United States v. Smith

CASSIBRY, District Judge:

The United States brought this suit on behalf of one of its agencies, the Small Business Administration (hereafter “SBA”). The court has jurisdiction pursuant to 28 U.S.C. § 1345 (1976) and 28 U.S.C. § 634 (1976).

In April of 1973, Hazel and Elvin Smith received a loan from the SBA and executed a promissory note. 1 To secure the note, the Smiths gave a collateral mortgage on their home. 2 The terms of the mortgage did not waive the homestead exemption on the Smith’s home.

In 1976, the Smiths defaulted on the note, and the SBA by letter of July 2, 1976 declared the…