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IN THE COURT OF COMMON PLEAS

C~Y AH@G2.\.OcOUNTY, OHIO

l~~; ;\\j~ - 1·-','

ST A TE OF OHIO, ex rel._. ) r A SF NO

RICHARD CORDRA~' :,:,'-;-;~.' .' .. Judge: TIMOTHY MCCORMICK

A TTORNEY GENERiL:6fOl~10, .,,: 615 W. SUPERIOR A'VE::'1lTH Floor CLEVELAND, OHIO 44113-1899

PLAINTIFF,

v.

AMERICAN HOME MORTGAGE SERVICING. INC

c/o Statutory Agent

CT Corporation System 13 00 E. 9lh S1.

Cleveland,OH 44114

JURISDICTION

cv 09 708888

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COMPLAINT, REQUEST FOR DECLARATORY AND INJUNCTIVE RELIEF, CONSUMER DAMAGES, CIVIL PENALTIES AND OTHER APPROPRIATE RELIEF

JURY DEMAND ENDORSED HEREON

1. Plaintiff, State of Ohio, by and through Counsel, the Ohio Attorney General Richard

Cordray, having reasonable cause to believe Defendant American Home Mortgage

Services, Inc., ("AHMSI" or "Defendant") has committed violations of Ohio's

consumer protection laws, brings this action in the public interest and on behalf of the

State of Ohio under the authority vested in him by the Ohio Consumer Sales Practices

Act, R.C. § 1345.01 et seq,

2. Plaintiff, State of Ohio, by and through Counsel, Ohio Attorney General Richard

Cordray brings this action on behalf of the State of Ohio based upon Defendant

AHMSI's violations of the Ohio Consumer Sales Practices Act, O.R.C. § 1345.01, et.

seq. (hereinafter "CSPA").

3. Defendant AHMSI, at all relevant times hereto, was a Texas corporation, with its principal place of business located at: 1525 S. Belt Line Rd. Coppell, Texas 75019- 4913.

4. Defendant AHMSI, at all relevant times hereto, was licensed as a second mortgage lender, License SM.501517.000, by the Ohio Department of Commerce, Division of Financial Institutions.

5. Defendant AHMSI is a debt-collector as contemplated by the Fair Debt Collection Practices Act (FDCPA), 15 U.S.c. 1692 et seq.

6. The actions of Defendant, hereinafter described, have occurred in the State of Ohio and Cuyahoga County and other Ohio counties.

7. At all relevant times hereto, Defendant was a "supplier" as that term is defined in RoC. § 1345.01 (C) as Defendant engaged in the business of effecting consumer transactions by servicing residential mortgage loans, held by individuals residing in Cuyahoga County and other counties in the State of Ohio, for purposes that are primarily personal, family or household within the meaning specified in RC. § 1345.01 (A) and (D).

8. Jurisdiction over the subject matter of this action lies with this Court pursuant to R.C. § 1345.04 of the Ohio Consumer Sales Practices Act (CSPA).

9. This Court is the proper venue to hear this case pursuant to Ohio Civ. R. 3(B)(1)-(3), in that some of the transactions complained of herein, and out of which this action arose, occurred in Cuyahoga County, Ohio.

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STATEMENT OF FACTS

10. Defendant AHMSI's mortgage servicing obligations are set f011h in various contracts, commonly referred to as a Pooling and Servicing Agreements [PSA], between Defendant and the true owner of the underlying mortgage loan notes, typically a trust or pool containing thousands of securitized residential mortgage loans.

11. Defendant AHMSI services over 12,000 subprime, alt-A, and prime mortgage loans in Ohio, with most of the financed properties owner-occupied with the residential mortgage loans secured by a first mortgage lien.

12. In connection with the servicing ofresidential mortgage loans Defendant AHMSI accepts, applies, and distributes mortgage loan payments made by Ohio residents.

13. For many of the loans, Defendant AHMSI operates as a debt collector as that term is defined in the Federal Fair Debt Collection Practices Act, 15 U .S.c. 1692a(6).

14. In connection with the servicing of Ohio residential mortgage loans, Defendant AHMSI acquired servicing rights to residential mortgage loans already in default from third parties, including but not limited to Option One Mortgage Corporation.

15. Defendant AHMS I, among other services, offers several different loss mitigation options to borrowers in default, or on the verge of default, including repayment plans, loan modifications, security retention agreements and forbearance agreements.

16. For some borrowers in economic distress Defendant AHMSI has the borrower enter into a Loan Modification Agreement that, inter alia, contains provisions that: require the borrower to waive all legal defenses, rights to set-off, and all counterclaims against the note holder and loan servicer; require the borrower to waive any challenge or right to contest the foreclosure process, including challenges based upon acts

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occurring subsequent to the agreement committed by the loan servicer, its attorneys, the foreclosure trustee or any person acting on behalf of the loan servicer; require the borrower to agree that AHMSI can terminate the agreement and recommence foreclosure proceedings without any notice to the borrower if AHMSI believes that the borrower has breached the loan modification agreement; and, reserves exclusively to AHMSI the determination as to when required payments and documents have been received. [Sample Loan Modification Agreement, with consumer information redacted, is attached as complaint Exhibit A].

17. For some borrowers in economic distress Defendant AHMSI has the borrower enter into a Forbearance Agreement that, inter alia, contains provisions that: require the borrower to agree in advance to pay any and all charges imposed by AHMSI, including charges not included in the Forbearance Agreement, and also including charges not yet incurred or billed by AHMSI, for services rendered by or on behalf of AHMSI, including attorney fees; reserves to AHMSI the "sole and absolute discretion" to increase the amounts the borrower is required to pay pursuant to the Forbearance Agreement; permits AHMSI to continue to prosecute any pending foreclosure related motions, including motions that may result in a judgment or sale order against the borrower; and, require the borrower to waive all defenses, rights to set-off and counterclaims for any and all misconduct arising at any time in connection with the origination and servicing of the mortgage loan. [Sample Forbearance Agreement, with borrower information redacted, attached as Complaint Exhibit B].

18. For some borrowers whose security instrument payment obligations on residential mortgage loans have been discharged in bankruptcy, Defendant AHMSI has

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permitted them to remain in the property if the borrowers enter into a Security Retention Agreement that, inter alia; require the borrower to agree in advance to pay any and all charges imposed by AHMSI, including charges not included in the Security Retention Agreement, and also including charges not yet incurred or billed by AHMSI, for services rendered by or on behalf of AHMSI, including attorney fees; reserves to AHMSI the "sole and absolute discretion" to increase the amounts the borrower is required to pay pursuant to the Security Retention Agreement; and, require the borrower to waive all defenses, rights to set-off or counterclaims they may have related to the loan or the property. [Sample Security Retention Agreement, with borrower information redacted, attached as Complaint Exhibit C]

19. In connection with the servicing of residential mortgage loans in Ohio, Defendant AHMSI maintains a customer service department that Ohio residents are directed to call with questions or concerns about their mortgage loan. Consumers have complained to the Ohio Attorney General that Defendant's employees or agents are unable to communicate meaningfully with consumers regarding those consumers' accounts, and that Defendant's call center workers do not return calls or respond to repeated inquiries.

