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MAYES COUNTY • CJ-2026-00034

American Bank of Oklahoma v. Robert Reid Houston

Filed: Feb 12, 2026
Type: CJ
View Official Docket ↗

What's This Case About?

Let’s be real: when a bank sues an entire family, a law firm, and the IRS over a pile of loans gone sideways, you know you’re not dealing with your average “forgot to pay the water bill” kind of mess. This isn’t a dispute over a fence line or a barking dog—it’s a full-blown financial cage match in rural Oklahoma, where American Bank of Oklahoma is swinging for the fences, trying to collect nearly $315,000 from the Houston family while simultaneously telling the IRS, a law firm, and a mysterious LLC to kindly take a number because they were here first. And yes, the IRS is literally just one of several defendants, like it’s some minor player in a foreclosure drama. Welcome to CrazyCivilCourt, where the stakes are high, the paperwork is endless, and the drama is 100% real.

So who are these people? Meet the Houstons—a family name that sounds like it belongs in a Texas oil dynasty, but in this case, they’re just a group of relatives tangled in a web of promissory notes, mortgages, and debt modifications that read like a banking thriller written by someone who really loves commas. We’ve got Robert Reid Houston and his wife Demetra L. Houston, and Robert Todd Houston (possibly brother? cousin? we’re not told, but the shared last name and joint loans suggest some kind of blood pact). Then there’s Joy Lynn Houston, married to Todd, making this a full two-household, four-adult financial unit. They’re all tied together not just by marriage and mortgages, but by a series of loans from American Bank of Oklahoma (ABO), a local bank with an office in Disney, Oklahoma—a town so small it makes you wonder if Mickey’s ghost is judging their credit scores.

Now, let’s talk about what went down. This isn’t a story of one bad loan. No, this is a saga. It starts in February 2021, when Robert Todd and Robert Reid Houston sign a promissory note for $152,584.02—let’s call it “Loan 1”—at 5.5% interest, due in one year. To secure it, the couples (Reid & Demetra, Todd & Joy) put up a mortgage on two lots in North Langley, Oklahoma. Classic move: borrow money, pledge property, hope for the best. But by May 2021, just three months later, they’re already modifying the debt—increasing the loan to $252,584.02. That’s not a small bump. That’s like ordering a burger and suddenly upgrading to the all-you-can-eat steak buffet. And the bank says, “Sure, why not?” with a second note and a modified mortgage.

Fast forward to March 2022, and they’re at it again—another debt modification, this time pushing the maturity date out to 2025. They’ve now got two loans, multiple modifications, and a security agreement giving the bank a lien on all their equipment—machinery, vehicles, furniture, tools, even future stuff they don’t own yet. It’s like the bank has a blanket claim on their entire material existence. And let’s not forget: ABO filed a UCC financing statement (that’s the legal version of “I saw that first” for personal property) to make sure everyone knows they’re first in line when the repo men come knocking.

But wait—there’s more! In September 2022, Robert and Demetra Houston sign another note—this one for $400,500—secured by different real estate: a property in the Grand Crest Subdivision. This one’s at 6.25% interest, due in 2025. And wouldn’t you know it? By December 2025—just a month before this lawsuit—another modification: the interest rate jumps to 7.75%, the maturity date gets pushed to 2028, and the principal is now $317,756.95. The original $400k loan has somehow shrunk after modification, which either means they paid some down (unlikely, given the default) or this is a refinancing move to reset the terms. Either way, the bank is now holding two separate loans, multiple mortgages, and a lien on both real and personal property. And then—poof—everyone stops paying. As of January 22, 2026, the total owed on the second loan is $314,049.73, and the bank says, “That’s it. We’re done playing nice.”

