Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_10-cv-00385/USCOURTS-caed-1_10-cv-00385-1/pdf.json

Nature of Suit Code: 290
Nature of Suit: Other Real Property Actions
Cause of Action: 28:1441 Petition for Removal- Declaratory Judgement

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Michael J. Lampe #82199

Michael P. Smith #206927

Matthew D. Owdom #258779

Law Offices of Michael J. Lampe

108 West Center Avenue

Visalia, California 93291

Telephone (559) 738-5975

Facsimile (559) 738-5644

Attorneys for Plaintiff

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

HSBC BANK USA, N.A., as Trustee for

OMAC-3, a Mortgage Backed Security,

 Plaintiff,

vs.

DENNIS J. SCHMIDT, THE INTERNAL

REVENUE SERVICE, U.S. BANK, N.A., as

Trustee for Terwin Mortgage Trust

2005-5SL, Asset-Backed Certificates, Series

2005-5SL, and DOES 1-25, inclusive, 

 Defendants.

Case No. 1:10-cv-00385-OWW-DLB

STIPULATION AND ORDER

Plaintiff HSBC BANK USA, a National Assocation, as Trustee for OMAC-3, (HSBC) and

Defendants DENNIS J. SCHMIDT (Schmidt), THE UNITED STATES OF AMERICA, Internal

Revenue Service (United States), U.S. BANK, N.A., as Trustee for Terwin Mortgage Trust

2005-5SL, Asset-Backed Certificates, Series 2005-5SL (U.S. Bank), hereby stipulate as follows

and request an order resolving the above-captioned matter.

__________________________________

STIPULATION AND ORDER

Case 1:10-cv-00385-OWW -DLB Document 10 Filed 07/12/10 Page 1 of 4
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THIS STIPULATION IS ENTERED INTO WITH RESPECT TO THE FOLLOWING FACTS:

1. On or about February 11, 2010, HSBC commenced an action against Defendants

Schmidt, the United States, and U.S. Bank by filing a complaint (the Complaint) in the Superior

Court of the State of California in and for the County of Stanislaus, Case No. 650489 (the

action). 

2. On March 4, 2010, the United States removed the action to the United States

District Court for the Eastern District of California, where the action was docketed as Case No.

1:10-cv-00385-OWW-SMS. In the action, HSBC seeks to enforce a deed executed in 2005 by

Schmidt but lost prior to recordation, equitable subrogation, an equitable lien, and declaratory

relief with respect to certain real property that is the subject of the action, commonly known as

2220 Boston Way, Modesto, California, 95355, in Stanislaus County (the Modesto Property),

and more particularly described as follows:

LOT 6 IN BLOCK 11150 OF BEACON HILL NO. 2, PHASE 2, AS PER

MAP THEREOF RECORDED FEBRUARY 22, 1989 IN BOOK 33 OF

MAPS, AT PAGE 73, STANISLAUS COUNTY RECORDS.

APN: 077-36-45-101

3. The parties wish to resolve any outstanding disputes relating to the causes of

action set forth in the Complaint. 

IT IS THEREFORE AGREED BETWEEN THE PARTIES AND REQUESTED THAT THE

FOLLOWING IS ORDERED BY THE COURT:

4. Schmidt shall execute and notarize a valid, recordable, interspousal transfer deed

transferring his interest in the Modesto Property to his wife, Amelia M. Schmidt, in order to

replace the instrument which was lost prior to recordation during a 2005 refinance transaction

concerning the Modesto Property. HSBC shall provide the deed to be executed to Schmidt’s

counsel forthwith. Dennis J. Schmidt shall execute the deed within 14 days of receipt, and shall

forward the executed and notarized deed to HSBC’s counsel for recordation in the Official

Records of Stanislaus County. 

__________________________________

STIPULATION AND ORDER -2-

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5. The United States agrees to treat the re-executed interspousal transfer deed

referenced in paragraph 4, above, as if it were recorded on March 17, 2005, for purposes of

determining the priority of the parties’ respective interests in the Modesto Property. Thus, the

United States agrees that the secured interest in the Modesto Property held by HSBC and

evidenced by the Deed of Trust recorded on March 28, 2005, as Document No. 2005-0050436

of the of the Official Records of Stanislaus County, is senior to and has priority over its federal

tax lien evidenced by the Notice of Federal Tax Lien recorded on May 20, 2009, as Document

No. 2009-0050148 of the Official Records of Stanislaus County. 

6. U.S. Bank, the holder of a second Deed of Trust on the Modesto Property, hereby

relinquishes and disclaims any interest in the Modesto Property adverse to HSBC, however, U.S.

Bank reserves and retains all applicable rights and remedies under the laws of the United States

and the State of California as a junior encumbrancer. 

7. HSBC, Schmidt, the United States, and U.S. Bank request that this case be

dismissed on the grounds that a stipulated settlement has been reached between the parties,

the terms of which are contained and agreed to herein, to be ordered by the Court, with a waiver

of costs such that all parties will bear their own costs and attorney’s fees, if any there be.

8. The parties stipulate to the Court’s retention of jurisdiction for purposes of

enforcing the terms of this agreement.

 7/2/10 /S/

Dated: _______________ ________________________________

CRABTREE & SCHMIDT

Attorneys for Dennis J. Schmidt

By:Walter Schmidt

 6/29/10 /S/

Dated: _______________ ________________________________

LAW OFFICES OF MICHAEL J. LAMPE

Attorneys for HSBC Bank USA, N.A. 

By: Matthew D. Owdom

__________________________________

STIPULATION AND ORDER -3-

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 7/8/10 /S/

Dated: _______________ ________________________________

SPECIALIZED LOAN SERVICING LLC

Authorized Agent for U.S. BANK, N.A.

By:______________________________

BENJAMIN B. WAGNER

United States Attorney

 6/30/10 /S/

Dated: _______________ ________________________________

Adair Boroughs

Trial Attorney, Tax Division

U.S. Department of Justice

IT IS SO ORDERED.

Dated: July 9, 2010 /s/ Oliver W. Wanger 

emm0d6 UNITED STATES DISTRICT JUDGE

__________________________________

STIPULATION AND ORDER -4-

Case 1:10-cv-00385-OWW -DLB Document 10 Filed 07/12/10 Page 4 of 4