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image18255Texas Neighborhood Stabilization Program (NSP) (Purchase Money) Promissory Note ( "Note ") Date: MAY 20, 2013 Borrower: KAREN SULEMON Borrower's Mailing Address: 293 WATKINS STREET HUNTSVILLE, WALKER County, TX 77320 Lender: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas ( "TDHCA ") Lender's Address (including County): 211 East llth St., Austin, Travis County, Texas 78701 P.O. Box 13941, Austin, Travis County, Texas 78711 -3941 Place for Payment: TDHCA Loan Servicing 332 -05 P.O. Box 13245 Austin, Travis County, Texas 78711 -3245 Principal Amount: Eighty Thousand Seven Hundred Seventy -Three And No /100 Dollars ($80,773.00) Annual Interest Rate: Zero percent (0 %) per annum Maturity Date: JUNE 01, 2043 Annual Interest Rate on Matured, Unpaid Amounts: Ten percent (10 %) per annum Terms of Payment (principal and interest): Principal shall be due and payable in monthly installments of Two Hundred Twenty -Four And Thirty- Seven /100 Dollars ($224.37) each, payable on the first day of each and every calendar month, beginning JULY 01, 2013 and continuing regularly thereafter until JUNE 01, 2043 ( "maturity"), on which last mentioned date the entire unpaid balance of principal then owing shall become immediately due and payable. Any default under the NSP Purchase Money Deed of Trust securing this Note shall be deemed to be a default under this Note. If any part of the collateral securing this Note is transferred or conveyed without Lender's prior, written consent, or if Borrower ceases to occupy the mortgaged property as his or her principal residence, any unpaid or un- forgiven balance of this Note is immediately due and payable and Lender may invoke any remedies provided under the NSP Purchase Money Deed of Trust securing this Note. If the collateral is residential real property containing fewer than five dwelling units or a residential manufactured home occupied by Borrower, exceptions to this provision are limited to (a) a subordinate lien or encumbrance that does not transfer rights of occupancy of the property; (b) creation of a purchase money security interest for household appliances; (c) transfer by devise, descent, or operation of law on the death of a co- owner; (d) grant of a leasehold interest of three years or less without an option to purchase; (e) transfer to a spouse or children of owner or between co- owners; (f) transfer to a relative of owner or on owner's death; and (g) transfer to an inter vivos trust in which owner is and remains a beneficiary and occupant of the property. Upon the sale of the mortgaged property, any unpaid balance of the Note shall be due and payable in full from the available Net Proceeds from the sale of the mortgaged property pursuant to 24 CFR §92.254. Net Proceeds of a sale are the sales price of Property minus the closing costs, any superior lien loan repayment and any other necessary TDHCANSPNOTEPMF Page 1 of 4 transaction costs. If the Net Proceeds are insufficient to repay the outstanding balance of the Note in full and Borrower's investment (which includes any portion of initial down payment paid by Borrower combined with the value of any capital improvements made with Borrower's funds), the Borrower's investment is paid in full first from the available proceeds from the re -sale and the Note is repaid to the extent that proceeds are available, but only in the event the mortgaged property was sold for an amount not less than the current appraised value as then appraised by the appropriate governmental authority without the consent of Lender. If there are no Net Proceeds and the mortgage property was sold for an amount not less than the current appraised value as then appraised by the governmental authority, repayment of the Note is not required. Security for Payment: This Note is secured by a vendor's lien retained in a deed by CITY OF HUNTSVILLE, to Borrower, dated of even date herewith and additionally secured by a NSP Purchase Money Deed of Trust of even date herewith from Maker to Timothy K. Irvine, Trustee, which covers the following described property to -wit: SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES., which has a street address of 293 WATKINS STREET, HUNTSVILLE, TX 77320 Borrower promises to pay to the order of Lender the Principal Amount plus interest, if applicable. This Note is payable at the Place for Payment and according to the Terms of Payment. All unpaid amounts are due by the Maturity Date. After Maturity Date, Borrower promises to pay any unpaid principal balance plus interest at the Annual Interest Rate on Matured, Unpaid Amounts, if applicable. If any payment required under this Note is not paid within 15 days after it becomes due and payable, then Borrower shall pay to Lender, subject to the provisions of this Note limiting the amount of interest, the payment of a late charge (the "Late Charge ") to compensate Lender for the loss of use of funds and for the administrative expenses and costs of handling such delinquent payment equal to a one -time charge of five percent (5 %) of the amount of such payment that was not timely paid or Seven Dollars and Fifty Cents ( "$7.50 "), whichever is greater (but such Late Charge together with all interest payable hereon shall not exceed the maximum lawful rate under Applicable Law). Lender is not obligated to accept any past due payment that is not accompanied by a Late Charge, but may accept such payment without waiving its rights to collect the Late Charge. In no event shall a Late Charge be payable by reason of the acceleration of the indebtedness evidence by this Note; therefore, a Late Charge would only be due and payable with respect to payments under this Note which became delinquent prior to the acceleration of the indebtedness evidenced hereby. In the event of default in the payment of any part of the Principal Amount or interest on this Note and Borrower's failure to cure the default within thirty (30) days after Lender's delivery of written notice of default to Borrower, or in the event of default in the performance of any agreement contained in the Loan Agreement or any document securing the payment of this Note or otherwise executed in connection herewith, and Borrower's failure to cure the default within thirty (30) days after Lender's delivery of written notice of the default to Borrower, then the holder of this Note shall have the unconditional right, without demand, notice, or other action, to declare the unpaid and un- forgiven principal balance of this Note at once due and payable and to foreclose each lien and security interest securing the payment of this Note, if applicable, either under any power of sale contained in any documents creating such lien or security interest or by court proceedings, as the holder may elect. Notice shall be deemed to have been delivered upon actual receipt or upon deposit, if deposited in an official depository of the United States Postal Service, properly addressed to the party entitled to the notice, marked certified mail, return receipt requested, and containing sufficient postage. For the purpose of notice, Borrower's address is 293 WATKINS STREET, HUNTSVILLE, WALKER County, TX 77320. Borrower shall have the right to change its address and specify any other address within the United States of America by at least ten (10) days' written notice to Lender. If this Note is placed in the hands of an attorney for collection or is collected by legal proceedings of any kind, Borrower agrees to pay all costs of collection, including reasonable attorneys' fee and costs. All agreements and transactions between Borrower and Lender, whether now existing or hereafter arising, whether contained herein or in any other instrument, and whether written or oral, are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of the Maturity Date hereof, prepayment, demand for payment or otherwise, shall the amount contracted for, charged or received by Lender from Borrower for the use, forbearance, or detention of the Principal Amount indebtedness or interest hereof, which remains unpaid TDHCANSPNOTEPMF Page 2 of 4 from time to time, exceed the maximum amount permissible under Applicable Law, it particularly being the intention of the parties hereto to conform strictly to the law of the State of Texas and of the United States of America, whichever is applicable. Any interest payable hereunder or under any other instrument relating to the loan evidenced hereby that is in excess of the legal maximum under Applicable Law, shall, in the event of acceleration of Maturity Date, prepayment, demand for payment or otherwise, be automatically, as of the date of such acceleration, prepayment, demand or otherwise, applied to a reduction of the Principal Amount indebtedness hereof and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of such Principal Amount, such excess shall be refunded to Borrower. To the extent permitted by Applicable Law, determination of the legal maximum amount of interest shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the period of the full stated term of the loan, all interest at any time contracted for, charged or received from Borrower in connection with the loan, so that the actual rate of interest on account of such indebtedness is uniform throughout the term thereof. Borrower shall pay a charge of $25.00 for any check returned for any reason. Except as provided in this Note, Borrower and each endorser and guarantor of this Note jointly and severally waive grace, presentment for payment, notice of renewals and extensions, notice of nonpayment, notice of protest, notice of and demand for payment of installments or other amounts coming due under this Note that are not paid when due, notice of intent or election to accelerate Maturity Date or the actual acceleration of Maturity Date of the indebtedness evidenced by this Note, and diligence in the collection of this Note, in filing suit on this Note and in seizing or foreclosing on any collateral securing this Note, if applicable, or and agree to one or more extensions of Maturity Date and partial payments before or after Maturity Date without prejudice to rights of the holder of this Note. All obligations of this Note are the joint and several obligations of each signer. This Note shall be governed by and construed in accordance with the laws of the State of Texas and the United States of America from time to time in effect. The term "Applicable Law" as used herein means (1) the law pertaining to maximum rates of interest that is now in effect and (2) any law that comes into effect at any time in the future allowing a higher maximum interest rate than the law now in effect. When the context requires, singular nouns and pronouns include the plural. TDHCANSPNOTEPMF Page 3 of 4 THIS WRITTEN AGREEMENT AND THE OTHER WRITTEN AGREEMENTS, INCLUDING THE COLLATERAL AGREEMENTS, SIGNED CONTEMPORANEOUSLY WITH THE SIGNING HEREOF REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. BORROWER: �1 L per' (Seal) KA EN SULEMON - Borrower TDHCANSPNOTEPMF Page 4 of 4 (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower METES A.NI) BOUNDS. DESCRIPTION of 293 Watkins Road, Huntsville, Texas Being a 0.1628 of an acre (7,090 square feet) tract of amid located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of those certain tracts of laud described in Volume 2:10, Page 518 and. Volume 315, Page 465 of the Deed Records of WaikerCounty, Texas (D.R.W.C.T.); said 0.1628 of an .acre of land being more particularly described by metes and bounds as follows: BEGINNING at a found 1/2 -inch iron rod found in the west line of that certain tract of land conveyed to Willie and Diann Wilmore by deed. recorded in Volume 526, Page 55 of said Deed Records, being in the southerly occupied. line of Watkins Road. (Width varies) (no record information found); THENCE, South 00 °23'48" East, a distance of 50.00 feet, (called South 00 °25'40" East, 50.00 feet) along the westerly line of said Wiimore tract, to a found 1/2 -inch iron rod for the northeast corner of that certain tract of land convey to Rendie Edwards by deed recorded. in Volume 169, Page 334 of said Deed Records; THENCE, North 82 °38'30" West, a distance of 155.7i feet, (called North 82 °39'07" West) along the north line Of said 'Edwards tract, at a distance of 106,68 feet passing rt found 1/2 -inch iron pipe found for the northwest corner of said Edwards tract, and continuing to a set. 5/8 -inch iron roil with "GS" cap set in the easterly line of that certain tract of land conveyed to Mineola Crooks, by deed recorded in Volume 159, Page 521 of said. Deed Records; THENCE, North 23 °29'34" East, a distance of 50.00 feet, along the easterly line of said Crooks tract to a set 5/8 -inch iron rod with "GS" cap ih the southerly line of Watkins Road; THENCE, Soutar 83 °16'59" ,East, a distance of 1.35.48 feet (called South 82 °39'07" .East), along the southerly line of Watkins .Road to the.POitit of Beginning and containing 0.1628 of an acre (7,090 square feet) tract of land. Horizontal Control is based on holding City of Huntsville Monuments No. 69.14 (grid coordinate of North = 10,261,018.90 & East= 3,802,182.55.) and 7120 (grid coordinate of North = 10,260,833.15 S; East= 3,802,182,77). .Bearings. described are related. to the Texas Coordinate System of 1983, Central. Zone. Distances shown are US Survey Feet in ".Field . Horizontal" units and may be converted to "GRID" units by multiplying by a combined scale factor of 0.99988. Plat of even date accompanies this description. Prepared by: GeoSolutions, LLC 25814 Brulde Road Spring, Texas Tel. 281 -68.1 -9766 Job No. 12-249-030 EXHIBIT "A" PAGE L OF 1 Return to: WALKER COUNTY' TITLE COMPANY 1109 UNIVERSITY AVENU HUNTSVILLE, TEXAS 77340 GF►di3 -�� -I Texas Neighborhood Stabilization Program (NSP) Purchase Money Deed of Trust ( "Deed of Trust ") NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Date: MAY 20, 2013 Grantor: KAREN SULEMON, A SINGLE PERSON Grantor's Mailing Address: 293 WATKINS STREET, HUNTSVILLE, TX 77320 Trustee: Timothy K. Irvine of Travis County, Texas Trustee's Mailing Address: P.O. Box 13491 Austin, Travis County, Texas 78711 Beneficiary TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas. Beneficiary's Mailing Address: 211 East 11th Street Austin, Travis County, Texas 78701 NSP Purchase Money Promissory Note (Note): Date: Of even date herewith. Original principal amount: Eighty Thousand Seven Hundred Seventy -Three And No /100 Dollars ($80,773.00) Maker: KAREN SULEMON Payee: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas Maturity date: JUNE 01, 2043 Terms of Payment: As provided therein Property: SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. Prior Liens: N/A TDHCANSPDOTPMF Page 1 of 9 Other Exceptions to Conveyance and Warranty: 1. Visible and apparent easements on or across property which may not appear of record. 