Judge Sandra Feuerstein

In 2004 Irene Negosh—who died in May 2009—obtained a United States Home Equity Conversion Mortgage on certain premises. That mortgage was later assigned to the secretary of the Department of Housing and Urban Development. After note payments and property taxes went unpaid, the government deemed the note and mortgage in default and accelerated payment of the note’s $311,293 balance. The government sought foreclosure on Sept. 12, 2011. Finding that it held jurisdiction the court denied the action’s dismissal or transfer to state court. It also denied the motion of Barbara Negosh—who claimed to be the only party with an interest in the mortgaged premises—to dismiss other defendants as improperly joined. If the government is correct that defendant Wszalek is decedent’s heir, Wszalek is a necessary party under Federal Rule of Civil Procedure 19. As New York has a possible interest in collecting outstanding estate taxes on the mortgaged premises, it too is a necessary party under Rule 19. The court granted the government’s motion to voluntarily dismiss the State and John Doe defendants pursuant to Federal Rule of Civil Procedure 41(a), but deferred entry of a default judgment against Wszalek pending a hearing in the future.