Perhaps you recall our discussion last month of Bobby DeLaughter’s Civil War-era house, “Hiawatha,” and what one of us discovered about its financing. Now I don’t know whether our friend’s find was first-news to the Justice Department’s Public Integrity Division, but what Jerry Mitchell reports this morning sure sounds like a folo-ing up. Recall that a reader emailed:
… When the information broke about the Langston plea, I began my own inquiry into what if any bribe to DeLaughter may have occurred in money form. I looked at the land records in Hinds County and found that the Judge and his wife have a mortgage on their "modest " home in an amount over $400,000.00. It is payable in 240 monthly installments of around $2500.00 +/- with a balloon payment at the end of the 20 years of approximately $250,000.00. This is all in the land records for the world to see. This document was recorded in 2007.
Now I know that the Judge is around 53-54 years of age. Do the math " ".he’ll be in his mid 70’s and owes a quarter million on his home? Might there be a future payment from somebody?
Now this money may have all gone into the house. But if it is so modest as Lynda writes, how much could you justify if you are a lender in the small town of Raymond? And it was financed by local bank Merchants and Planters.
I’ve not been able to connect the dots here, except it just doesn’t make sense. …
Well, if they didn’t have it already, any Feds stopping by here on March 22 sure got that one tied up in a bow, didn’t they? Same-same Jerry Mitchell:
In examining DeLaughter’s finances, authorities have obtained a copy of the Feb. 28, 2007, deed of trust of the purchase by DeLaughter and his wife of a Civil War-era house named “Hiawatha.”According to the deed, the house cost $413,000. The monthly payment is listed as $2,819. At the end of 20 years, the couple will owe a balloon payment of $250,882.The New York Times mentioned DeLaughter’s purchase of the house in an article last year, and DeLaughter was quoted as talking about a Minie ball that dislodged from the wall of his house as it was being transported to Raymond from Champion Hill, the site of a famous Civil War battle.
Alan Huffman, who wrote the story for the Times and has restored a house in Bolton, said there’s a trend toward moving old houses to new locations and renovating them. “Most people who move houses are prepared to do it financially because it is a big expense,” he said.
DeLaughter spent a reported $17,000 to move the house to its present location in Raymond.
As a Hinds County circuit judge, he earns $104,170 annually. His wife, Peggy, is a nurse.
Kevin Langford, vice president at Mortgage Consultants Inc., tells Jerry that DeLaughter’s salary alone is enough to afford a $413,000 mortgage. He also thinks a $250,882 balloon payment isn’t unwise because the house will be worth more in 20 years, should the owners want to sell or refinance. “A balloon is very conservative.”
First I’ve heard of that theory, hmmm. (Never mind the complications that a federal prosecution of the mortgagor might present.) But back to Mitchell, who interviewed one Hinds County judge not surprised that Bobby’s finances are being looked into.
The fact DeLaughter will have a $250,882 balloon note after making mortgage payments for 20 years “blows my my mind,” [Judge Bill] Skinner said. “That’s the most bizarre home deal I’ve heard in my life.”
Judge Skinner also says that, though he respects Bobby, he does have to question why he’d hear any case in which Ed Peters appeared for one side.
“I’ve never heard a case of anybody who was in my law practice,” Skinner said. “I recused myself the other day from hearing a case of a guy I worked with just out of law school. The attorneys said nobody would argue with me serving as judge, but I said, ‘No, I’m not going to do it.’ “
Not everyone sees it that way:
A witness in the [Byron de la] Beckwith prosecution, Peggy Morgan, said she believes DeLaughter’s integrity is being questioned for no reason.
“Had it not been for him, I feel like I wouldn’t be here today,” she said. “Bobby protected me in a lot of ways behind the scenes. My prayers will be with him until this is over.”
Don’t know about that, but before this article is over, Jerry finally blurts a name also discussed here for months: “[DeLaughter's] lawyer, Cynthia Speetjens of Madison, could not be reached for comment.”
Bobby Delaughter needed Peggy Morgan for his case against Byron, therefore, he protected her. Otherwise, he wouldn’t have given the time of day. Ask Cedric.
