USA v. Beck et al
Filing
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JUDGMENT DECREE AND ORDER DIRECTING SALE OF MORTGAGED PROPERTY. Signed by Judge J. Phil Gilbert on 4/12/12. (bkl)
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ILLINOIS
UNITED STATES OF AMERICA,
Plaintiff,
vs.
GARY J. BECK, MARY J. BECK, IRWIN
UNION BANK AND TRUST COMPANY,
PERSONAL FINANCE COMPANY, and
TAYLOR LAW OFFICES, P.C.,
Defendants.
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Civil No. 11-cv-773-JPG-PMF
JUDGMENT DECREE AND ORDER
DIRECTING SALE OF MORTGAGED PROPERTY
This cause coming on to be heard upon the plaintiff's complaint, and an order of default
having been entered against the Defendants, the Court finds:
1.
That it has jurisdiction of the parties to and subject matter of this suit. The
Defendants have each been properly served and having failed to answer or otherwise enter any
appearance herein, although the time for answering having expired, are ordered defaulted.
2.
The United States of America, acting through the United States Department of
Agriculture, Rural Development (formerly Farmers Home Administration), made a loan to Marie
Mietzner, secured by a mortgage dated August 1, 1977 (Ex. A of the complaint), in the total
principal amount of $26,200.00. The mortgage was recorded on August 2, 1977, in Book 553, Page
234, as Document No. 37939. That loan is evidenced by a promissory note dated August 1, 1977
(Ex. D). This loan was assumed by Gary J. Beck and Mary J. Beck, secured by an assumption
agreement dated June 30, 1983 (Ex. E). The United States of America, acting through the United
States Department of Agriculture, Rural Development (formerly Farmers Home Administration)
made an additional loan to Gary J. Beck and Mary J. Beck, secured by a mortgage dated June 30,
1983 (Ex B & C of the complaint), in the amount of $8,440.00. The June 30, 1983 mortgage was
recorded in Mortgage Record Book 683, Page 283, as Document No. 61726, this mortgage was
corrected and recorded in Mortgage Record Book 691, Page 266, as Document No. 62741. That
loan is evidenced by an assumption agreement dated June 30, 1983 (Ex. E) and a promissory note
dated June 30, 1983 (Ex. G). Defendants, Gary J. Beck and Mary J. Beck, defaulted on the note.
On March 9, 2011, the United States of America, acting through the United States Department of
Agriculture, Rural Development, issued a notice of acceleration (Ex. I).
3.
That the following are the names of persons that may have claimed an interest in the
above described property, but who are foreclosed from asserting their claim, if any, because of their
default in this action: Gary J. Beck, Mary J. Beck, Irwin Union Bank and Trust Company, Personal
Finance Company, and Taylor Law Offices, P.C.
4.
That by virtue of the mortgage and indebtedness thereby secured, the plaintiff, United
States of America, has a valid and subsisting lien as follows:
Common address: 105 Casa Grande Drive, Watson, Illinois 62473
Lot 13 in CHAPARRAL SUBDIVISION - ADDITION "A" of part of
SE 1/4 of the NE 1/4 Sec. 30, T7N, R6E of 3rd P.M., Effingham County,
Illinois (reference made to Plat #23-B and Plat Book 11 page 51 in the
Recorder's Office of Effingham County), situated in the County of
Effingham and State of Illinois.
Property Tax No. 14-21-011-013
5.
That by virtue of the mortgage and the indebtedness thereby secured, as alleged in
the Complaint, there is due the plaintiff, the United States of America, as follows:
(a)
For its own use and benefit for the costs of this suit and for:
U.S. Attorney's docket and recording fees . . . . .
$
380.00
Fee to publish notice of pendency of action . . .
$
986.70
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Title expenses
$
TOTAL
(b)
100.00
$ 1,466.70
For the use and benefit of the plaintiff, holder of the note secured by the
mortgage aforesaid, but subject and subordinate to the lien for payment of the
items mentioned in subparagraph (a) of this paragraph:
Unpaid principal balance . . . . . . . . . . . . . . . . . .
$12,233.70
Accrued interest at $3.5796 per day due and
unpaid as of March 14, 2012 . . . . . . . . . . . . . . .
$ 1,494.51
Total amount due plaintiff as of March 14, 2012,
exclusive of foreclosure costs . . . . . . . . . . . . . .
$13,728.21
(c)
In addition, the plaintiff may be compelled to advance various sums of
money in payment of costs, fees, expenses and disbursements incurred in
connection with the foreclosure, including, without limiting the generality of
the foregoing, filing fees, stenographer's fees, witness fees, costs of
publication, costs of procuring and preparing documentary evidence and
costs of procuring abstracts of title, certificates, foreclosure minutes and a
title insurance policy.
(d)
Under the terms of the mortgage, all such advances, costs and other fees,
expenses and disbursements are made a lien upon the mortgaged real estate
and the plaintiff is entitled to recover all such advances, costs, expenses and
disbursements, together with interest on all advances at the rate provided in
the mortgage, or, if no rate is provided therein, at the statutory judgment rate,
from the date on which such advances are made.
(e)
In order to protect the lien of the mortgage, it may or has become necessary
for plaintiff to pay taxes and assessments which have been or may be levied
upon the mortgaged real estate.
(f)
In order to protect and preserve the mortgaged real estate, it may also become
necessary for the plaintiff to make such repairs to the real estate as may
reasonably be deemed for the proper preservation thereof.
(g)
Under the terms of the mortgage, any money so paid or expended has or will
become an additional indebtedness secured by the mortgage and will bear
interest from the date such monies are advanced at the rate provided in the
mortgage, or, if no rate is provided, at the statutory judgment rate.
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6.
That Effingham County, Illinois, has a valid lien on the above-described property for
tax for the year 2012, and the property will be sold subject to the interest of Effingham County,
resulting from taxes, general or special, which are a valid lien against the above-described property.
WHEREFORE, IT IS ORDERED, ADJUDGED, AND DECREED by this Court that
judgment is entered against Gary J. Beck and Mary J. Beck, for $15,194.91, and unless the
Defendants and their assigns and successors in interest to the above-described property pay to the
plaintiff, the United States of America, acting through the Farmers Home Administration, United
States Department of Agriculture, within three days from the date of this decree the sum of
$15,194.91, with attorney's fees and court costs with lawful interest to be computed thereon from
this date until paid, the real estate described in paragraph 4 of this decree shall be sold at public sale
to the highest bidder for 10% at time of sale and balance within 72 hours, subject to taxes, general
or special, due and owing to Effingham County, Illinois, by the United States Marshal for the
Southern District of Illinois at the front door of the Effingham County Courthouse in the City of
Effingham, Illinois.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that judgment is entered in
favor of the United States and against Gary J. Beck, Mary J. Beck, Irwin Union Bank and Trust
Company, Personal Finance Company, and Taylor Law Offices, P.C. The real estate shall be sold
free and clear of any claimed lien of Gary J. Beck, Mary J. Beck, Irwin Union Bank and Trust
Company, Personal Finance Company, and Taylor Law Offices, P.C.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the United States
Marshal for the Southern District of Illinois give public notice of the time, place, and terms of such
sale, together with a description of the premises as referred to in paragraph 4 of this decree to be
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sold, by previously publishing the same once each week for three (3) consecutive weeks as provided
by law in a secular newspaper of general publication in the State of Illinois, the first publication to
be not less than four weeks before the date of such sale; that said United States Marshal may adjourn
the sale so advertised by giving public notice by proclamation; that the plaintiff or any of the parties
to this cause may become the purchaser or purchasers at such sale; that upon such sale being made,
the United States Marshal shall execute and deliver to the purchaser or purchasers a certificate of
sale and that said certificate of purchase shall be freely assignable by endorsement thereon.
