SERVIS ONE, INC DBA BSI FINANCIAL SERVICES v. NATHALIE M. PHARR

IN THE DISTRICT COURT WITHIN AND FOR PITTSBURG COUNTY STATE OF OKLAHOMA SERVIS ONE, INC DBA BSI FINANCIAL SERVICES, Plaintiff, -vs- NATHALIE M. PHARR; LEIGHTON D. PHARR, JR.; NATIONSTAR MORTGAGE LLC; CALVARY PORTFOLIO SERVICES, LLC A/K/A CALVARY SPV I LLC; DOMESTIC BANK; OCCUPANT(S) OF THE PREMISES; Defendants. CASE NO. CJ-26-32 PETITION COMES NOW SERVIS ONE, INC DBA BSI FINANCIAL SERVICES (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 Nathalie M. Pharr and Leighton D. Pharr, Jr. (herein: "Borrowers"), who were at all times married, are obligated on a certain promissory note and mortgage described below. 3. Borrowers, for good and valuable consideration, made, executed, and delivered to Domestic Bank, 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 December 14, 2007; b. The Note is made in the amount of $13,800.00; c. The Note establishes an annual fixed interest rate of 10.950%; and d. The Note is indorsed in blank. 4. As part of the same loan transaction, and in order to secure the payment of the loan made, Borrowers made, executed, and delivered to Domestic Bank, 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 Five (5), Block Three (3), Mockingbird Hill addition to the City of McAlester, Pittsburg County, State of Oklahoma. (herein: “Property”) with a common address 1809 Cardinal Ln, McAlester, OK 74501. A true and correct copy of the Mortgage is attached as Exhibit “B.” a. The Mortgage is dated December 14, 2007; b. Natalie M. Pharr and Leighton D. Pharr, Jr., signed the Mortgage; and c. The Mortgage was recorded in the Pittsburg County Clerk’s Office on May 29, 2008, at Book 1609, and Page 554. 5. By virtue of Warranty Deed, Borrowers are the present record owners of the subject Property. The Warranty Deed was recorded with the Pittsburg County Clerk’s Office on August 27, 2007, at Book 1544, and Page 112. 6. The Borrowers are obligated on the subject Note and 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 is entitled to enforce the Note in accordance with OKLA. STAT. TIT. 12A, §3-301. 9. Plaintiff has complied with all the terms and conditions of the Note and Mortgage. 10. Borrowers are in default. The default claimed is failure to make payment, and the default date is May 19, 2021. 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 Borrowers, or if Borrowers fail 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 Borrowers’ 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 Borrowers and constitute a further lien on the Property secured by the Mortgage. 15. After consideration of all credits to this loan account, Plaintiff is due the sum of $8,229.87 in unpaid principal balance, with 10.950% interest per annum thereon, or as adjusted by the Note and Mortgage, from April 19, 2021, 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. Borrowers 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. 17. With respect to the additional defendants, Plaintiff alleges as follows: a. Additional defendant, Nationstar Mortgage LLC, 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 Pittsburg County Clerk’s Office August 27, 2007, at Book 1544, and Page 115; and subsequent Corporate Assignment of Mortgage recorded on January 9, 2023 at Book 2632, and Page 358. b. Additional defendant, Calvary Portfolio Services, LLC a/k/a Calvary SPV I LLC, may claim some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the Property, by virtue of a judgment in Case No. CS-2011-83, recorded at the Pittsburg County Clerk’s Office on June 27, 2011, at Book 1884, and Page 123. A Notice of Renewal of Judgment was recorded in this case on December 16, 2024, at Book 2742, and Page 624. c. Additional defendant, Domestic Bank, 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 Pittsburg County Clerk’s Office on May 29, 2008, at Book 1609, and Page 547. d. Additional defendants, Occupant(s), if any, 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. e. 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 personam against Borrowers in the amount of $8,229.87, with 10.950% interest per annum thereon, or as adjusted by the Note and Mortgage, from April 19, 2021, 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 Borrowers, the Property, the Premises, and all other 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 E. 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. NOTE Note Date December 14, 2007 Funds Disbursed December 19, 2007 1809 CARDINAL LANE McALESTER OK 74501 (Property Address) 1 BORROWER'S PROMISE TO PAY In return for a loan that I have received I promise to pay U S $ 13 800 00 (this amount will be called principal) plus interest to the order of the Lender The Lender is DOMESTIC BANK I understand that the Lender may transfer this Note The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the Note Holder 2 INTEREST I will pay interest at a yearly rate of 10 9500 % Interest will be charged on that part of principal which has not been paid Interest will be charged beginning on the date of this Note and continuing until the full amount of principal has been paid 3 PAYMENTS I will pay principal and interest by making payments each month of U S $ 141 98 I will make payments on the 19th day of each month beginning on January 2008 I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note If on December 19 2027 I still owe amounts under this Note I will pay all those amounts in full on that date I will make my monthly payments at 815 Reservoir Ave Cranston RI 02910 or at a different place if required by the Note Holder 4 BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments I know that you will charge me extra if my payments are late You may continue to charge interest on the payment which was late until I make the payment If that happens I understand that I will owe you more interest than I would have owed you if my payment had not been late I agree that when I make the payment you may apply it to the interest and the other charges which I owe you at that time and if there is any amount left over you will apply that amount to the Principal Amount of Loan I understand that this extra interest will result in an increase in the amount of the last payment which I will make under this Note (B) Notice From Note Holder If I do not pay the full amount of each monthly payment on time the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date I will be in default That date must be at least 10 days after the date on which the notice is mailed to me or if it is not mailed 10 days after the date on which it is delivered to me (C) Default If I do not pay the overdue amount by the date stated in the notice described in (B) above I will be in default If I am in default the Note Holder may require me to pay immediately the full amount of principal which has not been paid and all the interest that I owe on that amount Even if at a time when I am in default the Note Holder does not require me to pay immediately in full as described above the Note Holder will still have the right to do so if I am in default at a later time (D) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above the Note Holder will have the right to be paid back for all of its costs and expenses to the extent not prohibited by applicable law Those expenses include for example reasonable attorneys fees 5 THIS NOTE SECURED BY A MORTGAGE In addition to the protections given to the Note Holder under this Note a Mortgage dated December 14 2007 protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note EXHIBIT A 6. BORROWER'S PAYMENTS BEFORE THEY ARE DUE I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a prepayment. When I make a prepayment I will tell the Note Holder in a letter that I am doing so. A prepayment of all of the unpaid principal is known as a full prepayment. A prepayment of only part of the unpaid principal is known as a partial prepayment. I may make a full prepayment or a partial prepayment without paying any penalty. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment there will be no delays in the due dates or changes in the amounts of my monthly payments unless the Note Holder agrees in writing to those delays or changes. I may make a full prepayment at any time. If I choose to make a partial prepayment the Note Holder may require me to make the prepayment on the same day that one of my monthly payments is due. The Note Holder may also require that the amount of my partial prepayment to be equal to the amount of principal that would have been part of my next one or more monthly payments. 7. BORROWER'S WAIVERS I waive my rights to require the Note Holder to do certain things. Those things are (A) to demand payment of amounts due (known as presentment), (B) to give notice that amounts due have not been paid (known as notice of dishonor), (C) to obtain an official certification of nonpayment (known as protest). Anyone else who agrees to keep the promises made in this Note or who agrees to make payments to the Note Holder if I fail to keep my promises under this Note or who signs this Note to transfer it to someone else also waives these rights. These persons are known as guarantors sureties and endorsers. 8. GIVING OF NOTICES Any notice that must be given to me under this Note will be given by delivering it or by mailing it by certified mail addressed to me at the Property Address above. A notice will be delivered or mailed to me at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by certified mail to the Note Holder at the address stated in Section 3 above. A notice will be mailed to the Note Holder at a different address if I am given a notice of that different address. 9. RESPONSIBILITY OF PERSONS UNDER THIS NOTE If more than one person signs this Note each of us is fully and personally obligated to pay the full amount owed and to keep all of the promises made in this Note. Any guarantor surety or endorser of this Note (as described in Section 7 above) is also obligated to do these things. The Note Holder may enforce its rights under this Note against each of us individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. Any person who takes over my rights or obligations under this Note will have all of my rights and must keep all of my promises made in this Note. Any person who takes over the rights or obligations of a guarantor surety or endorser of this Note (as described in Section 7 above) is also obligated to keep all of the promises made in this Note. 10. APPLICABLE LAW I agree that this Note shall be governed by federal law and Rhode Island law except that what is known as the Rhode Island conflict of laws provisions will not apply. Furthermore I agree that Lender may bring any suit to enforce this Note or any security document other than any mortgage in the courts of the State of Rhode Island or of the Federal Government. I consent to and confer personal jurisdiction on the courts of the State of Rhode Island and the Federal Government and I agree that any action arising between me and the Lender in connection with this Note or any security document other than any mortgage shall be brought in a court having jurisdiction and venue at Lender's address set forth above. 