Wilmington Savings Fund Society, FSB v. Gertie B. Armstrong a/k/a Gertie Berry Armstrong

IN THE DISTRICT COURT WITHIN AND FOR OKLAHOMA COUNTY STATE OF OKLAHOMA WILMINGTON SAVINGS FUND SOCIETY, FSB, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY IN ITS CAPACITY AS OWNER TRUSTEE FOR ONITY LOAN ACQUISITION TRUST 2024-HB2, Plaintiff, -vs- GERTIE B. ARMSTRONG A/K/A GERTIE BERRY ARMSTRONG; GERTIE B. ARMSTRONG A/K/A GERTIE BERRY ARMSTRONG AS TRUSTEE OF THE BERRY REVOCABLE TRUST DATED FEBRUARY 21, 2011; SPOUSE, IF ANY, OF GERTIE B. ARMSTRONG A/K/A GERTIE BERRY ARMSTRONG; CARLTON DEFROE AS POWER OF ATTORNEY FOR GERTIE B. ARMSTRONG A/K/A GERTIE BERRY ARMSTRONG; CARLTON DEFROE; ADVANTAGE EXPERTS SERVICES; UNITED STATES OF AMERICA EX REL SECRETARY OF HOUSING AND URBAN DEVELOPMENT; OCCUPANT(S) OF THE PREMISES; Defendants. PETITION COMES NOW Wilmington Savings Fund Society, FSB, not in its individual capacity but solely in its capacity as Owner Trustee for Onity Loan Acquisition Trust 2024-HB2 (herein: "Plaintiff"), and for its causes of action against the above-named defendants, alleges and states as follows: 1. Plaintiff was at all times and is duly authorized to bring this action. 2. That Gertie B. Armstrong a/k/a Gertie Berry Armstrong (herein: "Borrower"), is obligated on a certain promissory note and mortgage described below. 3. Borrower, for good and valuable consideration, made, executed and delivered to Liberty Home Equity Solutions, Inc., the original lender and Plaintiff's predecessor in interest, a certain written promissory note which is the subject of this action (herein: "Note"). A true and correct copy of the Note is attached hereto as Exhibit "A." a. The Note is dated May 12, 2014; b. The Note has a draw limit of $127,500.00; c. The Note establishes an annual adjustable interest rate commencing at 2.2770%; and d. Plaintiff is entitled to enforce the Note. 4. As part of the same loan transaction, and in order to secure the payment of the loan, Borrower made, executed, and delivered to Mortgage Electronic Registration Systems, Inc., as nominee for Liberty Home Equity Solutions, Inc., the original lender of the Note and Plaintiff's predecessor in interest, a mortgage and conveyed the mortgage to the mortgagee (herein: "Mortgage"). The mortgage encumbers the following property: LOT ZERO IN BLOCK EIGHTY-SEVEN HILLWOOD FARMS ADDITION, OKLAHOMA COUNTY, STATE OF OKLAHOMA, ACCORDING TO THE RECORDERED PLAT THEREOF. (herein: "Property") with a common address 8212 John St, Spencer, OK 73084. A true and correct copy of the Mortgage is attached as Exhibit "B." a. The Mortgage is dated May 12, 2014; b. Gertie B. Armstrong and Gertie B. (Berry) Armstrong, Trustee of the Berry Revocable Trust under trust instrument dated February 21, 2011, signed the Mortgage; and c. The Mortgage was recorded in the Oklahoma County Clerk’s Office on May 20, 2014, at Book 12537, and Page 1085. 5. By virtue of Quitclaim Deed, defendant Carlton Defroe is the present record owner of the subject Property. The Quitclaim Deed was recorded with the Oklahoma County Clerk’s Office on July 13, 2022, at Book 15212, and Page 70. 6. The Borrower is obligated on the subject Note and (has/have) not been released from liability thereon. 7. The Mortgage encumbers the real estate along with all the improvements, easements, appurtenances, and fixtures from the date of the execution to present and hereafter, as well as all replacements and additions to the Property. Mortgage, Ex. B. 8. Plaintiff has standing to enforce this Note under the laws governing contracts; as described by 12A OKLA. STAT. TIT. §3-301; and/or as described by 12A OKLA. STAT. TIT. §1-9-203. Plaintiff has provided the Court with prima facie evidence of standing attached to this Petition. 9. Plaintiff has complied with all the terms and conditions of the Note and Mortgage. 10. Borrower is in default. The default claimed is failure to pay insurance, which is an instance of default under the mortgage loan. The default date is March 25, 2025. The default has not been cured by any available means. 11. The Note and Mortgage provide that if default is made as to any of the terms of the Note and Mortgage by Borrower, or if Borrower fails to perform any of the other obligations described in the Note and Mortgage, that the entire unpaid principal, interest, and all other sums allowed and secured by the Note and Mortgage, shall become due and payable at the option of the Plaintiff. Further, in response to Borrower’s default, Plaintiff is entitled to foreclose the mortgage to recover all amounts due, and to have the Property sold and all proceeds applied to the payment of the entire indebtedness described, allowed, and secured by the Note and Mortgage. 12. Plaintiff has made demand and has accelerated this loan in accordance with the Note, Mortgage, and applicable law. 13. As a necessary measure in the furtherance of enforcing this Note and Mortgage, Plaintiff has incurred costs, which are a further lien upon the Property secured by the Mortgage. 14. The Note and Mortgage provide that the attorney fees incurred by Plaintiff in the enforcement of the Note and Mortgage are the responsibility of Borrower and constitute a further lien on the Property secured by the Mortgage. 15. After consideration of all credits to this loan account, Plaintiff, as of January 13, 2026, is due the sum of $61,725.97 in unpaid principal balance, with $32,875.35 in accrued interest, and accruing interest at a rate of 6.100% per annum thereon, or as adjusted by the Note and Mortgage, from May 12, 2014, until paid; and all other costs of this action including title costs, late fees, NSF fees, escrow advances, corporate advances, property preservation costs, attorney fees, and all costs and fees associated with the furtherance of this action, which is a first, prior, and superior lien on the Property. 