United States District Court, W.D. Kentucky, Louisville
Charles R. Simpson III, Senior Judge United States District
case is before the Court on Plaintiff United States of
America's motion for default judgment, summary judgment,
and an order of sale. DN 14. No. Defendant has responded.
Therefore, this matter is ripe for review. Finding that
Defendants Rosie Phillips and Portfolio Recovery Associates,
LLC (“PRA”) have defaulted, the Court will grant
default judgment to the United States. Further finding that
Defendant Town & Country Bank and Trust Company's
(“Town & Country”) judgment lien is inferior
to the United States' prior purchase money mortgage, the
Court will grant summary judgment to the United States. As a
result, the Court will enter an order of sale foreclosing on
the property at issue.
17, 2007, Phillips executed and delivered a promissory note
to the United States Department of Agriculture's Rural
Housing Service. DN 1-1 at 1. The note had a principal amount
of $84, 800 and an interest rate of 5.75% per annum.
Id. at 1. To secure the note, Phillips signed a
mortgage that was recorded on the same day in Mortgage Book
793, Page 620 in the Office of the Clerk of Nelson County,
Kentucky. DN 1 at 2; DN 1-2 at 1. Through the mortgage,
Phillips granted the United States a mortgage lien on
property located at 137 Scenic Drive, Bardstown, Kentucky
40004 and described as:
BEING Lot 62 in Springhill Subdivision, Section #3, filed in
Plat Cabinet 1, Slot 92, in the Nelson County Court
Clerk's Office, Nelson County, Kentucky.
Being the same property to which Rosie Phillips, unmarried
acquired title by Deed from Kirk G. Hamilton and his wife
Lisa A. Hamilton, dated July 17, 2007, of record in Deed Book
443, Page 347, in the Nelson County Court Clerk's Office.
at 1-2; DN 1-2 at 1, 7.
same day, Phillips signed a Subsidy Repayment Agreement
authorizing the United States to recapture, upon transfer of
title or non-occupancy of the property, any subsidies granted
to her by the United States. DN 1-3. Later, on or about April
17, 2012, Phillips signed a Reamortization Agreement
combining the unpaid principal and unpaid interest into a new
principal. DN 1-4. Phillips then defaulted on the note by
failing to make required payments. DN 1-2 at 2. The United
States claims that, as of October 3, 2017, it is owed $96,
516.14 in principal balance, $5, 336.80 in interest, $19,
114.48 in subsidies, $174.86 in late charges, and $561.88 in
fees, for a total of $121, 704.16. DN 14-2.
Portfolio Recovery Associates's Lien
the holder of a judgment lien recorded on June 2, 2009 in
Encumbrance Book 44, Page 678 in the Office of the Clerk of
Nelson County, Kentucky. DN 1 at 3; DN 1-5. The judgment,
originating from a Nelson County District Court case with the
docket number 09-CV-182, was originally for $6, 018.53 at an
interest rate of 12% per annum. DN 1-5.
& Country's Lien
& Country is the holder of a judgment lien recorded on
November 10, 2011 in Encumbrance Book 53, Page 410 in the
Office of the Clerk of Nelson County, Kentucky. DN 1 at 3-4;
DN 1-6. The judgment, originating from a Nelson County
Circuit Court case with the docket number 11-CI-00315, was
originally for $5, 871.32 plus costs at an interest rate of
10.517% per annum and attorney's fees in the amount of
$711. DN 1-6. Town & Country asserts that, as of August