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HomeMy WebLinkAbout2009 CON (DEED OF TRUST) Alexis Gonzalez / Alberto Vidal - 1203 Fig CourtP_CORDED AT T r. ,EOUEST OF CHICAGO TITLE COMPANY SUBDIVISION DEPT. WHEN RECORDED PLEASE MAIL TO: The Community Development Commission Of the City of National City, Inc. 1243 National City Boulevard N_ tional City, CA 91950 APN: 551-650-29-00 NOTICE: IIHIH III HIH IIIII IIIII �1 �� II II I II I III IIII HIH I III �1 III JUN 25, 2009 3:10 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE C 4VID L. BUTLER.. C :DUNT`r' RECORDER • FEES: 0.00 DA: 1 PAGES: 13 I Will IIIII IIIIUIIII IIIII IIIII IIIII IIIII IIIII IIIII Hill NIII IIIII III1I IIII 101 FTHB# 0910-NC05 THIS DEED OF TRUST SECURES A SHARED APPRECIATION LOAN WITHIN THE MEANING OF CIVIL CODE SECTION 1917, ET SEQ. THE LOAN SECURED BY THIS DEED OF TRUST MAY REQUIRE PAYMENT OF PRINCIPAL, INTEREST AND A PORTION OF THE APPRECIATION UPON THE SALE OR TRANSFER OF THE PROPERTY OR UPON A PREPAYMENT. DEED OF TRUST (SHARED APPRECIATION) THIS DEED OF TRUST, is made this 27th day of May, 2009, among the Trustor(s), Alexis M. Gonzalez and Alberto Cisneros Vidal, wife -and lusb'and as Joint Tenants , (herein "Borrower"), and the Community Development Commission of National City (herein "Beneficiary") a public body, corporate and politic, whose address is 1243 National City Blvd., National City, CA 91950. BORROWER, in consideration of the indebtedness herein recited and the trust herein created, irrevocably grants and conveys to The Community Development Commission of the City of National City, (herein "Trustee"), in trust, with power of sale, the following described property located in the City of National City, County of San Diego, State of California [which has the address of 1206 Fig Court, National City, California (herein "Property Address")]: SEE EXHIBIT "A" ATTACHED HERETO FOR LEGAL DESCRIPTION This Deed of Trust is second and subsequent in lien priority position to a First Deed of Trust recording concurrently herewith in favor of the first lien holder, Bank of America, N.A., a California Corporation in the amount of One Hundred Fifty Eight Thousand and Six Hundred Sixty Eight Dollars and 00 Cents ($158,668.00); TOGETHER with all the improvements now and hereafter erected on the Property, and all easements, rights, appurtenances and rents (subject however to the rights and authorities given herein to the Beneficiary to collect and apply such rents), all of which shall be deemed to be and remain part of the property covered by this Deed of Trust; and all of the foregoing, together with said property (or the leasehold estate if this Deed of Trust is on a leasehold) are hereinafter referred to as the "Property"; TO SECURE to the Beneficiary the (i) repayment of the indebtedness evidenced by Borrower's promissory note, dated May 27th, 2009 and extensions and renewals thereof (herein "Note"), in the principal sum of One Hundred Eighty Nine Thousand, Four Hundred Twenty Six Dollars, and 00/Cents ($189,426.00) including without limitation the Equity sharing provisions thereof (the term "Equity" shall have the meaning ascribed to it in the Note Rider attached to the Note); (ii) the performance of each agreement and covenant of Borrower under that certain Homeowner's Regulatory Agreement for Home Program Participation ("Home Agreement") of even date herewith and recorded concurrently herewith affecting the Property; (iii) the "THIS IS A SECOND DEED OF TRUST, SUBSEQUENT TO A FIRST RECORDING CONCURRENTLY HEREWITH" Page 1 of 12 Initials 9 9210 UQ payment of all other sums with interest thereon, advanced in accordance herewith to protect the security of 9 211 this Deed of Trust; and (iv) the performance of the covenants and agreements of Borrower herein contained. Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that the Borrower's subject property is unencumbered except for encumbrances of record. Borrower covenants that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record. UNIFORM COVENANTS Borrower and Beneficiary covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness evidenced by the Note. If payment of the indebtedness is required due to a Sale of the Property where the purchase price is equal to or less than the Acquisition Cost of the Property, assuming an open and competitive sale, then repayment shall be made in the following order and amount: (a) Outstanding principal and interest balance of the primary lender's loan; (b) Borrower's initial down -payment investment and normal cost of sale; (c) Accrued simple interest on the principal amount of the Beneficiary's loan at the interest rate and the terms contained in the Promissory Note; (d) The principal amount of the Beneficiary's loan; and (e) Any remainder to borrower. 