2. All coal, lignite, oil, gas and other minerals in, under and that may be produced from the land, together with all rights, privileges, and immunities relating thereto. 3. Restrictions, covenants, easements and outstanding mineral reservations, rights to royalties, if any shown of record in the hereinabove mentioned county and state, all to all zoning laws, regulations and ordinances of municipal and /or other governmental authorities, if any. 4. Ownership of all oil, gas and other minerals; and rights of all parties claiming by, through or under said mineral owner(s). For value received and to secure payment of Note, Grantor conveys the Property to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the Other Exceptions to Conveyance and Warranty. On payment of Note and all other amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Beneficiary will release it at Grantor's expense. A. Grantor's Obligations Grantor agrees to: 1. keep the Property in good repair and condition; 2. pay all taxes and assessments on the Property before delinquency; 3. defend title to the Property subject to the Other Exceptions to Conveyance and Warranty and preserve the lien's priority as it is established in this Deed of Trust; 4. maintain, in a form acceptable to Beneficiary, an insurance policy that: a. covers all improvements for their full insurable value as determined when the policy is issued and renewed, unless Beneficiary approves a smaller amount in writing; b. provides fire and extended coverage, including windstorm coverage; c. protects Beneficiary with a standard mortgage clause; d. provides flood insurance at any time the Property is in a flood hazard area; and e. contains such other coverage as Beneficiary may reasonably require. 5. deliver the insurance policy to Beneficiary within ten days of the date of this Deed of Trust and deliver renewals to Beneficiary at least fifteen days before expiration; 6. obey all laws, ordinances, and restrictive covenants applicable to the Property; 7. keep any buildings occupied as required by the insurance policy; and 8. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior lien notes and abide by or cause to be abided by all prior lien instruments. B. Beneficiary's Rights 1. Beneficiary may appoint in writing a substitute trustee, succeeding to all rights and responsibilities of Trustee. TDHCANSPDOTPMF Page 2 of 9 2. If the proceeds of Note are used to pay any debt secured by prior liens, Beneficiary is subrogated to all the rights and liens of the holders of any debt so paid. 3. Beneficiary may apply any proceeds received under the insurance policy either to reduce Note or to repair or replace damaged or destroyed improvements covered by the policy. If the Property is Grantor's primary residence and Beneficiary reasonably determines that repairs to the improvements are economically feasible, Beneficiary will make the insurance proceeds available to Grantor for repairs. 4. Notwithstanding note terms to the contrary, and unless applicable law prohibits, all payments received by Beneficiary from Grantor under Note or this Deed of Trust may, at Beneficiary's discretion, be applied first to amounts payable under this Deed of Trust and then to amounts due and payable to Beneficiary under Note, to be applied to late charges, principal, or interest in the order Beneficiary in its discretion determines. 5. If Grantor fails to perform any of Grantor's obligations, Beneficiary may perform those obligations and be reimbursed by Grantor on demand for any amounts so paid, including attorney's fees, plus interest on those amounts from the dates of payment at the rate stated in Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of Trust. 6. If there is a default on Note or if Grantor fails to perform any of Grantor's obligations and the default continues after any required notice of the default and the time allowed to cure, Beneficiary may: a. declare the unpaid principal balance and earned interest on Note immediately due; b. direct Trustee to foreclose this lien, in which case Beneficiary or Beneficiary's agent will cause notice of the foreclosure sale to be given as provided by the Texas Property Code as then in effect; and c. purchase the Property at any foreclosure sale by offering the highest bid and then have the bid credited on Note. 7. Beneficiary may remedy any default without waiving it and may waive any default without waiving any prior or subsequent default. C. Trustee's Duties If directed by Beneficiary to foreclose this lien, Trustee will: 1. either personally or by agent give notice of the foreclosure sale as required by the Texas Property Code as then in effect; 2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to Conveyance and Warranty and without representation or warranty, express or implied, by Trustee; 3. from the proceeds of the sale, pay, in this order: a. expenses of foreclosure, including a reasonable commission to Trustee; b. to Beneficiary, the full amount of principal, interest, attorney's fees, and other charges due and unpaid; c. any amounts required by law to be paid before payment to Grantor; and d. to Grantor, any balance; and TDHCANSPDOTPMF Page 3 of 9 4. be indemnified by Beneficiary against all costs, expenses, and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created by this Deed of Trust, which includes all court and other costs, including attorney's fees, incurred by Trustee in defense of any action or proceeding taken against Trustee in that capacity. D. General Provisions 1. If any of the Property is sold under this Deed of Trust, Grantor must immediately surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at sufferance of the purchaser, subject to an action for forcible detainer. 2. Recitals in any trustee's deed conveying the Property will be presumed to be true. 3. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any other remedy will not constitute an election of remedies. 4. This lien will remain superior to liens later created even if the time of payment of all or part of Note is extended or part of the Property is released. 5. Application of Payments. If any portion of Note cannot be lawfully secured by this Deed of Trust, payments will be applied first to discharge that portion. Unless applicable law provides otherwise, payments will be applied next, to principal due; third, to interest due; fourth, to amounts payable for taxes and insurance escrow under this part D, paragraph 27 and last, to any late charges due under the Note. 6. Successors and Assigns Bound. This Deed of Trust shall bind, inure to the benefit of, and may be exercised by successors in interest of all parties. 7. Hazard or Property Insurance. It is recommended by Beneficiary that Grantor shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Beneficiary requires insurance in accordance with 24 CFR Part 58.6. If Grantor does not maintain coverage described above, Beneficiary may, at Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property in accordance with paragraph 9. Unless Beneficiary and Grantor 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 Note. If under part B, "Beneficiary's Rights" and part C, "Trustee's Rights ", the Property is acquired by Beneficiary, Grantor's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Beneficiary to the extent of the sums secured by this Deed in Trust immediately prior to the acquisition. 8. Usury; Interest. Interest on the debt secured by this Deed of Trust will not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess will be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides any conflicting provisions in this and all other instruments concerning the debt. 9. Protection of Beneficiary's Rights in the Property. If Grantor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying TDHCANSPDOTPMF Page 4 of 9 reasonable attorneys' fees and entering on the Property to make repairs. Although Beneficiary may take action under this paragraph 9, Beneficiary does not have to do so. Any amounts disbursed by Beneficiary under this paragraph 9 shall become additional debt of Grantor secured by this Deed of Trust. Unless Grantor and Beneficiary 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 Beneficiary to Grantor requesting payment. 10. Mortgage Insurance. If Beneficiary required mortgage insurance as a condition of making the loan secured by this Security Instrument, Grantor shall pay the premiums required to maintain the mortgage insurance in effect. lf, for any reason, the mortgage insurance coverage required by Beneficiary lapses or ceases to be in effect, Grantor 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 Grantor of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Beneficiary. If substantially equivalent mortgage insurance is not available, Grantor shall pay to Beneficiary each month a sum equal to one - twelfth of the yearly mortgage insurance premium being paid by Grantor when the insurance coverage lapsed or ceased to be in effect. Beneficiary 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 Beneficiary, if mortgage insurance coverage (in the amount and for the period that Beneficiary requires) provided by an insurer approved by Beneficiary again becomes available and is obtained. Grantor shall pay the premiums required to maintain mortgage insurance in effect, or to provide a Toss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Grantor and Beneficiary or applicable law. 11. Inspection. Beneficiary or its agent may make reasonable entries upon and inspections of the Property. Beneficiary shall give Grantor notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 12. Condemnation. Grantor assigns to Beneficiary all amounts payable to or received by Grantor from condemnation of all or part of the Property, from private sale in lieu of condemnation, and from damages caused by public works or construction on or near the Property. After deducting any expenses incurred, including attorney's fees and court and other costs, Beneficiary will either release any remaining amounts to Grantor or apply such amounts to reduce Note. Beneficiary will not be liable for failure to collect or to exercise diligence in collecting any such amounts. Grantor will immediately give Beneficiary notice of any actual or threatened proceedings for condemnation of all or part of the Property. 13. Subrogation. Any of the proceeds of the Note used to take up outstanding liens against all or any part of the Property have been advanced by Beneficiary at Grantor's request and upon Grantor's representation that such amounts are due and are secured by valid liens against the Property. Beneficiary shall be subrogated to any and all rights, superior titles, liens and equities owned or claimed by any owner or holder of any outstanding liens and debts, regardless of whether said liens or debts are acquired by Beneficiary by assignment or are released by the holder thereof upon payment. 