VISI N PROPERTY MANAGEMENT

P.O. Box 488

I Columbia I SC I 29202

Friday, September 04, 2015

Congratu.J.ations on your new home! I have enclosed the original signed and notarized copy of your Lease with Option to

Purchase Agreement. Insurance Once you move into the property, we would advise you purchase a renter's insurance policy.

Account Services Contact Center Payment questions? SL>nply contact one of our trained Account Relationship Specialist, Monday through Friday, lOa to 6p EST by calling 803.799.0070. For your account security, you MUST provide your Property Code when calling.

Monthly Payments We accept Visa, MasterCard and Discover payments by phone. A $7 .00 fee applies for each payment. Payments may also be made via Official Check or Money Order and can be mailed to the address below . .!Ul payments and correspondence MUST be labeled with your Property Code. Failure to properly label payments may result in them being returned and Late Fees being applied . .!!.l.I. payments and correspondence should be mailed to: Vision Property Management P.O. Box488 Columbia, SC 29202 Your Property Code:

KOH17 We are excited to be doing business with you and we are here to help you make this house your home. Should your contact information (phone number or preferred mailing address) change, please contact our office at 803.799.0070.

Account Services Dept. Vision Property Management, LLC

KOH I I RESIDENTIAL LEASE WITH OPTION TO PURCHASE AGREEMENT (TIUPLE-NET, BONDABLE LEASE)

This RESIDENTIAL LEASE WITH OPTION TO PURCHASE AGREEMENT is entered into on this dny 1st or September, 2015 bet\vecn Kaja Holdings, LLC (hereinafu:r kno\\.'l\ as the "LESSOR") and Donna Marie Thomas (hereinafh.'f kno,.vn ll5 tht: *'LESSEE(s)").

\Vitnesscth, that ifilie LESSEE(s) shaU first mo.kc the payments and perform the covennnts hereafter described, th!! LlSSOR hereby covcnant(s) and agrcc(s} to LEASE the property commonly known as 324& McHenry Avenue, CINCINNATI, 011 45211 in ti" County of HAMILTON, the city of CINCINNATI , the Smte of Ohio, to tl1e LESSEE(s) for the term nnd covennnl(s} set forth herein, and furth;r kno'""n !llld descn'bed as follo\\'S, to-\vit: SEE ATTACHMENT "A" FOR LEGAL DESCRIPTION OF PROPERTY The premises, as described nbove, \Vith all appurtenances, ate hereby LEASED lo the LESSEE(s) for a term of 77 moriths. This LEASE shall commence the 1st of September, 2015 , and shall be pilld, at the signing of this agreement.., in rJu! Collowing manner: Two Hundred Fifty Dollars { $250.00} as an option consid:rnt.ion, nnd T\'..'O Hundred Fifty Dollars ( $250.0D} ns the monthly lense payment, plus Eighty Dollars ( SB0.00) for real estate taxes (reel eslale ta":t;es subject to change}, T\vcnty Dollars ( S20.00) for Cesualty and General Liability Insurance (insurance premium subject to clumge}, making the Lotal initial p;.iymcnt Six Hundred Dollars ( $600.00 }. All subscqui:nt monthly peymcnts shall be due on or berore the 1st day of each month, commehcing on the 1st of or Three Hundred Fifty Dollars ( $350.00 ), TI1is ngn::ement expires on the last calendar day of March~ 2022. One Hundr.ed Two end 621100 Dollars ( $102..62) of i:ach monlhly lease paym::nl, as well es the option constderation paid by theLESSEE(s) shall be credited lO-\Vards the purchase price of the property. AU credllS are non~refundable.

Ociu-bcr. 2015 until the term of this agreement his b--..en fulfilled and shall be in the amount

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The PURCHASE PRICE of the premises, as dcsc:ribcd above, will be Twcnl]'·Siration of this agreement, choose to purchase tbe abo\.'e referenced premises for the remcinder oft.he PURCilASE PRICE as described above with all crcdirs paid included. Fulfillmi:nl of the PURCHASE PRICE by the LESSEE(s) shall be treated as a CASH SALE, at which time the LESSORshnll provide !he LESSEE{s) witlt a good and sufficienl deed, clear cf all enc:umbranc!?S, with exception to any/all enc:umbrances caused by the action or inaction, whelher direct or lndil'Ccl, of the LESSEE(s), and transCer litlc of the premises from the LESSOR lo the LESSEE(s). This CASH SALE shall bo documented by a separate instrument.

3. OPTION TO FORFEIT LEASE: LESSEE(s) may, on or before the expiration of this agreomcnt, by mutuol agrccmcnt between LESSOR and LESSEE(s), a.s evidenced in \\Titing, choose to forfoil their rights to the premises described hcrt!in and vacate the premises und all appurtemmtes within FIVE (S) days oflhc determined expiration of this ngrecrncnl. Should the LESSEE(s) choose to forfeit this agreement. all pers-0nal property and bc:!ongings shll.11 be vacated wilhin FIVE {5) days of the detennincd expiration of lhis ngrcancnl. Should the LESSEE{s) choos:: to vacetc the premises, any onti all improvcmenls that hnve been built into the property, including but not limited to any/all built in applionccs. shall remain ,.,.jth the property ond become considered forfeit.

Page 1 of9

a.

b. C.

FAILURE TO VACATE l'REhllSES: Should the LESSEE(s) fail to comply with the covenants of OPTION 3 (abo\'c), LESSOR shall have the right to evict LESSEE(s) according to the proper judicial process determined by the locality in v.'hich the premises is Jocat.cd. l'ERSONAL PROPERTY: Should the LESSEE(s) elect to choose OPTION 3 (nbove), any Wld all of LESSEE(s), their assigns, ngc.ri.~ ncquainlllnces, and/or other personal property remaining in, uround, or abau.t thi: premises or its appurtenances shnll be forfeit so far es the FIVE (5) day vacation paiod hl!S expired. CONDITION OF PREMISES: LESSEE(s) agree 01at upon the execution of OPTION 3 (above), LESSEE{s) shall var;ate premis:es in Lhe same condition or belt~ as of the execution of this agreemerH, LESSEE(s} acknowledge that should thcyvacat.e the premlses in worse condition Elian al the time: of execution of this agrc:mcrit. any and 11\1 uppropriatc li:ga! action may~ soughl by LESSOR for restitution,

NON-PAYMENT, EVICTION, AND LA'IE FEE NOTIFICATION

LESSEE(s) ackno\'r-ledges and unde:rslands that iflfo:: full amount of lhe monthly payment described herein hes: nol been received by the end of Five (5) calendar ds:ys aficr th: dale it is due; a la.le charge in the amount of SevcntyRfive Dotlnrs { $75.00} \Yill become due. the total pa_yment and pi:nnlty being lhc amount of Four Hundred Twenty.five Dollars ( $i;25.00 ). Any late fee charged shull not be applted!e.ssumcd ns credit 10\\wds lhi:: PURCHASE PRICE. 1 For c!!ch bad check thi:rc. will be Thiny Dollur.s (.$:30.00) bnd check fee applt~.

LESSEE(s} acknowledges and undcrStands that in the event of their failure to perform according lo the covennntssct forth he.rein, particularly, but not limited to, the full amount of the monthly peyme::nt described hcrdn nol being received by I.he end of FIFTEEN' ( 15) calendar days after the date il is due, they mny be placed in eviction in lhc p:rt.inent Court of competcntjurisdktion pertaining to the county in which the premises is loet1ted or other nppropriotejudicial proccSS.

AS IS/WHERE IS LEASE NOTIFICATION

LESSEE(s) acknowledges and understands thot the premises rererer.ced herein is LEASED in strictly "AS IS/\VHERE JS" condition, nnd iL is mutually egreed, by nnd between the pmtii:s hereto, thnt the LESSEE{s) is solely responsible for maintnining lhi! premises in asafo end non~hazardous condilion during the duration oftliis agrcernen~ and f-or bringing the building and premises lo n hnbitnble condition, compliant 'vith nny nnd ell State, County, and City building ond premises codes1 v.ithin a reasonable period of time not ex.ceeding (December Ist. 2015 ). and maintaining the premises in a good state of repair during the tc:m of !his ngrccmcnt.

LESSEE.(s) also hereby ~cknowledges and und~rsf2nds that the LESSEE{s), upon the exei:ution of this ngreemcntt may take possession of the premises rercn:nced herein, but "'iU nut occupy or u.Duw tu be occupied lhc stated premis~ until the building and premises are broughl lo a habitable condiUnn, col'npliant with any and all Stale, County, and Chy building and premises codes.

LESSEE(s) also hcRby acknowledges and understands thnt the LESSEEls}. upon the execution ofthi.s ugrccmcnt, shall be immeUialcly responsible for payment or alleviation of any encumbrances including, hut not limifcd tu, all taxes, 11:sscssments and/or lmp0:sitions {includes such foes iis ground rents, city/county misetllaneous recs as they require, property viohitions and/or fines levied, 'vatcr/scwer charges, electrical/gas usage charges, garbage lccs nnd property ttt:x-c:s levied, ccc.) that may be legaUy levied t1r imposed upon said premises that nre delinquent or currcn£ly due st the c:t:c~utian or this agreement without recourse.

Page 2 of9

RIGHT TO INSPECT PREMISES

LESSOR, its employees or agents, shall hllVC the right, nftct 24 hours of notice to the LESSEE(s). to enter and inspi:ct the! premises nnd all its appurtemmccs referenced in this agrcc~ment at reasonable: times for the purpose of inspecting the performance o.f the LESSEE(s) p:::rtn.ining to the terms and conditions of this agreement set forth herein. LESSEE(s) hereby agrees to and grunts LESSOR such stoled rights. Upon i11Speclion of the premises and all its appwtenanccs, should LESSOR deem that the terms nnd covenants of this agreement have not been fulfilled by the: LESSEE(s). such as but not limited lo maintcnn.ice, repair(s), or other reasonabtc grounds, LESSOR shall have the right to tenn.inate this agreement imrnedilltdy by written notice to the LESSEE(s}, end should it require. the LESSEE(s} may be placed in eviction in the pertinent Court olcompclentjurisdiction pertaining to the county in whlch the premises is located or other approprintejudicial process. Such termination of this agreement docs not entitle the LESSEE(s) to any pnymt.'llts mo.de, v.-Ticlhcr towards the option consideration or not, to any refund \\'hatsotVer. LESSEE(s) hereby agrees to nnd grants LESSOR such stated rights. i

LESSEE'S RIGHTTO SUB-LEASE

{fall the requirements and i::ovennnts of this agreement are in full eOCcti including but not limited to maintaining l11c prcmisc:s in a safe and non·liazardous condition during the duration of this agreement, and for bringing the building and premises to a h.nbilllble condition, comp1innt wilh my nnd all Sln!c, County, and City building and premises codes, LESSEE(s) shall ho.vethc tight 10 sub-lease the premises referenced herein upon the mutual agreement to sub-Tease said premises, in \\riting, between the LESSEE(s) and LESSOR. This sub-leus: Bnd ar:lcriowlcdgmcnl of sub-lease shall be: do::umentcd by a separate instrument to be approved by the LESSOR in its sole discretion. LESSEE(s) hereby acknowledges and agrees lhnt the requirements nnd conditions of this agreement shall lake priority, including but not limiled to the nAS ISIWHER.E JS 1' clause, over nny sub-lense agreement. Prior to the execution of any sub-lease cgrcement., LESSEE(s) hereby aclo:lo\vlr:dges 11nd agrees to provide LESSOR with appropriute contnct information for the sub-lcssce(s), including but not limited lo phone numbcr(s), c:m5il address, emergency contncts, und otmr information thnt may be required by the LESSOR prior to tbe execution of !he sub-lease.