2. Funds for Taxes and Insurance. To protect the security of the Deed of Trust, Trustor agrees to pay, at least ten (10) days before delinquency, all taxes and assessments affecting said property; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; and all costs, fees and expenses of this Deed of Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary, without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his/her reasonable fees. 3. Application of Payments. Unless applicable law provides otherwise, and except as provided in Section 1, above, all payments received by Beneficiary hereunder shall be applied; first, to any prepayment charges due under the Note; second, to amounts payable under section 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note. 4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien against the Property, including without limitation, Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any. Page 2 of 12 Initials Yr9 A Gi 6 IouA tlq 5. Hazard Insurance. Borrower shall keep the improvement(s) now existing or hereinafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Beneficiary may require and in such amounts and for such periods as Beneficiary may require. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Beneficiary; provided, that such approval will not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Beneficiary and shall include a standard mortgage clause in favor of and in a form acceptable to Beneficiary. Beneficiary has the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made promptly by Borrower. If Property is abandoned by Borrower, or if Borrower fails to respond to Beneficiary within 30 days from the date notice is mailed by Beneficiary to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Beneficiary is authorized to collect and apply the insurance proceeds at Beneficiary's option either to restoration or repair of the Property or to the sums secured by this Deed of Trust. 6. Preservation and Maintenance of Property. Condominium, Cooperatives. Planned Unit Developments. Borrower will keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall maintain property including the principle house, garage, and out buildings as well as lawn maintenance, and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants, conditions and restrictions, creating or governing the condominium, planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. 7. Protection of Beneficiary Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Beneficiary's interest in the Property, then Beneficiary, at Beneficiary's option, upon notice to Borrower, may make such appearances, disburse such sums including reasonable attorneys' fees, and take such action as is necessary to protect Beneficiary's interest. If Beneficiary required mortgage insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Beneficiary's written agreement or applicable law. Any amounts disbursed by Beneficiary pursuant to this Paragraph, with interest thereon, at the original Note rate, will become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Beneficiary agree to other terms of payment, such amounts will be payable upon notice from Beneficiary to Borrower requesting payment thereof. Nothing contained in this Paragraph will require Beneficiary to incur any expense or take any action hereunder. 8. Inspection. Beneficiary may make or cause to be made reasonable entries upon and inspections of the Property, provided that Beneficiary will give the Borrower notice prior to any such inspection specifying reasonable cause therefore related to Beneficiary's interest in the Property. 9. Condemnation. The- proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Beneficiary subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust. Page 3 of 12 Initials "FJ A cJ 9212 10. Borrower Not Released; Forbearance by Beneficiary Not a Waiver. Extension of the time for payment or modification of payment of the sums secured by this Deed of Trust granted by Beneficiary to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Beneficiary shall not be required to commence proceedings against such successor or to extend time for payment or otherwise modify payment of the sums secured by this Deed of Trust by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by Beneficiary in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 11. Successors and Assigns Bound, Joint and Several Liability; Co-signers. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Beneficiary and Borrower, subject to the provisions of Paragraph 16 hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Deed of Trust, but does not execute the Note: (a) Is co-signing this Deed of Trust only to grant and convey that Borrower's interest in the Property to Trustee under the terms of this Deed of Trust, (b) Is not personally liable on the Note or under this Deed of Trust, and (c) Agrees that the Beneficiary and any other Borrower hereunder may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this Deed of Trust or the Note, without that Borrower's consent and without releasing that Borrower or modifying this Deed of Trust as to that Borrower's interest in the Property. 12. Notice. Except for any notice required under applicable law to be given in another mariner, any notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail, addressed to Borrower at the Property address or such other address as Borrower may designate by notice to Beneficiary as provided herein, and (a) Any notice to Beneficiary will be given by certified mail, return receipt requested, to Beneficiary address stated herein or to such other address as Beneficiary may designate by notice to Borrower as provided herein. (b) Any Notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or Beneficiary when given in the manner designated herein. 