United States of America v. Albertson et al
ORDER OF SALE. (Written Opinion). Signed by Judge Michael J. Davis on 8/31/17. (GRR) Modified text on 8/31/2017 (ACH). cc: Albertsons
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MINNESOTA
UNITED STATES OF AMERICA,
DAVID ALBERTSON, and
OCWEN LOAN SERVICING, LLC,
Civil No. 16-3799−MJD/DTS
ORDER OF SALE
This Court entered a final judgment in this action on August 31, 2017 [Docket No.
41], in favor of plaintiff United States and against defendants Robert and Patricia
Albertson for unpaid federal income tax liabilities. The judgment also ordered that the
federal tax liens associated with those liabilities be enforced with a judicial sale of the
land, along with all improvements, buildings, and appurtenances thereon, now known as
and numbered 4701 West Branch Road, Mound, Minnesota (the “Property”), which is
owned by defendant David Albertson, who holds partial title in the Property as the
nominee of Robert and Patricia Albertson, and that the proceeds of sale be distributed as
set forth in the Court’s final judgment. The real property is more fully described as
Lot 1, Block 1, West Branch Acres, Hennepin County, Minnesota
Hennepin County Property Identification Number: 07-117-23-22-0016
The Court now ORDERS that the Property shall be sold, pursuant to 26 U.S.C.
§ 7403(c) and 28 U.S.C. §§ 2001 and 2002, in order to collect the unpaid federal tax
liabilities as follows:
1. The Internal Revenue Service (“IRS”) Property Appraisal and Liquidation
Specialists (“PALS”) are authorized to offer for public sale and to sell the Property.
2. Terms and Conditions: The terms and conditions of the sale are set forth below.
a. The sale of the Property shall be by public auction to the highest bidder, free
and clear of all rights, titles, claims, liens, and interests of all parties to this
action, including the plaintiff United States and the defendants Robert
Albertson, Patricia Albertson, David Albertson, and any successors in interest
or transferees of those parties.
b. The sale shall be subject to building lines, if established, all laws, ordinances,
and governmental regulations (including building and zoning ordinances)
affecting the Property, and easements, restrictions, and reservations of record,
c. The sale shall be held either at the courthouse of the county or city in which the
Property is located or on the Property’s premises.
Notice of Sale
d. The PALS shall announce the date and time for sale.
e. Notice of the sale shall be published once a week for at least four consecutive
weeks before the sale in at least one newspaper regularly issued and of general
circulation in Hennepin County and, at the discretion of the PALS, by any
other notice or advertisement that the PALS deems appropriate. The notice of
the sale shall contain an adequate description of the Property but need not
contain the full legal description, and shall contain the material terms and
conditions of sale set forth in this order of sale.
The Property shall be offered for sale “as is.”
g. The sale shall be made without any right of redemption.
h. The PALS shall set, and may adjust, the minimum bid. If the minimum bid is
not met or exceeded, the PALS may, without further permission of this Court,
and under the terms and conditions in this order of sale, hold a new public sale,
if necessary, and adjust the minimum bid.
Payment of Deposit and Balance
i. At the time of the sale, the successful bidder(s) shall deposit with the PALS, by
money order, certified check, or cashier’s check made payable to the Clerk of
the United States District Court for the District of Minnesota, a deposit in an
amount between five (5) and twenty (20) percent of the minimum bid as
specified by the PALS in the published notice of sale. Upon receipt, the PALS
will deposit the funds with the Clerk of this Court. Before being permitted to
bid at the sale, potential bidders shall display to the PALS proof that they are
able to comply with this requirement. No bids will be accepted from any
person(s) who have not presented proof that, if they are the successful
bidders(s), they can make the deposit required by this order of sale.
The successful bidder(s) shall pay the balance of the purchase price for the
Property within forty-five (45) days following the date of the sale. The money
order, certified check, or cashier’s check shall be made payable to the Clerk of
the United States District Court for the District of Minnesota and shall be given
to the PALS who will deposit the funds with the Clerk of this Court. If the
bidder fails to fulfill this requirement, the sale shall be treated as null and void,
and the deposit shall be forfeited and disbursed pursuant to further order of this
Court, first to cover the expenses of the sale, then any amount remaining to be
applied to the judgment for the federal tax liabilities entered in this case. The
Property shall be again offered for sale under the terms and conditions of this
order of sale or, in the alternative, sold to the second highest bidder, at the sole
discretion of the United States. The successful bidder(s) at the new sale or
second highest bidder, as the case may be, shall receive the Property free and
clear of all rights, titles, claims, liens, and interests of the defaulting bidder(s).
k. The Clerk of this Court is directed to accept the deposits and the balance of the
proceeds of the sale and deposit them into the Court’s registry for distribution
as provided for pursuant to further order of this Court.