Upon the: execution of nny sub-lense behvecn LESSEE{s) and sulrlessec:(s), this agrctment shall remain in full effect according to the provislons set•.forth herein. Upon the event that the rcquironents nnd coven1111ts set rarth herein nrc not in full effect including, but nDt limited to non-payment, LESSEE(s) may b: placed in eviction in the pertinent Court. of competent jurisdiction pcrtnining to the county in \vhich the premises is 1ocal~d or other approptfote judicinl process, nnd LESSOR sha1l have the in1mcdiateright to convert the sub-1essee(s) to- LESSEE(s) in the former LESSEE(s) sle.ad. This conversion shall be documcl"lkd by a scpilllllc instrument.

INSURANCE NOTIFICATION

The LESSEE(s) v.ill poy for Cnsunlty and General Liobility insurance as u part of their monthly poymcnL This fee is u Curu11lty and General Liability Insurance Policy and is nol a n::placcm~t for renlcrs insurance or olhcr nppropriatc insurance ta be obl.illned by the LESSEE(s). This policy only covers the LESSOR's liability in this: property~ \Vithout renters insurance or other nppr{lpciatc insurance, the LESSEE{s) \\ill still be responsible for'da.rnage or loss of personal belonginis. The LESSEE(s}will notil)• the LESSOR immediotely in the event of any signifitm1l damage lo the property. 1fthc damage to lhc improvements on the Property is less than fifty (509/n) percent of the total value: of the improvements,

Page 3 of9

the LESSEE(s) shall be obligaled lo-repair or reconslr\lct said property. The LESSOR shall apply Ute proceeds dire1::tly to the costs of such repair or reconstruction. The LESSEE(s) shall be liable for any deficiency after application of the insurance money to such cosls. If the damage to tlie improvements on the Property is in excess cf fifty (50'}~) percent of the totnl value of the improvements, the LESSEE(s} shall have !he option as to \Vhether to repair or reconstruct said property follo\vin.g such casually

loss. tf the LESSEE{s) elcct.s aot lo repair or reconstruct said property. then the unpaid balan~e of the PURCHASE PRICE shall at the option of the LESSOR became due and payable forthwith, and the insurance proceeds sha.U be applied tO\\-ard.s the upplicnlion of such sum, any surplus of the insurance pro~eds O\'er and ebove the LESSEE(s) obHgDlions sh1111 be patd to the LESSEE(s). In the c:vent that the agreement is paid out as a result of the application of the insurance proceeds, the LESSOR shall deliver a deed to the LESSEE{s) and cof".surnmate the transaction. In tl1e event the contracl is not pe.id out ns a resull of the applic11tion of the insurance process pursuant to an election not to repair or rcCOib"trUct said property e:fh:r ctlSUnlt)\ the proceeds shall be cn:d1tcd to the a.ccounL of the LESSEE{s) and the LESSEE(s) VviH continue to make regular payments pursunnt to the temis oflhe agreement until the LESSEE(s) obligations are satisfied and the agreement consummated. If the LESSEE(s) elects lo- repair or rcconslruct.,. the insurance proca::ds shnU be applied by the: LESSOR to the costs uf such rt.-pnir or reconstruction, the LESSEE(s) sh nil submit the building plans to the LESSOR for approve:!, for \vhich approval shnll be: granted irtl1e value of the lend alter the repair or reconstruction wiH equal or ei:.ceed the value of the pren1ises imn1ediately prior to ~1c casualty. lf n:quested by the LESSEE(s), tho LESSOR will, nftcr approval of the LESSEE(s) building plans, tum over th, insuranci:: procet!ds to an inSU.'
B.

After a Show Cause Hearing: i.

Declare the subject property a public nuisance.

ii.

Enter a preliminary injunction not only prohibiting the occupancy or use of the premises for any purpose, but also requiring Defendants HSBC et al and KAJA Holdings 2, LLC, within thirty (30) days, obtain the necessary permits for either rehabilitation or demolition the structures in question and, if demolition is chosen all debris must be 15

removed and the property must be restored to surrounding grade level. C.

Should the Defendants HSBC et al and KAJA Holding LLC herein after

being served with the Verified Petition and Order to Show Cause, fail to appear at the Show Cause Hearing or otherwise defend itself in this action, grant Plaintiff Township and its authorized agents the right to enter upon the premises of the subject property, and take such action as may be required to abate the nuisance including demolition, debris removal and restoration to surrounding grade level. D.

Should Defendants HSBC and KAJA appear but fail to comply with this

Court's preliminary injunction, allow Plaintiff Township and its authorized agents the right to enter upon the subject property, and abate the nuisance as provided in paragraph C above.

E.

Order the Defendant HSBC and KAJA to pay all of the Township's

reasonable costs associated with this lawsuit, including all costs incurred in the abatement of the nuisance itself, as well as the Township's reasonable attorney

....

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fees and to do so within thirty (30) days of being provided an invoice therefore. F.

In the event Defendants HSBC and KAJA do not reimburse Plaintiff

Township within thirty (30) days of having been provided an invoice therefore, order the entry of judicial lien in all such amounts to be recorded with the Washtenaw County Register of Deeds and enter a money judgment against Defendants

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HSBC and KAJA in those same amounts which may be executed by Plaintiff Township in accordance with Michigan law. I certify that the above statements are true to the best of my knowledge, information and belief.