So why are they in court? Because when you don’t pay your loans, and you’ve pledged your property as collateral, the bank doesn’t send a passive-aggressive email. They file a petition to foreclose. ABO isn’t just asking for money—they’re asking the court to legally wipe out everyone else’s claims to the property and sell it at auction to pay what’s owed. They want to foreclose on both the North Langley lots and the Grand Crest property, and they want to seize and sell the personal property—trucks, tools, equipment, the whole shebang. They also want a declaration that their liens are first priority, meaning they get paid before anyone else. And yes, they’re suing the IRS—because the IRS has filed three federal tax liens against Robert Todd Houston totaling over $250,000. But ABO says, “Nice try, Uncle Sam, but our mortgage was recorded before your tax liens, so we’re first in line.” They’re also suing a law firm—Wright Law, PLC—and its owner, Will K. Wright, who apparently filed an attorney’s lien on the property (likely for unpaid legal fees), but again, ABO says, “We were here first.” Even the Mayes County Treasurer is named, just in case there are unpaid property taxes lurking in the shadows.

Now, what do they want? $314,049.73—plus interest that’s racking up at $67.58 per day. They want attorney fees, court costs, and the right to take possession of the personal property immediately. They want the real estate sold. They want everyone else’s claims wiped out. Is $314k a lot? In Mayes County, Oklahoma—yes, absolutely. The median home value is around $150,000. This isn’t just one house on the line; it’s multiple properties, a business, and a family’s entire financial foundation. And let’s not forget: the bank is only suing for part of what was originally loaned. That $400,500 note is now being claimed at $314k—either because of payments, write-downs, or restructuring. But still: over $300k in debt, and the bank is ready to pull the plug.

Our take? The most absurd part of this case isn’t the IRS being treated like a background character. It’s not even the fact that a law firm is getting sued alongside a family and a federal agency. It’s the sheer volume of debt modifications—like the bank kept hitting the “extend and pretend” button, hoping the Houstons would turn things around, only to finally say, “Okay, we’re out.” It’s like watching someone keep refinancing their credit card debt until the minimum payment is their entire salary. And the fact that this all comes to a head in January 2026, with a filing in January 2026, suggests this petition was likely drafted the second the payment was missed. No grace period. No “let’s talk.” Just lawsuit.

We’re not rooting for the bank. We’re not rooting for the IRS. We’re not even rooting for the Houstons, who clearly bit off more than they could chew. But if we had to pick a side? We’re rooting for the plot twist. We want to find out what The Cove Club, LLC actually is. Is it a failed resort? A failed restaurant? A failed dream on the shores of Grand Lake? Because buried in this mountain of legal jargon is a human story—of ambition, overreach, and the quiet tragedy of a family that borrowed too much, promised too much, and now might lose everything. And the bank? They’re just here to collect. Cold, efficient, and utterly unbothered. Welcome to the American dream—Oklahoma edition.

Case Overview

$314,050 Demand Petition
Jurisdiction
District Court of Mayes County, Oklahoma
Filing Attorney
Tommy R. Dyer, Jr.
Relief Sought
$314,050 Monetary
Injunctive Relief
Declaratory Relief
Plaintiffs
Defendants
Claims
# Cause of Action Description
1 foreclosure of real property and personal property American Bank of Oklahoma seeks to recover personal property and foreclose a Real Estate Mortgage covering real property situated in Mayes County, Oklahoma.
2 foreclosure of real property American Bank of Oklahoma seeks to foreclose a Mortgage covering real property situated in Mayes County, Oklahoma.