20. In connection with the servicing of Ohio residential mortgage loans, Defendant AHMSI has engaged in the following acts and practices: provided incompetent, inadequate and inefficient customer service; lost documents submitted by borrowers requesting loss mitigation assistance; failed to respond, or timely respond, to borrower requests for assistance; failed to offer, or timely offer, affordable loss mitigation options to borrowers.

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21. In connection with the servicing of Ohio residential mortgage loans Defendant

AHMSI has engaged in the following acts and practices: required borrowers to sign

loan modifications, forbearance agreements, and/or security retention agreements that

contain illegal and unfair provisions and are unconscionably one-sided in Defendant's

favor; purchased forced-place insurance to cover homeowners' dwellings, when such

insurance was not necessary or justified and where such insurance was duplicative of

valid insurance that existed to cover the homeowners' residences.

FIRST CAUSE OF ACTION

Violations of the Consumer Sales Practices Act

22. Plaintiff, State of Ohio, ex rel. Richard Cordray, Attorney General incorporates by

reference, as if completely rewritten herein, the allegations set forth in paragraphs

One through Twenty One (1-21) of this Complaint.

Defendant AHMSI has engaged in unfair and deceptive acts and practices in violation

of R.C. 1345.02, 1345.03 and 1345.031 by its inadequate, incompetent, and

inefficient handling of complaints, inquiries, disputes, and requests for information

and assistance in connection with its servicing of Ohio residential mortgage loans,

including but not limited to, i.e. the failure to respond to consumers' inquiries or the

inability of Defendant's employees or out-sourced agents to communicate

meaningfully with Ohioans.

24. Defendant AHMSI has engaged in unfair and deceptive acts and practices in violation

ofR.C. 1345.02, 1345.03 and 1345.031, in connection with the servicing of loans for

residences within the State of Ohio by, inter alia; requiring consumers to agree to

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unconscionable mandatory attorney fee clauses, requiring consumers to sign agreements containing unfair and unreasonable releases and waivers of rights.

25. Defendant AHMSI has engaged in unfair and deceptive acts and practices in violation of R,C. 1345.02, 1345.03, 1345,031 in connection with presenting proposed loan modifications to borrowers who are in default or who have contacted Defendant AHMSI due to the borrower having difficulty making their loan payments: by misrepresenting the terms of offered loan modifications; requiring borrowers to sign loan modifications that are unconscionably one-sided in Defendant AHMSI's favor. Such acts and practices are unfair and deceptive and in violation of the Ohio Consumer Sales Practices Act, R.C. 1345.01, et seq. and in violation of the Ohio Administrative Code 109: 4-3-28 (Unconscionable Terms in Home Mortgage Loans). Household Realty Corp. v. Dowling, 40 Ohio Misc. 2d 4, 531 N.E.2d 786 (1988).

SECOND CAUSE OF ACTION

Unfair and Deceptive Loan Modification Terms

26. Plaintiff, State of Ohio, ex rel. Richard Cordray, Attorney General incorporates by reference, as if completely rewritten herein, the allegations set forth in paragraphs One through Twenty One (1- 21) of this Complaint.

27. Defendant AHMSI has engaged in unfair, deceptive and unconscionable acts and practices in violation of Sections 1345.02, 1345.03 and 1345.031 and Ohio Administrative Code 109:4-3-28 (C) (8) in connection with Loan Modification Agreements, Security Retention Agreements, and Forbearance Agreements entered into with Ohio consumers that contain terms that violate the Ohio Consumer Sales

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Practices Act. Those terms include without limitation: requiring the borrower to waive all legal defenses, rights to set-off and all counterclaims for any and all misconduct arising at any time in connection with the origination and servicing of the mortgage loan against the note holder and loan servicer; requiring the borrower to waive any challenge or right to contest the foreclosure process; requiring the borrower to agree that AHMSI can terminate the agreement and recommence foreclosure without notice; reserving exclusively to AHMSI the determination as to when required payments and documents have been received; requiring the borrower to agree in advance to pay all charges imposed by AHMSI, including charges not included in the Forbearance Agreement or not yet incurred or billed by AHMSI, including attorney fees; reserving to AHMSI the "sole and absolute discretion" to increase the amounts the consumer is required to pay pursuant to the Forbearance Agreement; or permitting AHMSI to continue to prosecute any pending foreclosure related motions that may result in a judgment or sale order against the consumer.

PRAYER FOR RELIEF WHEREFORE, Plaintiff respectfully requests that this Court:

1. ISSUE A PERMANENT INJUNCTION enjoining Defendant AHMSI, its agents, servants, representatives, salespeople, employees, successors and assigns and all persons acting in concert or participating with it, directly or indirectly, from engaging in the acts or practices of which Plaintiff complains and from further violating the Consumer Sales Practices Act (CSPA), R.C. 1345.01 et seq.

2. ISSUE A PERMANENT INJUNCTION enjoining Defendant AHMSI from enforcing any provision in any agreement it has with borrowers that the Court

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determines to violate the law, and further to ORDER Defendant AHMSI to provide written notice of those unenforceable provisions to all borrowers who have entered such Agreements.

3. ISSUE A DECLARATORY JUDGMENT declaring that each act or practice described in Plaintiffs' Complaint violates the Ohio Consumer Sales Practices Act, R.C. 1345.01 et seq., in the manner set forth in this Complaint.

4. ORDER Defendant AHMSI pursuant to the R.C. 1345.07(8) to reimburse all consumers damaged by its unfair, deceptive, and unconscionable acts or practices, including non-economic damages.

5. ORDER Defendant AHMSI to comply with all HAMP Participating Servicer requirements, including the requirement that AHMSI perform HAMP analyses upon consumers' mortgage loan notes, and reform those mortgage loans to restrictions and conditions determined by the Court to be fair, reasonable and appropriate.

6. Further ORDER Defendant AHMSI to notify all of its subsidiaries, including foreign operation call centers, independent contractors, employees and agents of AHMSI of the terms and conditions of any court ordered relief in this action.

7. ASSESS, FINE, AND IMPOSE upon Defendant AHMSI civil penalties of Twenty Five Thousand Dollars ($25,000.00) per violation of 1345.01 et seq. pursuant to RC. 1345.07(D).

8. ORDER, as a means of insuring compliance with this Court's Order and with the consumer protection laws of Ohio, that the Defendant AHMSI maintain in its possession and control for a period of five (5) years all business records relating to

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Defendant AHMSI's servicing of residential mortgage loans in Ohio, and to permit

the Ohio Attorney General or his representative, upon reasonable twenty-four (24)

hour notice, to inspect andlor copy any and all such records.

9. GRANT the Ohio Attorney General his costs in bringing this action.

10. ORDER Defendant AHMSI to pay all court costs.

11. GRANT such other relief as-the Court deems to be just, equitable and appropriate.

Respectfully submitted

RICHARD CORDRAY Ohio Attorney General

Thomas McGuire, Esq. (0007121)

Senior Assistant Attorney General Consumer Protection Section

615 Superior Ave, II th Floor

Cleveland, OH 44113

Phone 216-787-3030

FAX 216-787-3480 Thomas.mcguire@ohioattorneygeneral.gov Counsel for Plaintiff

State of Ohio

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DEMAND FOR JURY TRIAL

Please take notice that Plainti ff State of Ohio ex rel. Cordray demands a trial by

jury in this action.

