Reported / Citable
Background
Embrace Home Loans, Inc. sued Freddie Carr concerning a home-equity note executed on August 22, 2022, and a related deed of trust securing a $166,000 loan on residential property in Houston, Texas.
Carr was served but did not appear or answer. Embrace sought declarations concerning the loan and lien, plus authority to foreclose, rather than money damages against Carr personally.
The Court’s Holding
The court entered final default judgment, deeming the complaint’s material allegations admitted. It declared that Carr had defaulted on the note and that the deed of trust gave Embrace a first-lien security interest in the Houston property.
The court held that the lien secured the note balance, attorney’s fees, prejudgment and postjudgment interest, and court costs. It authorized Embrace and its successors or assigns to proceed with a nonjudicial foreclosure under the deed of trust and applicable Texas law.
Key Takeaways
- Carr’s failure to answer resulted in the complaint’s material allegations being deemed admitted.
- The judgment authorizes a nonjudicial sale of the secured property, not a personal money judgment against Carr.
- Attorney’s fees and costs are to be determined by a later Rule 54(d)(2)(B)(i) motion and added to the secured debt.
Why It Matters
The judgment supplies the foreclosure order required for this home-equity loan while preserving the lender’s ability to seek fees and costs later. Any awarded fees, costs, and interest may be collected from the property at foreclosure, but are not imposed as Carr’s personal liability.