Friday, February 15, 2008



"Mayor Frank Melton is in danger of having his house on Carter's Grove in Jackson foreclosed on if he doesn't make payments owed to OmniBank by March 11.
OmniBank, the present holder of the deed for the Jackson property, appointed a substitute trustee - Jackson attorney William J. Little Jr. - to handle the situation between the bank and Melton, according to a document filed with the Hinds County Chancery Clerk on Feb. 13.Little, who would not state how much money Melton owes on his house, said a public notice will appear in the newspaper on Monday and run for four weeks announcing the date for a foreclosure sale on the house."

OK. Very strange. First he gives up JPD to Mac. Then the house is going into foreclosure. Strange behavior. Or maybe not so strange if for some reason you think these things are no longer important. Maybe some of the rumors floating around since Langston pleaded guilty are true after all.

Update: CL published a story today with more details.

"Melton said he had not heard about the situation until a reporter from The Clarion-Ledger contacted him Friday.
"I'll be up in (Little's) office Monday to resolve this," he said.
Little, who would not state how far behind Melton is with his mortgage, said a public notice will appear in the newspaper on Monday and run for almost four weeks, announcing the March 11 foreclosure sale.
If Melton does not resolve the issue within the next few weeks, bidding will start on the home at whatever Melton owes the bank.
Melton said he pays a quarterly note on the house, which has an assessed value of almost $353,000. He said he made a payment in October, at the beginning of the last quarter.
Melton said he has not received any notices from OmniBank but admitted he is running about two or three months behind in receiving his mail."

There are several serious questions raised by this story and Melton's comments:

1. The issue of the quarterly note. It is very rare in the mortgage business for a borrower to obtain a note that is paid quarterly as they are almost always required to make monthly payments. Such a practice is so rare that this is the first time I, along with other seasoned mortgage professionals have ever seen such a loan, even for a bank that can in-house (Bank services the loan itself instead of selling it to Fannie Mae or a servicer such as Citi or Chase, thus allowing the bank to make its own terms) a loan. However, the saying that he who pays gets to play applies here and if Omnibank makes a loan that stays on its books, it can set the terms for the Mayor, including making the payments quarterly. However, one would assume that in today's market, a second mortgage that is repaid in quarterly installments is considered to be riskier than most mortgages (The second mortgage market has largely dried up in the last year as lenders have been torched (not burned) by second mortgages.)

2. The issue of the second mortgage. Why is the mayor getting a second mortgage on his home when he is supposedly a millionaire?

3. A sale has been announced for March 11. This means the note is more than three months late. The lender will also make several attempts to contact the borrower in order to resolve the problem, especially on a second mortgage as they are in an inferior position (The first lien is paid usually, then the second). Foreclosuring on a home is not cheap for banks (when is a lawyer cheap?) and there is a reason why there are lawyers whose practices handle only foreclosure cases. For that reason, a note that is three months late is usually not placed into foreclosure although some procedures are initiated. However, if this is truly a note that is paid quarterly, one would have to look at the terms of the note to see what the schedule is for foreclosure proceedings to start as the normal rules would not apply is such was the case.

4. Melton says he has not received any notices from Omnibank. That is a lie as lenders will always send out notices in an attempt to the borrower stating he is behind in his payments. Most lenders will even call the borrower in an effort to resolve the situation. I will bet that the records from Omnibank show several notices were sent out and that repeated efforts were made to contact Mr. Melton regarding his delinquency. His excuse about not getting his mail doesn't hold water either as he has not been at WLBT for two years. Does anyone really buy the excuse that a supposed millionaire such as the Mayor runs 2-3 months behind on getting his mail? One would expect the Mayor to remember even without the assistance of the U.S. Postal Service that he has a house payment to make. Some things you just don't forget: phone bill, light bill, and the house note. Did something in the Mayor's brain not tell him "hey buddy, we haven't paid the house note in 5 months. We should go pay it."?

There is more to this story and we haven't heard the last of Mayor Melton's foreclosure, unless he pays his house notes in full.......soon.


Anonymous said...

"He said he made a payment in October, at the beginning of the last quarter."

Well, what he says and what the facts are, are two usually very different things. I'm going to go out on a limb and, without any evidence except what Melton says, side with Omnibank. Actually, I think that is pretty good evidence.

I used to be a Realtor, and I've never heard of a quarterly mortgage payment. I called a friend, who is also in the business, and she has never heard of a quarterly.

Second question, is that if he pays it 4 times a year, my question is this: Is he 3 months behind? Or 3 PAYMENTS behind. Big difference. And he last paid in October. Of 2007? Or 2006? I would venture a bet that it was 2006.

Kingfish said...

I have similar questions myself.

Keep in mind that a bank can structure a loan however it wants to. I've never heard of this in terms of a mortgage but then again, its the banks call if they keep it on their books. Something doesn't add up though.

By the way, there was something that the reporter did not do she should have done. As I'm going to do it Sunday or Monday, I'm not going to say. I will let you guys figure out what it was.

Anonymous said...

Wouldn't the notices be on file too?

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Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).

Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.

In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS