Young v. JPMorgan Chase Bank NA et al

Filing 60

AGREED JUDGMENT AND DECREE OF FORECLOSURE: Execution of the judgment is hereby stayed until 4/9/2018. This Court hereby retains jurisdiction after a foreclosure sale to entertain a report of sale and to approve and confirm the sale, and issue a Writ of Assistance so that the purchaser at the foreclosure sale can gain possession. This Agreed Judgment constitutes a final judgment and disposes of all claims, and all relief not expressly granted herein is expressly denied. Signed by Judge J. Leon Holmes on 2/22/2018. (ljb)

UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF ARKANSAS
WESTERN DIVISION
BRITI'NEYD. YOUNG

PLAINTIFF

v.

Case No. 4:t 7·cv·00239·JLH

JP MORGAN CHASE BANK, NA, and
WILSON & ASSOCIATES, P.L.L.C.
JPMORGAN CHASE BANK, NA

DEFENDANTS

COUNTERCLAIMANT
and TlllRD·PARTY
PLAINTIFF

v.
BRITTNEY D. YOUNG

DITECH FINANCIAL LLC,
RBS CITIZENS, N.A.,
LARRY WELCH, JANE WELCH, and
BANK OF LITTLE ROCK

COUNTERDEFENDANT
THIRD·PARTY
DEFENDANTS

AGREED JUDGEMENT AND DECREE OF FORECLOSURE
This matter comes before the Court on the agreement of the parties, as
evidenced by their signatures below. Having reviewed the pleadings, the
documents filed of record, and the agreement of the parties as represented on the
record, the Court hereby finds as follows:
1.

The real property which is the subject of this action is located in the

County of Pulaski, State of Arkansas, and is more particularly described as: Lot 1,
Block 81, of Chenal Valley, an addition to the City of Little Rock, Arkansas, as
shown on Corrected Plat dated October 31, 2005, prepared by White· Daters &

Associates Inc. recorded in Plat Book H, page 512, in the real property records of
Pulaski County, Arkansas, more commonly known as 311 Commentry Way, Little
Rock, Arkansas 72223 (the "Property'').
2.

Plaintiff/Counter-Defendant Brittney D. Young ("Young"), who is also

known as Brittney D. Copeland, is an individual residing in Little Rock, Pulaski
County, Arkansas. Plaintiff appears prose.
3.

Defendant, Wilson & Associates P.L.L.C., is an Arkansas professional

limited liability company with its main offices located in Little Rock, Arkansas.
Defendant, Wilson & Associates P.L.L.C., has appeared herein by and through its
counsel, Samuel S. High.
4.

Defendant/Counter-Plaintiff JPMorgan Chase Bank, N.A. ("JPMC"), is

a national bank with its main office, as designated by its articles of association, in
Columbus, Ohio.
5.

Third party defendant, RBS Citizens, N.A., is named in this action by

virtue of it being the last assignee of record of a second mortgage on the Property,
which may constitute a lien against the Property. RBS Citizens, N.A. was properly
served with process. See Affidavit of Service (Doc. 42). Despite having been
properly served, RBS Citizens, N.A. failed to timely appear or defend. RBS
Citizens, N.A. is, therefore, in default and has admitted the allegations of the
amended counterclaim and amended third party complaint.
6.

Third party defendant, Ditech Financial LLC, is named as a third

party defendant in this action by virtue of servicing a second mortgage on the

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Property, which may constitute a lien against the Property. Ditech Financial LLC
was properly served with process. See Affidavit of Service (Doc. 43). Despite
having been properly served, Ditech Financial LLC has failed to timely appear or
defend. Ditech Financial LLC is, therefore, in default and has admitted all of the
allegations of the amended counterclaim and amended third party complaint.
7.

Third party defendants, Larry Welch and Jane Welch (the "Welches"),

are named in this action by virtue of the judgment liens against the Property based
on judgments in their favor against Plaintiff and Counter-defendant Brittney
Young. The Welches have answered and appeared by and through their counsel,
Matthews, Sanders & Sayes, P.A.
8.

Bank of Little Rock was named as a third party defendant in this

action by virtue of a judgment lien it held against the Property based on a judgment
entered in its favor and against Brittney Young. During the pendency of this
action, Bank of Little Rock filed a partial release releasing its judgment lien on the
Property. The parties filed a Stipulation of Dismissal (Doc. 57), this Court entered
an agreed order of dismissal without prejudice (Doc. 58) on February 21, 2018,
dismissing the amended third-party complaint as to Bank of Little Rock only.
9.

The Court has subject matter jurisdiction over this action and personal

jurisdiction over the parties pursuant to 28 U.S.C. § 1332(a)(l) & 28 U.S.C. § 1367.
Venue properly lies in this Court pursuant to 28 U.S.C. § 1391(b)(l) & § 1391(b)(2).
10.

