LAKEVIEW LOAN SERVICING, LLC, FSB v. MARTINEZ

CourtDistrict Court, Virgin Islands
DecidedAugust 7, 2020
Docket1:16-cv-00073
StatusUnknown

This text of LAKEVIEW LOAN SERVICING, LLC, FSB v. MARTINEZ (LAKEVIEW LOAN SERVICING, LLC, FSB v. MARTINEZ) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LAKEVIEW LOAN SERVICING, LLC, FSB v. MARTINEZ, (vid 2020).

Opinion

DISTRICT COURT OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX

LAKEVIEW LOAN SERVCING, LLC as ) Successor in Interest to FLAGSTAR BANK, FSB, ) ) Plaintiff, ) ) v. ) Civil Action No. 2016-0073 ) RAY A. MARTINEZ and CAROL M. MARTINEZ, ) ) Defendants. ) ________________________________________________) Appearances: A. J. Stone, III, Esq., St. Thomas, U.S.V.I. For Plaintiff

Ray A. Martinez, Pro se For Defendant Ray A. Martinez

MEMORANDUM OPINION Lewis, Chief Judge THIS MATTER comes before the Court on the “Motion for Default Judgment and Summary Judgment” (Dkt. No. 19), filed by Plaintiff Lakeview Loan Servicing, LLC (“Lakeview”) against Defendants Ray A. Martinez and Carol M. Martinez (collectively “Defendants”). For the reasons discussed below, the Court will grant Lakeview’s Motion for Default Judgment and for Summary Judgment. I. BACKGROUND On November 1, 2016, Flagstar Bank, FSB (“Flagstar”) filed a Complaint against Defendants alleging causes of action for a debt owed and for foreclosure of a mortgage on real property. Flagstar asserts that Defendants defaulted on a promissory note and on a first priority mortgage regarding certain property described as: Plot No. 156 Estate Mary’s Fancy, Queen Quarter, St. Croix, U.S. Virgin Islands, consisting of 0.496 U.S. acres, more or less, as more fully shown on O.L.G. Drawing No. 2241 dated July 7, 1967 and revised March 10, 1993,

(“the Property”) (Dkt. Nos. 1 at ¶¶ 7-8; 21-1). Flagstar alleges that on March 26, 2010, Ray Martinez executed and delivered to Flagstar a promissory note (the “Note”), promising to pay the principal amount of $218,173.00, together with interest at a rate of 5.875% per annum, in consecutive monthly installments of $1,290.58, beginning on May 1, 2010. (Dkt. Nos. 1 at ¶¶ 8-9; 22-1 at 1).1 To secure payment on the Note, both Defendants granted to Flagstar and Mortgage Electronic Registration Systems, Inc. (“MERS”), as nominee for Flagstar and its successors and assigns, a first priority mortgage over the Property dated March 26, 2010 (the “Mortgage”). Under the terms of the Mortgage, Defendants pledged to make the payments due under the Note, with the Property to be used as security for such payments. (Dkt. Nos. 1 at ¶¶ 11-12; 22-2). In its Complaint, Flagstar further claims that, on or about April 1, 2016, Defendant Ray Martinez defaulted under the terms of the Note and both Defendants defaulted under the terms of the Mortgage by failing to pay monthly installments of principal and interest. Flagstar contends it notified both Defendants of the default by letter. Id. at ¶¶ 15-17. Flagstar further alleges that Defendants failed to cure the default, and that Flagstar elected to accelerate the principal on the Note. Flagstar demanded that Defendants pay the full balance of the principal owed, plus all accrued interest. Id. at ¶¶ 18-20. In its Complaint, Flagstar maintains that it is entitled to enforce the Note and collect all sums due for unpaid principal, accrued interest and other charges, as well as obtain reimbursement

