United States of America v. Ferrell et al

Filing 20

DECREE IN FORECLOSURE OF REVERSE MORTGAGE. Signed by Judge James L Graham on 8/3/12. (ds)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF OHIO
EASTERN DIVISION

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UNITED STATES OF AMERICA,
Plaintiff,
v.
TERRENCE C. FERRELL, et al.,
Defendants.

CIVIL NO. 2:12CV00054
JUDGE GRAHAM
MAGISTRATE JUDGE ABEL

DECREE IN FORECLOSURE
OF REVERSE MORTGAGE
This cause came on to be considered upon the complaint duly filed by the plaintiff,
UNITED STATES OF AMERICA; the answer of defendant Treasurer of Franklin County, Ohio;
the entry of default (as provided by Rule 55, Federal Rules of Civil Procedure, for having failed
to plead or otherwise defend as provided in said Rule) filed by the Clerk of this Court for and on
behalf of the defendants, Terrence C. Ferrell, Donna Ferrell, and Unknown Spouse, Heirs,
Devisees, Legatees, Executors, Administrators, and Assigns, if any, of Eileen J. Ferrell,
Deceased; and upon the evidence.
This is an action to foreclose on a Home Equity Conversion Mortgage (HECM), known
in the general financial field as a reverse mortgage. The reverse mortgage program was
established by Congress under 12 U.S.C. § 1715, et seq. and further regulated by 24 C.F.R. Part
206, et seq. Under the reverse mortgage program, the borrower does not have a payment plan.
The amount owed on the mortgage becomes due when the borrower dies or has vacated the

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premises for a period of one year.
Plaintiff, United States of America, is the holder of an Adjustable Rate Note (Home
Equity Conversion) wherein Eileen J. Ferrell, now deceased, is the borrower. Under the terms of
Paragraph 7 of the Note (Plaintiff’s Complaint, Exhibit 1) and Paragraph 9 of the reverse
Mortgage (Plaintiff’s Complaint Exhibit 2), payment in full was required on the date of death of
Eileen J. Ferrell.
The Court finds that it has jurisdiction of the subject matter of this action and the
defendants relating thereto.
The Court further finds that there is due to plaintiff on the mortgage indebtedness of
Eileen J. Ferrell, Deceased on the note set out in the complaint the principal amount of
$70,934.53, plus taxes/insurance advances for the sum of $7,431.75, plus service fees for the sum
of $6,195.00, plus interest as of October 31, 2011 for the sum of $40,758.96, for a total sum due
and owing to the United States of America of $125,320.24, as of October 31, 2011; together with
interest accruing at the rate of $9.24 per day from October 31, 2011 on the principal amount to
the date of sale, interest thereafter at the legal rate, and any authorized expenses incurred by the
plaintiff chargeable to the mortgage account of said decedent under the terms of said note, or as
otherwise provided by law.
The Court further finds that in the event of a court-ordered sale of the real estate, from the
proceeds of the sale, first priority would be given to the Treasurer of Franklin County, Ohio for
real estate taxes due and owing on Parcel Number 010-123981-00. Other defendants/lienholders
would be paid in the order of their priority as determined by the Court.
IT IS THEREFORE, ORDERED:
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1.

That the terms of the mortgage contract of Eileen J. Ferrell, Deceased have been

breached.
2.

That unless the principal amount of $70,934.53, plus taxes/insurance advances for

the sum of $7,431.75, plus service fees for the sum of $6,195.00, plus interest as of October 31,
2011 for the sum of $40,758.96, for a total sum due and owing to the United States of America of
$125,320.24, as of October 31, 2011; together with interest accruing at the rate of $9.24 per day
from October 31, 2011 are paid within ten days from the entry of this decree, the equity of
redemption and right of redemption of any and all persons claiming through Eileen J. Ferrell,
Deceased shall be foreclosed and the real property described in the complaint shall be sold free
and clear of all liens, rights, or interest of the parties to this action, and that immediately after
said ten day period, an Order for Sale shall issue to the United States Marshal for the Southern
District of Ohio directing him to advertise and sell said real property according to law and the
orders of this Court.
3.

That Terrence C. Ferrell shall have ten days within which to exercise his right of

redemption in the real property. In order to exercise this right, the party must contact the office
of the United States Attorney to arrange payment of the amount listed in paragraph 2 within the
permitted time.
4.

That the liens and rights of all parties shall attach to the proceeds of sale in order

of their priority, the settlement of claims and priorities being reserved pending further order of
this Court.
5.

That counsel for plaintiff, United States of America shall receive a copy of this

Decree in Foreclosure through the Court’s CM/ECF system. The Office of the United States
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Attorney shall serve a copy of this Decree in Foreclosure, after it is entered, upon the following
parties, who are not registered participants of the Court’s CM/ECF system: Terrence C. Ferrell,
Donna Ferrell, and Mary E. Johnson, Assistant Prosecuting Attorney.

s/ James L. Graham
JAMES L. GRAHAM
UNITED STATES DISTRICT JUDGE

APPROVED:
CARTER M. STEWART
United States Attorney

s/Bethany J. Hamilton
BETHANY J. HAMILTON (0075139)
Assistant United States Attorney
Attorney for Plaintiff
303 Marconi Boulevard, Suite 200
Columbus, Ohio 43215
Telephone: [phone]
Facsimile: [phone]
E-mail: [e-mail]
RON O’BRIEN
Prosecuting Attorney
Franklin County, Ohio

s/Mary E. Johnson (per written approval of 7/27/12)
MARY E. JOHNSON (0037623)
Assistant Prosecuting Attorney
373 South High Street, 17th Floor
Columbus, Ohio 43215
Telephone: [phone]
E-mail: [e-mail]

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