16. The Mortgage specifically provides for waiver of the appraisement without further consent of any defendant. 17. Borrower may claim some right, title, lien, estate, encumbrance, claim, assessment, or other interest in the Property by virtue of a possible homestead interest which they may have or claim to have in the Property. 18. With respect to the additional defendants, Plaintiff alleges as follows: a. Additional defendant, Spouse, if any, of Gertie B. Armstrong a/k/a Gertie Berry Armstrong, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of any possible homestead interest which he/she may have or claim to have in or to the Property. b. Additional defendant, Carlton Defroe as Power of Attorney for Gertie B. Armstrong a/k/a Gertie Berry Armstrong, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of any possible homestead interest which he/she may have or claim to have in or to the Property. c. Additional defendant, Carlton Defroe, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of any possible homestead interest which he/she may have or claim to have in or to the Property. d. Additional defendant, Advantage Experts Services, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of a lien recorded at the Oklahoma County Clerk’s Office on February 25, 2025, at Book 16012, and Page 842. e. Additional defendant, United States of America ex rel Secretary of Housing and Urban Development, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of a mortgage recorded at the Oklahoma County Clerk’s Office on May 20, 2014, at Book 12537, and Page 1096. f. Additional defendants, Occupant(s) of the Premises, whose true and correct legal identities are unknown to the Plaintiff at this time, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of occupancy of the Property. g. Plaintiff further asserts that any right, title, lien, estate, encumbrance, claim assessment, or interest claimed by any defendant is subordinate and inferior to the mortgage lien claimed by Plaintiff. Plaintiff respectfully requests that each and every defendant claiming and interest in the Property be required to establish the claimed right herein or be barred forever for further asserting such a claim. WHEREFORE, Plaintiff prays for a judgment in rem against the Property, the Premises, and all defendants in the amount, as of January 13, 2026, of $61,725.97 in unpaid principal balance, with $32,875.35 in accrued interest, and accruing interest at a rate of 6.100% per annum thereon, or as adjusted by the Note and Mortgage, from May 12, 2014, until paid; all abstracting and title . costs incurred by Plaintiff to enforce the Note and Mortgage; all late charges; NSF fees; escrow advances; corporate advances; taxes; insurance premiums; property preservation charges; attorney fees; and all fees and costs associated with this action as allowed by the Note and Mortgage. FURTHER, Plaintiff prays for judgment in rem against Borrower, and the Occupant(s) of the Premises, the Property, the Premises, and all defendants, awarding judgment as follows: All defendants have set out their purported claims to the Property or have waived their rights to do so. Plaintiff's mortgage is declared a first, prior, and superior lien on the Property as to all other claims asserted, and further declaring that Plaintiff is entitled to all amounts set forth herein. That Plaintiff is entitled to foreclose the Mortgage, and the Property shall be sold for cash and that sale shall be had with appraisement. The proceeds of the sale shall be applied first to the payment of the costs incurred herein, and then to the satisfaction of the judgment amount, Mortgage, and lien asserted by Plaintiff. That Plaintiff’s Mortgage lien interest is prior, first, and superior to all other claims of defendants. That all right, title, claim, encumbrance, or interest claimed by any defendant shall be adjudged junior, inferior, and subject to Plaintiff's Mortgage lien. That upon confirmation of the sale, that all and each of the defendants herein, be forever foreclosed, barred, and enjoined from asserting claim of a right, title, estate, encumbrance, or other interest of any nature to the Property. Finally, Plaintiff prays for any and all further relief this Court deems just and equitable. Respectfully submitted, Sally F. Garrison, OBA #18709 Alex S. Rivera, OBA #32269 Amy R. Sullivan, OBA #35938 The Mortgage Law Firm, PLLC 421 NW 13th Street, Suite 300 Oklahoma City, OK 73103 Telephone: (405) 246-0602 Facsimile: (405) 698-0007 [email protected] [email protected] [email protected] Attorneys for Plaintiff THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. ADJUSTABLE-RATE NOTE HOME EQUITY CONVERSION (LIBOR One-Month Index (As Published In The Wall Street Journal)-Rate Caps) Date: May 12, 2014 Property Address: 8212 JOHN ST, SPENCER, OK 73084-4641 1. DEFINITIONS "Borrower" means each person signing at the end of this Note. "Lender" means Liberty Home Equity Solutions, Inc. and its successors and assigns. "Secretary" means the Secretary of Housing and Urban Development or his or her authorized representatives. 2. BORROWER'S PROMISE TO PAY: INTEREST In return for amounts to be advanced by Lender to or for the benefit of Borrower under the terms of a Home Equity Conversion Loan Agreement dated May 12, 2014 ("Loan Agreement"), Borrower promises to pay to the order of Lender a principal amount equal to the sum of all Loan Advances made under the Loan Agreement with interest. All amounts advanced by Lender, plus interest, if not paid earlier, are due and payable on January 01, 2084. Interest will be charged on unpaid principal at the rate of TWO AND 277/1000 percent (2.277%) per year until the full amount of principal has been paid. The interest rate may change in accordance with Paragraph 5 of this Note. Accrued interest shall be added to the principal balance as a Loan Advance at the end of each month. 