Respectfully submitted,

RICHARD CORDRAY ATTORNEY GENERAL

~/ ':\ L(( /" ..

C~hth<1.." I). ! VlV'v{/

THOMAS D. McGUIRE (0007121) Senior Assistant Attorney General Consumer Protection Section

State Office Bldg., 11 th FI.

615 W. Superior Ave.

Cleveland, OH 44113-1899

(216) 787-3030

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NOV-17-2008 16:25

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STATE'S 1\IBIT

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mo:e 1'IllJ.}1 described b:l tho Security Ins11ument alld d.efined theroin ~ the 1'Propc:rty." All capitalized mons in this Agre::::menf shall havo '!ho WIlt llle!lllngs 8$ set forth. in the Note and Security Ins:!l:'urn~ llQlcu dafUted ill this ~~ all schedules and exbJ."bltS attAebt4 to tlW ~e::!l'CUt iU'e incotpatated into and made part of this

A.gteeIne:nt; and. all ¢erences to this A..greement inClude the schedules. bnd e;.:hibiu. ,

J ~mt:ion oftbe mutu.aI promises and ~ oa:Mnge-d,. Loe:c.S~ ~ BQTrOWl:r lI&l'ee that the Note aM Seeurity In.sT:tunten.t $hall t>e modified hmby as fullows:

1. l of tho Effective Date, tbe ~ payable '!1Ild=r tb.c }late I!lld tho S~tY lrtstnm:texn (the "'New PHnei:pat :SalImCO'") is U,s. consisting of the llllpaid amotIQt(s) loaned to l3olTOWe:' by Lmd,a plus lIllY e.cc:ued and: ttllpai4 iaterest =d other amOUIIts gpitalizod as set fotth i:o. Schedule" At u&c:hed hereto and made e. pan: htltof ..

. 2. ~t1OWet~ to pay The Now Ptfucipal a~~ plus interest. to the order of Lean Servicer. lllretest

w,ru. ba WI'ged on the New Principal Balance at the ~ly rate of 5.00% (the 'Mod btc"). for the sixty (60) lllonth.period {jam the Effective Dute, up to alld inc.l.uding July 31, 2013 (the "Mod Period"), at which tIlne lhe tl:iUrest xate sball revert ~ the ~ 8$ set forth. in the Note (the "Note Rate"). as :further provided below. If the NOte is a .fixed rUe notO, tIlo NOta Rate .shall be the rate set forth. in the NOle frClll the e#&:adon ofthc~ Only P~od ~ 411 ~ e-vi4enccd by1ho Nato m paid in full. Ifthc Nate is an :!.djustable me note, the Note Rate shall be tile· rate that U: ~ to go ioto effect on the Chmlge Date next following the e.rul. of the Interest Only Pcrlod, an4as fh~ adjusmd. (all.in ~ccordanCe with the provisiOIl.$ of the Note); however. nctwithstanding the !oregoirlg. the Mod Rate Wl1 eontinue i:D. tffect fiiom the cxpfration or tho llI.~ Ollly :Period. ~ said ChaDge Date (zuc;h period, the ~ Pbriod"), DuriIlg the Mod Perkid atld the ~Qn Pt. a.5 ~Ii=-bl~ ~nQwor willmam morrthly tkmenls ofprincipu and in~ In Ulo amount oru.s. . (the "Mod~; provided, th8t the ¥ Mod P~)"lOOltS d:ue for August I, 2008. and Sepremw 1, 200g, ~ ro.aO& i:I). a. lump ~ upon ~on of this Agte.ement (the "'Mod StSrt h~, AS MORE PARTICULARY SET FORm IN :riARAGRAPH 7, THIS AGREEMENT Sl3ALL BE VOID ANI) NOT TAKE EFFECT UNLESS 'IjHE MOl) Sf AlIT :PAYMENT IN THE FORM OF A CASBlERIS essex on Olt').").'F!&J) ~S, AND Tffi5 AGREEMEN'l\ AlU: REeDV£!) ON OR ~EFORE SE.PTEMBl!:.R 19, 2OOB.

Ait..er th~ t---lod Start Jlay!.!l.~t is mll.d.e, till!! !l~ ~ ¥.cl ?~e:::.t will be 6.e C'Ctccer. !, 2008. Begh:..~·;"g on (a) Aug'N 1) 20t3, witbrespect to It Net/) tW is O\,fu!:!:= ~ tlltl (b) tb.e f:s::lay vfthc .;c.cr.m !oUowi.:g the '4'iIation ofms !t3:IlSition Period, with respect to 0. Note that is en aOjustable rat¢ Note, and iIi either case continuing fuereafrer on th~· same day of ~ sueoeoding mOlllh Wltil the New Principal Balance and inteTt'St ~ paid ill full, "the monthly payment will. eonsist of principal and int(;ru't at me Mote

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LOAN MO'DIflCATJON .... ~ (~~Jrth rl~= ~'.4>-S~ l1mI1~t l1Dt"a"Q).1Il Form 1 (8IllI~ . (1'q( tI

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NOV-17-2009 l6:25

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~e in an amount necessary to amortize tl:J.e New :Principal Balancc. as then in effect,. <rI¢ the rem~ tdm of the Loan. Loan Servicer will notify Borrower of the <UIlOUIIt of "the new monthly payment prior to tl:le end of tile Mod Pc:iOd or TntlSroQll Ptrlod, es appllc:.ble. If on ~ (me "M2.rurity D:tI'C'), ~~er ~J)\'!es .aIDOtu:USJlMerJ!le .. Nol:uodthe _$a.,.""\lrlty-.Iost:tunrmt,-as.a.mcnded-by-this-~ent, B~rrowc:::";,oiJJ p;y th¢~ amo\lll't$ in full on the Mlll'\.1.rity Pate.

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;, ~~.;,w W-.l. ;¢mpr, wr..o. /i,ii wV~ts, c~~ e!lu. ~!m~ 01 I"cne Cl ~:unzy ~n$t!"lttlc:r.,

i:lpl~dmg .... 1;thQ'.lt li.t:D.itatio;l, Borrower's ccveaaats &ld ~aem~lS ro ~ rJl payIfients of tw:e::.. irlsurancc pre~~ ~m!l:'!le::-t.!, ~OW l~ ~t:1~ e::i cll ¢!her r;>-.o.e:t.::; ±; ~'iI:' is obligated to make under the Security Instrumcn~ however, taa following terms and provisions are ci:nceled. lUllI and void, dm'ing the Mod. Period and W 'fi1msitiotl. Period, as appliea'ole:

(b all.terms and provisions oftbe Note md Security Instrument (if any) providing for, implementing.

I or relatinS to, any challge or adjustment in the rat:e of interest payable under the NOte; and. .

