The Michigan 3023 form, a comprehensive document for mortgage transactions, primarily serves as a security instrument binding between the borrower and lender, detailing definitions, obligations, and agreements including but not limited to property descriptions, loan terms, and borrower and lender information. It establishes a legal framework for mortgage loans, outlining rights, and duties of all parties involved and providing a standardized process for the recording and handling of these financial transactions in Michigan. Considering its importance in securing a mortgage and navigating the legalities of real estate transactions, understanding and accurately completing the Michigan 3023 form is crucial for both borrowers and lenders. To ensure accuracy and compliance, consider clicking the button below to learn more about how to properly fill out the Michigan 3023 form.
The Michigan 3023 form serves as a cornerstone document in real estate transactions within the state, acting as a comprehensive mortgage agreement between the borrower and the lender. It meticulously outlines definitions, obligations, and rights related to the mortgage process, ensuring clarity and legal uniformity across such dealings. The form includes detailed sections on the definitions of commonly used terms, the roles and responsibilities of the borrower and lender, and the specifics of the Note, which encapsulates the financial obligations owed by the borrower to the lender. Additionally, the document delves into the property details, loan information, and the applicability of various riders, which modify or add conditions to the mortgage based on the property type or the loan's characteristics. Aspects such as electronic funds transfer, escrow items, miscellaneous proceeds, and the vital importance of adhering to applicable laws, including the Real Estate Settlement Procedures Act (RESPA), are thoroughly addressed. This holistic approach ensures that all parties are well-informed of their commitments and the legal framework governing the transaction, highlighting the form's importance in safeguarding interests and promoting transparency within Michigan's real estate sector.
After Recording Return To:
[Space Above This Line For Recording Data]
MORTGAGE
DEFINITIONS
Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16.
(A)
“Security Instrument” means this document, which is dated
,
, together with all Riders to this document.
(B)
“Borrower” is
. Borrower’s address
is
.
Borrower
is the mortgagor under this Security Instrument.
(C)
“Lender” is
Lender
is a
organized and existing under the laws of
. Lender’s address is
. Lender is the mortgagee under this Security Instrument.
(D)
“Note” means the promissory note signed by Borrower and dated
. The Note states that Borrower owes Lender
Dollars (U.S. $
) plus interest.
Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full
not later than
(E)“Property” means the property that is described below under the heading “Transfer of Rights in the Property.”
(F)“Loan” means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest.
(G)“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]:
! Adjustable Rate Rider
! Condominium Rider
!
Second Home Rider
Balloon Rider
Planned Unit Development Rider
Other(s) [specify]
1-4 Family Rider
Biweekly Payment Rider
MICHIGAN--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
Form 3023
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(H)“Applicable Law” means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions.
(I)“Community Association Dues, Fees, and Assessments” means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization.
(J)“Electronic Funds Transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers.
(K)“Escrow Items” means those items that are described in Section 3.
(L)“Miscellaneous Proceeds” means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property.
(M)“Mortgage Insurance” means insurance protecting Lender against the nonpayment of, or default on, the Loan.
(N)“Periodic Payment” means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument.
(O)“RESPA” means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, “RESPA” refers to all requirements and restrictions that are imposed in regard to a “federally related mortgage loan” even if the Loan does not qualify as a “federally related mortgage loan” under RESPA.
(P)“Successor in Interest of Borrower” means any party that has taken title to the Property, whether or not that party has assumed Borrower’s obligations under the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower’s covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, warrant, grant and convey to Lender and Lender’s successors and assigns, with power of sale, the following described property located in the
[Type of Recording Jurisdiction]
of
:
[Name of Recording Jurisdiction]
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which currently has the address of
[Street]
, Michigan
(“Property Address”):
[City]
[Zip Code]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the “Property.”
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1.Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer’s check or cashier’s check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer.
Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in
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the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument.
2.Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following
order of priority: (a) interest due under the Note; (b) principal due under the Note;
(c)amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
3.Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the “Funds”) to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called “Escrow Items.” At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower’s obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower’s obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower’s obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase “covenant and agreement” is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice
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given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA.
If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender.
4.Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender’s opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4.
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Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan.
5.Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term “extended coverage,” and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender’s right to disapprove Borrower’s choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender’s option and Borrower’s expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower’s equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender’s right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender’s security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender’s satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an
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agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender’s security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower’s rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower’s rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
6.Occupancy. Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.
7.Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower’s obligation for the completion of such repair or restoration.
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Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.
8.Borrower’s Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower’s knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower’s occupancy of the Property as Borrower’s principal residence.