3. PROMISE TO PAY SECURED Borrower's promise to pay is secured by a mortgage, deed of trust or similar security instrument that is dated the same date as this Note and called the "Security Instrument." That Security Instrument protects the Lender from losses which might result if Borrower defaults under this Note. 4. MANNER OF PAYMENT (A) Time Borrower shall pay all outstanding principal and accrued interest to Lender upon receipt of a notice by Lender requiring immediate payment-in-full, as provided in Paragraph 7 of this Note. (B) Place Payment shall be made at: Liberty Home Equity Solutions, Inc., 10951 White Rock Road, Suite 200, Rancho Cordova, CA 95670 or any such other place as Lender may designate in writing by notice to Borrower. (C) Limitation of Liability Borrower shall have no personal liability for payment of the debt. Lender shall enforce the debt only through sale of the Property covered by the Security Instrument ("Property"). If this Note is assigned to the Secretary, the Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment. 5. INTEREST RATE CHANGES (A) Change Date The interest rate may change on the first day of July, 2014, and on [] that day of each succeeding year [X] the first day of each succeeding month. "Change Date" means each date on which the interest rate could change. (B) The Index Beginning with the first Change Date, the interest rate will be based on an Index. "Index" means the average of interbank offered rates for one month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal on the first business day of each week, which is Monday, or Tuesday if Monday is a non-publishing day. Any particular Index is valid until a new Index is published the following Monday, or Tuesday if Monday is a non-publishing day. "Current Index" means the most recent Index figure that is valid 30 days before the Change Date, rounded to three digits to the right of the decimal point. If the Index (as defined above) is no longer available, Lender will use as a new Index any index prescribed by the Secretary. Lender will give Borrower notice of the new Index. (C) Calculation of Interest Rate Changes Before each Change Date, Lender will calculate a new interest rate by adding a margin of TWO AND 125/1000 percentage points (2.125%) to the current Index. Subject to the limits stated in Paragraph 5(D) of this Note, this amount will be the new interest rate until the next Change Date. (D) Limits on Interest Rate Changes [] The interest rate will never increase or decrease by more than two percentage points (2.0%) on any single Change Date. The interest rate will never be more than five percentage points (5.0%) higher or lower than the initial interest rate stated in Paragraph 2 of this Note. [X] The interest rate will never increase above TWELVE AND 277/1000 percent (12.277%). (E) Notice of Changes Lender will give notice to Borrower of any change in the interest rate. The notice must be given at least 25 days before the new interest rate takes effect, and must set forth (i) the date of the notice, (ii) the Change Date, (iii) the old interest rate, (iv) the new interest rate, (v) the Current Index and the date it was published, (vi) the method of calculating the adjusted interest rate, and (vii) any other information which may be required by law from time to time. (F) Effective Date of Changes A new interest rate calculated in accordance with paragraphs 5(C) and 5(D) of this Note will become effective on the Change Date, unless the Change Date occurs less than 25 days after Lender has given the required notice. If the interest rate calculated in accordance with Paragraphs 5(C) and 5(D) of this Note decreased, but Lender failed to give timely notice of the decrease and applied a higher rate than the rate which should have been stated in a timely notice, then Lender shall recalculate the principal balance owed under this Note so it does not reflect any excessive interest. 6. BORROWER'S RIGHT TO PREPAY A Borrower has the right to pay the debt evidenced by this Note, in whole or in part, without charge or penalty. Any amount of debt prepaid will first be applied to reduce the principal balance of the Second Note described in Paragraph 11 of this Note and then to reduce the principal balance of this Note. All prepayments of the principal balance shall be applied by Lender as follows: First, to that portion of the principal balance representing aggregate payments for mortgage insurance premiums; Second, to that portion of the principal balance representing aggregate payments for servicing fees; Third, to that portion of the principal balance representing accrued interest due under the Note; and Fourth, to the remaining portion of the principal balance. A Borrower may specify whether a prepayment is to be credited to that portion of the principal balance representing monthly payments or the line of credit. If Borrower does not designate which portion of the principal balance is to be prepaid, Lender shall apply any partial prepayments to an existing line of credit or create a new line of credit. 7. IMMEDIATE PAYMENT-IN-FULL (A) Death or Sale Lender may require immediate payment-in-full of all outstanding principal and accrued interest if: (i) A Borrower dies and the Property is not the principal residence of at least one surviving Borrower, or (ii) All of a Borrower's title in the Property (or his or her beneficial interest in a trust owning all or part of the Property) is sold or otherwise transferred and no other Borrower retains title to the Property in fee simple or retains a leasehold under a lease for not less than 99 years which is renewable or a lease having a remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest Borrower or retains a life estate, (or retaining a beneficial interest in a trust with such an interest in the Property). (B) Other Grounds Lender may require immediate payment-in-full of all outstanding principal and accrued interest, upon approval by an authorized