Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-00922/USCOURTS-caed-2_07-cv-00922-1/pdf.json

Nature of Suit Code: 625
Nature of Suit: Drug Related Seizure of Property
Cause of Action: 21:881 Forfeiture Property - Real Estate

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McGREGOR W. SCOTT

United States Attorney

KRISTIN S. DOOR, SBN 84307

Assistant United States Attorney

501 I Street, Suite 10-100

Sacramento, CA 95814

Telephone: (916)554-2723

Attorneys for Plaintiff

United States of America

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA, ) 2:07-cv-00922 RRB GGH

 )

Plaintiff, ) STIPULATION FOR EXPEDITED

 ) SETTLEMENT BETWEEN PLAINTIFF

v. ) UNITED STATES OF AMERICA AND

 ) MORTGAGEIT, INC. AND ORDER

REAL PROPERTY LOCATED AT 10664 ) THEREON

& 10683 BIRCHVILLE ROAD, NEVADA ) 

CITY, CALIFORNIA, NEVADA )

COUNTY, APN NOS: 60-290-06 AND )

60-290-13, INCLUDING ALL )

APPURTENANCES AND IMPROVEMENTS )

THERETO, )

 )

 Defendant. )

________________________________)

IT IS HEREBY STIPULATED by and between plaintiff United

States of America and claimant MortgageIT, Inc. (hereafter

"MortgageIT"), and through their respective counsel of record,

that MortgageIT has a valid pre-existing mortgage lien on the

defendant real property described in this Stipulation, which is

not contested by plaintiff. 

Plaintiff United States of America and claimant MortgageIT

further stipulate that:

1. Any violation of 21 U.S.C. § 881(a)(7) involving the

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defendant property located at 10664 & 10683 Birchville Road,

Nevada City, California, Nevada County, APN NOS: 60-290-06 and

60-290-13, occurred without the knowledge and consent of

MortgageIT. 

2. Plaintiff United States agrees that upon entry of a

Final Judgment of Forfeiture in favor of the United States,

plaintiff, through the United States Marshals Service or its

agent(s), shall undertake to sell the defendant real property in

a commercially reasonable manner and to sell said property for

fair market value (the "Purchase Price"). The following costs

and expenses of sale shall be deducted from the Purchase Price

and paid directly out of escrow in the following order:

(a) First, the costs incurred by the United States

Marshals Service to the date of close of escrow, including the

cost of posting, service, advertising, and maintenance;

(b) Second, to the Placer County Tax Collector (for

real property taxes) of all real property taxes assessed and

unpaid against the defendant real property prorated to the date

of entry of the Final Judgment of Forfeiture;

(c) Third, the costs and expenses associated with the

actual sale of the defendant real property, e.g. a real estate

commission, escrow and title fees.

(d) Fourth, any county transfer taxes.

(e) Fifth, to MortgageIT as follows:

(i) all unpaid principal due to MortgageIT under

the Promissory Note (hereafter "Note") dated March 6, 2007, in

the original principal amount of $500,000.00, a true and correct

copy of which is attached hereto as Exhibit A, and which is

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secured by a Deed of Trust dated March 6, 2007, recorded March

13, 2007, as Instrument number: DOC-2007-0007798-00 of the

Official Records of Nevada County, California ("Deed of Trust"),

a true and correct copy of which is attached hereto as Exhibit B.

As of June 11, 2007, the principal due and owing under the Note

is $500,000.00. 

(ii) all unpaid interest due as of the date of

the closing of the sale of the defendant real property at the

contractual (not default) rate under the above-referenced Note

and Deed of Trust until the date of payment. As of June 11,

2007, the accrued interest due and owing is $<126.14>. (credit

balance.) Interest will continue to accrue under the Note at a

rate of $89.0411/day from June 11, 2007. 

(iii) all fees, costs, and advances, including but

not limited to reasonable attorney fees, prepayment fees, taxes

and hazard insurance as provided under the terms of the Note and

Deed of Trust.