Dated: // - ..3.IJ

~~~'Ac

,2015

I

AfeXMa 0,Chief Building Official Charter Township of Ypsilanti

P~d by:

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Dennis 0. Mclain (P25676) Mclain & Winters Attorney for Plaintiff 61 N. Huron Street Ypsilanti, Michigan 48197 PH: (734)481-1120

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State of Michigan /ss County of Washtenaw Subscribed and sworn before me by Alex Mamo this -3..!L'fbay of flfn v 2015

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Diana Cunningham, Notary Pub Commissioned In: Wayne County, Ml Acting In: Washtenaw County, Ml My Commission Expires 09/23/2021

...

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Exhibit A

SEARCH OF TITLE

IEFFECTIVE DATE:

06/02/15 at 08:00 AM

]iEARCH ~UMBER,~:_15~.0_18~2_ _ _ _-:=)

From examination of the records in the Register of Deeds Office, Washtenaw County, Michigan, for property described as follows, to wit: Land situated in the Township of Ypsilanti, Washtenaw County, Michigan Lot 70 and the South 4 feet of Lot 71, Lay Garden Subdivision according to the Plat thereof as recorded in Liber 6 of Plats on Page 31, Washtenaw County Records. Commonly known as: 881 Allen Rd

APPARENT OWNER: Kaja Holdings 2, LLC

CONVEYANCES AND DOCUMENTS: 1. Warranty Deed between Glenna D. Edwards a/k/ a Glenna Edwards, as Grantor to Rachael Kalisek, a single woman, as Grantee dated October 30, 2003 and recorded November 10, 2003 in Llber 4335 on Page 39, Washtenaw County Records. 2. Warranty Deed between Rachael Kalisek, a single woman, as Grantor and Aaron S. Easter day and Sherry D. Easterday, husband and wife, as Grantees dated January 24, 2005 and recorded January 28, 2005 in Llber 4454 on Page 731, Washtenaw County Records. 3. Mortgage in the original amount of $26,000.00 executed by Aaron S. Easterday and Sherry D. Easterday, husband and wife to Huron Valley Financial, Inc. dated January 24, 2005 and recorded January 28, 2005 in Llber 4454 on Page 733, Washtenaw County Records. NO RELEASE OF THIS MORTGAGE JS FOUND. 4. Corporate Assignment of Mortgage from Huron Valley Financial, Inc. to Mortgage Electronic Registration Systems, Inc. dated February 3, 2005 and recorded May 10, 2005 in Uber 4476 on Page 983, Washtenaw County Records. 5. Mortgage in the amount of $114,000.00 executed between Aaron S. Easterday and Sherry D. Easler day, husband and wife and MERS as nominee for Mandalay Mortgage, LLC dated November 10, 2006 and recorded November 21, 2006 in Liber 4593 on Page 511, Washtenaw County Records. 6.

Assignment of Mortgage from Mortgage Electronic Registration Systems, Inc. (MERS) to HSBC Bank USA, N.A., as Trustee on behalf of Ace Securities Corp. Home Equity Loan Trust and for the Registered Holders of Ace Secorities Corp. Home Equity Loan Trust, Series 2007-ASAPl, Asset Backed Pass-Through Certificates dated September 23, 2013 and recorded October 18, 2013 in Liber 5006 on Page 14, Washtenaw County Records. ·

Prepared by: Campbell Title Agency ofMichigan, LLC 1894 Whittaker Rd. Ypailant4 Ml 48197 (734) 483-1040

7. Sheriff's Deed on Mortgage Sale between the Deputy Sheriff and HSBC Bank USA, N .A., as Trustee on behalf of Ace Securities Corp. Home Equity Loan Trust and for the Registered Holders of Ace Securities Corp. Home Equity Loan Trust, Series 2007-ASAPl, Asset Backed Pass-Through Certificates, as grantee dated September 4, 2014 and recorded September 12, 2014 in Llber 5057 on Page 291, Washtenaw County Records. 8. Affidavit of Abandonment dated October 23, 2014 and recorded October 28, 2014 in Uber 5064 on Page 120, Washtenaw County Records. 9. Quit Claim Deed between HSBC Bank USA, N.A., as Trustee on behalf of Ace Securities Corp. Home Equity Loan Trust and for the Registered Holders of Ace Securities Corp. Home Equity Loan Trust, Series 2007ASAPl, Asset Backed Pass-Through Certificates and Kaja Holdings 2, LLC, as grantee dated December 11, 2014 and recorded January 5, 2015 in Liber 5073 on Page 234, Washtenaw County Records. 10. Affidavit of David Bellers, Building Official, Charter Township of Ypsilanti Placing Prospective Purchaser of Real Estate on Notice of Pending Violations dated April 2, 2015 and recorded June 12, 2015 in Uber 5099 on Page 429, Washtenaw County Records. NUI'E: This document is recorded beyond the effective date at the Washtenaw County Register of deeds and, therefore, is Jn process and subject to change.

TAXES: Property I.D. No.: K-11-02-304-018

2014 Winter Taxes are DELINQUENT in the amount of $485.10, plus lnterest and penalties. 2015Sununer Taxes are UNPAID in the amount of $1,538.95.

Special Assessments: NONE SEV: $29,800.00 PRE:O%

This report is for informational purposes only. The liability of Campbell Title Agency (hereinafter "the company") in issuing this report is limited to a maximum of the amount paid for this report. Such liability is for reasonable care in making this search. This report is not an abstract of title or a title insurance commitment or policy and should not be relied upon in place of such. It is not the intention of the company to provide any type of express or implied warranty, guaranty, or indemnity with respect to the accuracy or completeness of the information contained in the report. If this report is to be used by the customer as the search required in order for the customer to issue a title insurance commitment or policy, or if the information contained in this report is resold, the customer does so at their own risk, In order to obtain information from the agency which will carry the full liability of a title insurance commitment or policy, the agency will issue, if requested, a commitment of title insurance and will charge a fee in compliance with rates filed with the appropriate state office.

~rj~~LLC By: Marg

• Brown!Agent

Prepared by: Campbell Title Agency ofMichi.grm, LLC 1894 Whittaker Rd. Ypsiland, MI 48197 (734) 483-1040

Exhibit B

Receipt!# 15·185 6239!160 OlltJ612016\Mishttnaw Oo, Michlp1 ttea!Estateroosrerrax Tex Sl.M1J3 # 362.128 C(ltrll~ Tax: $30.H stale Tax: $205.25

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6239860 L: 5073 P: 234 D Total Pages: 4 01/05/2015 01:06 PM Lawrence Kestenbaum Washtenaw County, Michigan

QUIT-CLAIM DEED lo•n # 20262762 THIS INDENTURE, Made on the

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day oi

'f}t/.utn{Jt A.O. 10 (o tjmdw Lgan 1]t§L

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:;:::·S!\W;~'.lfAl'Jf!fE,";'!@\'$'£!'lNIO!'i!zPi:.:r.:;:itt':r"'.:Sm1n1 da!ed!!eptlmblr23 2013 WUER.t:As 111ld morlpge contained a power of safe which bu become openitive by MNOD .ra da&ult in thll' 11CJ11dlliOJ1 of saiil 0

moitgqo,and WHEREAS, no suit or proceedlnas at'Jaw Qf' ln equhy have been haslituted to recoqr 1he debt secuml by Hid mcirtpge or IP)' part ~~ ' . WHEREAS. by virtue of said power o(saJe. and pursuml lo lh11 :statule of1he SI.Ill nrMkhigzan in such Cuc m1dramd provided, a nodce Wli duly J'V.llli&hed and a copy thereorwas duly poned in a COQ!ipblous plmi upon lhe premises describBd ill •kl m:rrtgage, that Che swld prcmia.1or 50m1 pan ofthem, would be sold al ~on lhe 7dJ +v pf Am1mt AP ztu1 Wle •m~..ff2m At1•ust 7 2Q14 to S@ptmihtr4. 2014l. Ill public venduc. that lleln9 lhe pllceorhDlding lhc Cin:uil Caurt. fur WaJlbtcl!•w Ccrunly

whene: Ille premises we situated and WH6REAS. punu1111 to &aid notice I did, ar: on the day Int afoJ'eSEI.~ expose for sale at public vendue the 11fd lands and ttnemenls hcteblaRi:r clcscribcd1 aad on such aale d.id 11rike off' and soll lhe said lands ~nd tenements to thi:awitec for 1fwS1.1m or0n; Hy11drtd Twenty.. rwn 1'howmnd Orre Hundred J.1Wiwt ind 20/fOO P(lllsr! f!122.J5S.'ZID.. thaa baing the t111.1tcs1 bid Utorcrnn: and tlro grank:c being the hlgha1 blddar, and WHEREAS:. said lands and &cnemcnts me sllt1aled Jn 1hc Cb1rtcr Tnw11shfp gt ymUpntl, Wnshumpw Couql)', Mk:hipn. mon: padk:uhniy dereribcd h1 exhibl"I. A, •l:W:bcd Bnd commonly lcnow11 n: Bit Allen 1ld Proper1¥ Tax P""'I JD k· I 1..p2-JP4=91 1

This property may bt lamed wllhin Ute \rlci11lly of fllrmltnd or a rarm operatiort. Oenerally. acgcpted agricultural and management pnictic:R, which ma:y pen.le nuis~ du111, uduni1 and olhtr 1mcx:Uik:d oormlitkms. may be WICd Wld am pratcclcd by lhQ Mfohig&ll right to firm acl.

Now, this Jndenaire WiMesselh, That I. the Deputy Sheriffaroru1id. by virtue or and pur$11an1 IO the s1&tute In such casei made mid

provldedt and fn consideralion of lbe sum of money so paid a.t 11fon:said, have grnmcd~ conwyqd, bargained Md sold. and by thi1 deW.

do grant. con.i")', b11Jg1i1t and seU unlo the granlaa, illl succ:es11ors and a.qsigmi. fQre.v.cr, all ihe e~Uate, right, liU.c and intere.~. which 'the said Mor1paol(s) hid iQ nld tancl. and ICllM'lents raitd every part thereot:on tho JO!h 4111 gfttgypnKt A.Q 'MKlfi thal. befng lite dale ofs1td 111onpae, or at any t(me 1heree.ftct1 10haveand10 hold 1be s1dd IMdsand cenementsaod every parttheteot101he nld atan1te,

lls Sllilcessots and mslgns ~ct, IO lhclrsole mtdonly me,, hcneOt nnd bllhoorfore"esi, 111 lully and absah1rely u I, th.e Deputy Shari.ffafbJ011id. under •he awlulrlty BfomaJd. mlaht, couM or ought to aell the same. IN WlTNESS WHEREOF, I have hetellhtOS61 my hand and seal, lb date and yearflm.ahove wrmen.

James B. Damron

Deputy SberilTln end Jbr the Cou11.1y

ar Washtenaw

STATE OF MICHIGAN COUNTY OP WASllTENAW

On this 4, "'"~ A.P. 2014, befort me, .a NObuy Public in and for mid CDW"liy orWmhtc111.w n.mc .. • , ron • a Deputy Sheriff of said COunty, lll'JOWn to me lo tie lhi:: lndivid111d described irl and who CL~uted lhc above CD11Vlilyanre_ and who ac:lcnowledged lhal sbc:lhc CMl:Uted th!.'! SllTlle ro be hetlhls free act i!IJUI deed as

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such Depu1y Shain:

NOll!y Public, l!)o:t\G.Jd.1Co"!!IJ'• Miohll!lln My commlssloo ••plrm: !0(]!) AClhg in 'ha counry Gf\Valh1enaw

{WJo

THIS INS'l"RUMSNTIS EXEMPT FROM MlCHIGANTIIANSrER TAX UllDER

M~LA 207.SlG(v),


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6223828 ~: S057P: 291 OS 09/1212014 02:51 PM Page 2of6

t•blblt A - Property ne..dpll••

Lot 10 and lhe SOath 4 feet of Lot 71, Uy Ollrden Subdlwlslon, Township of Ypsilanti, Count)' orwashrcn1w alKI s1.11e of Michigan,

as ttewd.ed Ju Llber 6. Page 3 I fJf l'lltli, Washtenaw County Rec:ords.

6223828 L: 5057 P: 291 OS 0911212014 02:51 PM Page 3 ol 6 Team c -Atiron Eaeterday NOlict Of Moitslllll& ForecloalllEI 88111 nus FIRM IS A DEB1' COl.LECTtlRATTEMPTftllG TO COLLEGT A DEBT.ANY INFORPMTIQN WE OBTAIN WILLBI USED FOR THAT

PURPOSE. PLEASE CONTACT OUR OFFICE Al THE NUMBER BEi.OW IF '\'OU ARE IN ACTIVE MILITARV DUTY. ATTN PURCHMERS; This 1a1e MDI' be re1'*'°8d bl' rht farerloalru mllltu•aea. ll'l lhlll ev.nl, r.ut 11111111grm, ir