representative of the Secretary, if: (i) The Property ceases to be the principal residence of a Borrower for reasons other than death and the Property is not the principal residence of at least one other Borrower; (ii) For a period of longer than 12 consecutive months, a Borrower fails to physically occupy the Property because of physical or mental illness and the Property is not the principal residence of at least one other Borrower; or (iii) An obligation of the Borrower under the Security Instrument is not performed. (C) Payment of Costs and Expenses If Lender has required immediate payment-in-full as described above, the debt enforced through sale of the Property may include costs and expenses, including reasonable and customary attorney's fees, associated with enforcement of this Note to the extent not prohibited by applicable law. Such fees and costs shall bear interest from the date of disbursement at the same rate as the principal of this Note. (D) Trusts Conveyance of a Borrower's interest in the Property to a trust which meets the requirements of the Secretary, or conveyance of a trust's interests in the Property to a Borrower, shall not be considered a conveyance for purposes of this Paragraph. A trust shall not be considered an occupant or be considered as having a principal residence for purposes of this Paragraph. 8. WAIVERS Borrower waives the rights of presentment and notice of dishonor. "Presentment" means the right to require Lender to demand payment of amounts due. "Notice of dishonor" means the right to require Lender to give notice to other persons that amounts due have not been paid. 9. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to Borrower under this Note will be given by delivering it or by mailing it by first class mail to Borrower at the property address above or at a different address if Borrower has given Lender a notice of Borrower's different address. Any notice that must be given to Lender under this Note will be given by first class mail to Lender at the address stated in Paragraph 4(B) or at an different address if Borrower is given a notice of that different address. 10. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully obligated to keep all of the promises made in this Note. Lender may enforce its rights under this Note only through sale of the Property. 11. RELATIONSHIP TO SECOND NOTE (A) Second Note Because Borrower will be required to repay amounts which the Secretary may make to or on behalf of Borrower pursuant to Section 255(1)(1)(A) of the National Housing Act and the Loan Agreement, the Secretary has required Borrower to grant a Second Note to the Secretary. (B) Relationship of Secretary Payments to this Note Payments made by the Secretary shall not be included in the debt due under this Note unless: (i) This Note is assigned to the Secretary; or (ii) The Secretary accepts reimbursements by the Lender for all payments made by the Secretary. If the circumstances described in (i) or (ii) occur, then all payments by the Secretary, including interest on the payments, shall be included in the debt. (C) Effect on Borrower Where there is no assignment or reimbursement as described in (B)(i) or (ii), and the Secretary makes payments to Borrower, then Borrower shall not: (i) Be required to pay amounts owed under this Note until the Secretary has required payment-in-full of all outstanding principal and accrued interest under the Second Note held by the Secretary, notwithstanding anything to the contrary in Paragraph 7 of this Note; or (ii) Be obligated to pay interest or shared appreciation under this Note at any time, whether accrued before or after the payments by the Secretary, and whether or not accrued interest has been included in the principal balance of this Note, notwithstanding anything to the contrary in Paragraphs 2 or 5 of this Note or any Allonge to this Note. 12. SHARED APPRECIATION (If Applicable) If Borrower has executed a Shared Appreciation Allonge, the covenants of the Allonge shall be incorporated into and supplement the covenants of this Note as if the Allonge were a part of this Note. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Note. Bertie B Armstrong (Seal) Borrower - GERTIE B ARMSTRONG Gertie B. (Berry) Armstrong, Trustee Trustee of the BERRY REVOCABLE TRUST under trust instrument dated February 21, 2011 Origination Company: Liberty Home Equity Solutions, Inc. NMLSR ID: Originator: Reynolds, Steve NMLSR ID: Lender: Liberty Home Equity Solutions, Inc. NMLSR ID: DIRECT ENDORSEMENT ALONGE For purposes of further endorsement of the following described note, this Allonge is affixed and becomes a permanent part of said note this 12th day of May, 2014. LOAN #: [REDACTED] SERV #: [REDACTED] Borrower(s): GERTIE B ARMSTRONG Property Address: 8212 JOHN ST, SPENCER, OK 73084-4641 Principal Balance: $127,500.00 Loan Date: May 12, 2014 PAY TO THE ORDER OF WITHOUT RECOURSE Company Name: Liberty Home Equity Solutions, Inc. (Signature) By: ____________________________ (Name) Kelly Smith, Assignment Agent (Title) Accenture Mortgage Cadence Document Center © 9246 04/12 After Recording Return To: Liberty Home Equity Solutions, Inc. 10951 White Rock Road, Suite 200 Rancho Cordova, CA 95670 Prepared By: Liberty Home Equity Solutions, Inc. 10951 White Rock Road, Suite 200 Rancho Cordova, CA 95670 Received MTG Tax : $127.50 Paid: 5/20/2014 11:39:06 AM Rept # 698336 Forrest 'Butch' Freeman Okla Co. Treasurer By PWELLS Deputy 20140520010641430 EMTG 05/20/2014 12:30:36 PM Book:12537 Page:1085 PageCount:11 Filing Fee:$33.00 Doc. Tax:$3.00 State of Oklahoma County of Oklahoma Oklahoma County Clerk Carolynn Caudill Space Above This Line For Recording Data State of Oklahoma RETURN TO: Oklahoma Land Title Services, LLC 310 West Main, Suite 304 Ada, OK 74820 FHA Case Number: [REDACTED] MIN: [REDACTED] ADJUSTABLE RATE HOME EQUITY CONVERSION MORTGAGE THIS MORTGAGE ("Security Instrument") is given on May 12, 2014 ("Date"). The mortgagor is: GERTIE B. (BERRY) ARMSTRONG, TRUSTEE OF THE BERRY REVOCABLE TRUST DATED FEBRUARY 21, 2011 whose address is: 8212 JOHN ST, SPENCER, OK 73084-4641 ("Borrower"). The mortgagee under this Security Instrument is Mortgage Electronic Registration Systems, Inc. ("MERS"). MERS is a separate corporation that is acting solely as nominee for Lender, and Lender's successors and assigns. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (866) 679-MERS. This Security Instrument is given to: Liberty Home Equity Solutions, Inc. which is organized and existing under the laws of THE STATE OF CALIFORNIA, and whose address is: 10951 White Rock Road, Suite 200, Rancho Cordova, CA 95670 ("Lender"). Borrower has agreed to repay to Lender amounts which Lender is obligated to advance, including future advances, under the terms of a Home Equity Conversion Loan Agreement dated the same date as this Security Instrument ("Loan Agreement"). The agreement to repay is evidenced by Borrower's Note dated the same date as this Security Instrument ("Note"). This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest at a rate subject to adjustment, and all renewals, extensions and modifications of the Note, up to a maximum principal amount of ONE HUNDRED TWENTY SEVEN THOUSAND FIVE HUNDRED AND NO/100 (U.S. $127,500.00); (b) the payment of all other sums, with interest, advanced under paragraph 5 to protect the security of this Security Instrument or otherwise due under the terms of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. The full debt, including amounts described in (a), (b), and (c) above, if not paid earlier, is due and payable on January 01, 2084. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in Oklahoma County, Oklahoma: Legal description attached hereto as Exhibit A and by this reference made a part hereof. which has the address of: 8212 JOHN ST, SPENCER, OK 73084-4641 ("Property Address"). TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights, 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 understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument; but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seized 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 and Interest. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note. 2. Payment of Property Charges. Borrower shall pay all property charges consisting of taxes, ground rents, flood and hazard insurance premiums, and special assessments in a timely manner, and shall provide evidence of payment to Lender, unless Lender pays property charges by withholding funds from monthly payments due to the Borrower or by charging such payments to a line of credit as provided for in the Loan Agreement. 3. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire. This insurance shall be maintained in the amounts, to the extent and for the periods required by Lender or the Secretary of Housing and Urban Development ("Secretary"). Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss to Lender instead of to Borrower and Lender jointly. Insurance proceeds shall be applied to restoration or repair of the damaged Property, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied first to the reduction of any indebtedness under a Second Note and Second Security Instrument held by the Secretary on the Property and then to the reduction of the indebtedness under the Note and this Security instrument. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto. In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. 4. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence after the execution of this Security instrument and Borrower (or at least one Borrower, if initially more than one person are Borrowers) shall continue to occupy the Property as Borrower's principal residence for the term of the Security instrument. "Principal residence" shall have the same meaning as in the Loan Agreement. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security instrument is on a leasehold, Borrower shall comply with the provisions of the lease, if Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing. 5. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to the entity which is owed the payment, if failure to pay would adversely affect Lender's interest in the Property. Upon Lender's request, Borrower shall promptly furnish to Lender receipts evidencing these payments. Borrower shall promptly discharge any lien which has priority over this Security instrument in the manner provided in Paragraph 12(c). If Borrower fails to make these payments or the property charges required by Paragraph 2, or fails to perform any other covenants and agreements contained in this Security instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender or MERS may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes, hazard insurance and other items mentioned in Paragraph 2. To protect Lender's security in the Property, Lender shall advance and charge to Borrower all amounts due to the Secretary for the Mortgage Insurance Premium as defined in the Loan Agreement as well as all sums due to the loan servicer for servicing activities as defined in the Loan Agreement. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower as provided for in the Loan Agreement and shall be secured by this Security instrument. 6. Inspection. Lender or its agent may enter on, inspect or make appraisals of the Property in a reasonable manner and at reasonable times provided that Lender shall give the Borrower notice prior to any inspection or appraisal specifying a purpose for the inspection or appraisal which must be related to Lender's interest in the Property. If the Property is vacant or abandoned or the loan is in default, Lender may take reasonable action to protect and preserve such vacant or abandoned Property without notice to the Borrower. 