of payment,these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable,
with interest,upon notice from Lender to Borrower requesting payment.
8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this
Security Instrument,Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If,for any
reason,the mortgage insurance coverage required by Lender lapses or ceases to be in effect,Borrower shall pay the
premiums required to obtain coverage substantially equivalent to the mortgage insurance previously 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 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. Lender will accept,use and retain these payments as a loss reserve in
lieu of mortgage insurance. Loss reserve payments may no 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 maintain mortgage insurance in effect,or
to provide a loss reserve,until the requirement for mortgage insurance ends in accordance with any written agreement
between Borrower and Lender or applicable law.
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 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.
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
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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. AINIAMIC
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 any accommodations 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 maximum loan
charges,and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection
with the loan exceed the permitted limits,then:(a)any such loan charge shall be reduced by the amount necessary to
reduce the charge to the permitted limit;and(b)any sums already collected from Borrower which exceeded permitted limits
will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by
making a direct payment to Borrower. If a refund reduces principal,the reduction will be treated as a partial prepayment
without any prepayment charge under the Note.
14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by
mailing it by first class mail unless applicable law 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.
15. Governing Law;Severability. This Security Instrument shall be governed by federal law and the law of the
jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note
conflicts with applicable law,such conflict shall not affect other provisions of this Security Instrument or the Note which can
be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are
declared to be severable.
16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument.
17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any
interest in it is sold or transferred(or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural
person)without Lender's prior written consent,Lender may,at its option,require immediate payment in full of all sums
secured by this Security Instrument. However,this option shall not be exercised by Lender if exercise is prohibited by
federal law as of the date of this Security Instrument.
If Lender exercised this option,Lender shall give Borrower notice of acceleration. The notice shall provide a period of not
less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this
Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period,Lender may invoke any
remedies permitted by this Security Instrument without further notice or demand on Borrower.
18. Borrower's Right to Reinstate. If Borrower meets certain conditions,Borrower shall have the right to have
enforcement of this Security Instrument discontinued at any time prior to the earlier of:(a)5 days(or such other period as
applicable law may specify for reinstatement)before sale of the Property pursuant to any power of sale contained in this
Security Instrument;or(b)entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower:(a)
pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had
occurred;(b)cures and default of any other covenants or agreements;(c)pays all expenses incurred in enforcing this
Security Instrument,including,but not limited to,reasonable attorney'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
obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower,
this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred.
However,this right to reinstate shall not apply in the case of acceleration under paragraph 17.
19. Sale of Note;Change of Loan Servicer. The Note or a partial interest in the Note(together with this Security
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 the"Loan Servicer")that collects monthly payments due under the Note and this Security Instrument. There also
may be one or 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 given written notice of the change in accordance with paragraph 14 and applicable law. The notice will
state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will
also contain any other information required by applicable law.
20. Hazardous Substances. Borrower shall not cause or permit the presence,use,disposal,storage,or release
of any 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 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,lawsuit or other action by any
governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental
Law of which Borrower has actual knowledge. If Borrower learns,or is notified by any governmental or regulatory authority,
that any removal or other remediation of any Hazardous Substance affecting the Property is necessary,Borrower shall
promptly take all necessary remedial actions in accordance with Environmental Law.
As used in this paragraph 20,"Hazardous Substances"are those substances defined as toxic or hazardous substances by
Environmental Law and the following substances: gasoline,kerosene,other flammable or toxic petroleum products,toxic
pesticides and herbicides,volatile solvents,materials containing asbestos or formaldehyde,and
radioactive materials. As used in this paragraph 20,"Environmental Law"means federal laws and laws of the jurisdiction
where the Property is located that relate to health,safety or environmental protection.
21. Acceleration;Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's
breach of any covenant or agreement in this Security Instrument(but not prior to acceleration under paragraph 17 unless
applicable law provides otherwise). The notice shall specify: (a)the default;(b)the action required to cure the default;(c)a
date,not less than 30 days from the date the notice is given to Borrower,by which the default must be cured;and(d)that
failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this
Security Instrument,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 proceeding 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.
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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. (Check Applicable Box)
❑Adjustable Rate Rider ❑Rate Improvement Rider ❑Condominium Rider
❑Graduated Payment Rider ❑1-4 Family Rider ❑Second Home Rider
❑Balloon Rider ❑Biweekly Payment Rider ❑Planned Unit Development Rider
❑
Other(s)(specify
SIGNING BELOW,Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in
any rider(s)executed by Borrower and recorded with it.
Signed,sealed and delivered in the presence of:
Signature: Signature:
Borrower Robert Navarro Co-Borrower Amy L. Navarro
STATE OF FLORIDA
COUNTY OF COLLIER
I hereby certify that, / personally
appeared to me known to be the person(s)described in and who executed the foregoing instrument and acknowledged
before me that(He/She/They)executed the same for the purpose therein expressed.
WITNESS my hand and official seal in the County and State aforesaid this day of ,2013.
(Seal)
Notary Public's Signature
Notary's Printed Name
My Commission Expires:
SHIP File#:Navarro/IHOPE
SHIP Purchase Assistance Program
This Promissory Note&Mortgage was approved by the Board of County Commissioners on:
day of ,2013. Agenda Item#
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