Confirmation of Sale
l. The sale of the Property shall be subject to confirmation by this Court. On
confirmation of the sale, ownership and possession of the Property shall
transfer to the successful bidder(s), and all interests in, liens against, and titles
and claims to, the Property that are held or asserted by the parties to this action
are discharged and extinguished.
m. After the confirmation of the sale, the IRS shall execute and deliver a deed
under the authority of this Court conveying the Property, effective as of the
date on which this Court confirms the sale, to the successful bidder(s). Also,
after this Court confirms the sale, and on receipt of the deed from the
successful bidder, the Recording Official of Hennepin County, Minnesota,
shall cause the transfer of the Property to be reflected upon that county's
register of title. The successful bidder(s) shall pay, in addition to the amount of
the bid, any county or local documentary stamps and registry fees as provided
3. Preservation of the Property: Up until the date on which this Court confirms the
sale of the Property, Robert Albertson, Patricia Albertson, and David Albertson shall take
all reasonable steps necessary to preserve the Property (including all buildings,
improvements, fixtures and appurtenances on the Property) in its current condition
including, without limitation, maintaining a fire and casualty insurance policy on the
Property, and Robert Albertson, Patricia Albertson, and David Albertson and all other
occupants of the Property shall neither commit waste against the Property, nor cause or
permit anyone else to do so. Up until the date on which this Court confirms the sale of the
Property, the defendants in this case shall do nothing that tends to reduce the value or
marketability of the Property, nor shall they cause or permit anyone else to do so. Such
defendants shall not record any instrument, publish any notice, or take any other action
(such as running newspaper advertisements, posting signs, or making internet or social
media postings) that may directly or indirectly tend to adversely affect the value of the
Property or that may tend to deter or discourage potential bidders from participating in
the public auction, nor shall they cause or permit anyone else to do so. If the Property is
destroyed before the date on which this Court confirms the sale of the Property and
Robert Albertson, Patricia Albertson, and David Albertson are entitled to insurance
proceeds, the insurance proceeds shall be paid into the registry of this Court. Violation of
this paragraph shall be deemed a contempt of court and punishable as such.
4. Vacating the Property: All persons occupying the Property shall vacate the
Property permanently within 30 days from the date set by the Department of Justice by
giving written notice via certified mail to Robert Albertson, Patricia Albertson, David
Albertson, and any other adult residing on the Property, each taking with them his or her
personal property (but leaving all improvements, buildings, fixtures, and appurtenances
to the Property).
If any person fails or refuses to vacate the Property by the date specified in this
order of sale, or attempts to re-enter the Property thereafter, the PALS is authorized to
coordinate with the United States Marshals Service to take all actions that are reasonably
necessary to have those persons ejected or excluded, in particular:
a. The U.S. Marshals Service is authorized to and directed to take any and all
necessary actions, including but not limited to the use of reasonable force, to
enter and remain on the premises, which includes, but is not limited to, the
land, the buildings, vehicles, and any structures located thereon, for the
purpose of executing this Order.
b. The United States Marshals Service is further authorized and directed to arrest
and/or evict from the premises any and all persons who obstruct, attempt to
obstruct, or interfere or attempt to interfere, in any way with the execution of
5. Abandoned Personal Property: Any personal property remaining on the
Property thirty (30) days after the date requested by PALS is deemed forfeited and
abandoned, and the PALS is authorized to dispose of it in any manner they see fit,
including sale. If the abandoned personal property is sold, the proceeds of the sale are to
be deposited into the registry of this Court and disbursed pursuant to further order of this
Court, first to cover the expenses of the sale, then any amount remaining to be applied to
the judgment for the federal tax liabilities entered in this case or as otherwise ordered.
Money orders and checks for the purchase of the personal property shall be made payable
to the Clerk of the United States District Court for the District of Minnesota and the Clerk
of the Court is directed to accept cash, money orders, and checks, and deposit such items
into the Court’s registry for distribution as provided for pursuant to further order of this
6. Forwarding Address: No later than two business days after vacating the Property
pursuant to the deadline set forth in paragraph 4, above, Robert Albertson, Patricia
Albertson, and David Albertson or their agent(s) shall notify counsel for the United States
of a forwarding address where they can be reached. Notification shall be made by
contacting the U.S. Department of Justice Tax Division’s Trial Attorney, Alison A.
Yewdell, at (202) 514-6508.
7. Access to the Property: Up until the date on which this Court confirms the sale
of the Property, the IRS, PALS, and their representatives are authorized to have free and
full access to the Property in order to take any and all actions necessary to preserve and
market the Property, including, but not limited to, retaining a locksmith or other person to
change or install locks or other security devices on any part of the Property.
8. Claims: After the Court confirms the sale of the Property, the sale proceeds
deposited with the Clerk of this Court shall be distributed consistent with this Court’s
final judgment (Consent Judgment and Foreclosure Order [Docket No. 41]).
IT IS SO ORDERED.
Signed this 31st day of Aigist, 2017.
s/ Michael J. Davis
HON. MICHAEL J. DAVIS
UNITED STATES DISTRICT JUDGE
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