7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation, or other taking of any part of the Property, or for conveyance in place of condemnation shall be paid to Lender. The proceeds shall be applied first to the reduction of any indebtedness under a Second Note and Second Security Instrument held by the Secretary on the Property, and then to the reduction of the indebtedness under the Note and this Security Instrument. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security instrument shall be paid to the entity legally entitled thereto. 8. Fees. Lender may collect fees and charges authorized by the Secretary. 9. Grounds for Acceleration of Debt. (a) Due and Payable. Lender may require immediate payment-in-full of all sums secured by this Security instrument if: (i) A Borrower dies and the Property is not the principal residence of at least one surviving Borrower; or (ii) All of a Borrower’s title in the Property (or his or her beneficial interest in a trust owning all or part of the Property) is sold or otherwise transferred and no other Borrower retains title to the Property in fee simple or retains a leasehold under a lease for not less than 99 years which is renewable or a lease having a remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest Borrower or retains a life estate, (or retaining a beneficial interest in a trust with such an interest in the Property). (b) Due and Payable with Secretary Approval. Lender may require immediate payment-in-full of all sums secured by this Security instrument, upon approval of the Secretary, if: (i) The Property ceases to be the principal residence of a Borrower for reasons other than death and the Property is not the principal residence of at least one other Borrower; or (ii) For a period of longer than 12 consecutive months, a Borrower fails to occupy the Property because of physical or mental illness and the Property is not the principal residence of at least one other Borrower; or (iii) An obligation of the Borrower under this Security instrument is not performed. (c) Notice to Lender. Borrower shall notify Lender whenever any of the events listed in this Paragraph 9 (a)(ii) and (b) occur. (d) Notice to Secretary and Borrower. Lender shall notify the Secretary and Borrower whenever the loan becomes due and payable under Paragraph 9 (a)(ii) and (b). Lender shall not have the right to commence foreclosure until Borrower has had 30 days after notice to either; (i) Correct the matter which resulted in the Security instrument coming due and payable; or (ii) Pay the balance in full; or (iii) Sell the Property for the lesser of the balance or 95% of the appraised value and apply the net proceeds of the sale toward the balance; or (iv) Provide the Lender with a deed-in-lieu of foreclosure. (e) Trusts. Conveyance of a Borrower's interest in the Property to a trust which meets the requirements of the Secretary, or conveyance of a trust's interests in the Property to a Borrower, shall not be considered a conveyance for purposes of this Paragraph 9. A trust shall not be considered an occupant or be considered as having a principal residence for purposes of this Paragraph 9. (f) Mortgage Not Insured. Borrower agrees that should this Security Instrument and the Note not be eligible for insurance under the National Housing Act within 60 days from the date hereof, Lender may, at its option, require immediate payment-in-full of all sums secured by this Security Instrument. A written statement of any authorized agent of the Secretary dated subsequent to 60 days from the date hereof, declining to insure this Security Instrument and the Note, shall be deemed conclusive proof of such ineligibility. Notwithstanding the foregoing, this option may not be exercised by Lender when the unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the Secretary. 10. No Deficiency Judgments. Borrower shall have no personal liability for payment of the debt secured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be permitted to obtain a deficiency judgment against Borrower if the Security Instrument is foreclosed. If this Security Instrument is assigned to the Secretary upon demand by the Secretary, Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment. 11. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate payment-in-full. This right applies even after foreclosure proceedings are instituted. To reinstate this Security Instrument, Borrower shall correct the condition which resulted in the requirement for immediate payment-in-full. Foreclosure costs and reasonable and customary attorney's fees and expenses properly associated with the foreclosure proceeding shall be added to the principal balance. Upon reinstatement by Borrower, this Security Instrument and the obligations that it secures shall remain in effect as if Lender had not required immediate payment-in-full. However, Lender is not required to permit reinstatement if: (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings within two years immediately preceding the commencement of a current foreclosure proceeding, (ii) reinstatement will preclude foreclosure on different grounds in the future, or (iii) reinstatement will adversely affect the priority of the Security Instrument. 