14. Purchase Money; Vendor's Lien. Grantor represents that this Deed of Trust and Note are given for the following purposes: The funds advanced to Maker under Note are used to pay all or part of the purchase price of the Property. Note is also primarily secured by a vendor's lien retained in the deed of even date with this Deed of Trust executed by CITY OF HUNTSVILLE conveying the Property to Maker, which vendor's lien has been assigned to Beneficiary, this Deed of Trust being additional security for such vendor's lien. The vendor's lien is TRANSFERRED to Beneficiary by this deed. The Deed of Trust does not waive the vendor's lien, and the two liens and the rights created by this Deed of Trust shall be cumulative. Beneficiary may elect to foreclose under either of the liens without waiving the other or may foreclose under both. TDHCANSPDOTPMF Page 5 of 9 15. Transfer of the Property or a Beneficial Interest in Grantor. IN THE EVENT THAT SALE OR CONVEYANCE IS MADE OF ALL OR ANY PORTION OF THE MORTGAGED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF BENEFICIARY TO SAID SALE, THEN BENEFICIARY MAY AT ITS ELECTION ACCELERATE THE MATURITY DATES OF NOTE AND DEMAND FULL PAYMENT OF THE BALANCE OF ALL PRINCIPAL AND INTEREST REMAINING DUE THEREON. If the Property is residential, real property containing fewer than five (5) dwelling units or a manufactured home occupied by Grantor, exceptions to this provision are limited to: (a) a subordinate lien or encumbrance that does not transfer rights of occupancy of the Property; (b) creation of a purchase -money security interest for household appliances; (c) transfer by devise, descent, or operation of law on the death of a co- Grantor; (d) grant of a leasehold interest of three years or less without an option to purchase; (3) transfer to a spouse or children of Grantor or between co- Grantors; (f) transfer to a relative of Grantor on Grantor's death; and (g) transfer to an inter vivos trust in which Grantor is and remains a beneficiary and occupant of the Property. The restriction on the transfer of Property will automatically terminate if title to the Property is transferred by foreclosure or deed -in -lieu of foreclosure, or if the mortgage is assigned to the Secretary of the U. S. Department of Housing and Urban Development in accordance with 24 C.F.R. §203.41. 16. Loan Not a Home Equity Loan. The Loan evidenced by Note is not an extension of credit as defined by Section 50(a)(6) or Section 50(a)(7), Article XVI, of the Texas Constitution. If the Property is used as Maker's residence, then Maker agrees that Maker will receive no cash from the Loan evidenced by Note and that any advances not necessary to purchase the Property, extinguish an owelty lien, complete construction, or renew and extend a prior lien against the Property, will be used to reduce the balance evidenced by Note or such Loan will be modified to evidence the correct Loan balance, at Beneficiary's option. Maker agrees to execute any documentation necessary to comply with this Section. 17. Occupancy, Preservation, Maintenance and Protection of the Property. GRANTOR REPRESENTS THAT IT IS A HOUSEHOLD WITH AN INCOME AT OR BELOW FIFTY PERCENT (50 %) OF AREA MEDIAN INCOME, AND WILL CONTINUE TO USE THE PROPERTY AS THEIR PRINCIPAL RESIDENCE. IF GRANTOR CEASES TO OCCUPY THE PROPERTY AS THEIR PRINCIPAL RESIDENCE, THE BENEFICIARY MAY AT ITS ELECTION ACCELERATE THE MATURITY DATES OF NOTE AND DEMAND FULL PAYMENT OF THE UNPAID AND /OR UNFORGIVEN BALANCE OF ALL PRINCIPAL AND INTEREST, IF ANY, REMAINING DUE THEREON. HOWEVER, THIS ELECTION SHALL NOT BE EXERCISED BY BENEFICIARY IF PROHIBITED BY FEDERAL LAW. Grantor shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Grantor shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Beneficiary's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Deed of Trust or Beneficiary's security interest. Grantor may cure such a default and reinstate, as provided under part B, "Beneficiary's Rights" and part C, "Trustee's Rights ", by causing the action or proceeding to be dismissed with a ruling that, in Beneficiary's good faith determination, precludes forfeiture of the Grantor's interest in the Property or other material impairment of the lien created by this Deed of Trust or Beneficiary's security interest. Grantor shall also be in default if Grantor, during the loan application process, gave materially false or inaccurate information or statements to Beneficiary (or failed to provide Beneficiary with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Grantor's occupancy of the Property as a principal residence 18. Hazardous Substances. Grantor shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Grantor 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. TDHCANSPDOTPMF Page 6 of 9 Grantor shall promptly give Beneficiary written notice of 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 Grantor has actual knowledge. If Grantor learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substances affecting the Property is necessary, Grantor shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 18, "Hazardous Substances" are those substances defined as toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 18, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. 19. Waiver of Notice of Intention to Accelerate. Grantor waives the right to notice of intention to require immediate payment in full of all sums secured by this Deed of Trust and the right to notice of acceleration, except in either case as provided under part B, "Beneficiary's Rights" and part C, "Trustee's Rights." 20. Substitute Trustee. Beneficiary, at its option and with or without cause, may from time to time remove Trustee and appoint, by power of attorney or otherwise, a successor trustee to any Trustee appointed hereunder. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by applicable law. 21. Grantor's Right to Reinstate. If Grantor meets certain conditions, Grantor shall have the right to have enforcement of this Deed of Trust 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 Deed of Trust; or (b) entry of a judgment enforcing this Deed of Trust. Those conditions are that Grantor: (a) pays Beneficiary all sums which then would be due under this Deed of Trust and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Deed of Trust, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Beneficiary may reasonably require to assure that the lien of this Deed of Trust, Beneficiary's rights in the Property and Grantor's obligation to pay the sums secured by this Deed of Trust shall continue unchanged. Upon reinstatement by Grantor, this Deed of Trust 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 part B, "Beneficiary's Rights" and part C, "Trustee's Rights." 22. Release. Upon payment of all sums secured by this Deed of Trust, Beneficiary shall release this Deed of Trust without charge to Grantor. Grantor shall pay any recordation costs. 23. Severability. If any provision of this Deed of Trust is determined to be invalid or unenforceable, the validity or enforceability of any other provision will not be affected. 24. Partial Invalidity. In the event any portion of the sums intended to be secured by this Deed of Trust cannot be lawfully secured hereby, payments in reduction of such sums shall be applied first to those portions not secured hereby. 25. The term Note includes all extensions and renewals of Note and all sums secured by this Deed of Trust. 25. When the context requires, singular nouns and pronouns include the plural. 26. If Grantor and Maker are not the same person, the term Grantor shall include Maker. 27. Reserve for Taxes and Insurance. Grantor agrees to make an initial deposit in a reasonable amount to be determined by Beneficiary and then make monthly payments to a fund for taxes, insurance premiums, and assessments against or affecting the Property at the request of Beneficiary. Monthly payments will be made on the payment dates specified in Note, and each payment will be one - twelfth of the amount that TDHCANSPDOTPMF Page 7 of 9 Beneficiary estimates will be required annually for payment of taxes and insurance premiums. The fund will accrue no interest, and beneficiary will hold it without bond in escrow and use it to pay the taxes and insurance premiums. If Grantor has complied with the requirements of this paragraph, beneficiary must pay taxes before delinquency. Grantor agrees to make additional deposits on demand if the fund is ever insufficient for its purpose. If an excess accumulates in the funds, Beneficiary may either credit it to future monthly deposits until the excess is exhausted or refund it to Grantor. When Grantor makes the final payment on Note, Beneficiary will credit to that payment the whole amount then in the fund or, at Beneficiary's option, refund it after Note is paid. If this Deed of Trust is foreclosed, any balance in the fund over that needed to pay taxes, including taxes accruing but not yet payable, and to pay insurance premiums will be paid under part C, "Trustee's Rights." Deposits to the fund described in this paragraph are in addition to the monthly payments provided for in the Note. 28. "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: rl Adjustable Rate Rider rl Balloon Rider r; 1 -4 Family Rider ri Condominium Rider r Planned Unit Development Rider ri Biweekly Payment Rider (7 Second Home Rider ri Renewal & Extension Addendum Other(s) [specify] GRANTOR: L� /LGi`l� KAREN SULEMON TDHCANSPDOTPMF Page 8 of 9 (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower State of TEXAS County of WALKER [Space Below This Line For Acknowledgment] Before me, a Notary Public, on this day personally appeared KAREN SULEMON known to me (or sroved t me on the oath of or thre • • • s r,en r car. or of er documen It to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he execute the same for the purposes and consideration therein expressed. — Given under my hand and seal of office this w day o %/ / A.D. await" //I (Seal) My Commission Expires: `a�`��llttttfthfgtitj�6fi •�.,.......��i /�i i PREPARED BY: BLACK, MANN & GR'l L 2905 CORPORATE CIR(,'loN FLOWER MOUND, TX 75" j 1 " "' (972)- 353 -4174 / / /iommtt00� v =CC•_ Title of Officer AFTER RECORDING RETURN TO: Texas Department of Housing and Community Affairs NSP Program Division P.O. Box 13941 Austin, Texas 78711-3941 ATTN: SHIRLEY SMITHAM TDHCANSPDOTPMF Page 9 of 9 MITES AND BOUNDS DESCRIPTION of 293 WatIcins Road, Huntsville, Texas Being a 0.1628 of an acre (7,090 square feet) tract of 'land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of those certain tracts of land described in Volume 210, Page 518 and Volume 315; Page 465 of the Deed Records of Walker County, Texas (D.R.\\V.C.T.); said 0.1628 of an acre Of land being more particularly described by metes and bounds as follows: BEGINNING at a found 1/2 -inch iron rod found in the west line of that certain tract of land conveyed to Willie and Diann Wilmore by deed recorded in Volume•526, Page 55 of said Deed Records, being in the southerly occupied line of Watkins Road (width varies) (no record information found); THENCE, South 00 °23'48" East, a distance of 50.00 feet, (called South 00 °25'40" East, 50.00 .feet) along the westerly line of said Wilmore tract, to a found 1/2 -inch iron rod for the northeast corner of that certain tract of land convey to Rendie Edwards by deed recorded in Volume 169, Page 334 of said Deed Records; THENCE, North 82 °38'30" West, a distance of 155.71 feet, (called North 82 °39'07" West) along the north line of said 'Edwards tract, at a distance of 106.68 feet passing a found 1/2 -inch iron pipe found for the northwest corner of said Edwards tract, and continuing to a set 5/8 -inch iron rod with "GS" cap set in the easterly line of that certain tract of land conveyed to Mineola Crooks, by deed recorded in Volume 159; Page 521 of said Deed Records; THENCE, North 23 °29'34" East, a distance of 50.00 feet, along the easterly line of said Crooks tract to a set 5/8 -inch iron rod with "GS" cap in the southerly line of Watkins Road; THENCE, South 83 °16'5.9 ":East, a distance of 135.08 feet (called South 82 °39'07" .East), along the southerly line of Watkins .Road to the.Poiiit of Beginning and containing 0.1628 of an acre (7,090 square feet) tract of land. Horizontal Control is based on holding City of Huntsville Monuments No 6914 (grid coordinate of North = 10,261,018.90 & East= 3;802,182.55.) and 7120 (grid coordinate of North = 10,260,833.15 & East= 3,802,182.77). Bearings described are related. to the Texas Coordinate System of 1983, Central. Zone. :Distances shown are US Survey Feet in "Field .Forizontal" units and may be converted to "GRID" units by multiplying by a combined scale factor of 0.99988. Plat of even date accompanies this description. Prepared by: GeoSolutions; LLC 25814 Buckle Road Spring, Texas 'rel. 281 -681-9766 Job No. 12 -249 -030 EXHIBIT „A„ PAGE _L OF 1 UCC FINANCING STATEMENT AMENDMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT AT FILER [optional] B. SEND ACKNOWLEDGMENT TO: (Name and Address) ' WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TX 77340 ATTN: JUDY TIIORNTON (F #201302207 Return kk1; WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS 77340 GF# THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1 a. IN TIAL FINANCING STATEMENT FILE # lb. This FINANCING STATEMENT AMENDMENT is RECORDED 06 -27 -12 DOC. NO 00004673 OPR WALKER COUNTY / REALtiEST[ATE RECORor r corded) in the 2. TERMINATION: Effectiveness of the Financing Statement identified above is terminated with respect to security interest(s) of the Secured Party authorizing this Termination Statement. CONTINUATION: Effectiveness of the Financing Statement identified above with respect to security interest(s) of the Secured Party authorizing this Continuation Statement is continued for the additional period provided by applicable law. 4. u ASSIGNMENT (full or partial): Give name of assignee in item 7a or 7b and address of assignee in item 7c; and also give name of assignor in item 9. 