11. NOTICE TO CONSUMER 1. Do not sign this agreement before you read it. 2. You are entitled to a copy of this agreement. 3. You may prepay the unpaid balance at any time without penalty except for minimum charges as permitted by law. NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. Witness [Signature] Witness [Signature] NATHALIE M PHARR LEIGHTON D PHARR JR NOTE ALLONGE Statement of Purpose: This Note Allonge is attached to and made part of the Note, for the purpose of Noteholder Endorsements to evidence transfer of interest. Loan Number: [REDACTED] Loan Date: 01/16/08 Original Loan Amount: $13800.00 Originator: DOMESTIC BANK Original Mortgagor: NATHALIE M PHARR & LEIGHTON D PHARR JR Property Address: 1809 CARDINAL LN MCALESTER OK 74501 Pay to the Order of Without Recourse DOMESTIC BANK by Servis One, Inc. d/b/a BSI Financial Services as attorney-in-fact By: Name: Jacob L. Balmer Title: VP, Licensing, Audit, Servicing QC, CRU, Issues Management & SAFE Act Officer STATE OF OKLAHOMA PITTSBURG COUNTY FILED OR RECORDED 2008 MAY 29 PM 12:32 S. DEBBIE BURCH COUNTY CLERK When Recorded Mail To Return for: effects 300-234-5727 Centre Tower 650 Smithfield Street, 18th Floor Pittsburgh, PA 15222 Prepared By: VADA KEITH DOMESTIC BANK 815 RESERVOIR AVE. CRANSTON, RI 02910 800-572-7844 TREASURER'S ENDORSEMENTS I hereby certify that I received $13.80 and issued receipt #43501 therefore in payment of Mortgage Tax on the within mtge. this 25th day of May, 2008 CERITA MORLEY, Pittsburg City Treas., By Deputy 190532 MORTGAGE THIS MORTGAGE is made this 14th day of December, 2007, between the Mortgagor, NATHALIE M PHARR, LEIGHTON D PHARR JR. (herein "Borrower"), and the Mortgagee, a corporation, whose address is Domestic Bank organized and existing under the laws of RI 815 Reservoir Ave., Cranston, RI 02910 (herein "Lender"). WHEREAS, Borrower is indebted to Lender in the principal sum of U.S.$13,800.00, which indebtedness is evidenced by Borrower's note dated December 14, 2007 and extensions and renewals thereof (herein "Note"), providing for monthly installments of principal and interest, with the balance of indebtedness, if not sooner paid, due and payable on December 19, 2027. TO SECURE to Lender the repayment of the indebtedness evidenced by the Note, with interest thereon; the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Mortgage; and the performance of the covenants and agreements of Borrower herein contained, Borrower does hereby mortgage. grant and convey to Lender, with power of sale, the following described property located in the County of PITTSBURG, [State of Oklahoma: ] See Attached Addendum Page 7 - Exhibit "A" which has the address: 180 CRINAL RINE MCAL ESTER OC Oklahoma 74501 [Street] (see if not Property Address"); TOGETHER with all the improvements now or hereafter erected on the property; and all easements, rights, appurtenances and rents, all of which shall be deemed to be and remain a part of the property covered by this Mortgage; and all of the foregoing, together with said property (or the leasehold estate if this Mortgage is on a leasehold) are hereinafter referred to 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, except for encumbrances of record. Borrower covenants that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness evidenced by the Note and late charges as provided in the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments (including condominium and planned unit development assessments, if any) which may attain priority over this Mortgage and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional lender. If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. VIEW ADDITIONAL LAND RECORDS AT OKCOUNTYRECORDS.COM If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender may require. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Note. 4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the Note rate, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof. Nothing contained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder. 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. 9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. 10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Mortgage granted by Lender to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Mortgage by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 11. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower, subject to the provisions of paragraph 16 hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Mortgage, but does not execute the Note, (a) is co-signing this Mortgage only to mortgage, grant and convey that Borrower's interest in the Property to Lender under the terms of this Mortgage, (b) is not personally liable on the Note or under this Mortgage, and (c) agrees that Lender and any other Borrower hereunder may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this Mortgage or the Note without that Borrower's consent and without releasing that Borrower or modifying this Mortgage as to that Borrower's interest in the Property. 12. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Mortgage shall be given by delivering it or by mailing such notice by certified mail addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Mortgage shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. 