AFFIDAVIT OF PUBLICATION

,,

(Afti1a.ft of Publioher)

STATE OF MICHIGAN, $$.

ll'lf, Shill! be lmlllld llCllelV lalbe relllM 10 ltlEf bid llnOulll tenlHl'td tit Ill&, p!UI 111'1919!1:. MORTGAGE SALE - Oetiwli:

COUNTYOF WASHTENAW

RUQitlratkm SJllfJ'llS, 11¥., Moll9'9P, Qlltd Na~ 10.

The undersigned, an employee of lhe publisher of WashtenaW county Logal N-. having knowledge of Iha facto, being duly swam d'epo1es and says that a nallee. a true copy of which is annexed hereto, waa pul>lfahad In Wa&hlenaw County Legel News a newspaper circulated In Wa&hlenaw County on Jufr 10, July 17, July 24, July 31.2014 A.D,

has tl..hmad• ht thl eonc11uan1 of , lllCH1pge INlde Dy Allron S. Ea111TA)t •nil Stllfll' D. Ellll~,y. Husband and Wfft, Clrigin.t lt!OJlllSGl(D}, to Marl;lli! ElectivniC

2006. and NM:Crdedon NoVtmt.r21, 20D6 in Lllar46&3 on P11• &1 t, ll'lll .118'11111d 1'1Vt1fd MCHISftpe ta HSBC Bari! USA, N.i\., II Tiu•• ion bl:hlll vi' ACE S.i;:1nilfes Corp. Home ll:ll(U11J l.un TM.tand fat lbe iwgbtlled hO!deta OI ACE Sewl'lles Corp. Harne E!qu~ t.o.n Trull. Serin 2007·

ASAP'I, Alla1 Bmll P...Tr.uvgh Cerllfk;afn es.

~- as. docurntntlltl by 111 mifg:flnnl, In Wivhtu1JW couniy ~ Mfell\aan. an Vlhlch mallgq1 !html ii dllmed to be due at tbe dale here!i thll .,m ot Ot1a Hundred klatiteen l'llouNnd One Hul'ldMd TI!re1and07'900 DoHAl'I

(1111, !Gl.07), Ulleler \he powetflfUltlCOl'llJlned In tJld marfgagt and Iha Slatulle in tUCh cete made and pn:Mdll!lf, natiQe ill ltet11by 9M1n lll•l 11kl morts111g1t will be lo•clostd by 1 ote Cl'lh9 mortga11ed prerriites.. or SC11M pa11 or llHtit\ at publio ~ndw, al llN plsce ofholdlng 1111'!1 Circuit .court

Ylllhln WC11Mlnaw couni,, 1111 10:00 AU, on Auguat 7, 20t4.

Slid p11mlan 11re siluilled In Chm11r TownahipofYp•llanU. WNtllen~(:ounlJ, Mlelllgatt, and 11re ile$crlbed n: t.ol 70 •nd the SouttJ• rvfll ofLot71, l8'j Gerdim ltfldlvlslon, TCM119hlp or Yptlanli., Coull1y of Wsslltenaw ~ncl Stale of Mi;hilillln.. u 18COftisd in Libel 8. Pa,ga 31 Of Plars. WIQhlll!flllW Counly Rewd'~. The redeMl)liOr'I pefiod •11 be a mvnth1 tram llltt dide Df allCh sale. unlns determined 1bllndoiwct In ac:corduca ...,;lb UCLA lfiOD,3241a. In wht:h ca• Ille mtemplion P9riod ahlll be :SO dlYI hm Ille dlli iof 1.icfl Nit. tf th• JllOPOICJ II 10ld 1t IOredolure slll umtfr

Ch•r az of VII Rt111ild J~li;tluie kt QI 1181, IWrtUlUll

talllCL aao.ma the 11.11fn7Ntlr !Mil bll hald raaponslble 1111 Hae fKlllO" wt1111 lluys Ille. pq11rl}l 1l lht t11al'tg119tt fcncloaure Mia orto- IQ "'°"811• hok11tford1mqfng lhe propeif)I clurilig tfte rffflMflitin Ptrilld. Dllld: July 10, 21)14 For mon:1 ln~nnalli:in, plnH cd: FC CCWI~ 03·1301 Troff & Trdt. P.C. Al!GmlJI FarS.Mcer 3144DNoltlWlllls•rn Hwy lie 2DO F1rmlnatan H1111, Mfl:hl111n 483lt44ZJ File •ma•F02 {0'1· 10)(07-31)

t~_ --& JoNlolhl• Subsc- 81\d .,..,,. before mo on lhls 31sl day of July 2014 AD.

Notary Public Waahtenaw County, Michigan. My commlsslcn expires: Octobar 16, 2018 Acting in Wa•trt&naw Counly, Mlcnigan.

A&Cornay:

Trott & Troll PC. ~ Tlatt & Trett P.C. Jr.am ic)

AlfomeyFld:

435264FU2

Notld

1996594

435264F02

El223828 L: S057P:291 OS 09/1212014 02:S1 PM Pago 4of6 Team cw Aaron Easterday

EVIDENCE OF SALE

NO!io;1QfMad99 Fonid0&11t6 Sale! lHlS FIRM IS A DEBT

CDLl.ECTORA1TENPTING TOCOl.l.ECT A DEBT.ANY INFQRW!.TIONWE DBTAIN'lllLL BE USED FORlHAT

(Aflidavll of PosHng)

PURPOSE.Pll!ASE CONTAC'l'OUR OFACE AT THE

NUMliiR lliLOWlF YOU ARE! INACTIVE MILITARY DUTY. ATTN PURCHASERS: Thir Hte mil¥ be reK1lnded IJYthe foradolklg n1~a. In lhlll 11Yarit, your d1m1111, IP ;any, tl'NIJI be 1m11H solalrto tile rltlll'll. of1ha bill 11m111!1 ttndfllad el sale. p!u' lnterlll. MORTGAGE SAi.£- Deteiul • bMll IT!lde In th.a c:cmdilions Of a mortgage made -Aaron s, Ellllerdlf llKI Sharty D. E111tefdlir, Hualland Md~. ciriglr.al mo1lg1;cr{s}, lt1 Mortsa!la Etectronle Reg;isWllOn

COUNTY OF OAl (dial have die e!li:ct of law) as well as all appllcable llnal, non""l'peallble Judicial opinions. ()) "Community Aaodallan Dues, Fe11, and Asseslments" means all dues, fees, ISSl!SSments and other charges dial are lmpvled on Borrower or the Property by a condollllnlom assoctau... homeownen assoolaUDD or similar

....-tlon. "llledroale FluubTrauter" meens any-Df fundl, olher

lhan a transaellnn orfslnated by cheosls nf current clato and rwonahle estimates of expendltum of futwe Bscrow l!tms or .a-lse In acconlance with AppllcaJJle Luw. The Funds shall be held In aa lnsUlulloo whose depodll 8nl lnnred hy a l'eileml ageacy, WU11menlallty, or eaHty (hlcludlns Leader, If Lender Is an lollflhdion whose deposits are ao Insured) o• In any Federal Home Loso l!auk. Lender sbaJI apply the Funds to poy tba 11r aad Lendercen ogre• In writing, however. lbet la-I shall be paid on the Funds. Lender sboll Bfve to llDJTOwer, wllllout cJmrse, an oonual accounting el the Funds as raqldred hy Rl!SPA.

MICHIGAW-SfMh F'amlly-f'mnitfe M11.01Fi'OOdle Mae UNIFORM INSTRUMENT· MERS foma 3023 01161 ~ 4of13

P••~

5 of 20

IInlllllHlllllllllllllllllW!lllillllllllll~lllllllllmlll II J!;llJ. ACS-11S994R ......188B-lt Uilrlr"wic• ICPt•nbawa· llMht•l'lllW .... -'-~i'

L. 4593 p..,:..311.

The,__"

MICHIGAN-..Sl~Je Famlty.. Fannl1t Mu/Freddie Mao UNIFORM INS'TRUMENT • MEAS Form 3023 01f01 Pag&S af13

.

'•

.

..::... ,,

lf lhere II a surpla5 of Funds held ln escrow, u defined under RESPA, Londer shall acco11111 IO Bonower for lhe .....,filnds In ...-..:ewllh RESPA. If there ls ashonase ofl'ullds held la llCIVW, udeflned under RESPA, Lander shall notify Borrower as required by RESPA, nnd Bomiwarshall pay lo Landerlhe BlllQUDI •""""YID make uplheabom&tln acconlaucewllh RBSPA, bul In DO mnre lhaa 12 monlhlypaymeob. lfllterallad1liclencyof Funds held ln """", u dollned wuler RESPA, Lander shall nottfy Bonower., '"'JUlt1!ll by Rl!SPA, and Bonuwer shall pay IO Lender lhe amount necmaey ID makeup lhe deRdency lo acc'""8ncewllh RESPA, hPl In no more dim 12 molllhly ~..... Upoa paymenl lnfUll ofeBsmns secured by lhts Secarily 1...........1. LandersheB prompdy refund IO Bomiwer ODY Funds held by Londer. f, Clwpi; Liem. llorrowenhall po.y charps, llnu, and imposllfllns atldbulabln lo lhe ProPHIY which cen atlalll pdodly over dl!s Sec:udly Wttument, lea""'old Jll\\'llltllls or ground renfS on lhe Property, If any, and Commumq Aasodallnn Dues, Fe.,, and AssessmenlS, lfany. Ta the .....t dw th"' Items am l!scraw Rems. Borrower shall pay diam In the m11111er provided In $ecHnn 3. llonvwer shall pmmptly dlscharp Ill)' llen wlllch llas priority over this Secwily Jnslnlmeal unle51 Bonuwer: (I) agrees In wrlllng ID the payment oflbe obllgatJon secumd by Ille lien In a mmner acceptable to Lander, but only so long u Bonuwer II performia& soch agreement: (b) cnnlests the llen In good &Ith by, nr del'!nds agolnst enlbtcementof lhe lien Jn, legal pruceedlqs wblch In Lender's opfnloo operate to pmvenl the eallm:emenl ofthe lien whlle lhase proc"""'

rights under tllls Securily lnslroment. The proceeds of any awud or claim far damages tr.at are attrfbufllhle to the Impairment ofLeadar's lntenst in the Propeity are hereby uslgned and sl1all be po1d to Lsoder. AU Mlsctllsoeous Proraads thilr are ant applied to tMloratlon or repair of the Propeny shall be applied In the

onler provided far In Sectloo 2.

12. Borrower Not Releuod; Farlleannco By Leader Not a Waiver, 111dell5ion of the time far payment or modillc:aJlon of amortization of the sums .......i by tllls SoaJrilf lnslrwnent groted by Leoder to Borrower or any Su-In lnten!sl of Borrowersball nm operate to release the llablllty of Borrower or any SUcCISSOl'S In blterest of Borrower, Lender shall not be required In commence prnaoedlnp tpJnst any Suc:co"°' in llllerest of llorrower or to relbse to -od tblUI l'or ~ nr otherwise lllOdll'y amo- of the sums secored by Ibis Secorllf lnslrulnenl of any d""""1d mde by the original BonowornranySucces•OJSfn lntewr of BurrOww. AIJy fnrbearance by Lender In exerdslng any rfsht or nmedy lnclodlng, wlthnul Umllallon, Lendor'• accep1111ce of paymen1dto111 thlnl penom, er!llll11 orSumsaon lo Interest of Borrower or In unounts less llw1 tire ll!lOWll then doe, shall not Ila a waiver of Df pt0clude the of 1111 r!Pt or remedy. 11 Joint oadSewn!Llablllly; C:O.dgnerl: s-nondAldJnsllound. Bonoweroovenan1>and aps tlrelBorrower'sollllgaUons andllal!llltysball bejolal andsaveral. However,auyBorrowerwho..,..thlsSecutlty laslrnlDoDl but dues not execute the Note (a 'co-Jigoer'?: (I) lo aHlgnlng thb Secorll11.......,.tonly to mortsage, gnmt ud convey the co !dgner's lntewt In the Pmpeny uoder the lllnns of lhis Socurllf lnstnrmeol; (b) lo not penonally ohUpted to pay the IUlllS secu...i by this S_.ly lnstnuneol: Sod (c) ogrees thsl Leoller and any oilier Bonvwercan..,.ato exteod, modify, forbear or make any K""11modalioas with reprd to the tenmof ibb Security IDatromeot or the Note wllhout the co-signer's """"'11. Sufljec:I lo the provlsloos of Section 18, ony Soccmsor In Interest of Borra- - ......,. Borrower's obflptlmrs ..der this Securllf imtrumellt In wrillng, and Is appmved by Lender. Wll oblaln all of l!Grrower'srfShts ond beneftls under this Security lnatrumenl. Bormworsliall not be roloased lhlm Borrower'a oblJpUOns and lilhillly underthlsSecurttylnstmmeolunI.,.LeoderapeslosodireleaselnwriUna. 'Ihec:oveoonlsaml_...,..ofdils Se
MICH)QAN-$ingile Famlly..•Fsnflit Maeffreddlo Mac UNIFORM. INS1'RUMIENT M£RS FCdml302301/01 Ptlgo11 af13 m

.........

PDQ••

12 of l!fl

m illllllDlllll!llllftllUMIRIHWDlllllHlll!lllllllle :::.il,:O ~~:=:c::t::= w.llh~•n1111

L· 4593 P-511

_...hleurredln punulng then....U..proridetllnlhls Set:tion22, lndudlng, butnotUmltod to, re1111111111do

ottomeya' &es ...i casts of title mdenao.

the_..