5. AMENDMENT (PARTY INFORMATION): This Amendment affects Debtor Q ❑ Secured Party of record. Check only one of these two boxes. Also check grig of the following three boxes and provide appropriate information in items 6 and/or 7. El CHANGE name and /or address: Please refertothe detailed instructiorrs DELETE name: Give record name ADD name: Complete item 7a or 7b, and also item 7c; LI in regards to changing the name /address of a party. Lj to be deleted in item 6a or 6b. LI also complete items 7e -7q (if applicable). 6. CURRENT RECORD INFORMATION: OR 6a. ORGANIZATION'S NAME CITY OF HUNTSVILLE 6b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7. CHANGED (NEW) OR ADDED INFORMATION: OR 7a. ORGANIZATION'S NAME 7b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7c, MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY 7d SEE INSTRUCTIONS ADD'L INFO RE 17e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR I 7f. JURISDICTION OF ORGANIZATION 7g. ORGANIZATIONAL ID #, if any II NONE 8. AMENDMENT (COLLATERAL CHANGE): check only gne box. — Describe collateral ® deleted or rj added, or give entire ❑restated collateral description, or describe collateral Dassigned. SEE EXHIBIT A ATTACIIED IIERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. 9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT (name of assignor, if this is an Assignment). If this is an Amendment authorized by a Debtor which adds collateral or adds the authorizing Debtor, or if this is a Termination authorized by a Debtor, check here ❑ and enter name of DEBTOR authorizing this Amendment. 9a. ORGANIZATION'S NAME OR TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS 9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 10.OPTIONAL FILER REFERENCE DATA NSP LN #770999991265 CITY OF HUNTSVILLE International Association of Commercial Administrators (IACA) FILING OFFICE COPY — UCC FINANCING STATEMENT AMENDMENT (FORM UCC3) (REV. 05/22/02) METES AND BOUNDS DESCRIPTION of 293 Watkins Road, Huntsville, Texas Being a 0.1628 of an acre (7,090 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of those certain tracts of land described in Volume 210, Page 518 and. Volume 315, Page 465 of the Deed Records of Walker County, Texas (D.R.W.C.T.); said 0,1628 of an acre of land being more particularly described by metes and bounds as follows: BEGI.NN.INGG at a found 112 -inch iron .rod found in the west line of that certain tract of land conveyed to Willie and Diann Wilmore by deed. t ecorded in Volume. 526, .Page 55 of said Deed Records, being in the southerly occupied. line of Watkins 'Road, (width varies) (no record information found); THENCE, South 00 °23'48" East, a distance of 50.00 feet, (called South 00025'40" East, 50.00 feet) along the westerly line of said Wilmore tract; to a found, 1/2 -inch iron rod for the northeast corner of that certain tract of land 'convey to Rendie Edwards by deed recorded. in Volume 169, Page 334 of said Deed Records; TII.ENCE, North 82 °38'30" West, a distance of 155,71 feet, (called North 82 °39'07" West) along the north line of said'.Ed.wards tract, at a distance of 106.68 feet passing a found 1/2 -inch iron pipe found for the northwest corner of said Edwards tract, and .continuing to a set 5/8 -inch iron rod with "GS" cap set in the easterly line of that certain tract of land conveyed to Mineola Crooks, by deed recorded in Volume 159, Page 521 of said Deed Records; THENCE, North 23 °29'34" East, .a distance of 50.00 feet, along the easterly line of said Crooks tract to a set 5/8 -inch iron rod with "GS" cap in the southerly line of Watkins Road; THENCE, South 83 °16'59 ".East, a distance of '.1.35,08 feet (called South 8299'07" East), along the southerly line of Watk ins..Read to the.Point of :Beginning and containing 0.1628 of an acre (7,090 square feet) tract of land. Horizontal Control is based on holding City of .Huntsville Monuments No. 6914 (grid coordinate of North = 10,261,018.90 & East= 3,802,1'82.55) and 7120 (grid coordinate of North = 10,260,833.15 & East= 3,802,182,77). Bearings. described are related. to the Texas Coordinate System of 1983, Central. Zone. :Distances shown are US Survey Feet in "Field Horizontal" units and may be converted to "GRID" units by multiplying by a combined scale factor o.f'0.99988. Plat eleven date accompanies this description. Prepared by: GeoSolut ions ; LLC 25814 l3rulcle Road Spring, Texas 'rel. 281- 681-9766 Job No. 12..249 -030 EXHIBIT "A" PAGE _I:_ OF UCC FINANCING STATEMENT AMENDMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT AT FILER [optional] B. SEND ACKNOWLEDGMENT TO: (Name and Address) WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS 77340 ATTN: JUDY TIIORNTON [F #201.302207 J Stewart 7gia e (04fr \dzo THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1 a. INITIAL FINANCING STATEMENT FILE # 1 b. This FINANCING STATEMENT AMENDMENT is RECORDED 07 -12 -12 DOC. NO 12- 0022232519 OFFICE OF SOS ["'[ to be filed [for record] (or recorded) in the ' I REAL ESTATE RECORDS. 2. TERMINATION: Effectiveness of the Financing Statement identified above is terminated with respect to security interest(s) of the Secured Party authorizing this Termination Statement. 3. U CONTINUATION: Effectiveness of the Financing Statement identified above with respect to security interest(s) of the Secured Party authorizing this Continuation Statement is continued for the additional period provided by applicable law. 4. u ASSIGNMENT (full or partial): Give name of assignee in item 7a or 7b and address of assignee in item 7c; and also give name of assignor in item 9. 5. AMENDMENT (PARTY INFORMATION): This Amendment affects Debtor Q ❑ Secured Party of record. Check only one of these two boxes. Also check one of the following three boxes ang provide appropriate information in items 6 and /or 7. ri CHANGE name and /or address: Please referto the detailed instructions rl DELETE name: Give record name in regards to changing thenarne /addressofapartv. I 1 to be deleted in item 6a or 6b. 6. CURRENT RECORD INFORMATION- ADD name: Complete item 7a or 7b, and also item 7c, also complete items 7e -7g (if applicable), 6a. ORGANIZATION'S NAME CITY OF HUNTSVILLE OR 6b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7. CHANGED (NEW) OR ADDED INFORMATION: OR 7a. ORGANIZATION'S NAME 7b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 7c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY 7d SEE INSTRUCTIONS ADD'L INFO RE 17e. TYPE OF ORGANIZATION ORGANIZATION DEBTOR I 7f. JURISDICTION OF ORGANIZATION 7g. ORGANIZATIONAL ID #, if any III NONE 8. AMENDMENT (COLLATERAL CHANGE): check only gm box. — Describe collateral ® deleted or added, or give entire ❑restated collateral description, or describe collateral D assigned. SEE EXIIIBIT A ATTACHED HERETO AND INCORPORATED IIEREIN FOR ALL PURPOSES. 9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT (name of assignor, if this is an Assignment). If this is an Amendment authorized by a Debtor which I adds collateral or adds the authorizing Debtor. or if this is a Termination authorized by a Debtor, check here I and enter name of DEBTOR authorizing this Amendment. 9a. ORGANIZATION'S NAME I 1 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS OR 9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX FILING OFFICE COPY — UCC FINANCING STATEMENT AMENDMENT (FORM UCC3) (REV. 10.OPTIONAL FILER REFERENCE DATA NSP LN #770999991265 CITY OF HUNTSVILLE International of Commercial Administrators (IACA) METES A.ND BOUNDS DESCRIPTION of 293 Watkins Road, Huntsville, Texas Being a 0.1628 of an acre (7,090 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of those certain tracts of land .described in Volume 210, Page 518 and Volume 315,; Page 465 -of the Deed Records of Walker. County, Texas (D.R.W.C,T.).; said 0,1628 of an .acre of land 'being more particularly described by :metes titid bounds as follows: BEGINNING at a ifeund 1/2 -inch iron rod found in the west line of that certain tract of land conveyed to Willie and Diann Wilmore by deed recorded in Voluine•526, Page 55" of said Deed Records, being in the southerly occupied line of Watkins Road. (Width varies) (no record information found); THENCE, South 00 °23'48" East, a distance of 50.00 feet, (culled South 00 °25'40" East, 50.00 .feet) along the westerly line of said Wilmore tract; to a found 1/2 =inch iron rod for the northeast corner of that certain tract of land •convey to Rendie Edwards by deed recorded in Volume 169, Page 334 of said Deed Records; TILENCE, North 82 °38'30" West, a distance of 155.71 feet, (called North 82 °39'07" West) along the north line of said 'Edwards tract, at a distance of 106;68 feet passing a found 1/2 -inch iron pipe .:found for the northwest corner of said Edwards tract; and continuing to a set 518 -inch iron rod with "GS" cap set in the easterly line of that certain tract of land conveyed to Mineola Crooks, by deed recorded in Volume 159, Page 521 ofsaid. Deed Records; THENCE, North 23 °29'34" East, .a distance of 50.00 feet, along the easterly line of said Crooks tract to a set 5/8 -inch iron rod with "GS" cap in the ` soutlerly line oof :Watkins Road; THENCE, South 83 °16'59 "..East, a distance of '135.08 feet (called South 82 °39'07" East), along the southerly line of Watkiiis Road to the.Point of.Beginning and containing 0.1628 an acre (7,090 square feet) tract of land. Horizontatl Control is based on holding City of Huntsville Monuments No 6914 .(grid coordinate of North = 10,261,018.90 &.Cast= 3,802,1 82.55) and 7120 (grid coordinate Of North = 10,260,833.15 & .East= 3,802,182,77). .Bearings. described are related. to the Texas Coordinate System of 1983, Central. Zone.: Distances shown' are US Survey Feet in "Field .Horizontal" units and may be converted to "GRID" units by multiplying by a combined scfilefactor of 0.99988. Pint of even date accompanies this description. Prepared by: GeoSolut ions, LLC 25814 Buckle Road Spring, Texas Tel, 281. -68.1. -9766 Job No. 12 -249 -030 EXHIBIT PAGE L OF ! Texas Neighborhood Stabilization Program (NSP) Homebuyer Assistance Deferred Forgivable Subordinate Lien Note ( "Note ") Date: MAY 20, 2013 Borrower: KAREN SULEMON Borrower's Mailing Address: 293 WATKINS STREET HUNTSVILLE, WALKER County, TX 77320 Lender: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas ( "TDHCA ") Lender's Mailing Address: 211 East l l th St., Austin, Texas 78701 P.O. Box 13941, Austin, Texas 78711 -3941 PROPERTY (which includes the real property and improvements thereon): 293 WATKINS STREET [Property Address] HUNTSVILLE WALKER TX 77320 [City] [County] [State] [Zip] more specifically described as, SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. [Legal Description] hereinafter referred to as "Property." 1. BORROWER'S PROMISE TO PAY Borrower promises to pay U. S. One Thousand Seven Hundred Twenty And Twelve /100 Dollars ( "$1,720.12 ") ( "Principal Amount ") to the order of the Lender. Borrower understands that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. ANNUAL INTEREST RATE Zero percent (0 %) per annum ANNUAL INTEREST RATE ON MATURED, UNPAID AMOUNTS Twenty percent (20 %) per annum 3. PAYMENT TERMS; TIME AND PLACE OF PAYMENTS (A) Payment Terms; Time of Payments The loan repayment of the Principal Amount of this Note shall be due and payable in legal tender of the United States of America in 5 equal annual installments of Three Hundred Forty -Four And Two /100 Dollars ($344.02) each year beginning JUNE 01, 2014 (the "First Anniversary"), and shall continue annually until JUNE 01, 2018, the expiration of 5 years ( "Maturity Date "). At Maturity Date, the unpaid and un- forgiven amounts owing under this Note shall be due and payable in full. Each payment installment will be applied first TDHCANSPNOTEHBA Page 1 of 5 to accrued interest, if any, and the remainder to reduction of the Principal Amount. After Maturity Date, Borrower promises to pay any unpaid principal balance plus interest at the Annual Interest Rate on Matured, Unpaid Amounts. (B) Deferral and Annual Forgiveness Provided that the Borrower complies with the terms of this Note, the NSP Subordinate Deed of Trust, and any and all other documents evidencing, securing or executed in connection with this Note, the amounts of Principal Amount due and payable under this Note shall be deferred and waived annually at a rate of 20% of Principal, Amount per year beginning on the First Anniversary and continuing annually until Maturity Date. (C) Place of Payment Borrower will make payment(s) at P. O. Box 13941, Austin, Texas 78711- 3941or at a different place if required by the Note Holder. (D) Due on Sale/Repayment If one of the following events should occur before said Maturity Date, the unpaid and unforgiven balance of this Note shall be immediately due and payable and Note Holder may invoke any remedies provided under the NSP Subordinate Deed of Trust securing this Note: (a) the note executed by Borrower made payable to TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS( "First Lien Lender "), in the amount of $$80,773.00, of even date with this Note, hereinafter the "Superior Lien Note(s)" is paid in full upon its maturity and according to its terms; or (b) the Superior Lien Note(s) is refinanced in whole or in part or is assumed by a new borrower without the consent of the Note Holder; or (c) the unpaid balance(s) of the Superior Lien Note(s) becomes due and payable in full for any reason (whether by acceleration or according to its terms, and including, without limitation, because any maker of the Superior Lien Note(s) is in default); or (d) all or any