9.Protection of Lender’s Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender’s interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or
(c)Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender’s interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender’s actions can include, but are not limited to:
(a)paying any sums secured by a lien which has priority over this Security Instrument;
(b)appearing in court; and (c) paying reasonable attorneys’ fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9.
Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
10.Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance
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coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender’s requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower’s obligation to pay interest at the rate provided in the Note.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums).
As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower’s payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer’s risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer’s risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed “captive reinsurance.” Further:
(a)Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund.
(b)Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination.
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11.Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender’s security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender’s satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender’s security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower.
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. “Opposing Party” means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds.
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Completing the Michigan 3023 form is a necessary step in the process of applying for a mortgage. It's important that this form is filled out carefully and accurately to ensure that all legal requirements are met and to secure the terms of the mortgage. This document, known as a Security Instrument, essentially establishes the property as security for the loan. It outlines the borrower's and lender's rights and obligations, including the borrower's promise to repay the loan and the lender's right to take possession of the property if the borrower fails to meet those obligations.
To fill out the Michigan 3023 form correctly, follow the steps outlined below:
Once the Michigan 3023 form is fully completed and submitted, the next steps involve the processing of the mortgage application by the lender, the recording of the Security Instrument, and the eventual approval and closing of the loan. It is essential to work closely with the lender or a legal advisor to ensure that all additional requirements and documentation are correctly handled to finalize the mortgage transaction successfully.
The Michigan 3023 form is a legal document used in the state of Michigan for the purpose of setting forth the terms and conditions of a mortgage between a borrower and lender. It includes definitions, obligations, covenants, and rights related to the mortgage. This form is designed to facilitate uniformity in mortgage documents across the state.
This form must be filled out by the borrower who is obtaining the loan and the lender who is providing the loan. It is crucial for both parties to carefully review and understand all the stipulations of the form as it legally binds them to its terms.
Sections A to D of the form require detailed information about the security instrument, including the date, the borrower's and lender's details, and specifics about the loan such as the amount borrowed, interest, and maturity date.
"Riders" refers to additional agreements or amendments attached to the Michigan 3023 form. These Riders can modify or add further terms to the main document. Borrowers may need to execute certain Riders depending on specific circumstances of their loans, such as Adjustable Rate, Condominium, or Balloon Riders, among others.
The form outlines obligations regarding escrow items in Section 3. Borrowers are required to pay funds into an escrow to cover expenses like taxes, insurance premiums, and possibly homeowners association dues. These funds are managed by the lender to ensure payments for these items are made on time.
"Miscellaneous Proceeds" refer to any compensation or payments received by the borrower from third parties for damages, condemnation, or misrepresentation related to the property. According to the agreement, these proceeds are also to be managed by the lender under certain conditions.
Payments made by the borrower are primarily applied to settle interest due under the note, followed by principal due, and then any amounts due under Section 3 for escrow items. Further details on the application of payments, including for late charges or prepayment, are specified in Section 2 of the form.
The borrower must promptly pay all taxes, assessments, and other charges related to the property. If any liens are placed on the property that could take precedence over the mortgage, the borrower is obligated to resolve these liens as outlined in Section 4 of the form.
Upon the full repayment of the loan, the lender is required to refund any remaining escrow funds to the borrower. The specifics of how and when these refunds are to be processed are detailed in Section 3 of the form, in alignment with RESPA requirements.
Filling out forms is part of the process when it comes to dealing with mortgages and property in Michigan. The Michigan 3023 form, a critical document in the mortgage process, is no exception. However, completing this form can be daunting, and mistakes are common. Here are five common mistakes people make when they complete the Michigan 3023 form:
Addressing these common mistakes requires a careful review of the form before submission. It's essential to double-check that all boxes that should be checked are dealt with correctly, that property descriptions are accurate and complete, and that all information regarding the loan and escrow items is precisely conveyed. Taking the time to review these sections can save a great deal of time and prevent potential issues in the mortgage process. It's also advisable to consult with a professional if there’s any uncertainty about how to properly complete the form. A small investment in ensuring accuracy upfront can prevent costly corrections and delays.
Ultimately, the Michigan 3023 form is a critical component of the property and mortgage process in the state. By avoiding these mistakes, borrowers and lenders can facilitate a smoother transaction. Attention to detail and thoroughness are key to accurately completing the document and advancing toward a successful mortgage agreement.
