HomeMy WebLinkAbout2009 CON (DEED OF TRUST) Roque and Maria Blas - 208 Mindanao StreetRECORDED AT '3T ;-ECUEST OF
CHICAGO TITLE CCMPANY
SUBDIVISION DEPT.
WHEN RECORDED PLEASE MAIL TO:
The Community Development Commission
Of the City of National City,lnc.
1243 National City Boulevard
National Cit , CA 91950
APN: 551-650-43-00
NOTICE:
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JUN 25, 2009 2:41 PM
OFFICIAL RECORDS
SAN DIEGO COUNT' RECORDERS OFFICE
DAVID L. BUTLER. COUNTY RECORDER
FEES: 0.00
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PAGES:
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FTHB# 0909-NC04
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), Roque J. Blas and
Maria L/. Blas, Husband and Wife 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, Inc.
(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 208 Mindanao Street, 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, Six Hundred Forty Dollars and 00/Cents ($158,640.00);
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 ($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 payment of all other
"THIS IS A SECOND DEED OF TRUST, SUBSEQUENT
g0 e, FIRST RECORDING CONCURRENTLY HEREWITH"
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sums with interest thereon, advanced in accordance herewith to protect the security of 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 Beneficiarys 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.
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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 Beneficiarys 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.
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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 manner, 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, Severabilitv. 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.
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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
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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 attorneys' 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.
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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
Beneficiarys 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
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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
attomeys 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.
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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 ❑ 1-4 Family Rider ❑ Other(s) [specify]:
❑ Condominium Rider ❑x PUD Rider
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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.
Roque J. Bias
ACKNOWLEDGMENT:
State of California )
County of San Diego )
Maria U. Bias
C.
On J'J n 3 at x1 before me, E • r • 1 (a L0 Cl t , a Notary Public,
personally appeared Q- S . ! /j 5 q , j Pi€ A C, 81 FS who proved to
me on the basis of satisfactory evidence to be the personwhose name(subscribed to the within
instrument, and acknowledged to me that he/she/the. executed the same in his/her/tom authorized
capacity(i and that by his/her/theiasignatureO on the instrument the personals , 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.
E. N. MALONE
Commission # 1735829
Notary Public - California
San Diego County
MyCamm. 29, 2011
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WITNESS my hand and official seal.
Signature of Notary
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;
Legal Description
Exhibit A
8354
LOT 43 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.
APN: 551-650-43-00 FTHB #0909-NC04
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:
208 Mindanao Street, 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
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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.
Date:
(.06 ®&--cai
Roque J. Blas
Date: 66 D
Maria L/ Blas
C.
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