part of the Property, or any interest in it, is leased, transferred or conveyed without Note Holder's prior, written consent; or (e) Borrower ceases to occupy the mortgaged property as his or her principal residence. If the collateral is residential real property containing fewer than five dwelling units or a residential manufactured home occupied by Borrower, exceptions to this provision are limited to (a) a subordinate lien or encumbrance that does not transfer rights of occupancy of the property; (b) creation of a purchase money security interest for household appliances; (c) transfer by devise, descent, or operation of law on the death of a co- owner; (d) grant of a leasehold interest of three years or less without an option to purchase; (e) transfer to a spouse or children of owner or between co- owners; (f) transfer to a relative of owner or on owner's death; and (g) transfer to an inter vivos trust in which owner is and remains a beneficiary and occupant of the property. (E) Recapture Upon the sale of the mortgaged property, any unpaid or un- forgiven balance of the Note shall be due and payable in full from the available Net Proceeds from the sale of the mortgaged property pursuant to 24 CFR §92.254. Net Proceeds of a sale are the sales price of Property minus the closing costs, any superior lien loan repayment and any other necessary transaction costs. If the Net Proceeds are insufficient to repay the outstanding balance of the Note in full and Borrower's investment (which includes any portion of initial down payment paid by Borrower combined with the value of any capital improvements made with Borrower's funds), the Borrower's investment is paid in full first from the available proceeds from the re -sale and the Note is repaid TDHCANSPNOTEHBA Page 2 of 5 to the extent that proceeds are available, but only in the event the mortgaged property was sold for an amount not less than the current appraised value as then appraised by the appropriate governmental authority without the consent of Lender. If there are no Net Proceeds and the mortgage property was sold for an amount not less than the current appraised value as then appraised by the governmental authority, repayment of the Note is not required. 4. BORROWER'S RIGHT TO PREPAY Borrower has the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment." Borrower may make a full prepayment or partial prepayments without paying any prepayment charge. The Note Holder will use all of the prepayments to reduce the amount of principal that Borrower owes under this Note. If Borrower makes a partial prepayment, there will be no changes in the due date or in the amount of the payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES: NO USURIOUS INTENT 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 charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. The Note Holder may choose to make this refund by reducing the principal owed under this Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Default If Borrower does not make the full amount of the annual payment on the date said annual installment payment is due, Borrower will be in default. Additionally, Borrower will be in default under this NSP Deferred Subordinate Lien Note: (i) if Borrower fails to perform any obligation required of Borrower under the deed of trust securing this Note or takes any action prohibited under the deed of trust securing this Note, (ii) if any representations made by Borrower in connection with this loan was false in any material respect when made, or (iii) if any default occurs under the Superior Lien Note(s) described herein or under the deed of trust securing said Superior Lien Note(s). Any default under the NSP Subordinate Deed of Trust securing this Note shall be deemed to be a default under this Note. (B) Notice of Default If Borrower is in default, the Note Holder may send Borrower a written notice telling Borrower that if Borrower does not pay the overdue amount by a certain date, the Note Holder may require Borrower to pay immediately the full amount of principal which has not been paid. That date must be at least 30 days after the date on which the notice is delivered or mailed to Borrower. (C) No Waiver By Note Holder TDHCANSPNOTEHBA - Page 3 of 5 Even if, at a time when Borrower is in default, the Note Holder does not require Borrower to pay immediately in full as described above, the Note Holder will still have the right to do so if Borrower is in default at a later time. (D) Payment of Note Holder's Costs and Expenses If the Note Holder requires Borrower to pay immediately in full as described above, the Note Holder will have the right to be paid and reimbursed for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice to Borrower under this Note will be given by delivering it or by mailing it by first class mail to Borrower at the Property Address above or at a different address if Borrower gives the Note Holder a notice of the changed in 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 above or at a different address if Borrower is given a notice of that different address. 8. 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 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. 9. SUBORDINATION TO SUPERIOR LIENS This is a subordinate lien note, subject and subordinate in all respects to the lien, terms, covenants and conditions of the Superior Lien Note(s) described herein and the deed of trust securing payment of said Superior Lien Note(s). Borrower understands that any default under the Superior Lien Note(s) described herein or the deed of trust securing it will be a default under this Note. The lien(s) securing this Note is /are subordinate to the lien securing another note in the original principal amount of Eighty Thousand Seven Hundred Seventy -Three And No /100 Dollars ($80,773.00), dated 5/20/2013 and executed by KAREN SULEMON, payable to the order of TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. 10. WAIVERS Borrower and any other person who has obligations under this Note waive notice of intention to accelerate, except as provided in except as provided in Section 6 (C) above, and 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. SECURITY FOR PAYMENT This Note is secured by a vendor's lien granted in a deed to Borrower dated the same date as this Note and the liens and security interests granted in the NSP Subordinate Deed of Trust (the "Security Instrument "), dated of even date herewith, from Borrower to Timothy K. Irvine, Trustee, for the benefit of Lender, upon and against the Property. TDHCANSPNOTEHBA Page 4 of 5 12. GOVERNING LAW The laws of the State of Texas and applicable federal law shall govern this Note. If applicable federal law permits any charge, fee or other item that is contracted for, charged, taken, reserved or received under this Note which is not permitted or in excess of the amount permitted under Texas law, the applicable federal law shall control. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. a.A1 k.J )6/2- h( KAR D�J EN SULEM N TDHCANSPNOTEHBA Page 5 of 5 (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower METES A.M) BOUNDS DESCRIPTION of 293 Watici.ns Road, Huntsville, Texas Being a 0.1628 of an acre (7,090 square feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of those certain tracts of land described in Volume 210, Page 518 and Volume 315; Page 465 of the Deed Records of Walker County, Texas (D.R.W,C.T.); said 0.1628 of an :acre of land 'being more particularly described by metes and bounds as- follows: BEGINNING at a found 112 -inch iron rod found in the west line of that certain tract of land conveyed to Willie and Diann Wilmore by deed recorded in Volume 526, Page 55 of said Deed Records, being in the southerly occupied. line of Watkins Road. (Width varies) (no record information .found) THENCE, South 00 °23'48" East, a distance of 50.00 feet, (called South 00 °25'40" East, 50.00 feet) along the westerly line of said Wilmore tract, to a found 1/2 -inch iron rod for the northeast corner of that certain tract of land 'convey to Rendie Edwards by deed recorded in Volume 16.9, :Page 334 of said Deed Records; THENCE, North 82 °38'30" West, a distance of 155,71 feet, (called North 82 °39'07" West) along the north line of said 'Edwards tract, at a distance of 106.68 feet passing a found 1/2 -inch iron pipe found for the northwest corner of said Edwards tract, and continuing to a set 5/8 -inch iron rod with "GS" cap set m the easterly line of that certain tract of land conveyed to Mineola Crooks, by deed recorded in Volume 159, Page 521 of said Deed Records; THENCE, North 23 °29'34" East, .a distance of 50.00 feet, along the easterly line of said Crooks tract to a set 5/8 -inch iron rod with "GS" cap in the southerly line of Watkins Road; THENCE, South 83 °1.6'59" .E;ist, a distance of 1.35.08 feet (called Soutar 82 °39'07" .East), along the southerly line of Watkins .Road to the.POint ofBeginning and containing 0,1628 of an acre (7,090 square feet) tract of land. Horizontal Control is based on holding City of *Huntsville Monuments No. 6.9.14 (grid coordinate of Nortli = 10,261,018.90 &.East= 3,802,182.55) and 7120 (grid coordinate of North = 10,260,833.15 & East= 3,1302,182;17). Bearings. described are related to the Texas Coordinate System of 1983, Central Zone. Distances shown are US Survey Feet in "Field Horizontal" Units and may be converted to "GRID" units by multiplying by a cornbined scale factor of 0.99988. Plat of even date accompanies this description. Prepared by: GeoSolutions; LLC 25814 Duthie . Road Spring, Texas Tel. 281. -68.1. -9766 Job No. 1.2 -249 -030 EXHIBIT "A" PAGE 4 OF 1 Return 10: WALKER COUNTY TITLE COMPANY 1109 UNIVERSITY AVENUE HUNTSVILLE, TEXAS 7J. 40 GF#c!3 2' Texas Neighborhood Stabilization Program (NSP) Subordinate Lien Deed of Trust ( "Deed of Trust ") NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Date: MAY 20, 2013 Grantor: KAREN SULEMON, A SINGLE PERSON Grantor's Mailing Address: 293 WATKINS STREET, HUNTSVILLE, TX 77320 Trustee: Timothy K. Irvine of Travis County, Texas Trustee's Mailing Address: P.O. Box 13491 Austin, Travis County, Texas 78711 Beneficiary TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas. Beneficiary's Mailing Address: 211 East 11th Street Austin, Travis County, Texas 78701 NSP Deferred Forgivable Subordinate Lien (Note): Date: Of even date herewith. Original principal amount: One Thousand Seven Hundred Twenty And Twelve /100 Dollars ($1,720.12) Maker: KAREN SULEMON Payee: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas Maturity date: JUNE 01, 2018 Terms of Payment: As provided therein Property: SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN FOR ALL PURPOSES. Prior Liens: TDHCANSPDOTHf3A Page 1 of 9 Date: 5/20/2013 Grantor: KAREN SULEMON Trustee: TIMOTHY K. IRVINE Amount: $80,773.00 Beneficiary: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Recording Information: To be recorded in the Real Property Records of WALKER County, Texas. Other Exceptions to Conveyance and Warranty: I . Visible and apparent easements on or across property which may not appear of record. 2. All coal, lignite, oil, gas and other minerals in, under and that may be produced from the land, together with all rights, privileges, and immunities relating thereto. 3. Restrictions, covenants, easements and outstanding mineral reservations, rights to royalties, if any shown of record in the hereinabove mentioned county and state, all to all zoning laws, regulations and ordinances of municipal and /or other governmental authorities, if any. 4. Ownership of all oil, gas and other minerals; and rights of all parties claiming by, through or under said mineral owner(s). For value received and to secure payment of Note, Grantor conveys the Property to Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the Other Exceptions to Conveyance and Warranty. On payment of Note and all other amounts secured by this Deed of Trust, this Deed of Trust will have no further effect, and Beneficiary will release it at Grantor's expense. A. Grantor's Obligations Grantor agrees to: 1. keep the Property in good repair and condition; 2. pay all taxes and assessments on the Property before delinquency; 3. defend title to the Property subject to the Other Exceptions to Conveyance and Warranty and preserve the lien's priority as it is established in this Deed of Trust; 4. maintain, in a form acceptable to Beneficiary, an insurance policy that: a. covers all improvements for their full insurable value as determined when the policy is issued and renewed, unless Beneficiary approves a smaller amount in writing; b. provides fire and extended coverage, including windstorm coverage; c. protects Beneficiary with a standard mortgage clause; d. provides flood insurance at any time the Property is in a flood hazard area; and e. contains such other coverage as Beneficiary may reasonably require. 5. deliver the insurance policy to Beneficiary within ten days of the date of this Deed of Trust and deliver renewals to Beneficiary at least fifteen days before expiration; 6. obey all laws, ordinances, and restrictive covenants applicable to the Property; TDHCANSPDOTHBA Page 2 of 9 7. keep any buildings occupied as required by the insurance policy; and 8. if the lien of this Deed of Trust is not a first lien, pay or cause to be paid all prior lien notes and abide by or cause to be abided by all prior lien instruments. B. Beneficiary's Rights 1. Beneficiary may appoint in writing a substitute trustee, succeeding to all rights and responsibilities of Trustee. 