Monday, December 8, 2008

Is Frank Melton's mortgage past due?

**Must Credit Jackson Jambalaya**

Is Jackson Mayor Frank Melton about to lose his home? A five-year balloon note on Frank Melton's home at 2 Carter Grove Circle held by Bancorpsouth was due in full on December 5, 2008 (The lack of a release of the mortgage by Bancorpsouth was verified at the close of business Friday by the Hinds County Chancery Clerk's office.)

The mortgage was taken out by Mr. Melton and his wife on November 24, 2003 for $250,000. The Meltons were to pay in monthly installments of $2,045.03 until December 5, 2008, when the "final balance of principal and interest" was due (Link to copy of deed of trust at bottom of post)

Using a mortgage calculator on, it is estimated the Mayor's mortgage was a 15/5 balloon (payments amortized at fifteen years with a final payment due in five years.). Using 15 years for the term and an interest rate of 5.5%, a payment of $2,043 was calculated. Without knowing any terms of the mortgage, this probably the most likely scenario for the terms of his note as longer terms would mean a much higher interest rate. Mortgage Calculator . If these are the correct terms, then the amount (excluding any additional fees) due in full last Friday was $189,397.13 according to an Amortization Table.

It is also interesting that Melton took out a five-year balloon note on his home when in late 2003, there was a refinance boom in the mortgage industry as rates were at historical lows. The Mayor should have been able to get a fifteen year note (with no balloon due) at the same interest rate or close to it as his current mortgage.

This is not the first time questions have been raised about Frank Melton and his mortgage payments as earlier in the year his Jackson home was placed into foreclosure proceedings by Omnibank (as discussed in two earlier posts,
Mayor and His Mortgages and Frank's Foreclosure Problem). The Mayor also had a property in Texas that was seized and sold in a Sheriff's sale in 2006 ( Another Foreclosure ). Mr. Melton was forced to pay taxes and late fees on his Jackson home the day before it was subject to a county tax sale as well a few months ago. Mr. Melton is also currently delinquent on the taxes for his home in Tyler, Texas, owing (including late fees of $890.17) $5,474.50. Smith County, Texas Property Tax Records

Regardless of how much Mr. Melton owes for his second mortgage or property taxes in Texas, what is clear is that the first mortgage on his current home in Jackson became due last Friday and is to be paid in full. Since this is a balloon note, it has to either be paid in full by Mr. Melton or Bancorpsouth or another lender can refinance the property.

It also must be asked why a bank would refinance a huge mortgage to someone who has lost a home to foreclosure in the last two years and has received a foreclosure notice on the current home in the last 11 months. Lending standards now require a borrower to not have a foreclosure on their credit history for 5 years as foreclosures are now considered to be worse than a bankruptcy when underwriting a mortgage. Given today's climate and how banks are reeling from losses caused by defaulting borrowers, a shareholder or member of the board will likely have some tough questions for anyone who refinances Melton's mortgage given his recent foreclosure and property tax problems (especially considering there is a SECOND mortgage due in full in April and the fact that the Mayor faces a trial in January.)

Of course, Mr. Melton could have paid his balloon note in full and the release of the mortgage may simply not be filed at the courthouse yet by Bancorpsouth. Does anyone think that is the likely explanation?

Copy of Melton's Deed of Trust

Update: WLBT covered this tonight. WLBT Story


Anonymous said...

Where is that dickwad complainer now to bitch about original content? GFYA

Kingfish said...

They'll just say anyone can copy public records and post them.

Its one thing to get a public record. Another to understand what the hell it means.

So how does Frank get $200,000 to pay his house note?

And if I'm Bancorpsouth, no way in hell I'd let him refinance the loan. There is that Omnibank loan sitting out there and if he defaults on it and they win the race to the courthouse, Bancorpsouth is screwed.

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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