Carrington Mortgage Services, LLC v. Aaron R. Escajeda, Taylor M. Everett, and The United States of America

CourtDistrict Court, W.D. Texas
DecidedFebruary 23, 2026
Docket7:25-cv-00071
StatusUnknown

This text of Carrington Mortgage Services, LLC v. Aaron R. Escajeda, Taylor M. Everett, and The United States of America (Carrington Mortgage Services, LLC v. Aaron R. Escajeda, Taylor M. Everett, and The United States of America) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carrington Mortgage Services, LLC v. Aaron R. Escajeda, Taylor M. Everett, and The United States of America, (W.D. Tex. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS MIDLAND/ODESSA DIVISION

CARRINGTON MORTGAGE SERVICES, § LLC; § Plaintiff, § § v. § MO:25-CV-00071-DC-RCG § AARON R. ESCAJEDA, TAYLOR M. § EVERETT, and THE UNITED STATES § OF AMERICA, § Defendants. §

REPORT AND RECOMMENDATION OF THE U.S. MAGISTRATE JUDGE BEFORE THE COURT is Plaintiff Carrington Mortgage Services LLC’s (“Plaintiff”) Motion for Default Judgment. (Doc. 30).1 This matter is before the undersigned United States Magistrate Judge through a standing order of referral pursuant to 28 U.S.C. § 636 and Appendix C of the Local Court Rules for the Assignment of Duties to United States Magistrate Judges. After due consideration, the Court RECOMMENDS Plaintiff’s Motion for Default Judgment be GRANTED. (Doc. 30). I. BACKGROUND This action was commenced on September 13, 2024, in the 358th District Court, Ector County, Texas, against Aaron Escajeda, Taylor Everett, the Secretary of Housing and Urban Development (“HUD”),2 and Does 1 through 20, inclusive.3 (Doc. 1-1). The action was removed to this Court on February 14, 2025. (Doc. 1).

1. All page number citations are to CM/ECF generated pagination unless otherwise noted.

2. On March 26, 2025, Plaintiff and HUD filed a Joint Motion for Entry of a Consent Order to streamline the litigation. (Doc. 5). The Court granted the Motion and substituted the United States of America for HUD, granting the relief sought by Plaintiff against the United States and relieving the United States from making any further court appearances. (Doc. 6).

3. On October 20, 2025, Plaintiff voluntarily dismissed Does 1 through 20, inclusive, from the case. (Doc. 25). The relevant factual allegations are as follows. On April 30, 2020, Aaron Escajeda (“Defendant Escajeda”) made, executed, and delivered a Note in which he promised to pay the sum of $314,204.00, with interest. (Doc. 1-1 at 7). Plaintiff is the current owner and holder of the Note. Id. Subsequently, the Note was secured by a Deed of Trust executed by Defendants Escajeda and Taylor Everett (“Defendant Everett”) (collectively, “Defendants”) encumbering a

piece of real property. Id. The property in question is commonly known as 1813 Canal Street, Odessa, Texas 79765 (the “Property”), more particularly described as: LOT 31, BLOCK 1, MARDI GRAS ESTATES, AN ADDITION TO THE CITY OF ODESSA, ECTOR COUNTY, TEXAS, ACCORDING TO THE MAP OR PLAT OF RECORD IN CABINET B, PAGE 194-B&C, PLAT RECORDS, ECTOR COUNTY, TEXAS.