2. If the proceeds of Note are used to pay any debt secured by prior liens, Beneficiary is subrogated to all the rights and liens of the holders of any debt so paid. 3. Beneficiary may apply any proceeds received under the insurance policy either to reduce Note or to repair or replace damaged or destroyed improvements covered by the policy. If the Property is Grantor's primary residence and Beneficiary reasonably determines that repairs to the improvements are economically feasible, Beneficiary will make the insurance proceeds available to Grantor for repairs. 4. Notwithstanding note terms to the contrary, and unless applicable law prohibits, all payments received by Beneficiary from Grantor under Note or this Deed of Trust may, at Beneficiary's discretion, be applied first to amounts payable under this Deed of Trust and then to amounts due and payable to Beneficiary under Note, to be applied to late charges, principal, or interest in the order Beneficiary in its discretion determines. 5. If Grantor fails to perform any of Grantor's obligations, Beneficiary may perform those obligations and be reimbursed by Grantor on demand for any amounts so paid, including attorney's fees, plus interest on those amounts from the dates of payment at the rate stated in Note for matured, unpaid amounts. The amount to be reimbursed will be secured by this Deed of Trust. 6. If there is a default on Note or if Grantor fails to perform any of Grantor's obligations and the default continues after any required notice of the default and the time allowed to cure, Beneficiary may: a. declare the unpaid principal balance and earned interest on Note immediately due; b. direct Trustee to foreclose this lien, in which case Beneficiary or Beneficiary's agent will cause notice of the foreclosure sale to be given as provided by the Texas Property Code as then in effect; and c. purchase the Property at any foreclosure sale by offering the highest bid and then have the bid credited on Note. 7. Beneficiary may remedy any default without waiving it and may waive any default without waiving any prior or subsequent default. C. Trustee's Duties If directed by Beneficiary to foreclose this lien, Trustee will: 1. either personally or by agent give notice of the foreclosure sale as required by the Texas Property Code as then in effect; 2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash with a general warranty binding Grantor, subject to the Prior Lien and to the Other Exceptions to Conveyance and Warranty and without representation or warranty, express or implied, by Trustee; 3. from the proceeds of the sale, pay, in this order: TDHCANSPDOTHBA Page 3 of 9 a. expenses of foreclosure, including a reasonable commission to Trustee; b. to Beneficiary, the full amount of principal, interest, attorney's fees, and other charges due and unpaid; c. any amounts required by law to be paid before payment to Grantor; and d. to Grantor, any balance; and 4. be indemnified by Beneficiary against all costs, expenses, and liabilities incurred by Trustee for acting in the execution or enforcement of the trust created by this Deed of Trust, which includes all court and other costs, including attorney's fees, incurred by Trustee in defense of any action or proceeding taken against Trustee in that capacity. D. General Provisions 1. If any of the Property is sold under this Deed of Trust, Grantor must immediately surrender possession to the purchaser. If Grantor fails to do so, Grantor will become a tenant at sufferance of the purchaser, subject to an action for forcible detainer. 2. Recitals in any trustee's deed conveying the Property will be presumed to be true. 3. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any other remedy will not constitute an election of remedies. 4. This lien will remain superior to liens later created even if the time of payment of all or part of Note is extended or part of the Property is released. 5. Application of Payments. If any portion of Note cannot be lawfully secured by this Deed of Trust, payments will be applied first to discharge that portion. Unless applicable law provides otherwise, payments will be applied next, to principal due; third, to interest due; and last, to any late charges due under the Note. 6. Successors and Assigns Bound. This Deed of Trust shall bind, inure to the benefit of, and may be exercised by successors in interest of all parties. 7. Hazard or Property Insurance. It is recommended by Beneficiary that Grantor shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Beneficiary requires insurance in accordance with 24 CFR Part 58.6. If Grantor does not maintain coverage described above, Beneficiary may, at Beneficiary's option, obtain coverage to protect Beneficiary's rights in the Property in accordance with paragraph 9. Unless Beneficiary and Grantor otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the annual payments referred to in Note. If under part B, "Beneficiary's Rights" and part C, "Trustee's Rights ", the Property is acquired by Beneficiary, Grantor's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Beneficiary to the extent of the sums secured by this Deed in Trust immediately prior to the acquisition. 8. Usury; Interest. Interest on the debt secured by this Deed of Trust will not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess will be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt TDHCANSPDOTHBA Page 4 of 9 or, if the principal of the debt has been paid, refunded. This provision overrides any conflicting provisions in this and all other instruments concerning the debt. 9. Protection of Beneficiary's Rights in the Property. If Grantor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Beneficiary may take action under this paragraph 9, Beneficiary does not have to do so. Any amounts disbursed by Beneficiary under this paragraph 9 shall become additional debt of Grantor secured by this Deed of Trust. Unless Grantor and Beneficiary 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 Beneficiary to Grantor requesting payment. 10. Mortgage Insurance. If Beneficiary required mortgage insurance as a condition of making the loan secured by this Security Instrument, Grantor shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Beneficiary lapses or ceases to be in effect, Grantor 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 Grantor of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Beneficiary. If substantially equivalent mortgage insurance is not available, Grantor shall pay to Beneficiary each month a sum equal to one - twelfth of the yearly mortgage insurance premium being paid by Grantor when the insurance coverage lapsed or ceased to be in effect. Beneficiary 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 Beneficiary, if mortgage insurance coverage (in the amount and for the period that Beneficiary requires) provided by an insurer approved by Beneficiary again becomes available and is obtained. Grantor 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 Grantor and Beneficiary or applicable law. 11. Inspection. Beneficiary or its agent may make reasonable entries upon and inspections of the Property. Beneficiary shall give Grantor notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 12. Condemnation. Grantor assigns to Beneficiary all amounts payable to or received by Grantor from condemnation of all or part of the Property, from private sale in lieu of condemnation, and from damages caused by public works or construction on or near the Property. After deducting any expenses incurred, including attorney's fees and court and other costs, Beneficiary will either release any remaining amounts to Grantor or apply such amounts to reduce Note. Beneficiary will not be liable for failure to collect or to exercise diligence in collecting any such amounts. Grantor will immediately give Beneficiary notice of any actual or threatened proceedings for condemnation of all or part of the Property. 13. Subrogation. Any of the proceeds of the Note used to take up outstanding liens against all or any part of the Property have been advanced by Beneficiary at Grantor's request and upon Grantor's representation that such amounts are due and are secured by valid liens against the Property. Beneficiary shall be subrogated to any and all rights, superior titles, liens and equities owned or claimed by any owner or holder of any outstanding liens and debts, regardless of whether said liens or debts are acquired by Beneficiary by assignment or are released by the holder thereof upon payment. 14. Purchase Money; Vendor's Lien. Grantor represents that this Deed of Trust and Note are given for the following purposes: TDHCANSPDOTHBA Page 5 of 9 The funds advanced to Maker under Note are used to pay closing cost and part of the purchase price of the Property. Note also are primarily secured by a vendor's lien retained in the deed of even date with this Deed of Trust executed by CITY OF HUNTSVILLE conveying the Property to Maker, which vendor's lien has been assigned to Beneficiary, this Deed of Trust being additional security for such vendor's lien. The vendor's lien is TRANSFERRED to Beneficiary by this deed. The Deed of Trust does not waive the vendor's lien, and the two liens and the rights created by this Deed of Trust shall be cumulative. Beneficiary may elect to foreclose under either of the liens without waiving the other or may foreclose under both 15. Transfer of the Property or a Beneficial Interest in Grantor. IN THE EVENT THAT SALE OR CONVEYANCE IS MADE OF ALL OR ANY PORTION OF THE MORTGAGED PREMISES WITHOUT THE PRIOR WRITTEN CONSENT OF BENEFICIARY TO SAID SALE, THEN BENEFICIARY MAY AT ITS ELECTION ACCELERATE THE MATURITY DATES OF NOTE AND DEMAND FULL PAYMENT OF THE BALANCE OF ALL PRINCIPAL AND INTEREST REMAINING DUE THEREON. If the Property is residential, real property containing fewer than five (5) dwelling units or a manufactured home occupied by Grantor, exceptions to this provision are limited to: (a) a subordinate lien or encumbrance that does not transfer rights of occupancy of the Property; (b) creation of a purchase -money security interest for household appliances; (c) transfer by devise, descent, or operation of law on the death of a co- Grantor; (d) grant of a leasehold interest of three years or less without an option to purchase; (3) transfer to a spouse or children of Grantor or between co- Grantors; (f) transfer to a relative of Grantor on Grantor's death; and (g) transfer to an inter vivos trust in which Grantor is and remains a beneficiary and occupant of the Property. The restriction on the transfer of Property will automatically terminate if title to the Property is transferred by foreclosure or deed -in -lieu of foreclosure, or if the mortgage is assigned to the Secretary of the U. S. Department of Housing and Urban Development in accordance with 24 C.F.R. §203.41. 16. Loan Not a Home Equity Loan. The Loan evidenced by Note is not an extension of credit as defined by Section 50(a)(6) or Section 50(a)(7), Article XVI, of the Texas Constitution. If the Property is used as Maker's residence, then Maker agrees that Maker will receive no cash from the Loan evidenced by Note and that any advances not necessary to purchase the Property, extinguish an owelty lien, complete construction, or renew and extend a prior lien against the Property, will be used to reduce the balance evidenced by Note or such Loan will be modified to evidence the correct Loan balance, at Beneficiary's option. Maker agrees to execute any documentation necessary to comply with this Section. 17. Occupancy, Preservation, Maintenance and Protection of the Property. GRANTOR REPRESENTS THAT IT IS A HOUSEHOLD WITH AN INCOME AT OR BELOW FIFTY PERCENT (50 %) OF AREA MEDIAN INCOME, AND WILL CONTINUE TO USE THE PROPERTY AS THEIR PRINCIPAL RESIDENCE. IF GRANTOR CEASES TO OCCUPY THE PROPERTY AS THEIR PRINCIPAL RESIDENCE, THE BENEFICIARY MAY AT ITS ELECTION ACCELERATE THE MATURITY DATES OF NOTE AND DEMAND FULL PAYMENT OF THE UNPAID AND /OR UNFORGIVEN BALANCE OF ALL PRINCIPAL AND INTEREST, IF ANY, REMAINING DUE THEREON. HOWEVER, THIS ELECTION SHALL NOT BE EXERCISED BY BENEFICIARY IF PROHIBITED BY FEDERAL LAW. Grantor shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Grantor shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Beneficiary's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Deed of Trust or Beneficiary's security interest. Grantor may cure such a default and reinstate, as provided under part B, "Beneficiary's Rights" and part C, "Trustee's Rights ", by causing the action or proceeding to be dismissed with a ruling that, in Beneficiary's good faith determination, precludes forfeiture of the Grantor's interest in the Property or other material impairment of the lien created by this Deed of Trust or Beneficiary's security interest. Grantor shall also be in default if Grantor, during the loan application process, gave materially false or inaccurate information or statements to Beneficiary (or failed to provide Beneficiary with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Grantor's occupancy of the Property as a principal residence TDHCANSPDOTHBA Page 6 of 9 18. Hazardous Substances. Grantor shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Grantor 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. Grantor shall promptly give Beneficiary written notice of 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 Grantor has actual knowledge. If Grantor learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substances affecting the Property is necessary, Grantor shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 18, "Hazardous Substances" are those substances defined as toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 18, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. 