United States of America v. Jordan

Filing 11

JUDGMENT DECREE AND ORDER DIRECTING SALE OF MORTGAGED PROPERTY, granting 10 MOTION for Default Judgment as to Joann M.Jordan by United States of America.Signed by Chief Judge David R. Herndon on 7/22/2014. (mtm)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ILLINOIS
UNITED STATES OF AMERICA,
Plaintiff,
vs.

Civil No. 14-cv-121-DRH-SCW

JOANN M. JORDAN,
Defendant.
JUDGMENT DECREE AND ORDER
DIRECTING SALE OF MORTGAGED PROPERTY
Herndon, Chief Judge:
On February 3, 2014, the United States of America ("USA") commenced the
above-captioned mortgage foreclosure suit against Joann M. Jordan. The parcel
of property in question is located in Benton, Illinois, which lies within this
Judicial District.

Joann M. Jordan was properly served herein but failed to

move, answer, or otherwise plead in response to the complaint. Based on that
failure, the USA secured the Clerk's entry of default on June 30, 2014, pursuant
to Federal Rule of Civil Procedure 55(a).
Now before this Court is the USA's motion for default judgment under Rule
55(b). Having carefully reviewed the record, the Court GRANTS the motion for
default judgment (Doc. 10), after FINDING as follows:
1.
this suit.

This Court has jurisdiction of the parties to and subject matter of
The Defendant was properly served and having failed to answer or

otherwise enter any appearance herein, is properly defaulted.

2.

The USA, acting through the Rural Housing Service or successor

agency, United States Department of Agriculture, made a loan to Joann M.
Jordan, secured by a mortgage dated October 14, 2009 (Exh. A of the complaint),
in the total principal amount of $65,500.00. The mortgage was recorded on
October 14, 2009. The loan is evidenced by a promissory note dated October 14,
2009 (Exh. B). Defendant, Joann M. Jordan, defaulted on the note. On June 4,
2013, the USA, acting through the United States Department of Agriculture, Rural
Development, issued a notice of acceleration (Exh. C). The property has been
abandoned as set forth in the affidavit of abandonment (Exh. D) dated January
21, 2014.
3.

The following person/persons may have claimed an interest in the

above described property, but foreclosed from asserting claim, if any, because of
default in this action:
4.

By virtue of the mortgage and indebtedness thereby secured, the USA

has a valid and subsisting lien as follows:
Common address: 1002 South Pope Street, Benton, Illinois 62812
Lots One (1), Two (2), Three (3) and the North 50 feet of Lot Nine (9)
and all of Lot Ten (10) in Block "G" in Blake, Hart and Williams
Second (2nd) Addition to the City of Benton, excepting the coal, oil,
gas and other minerals underlying the same and all rights and
easements in favor of the owner of the mineral estate or of any party
claiming by, through or under said estate, situated in FRANKLIN
COUNTY, ILLINOIS.
Property ID No. 08-19-189-001 (Lots 2, 3 and N 50’ Lot 9), and
Property ID No. 08-19-189-004 (Lots 1 and 10)
5.

By virtue of the mortgage and the indebtedness thereby secured, as

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alleged in the complaint, the following amounts are due to the USA:
(a)

U.S. Attorney's docket and recording fees

$

446.00

U.S. Marshals costs for service of summons $

177.00

Fee to publish notice of pendency of action $

846.00

Title expenses ...........................................

$

200.00

TOTAL

$ 1,669.00

..............................................

(b) For the use and benefit of the USA, 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 ..........................

$64,436.66

Subsidy recapture paid .............................

$ 5,579.34

Accrued interest at $8.7728 per day due and
unpaid as of July 16, 2014 ...................... $ 4,641.56
TOTAL

..............................................

$74,657.56

Total amount due USA as of July 16, 2014,
exclusive of foreclosure costs .................... $76,326.56
(c) In addition, the USA 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 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
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made.
(e)

(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)

6.

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.

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.

Franklin County, Illinois, has a valid lien on the above-described

property for tax for the year 2013, and the property will be sold subject to the
interest of Franklin County, resulting from taxes, general or special, which are a
valid lien against the property.
Accordingly the Court GRANTS the USA's motion for default judgment
(Doc. 10). JUDGMENT IS HEREBY ENTERED against Joann M. Jordan, for
$76,326.56. Unless Defendant or her assigns and successors in interest to the
above-described property pay to the USA, acting through the Farmers Home
Administration, United States Department of Agriculture, within three days from
the date of this decree the sum of $76,326.56, 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 Judgment and Order Directing Sale of
Mortgaged Property SHALL BE SOLD AT PUBLIC SALE to the highest bidder

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for 10% at time of sale and balance within 72 hours, subject to taxes, general or
special, due and owing to Franklin County, Illinois, by the United States Marshal
for the Southern District of Illinois at the front door of the Franklin

County

Courthouse in the City of Benton, Illinois.
The property shall be sold free and clear of any claimed lien of Joann M.
Jordan.
The United States Marshal for the Southern District of Illinois shall 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 Judgment and
Order Directing Sale of Mortgaged Property to be 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.
The USA or any party to this case may become the purchaser or purchasers
at such sale. Upon such sale being made, the United States Marshal shall execute
and deliver to the purchaser or purchasers a certificate of purchase, which
certificate shall be freely assignable by endorsement thereon.
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 property is a mortgagor
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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 ILL. COMP. STAT 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

above-described

mortgaged

real

estate

has

been

abandoned.

Consequently, the redemption period pursuant to 735 ILCS § 5/15-1603 shall end
30 days after entry of this Judgment/Order pursuant to 735 ILCS § 5/151603(b)(4). The reinstatement period shall not extend beyond the redemption
period as shortened. 735 ILCS § 5/15-1603(b)(4).
Out of the proceeds of sale the, the United States Marshal shall retain his
disbursements and fees. Out of the remainder of the proceeds, he shall pay to the
USA $76,326.56, together with lawful interest to be computed thereon to the date
of this Judgment and Order Directing Sale of Mortgaged Property and any court
costs of this action.
The 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.

If the property shall sell for a sum more than

sufficient to make the aforesaid payments, then after making the payments, the
United States Marshal shall bring such surplus monies into Court without delay
for further distribution by order of this Court.

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From the date of entry of this Judgment and Order Directing Sale of
Mortgaged Property through the 30th day after a foreclosure sale is confirmed by
this Court, the mortgagor shall be entitled to retain possession of the abovedescribed property.
After the 30th day the foreclosure sale is confirmed, the holder of the
Certificate of Sale shall be entitled to immediate possession of the property
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 the
property to said certificate holder immediately upon expiration of the said 30-day
time period. In default of mortgagor so doing, an Order of Ejectment shall issue.
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 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 Order Directing Sale of
Mortgaged Property, 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
the 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 property, even if the
purchaser or holder of the certificate of sale is a party to the foreclosure, shall be
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sufficient to pass the title thereto. The 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.
If the monies from the sale are insufficient to pay sums due to the USA with
interest after deducting the costs, the United States Marshal shall specify the
amount of the deficiency in his report.
The Court RETAINS JURISDICTION over the subject matter and the
parties hereto for the explicit purpose of enforcing this Judgment and Order
Directing Sale of Mortgaged Property and the United States Marshal shall report
his actions to this Court at the earliest possible time.
IT IS SO ORDERED.
Signed this 22nd day of July, 2014.

Digitally signed by
David R. Herndon
Date: 2014.07.22
12:21:55 -05'00'
Chief Judge
United States District Court

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