GITSIT Solutions, LLC v. Unknown Successors of Tonice Caudill, Deceased

IN THE DISTRICT COURT WITHIN AND FOR DELAWARE COUNTY STATE OF OKLAHOMA GITSIT SOLUTIONS, LLC, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY IN ITS CAPACITY AS SEPARATE TRUSTEE OF GV TRUST 2026-1 Plaintiff, vs. UNKNOWN SUCCESSORS OF TONICE CAUDILL, DECEASED SPOUSE OF TONICE CAUDILL OCCUPANTS OF THE PREMISES Defendant(s) No: CJ-26-70 PETITION Comes now the Plaintiff, GITSIT Solutions, LLC, not in its individual capacity but solely in its capacity as Separate Trustee of GV Trust 2026-1, and for its cause of action against the Defendants above named, alleges and states: 1. That the Plaintiff was all times hereinafter mentioned, and now is duly organized, existing and authorized to bring this action. 2. That the Defendant, Unknown Successors of Tonice Caudill, Deceased, was a single person at the time the mortgage sued upon was executed and remained a single person until her death. 3. That the original maker(s) for a good and valuable consideration, made, executed and delivered to the Payee, a certain written promissory note; a true copy of said note and endorsements thereon, if any, is hereto attached, marked Exhibit "A", and made a part hereof by reference. 4. That as a part of the same transaction and to secure the payment of the note above described and the indebtedness represented thereby, the owners of the real estate hereinafter described, made, executed and delivered to the Payee of the note, a certain real estate mortgage in writing encumbering the following real property, to -wit: A tract of land located in the NW/4 NW/4 SW/4 of Section 20, Township 24 North, Range 24 East, more particularly described as follows, to wit: Beginning 210 feet South of the NW corner of the said NW/4 NW/4 SW/4; thence South 208.71 feet; thence East 208.71 feet; thence North 208.71 feet; thence West 208.71 feet to the point and place of beginning, Delaware County, Oklahoma. 5. That said mortgage was duly executed and acknowledged according to law, the mortgage tax duly paid thereon, and was recorded on September 24, 2007 in Book 1788 at Page 715 in the office of the County Clerk of Delaware County, Oklahoma, a true and correct copy of which is attached hereto as Exhibit “B” and the record thereof is incorporated herein by reference. That Plaintiff was the person entitled to enforce the Note on and before the date this action was filed. That Plaintiff has complied with all the terms, conditions precedent and provisions of said note and mortgage, and is duly empowered to bring this suit. 6. That said note and mortgage provided that if default be made in the payment of any of the monthly installments, or on failure or neglect to keep or perform any of the other conditions covenants of the mortgage, that the entire principal sum and accrued interest, together with all other sums secured by said mortgage, shall at one become due and payable, at the option of the person entitled to enforce the Note, and the person entitled to enforce the Note shall be entitled to foreclose said mortgage and recover the unpaid principal thereon and all expenditures of the mortgagee made thereunder, with interest thereon, and to have said premises sold and the proceeds applied to the payment of the indebtedness secured thereby, together with attorney fees and all costs. 7. The default has been made upon said note and mortgage in that the borrower is deceased. 8. That preliminary to the bringing of this action, and as a necessary expense thereof, this Plaintiff caused title work to be extended and certified to date at a cost which charge is a further lien secured by the Mortgage of the Plaintiff herein sued upon. 9. That said note and mortgage provide that in case of a foreclosure of said mortgage as often as any proceedings shall be taken to foreclose the same, the maker(s) will pay an attorney’s fee as therein provided, and that the same shall be further charge and lien on said premises. 10. That after allowing all just credits there is due to Plaintiff on said note and mortgage the sum of: <table> <tr> <th>Reason:</th> <th>Amount:</th> </tr> <tr> <td>Unpaid Principal Balance</td> <td>$128,344.25</td> </tr> <tr> <td>Date of Default</td> <td>November 4, 2023</td> </tr> <tr> <td>Interest Due From</td> <td>February 28, 2026</td> </tr> <tr> <td>Interest Rate(s)</td> <td>4.61000 %</td> </tr> </table> *or as adjusted by the Note and Mortgage including all advancements of Plaintiff, if any, for taxes, insurance premiums, or expenses necessary for the preservation of the subject property, all costs of this action; reasonable attorney’s fees and costs as the Court may allow, for which amounts said mortgage is a first, prior and superior lien upon the real estate and premises above described. 11. That the mortgage specifically provides that appraisement of the property is expressly waived or not waived at the option of the mortgagee. 