United States v. Ruth G. Thornburg Michael D. Thornburg David Jean Thornburg Kathy Ann Northington

The United States appeals from the judgment entered in favor of Ruth Thornburg, Michael Thornburg, David Thornburg and Kathy Northington (collectively “the Thorn-burgs”), in this action for breach of a personal guaranty and foreclosure of the mortgage securing it. The district court entered its judgment after the United States stipulated that its action to enforce the personal guaranty was barred by the applicable federal statute of limitations.

The United States contends that the district court erred in holding that foreclosure of the mortgage was barred because the time for enforcement of the note and the personal guaranty had lapsed under state law. The Thornburgs contend for the first time on appeal that the United States’ foreclosure action is time-barred because the Oklahoma and California statutes of limitations had run before the bank reassigned the note and the personal guaranty to the Small Business Administration (“SBA”) in 1985.

We conclude that the district court erred in applying state lien expiration laws to bar the United States’ mortgage foreclosure action because laws limiting the time for filing an action are inapplicable to claims filed by the United…