This is a foreclosure of a mortgage of residential real estate.
The amount required to redeem shall consist of the total balance due as declared above plus
interest thereon at the statutory rate hereunder and all additional costs and other expenses allowed
by the Court.
If the purchaser at the judicial sale of residential real estate is a mortgagor who is a party to
this proceeding or its nominee, and if the sale price is less than the amount required to redeem
specified in 735 ILCS § 5/15-1604, an owner of redemption has a special right to redeem for a
period ending 30 days after the date the sale is confirmed by paying the mortgagee the sale price
plus all additional costs and expenses incurred by the mortgagee set forth in the report of sale and
confirmed by this Court.
The redemption period shall end at the later of the expiration of any reinstatement period
provided for in 735 ILCS § 5/15-1602 or the date 60 days after the date the Judgment/Order is
entered, since the Court finds that (1) the value of the mortgaged property as of the date of the
Judgment/Order is less than 90% of the amount due under 735 ILCS § 5/15-1603, and (2) the
mortgagee waives any and all rights to a personal deficiency judgment against the mortgagor and
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against all other persons liable for the indebtedness or other obligations secured by the mortgage.
735 ILCS § 5/15-1603 (b) (3).
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that out of the proceeds of
such sale the United States Marshal shall retain his disbursements and fees, and out of the remainder
of said proceeds he shall pay to the plaintiff $15,194.91, together with lawful interest to be computed
thereon to the date of this decree and any court costs of this action in its behalf. Said United States
Marshal shall take receipts from the respective parties from whom he may make payments aforesaid
and file the same together with his report of sale to this Court, and in case said property shall sell
for a sum more than sufficient to make the aforesaid payments, then after making said payments he
shall bring such surplus monies into Court without delay for further distribution by order of this
Court.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED from the date of entry of this
judgment of foreclosure through the 30th day after a foreclosure sale conducted pursuant to this
judgment is confirmed by this Court, the mortgagors shall be entitled to retain possession of the
above-described real estate. After the 30th day said foreclosure sale is confirmed, the holder of the
certificate of sale shall be entitled to immediate possession of the real estate upon payment of the
sale purchase price, without notice to any party or further order of the Court. The mortgagors shall
peaceably surrender possession of said property to said certificate holder immediately upon
expiration of the said 30-day time period. In default of mortgagors so doing, an order of ejectment
shall issue.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED upon or after confirmation
of sale, the person who conducted the sale or the Court shall execute a deed to the holder of the
certificate of sale sufficient to convey title, which deed shall identify the Court and the caption of
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the case in which judgment was entered authorizing issuance of the deed. Signature and the recital
in the deed of the title or authority of the person signing the deed as grantor, of authority pursuant
to this judgment, and of the giving of the notices required by statute shall be sufficient proof of the
facts recited and of such authority to execute the deed, but such deed shall not be construed to
contain any covenant on the part of the person executing it.
Delivery of the deed executed on the sale of the real estate, even if the purchaser or holder
of the certificate of sale is a party to the foreclosure, shall be sufficient to pass the title thereto. Such
conveyance shall be an entire bar of (i) all claims of parties to the foreclosure and (ii) all claims of
any non-record claimant who is given notice of the foreclosure as provided by statute.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that if the monies arising
from said sale shall be insufficient to pay sums due to plaintiff with interest as aforesaid after
deducting the costs as aforesaid, said United States Marshal shall specify the amount of said
deficiency in his report.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Court hereby retains
jurisdiction of the subject matter of this cause and the parties thereto for the purpose of enforcing
this decree and that said United States Marshal shall report his actions and doings in the premises
in this Court at the earliest possible time to which time this cause is hereby continued.
IT IS SO ORDERED:
DATED: April 12, 2012
s./ J. Phil Gilbert
J. PHIL GILBERT
United States District Judge
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