lfl.mderlnvalllll of sale, Lemlu shollglve nodce of ale to Ban:owor In the llWllll!l'provided In Section 15. Loader """11 pabllsll llld paot the oodce of ..ie, and the Property sholl be sold in t h e - • pnscdhed IJy Applicable Law. Lemler or lb cla1gnee ""'Ypurdwe the Pmperty at any safe, The proceeds of the sale tbaD b. .pplied In tllo lllllowlng order: (a) lo .U expenseoaf thesale, indutllng. but not limilld to, .......bkaltanleJS' feet; (b) to .U sums secured hytbls S..Urllylnllrument;and (lcdness Is evidenced bv Borrower's note dmed JANUAltY :U. 200! nnd e.~ions and renewals thereof (herein uNotc").. provldlnt rOr inonthly instatlmcn1s or principal and inl~resl, ·with lhe balance or111e indebtednesa. if not sooner paid, due ond payable on FEBRUARY 1, 2025: TO SI?CURB to Lender the repayment or the indebtedness cvide11ced by lite Nole, wilh inlera:t thereon: the payment or all other su.111&, with intertst tlleRX)lt. advn.nccd in accordance herewith to protect the securily of Ibis Mmtgu.ge; and the pcrf'onnancc of' the covenants and agrooments or Bommer hcR:in conta~ Bornnver docs ltereby mon-. l!l'llnt and convey to Lendor, ,,;lb poMt or sale, the followmg described plllflClf!' IDf any delnand made by t11e orislnal Borrower and Borl'O\\-cr's sKCCCssoIS Jn inlere&t. Any lbrbearontc by Lelldi:r in cxen:tsjng any rtghl or remedy hereunder: or othenvise affbrded by applicable law. shall ROI be a waiver or or preclude the e.'ierclse of an,v such rigl11 or remedy. 11. Successota and Assigns Bound; Joint and Several Liuhility; C&-algners. 1110 cownanls und agrccn1cn1s herein mntaimxl shall bind, and t1ac rights bcrcwulct slta11 iouro lo, Ille reapei;Uve successors and assigns of Lender and Borrower~ subjec'l to tflc; provisions ot paragraph 16 hereof. All CO\'emmts and agreements of Borrower ~ball be joint and scvcml. Any Borrower who ..o-slsns this Mortga:Jet but does not excc;iule the Note. (a) is co-signing Ibis Mortgage only to 1nartgage. grant and convey that Borrower's Interest in lho Property to Lender under !he lcnna of this Mortsaao. (b) is not pemma!ly liable on tho Note or under this MortSRIC, and (c) BgRCS that Lender and any olher Borrower ltm1andcr muy QN~ to e:c.tend, lllodit)', f'orbear~ or make any o~ aocommodotions with regard lo tbe terms or lhis Mortgage or the Note with011t tbal Borrower's consent and without releasing that Borrower or modifyh1g this Mortgagt as to lhnt Borrower's interest in the Property. 12. Notice. Bxoept lbr any nolic:c required under applicable law to be given in another m11nner, (a) any notice 10 Borrower provided for in this Mortaasc shall bi:: given by delivering it or by mailing such notice by certified mail addressed to Borrower at the Propcny Ad dross or et ruh 01l1cr flddRISS us Borrower 1nay designate by no1lcc lO Lender us piovlded bcrtini. 11nd (b) Bii)' notice to Lender shall be given by certified mail to Lcindc...s address stated hen:in or lo sach other a~s as Lender may designate by notice to Borrower as provided. herein. Any noricc providod 'tbr in. this Mortgage shall be deemed to havo been given lO Borrower or Lender wltcn given in the 1nannerdesignatod. herein, 13. Governing Law; Se\V•bllhy. 'the state and Joc81 laws applicable to l11Js Mortsaae shaJJ be cl1e 1a'vs of the jurisdl.ction in which the Property is located. The foregoing scn1cncc sbull not limk the applicability of Federal lmv to lhis Mon.gage. In dte even111ui11111y provision or clause oftbis Mongage or Ille Note conflicts will• applicable hlw, suM conOicl shnlt not llf'fccl otbcr provisions of l11is Mortgc1ge or •he Note which c:1111 be gl\'ell cnect wilhout the con Riding proYislon~ and to this end 1bc provisions ofthfs Mon.sage and tlw: Nole arc declared 10 be severable. As used herein, "costs", ''e.'CJJCll!CI" and "auomeys' fees" include all sums to the cxteru not prohibited by applicable ID\V or limited borcin. 14. Borrower's Copy. Bomnver sluill be furnished a confonncd copy oflhc Note and oflltis Mortgoge at the time of C.'WC'UtiOn or after rmmlalion hereof. ts. Rehabilit1ttion Loan Agreement. Bomnvct shall fulfill all of Borrower's obligations under any homo rehabilitation, bnp.rowment, repair. or other loon ogrcemon1 which Borrower e11ters into wilh Lender. Lender, at Lcllder's option, may require Borrower 10 txeeute and deliver to Lender, in a form acceptable ao Lemler, an asqnn1cnt of any rights, claims or deft:nsos which Bomnver may have asainst parties \IAto supply labor. materials or services in conncetlon wlth improvements inadc to 111G Ptop0rty. 16. Trnlfu of the Pro1lerty or a Beneficlal Interest il'I Borrower. 1r all or any part of 1he Properly or any interest in it is sold or imnslCrrcd (or if a beneficial tnteicsl jn Borrower is sold or 1ransll:rrcd and Borrower is not a natural person) wUllout Lender's prior wlittcn. consent. Lendor 1nay, m Its option. require immediate payment in fbll of aU sums aecuml by this Mortgaac. However. 1his qMion shall not be e~crciscd by Lender ir exercise is prohibited by ftdem1 law· as of n10 date or 1111! Mortaage. If Lender e~rcises CILis oplinn, Lender shall give Borrower nodce of aceeleru1ion, The notice shall provide a period of not less than 30 duya ftom 1he date 1110 notice is doliv«1red or 1nailod willdn which Bono~r must pay all sums cec11rcd by Ibis Molfgage. If Borrower fails to lJaY th~o &wns prior to the O."Plntion of this period. Lender may Invoke ony retncdies pcnnlttcil by this Mortgage witl1cu1 runhcr notice or deinand on Borrower. NON-iJNJFORM COVENANTS. Borrower nnd Lender fbl'lher oovenan1 arid agree as follows:

P11gt1I

mm11m1111111111111111m11m111111~1111~u 91 AE:,.6:n.e:_

:;:;::.i11• Mahttn•~·

$ uf 1

..,.,,,....... , L• 4454 P.. 733

17. Acceleration; Ra11edlet1. £xcept as prodded In paragraph 16 hi:rcof, upon Borrower's breach or any covenant or agteement of' Borrower In tbl11 Mortgngc, lndudlng the covenum1 to pay wlM!n due 11111 sum11 secured bf tbi&: Mortgage, Lender prior to accelcratlon aha.II mail notice to Borrower u provided in p•rqrupb 12 hereof specll)'fng: {I) tho breach; (2) tbe at:don required to cure 1.ucb breach; (3) a date, 11ot les& than 10 day11 f'mm the date the notice is mailed to Borrower, by which 111ch brc1eb must be cured; and (4) that failure to cure 1uch breach on or befora the date ap:elRcd In tile notice mil)' retiuU In accelet•rloa of the 1um1 llCCUrcd by tbl1 Mortgage .and aale of the property. The aotlee lballl f'Urther inform Bomnver of the right to rein.date after 11.mleration and •he right to bring a court action lo usert tbe non-- es:isteace of 1. dcfa&alt or any other ddeme of Borrower to au:celetatiOJI and 1111e. If the breach i11 not cured on or before the dale spei::lftell in the notice, Lender, at Lender'ic opdoh, mil)' declare 1111 of the sums leCllred by this Mortgage te be bnmedlately due and pasable without futthet den1111:d-and may invoke the power of 1ale hereby crated aod any other remediel 11ennitted h1 applicable law. Lender man be entitled to coUa:t all reasonable eosh and npenrcs incurred in punuing the ramedles pro"Yided in thlJ paragraph 17, including, but not limited to. reasonable attorneys' fen. Ir Leader invoke1 lhe power of ftle, Lender 111111 maU a COP)' or a notice of sale co Borrower ill the. manner pmvidetf in parqNph 12 ben:of. Leader •hall pubHlh and pmrt •be nodce of sate and the Pruperty I.ball be sold In the manner preliCrlbed by 11.1•plfcablc law. Lender or Ledder's desia:nce mi&,y purdause the: Property at an)' 11a!e. The pruceeds or the sale. sh11ll be applied In the &Jllowlng order: (a) to all reuoaable com and e~pcnse1ofthe1111le,, lncltufm!J., but not limited t~ reasonable o.ttorneyrl reet; (b) w all su1111 secuml by this Mortpge; and (e) the excc!jJ,, if any, to the penion or 11enions legally entitled thereto.

18. Borrower's Right IO Reinstate. N'ot\\'ilhstandlng Lender's acc:clcralion of tl1c sums secured by 1his Mortgage due to Bommrer's breach, Bonower shall have the ri&11110 have any proceedinua begun by Lender to enforce this Mongage di&e0ntinuad at any time pl'ior ID tl1e earlier to ot:Qllr cf (i) !he Mh dny before !ale cf lho Propcny pursuanl 10 the pon~r of tale conlBlncd In !his MO"- or (Ii) onll)' otajudjpncnt enlbrcing lllfs Mon.gage if: (II) Borrower PB)'S Lender an sums whicb would be then due imdcr tltis Mortgage a11d lhe Nole had no a~leration occurred~ (b) Borttwcr cures all breaches any olbcr covemlnl& or qrccmenl& of Bonowcr contained in this Mortgage: (c) BorJO\ver pays all reusonable expenses incurred by Lender in enforc:ing the CO\IQDanrs and asreemon1s ot Borrower conmlnc:d in 1hts MOl'lgagc, and in cmt'brcins Lcnden. rc1t1edies as provided in paragraph 17 hereoJ:, inc1udJng. but DOI Jbnited to~ reasonable altomeys1 l'ccs; and (d) Bcrrower

or

talws such action as Lender may reasonably require to assure that the lien of tllls Mongagc. Lender's int~ In the Property and eorrowe~s obligation to poy the sums .......i by this Morlgoge shell cxmtilWO unimpaired. Upon cuCb payment and curo by Bomlw
.

'

EXHIBIT A

Fiie !'lumber - Al'IN657754A Legal Description: Lot 70 and the South 4 !eat of l.ot 71, Lay Garden Subdivision, as mcordad In Llbor &, Page 31 of Plats, Washtenaw COunty Records,

-Ii- /1-t>J..-301.f-O/'j

®

,,

OF'f"JCtAL B£'l'l.

i.1nto111•111 ea.,

m

L-44'76 P-983 "'"' "'"""' P9991 I of 2

m11111a11m1111n11mm111111mn1111111•1 AtMi84SH2--AS1'!U

,,,,,,....... • L• 1416 P- 9113

..,,.....,, .,,,,.....,, """''""'

CORPORATION ASSIGNMENT OF MORTGAGE FOR VALUll. RECBlVBD, dte urulellllgned h""bY grants, uslgnB, .... transie.. to: M!!!'lpl!e

Remtraticm Sp!!ms, lne.. its sueemora and asslens. P.O. Bpg; 2Q2G, i'lint. Ml

m..1ron1e

48!01"2026

all bcneflolal Interest under that Mongage Dated: JANUAllY 24, 2005 Bxeeuted by: AAllON S. l!AS'l'ERDAY, AND SHERRY D. EASTERDAY, l!IJSDAND AND WIFI!,

Mongagnr, "" HURON VALLl!Y FINANCIAL INC., M•i18•see. arul n:oorlled .. Document No. - - - - • on f-tf·lil.tJtJr In Book •N:t>V •Page ")$3 , of Official Recon!s In lhe County Recorde,. Omce of WASllTENAW Coullly, Ml!ClllGAN, deso.rlblng land therein as: SEE ATTACHED SCHEDtJLE HAit

Pa,.,, m 11.Q2.304-01s Toaetber with the mote dletein described or referred to1 lhe money due mil to btcome due thereon with intereat, and all rl11Lls accrued or to acx::mo under said Monpge.

/Jvi----

HURON VAii.LEY FINANCIAL INC,

Witness:

By Aa;ent for Lend .

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This day of pmonaliy came beforo mo, lhe undersigned Notary Public, \;: who, bclDg by me duly awom, say& that &be knows dte ~ IOal of BURON VALLI!\' FINANCIAi. INC., and is acquain!Cd widt '.•···:;;;;; who is the Vice Pmldonl of sold Umited LiabHley Compsny, lllUl lhat she, tbe said' ~ • is the Asat. Secretary of the said Limited Liability Company and 1aw ibe said Vlge Prel$igre~oreaoing insuument, and 1aw the common seal of lhe said LilDited Liability Company afflXOd 10 said inauumen\ by aaid Vi~ President und thMC she, the 'aid Asst. Secretary, signed her name in atte1tadon of the execution of said Jmuument in the pNSeDCe or said Vice Presideht of said Limited Liability Campsny.

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Witness my hmd and offieial GeaJ this

When-Recorded Moil To: FIDELITY NATIONAL-Ll'S :P.O.Box 19523 ,/Irvine, CA 921>23-9523 DtltEC

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Loan Number 2080050149420

MIN• 100077910003348444 GMD 0622 (3!>7)

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Fiie Number - ANN657754A

Legal Description: Lot 70 and the Soulh 4 feet Of Lot 71, lay Garden Subdivision, as recorded In Llber 6, Page 31 of Plats1 Washtenaw County Records.

Exhibit F

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CORPORATION ASSIGNMENT OF MORTGAGE FOR VALUll RECl!IVBD, Ille Wlllemigned hereby gran11, 1Ssigua, and lrellefen lo: Mo!'lpa! Reglstradon Systans. Ine., its SU«elBDl'fi amt assigns, P.O. Box 20%6. ll'lint. MI 48500.·2026

