SECOND
MORTGAGE
THIS SECOND MORTGAGE is made on _________, 20__ between
____________________________________, whose address is
__________________________________ (“Purchaser”), and
__________________________________, a non-profit organization, organized and existing
under the laws of Michigan, whose address is ______________________ (“Habitat Affiliate”).
Background Information
On or about the date hereof, Purchaser has purchased from Habitat Affiliate real property
located in the ___________________________, County of _____________________, State of
Michigan more particularly described as:
Insert Legal Description
The address of the real property is:
The payment of the purchase price (or a portion of the purchase price) for the real
property is secured by a first mortgage (the “First Mortgage”) on the real property in favor of
Habitat for Humanity Michigan Fund, Inc.
In order to induce Habitat Affiliate to sell Purchaser the real property, Purchaser has
entered into with Habitat Affiliate the following supplemental agreement(s):
Identify Supplemental Agreements
The foregoing supplemental agreements are referred to herein as the “Supplemental
Agreement(s)”. Purchaser has agreed to secure the performance of its obligations under the
Supplemental Agreement(s) by granting Habitat Affiliate a Second Mortgage on the real
property.
NOW, THEREFORE, TO SECURE to Habitat Affiliate, and Habitat Affiliate’s
successors and assigns, the performance of the covenants and agreements of Purchaser contained
herein and in the Supplemental Agreement(s), Purchaser hereby mortgages, warrants, grants and
conveys to Habitat Affiliate, with power of sale, the real property together with all the
improvements now or hereafter erected on the real property, and all easements, rights,
appurtenances and rents, all of which shall be deemed to be and remain a part of the real property
covered by this Second Mortgage; and all of the foregoing, together with the real property (or the
leasehold estate if this Second Mortgage is on a leasehold) are hereinafter referred to as
“Property.”
Purchaser covenants that Purchaser is lawfully seised 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 including the First Mortgage. Purchaser covenants that
Purchaser warrants and will defend generally the title to the Property against all claims and
demands, subject to encumbrances of record.
Purchaser and Habitat Affiliate covenant and agree as follows:
1. Obligations under the First Mortgage. Purchaser agrees to promptly perform all of
its obligations under the First Mortgage including without limitation payment of the note or notes
secured by the First Mortgage.
2. Supplemental Agreement(s). Purchaser agrees to promptly perform each of its
obligations under the Supplemental Agreement(s).
3. Protection of Habitat Affiliate’s Security. If Purchaser fails to perform the
covenants and agreements contained in this Second Mortgage, or if any action or proceeding is
commenced which materially affects Habitat Affiliate’s interest in the Property, Habitat
Affiliate, at Habitat Affiliate’s option, upon notice to Purchaser, may make such appearances,
disburse such sums, including reasonable attorneys’ fees, and take such action as is necessary to
protect Habitat Affiliate’s interest. Purchaser agrees to promptly reimburse Habitat Affiliate any
amounts disbursed by Habitat Affiliate pursuant to this paragraph 3, with interest thereon at the
rate of six percent (6%) per annum. Payment of any amounts owing under this Paragraph 3 shall
be secured by this Second Mortgage.
4. Inspection. Habitat Affiliate may make or cause to be made reasonable entries upon
and inspections of the Property, provided that Habitat Affiliate shall give Purchaser notice prior
to any such inspection. Any inspection shall be solely for the benefit of Habitat Affiliate.
5. Acceleration; Remedies; Power of Sale. Upon Purchaser’s breach of any covenant
or agreement contained in this Second Mortgage, including without limitation any breach of a
covenant or agreement contained in the First Mortgage, the note or notes secured thereby or the
Supplemental Agreement(s), Habitat Affiliate may give notice to Purchaser as provided in
paragraph 10 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a
date, not less than 10 days from the date the notice is mailed to Purchaser, by which such breach
must be cured; and (4) that failure to cure such breach on or before the date specified in the
notice may result in acceleration of any sums owing secured by, and/or foreclosure of, this
Second Mortgage. The notice shall further inform Purchaser 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 Purchaser to acceleration and/ foreclosure sale. If the breach is not cured on or
before the date specified in the notice, Habitat Affiliate, at Habitat Affiliate’s option, may
declare all of the sums secured by this Second Mortgage to be immediately due and payable
without further demand and may invoke the power of sale hereby granted and any other remedies
permitted by applicable law. Habitat Affiliate shall be entitled to collect all reasonable costs and
expenses incurred in pursuing the remedies provided in this paragraph 5, including, without
limitation, reasonable attorneys’ fees.
If Habitat Affiliate invokes the power of sale, Habitat Affiliate shall mail a copy of a
notice of sale to Purchaser in the manner provided in paragraph 10 hereof. Habitat Affiliate shall
publish and post the notice of sale and the Property shall be sold in the manner prescribed by
applicable law. Habitat Affiliate or Habitat Affiliate’s designee may purchase the Property at
any sale. The proceeds of the sale shall be applied in the following order: (a) to all reasonable
costs and expenses of the sale, including, but not limited to, reasonable attorneys’ fees; (b) to all
sums secured by this Second Mortgage; and (c) the excess, if any, to the person or persons
legally entitled thereto.