(0) alI·teml$ and provi5iOIU ot any adj U$tlblt tatO rider, or ~er f:n.stnunc:nt Cj1' document (if any) tbm:

Lis e.ffixed to, wholly or pilliially incorpocated intor er ls part of; the NlXO W S~ty rr.strumem

.. -- and ~ COD.tb.lm any such terms and provWons as those refen-ed to in (a) aeeve,

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All the ~ and remedies, stipulations, and CC'!ldjtiQTJ$ tontnined in the Security I1l.mument ~Itu:il:lg to defwlt ill the making Of~1~ un.d.er the Note and Security ~ent shAll Wo

apply to dc:6ult in the mnkIng ot'the niodfficd p&yme:n1s under this A.gI=nent ~

Except as herein modiiied, all COYe!l.!llt$I agretmettt:lt mpuI:tions, md. conr:UtiOllS in the 'Note and Secwity l:n$trumctlt Shall be and remain in full force and effect and none of Borrower's obligxtioDS or liabilities -ander we Note and SeCl.lrity WtrwlW shall. be dim.itUshed or relel!scd by tilly proviaioD$ bereot nor allan this ~enr In any wu:y imp&r. d.iminl:sh, or aff~ lilly of Loan Servi~$ ¢r Nate HQ1der'~ rigbts or remedies lI:tld.et tho Note and. ~ IostNment. who1hor such rights or remedies m 1here \mdc:: or by opmt!<nl or law. Als¢r all rlgbts of ~ to whiob Loan Se:rviee:r and NQtc Holder m prcseo:tty emitled agaittst the Prope.1Y, Eotrowel', my other property or any other persons in axzy war ob~ f'otf or liable 0Dt tb.e. Note and ~

1n~~ ere ~ teS::rVed by Loan Strviwand Notl: Holw. " .

Borrower has no right of set-off c:r coumarolahn against Note Hold« or LQ~ ~er, or any ddence to tJJ.o obllptiQIIS of tho Nott or ~ty ItIstrornenr..

Not1ling in 'ChIs ~ent shall be understoQd or co~ to be a satisfaction or release i1l wbole or in part of the Note and Security Instrument.

In 'additiOD to and sim~usly with Bor:rower'~ monthly paymentS U 'Of forth in ~11 ~ above, aorrower Wll be required pay to Loan ~jce:r. nilti1 such time 8$ the Ne-w Principal Balance and intero" aro paid ill fuD. a SIml. to provide for pa;mmrt of amountS due for (i) yearly taxes and assessmeats wWch may Ubin priority over the Security ID.st:ru;ment as a !ien oil the Property, Blld (10 yearly ha:i:ard Clr property irlst.lran.ce pmniums. all in a.ccordanee wim tl;Le 1etIrIS and eonditiolU oi the S«wity lnstnImeot A waiver of this ~ by" Loan servicer $hall. not ootIStituUl a '-.\'1iver of $U¢h r¢qu.imnClllt ~ In)' futuro ~ and Loan Setvi.eu spcclflc:a!ly reserves the right, in its $(lIe and absolute discretion, to impose su~h requirement at any time upon .. ritle.n.nctica to B~wer.

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Svrrow<:r sball ;m.::kc snd e-x;cU1;;. such othc:t dcCwtleuts or p:.:;xm as way be llCCI!SSBJ}' or T~ tc dfe~ tho terms and. condllions o!1hls .Agree:merrt...

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If fore.closuro proceedings have heen commented with respect to file Loan, upon ~ent of the Mod Stnrt Paymellt and Loan Se:'vicer'$ re~~t of this Ag;ree:olent. thllye:teeute.d, l.osn StJvi~et' ~Wl t~ from taking any further actiOl.1 ill coOll~on_v1t!tMY.1Y~J:Qrn,g_Q..~_~_,,~.g._ Iri-conSiderati()l1r.fTendei"5-fo~;-~Ce";-BOt':'IlWerhmgy ~~lr woUvC$ the tight to ~:lle::ge Or e!)ct~~ ':!:ie ~re~::w.:,~ process tmf.~tE:d by Loru:;. ~mcer, Loan Serv1ee"'s a~r:ey 2::t!!~r t;e f¢recl¢:.:;::e ~ m~.ticr; sillict.s "I" Glllisti;;'I1$ prior tv or sci)seqUtl:lt to'titis Agrw ... 211t, W!t6tb:e-~ e.:cl! z.c".s or ocxaf:';slocs were ~rfGnaed by Lo a n Servi;er, Lo-sri Se~r's attorn~1 tho f~!'~~ tr'IWtc~, eeditl!, e.!!Y putr !<:fulg ¢:% b~~ :t t;h¢ L~ , Servi~r, LoalI Servieer'~ attor.ney and/or the foreclosure trustee, Bctrowcr adrttiu and recognizes rllll1 any !nQ all postponements of a fcreel~ure ,ale, m~ d:urlns the term. ot 1his A.,irCeme:nt ~ in antie~on of this ~=otU, are done by mur:ua.1 consent of Borrower and Loan Servleer and that to the e:dent allowed by :ppUca:~lo law the 1ixec1osure ,c;alo may be pospon«1 from tlnlo :0 time until the loan u fully l'Ilin5tated t'Jt the fbreclosure $ale u

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Time is of the esseneo of this ~ in ~ tho rc=iptbyLomSe:vicc:r oflhls Agreement (fblly ~ by Borrower and aoyNcn-ObIigor Moxtgagors) and the Mod Start Paymen:. There 2n 110 gntce periods with r~ to tht Mod P~ymeDt due under this A:rtcm(lnt. and bil1U'e to make timely p3ylll~ts as spteffied iu paragraph Z CGnstitates & breach of the terms of this Agrtement. Notwitbmndin: the above, late charges as specified in the I,.osn Doelmentswill continue to accrue as :illQ .... ed by I1pplkable law.

WBorrower ialli to nW::~ any of1Jl.e p~cnt9 speclliod b1 p~h 2 on tho dlJ.o 4atcs. aod 1n the amount st!±c:d, or o1h.erwis.e faWl to comply with each. an;i all of the temll and :0lliliti0llS ~ , Lom ScrvicOr. at tis' $Ole ¢pt.ion. :mtJ.Y ~ this Agroement without fut1her notice to l3¢crOwer. In such ease, aD. lIlIlO'\mtS thai: a;ra owing under 'Ihtl Nott: ~ SOQ..II'it)' Ins'a:Il:m~ as 0lIlen~ by this AgrcoZllt:ru. shall beeOlM ~ due M1d payable. and Loan Setv:iee:r sball be pemrltted to ex:eocise a:oy md all right:; and. r=edies provided for in the Loan. ~~ Includl.D.& but not limiI:t4 to, immo~ ~mmencem= of a. !:l::eelo$uro e.ction without funher notice to ~owe:r, andlor rerumptiOll of tt pending fom:losurc action wifi:toot further notiCe to BOIl'Qwe!, and/or condncting a pe:o.ding fcreclosure sale without further notice to Borrower.

Lollll Setvicer repment$ tbat it has the atUborit)t t'J,') ~ into ~ Aar~ on behalf of tho

Note Holder. '.

The terms, clauses, con<litions and provisions of this ~ent 'are binding upon and shall inure to tile bwfit ofcll ~ ~~ ~ ~ estlltCS, ~, heirs, devisees. and legatees of each of the parties. hereto_

Except as is otherwise provided fur herein, this Agr¢emcrrl constirllte.s tile emae ~ between !he psrtioo with reff:reneo tQ tho Sllbjeet ~ hcreo~ and supel'i&de$ All)' l'rlor ~ om or wtlttr:1l. with rcsp~ theme: and, ill entering intO tbjs ~e:ot. no party is relying upon t!tr:/ reprts~Dt warranty, ~ or coveollllls:!lot sttforth ~

This Agreemcnr: maybe signed in one or more eeenterparts, each of which sll.a1l be deemed an o...~ but aU of which. together shall COD$titu:te one md the sam.e Agreement.