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all bonoficial intomt under that cenalD Mon111e Dated: JA.NUAJlY 24, 2005 Bxeeated by: AARON S. l!ASTEIIDAY, MID SHERRY D. l!ASTERDAY, lllUSDANDANDWIFE, Monpgor, 1o: HURON VALLEY FINANCIAL INC., Metlglgae, D1111 '"'orded u Document No. =--c-:--:--:' on /-,tf-IJ.IKJS" iu Bnnk Y.'f§V , Pase 783 , ofOll!cial Rennnls iu the County Roconlenl Oftlce of WASll'l'JINAW County, MICIRGAN, deoorlblns land tbaroin as: IEB A'ITACHEDSOIEDULE 11A0

Toieiber

with the note 1berein deacribed er referred to, Ille money due amd io beoome due thereon with interoJt, and all rialus accrued or to aproved by the Michignn Slnte Court Admini~trnlio11

STATE OF MICHIGAN CHARTER TOWNSHIP OF YPSILANTI OFFICE OF COMMUNITY STANDARDS

ORIGINAL-ISSUING COURT !ST COPY ·TOWNSHIP ATTORNEY 2ND COPY ·SERVE 3RD COPY ·ISSUING JUDGE

AFFIDAVIT FOR ADMINISTRATIVE SEARCH WARRANT

ADMINISTRATIVE CASE NUMBER: CASE # EN 14-0292

days, and the new property owner HSBC Bank USA has been sent notice to register the prope1ty as vacant, and has failed to contact Ypsilanti Township to register said property per the Vacant {'roperty Ordinance. Affiant believes there are Property Maintenance and Building Code Violations within due to the length in time in which the prope1ty has remained vacant. k) Affiant requests authorization of this warrant to enter onto the premises to investigate and photograph the conditions inside the place to be searched to facilitate code enforcement action and in preparation fur potential legal action against the property owner. Further the Affiant sayeth not.

AFFIDAVIT AND SEARCM IVARRANT, Fonn No. DCV23 I Revised 12/81

Ap11roved by lhe Michigan State Court Administrnlion

STATE OF MICHIGAN CHARTER TOWNSHIP OF YPSILANTI OFFICE OF COMMUNITY STANDARDS

ORIGINAL- JSSUING COURT !ST COPY· TOWNSHIP ATTORNEY 2ND COPY· SERVE 3RD COPY· ISSUING JUDGE

AFFIDAVIT FOR ADMINISTRATIVE SEARCH WARRANT

ADMINISTRATIVE CASE NUMBER: CASE# EN14-0292

This affidavit consists of 4pages.

Date·

Reviewed by:

Angela King 2-9-15 @3:00 pm Townsllip Attor11ey/Prosecuto1·

Subscribed and sworn before me on:

Date/Ti1ne

·2/111/t/ ' Dateffime

Al'FIDAVIT AND SEAltCH WARRANT, Form No. DCV23 I Revised 12181

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Approved by tlie Michigan State Court Administration

STATE OF MICHIGAN CHARTER TOWNSHIP OF YPSILANTI OFFICE OF COMMUNITY STANDARDS

ORIGINAL- ISSUING COURT !ST COPY. TOWNSHIP ATTORNEY 2ND COPY· SERVE 3RD COPY - ISSUING JUDGE

ADMINISTRATIVE SEARCH WARRANT

ADMINISTRATIVE CASE NUMBER: CASE# ENl4·0292

Search Warrant TO THE BUILDING OFFICIAL OR ANY PEACE OFFICER: Jill Kulhanek, affiant, states that:

1. · The 1>erson, place 01· thing to be searcbecl is described as and is located at:

The single family home located at 881 Allen Road, Charter Township of Ypsilanti, Washtenaw County, State of Michigan, further identified as parcel ID number K-11-02-304-018. TI1e place to be searched is a.single family home; the house at 881 Allen Road sits on the west side of Allen Road. The building is constrncted of red brick, with a covered front porch. The front do01· has a white screen door and a red entrance door. TI1e numbers 881 are black in color affixed to a white wood porch pole to the left of the front door. .2. The PROPERTY to be searched for and scizecl, if found, is specifically described as:

View and photograph all exterior and interior spaces of the place to be searched fo1: evidence of violations of the Ypsilanti Township Vacant Prope11y Ordinance, Ypsilanti Township Zoning Code, Prope1ty Maintenance Code, Michigan Building Code and fire safety codes enforced by the Building Official of the Chaite1· Township of Ypsilanti.

AFFIDAVIT AND SEARCH WARRANT, Form No. DCV231Revised12/BI

AJ).J>fO\'cd by lhe Michigan Stale Court Admit1istmtion

STATE OF MICHIGAN CHARTER TOWNSHIP OF YPSILANTI OFFICE OF COMMUNITY STANDARDS

ORIGINAL- ISSUINO COURT IST COPY· TOWNSHIP A'M'ORNEY . 2ND COPY; SERVE 3RD COPY - ISSUING JUDGE

ADMINISTRATIVE SEARCH WARRANT

ADMINISTRATIVE CASE NUMBER: CASE # EN 14-0292

IN THE NAME OF THE PEOPLE OF THE STATE OF MICHIGAN: I have found that probable cause exists and you are commanded to make the search and seize the descl'ibed property. Leave a copy of this warrant and tabulation (written inventory) of all property taken with the person from whom the property was taken or at the premises. You are ful'ther commanded to pl'omptly !'eturn this warrant and tabulation to the couit. .

Issued: 7

AFFIDAVrr AND SEARCH WARRANT, Forni No. DCV231 Revised 12181

,t(!S-t£:.-:Barno.

Exhibit J

Approved by the Michignn 'Stnte court Adminislrntion ·

STATE OF MICHIGAN CHARTER TOWNSHIP OF YPSILANTI OFFICE OF COMMUNITY STANDARDS

ORIGINAL - ISSUING COURT IST t"OPY ·TOWNSHIP ATI'ORNEY 2ND COPY ·SERVE lRD COPY· ISSUING JUDGE

ADMINISTRATIVE SEARCH WARRANT

ADMINISTRATIVE CASE NUMBER: CASE# EN14-0292

RETURN AND TABULATION Search was made on

@- /0' 15

and the following property was seized:

Date

, [ ] continued on reverse side

\Vib1css

Name·

Tabulation filed: _ _ _ _ __ Date

AFFIDAVIT AND SEARCH WARRANT, Fonn No, DCV231 Revised 12181

Exhibit K

vupi:;1vwv1

Office of Community Standards

BRENDA L. STUMBO

Cferli, KAREN LOVEJOY ROE

Ordinance Department 7200 S. Huron River Drive Ypsilanti, Ml 48197 (734) 485-4393 ytown.org

'l'reasuwr LARRY J. DOE

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

STATE OF MINNESOTA

DISTRICT COURT FOURTH JUDICIAL DISTRICT CASE TYPE: OTHER CIVIL

COUNTY OF HENNEPIN ---------------------------------------------------------Charles Rush and Leona Rush,

Court File No. 27-CV-12-22357

Plaintiffs,

Honorable Edward T. Wahl

vs. Vision Property Management, LLC and PF1, LLC,

AMENDED COMPLAINT

Defendants. ---------------------------------------------------------SUMMARY STATEMENT 1.

Defendants sold Charles and Leona Rush a home contaminated with lead and

financed with a usurious loan. Defendants are in the business of selling homes and originating loans to facilitate the sales. As lenders and sellers, Defendants must follow simple rules meant to protect families like Mr. and Mrs. Rush and their six children. Defendants failed to follow those rules. As sellers, they knew the home contained poisonous lead-based paint hazards, but they withheld that information and did not provide Mr. and Mrs. Rush with a copy of a readily available report showing hazardous lead conditions. As lenders, they did not make disclosures showing the terms of the loan. Defendants’ conduct left the Rush family with a condemned home and without the investment they put into it. Mr. and Mrs. Rush ask the Court to award damages and penalties. PARTIES 2.

Plaintiffs Charles Rush and Leona Rush are a married couple who live in

Minneapolis, Minnesota together with four children and two grandchildren.

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

3.

Defendant Vision Property Management, LLC (“Vision”) is a limited liability

company organized under the laws of South Carolina. Vision buys and sells post-foreclosure real estate throughout the United States, including Minnesota. On its own behalf and as an agent for PF1, LLC, Vision sold the property at issue in this action to Mr. and Mrs. Rush and extended credit to them in order to finance the purchase. 4.

Defendant PF1, LLC (“PF1”) is a limited liability company organized under the

laws of South Carolina. PF1 holds title to real estate, including real estate located in Minnesota, as part of a joint enterprise and joint venture with Vision. PF1 was the record title owner of the property at issue in this action at the time it was sold to Mr. and Mrs. Rush. FACTS Defendants’ Business Plan 5.

According to its website, Vision “currently manages the real estate portfolios of

over 20 investment LLCs.” 6.

Vision “has an extensive, expanding list of cash investors and individual home

buyers, especially in high foreclosure cities throughout the United States.” 7.

Vision created PF1 in 2011. PF1 lists Vision’s address as its “Home Office.”

8.

PF1 holds record title to properties marketed for sale by Vision, including at least

19 as of August 2012. 9.

At all relevant times, Vision and PF1 (together, “Defendants”) acted in joint

venture and joint enterprise with regard to the purchase, marketing, and sale of the property and loan at issue in this action. 10.

Vision combines its time with PF1’s capital to market and sell real estate through

“Land Contract” transactions. 11.

Vision and PF1 each authorize the other to act on its behalf. For example, Vision 2

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

lacks authorization to conduct business in Minnesota, relying instead on PF1’s authorization to conduct business on its behalf. And PF1 directs homeowners to make payments “c/o Vision Property Management, LLC.” 12.

Vision and PF1 share in profits made through their business practices. History Of The Property

13.

The property at issue in this action is located at 1618 Thomas Avenue North, in

north Minneapolis, Minnesota (the “property”). 14.

In the spring of 2010, a child who lived in the property as a tenant became sick

from lead poisoning. An inspector with the City of Minneapolis conducted an analysis called a “Lead-Based Paint Risk Assessment,” and detailed its findings in a report dated April 15, 2010 (the “Lead Report”). 15.

The Lead Report showed severe lead-based paint hazards. The City ordered that

the property be vacated immediately until lead hazard abatement could take place. 16.

The property’s owner did not comply with the order. Instead, she ceased making

mortgage loan payments and deserted the property. 17.

In spring 2011, the owner’s lender foreclosed the mortgage and transferred the

property to Federal National Mortgage Association (“Fannie Mae”). 18.

While the property was vacant, vandals broke into the house, removed water

pipes, stole appliances, and destroyed electrical equipment. 19.

On March 23, 2011, a property manager for Fannie Mae ordered a point-of-sale

inspection report from an independent evaluator, as required by Minneapolis ordinances. 20.

The resulting report showed 23 problems that required immediate attention, along

with 40 additional property conditions that fell below minimum requirements. 21.

Fannie Mae did not make the repairs, hired a real estate agent, and listed the 3

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

property for sale. 22.

A lead-based paint inspector from the City of Minneapolis learned that Fannie

Mae intended to sell the property. 23.

On June 28, 2011, the inspector glued a placard to the property’s front door. The