12. That Plaintiff is informed and believes and so alleges that Tonice Caudill, a single person, died intestate on or about November 4, 2023, a resident of Delaware County, Oklahoma; that the Plaintiff is unable to determine or ascertain the names of any known heirs of said decedent. That no probate proceedings or other determination of the death of the decedent have been commenced nor has a determination been made of the heirs of said decedent. That other than the Defendants, The Unknown Successors of Tonice Caudill, Deceased, no other person or persons have any right, title or interest in and to the real estate and premises herein sued upon. 13. That the Defendant, Spouse of Tonice Caudill, may claim a homestead interest in the subject property. 14. That the Defendant, Occupants of the Premises, may claim some right, title lien, estate, encumbrance, claim, assessment, or interest in and to the real property involved herein as occupant. Plaintiff prays the said Defendants be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the property or be forever barred from claiming any right in and to the property. Plaintiff states, however, that any right, title, or interest claimed by each Defendant is subordinate and inferior to the mortgage lien claimed by the Plaintiff, and Plaintiff prays the said Defendants be summoned in this case and be required to set up in this suit any right, title or interest claimed in and to the property to be forever barred from claiming any right in and to the property. WHEREFORE, Plaintiff prays for judgment in rem against the subject property, in the sum listed above in paragraph 10 and for a further judgment in rem against all said Defendants adjudging: That all of said Defendants to require to appear and set forth any right, title, claim or interest which they have, or may have, in and to the property; and, That the mortgage be foreclosed and that the same be declared a valid first, prior and superior lien upon the property, for and in the amounts above set forth and ordering said real estate and premises sold, for cash, with or without appraisement, as the Plaintiff shall elect, and as provided in said mortgage and by law, subject to unpaid taxes, advancements by Plaintiff for taxes, insurance premiums, or expenses necessary for the preservation of the subject property, if any, to satisfy said judgment, and that the proceeds arising therefrom be applied to the payment of the costs herein, and the payments and satisfaction of the judgment, mortgage and lien of this Plaintiff, and that the surplus, if any, be paid into Court to abide the further order of the Court; and, That all right, title and interest of said Defendants, and each of them, if any, in and to the property be adjudged subject, junior and inferior to the mortgage lien and judgment of this Plaintiff, and that upon confirmation of such sale, the Defendants herein, and each of them, and all persons claiming by, through or under them since the commencement of this action, be forever barred, foreclosed and enjoined from asserting or claiming any right, title, interest, estate or equity of redemption in or to the property, or any part thereof; and, That this Plaintiff have such other and further relief as may be just and equitable. Don Timberlake - #9021 Kim S. Jenkins - # 32809 Gina D. Knight - # 12996 Chynna Scruggs - # 32663 BAER & TIMBERLAKE, P.C. 5901 N. Western, Suite 300 Oklahoma City, OK 73118 Telephone: (405) 842-7722 Email: [email protected] COUNTY: OKLAHOMA STATE: OKLAHOMA The above, being first duly sworn, upon oath deposes and says: That he/she is one of the attorneys for the Plaintiff in the above titled action; that he/she prepared the above and foregoing pleading, knows the contents thereof, and that to the best of his/her knowledge and belief, the matters set forth are true and correct. I state under penalty of perjury on this 5th day of March, 2026, under the laws of Oklahoma that the foregoing is true and correct. Don Timberlake - # 9021 Kim S. Jenkins - # 32809 Gina D. Knight - # 12996 Chynna Scruggs - # 32663 BAER & TIMBERLAKE, P.C. THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. ADJUSTABLE RATE NOTE (HOME EQUITY CONVERSION) STATE OF OKLAHOMA September 12, 2007 PROPERTY ADDRESS 32550 South 620 Road Grove, Oklahoma 74344 1 DEFINITIONS Borrower means each person signing at the end of this Note 'Lender' means Urban Financial Group, 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 up to a maximum principal amount of One Hundred Fifty Thousand and 00/100 Dollars ($150,000 00) to or for the benefit of Borrower under the terms of a Home Equity Conversion Loan Agreement dated September 12, 2007 ('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 July 10, 2007 Interest will be charged on unpaid principal at the rate of Five and 27/100 percent (5.270%) per year until the full amount of principal has been paid The interest rate may change in accordance with Paragraph 5 of this Note At the end of each month accrued interest shall be added to and made part of the principal balance as a Loan Advance and shall likewise thereafter bear interest 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' The 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 9175 S Yale Avenue, Suite 220, Tulsa, OK 74137 or any such other place as Lender may designate in writing by notice to Borrower (C) Limitations 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 assignment 5 INTEREST RATE CHANGES (A) Change Date The interest rate may change on the first day of December 2007 and on ___ that day of each succeeding year or ____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 weekly average yield on United States Treasury Securities adjusted to a constant maturity of one year as made available by the Federal Reserve Board "Current Index" means the most recent index figure available 30 days before the Change Date 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 1 00 percentage points 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 Annual 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 mutual interest rate stated in Paragraph 2 of this Note Monthly The interest rate will never increase above 15 270% (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 receiving monthly payments under the Loan Agreement 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 created 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 (a) title to the Property in fee simple (b) 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 retaining a beneficial interest in a trust with such an interest in the Property) or (c) a life estate 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 twelve (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 attorneys' 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 interest 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 a 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(i)(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 made 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. BY SIGNING BELOW Borrower accepts and agrees to the terms and covenants contained in this Note Dated ________________ Tanice Caudill _________________________ /s/ Tanice J. Caudill ____________________________ DIRECT ENDORSEMENT ALLONGE For purposes of further endorsement of the following described Note, this Allonge is affixed and becomes a permanent part of said Note on September 12, 2007 LOAN NUMBER FHA CASE NUMBER BORROWER(S) Tonice Caudill PROPERTY ADDRESS 32550 South 620 Road Grove, Oklahoma 74344 NOTE/LOAN AMOUNT $150,000 00 NOTE/LOAN DATE September 12, 2007 PAY TO THE ORDER OF Bank of America, N A , a National Banking Association WITHOUT RE COURSE COMPANY NAME Urban Financial Group, Inc BY (Print Name) (Randy Anderson) (Signature) - Authorized Corporate Signor Only (Vice President, Ops) (Title of Corporate Signor) ALLONGE TO NOTE This endorsement is a permanent part of the Note in the amount of $150,000 00 NOTE DATE 9/12/2007 BORROWER NAME TONICE CAUDILL PROPERTY 32550 SOUTH 620 ROAD, GROVE, OK 74344 PAY TO THE ORDER OF WITHOUT RECOURSE BANK OF AMERICA, N A , BY ITS ATTORNEY-IN-FACT, PHH MORTGAGE CORPORATION [signature] Signer Farid Farghali Title Senior Servicing Operations Specialist TREASURER'S ENDORSEMENT I hereby certify that I received $150,000 Mtg. tax, $29.00 Cert. fee and issued receipt No. SS8161 therefore in payment of mortgage tax on the within mortgage dated this 24th day of September 2007 Mary Jane Law, County Treasurer By [signature] Deputy PLEASE MAIL TO: XPRESS TITLE & CLOSING SERVICES 9175 S. YALE, SUITE 103 TULSA, OK 74137 HOME EQUITY CONVERSION MORTGAGE State of Oklahoma FHA Case Number: [blank] ADJUSTABLE RATE THIS MORTGAGE ("Security Instrument") is given September 12, 2007. The Mortgagor is TONICE CAUDILL, a single person, whose address is 32550 South 620 Road, Grove, Oklahoma 74344 ("Borrower"). This Security Instrument is given to Urban Financial Group, Inc., which is organized and existing under the laws of the Commonwealth of Oklahoma, and whose address is 9175 S. Yale Avenue, Suite 220, Tulsa, OK 74137 ("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 U.S. One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00); (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 July 10, 2087. For this purpose, Borrower does hereby mortgage, warrant, grant and convey to Lender, with power of sale, the following described property located in DELAWARE County, Oklahoma: The real property located at the address 32550 South 620 Road, Grove, Oklahoma 74344, in the county of DELAWARE, state of Oklahoma, described more fully on Exhibit A attached to this Mortgage. 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 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. 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. TLC 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 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) and 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 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 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 ("MIP") as defined in the Loan Agreement as well as all sums due to the loan servicer for servicing activities ("Servicing Fee") as defined in the Loan Agreement. Any amounts disbursed by Lender under this Paragraph are obligatory and 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 an no other Borrower retains (a) title to the Property in fee simple, (b) a leasehold under a lease for 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 (c) a life estate in the Property (or 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 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; or (ii) For a period of longer than twelve (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 this Security Instrument is not performed. (c) Notice to Lender. Borrower shall notify Lender whenever any of the events listed in subparagraphs (a) and (b) of this Paragraph 9(a)(ii) or (b) occur. (d) Notice to Secretary and Borrower. Lender shall notify the Secretary and Borrower whenever the loan becomes due and payable under this Paragraph 9(a)(ii) and (b). Lender shall not have the right to commence foreclosure until Borrower has had thirty (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. 