Morning, jsh. Cedric?
Cedric Willis.
Oh, that Cedric. Yup.
I’m of the same mindset as Hinds Judge Bill Skinner, you just don’t set in Judgement in a courtroom of your former co-workers, your once upon a times “friends” your former political doners”those that helped you get where you sit today. The Home Financing is a debacle for the borrower and the lender, in 20 years Judge DeLaughter will have paid 600k and owes 250k in a house clearly worth no more than 150k…Maybe this is a subprime loan and the Devil is in the Details.
Two items: One, this type of mortgage is of a very popular type and not some sinister “we’re waiting on the bribe money to get here” type arrangement. I actually know several “common” people with this same type mortgage. While I personally don’t like them, it is just one of many alternatives available on the open market. The “balloon” type mortage allows people that can “afford” on paper the total monthly principal and interest but choose the lower monthly payment, especially if they don’t intend to keep the home until the balloon note is due. The interest rate is most times lower than a fixed 30yr “conventional” mortgage and is IMO, MUCH better than an ARM (adjustable rate mortgage.) Today’s dollars are cheaper than tomorrow’s and the property will increase in value is the thought(s) behind this mortgage.
Two, Bill Skinner is a great guy, a “man’s man” and straight as the proverbial arrow and while his own personal story is very compelling, he isn’t in the mortgage or personal financial planning business so his opinion on BL’s mortgage type has no merit. Kinda like me entering into the debate on saving the whales or “qui tam vs legaltsunami " lawsuits. Bill has a great background in law enforcement: he was on Jackson Police Department’s SWAT team for years. His daddy was killed in the line of duty when he was like five years old. I’ll try to find the details online since time makes the details blur. I personally know him and he is straight as an arrow and someone that “tells it like it is,” about what he knows, which is law enforcement and the law. Not mortgage financing. http://tinyurl.com/695ob9
We’ll probably have to find some “smoking gun” other than BL’s choice in mortgages.
Dear Shaves: are you in the mortgage or personal financial planning business? if not, your opinion has no merit either?
JSH. Yes, in fact I was, should I submit my CV for your review?
I’m with Shaves. If every balloon payment mortgage was shady, we’d have a whole lot of people under investigation.
Would y’all who know more about them than I please help me out here on balloon mortgages? Are they in fact “very conservative”? That’s not my impression (but I haven’t researched them in depth).
The balloon does not seem shady in itself. I read that Times article back in January and thought it (and everything else I’ve heard about the DeLaughter house) inconclusive. I’m still in that position.
The interesting thing to me is why this story ran, now. The only newsy thing in it is that the federal government is probing DeLaughter’s finances. While there’s a “Well, duh” quality to that statement, it hasn’t been reported quite that way. But seriously, why this story now? Why not in January?
Shaves//Pull up Raymonds’ civil war homes, look at what he is gonna have 800k dollars in, and I don’t work as a bank examiner, or a real estate appraiser, but 20 years from now, you’re gonna tell me this small civil war home is gonna be worth 800k…I still stay with Judge Skinner and I am a lender. Not saying The Judge D has done anything wrong and he is really into this part of our past history, It could be it was worth it to him, not to me, we just sold off a historic CW battlefield that we bought 35 years ago not knowing what we were buying, and the seller didnot know what he was selling us. It was all about the money.
Whether Skinner knows what he’s talking about re mortgages, what most interests me is that he’s talking about BDeL. Y’all in Jackson, is it your impression that the local bench has turned against its brother by now? Or is Skinner an outlier in this? Could his breaking omerta be the answer to “why now”?
On the street I live on there are people with interest only jumbo mortages that won’t have amortized as much as Delaughter’s mortgage will have amortized 20 years from now. And nobody’s writing a story about them or alleging that there’s something funny about their finances.
And I don’t think it’s only high end mortgages that are out of whack in this country based on what I’ve been reading.
If somebody has paid him some money or promised to pay him some money or bought that house for him or is paying his mortgage payments then you have something. Otherwise, give me something else to read.