Id. Plaintiff is the current assignee of the Deed of Trust. Id. On May 6, 2021, Defendants also executed and delivered a Partial Claims Mortgage to HUD. Id. at 8. Defendant Escajeda became delinquent in the payments due on the Note by failing and refusing to pay the installment due on January 1, 2024, and all installments due after that date. Id. Plaintiff notified Defendant Escajeda of his default. Id. As of December 30, 2025, to pay off the loan in full, Defendant Escajeda owes $337,494.27. (Doc. 30 at 6). Summons in this case were issued as to Defendants before the case was removed to this Court. (See Doc. 1). On June 10, 2025, Plaintiff filed executed summons as to both Defendants. (Docs. 8, 9). Plaintiff’s proof of service shows Defendants were personally served by process server at 1813 Canal Street, Odessa, Texas 79765, on October 22, 2024, and October 24, 2024, respectively. Id. On August 26, 2025, the Court issued Orders to both Defendants to show cause why they had not filed a responsive pleading in this case. (Docs. 17, 18). To date, Defendants have failed to answer Plaintiff’s Complaint or otherwise make an appearance in this lawsuit. On October 27, 2025, Plaintiff filed a Motion for Clerk’s Entry of Default. (Doc. 27). The next day, the Clerk of Court entered default against Defendants. (Doc. 28). On December 30, 2025, Plaintiff filed the instant Motion for Default Judgment. (Doc. 30). Plaintiff seeks (1) a money judgment against Defendant Escajeda for $337,494.27 plus post-judgment interest at the legal rate until paid in full; (2) attorney fees and costs against

Defendant Escajeda in the total amount of $16,643.804; (3) an order of judicial foreclosure of the Property against Defendants; and (4) that the Property be sold via a public sale pursuant to applicable law. (Doc. 30 at 10). A hearing was held on the instant Motion for Default Judgment on February 10, 2026. (Doc. 34). Accordingly, this matter is now ripe for disposition. II. LEGAL STANDARD After entry of default and upon a motion by the plaintiff, Federal Rule of Civil Procedure 55 authorizes the Court to enter a default judgment against a defendant who fails to plead or otherwise defend the suit. FED. R. CIV. P. 55(b). However, “[d]efault judgments are a drastic remedy, not favored by the Federal Rules and resorted to by courts only in extreme

situations.” Sun Bank of Ocala v. Pelican Homestead & Savs. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989). Accordingly, “[a] party is not entitled to a default judgment as a matter of right, even where the defendant is technically in default.” Ganther v. Ingle, 75 F.3d 207, 212 (5th Cir. 1996). Instead, the district court “has the discretion to decline to enter a default judgment.” Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998). In determining whether to enter a default judgment, courts utilize a three-part test. See United States v. 1998 Freightliner Vin #: 1FUYCZYB3WP886986, 548 F. Supp. 2d 381, 384

4. Following the hearing on Plaintiff’s Motion for Default Judgment, Plaintiff’s counsel provided a supplemental affidavit regarding attorney fees and costs. (Doc. 33). (W.D. Tex. 2008). First, courts consider whether the entry of default judgment is procedurally warranted. Id. The factors relevant to this inquiry include: (1) whether material issues of fact exist; (2) whether there has been substantial prejudice; (3) whether the grounds for default are clearly established; (4) whether the default was caused by a good faith mistake or excusable neglect; (5) the harshness of a default judgment; and (6) whether the court would think itself obliged to set aside the default on the defendant’s motion.

Lindsey, 161 F.3d at 893. Second, courts assess the substantive merits of the plaintiff’s claims, determining whether the plaintiff set forth sufficient facts to establish his entitlement to relief. See 1998 Freightliner, 548 F. Supp. 2d at 384. In doing so, courts assume that, due to its default, the defendant admits all well-pleaded facts in the plaintiff’s complaint. See Nishimatsu Constr. Co., Ltd. v. Hous. Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975). Third, courts determine what form of relief, if any, the plaintiff should receive in the case. Id.; 1998 Freightliner, 548 F. Supp. 2d at 384. Generally, damages are not to be awarded without a hearing or a demonstration by detailed affidavits establishing the necessary facts. See United Artists Corp. v. Freeman, 605 F.2d 854, 857 (5th Cir. 1979). III. DISCUSSION Applying the three-part analysis detailed above, the Court finds Plaintiff is entitled to a default judgment. A.

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Bluebook (online)
Carrington Mortgage Services, LLC v. Aaron R. Escajeda, Taylor M. Everett, and The United States of America, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carrington-mortgage-services-llc-v-aaron-r-escajeda-taylor-m-everett-txwd-2026.