(g) !

I

6. to the e::«e:nt that any word, phrase, eleese, or ~c:ntence of this A&I'eem~ shall 'be found to be lie.¢. or l.jnenfor:=eable for any reason, such word, phrase, clause, or sentence shall '01: modified or deleted in such a manner so es to !l!!I.k: ~e .~~t, IU so m~e~ leg:l.1 and tni'crcellble under ~H~te lew, provided ~ ~hOl.ud SlJch ~~d!ficat:~ er &:!~~~ ~~~1 ci=li:i± t!::.: ~ of±!~ .Ai='~~ ~ z:v cfl-cs. Serv1cer. Note Hold~ 01' 'sC'!:'Owe:', ee Agreem~nt shill be of no fcr~ cr ~ and the ;:elatiollShi"P of ltcan' Servic~r, Note Holcier and Borrower shall be entirely ~overn~ by the provisions of the Note -'AXlQ. Seru.'i:ty In.strument.

i

I

I

LOIJ>IMOD~CAnCNI\.~ (~DMdl'itclS%)-~l'~~!

II , :BoI1'VtI'(T ~tIll:I~: __

NOV-17-2008 16:26

AHMSI

P.OlS

I

I

I I

For purpok of this-Agreement, tbe·lm~ sre DOt BorrowerS;1hey:lra "NonoObligor~" (that it., thl6 tenn is defined to mean (1) sfsnatorles On the S¢cUrity lnstrImIcnt but not obligated on tho Note or (ii) p!!tS¢ll.1 not obligated an the Note but added to title on !he Prop<:rty after the origiDmion of the above--re:fcrcncsd Loan). By hWhe:rJth#r sigIiltul'o(s) bolow Oil ihl, ASttement, the 'QQ~ NQll'OOli,gor MortgigOl'$ W:i:1c>wlcdgc ao4 agree (x) that hislherltheir interest ill the PIope:rty was, subject to tile Securir:y !nstrtDnem an<1 retDlIirIs subject to the Security lilstruwent as modified by this Agrccmem, a=d (y) lha:t hefshefthey ta:e bouud by all Qfthc tmns aad COI1ditl.oM O(thi$ ~ ~ept to tr.e extemthat such tertns and eondidOM ptrtaiu to any prcnilie or ObligatiOllI to pay LOall Servicer or Notl:! Holder any a:molmt.

. I

,

NON-OBUGOP.. MORtGAGORS

ACknowleftged and cgreccl to: --::-::---:::':'7."-::-:-----------

I Non..Qbiigor Mortgagor

:

NOV-17-200B 16:26

ARMS I

P.OH

Loan Modification Agreement Schedule A

AmO'~nt effectiVe From OSl01/20OS Through .'

• It your loan 1$ an ARM, this. mod pI!)'IIICtIt amount will be in effe<:t. tIlrough tne ~

dw on U\g fU'$l I .

ChangI2 Q:ltD Ih:i.t 0WJrS aftel' 07/:)112tt13. •

- InOlIJ(/OOc C(ltIm~ amount for1t1o mondl/y r.orow p;yln&nl. (WI'1iCl'll:llllllbjoct to change),

I

Bormwers' Initials _

I

I I

J

AMERICAN HOME MORTGAGE Servicing, Inc,

Re Loan No.

PrQpcrty Addre$$ Borrower(s)

American Home MortgaQI) S~cin91ttC.. 4600 Ragoot Btvll •• SUIte ZOO. fNing, TX 1SOS3-1~ • (677} 304..:)100· FIIlC $6043508113

: I

STATE'S EX~BIT

t

12117/2008

3:39PM (GMT-05:00)

l.OfIr! NumbOr# •••

10;11_

(

Americ:ln Hem!) Mortgage Servick'lg Inc, 4600 R~en[ Blvd" SI/!(e 200. 'Irvln~, TX 75063-1730' {8m a!J.4.3.100"'rilX S66-.i13S-I3113

I

12/17/2008 3:39PM (GMT-05:00)

tesn Hum~rt/ •• _

[0#_

Amonean Home MOrll}llge 5aM;:ing Inc., 4aOO Regen! SI~d" S\JI~ 200. l!Vlni/.. rx 7SOS3-17!O' (S1n 304-3100' r:3x 86$<436-8113

, I

i

; 12/17/2098 3:59PM (GMT-05:00)

loM NumbMot •••

ID#_

10. Pond/lIS Fotednure AdiQJU 10 tho mtlt lbnt 0. :fbte¢loJure action [~ pending reWing to tho l:.(tsU·at·lbc·li.me·lhis·~ becatnes" e'ffeCti\l~ (aG·c;ontemp~ In p:a~b SalxNe), the fotecl.o6utt uct.lon win not be dismI&5ed, btt l.cDc!er mdl ~ m: bat effCJ1S: to ensu.-e thai: the foreclosure is p~ed 00 hold pending ~ by I3«I'O\VetiI of die ~ of thlt A~ent. LtfI~ WIl rcttotn th::: right to ~ p(!£tp0l!e the fot=l.osurc, :fik notices With the court, publls.b tho JXlD.dlng to~ comlll~ sc:rvioe or~1iO tim: any ar:t~ te:lISocably D~SIII}' ~ maidWn. the ''l'=Idfni'status oisho forecJ03tl1'O ac::tion cWring the tennofdrlsAgreemenlllartberrnonJ, i!'l.cndiIrorits ~edfr8C1\l h¥.JIriot talhe c~ oftliiJ A~ :suhnllt1od &ny mouan or ordir to the C'CJUI't, I.enib' ma.ll not be teqUlred to witbdrlw such motion aT onlcr l>y 'lirtw: of this ~ and tho court Wll be pl;Imlimod It! (ems ider Jocll motlO!! andIar'oC!ltet aay appropriate on1cIr ill m:ptl1l15O to &\ICh motion.ln the eveat a jnd~ offon:c~ is enten:d on fOfCC~ AIel cr"1awdAy" is held after tbi. Agrc:;emdI1!.1 ()ifcn:d to~, bat before It i:s ~ by virtue ofthclr timely ped'.o.tmanoe.lt slulD be ~ wffimwn.

11. inabilil)' ~ PoG~ If a fOtcc!csutc $ale Ot-bOl day'" bIzs been sWdukd to OCC'lll $hortly .ancr Lender bAs ~clv«t both tb.~ a!pecM~~t:md lIllY ~uin:z1 dCIWXI pII)'lncn1 ft'om 1hc Borrowm, it ~ ngt be potiSible ibti.ei.ldcr to $tOp abc $ale OC1he JIropoIty or ~lf of title to tbc p~ m. a tbi~ !)arty S'Q1Ci1uer.lln suc:b cvem. Ihc ~ fIlI)'mCIlt wru bo returned to fho" Borrowm e.nd thiS. ~5b.all 11m DO fbrc=; or Cff~ Furthcntuirc. L.cnd.er ~ no liabD!cy, and B~ bmby llbsolve l.enOcrfrom iibhilily. f.or fiill!I'C to stop 1M saI~ or ~PJ UDWiDl1 reb¢ind or rcvcrcc ~ mlc or vestln,g should S\.ldl1Ilc or vesting ot:QII'".lfLmcb' is _10 10 S$Qp:rhc sale ofth: Propcdy and Barrow«; and Lender ~yundenalce ~ effort to ~ r:es:oiador :=vmo1besaIe or~ing.1hcn MY

rccs aod COS!!; assoe1atcd Witb ~ =ctiYity &han bo ~ W thO Loan b111IInce. .

