Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_06-cv-01134/USCOURTS-caed-2_06-cv-01134-2/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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Realty Mortgage Corporation, doing business in California as Mylor 1

Financial originated a second position loan secured by the defendant real

property. MERS was named the nominee for the lender on the deed of trust. 

Mylor Financial released the second position loan to claimant Countrywide, 

who is now servicing the loan.

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, ) STIPULATION FOR EXPEDITED

) SETTLEMENT BETWEEN PLAINTIFF

v. ) UNITED STATES OF AMERICA AND

) COUNTRYWIDE HOMES LOANS, INC.

REAL PROPERTY LOCATED AT 604 ) AND MORTGAGE ELECTRONIC 

WREN COURT, ROSEVILLE, ) REGISTRATION SYSTEMS, INC. AND

CALIFORNIA, PLACER COUNTY, ) ORDER THEREON

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 Countrywide Home Loans, Inc. and 1

Mortgage Electronic Registration Systems, Inc. (hereafter

"Countrywide"), through their respective counsel of record, that

Countrywide has a valid pre-existing mortgage lien on the

defendant real property described in this Stipulation, which is

Case 2:06-cv-01134-WBS-GGH Document 28 Filed 04/19/07 Page 1 of 6
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not contested by plaintiff. 

Plaintiff United States of America and claimant Countrywide

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 Countrywide.

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 Mortgage Electronic Registration

Systems, Inc. as the beneficial holder of the deed of trust

encumbering the defendant real property in the first priority

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position, as nominee for the Lender, Realty Mortgage Corporation,

doing business in California as Mylor Financial.

(f) Sixth, to Countrywide as follows:

(i) all unpaid principal due to Countrywide under

the Promissory Note dated December 11, 2003, in the original

principal amount of $67,500.00, 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 2003-0209733 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

March 28, 2007, the principal amount owed to Countrywide pursuant

to the Note was $65,870.88. 

(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.

3. The payment to Countrywide shall be in full settlement

and satisfaction of any and all claims by Countrywide 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(f)(i)-(iii),

above, claimant Countrywide agrees to reconvey its interest to

the United States via recordable documents and cause those to be

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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 Countrywide

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

Countrywide in full as set forth in ¶ 2(f)(i)-(iii), above, after

the disbursements described in ¶ 2 (a)-(e) 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

Countrywide’s state law rights to foreclose upon its deed of

trust which secures the obligation to Countrywide. Plaintiff

shall not enter into a binding agreement to sell the defendant

real property unless the proceeds of such sale are sufficient to

pay Countrywide in full as set forth in ¶ 2(f)(i)-(iii), unless

Countrywide otherwise consents in writing.

6. Claimant Countrywide 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 Countrywide 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

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defendant real property if the proceeds of such sale will be

sufficient to pay Countrywide in full as set forth in ¶ 2(f)(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 Countrywide 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, Countrywide is hereby excused

and relieved from further participation in this action.

9. Countrywide 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

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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: April 17, 2007 McGREGOR W. SCOTT

United States Attorney

/s/ Kristin S. Door 

KRISTIN S. DOOR

Assistant Unites States Attorney

Attorney for Plaintiff

Dated: April 17, 2007

 

/s/ David A. Brooks 

DAVID A. BROOKS

Attorneys for Claimants

Countrywide and MERS

(Original signature retained

by plaintiff's attorney)

ORDER

This Stipulated Expedited Settlement is hereby APPROVED.

Dated: April 18, 2007

Case 2:06-cv-01134-WBS-GGH Document 28 Filed 04/19/07 Page 6 of 6