13. Governing Law; Severability. The state and local laws applicable to this Mortgage shall be the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of federal law to this Mortgage. In the event that any provision or clause of this Mortgage or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage or the Note which can be given effect without the conflicting provision, and to this end the provisions of this Mortgage and the Note are declared to be severable. As used herein, "costs," "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein. 14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and of this Mortgage at the time of execution or after recordation hereof. 15. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home rehabilitation, improvement, repair, or other loan agreement which Borrower enters into with Lender. Lender, at Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender, an assignment of any rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in connection with improvements made to the Property. 16. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Mortgage. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Mortgage. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Mortgage. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Mortgage without further notice or demand on Borrower. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 17. Acceleration; Remedies. Except as provided in paragraph 16 hereof (unless applicable law provides otherwise), upon Borrower's breach of any covenant or agreement of Borrower in this Mortgage, including the covenants to pay when due any sums secured by this Mortgage, Lender prior to acceleration shall give notice to Borrower as required by applicable law. The notice shall specify: (1) the breach; (2) the action required to cure the breach; (3) a date, not less than 30 days from the date the notice is given to Borrower, by which the breach must be cured; (4) that failure to cure the breach on or before the date specified in the notice may result in acceleration of the sums secured by this Mortgage and sale of the Property; and (5) any other information required by applicable law. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender, at its option, may declare all of the sums secured by this Mortgage to be immediately due and payable without further demand and 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 17, 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. 18. Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this Mortgage due to Borrower's breach, Borrower shall have the right to have any proceedings begun by Lender to enforce this Mortgage discontinued at any time prior to entry of a judgment enforcing this Mortgage if: (a) Borrower pays Lender all sums which would be then due under this Mortgage and the Note had no acceleration occurred; (b) Borrower cures all breaches of any other covenants or agreements of Borrower contained in this Mortgage; (c) Borrower pays all reasonable expenses incurred by Lender in enforcing the covenants and agreements of Borrower contained in this Mortgage, and in enforcing Lender's remedies as provided in paragraph 17 hereof, including, but not limited to, reasonable attorneys' fees; and (d) Borrower takes such action as Lender may reasonably require to assure that the lien of this Mortgage, Lender's interest in the Property and Borrower's obligation to pay the sums secured by this Mortgage shall continue unimpaired. Upon such payment and cure by Borrower, this Mortgage and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. 19. Appointment of Receiver. Upon acceleration under paragraph 17 hereof or abandonment of the Property, Lender shall be entitled to have a receiver appointed by a court to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. All rents collected by the receiver shall be applied first to payment of the costs of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Mortgage. The receiver shall be liable to account only for those rents actually received. 20. Release. Upon payment of all sums secured by this Mortgage, Lender shall release this Mortgage without charge to Borrower. Lender shall pay all costs of recordation, if any. 21. Waiver of Appraisement. Appraisement of the Property is hereby waived or not waived at Lender's option, which shall be exercised at the time judgment is entered in any foreclosure hereof or at any time prior thereto. 22. Assumption Fee. If there is an assumption pursuant to paragraph 16 hereof, Lender may charge an assumption fee of U.S.$ NOTICE TO BORROWER A power of sale has been granted in this Mortgage. 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 Mortgage. REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this Mortgage to give Notice to Lender, at Lender's address set forth on page one of this Mortgage, of any default under the superior encumbrance and of any sale or other foreclosure action. IN WITNESS WHEREOF, Borrower has executed this Mortgage. NATHALIE M PHARR LEIGHTON D PHARR JR (Sign Original Only) STATE OF OKLAHOMA, PITTSBURG The foregoing instrument was acknowledged before me this December 14, 2007 by Nathalie M. Pharr and Leighton D. Pharr Jr. Witness my hand and seal on this date, 12-14-07 My Commission Expires: 8-12-2008 KENYON F. HAIRRELL NOTARY PUBLIC OKLAHOMA LeFLORE COUNTY COMM. EXP. 8-12-2008 COMM. NO. 04002387 LEGAL DESCRIPTION EXHIBIT "A" THE FOLLOWING LANDS AND PROPERTY, TOGETHER WITH ALL IMPROVEMENTS LOCATED THEREON, LYING IN THE COUNTY OF PITTSBURG, STATE OF OKLAHOMA, TO-WIT: LOT FIVE (5), BLOCK THREE (3), MOCKINGBIRD HILL ADDITION TO THE CITY OF MCALESTER, PITTSBURG COUNTY, STATE OF OKLAHOMA. PARCEL ID # __________________________ BEING THE SAME PROPERTY CONVEYED TO LEIGHTON PHARR, A MARRIED MAN FROM LEIGHTON PHARR AND NATALIE PHARR BY DEED DATED 6-1-2007 IN BOOK 1544, PAGE 112.