placard stated, “DO NOT OCCUPY,” and warned that the property required lead hazard abatement before anyone could live in it. 24.

In September 2011, Defendants retained a real estate agent, Gail Strom, to

evaluate the property and later, to market it for sale. 25.

Mr. Strom inspected the property on about September 30, 2011, and took pictures

of the property’s exterior and interior. 26.

Mr. Strom’s pictures showed that the “DO NOT OCCUPY” notice from the City

of Minneapolis remained posted on the property. 27.

Mr. Strom sent the pictures to Defendants.

28.

Following Defendants’ instructions, on October 3, 2011 Mr. Strom created an

inspection report of the property. On the report, he wrote, “DO NOT OCCUPY – LEAD HAZARD CONTROL SIGN POSTED.” 29.

Mr. Strom sent the inspection report to Defendants.

30.

As a result of the pictures and inspection report they received from Mr. Strom,

Defendants knew that the property had dangerous lead hazards and as a result, had been condemned by the City of Minneapolis. 31.

On October 7, 2011, Defendants bought the property from Fannie Mae for $9,690.

32.

On Defendants’ behalf, Mr. Strom advertised the property for sale and attached a

lockbox to the front door. 33.

A sign at the property instructed interested buyers to call Vision. It said that 4

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

buyers could obtain the property by making payments of $390 per month. The Rush Family’s Purchase Of The Property 34.

A few weeks later, while driving through their north Minneapolis neighborhood,

Mr. and Mrs. Rush saw Vision’s “For Sale” sign at the property. 35.

The lead hazard warning placard was gone.

36.

Mr. and Mrs. Rush called the telephone number on the sign and expressed interest

in purchasing the property. 37.

The Vision representative they spoke with did not tell Mr. and Mrs. Rush about

either the presence of lead-based paint or the condition of the house. 38.

Vision representatives told Mr. and Mrs. Rush that if they wanted the property,

they must make a down payment and subsequent monthly payments to Vision. 39.

On about November 1, 2011, Mr. and Mrs. Rush mailed $1,200 to Vision.

40.

Upon receipt of the $1,200 payment, Vision representatives told Mr. and Mrs.

Rush that they could use the lockbox to enter the property and that they could begin living in it immediately. 41.

On November 7 and 8, 2011, Defendants’ real estate agent, Gail Strom, informed

two different Vision employees that a family occupied the property. 42.

Defendants did not provide Mr. and Mrs. Rush any disclosures—at any time—

regarding the lead hazard condemnation, the condition of the house, the terms of the purchase agreement, or the terms of the financing agreement. 43.

Defendants did not comply with any of the Minneapolis point-of-sale inspection

ordinances. They failed to have the property evaluated by a licensed evaluator, they failed to obtain a disclosure report, and they failed to make any disclosure report available when they showed the property to Mr. and Mrs. Rush. 5

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

44.

Defendants could have obtained the Lead Report by means of a short telephone

call to the City of Minneapolis. 45.

Defendants did not provide Mr. and Mrs. Rush a copy of the Lead Report.

46.

Defendants did not provide Mr. and Mrs. Rush the lead-based paint information

pamphlet required by federal regulations for the sale of all housing built prior to 1978. 47.

Mr. and Mrs. Rush were inexperienced with real estate law and real estate

transactions. 48.

Shortly after moving in, Mr. and Mrs. Rush realized that the property did not have

functioning plumbing, heating, or electricity. 49.

Mr. and Mrs. Rush purchased a new electrical box for the property, at a cost of

nearly $1,500. Mr. and Mrs. Rush also replaced plumbing at their own expense and with their own labor, and put a new furnace into the property at a cost of nearly $5,000.1 50.

In November 2011, Vision mailed Mr. and Mrs. Rush a document and instructed

them to sign it. The document was entitled “Agreement for Deed” and a copy of it is attached to this Amended Complaint as Exhibit 1 (the “Agreement”). 51.

The Agreement provides for a purchase price of $49,500, to be paid through a

down payment of $1,200 and the remaining $48,300 “shall be paid according to the terms of a Promissory Note of even date with interest” at a rate of 9.0139%. (Ex. 1, at 1.) 52.

Vision included a document entitled “Promissory Note” with the Agreement, a

copy of which is attached to this Amended Complaint as Exhibit 2 (the “Promissory Note”). 53.

The Promissory Note claims to be secured by the Agreement, and states that Mr.

and Mrs. Rush must make 240 monthly payments of $640 to PF1, “c/o Vision Property Management, LLC.” (Ex. 2, at 1.) 1

Third parties paid for some of the improvements on the Rush family’s behalf.

6

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

54.

Defendants also included a document entitled “Lead Based Paint Rider” with the

Agreement, which stated that Defendants “have no actual knowledge of the presence of leadbased paint and/or lead-based paint hazards at the Property.” 55.

On January 13, 2012, Mr. and Mrs. Rush signed the Agreement and the

Promissory Note. 56.

In March 2012, a city lead hazard inspector learned that Mr. and Mrs. Rush and

their family lived in the property. 57.

On March 9, 2012, the inspector sent a letter to PF1 demanding that it remedy the

presence of lead hazards in the property. 58.

Defendants refused to pay for the lead hazard abatement. They insisted that the

expense was the Rush family’s responsibility. 59.

Mr. and Mrs. Rush learned that making the property safe would cost thousands of

dollars and would require them to leave the property during the procedures. They did not have the money and had nowhere to move their large family. 60.

Mr. and Mrs. Rush asked for their money back, but Defendants refused.

61.

The Rush family moved from their home on short notice, just before the City

enforced its threat to condemn it. 62.

Mr. and Mrs. Rush were forced to find alternate housing, at the best deal they

could find: almost $1,300 per month in rent, nearly 50% of their income. 63.

Within weeks, Defendants re-listed the property for sale to another family.

COUNT I Violations of the Residential Lead-Based Paint Hazard Reduction Act of 1992 42 U.S.C. § 4852d; 24 C.F.R. § 35.80 et seq. 64.

Mr. and Mrs. Rush re-allege all prior paragraphs of this Amended Complaint.

65.

The property at issue in this action is residential real estate, built prior to 1978. 7

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

66.

Defendants sold the property to Mr. and Mrs. Rush.

67.

Defendants failed to provide Mr. and Mrs. Rush with the Lead Report before Mr.

and Mrs. Rush became obligated to purchase the property. 68.

The Lead Report was available to Defendants and pertains to lead-based paint and

lead-based paint hazards in the property. 69.

Defendants did not provide Mr. and Mrs. Rush with any lead hazard information

pamphlet approved by the United States Environmental Protection Agency (a “Lead Pamphlet”). 70.

Defendants knew of their obligations to provide a Lead Pamphlet as well as any

available report pertaining to lead-based paint and lead-based paint hazards in the property, but despite that knowledge, they did not perform their obligations. 71.

Prior to November 1, 2011, Defendants knew that the property contained lead-

based paint and lead-based paint hazards. 72.

Nevertheless, when they sold the property to Mr. and Mrs. Rush, Defendants

stated in writing that they “have no actual knowledge of the presence of lead-based paint and/or lead-based paint hazards at the property.” 73.

If Mr. and Mrs. Rush had received a copy of the Lead Report, a Lead Pamphlet,

or if Defendants had informed them of the known presence of lead-based paint and/or lead-based paint hazards, Mr. and Mrs. Rush would not have purchased the property. 74.

Mr. and Mrs. Rush suffered actual damages as a result of Defendants’ failure to

provide the Lead Report, their failure to provide a Lead Pamphlet, and their failure to disclose the known presence of lead-based paint and lead-based paint hazards. In particular: a)

They paid at least $3,000 toward the purchase of the property; and

b)

They paid approximately $6,650 toward material improvements of the property, including the installation of a new electrical box, a new furnace, 8

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

and new plumbing. COUNT II Violations of the Truth in Lending Act 16 U.S.C. § 1601 et seq.; 12 C.F.R. § 226.1 et seq. 75.

Mr. and Mrs. Rush re-allege all prior paragraphs of this Amended Complaint.

76.

Defendants extended credit to Mr. and Mrs. Rush in the form of seller-financing

via the Agreement and the accompanying Promissory Note. (See Exs. 1 & 2.) 77.

The transaction provided for a down payment of $1,200 with financing of the

remaining, $48,300, at an interest rate of 9.0139%. 78.

Defendants extended the credit for personal, family and household purposes. In

particular, Defendants knew Mr. and Mrs. Rush would use the credit for the purchase of a home for themselves and their family. 79.

The credit extended by Defendants is subject to a finance charge and is payable in

more than four installments. The credit carries a finance charge of at least the 9.0139% interest rate and calls for 240 monthly installments. 80.

Defendants drafted and instructed Mr. and Mrs. Rush to execute the Promissory

Note, which states that Mr. and Mrs. Rush would repay the debt over 20 years via amortized payments of principal and interest in the amount of $435.00 per month. (See Ex. 2.) 81.

Defendants regularly extend credit to consumers. They have extended credit as

part of transactions secured by dwellings more than five times during 2011 and 2012. 82.

Defendants did not provide Mr. and Mrs. Rush with any of the disclosures

required by the federal Truth In Lending Act, including but not limited to the disclosures required by 15 U.S.C. § 1638(a) or the disclosure required by 12 C.F.R. § 226.18(j). 83.

Mr. and Mrs. Rush suffered actual damages as a result of Defendants’ failures to

provide required disclosures, in an amount to be determined at trial. 9

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

COUNT III Violations of Usury Statutes MINN. STAT. §§ 47.20; 334.01 – 334.03 (2012) 84.

Mr. and Mrs. Rush re-allege all prior paragraphs of this Amended Complaint.

85.

Defendants extended credit of no more than $49,500 to Mr. and Mrs. Rush in the

form of seller financing. 86.

The Agreement and Promissory Note demand an interest rate of 9.0139%.

87.

The interest rate exceeds the usury rates set by both Minnesota Statutes, section