Petition Text

2,220 words
IN THE DISTRICT COURT IN AND FOR MAYES COUNTY STATE OF OKLAHOMA American Bank of Oklahoma, ) an Oklahoma banking corporation, ) ) Plaintiff, ) ) vs. ) Case No. CJ-2026-34 ) Robert Reid Houston and Demetra L. ) Houston, husband and wife, Robert Todd ) Houston and Joy Lynn Houston, husband ) and wife, The Cove Club, LLC, Will K. ) Wright, Wright Law, PLC and United ) States of America ex rel Department of the ) Treasury – Internal Revenue Service and the ) Mayes County Treasurer. ) ) Defendants. ) PETITION COMES NOW the Plaintiff, American Bank of Oklahoma ("ABO"), and for its causes of action against the Defendants, alleges and states as follows: 1. ABO is a state banking association with an office located in Disney, Mayes County, Oklahoma. 2. This is an action seeking to recover personal property and foreclose a Real Estate Mortgage covering real property situated in Mayes County, Oklahoma, and thus venue is proper. I. FIRST CAUSE OF ACTION 3. ABO restates and realleges the allegations contained in paragraphs 1-2 above. 4. On February 9, 2021, Robert Todd Houston and Robert Reid Houston made, executed and delivered to ABO a Promissory Note in the principal sum of $152,584.02 payable with interest at the rate of 5.5% per annum with a maturity date of February 9, 2022 ("Note 1"). 5. On February 9, 2021, to secure payment of Note 1, Robert Reid Houston and Demetra L. Houston, husband and wife, and Robert Todd Houston and Joy Lynn Houston, husband and wife, made, executed and delivered to ABO a Mortgage covering the following-described property located in Mayes County, Oklahoma, to-wit: Lots Numbered 7 and 8 in Block Numbered 12 in the Townsite of NORTH LANGLEY, a Subdivision in Mayes County, State of Oklahoma, according to the official recorded Plat and Survey thereof. (the “Real Property”), which Mortgage was duly signed and acknowledged, the required mortgage tax duly paid thereon, and said Mortgage duly filed for record on the 22nd day of February 2021, in Book 1432 at Page 633 of the records of the Mayes County Clerk. 6. On May 21, 2021, Robert Todd Houston and Robert Reid Houston entered into a Debt Modification Agreement with ABO for the purpose of amending the obligations under Note 1 to increase the credit limit to $252,584.02. 7. On May 21, 2021, in accordance with the Debt Modification Agreement, Robert Todd Houston and Robert Reid Houston executed a Promissory Note in the principal sum of $252,584.02 payable with interest at the rate of 5.5% per annum with the maturity date of February 9, 2022 ("Note 2"). 8. On May 21, 2021, to secure repayment of Note 1 and Note 2, Robert Reid Houston and Demetra L. Houston, husband and wife, and Robert Todd Houston and Joy Lynn Houston, husband and wife, made, executed and delivered to ABO a Modification of Mortgage ("Modification 1"), which said Modification 1 was duly signed and acknowledged, the required mortgage tax duly paid thereon, and said Modification 1 filed for record on the 12th day of November, 2021, in Book 1460 at Page 779 of the records of the Mayes County Clerk. 9. On March 11, 2022, Robert Todd Houston and Robert Reid Houston entered into a second Debt Modification Agreement with ABO for the purpose of further amending the obligations under Note 1 and Note 2 to extend the maturity date from February 9, 2022, to March 11, 2025. 10. Pursuant to the second Debt Modification Agreement, Robert Reid Houston and Demetra L. Houston, husband and wife, and Robert Todd Houston and Joy Lynn Houston, husband and wife, April executed and delivered to ABO a Modification of Mortgage ("Modification 2") which said Modification 2 was duly signed and acknowledged, the required mortgage tax duly paid thereon, and said Mortgage duly filed for record on the 4th day of April, 2022, in Book 1474 at page 401 of the records of the Mayes County Clerk. 11. On February 9, 2021, to further secure repayment of Note 1, Robert Todd Houston and Robert Reid Houston executed a Security Agreement for the purpose of granting a lien on the following-described personal property, to-wit: All of the following which debtor owns now or in the future, together with all parts, accessories, repairs, replacements, improvements, and accessions, and wherever located: Equipment: All equipment now owned or hereafter acquired, including but not limited to, machinery, vehicles, furniture or, fixtures, manufacturing equipment, farm machinery and equipment, shop equipment, office and record keeping equipment, parts and tools. All equipment described in a list where scheduled debtor gives to secured party will also be included in the property, but such a list is not necessary to create or perfect a valid security interest in all of the debtor's equipment. ("Security Agreement"). ABO perfected its lien by filing a UCC Financing Statement with the Oklahoma County Clerk on February 19, 2021, as document #2021021902014518. ABO continued this lien with its filing of the amended UCC Financing Statement filed with the Oklahoma County Clerk on August 21, 2025, as document # 2025082102087635. 