3. The payment to MortgageIT shall be in full settlement

and satisfaction of any and all claims by MortgageIT to the

defendant real property and all claims resulting from the

incidents or circumstances giving rise to this lawsuit.

4. Upon payment in full as set forth in ¶ 2(e)(i)-(iii),

above, claimant MortgageIT agrees to assign and convey its

security interest to the United States via recordable documents

and to release and hold harmless the United States, and any

agents, servants, and employees of the United States, (or any

state or local law enforcement agency) acting in their individual

or official capacities, from any and all claims by MortgageIT and

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its agents which currently exist or which may arise as a result

of the government’s action against the real property.

5. In the event it is determined that the proceeds in the

sale of the defendant real property would be insufficient to pay

MortgageIT in full as set forth in ¶ 2(e)(i)-(iii), above, after

the disbursements described in ¶ 2 (a)-(d) are made, above, the

plaintiff United States agrees to release its interest in the

defendant real property and consent to the exercise of

MortgageIT’s state law rights to foreclose upon its deed of trust

which secures the obligation to MortgageIT. Plaintiff shall not

enter into a binding agreement to sell the defendant real

property unless the proceeds of such sale are sufficient to pay

MortgageIT in full as set forth in ¶ 2(e)(i)-(iii), unless

MortgageIT otherwise consents in writing.

6. Claimant MortgageIT agrees not to pursue against the

United States any other rights that it may have under the

mortgage instrument, including, but not limited to, the right to

initiate a foreclosure action without the consent of the United

States Attorney’s Office or this Court. 

7. Claimant MortgageIT agrees to notify the United States

Attorney at the end of the first payment cycle in which a payment

in not made under the terms specified in the security instrument

and promissory note. Claimant further agrees to join any

government motions for interlocutory or stipulated sale of the

defendant real property if the proceeds of such sale will be

sufficient to pay MortgageIT in full as set forth in ¶ 2(e)(i)-

(iii), and any motions to remove occupants from the property for

nonpayment of mortgage or rent, destruction of property, or other

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just cause.

8. Claimant MortgageIT understands and agrees that by

entering into this stipulation of its interests in the defendant

real property, it waives any rights to further litigate against

the United States and its interest in the defendant real property

and to petition for remission or Mitigation of the forfeiture. 

Unless otherwise provided by this Stipulation or specifically

directed by order of this Court, MortgageIT is hereby excused and

relieved from further participation in this action.

9. MortgageIT understands and agrees that the United

States reserves the right to void the expedited settlement

agreement if, before payments of the mortgage or lien, the U.S.

Attorney obtains new information indicating that the mortgagee or

lien holder is not an "innocent owner" or "bona fide purchaser"

pursuant to applicable forfeiture statutes. The U.S. Attorney

also reserves the right, in its discretion, to terminate the

forfeiture at any time and release the subject property. In

either event, the United States shall promptly notify the

mortgagee or lien holder of such action. A discretionary

termination of forfeiture shall not be a basis for any award of

fees under 28 U.S.C. § 2465. 

10. The parties agree to execute further documents, to the

extent necessary, to convey clear title to the defendant real

property to the United States and to further implement the terms

of this stipulation.

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11. The terms of this Stipulation are contingent upon 

forfeiture of the defendant real property to the United States

and the Court’s entry of a Final Judgment of Forfeiture.

Dated: August 21, 2007 McGREGOR W. SCOTT

United States Attorney

 By /s/ Kristin S. Door 

KRISTIN S. DOOR

Assistant Unites States Attorney

Attorney for Plaintiff

Dated: August 20, 2007

 

/s/ Troy H. Slome 

 TROY H. SLOME

Attorney for Claimant

MortgageIT, Inc.

ORDER

This Stipulated Expedited Settlement is hereby APPROVED.

Dated: August 21, 2007

/s/ Ralph R. Beistline 

RALPH R. BEISTLINE

UNITED STATES DISTRICT JUDGE

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