12. MlII:rilIl~ ~ T~o« of ~ 'the BOI'tCI'tVCri shall be ~ to be. in matcriallKeacb. oflhis ~ lad 1his Agreement dl:lU ~ II1lhe ~tioa nfLcodct

wilhomfttnbe:r 1l1ltfce III liIlllJtIWIIm.t ua=;;ny Ot'tbo £oI.~ ~ .

~ Bol"tOWCl'lr flill *" ~ oompiy wllh my cf~ wnns cf'th~ A~nl 01" lhc Lear.

J:)g~ts(!or =ample, by failing to timely pay my of'lho p!l)'lnCDl$ eal1ed for in tbl:s ~) ....

b. 'l'be Ptupeny jJ abandoll:d or left ~ for more !han mty (GO) ~

Co Boaowcrc t:rartsitr &.0)1 in1e:est in 1110 ptoperty without l.I:mckr', pricJ' wriuen CotlSC:IU.

do ~ fa<;t! CJ' ~ rdaldlg: £0 :sotrowetl' fil1nDciIIl condition, which influencc4l.eadctUJ cnlet llIt'O tblS~ msubmntitilly Cb8:ngcd!czr1he '\VOl8t.

c. lncomct or ti'auduI~t 1nJ'crm:Ui011 ~ltItd by ~ to Induce ~ to

c=1I:t into thiJ ~ent. •

13. Effettarr~OSl! Ifm#.AgreemenI is \enMnalec!·diJo to ~ ~h as lCtli:ctth !Ibm:. the L<ndcr IIb:1ll ~ent1Uc:d Ib~ itl~ ~ 10 the te'.amomd ea:mditicm& oftbe Lou Documents as iflh!1 ~rmt hjd llIM.'!r cxlsfocL U. upon iCrmi~ o!~ ~nt, 1M Bonc'I'lerG:r=nniD in c1e:fttult ~ the Loan DacamCllSl, l.eIIder shall be ClltitlCd to ~ or resume ~ without me DCCcsslty ofr&provic1iDg !he &no~ with ArfI legally reqaired IIOUccs thPt were duly provid«.l by Lc:ntSet til Bor:rt:rwcll pdorlO =tecution or durins thl! brA of thiS As=etrlClU. JMder'$ walvCr ota breach by Bornnvar lIbllll not bCl CQ\'IIltrUCd iss. waiver of ru!:f ~ brcooh or failure of th~ sarn= tenn or c.onditian cr. waiver of ImY~ tcml. or onl1litloD In this Agn:ome:m. nt>!' ~! it &!llbblWl or ~ asry cOutsc o! dcallAg between 1h# partics..

Alnerican Home Mort~\le SeNlOi~ l:1~., 4600 Reg~(Il elvd .• SillS 200.

1r\\1lg. TX 15063-7130' (5m 3tl4-S'OO' F~ esG-4~G-811 ~ I

I

.

12/17/2008

3:39PM {GMT-05:00)

Loon Numllerll ....

10#_

BORROWERS MUST SICiNiAmi RIlTtlRN AU. PAGES

ArneriVlln Homo ~IQ~ Sl/r'Yicitlg l1C., 4600 Rosent Slvd .. $\lita 200. 1Mt'l9. 'I'X 15063-1'730 ~ {am 304-31 00" Fax 86(1.435--8118

I I

1211712008

3:39PM (GMT-05:00)

Loan Numblll# •••

~r1'l1tllll/: •••• __ Rd~Qu=ito~I..ooI __ •

OIXld 1'~TOCIp ~ i lUDr.tt03

2: Psym.enIi. Doc @ 9J6.24 2 PaymeRt; DIle @ 935.13 Foret:lOOUtU F= IIDd Costs

S 1872.48 S 1S70.:2.6 $ J97I.00 S94M>

S 1S1.i4 S 5966.111

OthcrEt:d

U1c~e$ :

. TotnIServiee:r ReinsbtmIICII\ AmoUnt. . :

IN WITNESS WHEREOF. the: vnd~ Jwlbave caused thls ~ II;) be ~tod t1S of the

datdlm above wriHen. . .

BOlTOWet:

~'------

BORROWEQ MUST SIGN,\Nf> RETURN ALL PAGBS

AMariean Home MQrtgage S~ Ino.,~G'R09Cnl BMI~ Suite 2tlO, IN'ng. TX 750Gl·173!J· [Sn)3C4'310{]' Fei8$e .. 435·S113

! 12/1712009

3:39PM (GMT-05;OO)

l.otll1 Numb~r$I •••

DueDctc 1~1.Amout11
DlIOO!Iit 1211612008 S 1975,00
I 1211112008 S23I4051I
2 01/1712009 $13]4.$11
3 OZ/J712OO9 $ 2314-'11
Total $6943,14 fnr1.Wl:
l'Tenn

fElAmount: SS~6.l8
rPtl~ S 935.13 3 ~~2805~
It $39.46 3 SllUB
i"fmoITlI,p_ S 9.6'0 3 $2;UO
:toW 58918.15
.!hm'~: S 191$.00

t~I~' 56943,15 :PLAN l'A\'MENT DO'Allil

~ ..

t·.~ ~i' ... ,-t- ~ .

. ~.

,..' .

:Dalcd:. ~

BORROW5IW J.nJST SIGN )\'NI)(RElURN ALL PAGES

NonCE TO OORROwtmS !

~.bo a:cJvl.&ed &bat 1betoJal1mcd CD 1h\s ~Bls~rll)7 ~ en several wump.Ii~. rust, it pmsumas thatecCb instntJmentli.stl:d bmcm'WDtbe ma&1imely, JICCOrding: 10 1M IlbOVe t:dled\lJ4. ShQQJcl ~m be JIUIde early. o:::rQm oftbc:.J~lnrt tlO\ ~ II:COI'UOi! ~ (sudl as. foe dC.IImp1e, the la10 charges and ~ ~ f~ lis!:d in lberlght band colmmllhal he6110! yet como ~ !1 the time Ot'1'ei~, wi1l noI be. includeclln till) 4I'/IOQnt n8~ to reWr.a14, Thor, dwald you desIre 10 rolllGWC =ny. ~ wi (817)-304-3100 to get all ~

rcitwtlllcmc:m Gture. ..

.

Amctieoo Home MOrigllge SaMcing Itlc.. 4000 Regeril e:Vd" Suite 200. lIVing. TX 76063·1730 - (!)m ~100- F~~$H11!l

I

121171200B

3:39PM (GMT-06:00)

Loon Numbcr:: _

Borrowora acknowledge that th~ h:llIt: read and underst8n4 tblIt :l.bove notice •

. ',Borro't'o'Cl':

. Dnt«l: _

BO~ROWER.S MUST SIGN i\N~ Rf.TURN ALL PAGES

~I"I HOm& MOCleese Servichg Inc.., 4600 ~or,l 6IVd •• S\J!1e 200. lrvl1lg, IX 160113-1730' {8m 3Q4...3100· Fax 856-4:35-8113

I

~D#_

NOW THEREFORE. in consideration of the Loan Servicer forgoing pursuit of its legal remedies under the Security Instrument relating to foreclosure and sale of the Property, and for other good and valuable consideration, the receipt and sufficiency of

which is hereby acknowledged, Borrowers understand, acknowledge, covenant and agree 1fII"'11111!!~!!!!!!I!I~-"

as follows: ~ STATE'S

"'~ EXHIBIT

g C

~

~

LMOCDO(Jol ... ..

