Filed: Sep. 01, 2016
Latest Update: Sep. 01, 2016
Summary: DEFAULT JUDGMENT MICHAEL A. SHIPP , District Judge . The Court has determined that default judgment should be entered in favor of the United States and against Mark H. Jaffe. Accordingly, it is ORDERED that defendant, Mark H. Jaffe, is indebted to the United States for federal income taxes for the years 2005, 2006, 2007, and 2008 in the amount of $333,942, as of October 1, 2015 plus penalties, interest, and statutory additions accruing after that date until paid. ORDERED that the United S
Summary: DEFAULT JUDGMENT MICHAEL A. SHIPP , District Judge . The Court has determined that default judgment should be entered in favor of the United States and against Mark H. Jaffe. Accordingly, it is ORDERED that defendant, Mark H. Jaffe, is indebted to the United States for federal income taxes for the years 2005, 2006, 2007, and 2008 in the amount of $333,942, as of October 1, 2015 plus penalties, interest, and statutory additions accruing after that date until paid. ORDERED that the United St..
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DEFAULT JUDGMENT
MICHAEL A. SHIPP, District Judge.
The Court has determined that default judgment should be entered in favor of the United States and against Mark H. Jaffe. Accordingly, it is ORDERED that defendant, Mark H. Jaffe, is indebted to the United States for federal income taxes for the years 2005, 2006, 2007, and 2008 in the amount of $333,942, as of October 1, 2015 plus penalties, interest, and statutory additions accruing after that date until paid.
ORDERED that the United States has valid and subsisting tax liens against Mark H. Jaffe that attached to his interest in the Real Property located at 14 Park Place, Apt. 1, Princeton, New Jersey 08540, those tax liens are hereby foreclosed, and the Real Property shall be sold by the Internal Revenue Service in accordance with the attached order of sale.
So ordered.
ORDER OF SALE
The Court ORDERS that the federal tax liens on the real property located at 14 Park Place, Apt. 1, Princeton, New Jersey 08540 ("the Real Property"), matching the legal description provided in Paragraph 21 of the Complaint, be foreclosed and that the Property be sold under Title 28, United States Code, §§ 2001 and 2002, as follows:
1. The Internal Revenue Service ("IRS") Property Appraisal and Liquidation Specialists ("PALS"), is authorized to offer for public sale and to sell the Real Property.
2. The terms and conditions of the sale are as follows:
a. The sale of the Real Property shall be free and clear of the interests of Mark H. Jaffe; Pasternak, Feldman, Plutnick, PA; Ansell, Zaro, Grimm, Aaron; Wilentz, Goldman, Spitzer; Diane Eigner; and 12-14 Park Place, A Condominium.
b. The sale shall be subject to building lines, if established, all laws, ordinances, and governmental regulations (including building and zoning ordinances) affecting the Real Property, and easements and restrictions of record, if any;
c. The sale shall be held either at the courthouse of the county or city in which the Real Property is located or on the Real Property's premises;
d. The PALS shall announce the date and time for the sale;
e. Notice of the sale shall be published once a week for at least four consecutive weeks before the sale in at least one newspaper regularly issued and of general circulation in Mercer County, and, at the discretion of the PALS, by any other notice that the PALS deems appropriate. The notice shall contain a description of the property and shall contain the terms and conditions of sale in this order of sale;
f. The PALS shall set the minimum bid. If the minimum bid is not met or exceeded, the PALS may, without further permission of this Court, and under the terms and conditions in this order of sale, hold a new public sale, if necessary, and reduce the minimum bid.
g. At the time of the sale, the successful bidder(s) shall deposit with the PALS, by cash or by certified or cashier's check payable to the United States District Court for the District of New Jersey, between five (5) and twenty (20) percent of the bid to be determined by PALS. Before being permitted to bid at the sale, potential bidders shall display to the PALS proof that they are able to comply with this requirement. No bids will be accepted from any person(s) who have not presented proof that, if they are the successful bidders(s), they can make the deposit required by this order of sale;
h. The successful bidder(s) shall pay the balance of the purchase price for the Real Property to the clerk of this Court within thirty (30) days following the date of the sale, by a certified or cashier's check payable to the United States District Court for the District of New Jersey. If the bidder fails to fulfill this requirement, the deposit shall be forfeited and shall be applied to cover the expenses of the sale, with any amount remaining to be applied to the liabilities of Mark H. Jaffe at issue herein. The Real Property shall be again offered for sale under the terms and conditions of this order of sale or, in the alternative, sold to the second highest bidder. The United States may bid as a credit against its judgment without tender of cash;
i. The Clerk of the District Court is directed to accept the deposit and proceeds of the sale and deposit them into the Court's registry for distribution pursuant to further order of this Court;
j. The sale of the Real Property shall be subject to confirmation by this Court. On confirmation of the sale, the PALS shall execute and deliver its deed conveying the Real Property to the purchaser. On confirmation of the sale, all interests in, liens against, or claims to, the Real Property that are held or asserted by all parties to this action are discharged and extinguished. Redemption rights under state law shall not apply to this sale under federal law;
k. When this Court confirms the sale, the Recording Officials of Mercer County, New Jersey, shall cause transfer of the Real Property to be reflected upon that county's register of title. The successful bidder at the sale shall pay, in addition to the amount of the bid, any documentary stamps and Clerk's registry fees as provided by law;
l. The sale of the Real Property is ordered pursuant to 28 U.S.C. § 2001, and is made without right of redemption.