13. Governing Law, Severability. The state and local laws applicable to this Deed of Trust shall be the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of Federal law to this Deed of Trust. In the event that any provision or clause of this Deed of Trust or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or the Note which can be given effect without the conflicting provision, and to this end the provisions of this Deed of Trust and the Note are declared to be severable. As used herein, "costs", "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein. 14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and this Deed of Trust at the time of execution or after recordation hereof. 15. HOME Agreement. Borrower shall fulfill all of Borrower's other loan agreement(s) which Borrower enters into with the Beneficiary, including, without limitation, the HOME Agreement with the Beneficiary. 16. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home rehabilitation, improvement, repair, or other loan agreement which Borrower enters into with Beneficiary. Page 4 of 12 Initials 9213 ociotdol N CV Beneficiary, at Beneficiary's option, may require Borrower to execute and deliver to Beneficiary, in a form acceptable to Beneficiary, an assignment of any rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in connection with improvements made to the Property. 17. Transfer of the Property or a Beneficial Interest in Borrower. If there is a "transfer", the principal amount of the Note, together with a share of the "Equity" (if any), as hereafter defined, shall be immediately due and payable to the Beneficiary. A "transfer" means (i) all or any part of the Property or any interest in the Property is sold, conveyed or transferred; (ii) Borrower is not a natural person and a beneficial interest in Borrower is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced, except as otherwise allowed by law; (iv) Borrower does not occupy the Property as his, her, or their, primary residence; (v) the leasing of all or any part of the Property; (vi) any material breach of this Deed of Trust, the Note or the Home Agreement; or (vii) the filing of bankruptcy by the Borrower. The Equity in the Property shall be calculated and shared between the Borrower and the Beneficiary on the following basis: If, for example, the Property is sold in the first year of the term of the Note secured by this Deed of Trust, Borrower shall receive fifty percent (50%) of the Equity in the Property and the Beneficiary shall receive fifty percent (50%) of the Equity. "Equity" is defined as the dollar amount that constitutes the difference between the sales price of the Property (or in the event of a sale of the Property for an amount other than its fair market value or where there is no price established for the Property (i.e., rental or refinancing the Property, Borrower's failure to occupy the Property, material breach of the Note, HOME Agreement or this Deed of Trust; or the filing of bankruptcy by the Borrower, the fair market value of the Property determined by an appraiser chosen by the Beneficiary in its sole discretion) and the sum of the following amounts: (a) The principal on the First Note and the Deed of Trust (including all principal paid down on the First Note and Deed of Trust), along with any interest and fees due thereon; and (b) The principal on the Note and this Deed of Trust, along with any interest and fees due thereof; and (c) All costs of sale, including costs of brokers' commissions, escrow fees, title costs and fees, recording costs, etc.; and (d) Current year taxes, including all real estate taxes calculated to the date of sale; and (e) The Borrower's down payment not including the loan from the Beneficiary to Borrower; and (f) The costs of any improvements to the Property, provided such improvements were approved by the Beneficiary prior to construction and provided that such improvements have been documented to the satisfaction of the Beneficiary. The amount of the Borrower's share in the Equity of the Property shall increase by five percent (5%) per year, measured on the anniversary of the date this Deed of Trust is recorded against the Property. Correspondingly, the Beneficiary's share in the equity of the Property shall decrease by five percent (5%) per annum. For the sake of example, if the Property is sold more than five (5) but less than six (6) years after the date this Deed of Trust is recorded against the Property, the Beneficiary would have a twenty five percent (25%) share in the equity and the Borrower would have a seventy five percent (75%) share in the Equity of the Property. In the event that no Equity exists at the time of transfer or sale, the balance of the Note (item 17b above) will be due and payable as provided herein and in the Note. In the event that a negative Equity situation n Page 5 of 12 Initials A cj 9214 0G/Oq`�� exists, i.e., the proceeds from the sale of the Property are less than the balance of the Note, all net proceeds from the transfer or sale shall be paid to Beneficiary in full satisfaction of the Note. NON -UNIFORM COVENANTS Borrower and Beneficiary further covenant and agree as follows: 18. Acceleration, Remedies. Upon Borrower's breach of any covenant or agreement of Borrower in this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, and those contained in paragraph 17 hereof, the