Balloon mortgages are conservative in the sense that they allow the mortgagor to make lower payments up front while deferring the largest payment on the mortgage for a number of years. In the interim, the mortgagor usually refinances.
Remember, two key participants in the conspiracy to bribe DeLaughter, Balducci and Langston, are cooperating with the government, and both have stated that the quid pro quo was consideration of DeLaughter for a federal judgeship. Neither has said anything about a cash payment to DeLaughter. I’m not surprised that the DOJ is looking at DeLaughter’s finances, but it seems to me that we are getting into some pretty speculative territory here.
I’m not defending BL in any manner, but let’s all try to “keep it real.” I know where he lives and yes, I’ve seen the house and where it’s located. Close up in fact. But I’m not going to presume to be all-knowing on his motivations of home choices or mortgage type. I was was merely referring to the article cited and the insinuation that there was something “dark” about his mortgage. Should I apologize in advance for not rushing to the immediate conclusion that every thing the man has done is sinister? Ed Peters issues notwithstanding since those are very questionable, but I’m not buying the theory that everything he has ever done in life is shady.
Do we really want to try and find a conspiracy in where he grocery shops or gets his car’s oil changed next?
Lotus, here’s a couple of quick links, http://www.mortgageloan.com/balloon-mortgages
http://tinyurl.com/5b48bp
I probably should just go mow the lawn or work in a flower bed before watching the rest of the Masters today and not get my dander up by paying any attention to some posters here that appear to like trashing people with innuendo and not facts.
And Mag, “price” is what a buyer is willing to pay for something. I’ve got a couple of paintings and vases that I think are elementary, but Ms. Razor likes them so she bought them. I’ve seen similar in flea markets, but the Arts Alliance displayed them. While not worth $2.00 to me personally, she obviously values them more. Kinda like Bobby’s house to him.
JSH, let’s just let the facts speak and not go chasing down rabbit holes because we’re bored. It’s obvious to me that you’ll spread rumor and innuendo, your #56 post here on Folo, http://www.folo.us/2008/03/20/woops-the-rigsbys-slide-continues/ and I personally don’t like it, but it’s your right to post as you see fit. Just please allow me the same courtesy, sans the vitriol and hysteria of un-proven allegations.
Thanks for those links, zen. Now to edumacate myself fu’ther . . .
Lotus, thank Shaves.
Jerry Mitchell reports “According to the deed, the house cost $413,000. The monthly payment is listed as $2,819. At the end of 20 years, the couple will owe a balloon payment of $250,882.”
This mortgage is nothing unusual. If you seek proof check the mortage/deed of trust filings in any urban county in any state of the United States.
Also, balloon payments are very common. Often they reflect a good deal of planning for the future. For, example, Judge Delaughter could well be planning on retirement about the time of the balloon payment. And, at that time planning on moving to less costly circumstances. The deed of trust (and the house) would then be paid for. In the interim he has been able to contract for a monthly payment he and his family can afford.
There are many more reasonable scenarios.
Looks like the judge was exercising reason and good judgment concerning the acquisition and financing of his home — Civil War Era “Hiawatha.”
(A nice name and a nice connection to the poem and the the Mississippi River as it really takes on character in Minneapolis just downriver from St. Anthony Falls, the only falls on the river. There is a statute in tribute to Hiawatha at the falls of Minnehaha Creek in Minneapolis just above where the creek flows into the Mississippi. Historical naming of the home ties us all together, does it not? Sort of overcomes some of the more base and painful aspects of human relations.)
Oops, got so excited ’bout mortgages, I couldn’t read straight, guys. Solly.
The suggestion that a balloon mortgage, in and of itself, is shady, is ridiculous. While I am no fan of DeLaughter due to the recent revelations since Nov. (learned mostly here), I don’t see the sinister aspects of this mortgage loan that some of you do.