V 1.2 (1)43009). '"

AMERICAN HOME MORTGAGE SERVICING, INC.

SECURITY RETENTION AGREEMENT (provldlngfor a Fixed Inll!ft:.ff RaIl!)

Re:

Loon NUlllbe,. Property Addre

Borrower(s):

.. ~ ... -.--.. ~ .

This Security Retention Agreement (hereinafter "Agreement"), is made and entered Into as of August 1.2009 (the HEffective Date") by and between American Home Mortgage

Servicing, Inc. (hereinafter <ILOilO Servieer") and L & I F

(hereinafiei'collectively referred to as "Berrowers"),

RECITALS:

Borrowers executed that certain promissory note (hereinafter "Note") and mortgage, deed of'trust or deed to secure debt (hereinafter "Security Instrumenf') on or about October 2&. 2005, in the original principal amount of U.S $104.000.00, (hereinafter collectively referred to as "Loan" or "Loan Docum~!!t('); and

Borrowers secured the Loan by virtue of the Security Instrument. covering the premises

commonly known as. (hereinafter referred to as

"Property"): and

Borrowers debtS have been discharged pursuant to a Chapter 7 bankruptcy. but Loan Servlcer retained and reserved its right under the Security Instrument to foreclose on the

PToperty;wnd .

Borrowers have Infcrmed Loan Servicer that it wiahes to remain In the Property and continue to make payments on the Loan; !U1d

Loan Servicer has stated that it will forego pursuit of the legal remedies available to it, provided that Borrowers execute and fulfill the terms of this Agreement.

AGREEMENT:

SMn~~d FIgelor6

. :

1. Reettals: The above recitals are true and correct and incorporated herein by

reference, .

2. No Personal LiabJllty: Since Borrowers' dehl9 have prEVIously been discharged pursuant to a Chapter 7 bankruptcy and since Borrowers did not sign em agree~4r~~.mr!Pi"g the Loan, this Agreement Is not to be construed as an attempt to co?lect a 'ilebtftom Borrowm..l}cponaUy. Borrowers undmtand a!!~ L~an Se.ryker. a~know~dges ~!l!lt0an Senker has no rlgllt and no Intention to etiJofce the Loan agalilit Bonowers and that Loan

. ServlCer's only recowse,lfthe Loan Is not current (IS sel/orth in the Loan Documents O11d thls Agreement, is to foreclose on the Property.

3. Forbearance by Loan Servleer: Even though Borrowers are no longer personally liable to repay the Loan, Loan Servicer reserves its right under the Security Instrument to foreclose on the Property, which Borrowers acknowledge and agree they pledged B3 security for the Loan. Borrowers hereby request that Loan Servicer forbear from pursuing foreclosure and enter arto this Agreement, which specifies the steps they must take in order to allow them to retain the Property. In couaideratlon of Borrowers' agreement to abide, and only for 80 long as they continue to abide, by all ofthe terms ana conditions of this Agreement, Loan Servicer hereby agrees to forbear fr~ foreclosing on the Property.

4. Payments: In consideration of Loan Servicer forbearing from foreclosing and allowing BO[f.pV{~rs to remain in the Property.,.-Borrowers must make monthly Property retention payments r'Payment" Or ';Payments") in the amounts and by the dates, and in accordance with the tenus and conditions, as set forth in this Agreement

ft. As of lhe Effective Dale, the amount payable under the Note and the Security Instrument is U,S. $114,699.31 (the "New Prlndpat Balance"), consisting of the unpaid wnount(s) loaned to Borrowers by Under plus any accrued and unpaid interest and other amounts capitalized as set forth in Schedule "A," attaohed hereto and made a part hereof.

b. Borrowers shall pay an earnest money payment (the «Deposit") in the amount of U.S. $1,350.00, which Deposit must be received by Loan Servicer no later than 5:00 P.M. Eastern Time, (N/A). either: (i) via overnight mail sent to the attention of American Home Mortgage Servicing, lnc., 6501 Irvine Center Dr. Irvine CA 92618. ATIN: DD· HPO, in the form of guaranteed funds (certified check, cashiers check or money order) made payable 10 American Home Mortgage Servicing, Inc., Or (li) via Western Union "qulck collect" to Code City: Option, Code State: CA.

c. The Deposit shall be deducted from the New Principal Balance. for a total outstanding balance oil the Loan of'Il.S. $113,349.31 (the "Reduced Princlpal Balance"),

LMOOOOG-l v )j (0431JOS)

, ,

SRAfixtd Pas.~3 er6

d. Interest shall be charged on the Reduced Principal Balance at the yearly rete of'5.25%, from the Effective Dale until November 1,2035 (the "Maturity DBte1').

e. Borrowers shall make Payments ofprincipal and interest (Plus any amounts due for taxes and insurance as set forth in Schedule "A'1 in the amountofU,S.li663.69. All Payments must be received by Loan Servieer, clearly marked with the above-refereneed Loan number, 'no later than 5;00 P.M. Eastern Time, beginning on September I, 2009, and continuing on the same date of each and every succeeding month until the Reduced Principal Balance and interest are paid in fujI. lfthe Loan is an adjustable-rate mortgage ("ARM') loan and Borrower receives an ARM adjustment notice prior to the Payment beginning date Indicated in the preceding sentence, Borrowers should ignore SUch notice and make Payments In accordance with this Agreement. If on the Maturity Date, Borrowers still owe amounts under the Loan, as amended by this Agreement, Borrowers wUl'pay these amounts in fun on the Maturity Date.

r. Payments are subject to increase at any time pursuant to paragraphs 5 and 6 below.

g. As to each and every Payment made under this Agreement, time shall be strictIy oJ the essence and_~flele shall be no grace period.

5. Additional Fees and Costs; Increase in PaymenC:

11. Additional fees, expenses and charges relating to the Loan that have not been billed to or incurred by Loan Servicer or debited to the Loan account as of the Effective Date (including but not limited to late fees, appraisal and broker price opinion fees, property inspection fees, Loan Servieer advances for payment of Borrowers' taxes and/or insurance, attorney fees and expenses, collection fees and My other expenses incurred by LOM Servicer to protect its security interest in the Property), or clerical errors later discovered in the calculation of the Payments, (all ofwbicb. fees, expenses, cbarges and errors, together with late charges, are collectively referred to as "Additional Costs',), are not included in the Payment amount and must be paid by Borrowers in order to fully satisfY the terms

and conditions of this Agreement. ,

b. In order to ensure payment by Borrowers of such Additional Costs, Loan Servicer may, upon written notice by Loan Servicer to Borrowers and in Loan Servicer's sole and absolute discretion, either; (i) demand immediate payment in full of the Additional costs, (ii) odd such Additional Costs to the Reduced Principal Balance, or (iii) add a prorata amount of the Additional Costs to the Payment in on amount necessary either to pay the Additional Costs by a certain date as specified in such written notice or to pa.y the Loan off by the Maturity Date.