Beneficiary, prior to acceleration, shall give notice to Borrower as provided in Paragraph 12 hereof specifying: (a) The breach; (b) The action required to cure such breach; (c) A date, not less than 10 days from the date the notice is mailed to Borrower, by which such breach must be cured; and (d) That failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration of sale. If the breach is not cured on or before the date specified in the notice, Beneficiary, at Beneficiary's option, may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Beneficiary shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Paragraph 17, including, but not limited to, reasonable attorneys' fees. If Beneficiary invokes power of sale, Beneficiary shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of Beneficiary's election to cause the Property to be sold and shall cause such notice to be recorded in each county in which the Property or some part thereof is located. Beneficiary or Trustee shall mail copies of such notice in the manner prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by applicable law. After the lapse of such time as may be required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in such order as Trustee may determine. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Beneficiary or Beneficiary's designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property so sold without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (a) To all reasonable costs and expenses of the sale, including, but not limited to, reasonable Trustee's and attomeys' fees and costs of title evidence; (b) To all sums secured by this Deed of Trust; and (c) The excess, if any, to the person or persons legally entitled thereto. Page 6 of 12 Initials 9215 amc 0E��ti�dy C\/ 19. Borrower's Right to Reinstate. (a) Curable Breach. Not withstanding Beneficiary's acceleration of the sums secured by this Deed of Trust due to Borrower's breach, Borrower shall have the right to have any proceedings begun by Beneficiary to enforce this Deed of Trust discontinued at any time prior to five days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (1) Borrower pays Beneficiary all sums, which would be then due under this Deed of Trust, and the Note, had no acceleration occurred; (2) Borrower cures all breaches of any other covenants or agreements of Borrower contained in the Deed of Trust; (3) Borrower pays all reasonable expenses incurred by Beneficiary and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, and in enforcing Beneficiary's and Trustee's remedies as provided in Paragraph 18 hereof, including, but not limited to, reasonable attorneys' fees; and (4) Borrower takes such action as Beneficiary may reasonably require to assure that the lien of this Deed of Trust, Beneficiary's interest in the Property and Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. (b) Non -Curable Breach. (1) Failure to Occupy/Renting Out the Property is a Violation of Federal Law. Borrower hereby acknowledges that the loan evidenced by the Note and secured by this Deed of Trust was funded by Beneficiary using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. Section 215 of the HOME Investment Partnerships Act (42 U.S.C. §12745) and the HOME program regulations (24 C.F.R. §92.254) require Borrower to occupy the Property as Borrower's principal residence. Renting out the Property and/or Borrower's failure to occupy the Property as Borrower's principal residence is a violation of Federal law (in addition to being a violation of the Note, Declaration and this Deed of Trust). Beneficiary is obligated by Federal law to enforce the provisions of the HOME program, Beneficiary's failure to do so would jeopardize the Beneficiary's ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. (2) Failure to Occupy/Renting Out the Property Materially Impairs Beneficiary's Security. Borrower hereby acknowledges and agrees that renting out the Property and/or Borrower's failure to occupy the Property as Borrower's principal residence, materially impairs the Beneficiary's security for the loan and the Beneficiary's ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. Borrower further acknowledges that if the Property is rented out and/or Borrower fails to occupy the Property as Borrower's principal residence, then during any such period the Property will not qualify as "affordable housing" and the Beneficiary may be in breach of its obligations to HUD and therefore the Beneficiary's security for the loan will be materially impaired. (3) Failure to Occupy/Renting Out the Property is a Non -Curable Breach. Borrower hereby acknowledges and agrees that renting out the Property and/or Borrower's failure to occupy the Property as Borrower's principal residence, will be a non -curable breach and the Beneficiary shall have the right to accelerate the loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in Sections 18 or 19(a) of this Deed of Trust, Borrower agrees Page 7 of 12 Initials U n19 9216 that in the event Borrower rents out the Property and/or fails to occupy the Property as Borrower's principal residence, Borrower shall not have the right to cure the breach and reinstate the loan, this Deed of Trust or the obligations secured hereby. (4) Borrower's Waiver. Borrower hereby knowingly waives and relinquishes any