Federal Deposit Insurance Corporation v. North Flats, LLC et al

Filing 29

ORDER Granting Default Judgment re 19 Motion for Default Judgment. By Judge Christine M. Arguello on 09/30/2014. (athom, )

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Judge Christine M. Arguello
Civil Action No. 14-cv-00943-CMA-MEH
FEDERAL DEPOSIT INSURANCE CORPORATION,
as Receiver for FirsTier Bank of Louisville, Colorado,
Plaintiff,
v.
NORTH FLATS, LLC, and
DEBORAH A. MORGAN, as Public Trustee for Larimer County, Colorado,
Defendants.

ORDER GRANTING DEFAULT JUDGMENT

This matter is before the Court on Plaintiff’s Verified Motion for Entry of Default
Judgment for Reformation, Declaratory Relief and Foreclosure (Doc. # 19). The Court
has read and reviewed the Motion, and read and reviewed the documents on file with
this Court, and being fully advised in the premises, finds as follows:
A. The Defendants named in this action have been properly served and
the Court has jurisdiction over all parties and of the subject matter of this
action.
B.

Venue has been considered and is proper.

C. Defendant Deborah A. Morgan as Public Trustee for Larimer County,
Colorado, filed a Disclaimer of Interest (Doc. # 13).
D. Defendant North Flats, LLC has failed to timely plead or otherwise
respond to Plaintiff’s Complaint in this action, and said Defendant is now
in default.

Accordingly, it is ORDERED that:
1. Default judgment is entered in favor of Plaintiff and against Defendant North
Flats, LLC in accordance with this Order.
2. The legal description contained in the Deed of Trust for the benefit of Bank of
Choice, recorded June 26, 2006 at Reception Number 2006-0047751 the “Deed
of Trust”) is hereby REFORMED so that Lots M-10 through M-17, Block 3, and
Lots M-42 through M-49, Block 7 Old Town North, are now legally described as:
Lots 1 and 2, Block 1, and Lots 1 and 2, Block 3, North Flats
Subdivision, according to the Plat thereof recorded April 5, 2007
at Reception No. 2007-0025560, Larimer County, Colorado.
3. The lien of the Deed of Trust is a first lien against the property described by
the Deed of Trust, as reformed, prior and superior to the interests of all of the
Defendants named in this action, in the amount of $789,535.96 as of May 30,
2014, together with interest continuing to accrue at the per diem rate of $191.26
from and after May 30, 2014, costs of foreclosure, amounts expended under the
Deed of Trust subsequent to May 30, 2013.
4. The attorneys’ fees are reasonable and are allowed as a cost of this foreclosure.
5. The Deed of Trust, as reformed, shall be foreclosed and under Colo. R. Civ. P.
120 the Public Trustee of Larimer County Colorado, or the Office of the United
States Marshall, at the option of the Plaintiff, is authorized and ordered to sell
the property in the same manner as prescribed by statute for the sale of land
on execution.
6. The proceeds of such sale shall be applied as follows:
a. First, to pay all fees, costs and expenses incurred in connection with the sale;
b. Second, to repay advances for taxes, prior liens, insurance and other sums
authorized by law and the Deed of Trust after entry of this order;
c. Third, to pay Plaintiff FDIC-R, the amount due and owing on the Judgment
and Deed of Trust as set forth in paragraph 3, above, together with interest,
costs and attorney’s fees as set forth herein;

d. Fourth, to pay any balance remaining into the Registry of this Court to be
applied as the Court shall hereinafter direct;

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e. This Order shall be a writ of special execution and no levy need be made.
f. Following the foreclosure sale, a Certificate of Purchase shall be executed
and delivered to the highest bidder at the sale and cause a duplicate of such
Certificate of Purchase shall be recorded with the Clerk and Recorder of
Larimer County, Colorado. A report of the sale shall be made to this Court as
soon as possible thereafter, and, upon expiration of the period of redemption
provided by law, execute and deliver a deed conveying the property, as
reformed, to the holder of the certificate of purchase, unless the property
is sooner redeemed.
DATED: September 30, 2014
BY THE COURT:

_______________________________
CHRISTINE M. ARGUELLO
United States District Judge

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