1 In its Complaint, Flagstar alleged that the Note was signed jointly and severally by Defendants. (Dkt. No. 1 at ¶ 8). The Note, however, only bears the signature of Ray A. Martinez. (Dkt. No. 22- 1 at 2). In its Motion, Lakeview acknowledges that the Note was signed only by Ray Martinez. (Dkt. No. 20 at ¶ 7). 2 for any insurance premiums, taxes or other charges that it pays with respect to the Property. Id. at ¶¶ 20-22. Flagstar further alleges that it also is entitled to be reimbursed for reasonable attorneys’ fees and other expenses it incurs to enforce payment of the Note and to foreclose on the Property. Id. at ¶¶ 23. Finally, Flagstar claims that it is entitled to foreclose the mortgage, sell the Property

to satisfy the Note, and recover any deficiency from Defendants. Id. at ¶¶ 21, 26-28. Shortly after the Complaint was filed, Flagstar filed a Motion to Substitute Lakeview as the Plaintiff. (Dkt. No. 8). In this Motion, Flagstar averred that MERS, as nominee for Flagstar, assigned their entire interest in the Mortgage to Matrix Financial Services Corporation (“Matrix”). (Dkt. No 8-1). Shortly thereafter, Matrix assigned its interest to Lakeview and both assignments were recorded with the Recorder of Deeds for the St. Croix District. (Dkt. Nos. 8-1; 8-2). Accordingly, Flagstar requested that Lakeview be substituted as Plaintiff. (Dkt. No. 8 at 2). The Magistrate Judge granted the Motion to Substitute and Lakeview became the named Plaintiff in this case. (Dkt. No. 9). Both Defendants were served with process. (Dkt. Nos. 6, 12). Defendant Ray Martinez

filed an Answer, pro se. (Dkt. No. 18). Defendant Carol Martinez did not file any responsive pleading. Accordingly, Lakeview moved for Entry of Default against Defendant Carol Martinez and the Clerk entered default against her on April 12, 2017. (Dkt. Nos. 13, 15). In July 24, 2017, Lakeview filed the instant Motion for Default Judgment and for Summary Judgment and accompanying documents. (Dkt. Nos. 19-23). In the Motion, Lakeview requested default judgment against Defendant Carol Martinez. Lakeview also requested that summary judgment be entered against Defendant Ray Martinez for the entire amount due under the Note, plus expenses, interest, and attorneys’ fees. Lakeview also requested foreclosure of all interests in the Property. (Dkt. No. 20 at 7-9.) 3 In an Affidavit of Indebtedness, Lakeview asserts that as of July 1, 2017, the Note carried an unpaid principal balance of $196,804.74, and the unpaid interest accrued from March 1, 2016 through July 1, 2017 was $15,416.32. (Dkt. Nos. 22 at ¶ 10; 22-4). Lakeview also asserts that Defendant Ray Martinez owes for escrow advances of $433.59; late fees of $360.99; and $180.00

for inspections and other property preservation fees. Id. at ¶¶ 10-12; 22-4 through 22-7. Lakeview claims that the outstanding indebtedness continues to accrue interest in the monthly amount of $963.52 after July 1, 2017. Id. at ¶ 14. Neither Defendant has responded to Lakeview’s Motion for Default Judgment and Summary Judgment. (Dkt. No. 42). Lakeview argues that the procedural elements for default judgment have been satisfied as to Carol Martinez because: she was properly served with copies of the Summons and Complaint; the Clerk entered default against her; and she is not an infant, nor an incompetent person. According to Lakeview, Ms. Martinez also is not in the military service within the meaning of the Servicemember’s Civil Relief Act, 50 U.S.C. § 3931. (Dkt. Nos. 22 at ¶ 16; 22-8). Lakeview further contends that the written submissions in this case provide a sufficient basis for entry of

default judgment on the merits of its claims. (Dkt. No. 20 at 5-6.) Moreover, Lakeview asserts that it has demonstrated that it is entitled to default judgment under the factors set forth in Chamberlain v. Giampapa, 210 F.3d 154 (3d Cir. 2000). Id. at 5-6. Because Defendant Ray Martinez filed an Answer to Lakeview’s Complaint, Lakeview seeks summary judgment as to its claims against Mr. Martinez. Lakeview filed a Statement of Undisputed Facts with its Motion, to which Defendant Ray Martinez has not responded. (Dkt. No. 21). Lakeview’s Statement sets out in detail the facts set forth above with supporting citations to the record. Id. Lakeview submits that the record reflects proof of all the elements of its claims

4 under Virgin Islands law, and that it is entitled to judgment as a matter of law against Mr. Martinez under both the Note and the Mortgage. Id. at 11-12. Finally, Lakeview claims that it is entitled to an award of costs and attorneys’ fees incurred in prosecuting this action. Id.

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