6. Purchaser’s Right to Reinstate. Notwithstanding Habitat Affiliate’s declaration of
a default and/or acceleration of the sums secured by this Second Mortgage due to Purchaser’s
breach, Purchaser shall have the right to have any proceedings begun by Habitat Affiliate to
enforce this Second Mortgage discontinued at any time prior to the earlier to occur of (i) the fifth
day before sale of the Property pursuant to the power of sale contained in this Second Mortgage
or (ii) entry of a judgment enforcing this Second Mortgage if: (a) Purchaser pays Habitat
Affiliate all sums which would be then due under this Second Mortgage and the Note had no
acceleration occurred; (b) Purchaser cures all breaches of any other covenants or agreements of
Purchaser contained in this Second Mortgage; (c) Purchaser pays all reasonable expenses
incurred by Habitat Affiliate in enforcing the covenants and agreements of Purchaser contained
in this Second Mortgage, and in enforcing Habitat Affiliate’s remedies hereunder, including, but
not limited to, reasonable attorneys’ fees; and (d) Purchaser takes such action as Habitat Affiliate
may reasonably require to assure that the lien of this Second Mortgage, Habitat Affiliate’s
interest in the Property and Purchaser’s obligation to pay the sums secured by this Second
Mortgage shall continue unimpaired. Upon such payment and cure by Purchaser, this Second
Mortgage and the obligations secured hereby shall remain in full force and effect as if no
acceleration had occurred.
7. Release. Upon satisfaction of all obligations secured by this Second Mortgage,
Habitat Affiliate shall prepare and file a discharge of this Second Mortgage without charge to
Purchaser, and shall pay the fee for recording the discharge.
8. Forbearance by Habitat Affiliate not a Waiver.. Any forbearance by Habitat
Affiliate in exercising any right or remedy hereunder, or otherwise afforded by applicable law,
shall not be a waiver of or preclude the future exercise of any right or remedy.
9. 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 Habitat Affiliate and Purchaser, subject to any limitations on
transfers or sales by Purchaser contained in the First Mortgage.. All covenants and agreements of
Purchaser shall be joint and several.
10. Notice. Except for any notice required under applicable law to be given in another
manner, (a) any notice to Purchaser provided for in this Second Mortgage shall be given by
delivering it or by mailing such notice by certified mail addressed to Purchaser at the Property
address or at such other address as Purchaser may designate by notice to Habitat Affiliate as
provided herein, and (b) any notice to Habitat Affiliate shall be given by certified mail to Habitat
Affiliate’s address stated herein or to such other address as Habitat Affiliate may designate by
notice to Purchaser as provided herein. Any notice provided for in this Second Mortgage shall
be deemed to have been given to Purchaser or Habitat Affiliate when given in the manner
designated herein.
11. Governing Law; Severability. This Second Mortgage and the Supplemental
Agreement(s) shall be construed and governed by the laws of the State of Michigan and any
applicable federal laws. If any provision or clause of this Second Mortgage or the Supplemental
Agreement(s) conflict with applicable law, such conflict shall not affect other provisions of this
Second Mortgage or the Supplemental Agreement(s) which can be given effect without the
conflicting provision; and to this end the provisions of this Second Mortgage and the
Supplemental Agreement(s) 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.
12. Purchaser’s Copy. Purchaser shall be furnished a conformed copy of the
Supplemental Agreement(s) and of this Second Mortgage at the time of execution or after
recordation hereof.
REQUEST FOR NOTICE OF DEFAULT
-------------------------------AND FORECLOSURE UNDER SUPERIOR----------------------------
MORTGAGES OR DEEDS OF TRUST
Purchaser and Habitat Affiliate request that the holder of any mortgage, deed of trust or
other encumbrance with a lien which has priority over this Second Mortgage give Notice to
Habitat Affiliate, at Habitat Affiliate’s address set forth on page one of this Second Mortgage, of
any default under the superior encumbrance and of any sale or other foreclosure action.
By signing below, Purchaser accepts and agrees to the terms and covenants contained in
this Second Mortgage.
________________________________ _________________________________
-Purchaser -Purchaser
State of Michigan
County of __________
The foregoing instrument was acknowledged before me on ____________, 20__ by
_________________________________ (name of person[s] acknowledged).
_________________________________________
Notary Public
__________________ County, Michigan.
Acting in the County of _____________________
My commission expires: ____________________
This instrument was prepared by:
Habitat for Humanity Michigan Fund, Inc.
618 S. Creyts Road, Suite C
Lansing, MI 48917
After recording return to:
Habitat for Humanity Michigan Fund, Inc.
618 S. Creyts Road, Suite C
Lansing, MI 48917
Habitat Standard Second Mortgage (8/19/2009)
BH01\1020159.3
ID\FJF