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UMLIC VP LLC v. MATTHIAS

No. 03-1140, 03-1239.

364 F.3d 125 (2004)

UMLIC VP LLC, Successor in Interest and Assignee of the United States of America (Small Business Administration) v. Aretha MATTHIAS, Individually and as Personal Representative of the Estate of Wesley Matthias; Carlton Parson; Elecia Parson; Oswald C. Venzen; Alice Venzen; Government of the Virgin Islands, Bureau of Internal Revenue; Department of Finance; United States of America Internal Revenue Service; Michael A. Matthias; Rosemarie Webster; Bruce W. Matthias; Elizabeth Olivacce; Laurie Thomas; Carrie Eddy, and all Persons Claiming an Interest in Remainder of Parcel No.7 Sorgenfrim a/k/a Nos. 7B and 7C Estate Sorgenfri; Carlton Parson, Elecia Parson, and Oswald C. Venzen, Appellants UMLIC VP LLC, Successor in Interest and Assignee of the United States of America (Small Business Administration) v. Aretha Matthias, Individually and as Personal Representative of the Estate of Wesley Matthias; Carlton Parson; Elecia Parson; Oswald C. Venzen; Alice Venzen; Government of the Virgin Islands, Bureau of Internal Revenue; Department of Finance; United States of America Internal Revenue Service; Michael A. Matthias; Rosemarie Webster; Bruce W. Matthias; Elizabeth Olivacce; Laurie Thomas; Carrie Eddy, and all Persons Claiming an Interest in Remainder of Parcel No.7 Sorgenfrim a/k/a Nos. 7B and 7C Estate Sorgenfri Aretha Matthias, Michael A. Matthias, Rosemarie Webster, Bruce W. Matthias, Elizabeth Olivacce, Laurie Thomas, and Carrie Eddy, Appellants.

United States Court of Appeals, Third Circuit.

Filed April 5, 2004.

Attorney(s) appearing for the Case

Archie Jennings, Jr. (Argued), Archie Jennings, P.C., Charlotte Amalie, St. Thomas, for Appellants.

Robert L. King (Argued), Law Offices of Robert L. King, Windward Passage Hotel, Charlotte Amalie, St. Thomas, for Appellants.

Carol A. Rich (Argued), Campbell, Arellano & Rich, Charlotte Amalie, St. Thomas, for Appellee UMLIC VP LLC.

Before NYGAARD, BECKER, and STAPLETON, Circuit Judges.

BECKER, Circuit Judge.

This appeal in a diversity-based mortgage foreclosure action stemming from a default on a loan guaranteed by the United States Small Business Administration (the "SBA"), which ultimately transferred to the plaintiffs in foreclosure, UMLIC VP LLC ("UMLIC"), the mortgages which secured the loans, presents three important questions. First, is the right to foreclose on a Virgin Islands mortgage extinguished at the time the right to collect an

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