12. Lien Status. (a) Modification. Borrower agrees to extend this Security Instrument in accordance with this Paragraph 12(a). If Lender determines that the original lien status of the Security Instrument is jeopardized under state law (including but not limited to situations where the amount secured by the Security Instrument equals or exceeds the maximum principal amount stated or the maximum period under which loan advances retain the same lien priority initially granted (lo an advances has expired) and state law permits the original lien status to be maintained for future loan advances through the execution and recordation of one or more documents, then Lender shall obtain title evidence at Borrower's expense. If the title evidence indicates that the property is not encumbered by any liens (except this Security Instrument, the Second Security Instrument described in Paragraph 13(a) and any subordinate liens that the Lender determines will also be subordinate to any future loan advances), Lender shall request the Borrower to execute any documents necessary to protect the lien status of future loan advances. Borrower agrees to execute such documents. If state law does not permit the original lien status to be extended to future loan advances, Borrower will be deemed to have failed to have performed an obligation under this Security Instrument. (b) Tax Deferral Programs. Borrower shall not participate in a real estate tax deferral program, if any liens created by the tax deferral are not subordinate to this Security Instrument. (c) Prior Liens. 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; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to all amounts secured by this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one more of the actions set forth above within 10 days of the giving of notice. 13. Relationship to Second Security Instrument. (a) Second Security Instrument. In order to secure payments which the Secretary may make to or on behalf of Borrower pursuant to Section 255(i)(1)(A) of the National Housing Act and the Loan Agreement, the Secretary has required Borrower to execute a Second Note and a Second Security Instrument on the Property. (b) Relationship of First and Second Security Instruments. Payments made by the Secretary shall not be included in the debt under the Note unless: (i) This Security Instrument is assigned to the Secretary; or (ii) The Secretary accepts reimbursement by the Lender for all payments made by the Secretary. If the circumstances described in (i) or (ii) occur, then all payments by the Secretary, including interest on the payments, but excluding late charges paid by the Secretary, shall be included in the debt under the Note. (c) Effect on Borrower. Where there is no assignment or reimbursement as described in (b)(i) or (ii) and the Secretary makes payments to Borrower, then Borrower shall not: (i) Be required to pay amounts owed under the Note, or pay any rents and revenues of the Property under Paragraph 19 to Lender or a receiver of the Property, until the Secretary has required payment-in-full of all outstanding principal and accrued interest under the Second Note; or (ii) Be obligated to pay interest or shared appreciation under the Note at any time, whether accrued before or after the payments by the Secretary, and whether or not accrued interest has been included in the principal balance under the Note. (d) No Duty of the Secretary. The Secretary has no duty to Lender to enforce covenants of the Second Security Instrument or to take actions to preserve the value of the Property, even though Lender may be unable to collect amounts owed under the Note because of restrictions in this Paragraph 13. 14. Forbearance by Lender Not a Waiver. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 15. Successors and Assigns Bound; Joint and Several Liability. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender. Borrower may not assign any rights or obligations under this Security Instrument or under the Note, except to a trust that meets the requirements of the Secretary. Borrower's covenants and agreements shall be joint and several. 16. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address all Borrowers jointly designate. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any address Lender designates by notice to Borrower. Any notices provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this Paragraph 16. 17. Governing Law; Severability. This Security Instrument shall be governed by Federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 18. Borrower's Copy. Borrower shall be given one conformed copy of the Note and this Security Instrument. NON-UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 19. Assignment of Rents. Borrower unconditionally assigns and transfers to Lender all the rents and revenues of the Property. Borrower authorizes Lender or Lender's agents to collect the rents and revenues and hereby directs each tenant of the Property to pay the rents to Lender or Lender's agents. However, prior to Lender's notice to Borrower of Borrower's breach of any covenant or agreement in the Security Instrument, Borrower shall collect and receive all rents and revenues of the Property as trustee for the benefit of Lender and Borrower. This assignment of rents constitutes an absolute assignment and not an assignment for additional security only. If Lender gives notice of breach to Borrower: (a) all rents received by Borrower shall be held by Borrower as trustee for benefit of Lender only, to be applied to the sums secured by this Security Instrument: (b) Lender shall be entitled to collect and receive all of the rents of the Property; and (c) each tenant of the Property shall pay all rents due and unpaid to Lender or Lender's agent on Lender's written demand to the tenant. Borrower has not executed any prior assignment of the rents and has not and will not perform any act that would prevent Lender from exercising its rights under this Paragraph 19. Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice of breach to Borrower. However, Lender or a judicially appointed receiver may do so at any time there is a breach. Any application of rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment of rents of the Property shall terminate when the debt secured by this Security Instrument is paid in full. 20. Foreclosure Procedure. If Lender requires immediate payment in full under Paragraph 9, Lender may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all costs and expenses incurred in pursuing the remedies provided in this Paragraph 20, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice in the manner required by Applicable Law to Borrower and any other persons prescribed by Applicable Law. Lender shall also publish the notice of sale, and the Property shall be sold, as prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the manner prescribed by Applicable Law. 21. Lien Priority. The full amount secured by this Security Instrument shall have the same priority over any other liens on the Property as if the full amount had been disbursed on the date the initial disbursement was made, regardless of the actual date of any disbursement. The amount secured by this Security Instrument shall include all direct payments by Lender to Borrower and all other loan advances permitted by this Security Instrument for any purpose. This lien priority shall apply notwithstanding any State constitution, law or regulation, except that this lien priority shall not affect the priority of any liens for unpaid State or local governmental unit special assessments or taxes. 22. Adjustable Rate Feature. Under the Note, the initial stated interest rate of 2.277% which accrues on the principal balance ("Initial Interest Rate") is subject to change, as described below. When the interest rate changes, the new adjusted interest rate will be applied to the total outstanding principal balance. Each adjustment to the interest rate will be based upon the interbank offered rates for one month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published on the first business day of each week in the "Money Rates" section of The Wall Street Journal("Index") plus a margin. If the Index is no longer available, Lender will use as a new index any index prescribed by the Secretary. Lender will give Borrower notice of the new index. Lender will perform the calculations described below to determine the new adjusted interest rate. The interest rate may change on the first day of July, 2014, and on [ ] that day of each succeeding year [X] the first day of each succeeding month ("Change Date") until the loan is paid in full. The value of the Index will be determined, using the most recent index figure available thirty (30) days before the Change Date ("Current Index"). Before each Change Date, the new interest rate will be calculated by adding a margin to the Current Index. The sum of the margin plus the Current Index. Index will be called the ("Calculated Interest Rate") for each Change Date. The Calculated Interest Rate will be compared to the Interest rate in effect immediately prior to the current Change Date ("the Existing Interest Rate"). [ ] Annually Adjusting Variable Rate Feature The Calculated Interest Rate cannot be more than 2.0% higher or lower than the Existing Interest Rate, nor can it be more than 5.0% higher or lower than the Initial Interest Rate [X] Monthly Adjusting Variable Rate Feature The Calculated Interest Rate will never increase above TWELVE AND 277/1000 Percent (12.277 %). The Calculated Interest Rate will be adjusted if necessary to comply with those rate limitation(s) and will be in effect until the next Change Date. At any Change Date, if the Calculated Interest Rate equals the Existing Interest Rate, the interest rate will not change. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs unless Applicable Law provides otherwise. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waiver of Appraisement. Appraisalment of the Property is waived or not waived at Lender's option, which shall be exercised before or at the time judgment is entered in any foreclosure. 25. Notice of Power of Sale. A power of sale has been granted in this Security Instrument. A power of sale may allow the Lender to take the Property and sell it without going to court in a foreclosure action upon default by Borrower under this Security Instrument. 26. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants 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).] [ ] Condominium Rider [ ] Planned Unit Development Rider [ ] Shared Appreciation Rider [ ] Other [Specify] 27. Nominee Capacity of MERS. MERS serves as mortgagee of record and secured party solely as nominee, in an administrative capacity, for Lender and its successors and assigns and holds legal title to the interests granted, assigned, and transferred herein. All payments or deposits with respect to the Secured Obligations shall be made to Lender, all advances under the Loan Documents shall be made by Lender, and all consents, approvals, or other determinations required or permitted of Mortgagee herein shall be made by Lender. MERS shall at all times comply with the instructions of Lender and its successors and assigns. If necessary to comply with law or custom, MERS (for the benefit of Lender and its successors and assigns) may be directed by Lender to exercise any or all of those interests, including without limitation, the right to foreclose and sell the Property, and take any action required of Lender, including without limitation, a release, discharge or reconveyance of this Mortgage. Subject to the foregoing, all references herein to "Mortgagee" shall include Lender and its successors and assigns. 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. Borrower - GERTIE B ARMSTRONG GERTIE B. (BERRY) ARMSTRONG, Trustee of the BERRY REVOCABLE TRUST under trust instrument dated February 21, 2011 State of Oklahoma County of Okmulgee This instrument was acknowledged before me on (Date) May 12, 2014 by Gertie B Berry Armstrong Signature of notarial officer Notary (Title or rank) My Commission expires: December 3, 2016 Origination Company: Liberty Home Equity Solutions, Inc. NMLS ID: [ ] Originator: Reynolds, Steve NMLS ID: [ ] Lender: Liberty Home Equity Solutions, Inc. NMLS ID: [ ] [Seal] Exhibit "A" Lot Zero (0), in Block Eighty-seven (87), Hillwood Farms Addition, Oklahoma County, State of Oklahoma, according to the recorded plat thereof.