Carrington Mortgage Services, LLC v. Arron Flotte Acosta and Secretary of Housing and Urban Development

CourtDistrict Court, W.D. Texas
DecidedMay 5, 2026
Docket7:25-cv-00132
StatusUnknown

This text of Carrington Mortgage Services, LLC v. Arron Flotte Acosta and Secretary of Housing and Urban Development (Carrington Mortgage Services, LLC v. Arron Flotte Acosta and Secretary of Housing and Urban Development) 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. Arron Flotte Acosta and Secretary of Housing and Urban Development, (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-00132-DC-RCG § ARRON FLOTTE ACOSTA and § SECRETARY OF HOUSING AND URBAN § DEVELOPMENT, § 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. 15).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. 15). I. BACKGROUND This action was commenced on January 22, 2025, in the 161st District Court, Ector County, Texas, against Aaron Flotte Acosta, 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 March 20, 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. 7). 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. 8).

3. On October 20, 2025, Plaintiff voluntarily dismissed Does 1 through 20, inclusive, from the case. (Doc. 17). The relevant factual allegations are as follows. On April 30, 2020, Aaron Flotte Acosta (“Defendant Acosta”) made, executed, and delivered a Note in which he promised to pay the sum of $185,919.00, with interest. (Doc. 1-1 at 11). Plaintiff is the current owner and holder of the Note. Id. Subsequently, the Note was secured by a Deed of Trust executed by Defendant Acosta encumbering a piece of real property. Id. The property in question is commonly known as

9101 Rustler Avenue, Odessa, Texas 79765 (the “Property”), more particularly described as: LOT EIGHTY-EIGHT (88), BLOCK FOUR (4), RATLIFF RIDGE, 4TH FILING, PHASE 1, AN ADDITION TO THE CITY OF ODESSA, BEING A SUBDIVISION OF 20.87 ACRES OF LAND IN SECTION 35, BLOCK 42, T-1- S, T&P RR CO. SURVEY, ECTOR COUNTY, TEXAS, ACCORDING TO THE MAP, PLAT AND/OR DEDICATION DEED THEREOF RECORDED IN CABINET C, PAGE 94-C, OF THE PLAT RECORDS OF ECTOR COUNTY, TEXAS.

Id. Plaintiff is the current assignee of the Deed of Trust. Id. at 12. On March 28 2022 and June 13, 2023, Defendant also executed and delivered Partial Claim Deeds of Trust to HUD. Id. Defendant Acosta became delinquent in the payments due on the Note by failing and refusing to pay the installment due on September 1, 2024, and all installments due after that date. Id. Plaintiff notified Defendant Acosta of his default. Id. As of December 12, 2025, to pay off the loan in full, Defendant Acosta owes $184,840.76. (Doc. 15 at 4). Summons in this case was issued as to Defendant Acosta before the case was removed to this Court. (Doc. 1-1 at 77). On April 18, 2025, Plaintiff filed executed summons as to Defendant Acosta. (Doc. 5). Plaintiff’s proof of service shows Defendant Acosta was personally served by process server at 9101 Rustler Avenue, Odessa, Texas 79765. Id. On August 25, 2025, the Court ordered Defendant Acosta to show cause why he had not filed a responsive pleading in this case. (Doc. 10). To date, Defendant Acosta has failed to answer Plaintiff’s Complaint or otherwise make an appearance in this lawsuit. On October 28, 2025, Plaintiff filed a Motion for Clerk’s Entry of Default. (Doc. 12). The next day, the Clerk of Court entered default against Defendant Acosta. (Doc. 13). On January 26, 2026, Plaintiff filed the instant Motion for Default Judgment. (Doc. 15). Plaintiff seeks (1) a money judgment against Defendant Acosta for $184,840.76 plus post-judgment interest at the legal rate until paid in full; (2) attorney fees and costs against

Defendant Acosta in the total amount of $9,172.194; (3) an order of judicial foreclosure of the Property against Defendant Acosta; and (4) that the Property be sold via a public sale pursuant to applicable law. (Doc. 15). A hearing was held on the instant Motion for Default Judgment on April 30, 2026. (Docs. 15, 20). 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. 21). (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.

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Carrington Mortgage Services, LLC v. Arron Flotte Acosta and Secretary of Housing and Urban Development, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carrington-mortgage-services-llc-v-arron-flotte-acosta-and-secretary-of-txwd-2026.