On March 22, 2007, Young executed a Note, promising to pay $384,800

at 6.875% interest, by principal and interest payments to be made monthly

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beginning May 1, 2007, in the amount of $2,527.87. A true and correct copy of the
original Note, as currently endorsed was attached to Defendant JPMorgan Chase
Bank, N.A.'s amended counterclaim and amended third-party complaint as Exhibit
A and is incorporated herein by this reference.
11.

To secure payment of the Note, Young executed a mortgage dated

March 22, 2007, on the Property in favor of Boardwalk Mortgage Group, LLC (the
"Mortgage").

A true and correct copy of Mortgage was attached to Defendant

JPMorgan Chase Bank, N.A.'s amended counterclaim and amended third-party
complaint as Exhibit B and is incorporated herein by this reference.
12.

The Mortgage was filed for record on March 30, 2007, in the records of

the Pulaski County Circuit Clerk and ex-officio recorder as document number
2007024743.

Under the terms of the Mortgage, Plaintiff waived all rights of

homestead, statutory redemption, and appraisement in the Property. Under the
terms of the Mortgage, Plaintiff also relinquished all rights of dower and curtesy in
the Property.
13.

Boardwalk Mortgage Group, LLC transferred its beneficial interest in

the Mortgage to JPMC by executing an Assignment of Deed of Trust. The
Assignment was filed for record on March 30, 2007 in the records of the Pulaski
County Circuit Clerk and ex-officio recorder as document 2007024 7 44.
14.

JPMC is the current holder of the Note and Mortgage. The Mortgage is

properly perfected and constitutes a valid, first lien on the Property.

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15.

Plaintiff and Counter-defendant Young failed to make payments as

they came due, failed to pay property taxes owed on the Property and failed to
maintain hazard insurance on the Property. These acts are events of default under
the Note and Mortgage.

As a result, JPMC sent a notice of default and has

properly accelerated the Note and may require immediate payment in full of all
sums secured by the Mortgage. JPMC's right to foreclosure of the Mortgage on the
Property has become absolute.
16.

On March 22, 2007, Brittney Young executed a second mortgage on the

Property in favor of First Horizon Home Loan Corporation (the "Second
Mortgage"), which subsequently assigned the Second Mortgage to Mortgage
Electronic Registration Systems, Inc., which subsequently assigned the Second
Mortgage to RBS Citizens, N.A. The Second Mortgage loan is currently serviced by
Ditech Financial LLC. The Second Mortgage was filed for record on March 30,
2007, in the records of the Pulaski County Circuit Clerk and ex-officio recorder as
document 200702474. The Assignment of the Second Mortgage was filed for record
on December 21, 2009, in the records of the Pulaski County Circuit Clerk and ex-

officio recorder as document 2009084530. The lien, if any, created by the Second
Mortgage is inferior and subordinate to the lien of the Mortgage.
17.

On October 9, 2014, the Pulaski County Circuit Court, State of

Arkansas, entered judgment in favor of Larry Welch and Jane Welch in Case No.
60CV-14-1413 in the amount of $58,143.00, plus attorney's fees, penalties and
interest, which judgment was filed for record on October 9, 2014. On October 8,

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2015, the Pulaski County Circuit Court, State of Arkansas, entered a second
judgment in favor of Larry Welch and Jane Welch in Case No. 60CV-14-1413 in the
amount of $64,405.95, plus attorney's fees, penalties and interest.

These

judgments are collectively referred to as the "Welch Judgments."
18.

The liens, if any, created by the Welch Judgments and any interests

held by Larry Welch and Jane Welch are inferior and subordinate to the lien of the
Mortgage.
19.

As of February 16, 2017, the total amount due and owing on the Note

is $698,977.01, comprised of the principal balance of $376,420.56, plus interest at
the rate of 6.875% per annum accrued from April 1, 2009, to March 14, 2018, in the
amount of $231,746.67, and accruing at the per diem rate of $70.90 thereafter until
paid, escrow advances of $80,682.14, corporate advances of $10,037.64, attorney
costs of $75.00, and recording costs of $15.00.
20.

Plaintiff has agreed to the dismissal with prejudice of all claims in her

complaint against Defendants JPMC and Wilson & Associates, PLLC.
Based on the foregoing findings and the agreement of the parties as
evidenced by the below signatures, the Court hereby ORDERS:
A

Plaintiffs claims in this action against JPMC and Wilson & Associates,

P.L.L.C. are hereby dismissed with prejudice to their re-filing.
B.