12. ABO is the owner holder of the Notes, Mortgage and Security Agreement and the conditions of said Notes, Mortgage, Modification Agreements and Security Agreement have been broken, and default has been made in the conditions thereof. There is presently due and owing to ABO a total sum of $58,596.56 together with interest accruing thereon at the rate of $8.102884 per day from January 22, 2026, until paid, together with costs and reasonable attorney fees. 13. By reason of the default, ABO is entitled to judgment against Robert Reid Houston and Robert Todd Houston, in personam and in rem, and Demetra L. Houston and Joy Lynn Houston *in rem* in the amounts set forth above, together with reasonable attorney fees and all costs of the action. 14. The Cove Club, LLC may claim some right, title or interest in and to the Real Property by virtue of the claims asserted in the Petition filed in the District Court of Mayes County, Case No. CJ-2025-222 and a Notice of Lis Pendens recorded on September 23, 2025 in Book 1583 at Page 802, but the claims of said Defendant are junior and inferior to the lien of ABO. 15. The Defendants Will K. Wright and Wright Law, PLC may claim some right, title or interest in and to the Real Property by virtue of the Notice of Attorney Lien claimed recorded on December 9, 2025, in Book 1592 at Page 189, but the claims of the Defendants are junior and inferior to the lien of ABO. 16. The United States of America *ex rel* Department of the Treasury – Internal Revenue Service (the “IRS”) may claim some right, title or interest in and to the Real Property by virtue of the Notice of Federal Tax Liens filed against the Defendant, Robert Todd Houston and Todd’s Kitchen, to-wit: <table> <tr> <th>LIEN #</th> <th>RECORDING INFORMATION</th> <th>AMOUNT</th> </tr> <tr> <td>3155</td> <td>January 2, 2025, in Book 1559 at Page 74</td> <td>$121,616.19</td> </tr> <tr> <td>3156</td> <td>January 2, 2025, in Book 1559 at Page 75</td> <td>$72,112.56</td> </tr> <tr> <td>3157</td> <td>January 2, 2025, in Book 1559 at Page 76</td> <td>$56,431.20</td> </tr> </table> The claims of the IRS are junior and inferior to the lien of ABO. 17. The Mayes County Treasurer may claim some right, title or interest in and to the Real Property for unpaid taxes and should be required to appear and set forth any claim herein. WHEREFORE, ABO prays for judgment against Robert Reid Houston and Robert Todd Houston, *in personam* and *in rem*, and all other Defendants *in rem* for the amounts set forth above together with reasonable attorney fees and all costs of the action and a further judgment foreclosing the Mortgage upon the above-described Real Property and forever barring the Defendants from asserting any right, title, lien, estate, encumbrance, claim, assessment or interest in and to the Real Property; and in the event such judgment is not paid, the Real Property be ordered sold to satisfy the judgment of ABO; and that said sums of money above mentioned due ABO and which may become due pending final payment in this action be decreed to be a first and prior lien upon the Real Property; and a further judgment declaring the lien held by ABO in and to the personal property described above to be a valid and subsisting first priority lien on said collateral, and for a further order foreclosing ABO’s security interest in said collateral and directing that said collateral be sold and the proceeds derived from such sale be applied toward the satisfaction of the Judgment awarded ABO herein and a further Order of this Court granting ABO immediate possession of the property as well as an Order of the Court restraining the Defendants from transferring, concealing, damaging or destroying the aforesaid collateral and for such other and further relief as the court deems just and appropriate. II. SECOND CAUSE OF ACTION 18. ABO restates and realleges the allegations contained in paragraphs 1-2 above. 19. On September 28, 2022, Robert Reid Houston and Demetra Lynn Houston made, executed and delivered to ABO a Promissory Note in the principal sum of $400,500.00 payable with interest at the rate of 6.25% per annum with a maturity date of September 28, 2025 ("Note 3"). 