6. Taxes and Hazard Insurance; Increase in Paymenta; Should Loan Servicer require Borrowers, pursuant to the terms of the Loan Documents, to establish an impound account with Loan Servlcer for payment of taxes and insurance, or should the monthly contribution to any existing impound ecccunt lncrease pursuant to a periodio escrow analysis, the Payments may increase accordingly. Should the monthly contribution to any existing impound account decrease pursuant to II periodic escrow analysis. the Payments will decrease accordingly.

7 .. Effect of Agreement; Forbearance: This Agreement shall be o/absolutely no force Or effectt and no {leliOII )111ft be taken bJ'Loan Servicer to forbear from /orecfosing on the Property, or to p(lstpone fhe/oreclosure or sale oflhe Propert)l (ifappUcab/e), unless and un:tiJ Loan Servlcer has received both 'his Agreement,julf.JJ executed bJ' Borrowers. and an),required Deposll in theform and In the manner as outlined In subparagraph 4b ahove by no /ater than 5:00 P.M. Eastern Time, July 8, 2009., This Agreement is not considered "received" by Loan Servicer unless and untU It has been internally date stamped. by Loan Servicer and delivered in hand to Tho Home Retention T earn at 6501 Irvine Center Dr, Irvine CA 92618, AnN: DD·HPO.

8, Material Breach and Termination of Agreement: Borrowers shall be considered to be in material breach of this Agreement and this Agreement shall automatically terminate under any of the following circumstances:

a. Borrowers fail to strictly comply with any of the terms of this Agreement or the Loan Documents as revised by this Agreement.

b. The Property is abandoned orleftvacan! for more than sixty (60) days,

e. Borrowers transfer My interest tn the Property without Loan Servicer's prior written consent

9. Effect of Termination: If this Agreement is terminated due to material breach as set forth above, the Loan Servicer shall be entitled to pursue its remedies pursuant to the terms and conditions of the Security Instrument as ifthls Agreement had never existed.

10. No Defenses: Borrowers agree that, except I1S set forth in paragraph 2 above, they have no defense. setoff or counterclaim related to the Loan or the Property. or to Loan Servtcer's activities relating to the Loan or the Property. .

U. AdvIce of Attorney: Borrowers warrant and represent that: (i) in executing this Agreement they have relied upon legal advice from the attorney of their choice. (ii) this Agreement has been read by Borrowers and such attorney. and its consequences (including risks. complications, and costs) have been completely explained to Borrowers by that attorney, and.(iii) Borrowers fuJly understand the terms of this Agreement.

SRA fi~td Paga 4of6

LMOOOOD4 V t.2(043oo9)

12. Loan Documents: All of the terms and conditions of the Security Instrument shall remain in full force and effect except as expressly modified by this Agreement. Nothing contained in this Agreement shall be construed to impair the Security Instrument or affect or impair Loan Service!' s rights or powers under the Securlty Instrument to recover any sum due under the terms of this Agreement, including any Additional Costs. Borrowers will comply with all covenants, agreements, and requirements of the Security Instrument; however. the following tenus and provisions are forever canceled, null and void. as of the Effective Date:

a, All terms and provisions of the Note end Security Instrument (if any) providing for, implementing. or relating to, any change or adjustment in the rate of Interest payable under the Note.

b. All tel'lllli and provisions of any adjustablo rate rider. or other instrument or document (If any) that is affixed to, wholly or partially. incorporated into, or is part of. the Note Or Security Instrument and that contains any such terms and provisions as those referred to in (a) above.

13. Notice: Any notice by Loan Servicer to Borrowers under this Agreement shall be deemed given if delivered by regular. certified or overnight mail to the Property address as it appears in. this Agreement.

_. .

14. Severability: To the extent that any word, phrase. clause, or sentence ofthiB Agreement shall be found to be Illegal or unenforceable for any reason, such word, phrase, clause. or sentence shall be modified or deleted in such II manner 50 as to make the Agreement, as so modified. legal and enforceable under applicable law, provided that. should such modification or deletion rnate~a1ly diminish the benefit of this Agreement to either Loan Servlcer, in its sole discretion and election. or Borrowers, in their sole discretion and election. the Agreement shall. only after written notice given by the electing party to the other party. be of no force or effect and the relationsbip of Loan Servicer and Borrowers shall be entirely governed by the provisions of the Loan Documeats,

NOTICE TO BORROWERS WITH ADJUSTABLE-RATE LOANS: Por Borrowers with an adjustable-rate loan, please read this notice carefully. In accordance with subparagraphs 12(8) and (b) of this Agrement; you (Borrowers) untier3tand that the Loan is modified from an adjustable-rate loan 10 a fixed-rete loan. An adjustable-rale loan differs from a' fixed-rate loan. With a fixed-rate loan. the interest rate stays the same during the life of the loan. With an adjustable.mte loan. tbe interest rate changes periodically, In relation to an index and a margin, and Payments may go up or down accordlngly, IF INTEREST RATES DECREASE, AN ADJUSTABLE.RATE LOAN COULD BE LESS EXPENSIVE OVER A LONG PERIOD THAN A FIXED·RATE LOAN. YOU UNDERSTAND THAT BY MODIFYING THIS LOAN TO A FIXED~RATE LOAN, YOU ARE FOREGOING 'rms POTENTIAL ADVANTAGE.

SRI! FI.~d P~gcj or6

l.M 0 (100!)4 V 1.2 ilJ43009)

IN WITNESS WHEREOF, the undersigned has/have caused this Agreement to "be executed as of'thedate firs! above written.

Dated: _

Borrower: _======_

-

,."

SRAFi~c~ P',e 6 or6

LJ,10000!l4 v 1.2 (lI4,1009)

Loan Modlficat1on Agreement Schedule A

It.unnr BOfTt7tta'r{t[JII e , ·~e."'~L_ Nvm~r.

....... \ ~ .~

'I.

DESCRIPTION OF TOTAL AMOUNT DUE

flMOUNTOUe

Current P!lncloII a.laneo

!

Tola! Amounl ca¢!3!lte,1

I

NEW PRINCIPIU. 8A~Ce

I

so.oo

$0.00

1l0Jl'll'WP11nlilali hvm:

Noo'()Wg« InltI~b Ilene

Loan Modification Agreement Sohedule A

pl:$CRlpnoN OF TOTAL AMOUNT DUE-

MlOUNTDUa

I

I

$1CSa9-uol

I

~.n5.011

SiI33-1;.31

$1.00

DofGrt~d A

Hew PrlnalJl,aI ud ll1~t"l PlYItllllll EffaellY. t" illnOOD 11l3.8i
Uoft\lllyTnx P\roIln!llI"· '118~
MonJ!llr_tnllt1lnca Poymont- $41.17
Mon\hl1 MOIIgQge Inwtlu~ Pavmettt SD.OO
T~~~mil1~ UII;I.IO
:_,-"",, __ .,,_..u_J""''''''' '...,.lIp1)!1>OnllldjOotl<>(I1OIIQf" ......... _OI' Bllll1lW;r Wlil. hc~

Non-(ltl>\lor lIlIt1JII, h~r~ _

RI>. 201!IIT.iIl!!

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