and all legal and/or contractual rights Borrower may have to cure or otherwise reinstate this Deed of Trust and the obligations secured hereby, in the event that Property is rented out and/or Borrower fails to occupy the Property as Borrower's principal residence. (5) Representation of Comprehension. Borrower acknowledges and agrees that Beneficiary has advised Borrower (and each of them if there is more than one Borrower) to retain an attorney to represent Borrower with respect to the loan secured by this Deed of Trust. By executing this Deed of Trust, Borrower (and each of them if there is more than one Borrower) represents that: (i) Borrower fully understands and accepts the terms of this Deed of Trust, the Note and the Declaration; (ii) Borrower has relied upon the legal advice of Borrower's attorneys or that Borrower has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the Beneficiary nor its attorneys represents Borrower; (iv) that Borrower has had a full and ample opportunity to consult with any other professionals of Borrower's choice in connection with the rights and liabilities created by this Deed of Trust, the Note and the Declaration; (v) that Borrower does not have any questions with regard to the legal import of any term, word, phrase, or portion of this Deed of Trust, the Note and the Declaration, or any of this Deed of Trust, the Note and the Declaration in their entireties; and (vi) Borrower accepts the terms of this Deed of Trust, the Note and the Declaration as written. 20. Assignment of Rents; Appointment of Receiver, Beneficiary in Possession. As additional security hereunder, Borrower hereby assigns to Beneficiary the rents of the Property. Upon any such default, the Beneficiary, in person, by agent or by judicially appointed receiver, shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the property including those past due. All rents collected by Beneficiary or the receiver shall be applied first to payment of the cost of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Deed of Trust. Beneficiary and the receiver shall be liable to account only for those rents actually received. The entering upon and taking possession of said property and the collection of such rents and the application thereof as aforesaid shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 21. Reconvevance. Upon payment of all sums secured by this Deed of Trust, Beneficiary shall request Trustee to reconvey the Property and will surrender this Deed of Trust and all Notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. 22. Substitute Trustee. The Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Beneficiary and recorded in the office of the Recorder of the county where the Property is located. The instrument shall contain the name of the original Beneficiary, Trustee and Borrower, the book and page where this Instrument is recorded and the name and address of the successor trustee. The successor trustee shall, without conveyance of the Property, succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 23. Request for Notices. Borrower requests that copies of the Notice of Default and Notice of Sale be sent to Borrower's address, which is the Property Address. Beneficiary requests that copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust be sent to Beneficiary's address, as set forth on Page One of this Deed of Trust as provided by Section 2924b of the Civil Code of California. Page 8 of 12 Initials a r)25 9217 24. Fee for Requested Statements. The Beneficiary may charge a fee not to exceed the amount allowed by law for furnishing the statement of obligation as provided in Section 2943 of the Civil Code of California. 25. Covenants, Conditions and Restrictions. The Property is subject to the HOME Agreement between the Beneficiary and the Borrower, that is not attached hereto but is incorporated by reference. Borrower acknowledges receipt of the HOME Agreement and agrees for him/her self/ his/her heirs, successors and assigns to be bound by the same. 27. Warranties of Borrower. Borrower warrants to Beneficiary that: (a) Borrower is a first-time homebuyer; that is, s/he has not owned a home, or had any ownership interest in a home within a three-year (3 year) period immediately preceding the date of this Deed of Trust, and (b) That Borrower's annual gross income does not exceed eighty percent (80%) of the median income for the San Diego metropolitan area, as adjusted for family size, as said median income is determined by the U.S. Department of Housing and Urban Development (HUD), on the later of: 1. The date of initial application to the Beneficiary; or 2. The date of the recordation of this Deed of Trust. (c) That for so long as Borrower owns the Property, Borrower will reside in the Property as Borrower's principal place of residence. Borrower agrees not to sublet, lease or rent out the Property during the term of this Deed of Trust. 