United States District Court, D. Montana, Missoula Division
ORDER, DECREE OF FORECLOSURE, AND ORDER OF
W. Molloy, United States District Court Judge.
matter having been brought before the Court by Plaintiff, the
United States, by and through its attorney, Victoria L.
Francis, Assistant United States Attorney for the District of
Montana, and after considering the pleadings and filings, it
appearing there is no issue of material fact, the Court now
makes the following Findings of Fact and Conclusions of Law.
court has jurisdiction under 28 U.S.C. § 1345 because
this action was commenced by the United States. The real
property that is subject to this foreclosure action is
located in Lincoln County, and more particularly described as
Lot 15, Chapman's Homesites, according to the plat
thereof on file in the office of the Clerk and Recorder of
Lincoln County, Montana.
United States loaned DeeAnn Rowe the total principal sum of
$68, 382.19 in the form of a Section 502 Rural Housing loan
and assumption agreement. These loans are evidenced by an
assumption agreement wherein DeeAnn Rowe assumed the debt of
Robert E. Huff and Caroline C. Huff in the amount of $43,
332.19. DeeAnn Rowe also executed a promissory note in the
original principal amount of $25, 050.00, both dated March 8,
2002. A true and correct copy of the assumption agreement and
promissory note are attached to the Complaint as Exhibit A,
(Doc. 1-1), and Exhibit B, (Doc. 1-2).
security for the above-described loans, DeeAnn Rowe executed
a real estate mortgage on March 8, 2002, providing the United
States a security interest in the real property described
above to secure the amount owed under the terms of the
assumption agreement and note. The mortgage was filed for
record with the Clerk and Recorder of Lincoln County on March
8, 2002, in Book 272 at Page 706. A true and correct copy of
the mortgage is attached to the Complaint as Exhibit C, (Doc.
1-3). In addition, the assumption agreement executed by
DeeAnn Rowe assumes the real estate mortgage dated April 12,
1990, executed by Robert E. Huff and Caroline C. Huff, filed
with the Clerk and Recorder of Lincoln County on April 12,
1990, in Book 155 at Page 693. A true and correct copy of the
mortgage is attached to the Complaint as Exhibit D, (Doc.
Defendant DeeAnn Rowe is in default under the terms of the
assumption agreement and promissory note described above due
to failure to make timely payments of principal and interest
as agreed. The account was accelerated on May 2, 2018. (Doc.
1 at ¶ 5.)
Defendant DeeAnn Rowe is indebted to Plaintiff for the loans
outlined above in the principal amount of $50, 003.19, plus
interest computed at the daily rate of $8.60 per day for the
accrued total amount of $2, 466.95, plus fees in the amount
of $1, 837.62 ($24.33 late charges, fees for negative escrow
of taxes and insurance of $1, 278.29, and $535.00 for
litigation guarantee), for a combined total of $54, 307.76 as
of November 16, 2018. In addition, if the value of the real
property exceeds the principal and accrued interest ($54,
307.76), the Rural Housing Service is entitled to repayment
of the interest credit subsidy pursuant to the repayment
agreement dated March 8, 2002, attached to the Complaint as
Exhibit E, (Doc. 1-5). The interest subject to recapture will
be $36, 893.66, making a total of $91, 201.42 due and owing.
Interest continues to accrue from November 16, 2018, at the
rate of $8.60 per day until the date of entry of judgment. A
true and correct copy of the Affidavit of Kimberly Maines of
the Rural Housing Service is attached to the Complaint as
Exhibit F, (Doc. 1-6), which verifies the amount due.
Plaintiff seeks post-judgment interest pursuant to 28 U.S.C.
§ 1961. (Doc. 1 at ¶ 6.)
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 judgments against Dee Ann Rowe, filed in the
Montana Nineteenth Judicial District Court, Lincoln County:
February 25, 2008, under Cause No. DV-08-55; March 2, 2009,
under Cause No. DV-09-30; June 1, 2009, under Cause No.
DV-09-87; November 28, 2011, under Cause No. DV-11-299; and
November 12, 2013, under Cause No. DV-13-241. (Doc. 1 at
Defendant Lincoln 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 real property taxes takes
priority over the mortgage held by the United States. (Doc. 1
at ¶8;Doc. 8at¶3.)
Defendant Dee Ann Rowe was personally served by the Lincoln
County Sheriffs Office with a copy of the Summons and
Complaint. (Doc. 10.) Defendant DeeAnn Rowe did not make an
appearance. Her Default was entered on May 29, 2019. (Doc.
Defendant Collection Bureau Services, Inc. executed a Waiver
of Service of Summons that was filed with the Court on
February 22, 2019. (Doc. 5.) Defendant Collection Bureau
Services, Inc. did not make an appearance. Its Default was
entered on May 29, 2019. (Doc. 13.)
Marcia Boris, Lincoln County Attorney, executed a Waiver of
Service of Summons that was filed with the Court on March 6,
2019. (Doc. 7.) On March 7, 2019, Defendant Lincoln County
filed a stipulation with the United States consenting to
entry of judgment, decree of foreclosure, and order of sale.
(Doc. 8.) It was further stipulated that any judgment shall
recognize the priority of the principal amount of any real
property taxes ...