334.01 and 47.20, subdivision 4a. 88.

The usury limit set by Minnesota Statutes, section 334.01 is 8%.

89.

The applicable usury limit set by Minnesota Statutes, section 47.20, subdivision

4a for the second month preceding the transaction—November 2011—is 7.539%.2 90.

Minnesota Statutes, section 334.03 provides that any contract or legal

indebtedness that violates the usury limit set by section 334.01 “shall be void.” 91.

At the time Defendants entered into the Agreement and Promissory Note with Mr.

and Mrs. Rush, they intended to evade the usury limits. 92.

Accordingly, the Court should determine that the Agreement and Promissory

Note are void, and award damages sufficient to return Mr. and Mrs. Rush to the position they occupied prior to entering into the agreements, of at least $9,650. 93.

In the alternative, if the Court determines that the Agreement and Promissory

Note constitute a contract for deed, Minnesota Statutes, section 47.20, subdivision 13a provides that Mr. and Mrs. Rush may recover an amount up to five times the usurious portion of the interest they paid, or at least $911.26.

2

See Minnesota Department of Commerce, “Home Loan Rates,” available at http://mn.gov/commerce/banking-andfinance/topics/interest-rates/home-loan-rates/ (last visited Oct. 18, 2012) (showing historical rate data).

10

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

COUNT IV Violations of Minnesota Seller Disclosure Requirement Statute MINN. STAT. §§ 513.52 – 513.60 (2012) 94.

Mr. and Mrs. Rush re-allege all prior paragraphs of this Amended Complaint.

95.

At all relevant times, the property was intended to be occupied as a single-family

residence. 96.

In early November 2011, Mr. and Mrs. Rush negotiated with Defendants for the

purchase of equitable title to the property. 97.

Defendants failed to make a written disclosure to Mr. and Mrs. Rush, at any time,

containing facts—of which Defendants were aware—that include, but are not limited to (together, the “undisclosed facts”): a)

All facts stated in the Truth in Sale of Housing report, dated March 23, 2011, a copy of which is attached to this Amended Complaint as Exhibit 3;

b)

The need for a new furnace, new plumbing, new electrical equipment, and new smoke and carbon monoxide detectors, as stated on an estimate prepared for Defendants, a copy of which is attached to this Amended Complaint as Exhibit 4; and

c)

The existence of lead-based paint and lead-based paint hazards in the property, as well as the existence of an outstanding condemnation order on the basis of existing lead-based paint hazards in the property.

98.

The undisclosed facts adversely and significantly affect an ordinary buyer’s use

and enjoyment of the property. 99.

Each of the undisclosed facts must be remedied before the property may be used

for its intended purpose—as a family’s residence—and together, the remedies would cost tens of 11

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

thousands of dollars. COUNT V Punitive Damages MINN. STAT. §§ 549.191 – 549.20 (2012) 100.

Mr. and Mrs. Rush re-allege all prior paragraphs of this Amended Complaint.

101.

Defendants showed a deliberate disregard for the Rush family’s safety. In

particular, Defendants knew that the property had been condemned for lead-based paint hazards, but they told Mr. and Mrs. Rush in writing that they did not. 102.

Defendants knew that the property contained lead-based paint hazards; their own

real estate agent sent them pictures showing a lead hazard condemnation notice posted on the property, and sent them an inspection report referencing the same notice. 103.

Prior to November 1, 2011, Defendants knew that the presence of lead-based

paint hazards presented a high probability of injury to the safety of any prospective purchaser of the property. Defendants’ own lead-based paint brochure—which they claim to distribute to prospective purchasers—states: a)

“IMPORTANT! Lead from Paint, Dust, and Soil Can Be Dangerous if Not Managed Properly”; and

b)

“Childhood lead poisoning remains a major environmental health problem in the U.S.”

104.

Despite Defendants’ knowledge of the existence of lead-based paint hazards in

the property prior to November 1, 2011, and that the lead-based paint hazards presented a high probability of injury to the safety of any prospective purchaser, Defendants deliberately proceeded to act with indifference to that probability. 105.

Evidence that shows Defendants’ deliberate indifference includes: a)

In late September, 2011, Defendants’ real estate agent, Gail Strom, took 12

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

pictures of the house showing a lead-based paint hazard condemnation notice posted on it; b)

Mr. Strom sent the pictures to Defendants;

c)

In early October, 2011, Mr. Strom created an inspection report for the property, at Defendants’ request, and on it he wrote, “DO NOT OCCUPY – LEAD HAZARD CONTROL SIGN POSTED”;

d)

Mr. Strom sent the inspection report to Defendants;

e)

In late October and early November, 2011, Mr. and Mrs. Rush viewed the property with the intention of purchasing it, at least twice, but the lead hazard condemnation sign was gone;

f)

Mr. and Mrs. Rush spoke with Defendants’ representatives many times, in person at the property and over the telephone, but Defendants failed to tell them that lead-based paint hazards were present on the property;

g)

In early November 2011, upper-level management at the Defendant companies accepted money from Mr. and Mrs. Rush, gave them access to the property, and told them that they could move into the property, but still no one from the Defendant companies informed them of the presence of dangerous lead hazards;

h)

On November 7 and 8, 2011, Defendants’ real estate agent, Gail Strom, informed upper-level management at the Defendant companies that the Rush family had moved into the property, yet still no one from the Defendant companies informed Mr. and Mrs. Rush of the presence of dangerous lead hazards;

i)

In mid-November, 2011, Defendants drafted and sent Mr. and Mrs. Rush a 13

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contract for the purchase of the property, a contract that said Defendants “have no actual knowledge of the presence of lead-based paint and/or lead-based paint hazards at the property”; and j)

At no point during the next five months—while the Rush family continued to occupy the home and while Defendants continued to take money from them—did Defendants ever inform Mr. and Mrs. Rush that the house had dangerous lead-based paint hazards.

106.

At all relevant times, Vision acted in a managerial capacity for PF1, with

authority in the scope of its agency to make planning level decisions concerning the sale of the property. 107.

All Vision employees whose actions are referenced in this Amended Complaint,

were acting in a manner authorized by Vision. 108.

At all relevant times, Alex Szkaradek served as a managing member of both

Vision and PF1. PRAYER FOR RELIEF Mr. and Mrs. Rush request a jury trial and ask that the Court: A.

Award them actual and consequential damages of at least $33,531.26 against PF1

and Vision, jointly and severally, calculated as follows:

B.

1)

$4,000 in statutory damages, see 15 U.S.C. § 1640(a)(2)(A)(iv);

2)

$28,950, for actual damages trebled, see 42 U.S.C. § 4852d(b)(3); and

3)

$911.26, as a penalty for a usurious contract, see MINN. STAT. § 47.20, subdiv. 13a (2010).

Award them reasonable costs and attorney fees, see 15 U.S.C. § 1640(a)(3); 42

U.S.C. § 4852d(b)(4); and MINN. STAT. § 47.20, subdiv. 13a (2010); 14

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C.

Award them punitive damages, in an amount to be determined at trial, according

to the factors listed in MINN. STAT. § 549.20, subdiv. 3 (2012); D.

Temporarily and permanently enjoin Defendants from selling the property or

other properties in Minnesota without following guidelines of federal, state and local law; and E.

Award such and other further relief, including equitable relief, as may seem just

and appropriate. MID-MINNESOTA LEGAL AID Dated:

April 24

, 2013

BY /s/ Luke Grundman Luke Grundman, No. 0390565 Michael Fargione, No. 028253 Attorneys for Plaintiffs Charles Rush and Leona Rush 430 First Avenue North, Suite 300 Minneapolis, MN 55401-1780 Telephone: (612) 746-3640 Facsimile: (612) 746-3640 [email protected]

15

Filed in Fourth Judicial District Court 4/24/2013 3:57:32 PM Hennepin County Civil, MN

ACKNOWLEDGMENT Pursuant to MINN. STAT. § 549.211, Plaintiffs Charles and Leona Rush by their undersigned attorney acknowledge that sanctions may be imposed for failing to comply with the requirements of this statute. /s/ Luke Grundman Luke Grundman

1203-0335920-1079260.docx

16

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AGREEMENT FOR DEED

·This /\grement for Deed ls entered Into 011 tllls day lST of NOVEMBER, 2011 between PF l, LLC (here~1after known as tl10 "PARTY OF THE Fffil>'T PART') and LEONA PEARL RUSH & CHARLES JOE

RUSH (hereinafter known as.U1e "PARTY/PARTIES OF THE SECOND PART"). Wltnesseth, That if the PARTYIPARTIES OF THE SECOND PART shall first make. the payments and perform U1e covenants hereafter described PARTY OF THE FIRST PART hereby covenant(•) and agree(s) to · convey and assure to the PARTY/PARTIES OF Ttffi SECOND PART and hlslber/U1eit heirs, executors, admlnlstrators or assigns, in fee simple, clear of all encumbrances \vhatever, by a good and sufficient deed, U1e lot and piece or parcel of land, situated at 1618 THOMAS AVENUE NORTH in U1e County of HENNEPIN, the city of MINNEAPOLIS, Urn State of MIN.NESOTA, and further known and described as follows; to-wit: SEE ATTACHMENT "A" FOR LEGAL DESCRIPTION OF PROPERTY

"·

and the PARTY/PARTIES OF THE SECOND PART h~reby covenant(s) and agree(s) to pay to the PARTY OF THE FffiST PART U1e sum of FORTY-NINE THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ( $49,500.00) In the manner following: ONE THOUSAND TWO llONDRED DOLLARS AND NO CENTS ( $1,ZOO.OO) p!rld at tl1e Sll!ntng of this agtMmllllt nntl tl1e tell'latnll\g FORTY-BIGHT THOUSAND THREE HUNDRED DOLLARS AND NO CENTS ($48,300.00) shalrbe paid according to the tenns of a Promissory Note of even date w1U1 interest at tl1e rate of NINE POINT ZERO ONE THREE NINE PERCENT (9 •.0139%) per annum, paya.ble montltly on tl10 whole sum rematnlng from time to time unpaid; and to pay all taxes, assessments and/or ln1posiiions (Includes such fee.• or other costs 11oni1alifpruil b)" oiWier or bliyer of property such as ground rents, clty/cow1ty miscellaneous fees as they requlte, property vlolatlons and/or fines levied, water/sawer charges, eleclrlcal/gas usage charges, garbage fe