Mayor bailed out by trust
It is a secret who loaned the Port Richey official money through a trust to save his home from foreclosure.
By CAMILLE C. SPENCER
Published December 31, 2005
PORT RICHEY - In November, Mayor Mark Abbott faced foreclosure on his home.
Abbott had missed his mortgage payments since August, and owed $172,593.11 to Citimortgage Inc. for his home at 5346 Bluepoint Drive.
Now, Abbott has a new $250,000 mortgage from a trust created Dec. 9, and he won't have to make a payment until June 15, 2006.
What remains unclear is who lent Abbott the money.
"If he got a mortgage through a trust, somebody loaned him money through their trust," said Gladys Wills, owner of Fidelity Mortgage Loans Inc., which has offices in Tampa and Bradenton. "Somebody loaned him money to buy out the foreclosure, probably a private individual who does nothing but invest in mortgages, and their trust is getting interest from that."
Attorney Roland Waller created Bluepoint Trust and began the new mortgage for Abbott, records show.
A trust is a legal entity used to protect a persons assets.
Under the terms of his new mortgage, Abbott must send $1,800 monthly payments to Waller's law office - Waller, Mitchell & Barnett - at 5332 Main St. in New Port Richey.
The Bluepoint Drive house is assessed at $311,400, according to the Pasco County property appraiser's Web site.
When asked Friday where the money came from, Waller declined to comment. He cited client confidentiality, then wouldn't say who he was working for.
Waller said the mortgage isn't due until June because "that's the deal the investor cut. I represent different people and facilitate loans for people from time to time. I am not going to tell you about this file or any other file I have with clients."
Abbott, who earns $4,320 annual salary as mayor, couldn't be reached for comment on Friday. He failed to pay his Aug. 1 mortgage payment and all subsequent installments on the house he bought in March 2002. The foreclosure was filed Nov. 18, records show. But a public official using a trust for a mortgage could lead to problems, the executive director of the San Francisco Ethics Commission said Friday.
"Even if it is legal, it doesn't look good," said John St. Croix. "Public officials set a higher standard for themselves. That could be vulnerable to a complaint and possible explanation. Not just the mayor, but any public official. I would consider it rare."
Mortgage experts say trusts often are used to protect a person's assets, even after death.
"Most mortgage companies don't allow you to do a mortgage while you are in a trust," said Bill Bigelow, a sales manager at Affordable Home Mortgage Inc. in New Port Richey.
"A trust is usually used for protection of somebody who isn't able to fend for themselves, and a trustee takes care of them. Some lenders allow a trust. But even with a trust, they want to see some credit background. It's something I don't see, really."
Said council member Fred Miller:"I've never heard of a trust for the purpose of a mortgage. He should work on his personal life and get that in order."
Abbott has faced financial problems before. His ex-wife, Ronda O'Dell, had pursued him for $2,000 in child support payments he failed to make since their 1998 divorce. In 1999, records show, Abbott and O'Dell faced foreclosure by Federal National Mortgage Association.
Camille C. Spencer covers the city of Port Richey. She can be reached in west Pasco at 869-6229 or toll-free at 1-800-333-7505, ext. 6229. Her e-mail address is cspencer@sptimes.com