Reported / Citable
Background
PHH Mortgage sued Martha A. Stolowski and Sean M. Stolowski after payments stopped on a $55,460 mortgage note secured by property on Skylark Avenue in San Antonio. Martha and her late husband, Timothy G. Stolowski, executed the note and deed of trust in 2012. PHH alleged that it became the note holder and deed-of-trust beneficiary through a 2023 assignment from MERS.
Timothy died in 2022 without a probate proceeding in Bexar County. PHH alleged that Martha, Timothy’s spouse, and Sean, his child from a prior marriage, were his heirs. After sending a notice of default in April 2025 and alleging that the default remained uncured, PHH filed this action seeking foreclosure and declaratory relief. Both defendants were served, did not answer, and the clerk entered default.
The Court’s Holding
Magistrate Judge Richard B. Farrer recommended granting PHH’s motion for default judgment. The recommendation concluded that the court had diversity jurisdiction, personal jurisdiction over both defendants, and a sufficient pleading basis for default judgment.
The magistrate judge further recommended a declaratory judgment establishing the uncured default, PHH’s lien interest, and PHH’s right to enforce its in rem interest through nonjudicial foreclosure under the deed of trust and Texas Property Code § 51.002. The recommendation would permit a public foreclosure auction on a regularly scheduled first Tuesday of the month. It recommended denying attorney’s fees and costs without prejudice because PHH had not supplied sufficient support for a fee award, while allowing it to seek fees and costs later through the applicable post-judgment procedures.
Key Takeaways
- This was a report and recommendation, not a final district-court judgment; the district judge retained authority to adopt, reject, or modify it.
- Default admitted the well-pleaded allegations supporting the loan default, lien, heirship allegations, and foreclosure claim.
- The magistrate judge concluded that a notice of acceleration was unnecessary because filing the foreclosure action could serve as acceleration under the cited authority.
Why It Matters
The recommendation illustrates the proof a mortgage holder can use to obtain default foreclosure relief in federal court: the loan documents, assignment, default notice, proper service, and allegations establishing the heirs’ interest in property after an intestate borrower’s death.
It also underscores that foreclosure relief and fee recovery are separate matters. Even where default judgment is recommended, a lender must support any requested attorney’s fees and costs through the required post-judgment submissions.