United States District Court, D. Colorado
BENJAMIN S. CARSON, Secretary of Housing and Urban Development, Plaintiff,
ESTATE OF VERNA MAE GOLZ, WILLIAM J. GOLZ, MARCUS J. GOLZ, MATTHEW J. GOLZ, and UNKNOWN HEIRS AND CLAIMANTS OF THE ESTATE OF VERNA MAE GOLZ, Defendants.
RECOMMENDATION OF UNITED STATES MAGISTRATE
Michael E. Hegarty United States Magistrate Judge.
the Court is Plaintiff's Motion for Summary Judgment
[filed December 12, 2018; ECF No. 127]. Following
review and consideration of the motion, briefs, and attached
exhibits, the Court respectfully recommends that the
Honorable R. Brooke Jackson grant the Plaintiff's motion.
FINDINGS OF FACT
real property at issue in this case is located at 130 Beaver
Creek Drive, Nederland, Colorado, 80466, with a legal address
of Lot 19, Beaver Valley Estates, County of Boulder, State of
Colorado (the “Property”).
January 18, 2002, Verna Mae Golz entered into a loan
agreement (the “Loan Agreement”) with Financial
Freedom Senior Funding Corporation (“Financial
Freedom”). ECF No. 49 at ¶ 10.6 (undisputed
facts); ECF No. 127-1.
Golz executed a promissory note with Financial Freedom. ECF
No. 49 at ¶ 10.7; see also ECF No. 127-2.
Golz executed a promissory note with the Department of
Housing and Urban Development (“HUD” or
“Plaintiff”). ECF No. 49 at ¶ 10.7; see also
ECF No. 127-3.
First Note is secured by a deed of trust naming Financial
Freedom as the beneficiary (the “First Deed of
Trust”). ECF No. 49 at ¶ 10.8; see also ECF No.
Second Note is secured by a deed of trust naming the
Secretary of HUD as the beneficiary. ECF No. 49 at ¶
10.8; see also ECF No. 127-5.
Deeds of Trust encumber the Property and were recorded with
the Boulder County Clerk on January 26, 2002 as Record Nos.
2246751 and 2246752, respectively. ECF No. 49 at ¶ 10.8;
see also ECF Nos. 127-4, 127-5.
December 2011, the mortgagee servicer (OneWest Bank FSB,
parent company of First Financial) submitted an insurance
claim to HUD under the provisions in 24 C.F.R. §
206.123(a)(1) and § 206.107, which allow a lender to
submit a claim if the loan balance exceeds 98% of the maximum
claim amount. ECF No. 127-6 at 9.
December 2011, HUD paid out $242, 013.06 on the insurance
claim for Ms. Golz's loan. ECF No. 127-7.
Financial Freedom then assigned the First Note to HUD.
See ECF No. 127-2 at 3.
First Deed of Trust was also assigned to the Secretary of
HUD. ECF No. 49 at ¶¶ 10.9, 10.10; see
also ECF No. 127-8.
holds the Notes and Deeds of Trust. See ECF Nos.
127-2 - 127-5; ECF No. 49 at ¶¶ 5, 10; ECF No. 64
at ¶ 1 (admitting allegation (ECF No. 31 ¶ 1) that
HUD “brings this foreclosure action as the holder of
promissory notes and deeds of trust on the property”).
There are no other encumbrances on the Property and HUD is
the only lienholder. ECF No. 49 at ¶ 10.5.
Golz passed away on May 16, 2014. ECF No. 49 at ¶ 10.11.
Notes and Deeds of Trust provide that the loan balance
becomes immediately due and payable upon Ms. Golz's
death. ECF No. 127-2 at ¶ 7; ECF No. 127-3 at ¶ ...