Summary of a Recent
Judicial Development in
Finance & Credit

FSA Motion for Summary Judgment to Foreclose Granted

Walt McCarter
National AgLaw Center Research Associate

Summary of Decision

In United States v. Tallent, No. 4:07CV00520 BSM, 2009 WL 160318 (E.D. Ark. Jan. 21, 2009), the United States District Court for the Eastern District of Arkansas held that the Farm Service Agency (FSA) was entitled to foreclose on mortgaged property because the borrower was admittedly in default and he did not dispute the FSA's proffered statement of undisputed facts.

Background

The FSA brought this action against a defaulting borrower, seeking summary judgment to foreclose on the borrower's mortgaged property. Id. at *1. The borrower had previously filed for Chapter 7 bankruptcy protection and received a discharge from personal liability on his debts, including the debt owed to the FSA, in 1999. Id. at *2. He filed complaints with the USDA Office of Civil Rights after he received notice of acceleration of his account in 2002, but the USDA concluded that the agency actions did not constitute discriminatory conduct and commenced with the acceleration. Id. After the FSA brought this action to foreclose, the borrower did not respond to or dispute the FSA's statement of undisputed facts or deny that his loans were in default. Id. at *1.

Analysis and Holdings

Because it was undisputed that the borrower was in default and currently owed a total of $288,894 on the notes, the court held that the FSA was entitled to in rem judgment on the mortgaged property and granted its motion for summary judgment. Id. at *2.

The case was decided on January 21, 2009.