I will have, at least initially, a balloon mortgage on my newly built home (with an intial 5 year payment term before maturity). I plan to refinance at the end of the payment term, or before when conditions are right for me. The loan is fully secured by the appraised value of the home. And the amount is similar to the amount in DeLaughter’s mortgage — which happens to be the approx. cost to build a “modest home” these days with rising construction costs. I am not in politics, have zero GOB political clout, and am generally considered “small potatoes” compared to many. Am I “shady” too due to my mortgage terms?
Need to find something else to discuss rather than Bobby D’s mortgage. Like PL Blake.
A balloon mortgage is not sinister unless some one is paying it for him. Balloons are rather common. Instead of a 30 year fixed mortgage you go to the bank to buy a house and get a loan, for say, $200,000. It is due in 5 years; thus balloons in 5 years. You make monthly payments of whatever you and the lender agree; usually as if it were amortized over 20-30 years. But entire note is due at end of 5th year and you either pay it off or renew it. The borrower’s risk is 1. Having interest rate to go up when refinancing, 2. Losing credit status and not being able to refinance, 3. Somehow p’oing the banker into calling your note due and not allowing a refinance with his bank.
Advantage to the borrower is that it is a quick bank loan and usually less costly on the front end than a 30 year mortgage.
So, the talk of the balloon payment and mortgage financing arrangement is basically a lot of hot air.
While I appreciate some of the compliments that have been bestowed upon me in your blogs, y’all know as well as I that Jerry Mitchell’s pargaraph of what I said is only a small amount of the interview he did with me Friday afternoon. I told Jerry that the morgage in itself was not a problem, however, my family and I could not do a loan like the one Bobby and Peggy have. First of all, I have three kids and I could not make that type of house payment, second, with balloon payments, you are betting that your house will appreciate, and you know that is n0t always the case. Jerry asked me if I would hear a case of someone that I once worked with, and I said no. I also told him that perception is everything, just the perception of someone influencing a judge affects that judge’s credibility, whether it is true or not. I do not even socialize with lawyers or anyone that appears before me because of that perception. As far as me turning on Bobby, that is the farthest thing from the truth. I consider him and his wife friends. My wife and I pray for him and his family everyday because of what they are going through, whether he is guilty or not, and this entire situation reflects on every Mississippi Judge. Jerry asked me specific questions about a balloon note and hearing cases with former law partners or employees. Also, when I had my law office in Raymond, I did do house closings and I do know a little about home loans, I just chose to not recommend balloon notes for my clients and for my family.
Thank you for the clarifications/expansions, Judge Skinner, and welcome to folo.
I know a thing or two or three about mortgages and something doesn’t add up.
First of all, he could’ve gotten an interest only mortgage that was conforming. Ten year interest only and then 20 year repay period. The rate stays the same the whole time, which is the advantage of the Fannie Mae one. My question is why didn’t it go Fannie Mae which would’ve probably given him a better deal and rate.
Second. Whats weird is I used bankrate.com’s and figured his monthly payment for a 20 year note at 7% for 413,000 at 2400 a month. So why a 20 year balloon for $250,000 or so when he could’ve done the same thing with a 20 year fixed rate conforming mortgage and had it completely paid off?
Or is it because it was a rehab/constuction type loan and he is fixing up the house? Would know more if I could see the deed of trust as I’m curious who the lender is.
dear shaves: apparently I offended you immensely. I thought you told me you were a nurse. And believe me I have no need to resort to innuendo when it comes to DeLaughter as I consider myself a victim of just one of the many DeLaughter/Peters schemes. What I posted was facts. So sorry you took immense offense to by inquiry into your expertise in the subprime market. None was intended, just an honest inquiry.
and by the way, I am in no way criticizing balloon mortgages. They are used quite a bit and are not shady.
“a little off our path, but GOLEE” March 29 @45 Shaves after talking about practicing defensive medicine you stated, “I can’t pretend to speak for the doctors I’m on the nursing side of health care.” From this statement I assumed you were a nurse and not a personal financial planning business nor in the mortgage business. Just surprised a nurse would think a judge not well versed in mortgages, judges’ salaries and the like. Didn’t know you were a personal financial planner, thought you were a nurse.