28. Subordination. This Deed of Trust is subordinate to any deed of trust or mortgage on the Property made by or held by an institutional lender or investor that is senior in recording priority to this Deed of Trust, and is likewise subordinate to any mortgage or deed of trust which is given in connection with any refinancing of the loan secured by such senior deed of trust or mortgage, provided the loan amount of such refinancing does not exceed the then outstanding balance (plus refinancing and closing costs) of the existing senior loan. Any party, and its successors and assigns, receiving title to the Property through a trustee's sale, a judicial foreclosure sale or deed in lieu of foreclosure of such deed of trust or mortgage, and any conveyance or transfer thereafter, shall receive title free and clear of the provisions of this Deed of Trust. 29. Funds for Taxes and Insurance. The Beneficiary will waive collection of impounds for taxes and assessments (including condominium, planned unit development and planned residential development assessments, if any). 30. Severability. If any provision of this Deed of Trust is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Deed of Trust and the remaining provisions shall continue in full force and effect. 31. Riders to this Security Instrument. if one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. [Check applicable box(es)] ❑ Transfer Rider 0 1-4 Family Rider 0 Other(s) [specify]: ❑ Condominium Rider 0 PUD Rider Page 9 of 12 Initials a 1rl Q (-kit 9218 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Alexis M. GonzaTfez ACKNOWLEDGMENT: State of California ) County of San Diego ) Alberto Cisneros dal On "--\/ �e 4 09 before me, G /\-1 / " 1 I\LUnc— ,/� 1,, a Notary Public, personally appeared I;L 1C, y MGo/13 R1 e�J / ry l ppr,<o C, 5/1 era i VG/ /1(who proved to me on the basis of satisfactory evidence to be the person(ewhose name(g)-subscribed to the within instrument, and acknowledged to me that he/she/thketrexecuted the same in his/her/tl authorized capacity(ieq, end that by his/her/th tgnature(s)-on the instrument the person(S or the entity upon behalf of which the persons acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. N. MALONE Commission • 17361129 Notary Public - California San Diego County Carron. Extires /qx29.2011 f Page 10 of 12 WITNESS my hand and official seal. Signature of Notary Initials U irj ACkf 9219 Legal Description Exhibit A LOT 29 OF PACIFIC VIEW ESTATES CASE NO. S-2004-16, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15556, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MAY 29, 2007. 9220 APN: 551-650-29-00 FTHB #0910-NC05 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 27`h day of May, 2009, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, Security Deed (the "Security Instrument") of the same date given by the undersigned (herein "Borrower") to secure Borrower's Note to the Community Development Commission of the City of National City (herein "CDC"), a corporation organized and existing under the State of California, of the same date and covering the Property described in the Security Instrument and located at: 1206 Fig Court, National City, CA 91950 (Property Address) The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in the Covenants, Conditions & Restrictions (the "Declaration"). The Property is part of a planned unit development known as: Pacific View Estates (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's Interest. PUD COVENANTS In addition to the covenants and agreements made in the Security Instrument, Borrower and CDC further covenant and agree as follows: 1. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. 2. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master' or "blanket" policy insuring the Property which is satisfactory to CDC and which provides insurance coverage in the amounts (including deductible levels) for the periods, and 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 CDC requires insurance, then: (i) CDC waives the provision for the Periodic Payment to CDC of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. (a) What CDC requires as a condition of this waiver can change during the term of the loan. (b) Borrower shall give CDC prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. (c) In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas Page 1 of 2 Initials 09 9221 and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to CDC. CDC shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. 3. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to CDC. 4. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to CDC. Such proceeds shall be applied by CDC to the sums secured by the Security Instrument as provided in Section 11. 5. CDC's Prior Consent. Borrower shall not, except after notice to CDC and with CDC's prior written consent, either partition or subdivide the Property or consent to; (i) the abandonment or termination of the PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain, (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of CDC; (iii) termination of professional management and assumption of self -management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to CDC. 6. Remedies. If Borrower does not pay PUD dues and assessments when due, then CDC may pay them. Any amounts disbursed by CDC under this paragraph F shall become additional debt of Borrower secured by the Security Instrument, Unless Borrower and CDC 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 CDC to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Planned Unit Development Rider. 06 (°L( q- tit ,_CiV7L) Alexis M. Gonzalez Date: Date: e; e Alberto V. Cisneros Page 2 of 2 Initials nn 1C v , Jl c 9222