Wigton

ORDER GRANTING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT AND DISMISSING THE ACTION

The United States brings this action to recover money it paid as guarantor on a purchase money mortgage under the Servicemen’s Readjustment Act of 1944, 38 U.S.C. § 1801 et seq. The defendants have made a motion for summary judgment and request that the action be dismissed. On the basis of the briefs, affidavits, memoranda and oral argument presented, the Court finds the undisputed facts as follows.

In 1959 Richard Sever, a veteran, executed a mortgage as security for the purchase money note he made in order to buy real property in Florida. This note was guaranteed in part by the Veterans Administration. Subsequently, Sever transferred the property subject to the mortgage to Mr. and Mrs. Griffin. In 1960 the Griffins sold the property, still subject to the mortgage to Mr. and Mrs. Wigton, the defendants. The Wigtons sold the property subject to the mortgage, to Mr. and Mrs. Tarrant in 1961. Sometime in 1963 the Tarrants defaulted on the note. The bank holding the mortgage foreclosed and bid in the property at $12,975 leaving a deficiency of $1833.10. The Veterans Administration honored its guaranty…