USA v. Palmer

Filing 12

DEFAULT JUDGMENT in favor of USA against Melanie A. Palmer. Signed by Judge Nancy J. Rosenstengel on 9/5/2017. (jkb2)

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

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Plaintiff,
vs.
MELANIE A. PALMER,
Defendant.

Civil No. 17-CV-7-NJR-DGW

JUDGMENT DECREE AND ORDER
DIRECTING SALE OF MORTGAGED PROPERTY
A Motion for Default Judgment is pending before this Court (Doc. 11). An order
of default having previously been entered against Defendants (Doc. 10), the Court
GRANTS the Motion for Default Judgment (Doc. 11) and FINDS:
1.

The Court has jurisdiction of the parties and subject matter of this suit.

2.

The United States of America, acting through the United States

Department

of

Agriculture,

Rural

Development

(formerly

Farmers

Home

Administration), made loans to Melanie A. Palmer, secured by mortgages dated August
13, 1999 and September 7, 2004 (Doc. 1-1, pp. 1-12), in the total principal amount of
$39,000.00. The mortgages were recorded on August 13, 1999 in Book 1343, on Pages 309
– 315 as Document No. 169060, Saline County, Illinois, and September 14, 2004, I Book
1733, on Page 285 – 290 as Document No, 200482, Saline County, Illinois. These loans
are evidenced by promissory notes dated August 13, 1999, and September 7, 2004 (Doc.
1-1, pp. 13-19). Defendant, Melanie A. Palmer, defaulted on the note. On June 13, 2013,
the United States of America, acting through the United States Department of
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Agriculture, Rural Development, issued a notice of acceleration (Doc. 1-1, pp. 19-23).
3.

On April 21, 2017, the Court granted the government’s motion for service

by publication (Doc. 7) and a Notice of Pendency of Action was issued (Doc. 8).
4.

Ms. Palmer failed to answer or otherwise enter her appearance, and a

Clerk’s Entry of Default was issued on July 11, 2017. (Doc. 10).
4.

That the following is the name of a person who may have claimed an

interest in the property described above, but is foreclosed from asserting her claim, if
any, because of her default in this action: Melanie A. Palmer
5.

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: 620 South Ledford, Harrisburg, IL 62946
LOT TWO (2) IN BLOCK NINE (9) OF THE HIGH SCHOOL
ADDITION TO THE CITY OF HARRISBURG, SALINE COUNTY,
ILLINOIS. EXCEPT ANY INTEREST THAT MAY EXIST IN THE COAL,
OIL, GAS AND ALL OTHER MINERALS UNDERLYING SAID
PREMISES TOGETHER WITH THE RIGHT TO MINE AND REMOVE
THE SAME. PIN: 06-2-247-08
6.

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 .....

$ 455.00

U.S. Marshal costs for service of summons ....

$ 402.57

Fee to publish notice of pendency of action ...

$ 728.52

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Title expenses......................................................
Late Charges .......................................................

$ 105.39

Escrow/Impound ..............................................

$ 281.17

Interest of Fees ....................................................

$ 1,262.84

Escrow Expenses ................................................

$ 8,064.11

TOTAL
(b)

$ 867.00

$12,166.60

............................................... ……

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

$27,065.12

Accrued interest at $5.8335 per day due and
unpaid as of July 21, 2017 .................................

$ 6,849.62

TOTAL

$33,914.74

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

Total amount due plaintiff as of July 21, 2017,
Including costs detailed in 5(a) ........................ $46,081.34
(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, 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.

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(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)

7.

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.

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

property for tax for the year 2016, and the property will be sold subject to the interest of
Saline 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 Melanie A. Palmer, for $46,081.34, and unless the
Defendant and/or her 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 $46,081.34 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 Saline County, Illinois, by the United States Marshal for the Southern

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District of Illinois at the front door of the Saline County Courthouse in the City of
Harrisburg, Illinois.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that judgment is
entered in favor of the United States and against Melanie A. Palmer. The real estate
shall be sold free and clear of any claimed lien of Melanie A. Palmer.
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 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 the 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 the 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
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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 of foreclosure is entered since the value of the mortgaged real estate
as of the date of the judgment is less than 90% of the amount due, and the mortgagee
waives any and all rights to a personal deficiency judgment against the mortgagor and
against all other persons liable for the indebtedness or other obligations secured by the
mortgage.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that out of the
proceeds of such sale the United States Marshal shall retain her disbursements and fees,
and out of the remainder of the proceeds she shall pay to the plaintiff $46,081.34,
together with lawful interest to be computed thereon to the date of this decree and any
court costs of this action in its behalf. The United States Marshal shall take receipts from
the respective parties from whom she may make payments and file the same together
with her report of sale to this Court, and in case the property shall sell for a sum more
than sufficient to make the aforesaid payments, then after making the payments she
shall bring such surplus monies into Court without delay for further distribution by
order of this Court.
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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 mortgagor shall be
entitled to retain possession of the above-described real estate. After the 30th day the
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 the property to the certificate holder immediately
upon expiration of the 30-day time period. In default of mortgagor 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 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
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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 the sale shall be insufficient to pay sums due to plaintiff with interest as
aforesaid after deducting the costs as aforesaid, the United States Marshal shall specify
the amount of the deficiency in her report.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Court retains
jurisdiction of the subject matter of this action and the parties for the purpose of
enforcing this decree; the United States Marshal shall report her actions at the earliest
possible time.
IT IS SO ORDERED.
DATED: September 5, 2017
_____________________________
NANCY J. ROSENSTENGEL
United States District Judge

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