Defendant and Counter-plaintiff, JPMC, shall have and recover

judgment in personam and in rem against Plaintiff and Counter-defendant Brittney
D. Young, now known as Brittney Copeland, and the Property for the balance of

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$698,977.01, comprised of the principal balance of $376,420.56, plus interest at the
rate of 6.875% per annum accrued from April 1, 2009, to March 14, 2018, in the
amount of $231,746.67, and accruing at the per diem rate of $70.90 thereafter until
paid, escrow advances of $80,682.14, corporate advances of $10,037.64, attorney
costs of $75.00, and recording costs of $15.00, and all collections costs incurred by
JPMC as provided in the Note and Mortgage and Arkansas law.
C.

JPMC's Mortgage is a valid first lien on the Property, as described in

the Mortgage and above herein, which lien is first, prior and paramount to any
rights, titles, claims, interests, equities or estates of Brittney D. Young, now known
as Brittney Copeland, Ditech Financial, LLC, RBS Citizens, N.A., Larry Welch,
Jane Welch, or anyone claiming by, through or under them, the interest of all other
parties.
D.

Execution of the judgment is hereby stayed until April 9, 2018. On or

after that date, JPMC is entitled to liquidate the Property and the United States
Marshal or his designee is hereby appointed Commissioner for the purpose of
conducting a judicial sale of the Property described herein at the main door of the
United States District Courthouse, 500 W. Capitol Ave., Little Rock, Arkansas
72201, or such other place where foreclosure sales are customarily held, the date
and hour of such sale to be fixed by the Commissioner with notice thereof to be
given and published according to law, with the Property sold at public auction to the
highest bidder for cash or credit terms of up to 90 days with interest from the date
of sale until paid at the statutory post-judgment interest rate of ten percent (10%),

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except as to JPMC which is entitled to offset/credit bid against its judgments
awarded herein at the time of confirmation of sale, which credit shall extinguish the
judgments awarded herein to the extent of such credit, with the proceeds of sale to
be applied first to the costs of sale, then to payment of the judgment in favor of
JPMC, including collections costs, with the balance, if any, to be paid in such
manner as the Court may direct by further order.

Upon the conclusion of the

foreclosure sale, all of the rights, titles, interests, equities or estates of Young and
the Third-Party Defendants in and to the Property shall be foreclosed and forever
barred including, without limitation, all rights or possibility of curtesy, dower,
homestead and all legal, equitable, or statutory rights of redemption.
E.

At the foreclosure sale, JPMC shall be entitled to enforce performance

by a purchaser at a judicial sale, or without waiving damages, to take the second
highest bid (and so on until the property is sold to a bidder), or if no second highest
bid exists, to reschedule another sale without further Order of the Court.
F.

The purchaser at the foreclosure sale will be entitled to immediate

possess10n of the Property, and shall be entitled to a Writ of Assistance, if
possession of the property is not relinquished after sale.
G.

This Court hereby retains jurisdiction after a foreclosure sale to

entertain a report of sale and to approve and confirm the sale, and issue a Writ of
Assistance so that the purchaser at the foreclosure sale can gain possession.
H.

This Agreed Judgment constitutes a final judgment and disposes of all

claims, and all relief not expressly granted herein is expressly denied.

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IT IS SO ORDERED, ADJUDGED and DECREED.

THEHQ~~HOLMES
UNITED STATES DISTRICT JUDGE

e~

DATE:
Approved:

Brittney D. Young,
now known as Brittney Copeland

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TIITS IS AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION
OBTAINED WILL BE USED FOR THAT PURPOSE. THE BELOW LAW FIRMS
ARE EACH ACTING AS A COLLECTOR OF TIDS DEBT ON BEHALF OF
JPMORGAN CHASE BANK, N.A
WM. LANCE LEWIS
Texas Bar No. 12314560
[e-mail]
MARCIE L. SCHOUT
Texas Bar No. 24027960
[e-mail]

QUILLING, SELANDER, LOWNDS,
WINSLETT & MOSER, P.C.
2001 Bryan Street, Suite 1800
Dallas, Texas 75201
[phone] (Telephone)
(214) 871·2111 (Facsimile)

_o;/lfg___,...____~_:::~----

By: _
Marcie L. Schout
and

WRIGHT, LINDSEY & JENNINGS LLP
200 W. Capitol Ave., Ste. 2300
Little Rock, Arkansas 72201-3699
[phone]
Fax: [phone]
[e-mail]; [e-mail]

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y Simmons Henry (84069)
oh athan D. Horton (2002055)

ATTORNEYS FOR DEFENDANT
JPMORGAN CHASE BANK, N.A.

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WILSON & ASSOCIATES, P.L.L.C.
1521 Merrill Drive
Suite D-220
Little Rock, Arkansas 72211
(5010 219-9388
[e-mail]

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MATTHEWS, SANDERS & SAYES, P.A.
825 West Third Street
Little Rock, AR 722201
[phone]
[e-mail]

~----~-~-----'

By: _ _

William Roy Sanders

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