19. Waiver of Notice of Intention to Accelerate. Grantor waives the right to notice of intention to require immediate payment in full of all sums secured by this Deed of Trust and the right to notice of acceleration, except in either case as provided under part B, "Beneficiary's Rights" and part C, "Trustee's Rights." 20. Substitute Trustee. Beneficiary, at its option and with or without cause, may from time to time remove Trustee and appoint, by power of attorney or otherwise, a successor trustee to any Trustee appointed hereunder. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by applicable law. 21. Grantor's Right to Reinstate. If Grantor meets certain conditions, Grantor shall have the right to have enforcement of this Deed of Trust 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 Deed of Trust; or (b) entry of a judgment enforcing this Deed of Trust. Those conditions are that Grantor: (a) pays Beneficiary all sums which then would be due under this Deed of Trust and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Deed of Trust, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Beneficiary may reasonably require to assure that the lien of this Deed of Trust, Beneficiary's rights in the Property and Grantor's obligation to pay the sums secured by this Deed of Trust shall continue unchanged. Upon reinstatement by Grantor, this Deed of Trust 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 part B, "Beneficiary's Rights" and part C, "Trustee's Rights." 22. Release. Upon payment of all sums secured by this Deed of Trust, Beneficiary shall release this Deed of Trust without charge to Grantor. Grantor shall pay any recordation costs. 23. Severability. If any provision of this Deed of Trust is determined to be invalid or unenforceable, the validity or enforceability of any other provision will not be affected. 24. Partial Invalidity. In the event any portion of the sums intended to be secured by this Deed of Trust cannot be lawfully secured hereby, payments in reduction of such sums shall be applied first to those portions not secured hereby. 25. The term Note includes all extensions and renewals of Note and all sums secured by this Deed of Trust. TDHCANSPDOTHBA Page 7 of 9 25. When the context requires, singular nouns and pronouns include the plural. 26. If Grantor and Maker are not the same person, the term Grantor shall include Maker. 27. Second Lien. Notwithstanding any provision of this Deed of Trust to the contrary, the lien and security interest created hereby are expressly subordinate and inferior to the lien created by the Prior Lien. Upon the event of foreclosure or deed in lieu of foreclosure of the Prior Lien, 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 Grantor's ability to sell the Property shall have no effect on subsequent owners or purchasers of the Property (other than the Grantor or a related entity of Grantor). Prior to taking any actions under part B, "Beneficiary's Rights" and part C, "Trustee's Rights ", Beneficiary shall notify the lienholder of the Prior Lien of the default, and shall provide the lienholder of the Prior Lien with the opportunity to cure any such default under this Deed of Trust. 28. Repayment Deferrals, Reductions and Forgiveness. Note provide for certain potential deferrals, principal reductions, forgiveness or other payment terms. Note also provide that full debt, if not paid or forgiven earlier, shall be due and payable on the sale of the Property (subject to paragraphs 15 and 17), refinance of any superior lien or acceleration of any superior lien note. 29. "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: fi Adjustable Rate Rider fl Balloon Rider f 1 -4 Family Rider . . Condominium Rider l Planned Unit Development Rider f Biweekly Payment Rider (71 Second Home Rider C..f Renewal & Extension Addendum Other(s) [specify] GRANTOR: Q.4L- `� nom- -� (Seal) EN SULEMON - Borrower TDHCANSPDOTHBA Page 8 of 9 (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower State of TEXAS [Space Below This Line For Acknowledgment] County of WALKER § Before me, a Notary Public, on this day personally appeared KAREN SULEMON known to me (or proved to je LD me on the oath of or thra„ gh 4dsC�rin jo to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed t same for the purposes and consideration therein expressed. Given under my hand and seal of office this 3Q day of 11j11l1 VI Ii ffshielitailfi II / • (Seal) My Commission Expires: PREPARED BY: BLACK, MANN & GRAHAM,4,.L :13. <5, • • THOR...... ° 2905 CORPORATE CIRCLE 4 OF 1 ' FLOWER MOUND, TX 75028 °O °i °/ •'8 jP ''e�\\a (972)- 353 -4174 ///!l111111111 \ \ \ \\ Title of Offic AFTER RECORDING RETURN TO: Texas Department of Housing and Community Affairs NSP Program Division P.O. Box 13941 Austin, Texas 7871 1 -3941 ATTN: SHIRLEY SMITHAM TDHCANSPDOTHBA Page 9 of 9 METES A.ND BOUNDS DESCRIPTION of 293 Watkins Road, Huntsville, Texas Being a 0.1628 of an acre (7,090 square .feet) tract of land located in the Pleasant Gray League, Abstract 24, Walker County, Texas and being all of those certain tracts of land described in Volume 210, Page 518 and Volume 315, Page.465 of the Deed Records of WalkerCounty, Texas (D.R.W,C.T.); said 0.1628 of an :acre of land "being more particularly described by metes and bounds as follows: BEGINNING at a found 1/2 -inch iron .rod found in the west line of that certain tract of land conveyed to Willie and Diann Wilmore by deed recorded in Volume 526, Page 55 of said Deed Records, being in the southerly occupied line of Watkins Road (width varies) (no record information found); THENCE, South 00 °23'48" East, a distance of 50.00 feet, (called South 00 °25'40" East, 50.00 feet) along the westerly line of said Wilmore tract; to found 1/2- inch iron rod for the northeast corner of that certain tract of land convey to Rendie Edwards by deed recorded in Volume 16.9, Page 334 of said Deed Records; N. THENCE, North 82 °38'30" 'West, a distance of 155.71 feet, (called North 82 °39'07" West) along the north line of said Edwards tract, at a distance of 106.68 feet passing a found 1/2 -inch iron pipe found for the northwest corner of said Edwards tract, and continuing to a set 5/8 -inch iron rod with "GS" cap set in the easterly line of that certain tract of land conveyed to Mineola Crooks, by deed recorded in Volume 159, Page 521 of said. Deed Records; THENCE, North 23 °29'34" East, .a distance of 50.00 feet, along the easterly line of said Crooks tract to a set. 5/8 -inch iron rod with "GS" cap in the southerly line of Watkins Road; THENCE, South 83 °16'59 ".East, a distance of .1.35.08 feet (called South 82 °39'07" .East), along the southerly line of Watkins Road to the.POint of Beginning and containing 0.1628 of an acre (7,090 square feet) tract of land. Horizontal Control is based on holding City of Huntsville Monuments No. 6914 (grid coordinate of North = 10,261,018.90 &.East= 3,802,182.55) and 7120 (grid coordinate of North = 10,260,833.15 & East= 3,802,182.77). Bearings described are related to the Texas Coordinate System of 1983, Central Zone. Distances shown are US Survey Feet in "Field Horizontal" units and may be converted to "GRID" units by multiplying by a combined scale factor of 0.99988. Plat of even date accompanies this description. Prepared by: GeoSolutions, LLC 25814 Bud de Road Spring, Texas Tel. 281-681-9766 Job No. 12-249-030 f 'S 11 J ,G . EXHIBIT "A" PAGE L OF 1 Please give this letter to borrower at closing. MAY 20, 2013 KAREN SULEMON 293 WATKINS STREET HUNTSVILLE, TX 77320 Re: Loan Number 77099991265C Dear KAREN SULEMON: The Texas Department of Housing and Community Affairs would like to welcome you as a new customer. Your first payment on your mortgage loan will be due JUNE 01, 2014. Please use the temporary coupon attached below when mailing your first payment. Your loan may include an escrow account, which is used to pay your taxes and insurance. Annually, we will analyze the escrow account, and your payment may be adjusted accordingly. If, for example, your property taxes increase, your payment may also increase. At the end of each year, the Department will send you an annual statement for your records. This information will also be transmitted to the Internal Revenue Service for income tax purposes. If you have any questions or concerns regarding your mortgage loan, please don't hesitate to contact us at the number listed below. We look forward to servicing your mortgage loan. Texas Department of Housing and Community Affairs If by mail: P.O. Box 13941, Austin, Texas 78711 -3941 If by overnight delivery service: 221 E. llth Street, Austin, Texas 78701 Toll Free: 800.298.4013 FAX Number: 512.472.7500 CUT HERE FOR FIRST PAYMENT COUPON Mail to: Loan Number: Payment Due Date: Borrower Name: Mortgage Loan Payment: Texas Department of Housing and Community Affairs P.O. Box 13245 -C3 Austin, Texas 78711 -3245 77099991265C JUNE 01, 2014 KAREN SULEMON Principal & Interest: Escrow: Total Payment: TDHCANSPPAYLTRHBA Page I of I $344.02 $0.00 $344.02 (if not forgiven) G.F. NO.: 201302207 POLICY NO. DELETION OF ARBITRATION PROVISION (Not applicable to the Texas Residential Owner Policy) Arbitration is a common form of alternative dispute resolution. It can be a quicker and cheaper means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you give up your right to take the Title Company to court and your rights to discovery of evidence may be limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award. Your policy contains an arbitration provision (shown below). It allows you or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. You can do this by signing this form and returning it to the Company at or before the closing of your real estate transaction or by writing to the Company. The arbitration provision in the Policy is as follows: "Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ( "Rules "). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction." I request deletion of the Arbitration provision. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Its: Duly Authorized Representative f DATE: V`� k 2_ V � n v /� l 3 Loan No.: 77099991265C TDHCADELARB Page 1 of 1 Affidavit of Occupancy Borrower hereby certifies and acknowledges that home being purchased under the Texas Neighborhood Stabilization Program is same property described in Appraisal Report (appraisals must conform to the Uniform Relocation Act ( "URA ") requirements under 49 CFR 24.103) for 293 WATKINS STREET, HUNTSVILLE WALKER County, TX 77320 dated MAY 20, 2013. The Borrower(s) hereby certifies and acknowledges that the above reference property will be their primary residence and will be occupied within 30 days of closing the mortgage loan. EN SULE ON - Borrower - Borrower - Borrower - Borrower - Borrower - Borrower ACKNOWLEDGEMENT THE STATE OF TE S COUNTY OFkEZL. ,,,,a���\11111111111/// Before me, this instru ent pS� ;[ . ,,acknowledged on �� 20 �� by E. Notary ubhc, St e of Texas (SEAL) THE STATE OF TEXAS COUNTY OF n._OF c • ti ,y [Typed / Printed Name] My Commission Expires: Before me, this instrument was signed and acknowledged on , 20_ by Notary Public, State of Texas (SEAL) My Commission Expires: TDHCANSPOCCUPAN Page 1 of 1 [Typed / Printed Name] TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TEXAS NEIGHBORHOOD STABILIZATION PROGRAM TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS LOAN SERVICING DEPARTMENT INITIAL LOAN CONTACT INFORMATION LOAN NUMBER: 77099991265C BORROWER NAME: KAREN SULEMON PROPERTY ADDRESS: 293 WATKINS STREET, HUNTSVILLE, TX 77320 MAILING ADDRESS: HOME PHONE: WORK PHONE: CELL PHONE: NEAREST RELATIVE (not living with you) CONTACT NAME AND PHONE NUMBER: le L( a c=1)(1, -SS -c) /4) lc) r)3 \to e_fauqc)f d ()► 31 -aP 3 - D4-he el e_ S e TDHCANSPINITIALLNCONTACTINFO Page I of 1 Please give this letter to borrower at closing. MAY 20, 2013 KAREN SULEMON 293 WATKINS STREET HUNTSVILLE, TX 77320 Re: Loan Number 77099991265B Dear KAREN SULEMON: The Texas Department of Housing and Community Affairs would like to welcome you as a new customer. Your first payment on your mortgage loan will be due JULY 01, 2013. Please use the temporary coupon attached below when mailing your first payment. Your loan may include an escrow account, which is used to pay your taxes and insurance. Annually, we will analyze the escrow account, and your payment may be adjusted accordingly. If, for example, your property taxes increase, your payment may also increase. At the end of each year, the Department will send you an annual statement for your records. This information will also be transmitted to the Internal Revenue Service for income tax purposes. If you have any questions or concerns regarding your mortgage loan, please don't hesitate to contact us at the number listed below. We look forward to servicing your mortgage loan. Texas Department of Housing and Community Affairs If by mail: P.O. Box 13941, Austin, Texas 78711 -3941 If by overnight delivery service: 221 E. llth Street, Austin, Texas 78701 Toll Free: 800.298.4013 FAX Number: 512.472.7500 CUT HERE FOR FIRST PAYMENT COUPON Mail to: Texas Department of Housing and Community Affairs P.O. Box 13245 -C3 Austin, Texas 78711 -3245 Loan Number: 77099991265B Payment Due Date: JULY 01, 2013 Borrower Name: KAREN SULEMON Mortgage Loan Payment: Principal & Interest: $224.37 Escrow: $210.56 Total Payment: $434.93 TDHCANSPPAYLTR Page I of I Affidavit of Occupancy Borrower hereby certifies and acknowledges that home being purchased under the Texas Neighborhood Stabilization Program is same property described in Appraisal Report (appraisals must conform to the Uniform Relocation Act ( "URA ") requirements under 49 CFR 24.103) for 293 WATKINS STREET, HUNTSVILLE WALKER County, TX 77320 dated MAY 20, 2013. The Borrower(s) hereby certifies and acknowledges that the above reference property will be their primary residence and will be occupied within 30 days of closing the mortgage loan. vxJ KAREN SULE N - Borrower - Borrower - Borrower - Borrower - Borrower - Borrower THE STATE OF TEX COUNTY OF B S or me, this tiu!i" (SEAL) ACKNOWLEDGEMENT § �(�� instrumen��\!N��o� and acknowledged on �? I 20 � by • \.