United States District Court, D. Montana, Missoula Division
L. CHRISTENSEN, CHIEF JUDGE
matter having been brought before the Court by Plaintiff,
United States of America, by and through its attorney,
Victoria L. Francis, Assistant United States Attorney for the
District of Montana, and upon considering the pleadings filed
herein, it appears there is no issue of material fact, and
the Court now makes the following Findings of Fact and
Conclusions of Law.
court has jurisdiction of this action for the reason that the
United States of America is the party Plaintiff under 28
U.S.C. § 1345. The real property that is subject to this
foreclosure action is located in Sanders County, and more
particularly described as follows:
Lots Fourteen (14) and Fifteen (15) of Block Seventy-seven
(77), of the Second Survey of the Town of Thompson Falls,
Montana, as shown on the map or plat thereof on file and of
record in the office of the Clerk and Recorder, Sanders
County, Montana. (Dkt. 1, Para. 2).
United States loaned Gordon P. Jones the sum of $30, 000.00
in the form of a Section 502 Rural Housing loan. This loan is
evidenced by a promissory note for $30, 000.00, dated April
20, 2000. A true and correct copy of the promissory note is
attached to the Complaint as Exhibit A. (Dkt. 1, Para. 3).
security for the above described loan Gordon P. Jones
executed a real estate mortgage on April 20, 2000, providing
the United States a security interest in the real property
described above. The mortgage was filed for record with the
Clerk and Recorder of Sanders County on May 3, 2000, as
document number 238699, Micro 30982. A true and correct copy
of the mortgage is attached to the Complaint as Exhibit B.
(Dkt. 1, Para. 4).
Defendant, Gordon P. Jones, is in default under the terms of
the promissory note described above due to failure to make
timely payments of principal and interest as agreed. The
account was accelerated on August 18, 2017. (Dkt. 1, Para.
Defendant, Gordon P. Jones, is indebted to the Plaintiff for
the loan outlined above in the principal amount of $22,
735.50, plus interest computed at the daily rate of $4.59 per
day for the accrued total amount of $1, 061, 16, plus fees in
the amount of $265.36 ($32.36 late charges and fees not
assessed of $233.00), for a combined total of $24, 017.02 as
of November 6, 2017. In addition, if the value of the real
property exceeds the principal and accrued interest ($24,
017.02), the Rural Housing Service is entitled to repayment
of the interest credit subsidy pursuant to the repayment
agreement dated April 20, 2000, attached to the Complaint as
Exhibit C. The interest subject to recapture will be $1,
137.84, making a total of $25, 199.86 due and owing. Interest
continues to accrue from November 6, 2017, at the rate of
$4.59 per day until the date of entry of judgment. A true and
correct copy of the Affidavit of Kimberly Maines of Rural
Housing Service is attached to the Complaint as Exhibit D,
which verifies the amount due. Plaintiff seeks post-judgment
interest pursuant to 28 U.S.C. § 1961. (Dkt 1, Para, 6).
The Motion for Entry of Judgment verifies that the United
States is not seeking a deficiency judgment in this case.
Defendant, Montana Board of Housing has or may have an
interest in the real property in a first lien position by
virtue of an Assignment of Deed of Trust, dated May 3, 2000,
recorded May 3, 2000 as Instrument No. 238700, Micro No.
30983, with the Sanders County Clerk and Recorder. This
assignment was made by Heritage Bank which assigned its Deed
of Trust dated May 2, 2000, which had been recorded May 3,
2000, as Instrument No. 238698, Micro No. 30981 securing the
original amount due of $22, 699.00. A true and correct copy
of the deed of trust is attached to the Complaint as Exhibit
E. (Dkt 1, Para. 7).
Defendant, Collection Bureau Services, Inc., a Montana
Corporation, has or may have an interest in the real property
subordinate to the real estate mortgage of the United States
by virtue of a Default Judgment against Gordon P. Jones,
filed in the Justice Court of Sanders County, June 6, 2017,
under Cause No. DV 17-34. A true and correct copy of the
default judgment is attached to the Complaint as Exhibit F.
(Dkt. 1, Para. 8).
Defendant Northwest Montana Human Resources has or may have
an interest in the real property in a subordinate lien
position to the United States by virtue of a Trust Indenture,
dated December 30, 2008, which was recorded December 30,
2008, as Instrument No. 278146, Micro No. 64586. This
assignment was made by Alliance Title Company which assigned
its Trust Indenture dated December 30, 2008, to secure an
original indebtedness of $5, 031.80. A true and correct copy
of the Trust Indenture is attached to the Complaint as
Exhibit G. (Dkt 1, Para. 9).
Defendant, Sanders County, has or may have an interest in the
property by virtue of real property taxes that may be due and
owing. The principal amount of such takes priority over the
United States. Penalties and interest are subordinate to the
United States. (Dkt 1, Para. 10).
Defendant Gordon P. Jones, was served by Summons in the
Sanders County Leader, pursuant to 28 U.S.C. §