I think shaves’ general point is a good one and is one that I’ve tried to make before, which is: people in this space are exceedingly quick to assume something crooked out of a situation that may or may not be so (granted with some folks who do not seem to deserve the benefit of the doubt). IMHO, leaping to those assumptions without possession of corroborating evidence demeans the value of the comments as an additivite to the editors’ posts and does not add to the discussion. I think that was shaves’ point, and to the extent that was it, I second it.
I couldn’t agree more DN. That was why I was asking.
JSH. No personal offense taken. However to answer your question(s), I changed careers later in life, but I still dabble about a bit. Something a few in the legal profession may be about to do also (smile). Some get in and some get out…
However, I still think that some past personal circumstances and emotions influence you to make un-founded allegations with no corroborating evidence, such as the one I cited above, especially in calling people out by stating, “…that he is a lying, cheating racist who lives in a house no one in the legal profession can understand how a judge could afford…” just to point out one instance I’ve observed where your opinion was stated as “fact.”
But that’s just my opinion and we can agree to disagree on that point and move forward.
DeltaNative. You nailed it. Thanks for the backup: a lil sumptin’ sumptin’ is in the mail for you. LOL
oldmuley is right. It would be interesting, to say the least, to have more information (speculation even) about P.L. Blake, football player and all around guy apparently great fun to be with. And, how about those grain elevators in Texas he is said to have owned at one time? More beautiful than the Kansas grain elevators which were the backdrop for Kim Novak in the movie “Picnic.” But then I digress to another century.
Shaves: believe me when I say I know what Im talking about. Or not. Your choice. Thanks for clearing up the career thing. Later dudes.
for whatever life i have left i can’t understand why what i have reported and wore-out writing in these comments haven’t been heard. if your an attorney you’ll understand if not i’ll as briefly explain as i can. 1995 bogalusa chemical release was not an accident and attorneys lied about what was released. a disposal attempt in my view failed because their chemical landed on my family’s home. although there were few persons affected attorneys accepted an 84 million dollar settlement on me alone. my wife and were told we would die and not to bother the lawyers. I fired them then got another attorney. so what this next attorney keeps the fraud going. they held a trial with false claims it failed so a known 176 million was all placed on my family and documents show a sought for 2 billion. the failed trial was appealed the appeals court held the ruling on no injuries to others, no matter our compensatory claims were used to gain a punitive action. in 2004 the court made payment to the fraudulent claims attorneys got fees as did the court. we were left for dead but when our symptons stablelized it all hit the fan. we have been attacked by every state agency you can imagine we have been denied any type of aid you can imagine. our exposure left us with life-threatening conditions. our claims went to being settled by judge james graves who refused to release any awards to us they were next held by judge tomie green. we acquired documents in 2004 and demanded release in 2005 judge green transferred the awards to judge bobby delaughter both judges conspired to alter the civil action number. bobby delaughter excepted the awards and turned his back to any and all actions placed before him regarding relief. after stating no one was trying to defraud us he kept the awards and dismissed our claims in late 2007. we have posted documents at photobucket.com login FALCON47_2008 password BUBBA13 this matter has been repeatedly reported to authorities as well as listed within our actions regarding relief. we have posted about 100 documents of the 800 or 900 documents we possess.
Just saw the deed of trust. constructioni loan. Although really screwy in a way because most construction loans are NOT for 20 years and ballooning in 20.
HOPEFULLY what he is doing is setting it up as a construction loan and then when done is getting a conforming refinance because its a much better deal for him from what I can tell so far. That would explain why the balloon note.
With Judge Skinner posting here instead of yall politics, does this mean that folo is the hottest blog in the State?
Heh, Hot Rod, my Magic 8-Ball says Judge Skinner is immaterial to that question.
Perhaps since Mr Skinner is so prompt to comment on DeLaughter’s current woes he can share with us his take on Houston Patton. After he reads the Bar’s findings and the wonderful work done by the Folo people, of course. I would hate for him to less than informed on the subject.
JailForPatton@Gmail.com