3. Pending the sale of the Real Property and until the deed to the Real Property is delivered to the successful bidder, the IRS is authorized to have free access to the premises in order to take any and all actions necessary to preserve the Real Property, including, but not limited to, retaining a locksmith or other person to change or install locks or other security devices on any part of the Real Property.
4. Until the Real Property is sold, defendant Mark H. Jaffe shall take all reasonable steps necessary to preserve the Real Property (including all buildings, improvements, fixtures and appurtenances on the property) in its current condition including, without limitation, maintaining a fire and casualty insurance policy on the Real Property. He shalt not commit waste against the Real Property, or cause or permit anyone else to do so. He shall neither do anything that tends to reduce the value or marketability of the Real Property nor cause or permit anyone else to do so. The defendant shall not record any instruments, publish any notice, or take any other action (such as running newspaper advertisements, posting signs, or making internet postings) that may directly or indirectly tend to adversely affect the value of the Real Property or that may tend to deter or discourage potential bidders from participating in the public auction, nor shall they cause or permit anyone else to do so. Violations of this paragraph shall be a contempt of court and punishable as such.
5. All persons occupying the Real Property shall vacate the Real Property permanently within thirty (30) days of the date of this Order, each taking with them his or her personal property (but leaving all improvements, buildings, fixtures, and appurtenances to the Real Property). If any person fails or refuses to vacate the Real Property by the date specified in this Order, the PALS are authorized to coordinate with the United States Marshal to take all actions that are reasonably necessary to have those persons ejected. The United States Marshals Service is authorized and directed to take any and all necessary actions, including but not limited to the use of reasonable force, to enter and remain on the premises, which includes, but is not limited to, the land, buildings, vehicles, and any other structures located thereon, for the purpose of executing this Order of Sale. The United States Marshals Service is further authorized and directed to arrest or evict from the premises any persons who obstruct, attempt to obstruct, or interfere or attempt to interfere, in any way, with this Order of Sale.
6. Any personal property remaining on the Real Property thirty (30) days after the date of this Order is deemed forfeited and abandoned, and the PALS are authorized to dispose of it in any manner they see fit, including sale, in which case the proceeds of the sale are to be applied to the expenses of sale first and the balance to be paid into the Court for further distribution. Checks for the purchase of personal property shall be made out to the Clerk of District Court for the District of New Jersey, and the Clerk is directed to accept these checks and deposit them into the Court's registry for distribution pursuant to further order of this Court.
7. No later than two business days after vacating the Real Property pursuant to the deadline set forth in paragraph 4 above, Mark H. Jaffe shall notify counsel for the United States of a forwarding address where he can be reached. Notification shall be made by contacting the Beatriz T. Saiz at (202) 307-6585 or Beatriz.T.Saiz@usdoj.gov.
8. After the Court confirms the sale, the sale proceeds are to be paid to the Clerk of this Court and applied to the following items, in the order specified:
a. First, to the Internal Revenue Service Property Appraisal and Liquidation Specialist (PALS), payable to the United States Treasury, for the expenses of the sale, including any expenses incurred to secure or maintain the property pending sale and confirmation by the Court;
b. Second, to the local taxing authority for real property taxes and other local assessments due and owing, if any, in accordance with 26 § 6323(b)(6);
c. Third, to J.P. Morgan Chase Bank, N.A., for the balance of mortgage debt owed by Mark H. Jaffe;
d. Fourth, to Wells Fargo for the balance of mortgage debt owed by Mark H. Jaffe;
e. Fifth, to plaintiff the United States of America for the federal income tax debt of Mark H. Jaffe for tax years 2005, 2006, 2007, and 2008 in the amount of $333,942 as of October 1, 2015, plus statutory additions and interest that continue to accrue after that date until paid in full;
f. The remaining sale proceeds, if any, to be distributed to Mark H. Jaffe.
SO ORDERED, ADJUDGED, AND DECREED.