� ;aptAiivp" '4,,,, !t A G7 1 iA `9 ;•,• 1 P, oF TEX / /�� 2 1011 11111 \ \\��\\\\\\\ THE STATE OF TEXAS COUNTY OF Before me, this instrument was signed and Cltk7V- aft61j14--- Notary P blic, St4 e of Texas �J yr 71, » 7 fj0,e.,t,7 ? dnl My Commission Expires: [Typed / Printe Name] e"--/ —2i( , acknowledged on , 20 by Notary Public, State of Texas (SEAL) My Commission Expires: TDHCANSPOCCUPAN Page 1 of 1 [Typed / Printed Name] Applicants /Borrowers: KAREN SULEMON Property Address: 293 WATKINS STREET, HUNTSVILLE, TX 77320 Loan No: 77099991265B NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Warning: Intentionally or knowingly making a materially false or misleading written statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We received, read and executed this written Notice. KA EN SULE ON STATE OF ( TEXAS ) COUNTY OF ( WALKER ) This instrument wa`\, % 4befor • %•, Noery P My commission expired s›, 5 Io ary's ly-2t3/i% 4kOF1 (Seal) 'c, Stat ped or TXPENALTYB1 Page 1 of 1 20/ , by KAREN SULEMON . of TEXAS nted name: 5 ./t/7z7) Applicants /Borrowers: KAREN SULEMON Property Address: 293 WATKINS STREET, HUNTSVILLE, TX 77320 Loan No: 77099991265B NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Warning: Intentionally or knowingly making a materially false or misleading written statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We received, read, and executed this written Notice. obi i lLZei__I REN SULEMON STATE OF ( TEXAS) ` ottIlltio COUNTY OF (WA�7{ ANN iy''' / This instrutent,,>wi CM1 * d before me on I VLfj 2 2'0 /3 by KAREN SULEMON . (Seal) Notary Pu �+ ic, Stat f TEXAS �/ ,� ) M commission ex ' P •• ���`� Nota 's ed or ted name: �U ' M/ I Atb Y P 1;74,.02074E0t ' n typed P Q TXPENALTYB1 Page 1 of 1 Form W -9 (Rev. December Department of the Treasury Internal Revenue Service Request for Taxpayer Identification Number and Certification Give form to the srequestor. Do end to the IRS. Not Print or Type See Specific Instructions on page 2 Name (as shown on your income tax return) KAREN SULEMON Business name /disregarded entity name, if different from above Check appropriate box Classification (required): 17.7 Individual /Sole proprietor 17."..i C Corporation In S Corporation f l Partnership . Limited liability company. Enter the tax classification (C =C corporation, S =S Corporation, P= partnership) r Other (see Instructions) • I Trust/estate • j— n Exempt payee Address (number, street, and apt, or suite no.) 293 WATKINS STREET Requestor's name and address (optional) City, state, and ZIP code HUNTSVILLE, TX 77320 List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on the "Name" line to avoid backup withholding. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose number to enter. Part II Social Security number 456 -27 -2462 Employer identification number Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. See the instructions on page 4. Sign Here Signature of U.S. Person General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA. Use Form W -9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to: 1. Certify the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income. Note. If a requester gives you a form other than Form W -9 to request your TIN, you must use the requester's form if it is substantially similar to this Form W -9. Date • `2c/3 Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: • An individual who is a U.S. citizen or U.S. resident alien, • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, • An estate (other than a foreign estate), or • A domestic trust (as defined in Regulations section 301.7701 -7). Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax on any foreign partners' share of income from such business. Further, in certain cases where a Form W -9 has not been received, a partnership is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W -9 to the partnership to establish your U.S. status and avoid withholding on your share of partnership income. The person who gives Form W -9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States is in the following cases: • The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X Fomi W- 9(Rev. 1 -2011) TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TEXAS NEIGHBORHOOD STABILIZATION PROGRAM TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS LOAN SERVICING DEPARTMENT LOAN NUMBER: INITIAL LOAN CONTACT INFORMATION 77099991265B BORROWER NAME: KAREN SULEMON PROPERTY ADDRESS: 293 WATKINS STREET, HUNTSVILLE, TX 77320 Pc D. Ial MAILING ADDRESS: HOME PHONE: WORK PHONE: CELL PHONE: NEAREST RELATIVE (not living with you) CONTACT NAME AND PHONE NUMBER: TDHCANSPINITIALLNCONTACTINFO 4 t,04 3 l l e 0.. 113(49, RSt,2--5 1- gLIq Sps'i 0°1 -13C, f3 - Nto lie r 3r4\w- � -c13 b - '43(p 10q a- L-r Page 1 of 1 Applicants /Borrowers: KAREN SULEMON Property Address: 293 WATKINS STREET, HUNTSVILLE, TX 77320 Loan No: 77099991265C NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Warning: Intentionally or knowingly making a materially false or misleading written statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We received, read, and executed this written Notice. KARENSULE STATE OF ( TEXAS ) COUNTY OF ( WALKER ) This instrument was (Seal) My commission expir acknowledged before me on t( ANNTyO* • N. Notary Notary "'`- •.F OFT' m 7'�1 .:.tREs•.•• � �.. 4 -2p1 4 ,��aa 00111I1111110 rinted name!, 74/4) TXPENALTYBI Page 1 of 1 Applicants /Borrowers: KAREN SULEMON Property Address: 293 WATKINS STREET, HUNTSVILLE, TX 77320 Loan No: 77099991265C NOTICE OF PENALTIES FOR MAKING FALSE OR MISLEADING WRITTEN STATEMENT Warning: Intentionally or knowingly making a materially false or misleading written statement to obtain property or credit, including a mortgage loan, is a violation of Section 32.32, Texas Penal Code, and, depending on the amount of the loan or value of the property, is punishable by imprisonment for a term of 2 years to 99 years and a fine not to exceed $10,000. I /we, the undersigned home loan applicant(s), represent that I /we have received, read, and understand this notice of penalties for making a materially false or misleading written statement to obtain a home loan. I /we represent that all statements and representations contained in my /our written home loan application, including statements or representations regarding my /our identity, employment, annual income, and intent to occupy the residential real property secured by the home loan, are true and correct as of the date of loan closing. I /We hereby acknowledge that at the closing of the loan that I /We received, read, and executed this written Notice. REN SULE STATE OF ( TEXAS ) COUNTY OF ( WALKER) ��� This instrument was acknowledged before me on a - l C� 9 / A (Seal) My commission expires:' 2e,/c/ 11ltl1 Of! �+ ,,LEMON Go O SAEe S.. *,.�q it- r" fTEXAS Notary Pu 1 c, State Notary's ' ed or pri ted name: TXPENALTYB1 Page 1 of 1 Form W -9 (Rev. December 2011) Department of the Treasury Internal Revenue Service Request for Taxpayer Identification Number and Certification Give form to the requestor. Do Not send to the IRS. Print or Type See Specific Instructions on page 2 Name (as shown on your income tax return) KAREN SULEMON Business name /disregarded entity name, if different from above Check appropriate box Classification (required): ri Individual /Sole proprietor r C Corporation r S Corporation 17.7 Partnership r Limited liability company. Enter the tax classification (C =C corporation, S =S Corporation, P= partnership) r Other (see Instructions) • r Trust/estate • rt Exempt payee Address (number, street, and apt, or suite no.) 293 WATKINS STREET Requestor's name and address (optional) City, state, and ZIP code HUNTSVILLE, TX 77320 List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on the "Name" line to avoid backup withholding. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose number to enter. Part II Certification Social Security number 456 -27 -2462 Employer identification number Under penalties of perjury, 1 certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. See the instructions on page 4. Sign Here Signature of U.S. Person General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA. Use Form W -9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to: 1. Certify the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income. Note. If a requester gives you a form other than Form W -9 to request your TIN, you must use the requester's form if it is substantially similar to this Form W -9. Date ■ 5- 24943 Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: • An individual who is a U.S. citizen or U.S. resident alien, • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, • An estate (other than a foreign estate), or • A domestic trust (as defined in Regulations section 301.7701 -7). Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax on any foreign partners' share of income from such business. Further, in certain cases where a Form W -9 has not been received, a partnership is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W -9 to the partnership to establish your U.S. status and avoid withholding on your share of partnership income. The person who gives Form W -9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States is in the following cases: • The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X Form W -9 (Rev. 1 -2011) G.F. NO.: 201302207 POLICY NO. DELETION OF ARBITRATION PROVISION (Not applicable to the Texas Residential Owner Policy) Arbitration is a common form of alternative dispute resolution. It can be a quicker and cheaper means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you give up your right to take the Title Company to court and your rights to discovery of evidence may be limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award. Your policy contains an arbitration provision (shown below). It allows you or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. You can do this by signing this form and returning it to the Company at or before the closing of your real estate transaction or by writing to the Company. The arbitration provision in the Policy is as follows: "Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ( "Rules "). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction." I request deletion of the Arbitration provision. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS By: / Its: Duly Authorized Represen ativre� DATE: M A L, 2.0 J 0 LS Loan No.: 77099991265B TDHCADELARB Page 1 of 1 SURVEY AND TITLE LETTER I /We the undersigned Borrower(s) hereby certify that I /we have received, reviewed, and approved a copy of the attached survey which is incorporated hereto by reference and have signed or initialed and dated same for identification purposes. I /We am /are aware of the indicated encroachments, protrusions, easements, limitations, access, dimensions, and/or other conditions shown on the survey. 1 /We further certify that the Settlement Agent has provided me /us with a copy of the Commitment for Title Insurance and that I /we have reviewed and consent to all of the exceptions to title which would appear in an Owner's Title Policy for the Property. IN CONSIDERATION OF THE LENDER MAKING A LOAN TO BORROWER(S), I/WE HEREBY HOLD LENDER HARMLESS FROM ANY COMPLAINT ARISING AS A RESULT OF ANY MATTERS INDICATED IN THE SURVEY, THE EXCEPTIONS STATED IN THE COMMITMENT FOR TITLE INSURANCE, AND THE OWNER'S AND MORTGAGEE TITLE INSURANCE POLICIES. IN ADDITION TO BUT NOT IN LIEU OF THE ABOVE AND FOR THE CONSIDERATION RECITED ABOVE, I/WE HAVE BEEN MADE AWARE OF THE FOLLOWING SPECIFIC CONDITIONS AFFECTING THE ABOVE - DESCRIBED PROPERTY AND I/WE DO HEREBY AGREE, INDEMNIFY AND HOLD HARMLESS LENDER, ITS SUCCESSORS AND ASSIGN FROM ANY CLAIMS, COSTS, DAMAGES, CAUSES OF ACTION AND EXPENSES IN ANY WAY ARISING FROM THE FOLLOWING CONDITIONS: OVERHEAD POWER LINES CROSS THE PROPERTY. EXECUTED this) day of BORROWER: a x-J REN SULEMON TDHCANSPSURVEY Page 1 of 1