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 eight (8) months 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 eight (8) months 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 attorneys' fees and expenses properly associated with a 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 (2) 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. First 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 to loan 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 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 or more of the actions set forth above within ten (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, unless otherwise provided by the Secretary, the Secretary has required Borrower to execute a Second Note and 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 notice 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 further 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 of sale to Borrower in the manner required 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 Five and 27/100 percent (5.270%) which accrues on the unpaid 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 weekly average yield on United States Treasury Securities adjusted to a constant maturity of one year, ("Index") plus a margin. The Index is published in the Federal Reserve Bulletin and made available by the United States Treasury Department in Statistical Release H.15 (519). If the Index is no longer available, Lender will be required to use any index prescribed by the Department of Housing and Urban Development. The new index will have a historical movement substantially similar to the original index, and the new index and margin will result in an annual percentage rate that is substantially similar to the rate in effect at the time the original index becomes unavailable. Lender will perform the calculations described below to determine the new adjusted interest rate. The interest rate may change on December 2007, and on the first day of __ and on that day of each succeeding year, or _X_ the first day of each succeeding month (Change Date) until the loan is repaid 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 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 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_ Monthly Adjusting Variable Rate Feature - The Calculated Interest Rate will never increase above 15.270%. The Calculated Interest Rate will be adjusted if necessary to comply with the rate limitation(s) described above 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 without charge to Borrower. Borrower shall pay any recordation costs unless applicable law provides otherwise. 24. Waiver of Appraisal. Appraisement 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. Assumption Fee. If there is an assumption of this loan, Lender may charge an assumption fee of U.S. $____________________ 26. Obligatory Loan Advances. Lender's responsibility to make Loan Advances under the terms of the Loan Agreement, including Loan Advances of principal to Borrower as well as Loan Advances of interest, MIP, Servicing Fees, and other charges shall be obligatory. 27. 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 in a part of this Security Instrument. [Check applicable box(es).] <table> <tr> <th>Condominium Rider</th> <th>PUD Rider</th> </tr> <tr> <td>Shared Appreciation Rider</td> <td>Other</td> </tr> </table> NOTICE TO BORROWER 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Witnesses: ____________________________ __________________ Signature TONICE CAUDILL STATE OF Oklahoma ____________________________ [Space Above This Line For Recording Data] ____________________________ Before me Breonna B Barnwell Delaware County ss: county and state, on September 22, 2007, personally appeared Tonice L Caudill, a single female known to be the identical person(s) who executed the within and foregoing instrument, and acknowledged to me that he/she/they executed the same as his/her/their free and voluntary act and deed for the uses and purposes therein set forth. Exhibit B I-2007-010721 Book 1788 Pg: 723 09/24/2007 2:30 pm Pg 0715-0723 Fee: $29.00 Doc: $0.00 Carol Forther - Delaware County Clerk State of Oklahoma EXHIBIT A Exhibit A to the Mortgage given on September 12, 2007, by TONICE CAUDILL, a single person ("Borrower") to Urban Financial Group, Inc. ("Lender"). The Property is located in the county of DELAWARE, state of Oklahoma, described as follows: Description of Property A tract of land located in the NW/4 NW/4 SW/4 of Section 20, Township 24 North, Range 24 East, more particularly described as follows, to-wit: Beginning 210 feet South of the NW corner of the said NW/4 NW/4 SW/4; thence South 208.71 feet; thence East 208.71 feet; thence North 208.71 feet; thence West 208.71 feet to the point and place of beginning, Delaware County, Oklahoma