20. On September 28, 2022, to secure repayment of the Note 3, Robert Reid Houston and Demetra Lynn Houston made, executed and delivered to ABO a Mortgage covering the following-described real property located in Mayes County, Oklahoma, to-wit: Lot One (1) Block One (1) of GRAND CREST SUBDIVISION in Mayes County, State of Oklahoma, according to the recorded Survey and Plat thereof. AND A tract or parcel of land in Lot Four (4) of Section Fifteen (15), Township Twenty-three (23) North, Range Twenty-one (21) East of the Indian Case and Meridian, and more particularly described as follows, to-wit: From a point 83 feet North of the Northwest Corner of said Lot 4; Thence South 74°22' East a distance of 609.0 feet, more or less, to the true point of beginning, said true point of beginning being at a point of intersection of the South line of GRAND CREST SUBDIVISION and the Westerly Line of South Grand Crest Avenue; Thence Southeasterly along an extension of said Westerly Line of South Grand Crest Avenue a distance of 58 feet, more or less; Then Southeasterly a distance of 250 feet, more or less to the Southeast Corner of Lot 1 of Block 1 of GRAND CREST SUBDIVISION; Thence North 74°22' West a distance 209.1 feet, more or less, to the Northwest Corner of Lot 1; Thence Southwesterly along an extension of the North Line of Lot 1 a distance of 30 feet, more or less, to a point on to a point on an extension of the Westerly Line of Lot 2 of said Block 1; Thence Northwesterly along said extension of the Westerly Line of Lot 2 a distance of 22 feet, more or less, to a Southwesterly most Corner of Lot 2 of Block 1; thence North 74°22' West a distance of 36.4 feet to the true point of beginning, Mayes County, State of Oklahoma. (the “Real Property”), which Mortgage was duly signed and acknowledged, the required mortgage tax duly paid thereon, and said Mortgage duly filed for record on the 3rd day of October 2022, in Book 1491 at Page 285 of the records of the Mayes County Clerk. 21. On December 5, 2025, Robert Reid Houston and Demetra Lynn Houston entered into a Debt Modification Agreement with ABO. Pursuant to the Agreement, the parties agreed to increase the interest rate on the unpaid principal balance of the Note 3 to 7.75% per annum and to extend the maturity date from September 28, 2025, to December 5, 2028. 22. In accordance with the Debt Modification Agreement, Robert Reid Houston and Demetra Lynn Houston made, executed and delivered to ABO a Promissory Note dated December 5, 2025, in the principal sum of $317,756.95 payable with interest at the rate of 7.75% per annum with a maturity date of December 5, 2028 (“Note 4”). 23. ABO is the owner and holder of the Notes and Mortgage, and the conditions of said Notes and Mortgage have been broken, and default has been made in the conditions thereof. There is presently due and owing to ABO the total sum of $314,049.73 together with interest accruing at the rate of $67.578831 per day from January 22, 2026, until paid, together with cost and attorney fees. 24. By reason of the default, ABO is entitled to judgment against Robert Reid Houston and Demetra Lynn Houston, in personam and in rem, in the amount set forth above, together with reasonable attorney fees and all costs of the action. 25. The Defendants, Cove Club, LLC, Will K. Wright, Wright Law, PLC and the United States of America ex rel Department of the Treasury – Internal Revenue Service have no right, title or interest in and to the Real Property described in this Second Cause of Action. 26. The Mayes County Treasurer may claim some right, title or interest in and to the Real Property for unpaid taxes and should be required to appear and set forth any claim herein. WHEREFORE, ABO prays for judgment against Robert Reid Houston and Demetra Lynn Houston in personam and in rem, and all other Defendants in rem, for the amounts set forth above together with reasonable attorney fees and all costs of the action and a further judgment foreclosing the Mortgage upon the above-described Real Property and forever barring the Defendants from asserting any right, title, lien, estate, encumbrance, claim, assessment or interest in and to the Real Property; and in the event such judgment is not paid, the Real Property be ordered sold to satisfy the judgment of ABO; and that said sums of money above mentioned due ABO and which may become due pending final payment in this action be decreed to be a first and prior lien upon the Real Property. American Bank of Oklahoma, Plaintiff By: ____________________________________________ Tommy R. Dyer, Jr., O.B.A. #13594 DAVIS & THOMPSON, PLLC P.O. Box 487 Jay, Oklahoma 74346 Telephone: 918.253.4220/918.801.4454 Fax: 918.801.4493 Email: [email protected] Attorney for American Bank of Oklahoma
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