When dealing with real estate transactions, especially those involving a mortgage in Michigan, the Michigan 3023 form plays a crucial role. However, this form rarely stands alone. A handful of other documents are typically required to ensure a comprehensive approach to property financing and legal compliance. The following list highlights four additional forms and documents that are often used alongside the Michigan 2643 form:
Together, these documents supplement the Michigan 3023 form, creating a clearer, legally sound path forward for both lenders and borrowers in the realm of real estate transactions. Understanding each document's role and importance ensures a smoother process for all parties involved, safeguarding interests and facilitating the necessary legal and financial due diligence.
The Michigan 3023 form shares several similarities with other mortgage-related documents, specifically in the structure and purpose it serves. The descriptions of particular sections and overall intent of ensuring the terms between borrower and lender are clearly articulated are common themes seen across mortgage documentation. Understanding these resemblances helps in getting a grasp of how the Michigan 3023 form fits into the wider scheme of real estate financing.
The Uniform Residential Loan Application (Form 1003) is one example. Like the Michigan 3023 form, the Form 1003 is essential in the loan application process, collecting detailed information about the borrower, the property, and the requested loan. Both are standardized documents used widely across the United States, aiming to streamline the application process for loans secured by real estate. They ensure that lenders gather all necessary information to make an informed decision about the applicant's creditworthiness and the property value.
The Deed of Trust is another document that bears similarities to the Michigan 3023 form, especially in states where deeds of trust are used instead of mortgages. Both serve as security instruments for loans, detailing the borrower's obligations and the rights of the lender. They include clauses on payment obligations, insurance, and property taxes, and outline procedures in the event of default. The primary difference lies in the parties involved; a deed of trust includes a trustee along with the lender and borrower, whereas a mortgage typically involves just the lender and borrower.
The Loan Estimate and Closing Disclosure forms, mandated by the TILA-RESPA Integrated Disclosure rule, also share commonalities with the Michigan 3023 form in terms of providing transparency in the lending process. While the Michigan 3023 form outlines the terms of the mortgage, the Loan Estimate and Closing Disclosure provide detailed information about the costs and fees associated with a mortgage transaction. Together, these documents ensure borrowers are fully informed about their loan conditions and closing costs well in advance of the loan closing.
When dealing with the Michigan 3023 form, it's important to navigate the process with care. Here are some key dos and don'ts to help ensure everything goes smoothly:
Proper attention to the above details can help facilitate a smooth and legally sound transaction, protecting the interests of all parties involved in the process.
There are common misunderstandings surrounding documents like the Michigan 3023 form, a mortgage document designed for use in Michigan. Below are five misconceptions and explanations to clarify each point.
Understanding the Michigan 3023 form is crucial for both borrowers and lenders as it lays down the foundational terms and conditions of the mortgage. By dispelling these misconceptions, parties can confidently navigate their rights and obligations under the mortgage agreement.
Understanding the Michigan 3023 form requires recognition that it serves as a security instrument, a legal document securing a lender's interest in a borrower's property in case of default. Such familiarization can guide individuals through the complexities of mortgage agreements.
Each term defined within the form, including "Borrower," "Lender," "Note," and "Property," among others, is crucial for clear communication between the parties involved. Paying close attention to these definitions can prevent misunderstandings.
The form outlines the borrower's obligations, including the repayment of the loan and adherence to the covenants and agreements specified. Grasping these responsibilities ensures borrowers are aware of their commitments under the agreement.
The inclusion of Riders indicates specific provisions or amendments added to the standard agreement, addressing unique circumstances of the loan or property. Recognizing which Riders apply to your situation can provide tailored insights into your mortgage terms.
Understanding the form's section on Escrow Items is vital. It explains how borrowers should manage the funds for property taxes, insurance premiums, and other expenses that could impact the lender's security interest.
The document emphasizes the importance of maintaining an Escrow account for managing taxes, insurance, and possibly other fees, clarifying the process for collecting, adjusting, and refunding escrow funds in line with federal guidelines.
A significant takeaway is the borrower's agreement to keep the property free from prior liens and encumbrances, safeguarding the lender's interest. Borrowers must address any liens that could attain priority over the mortgage immediately, according to the provisions.
The form's provision on Electronic Funds Transfer (EFT) acknowledges the evolving nature of financial transactions, offering a modern method for borrowers to make their payments conveniently and securely.
The sections on Applicable Law and borrower covenants ensure that both parties understand their rights and obligations under the state and federal law, aiming for a legal and transparent mortgage process.
Nolop Charge - The form MC 263 serves as a formal notice that a prosecutor has decided to drop charges against a defendant or juvenile before or during trial.
Michigan Bureau of Workers Compensation - Filing this form can also help in the identification and mitigation of workplace hazards, promoting a safer environment.