Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_06-cv-01134/USCOURTS-caed-2_06-cv-01134-4/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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 The United States entered into a similar stipulation with Countrywide 1

Home Loans, Inc. and Mortgage Electronic Registration Systems, Inc. ("MERS")

in connection with a second-position loan secured by the defendant real

property. MERS was named the nominee for the lender on the second-position

deed of trust. The instant stipulation with MERS relates to a first-position

loan in which MERS was named the nominee for the lender on the first-position

deed of trust. 

1

McGREGOR W. SCOTT

United States Attorney

KRISTIN S. DOOR, SBN 84307

Assistant U.S. Attorney

501 I Street, Suite 10-100

Sacramento, California 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, ) 2:06-CV-01134-WBS-GGH

)

Plaintiff, ) AMENDED STIPULATION AND ORDER 

) EXPEDITED SETTLEMENT BETWEEN 

v. ) PLAINTIFF UNITED STATES OF 

) AMERICA AND MORTGAGE 

REAL PROPERTY LOCATED AT 604 ) ELECTRONIC REGISTRATION 

WREN COURT, ROSEVILLE, ) SYSTEMS, INC. 

CALIFORNIA, PLACER COUNTY, )

APN: 469-070-025, INCLUDING )

ALL APPURTENANCES AND )

IMPROVEMENTS THERETO, ) 

) 

 Defendant. )

______________________________)

IT IS HEREBY STIPULATED by and between plaintiff United

States of America and claimant Mortgage Electronic Registration

Systems, Inc. (hereafter MERS) through their respective counsel 1

of record, that MERS has a valid pre-existing mortgage lien on

the defendant real property described in this Stipulation, which

Case 2:06-cv-01134-WBS-GGH Document 36 Filed 06/26/07 Page 1 of 6
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is not contested by plaintiff. 

Plaintiff United States of America and claimant MERS further

stipulate that:

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

defendant property located at 604 Wren Court, Roseville,

California, Placer County, APN: 469-070-025, occurred without the

knowledge and consent of MERS.

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

sale of the defendant real property.

(d) Fourth, any county transfer taxes.

(e) Fifth, to MERS as the nominee for the lender of

the deed of trust encumbering the defendant real property in the

first priority position, as follows:

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(i) all unpaid principal due to MERS under the

Promissory Note dated December 11, 2003, in the original

principal amount of $236,250.00, a true and correct copy of which

is attached hereto as Exhibit "A" ("Note"), and which is secured

by a Deed of Trust dated December 11, 2003, recorded December 22,

2003, as instrument number 2003-0209726 of the Official Records

of Placer County, California ("Deed of Trust"), a true and

correct copy of which is attached hereto as Exhibit "B". As of

June 12, 2007, the principal amount owed to MERS pursuant to the

Note was $235,704.84. 

(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;

(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.

(f) Sixth, to Countrywide Home Loans, Inc. and

Mortgage Electronic Registration Systems, Inc., in accordance

with the terms of the Stipulation for Expedited Settlement

between Plaintiff United States of American and Countrywide Home

Loans, Inc. and Mortgage Electronic Registration Systems, Inc.,

filed herein on April 19, 2007.

3. The payment to MERS shall be in full settlement and

satisfaction of any and all claims by MERS to the defendant real

property and all claims resulting from the incidents or

circumstances giving rise to this lawsuit.

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

above, claimant MERS agrees to reconvey its interest to the

United States via recordable documents and cause those to be

recorded, 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 MERS and its

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

the government’s action against the property.

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

sale of the defendant real property would be insufficient to pay

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

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

the plaintiff United States agrees to release its interest in the

defendant real property and consent to the exercise of MERS's

state law rights to foreclose upon its deed of trust which

secures the obligation to MERS. Plaintiff shall not enter into a

binding agreement to sell the defendant real property unless the

proceeds of such sale are sufficient to pay MERS in full as set

forth in ¶ 2(e)(i)-(iii), unless MERS otherwise consents in

writing.

6. Claimant MERS 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 MERS agrees to notify the United States

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

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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 MERS 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

just cause.

8. Claimant MERS 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, MERS is hereby excused and

relieved from further participation in this action.

9. MERS 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. 

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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.

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: June 12, 2007 McGREGOR W. SCOTT

United States Attorney

/s/ Kristin S. Door

KRISTIN S. DOOR

Assistant Unites States Attorney

Attorney for Plaintiff

Dated: June 18, 2007

 

/s/ Glenn H. Wechsler 

GLENN H. WECHSLER

Law Offices of Glenn H. Wechsler

Attorneys for Claimant MERS

(Original signature retained

by plaintiff's attorney)

ORDER

This Amended Stipulated Expedited Settlement is hereby APPROVED.

Dated: June 25, 2007

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