By Steven Robinson
Recently US Senate candidate Jim Deakin’s home went into foreclosure. Anyone aware of our nation’s tremendous financial problems can understand and even sympathize with Jim’s financial plight. No one wants to see anyone go through that painful process. However, in this case you must take a closer look to understand, that IN SPITE of his ‘conservative rhetoric”, Jim Deakin spends money just like the US government he is so fond of criticizing. That is to say, he borrows with the “promise to pay in the future” SO he can spend it today!! In this case, Jim does it with government underwritten loans. You only have to look at the public records to discover Jim and Adonia Deakin’s spendthrift habits.
Many people who obtain loans do so with the intent to pay down the mortgage and in time, own the home free and clear. Their goal is to have a home that is debt-free, with no monthly payment. In theory the federal government would ALSO operate this way, keeping the debt in check, allowing for some valid reasons to borrow, such as war. However, we know that our federal government has borrowed so much money over the last 40 years to finance outrageous spending, guaranteeing re-election by ‘buying’ support of the voters and the companies to whom they dole out this money. (The Taxpayers future earnings)
So let’s get back to Mr. Deakin. As Jim has stated, he bought his current residence in 1995. He paid, $148,659 with a VA loan for just over $141K, was for a very nice home in North Phoenix. Unfortunately Jim endured a divorce and he refinanced the home into his name. The new loan for $164,400 closed in August 1999, borrowing $25,000 more equity, perhaps used to buy out his ex-wife. Nothing unusual with this loan.
In 2001, Jim married Adonia, and just one year later, in August 2002, Jim and Adonia obtained a $20,000 Home Equity loan (HELOC) in both their names. Again, there is nothing unusual about this loan; people have used their equity for a variety of purposes. There is one interesting note: Adonia’s home on East Sequoia Drive was paid off two months later. We don’t know whether these funds were used to pay off Adonia’s loan, just that the loan was paid off. More on that later.
However, less than 18 months later, in January 2004, Jim again refinanced, borrowed an ADDITIONAL $32,000 more, with a $216,000 loan. More significant about this loan is that Jim obtained financing as a “Single man, his sole and separate property”! NOW the financing activities are getting curious; after all, isn’t Jim married!?
Then, in May, Jim obtained another equity loan (HELOC), THIS time for $54,000, and again as “his sole and separate property”. Weren’t Jim and Adonia married? It’s Confusing, to be sure. Yet the critical point is that again, Jim is borrowing on his ‘future ability to pay’; and with another $54K to spend.
In May 2005 Adonia sells the home on East Sequoia Drive, she had originally purchased in 1997, and had refinanced in 2000. This is the loan that was paid off in 2002. So, when the home sold, a very nice home at that, Adonia cleared over $100,000 at the sale, perhaps more.
Then, in June 2007, Jim and now Adonia, refinanced again! This time the loan is a WHOPPING $376,000!! After paying off the existing liens, Jim borrowed an additional $106,000! Again, it’s based on Jim’s ‘future ability to pay’.
So here is the situation, In FIVE short years, beginning in August 2002 through June 2007, Jim and Adonia borrowed an total of additional $212,000. Furthermore they received another $100K from the sale of Adonia’s original home. NOW, after MORE THAN DOUBLING the mortgage loan balance, Jim Deakin NOW tells us HE and Adonia are “upside down” in their mortgage!? Well no wonder! They’ve spent over $300,000 in FIVE short years; by borrowing most of these funds, based on Jim’s ‘future ability to pay’! This is a 130% increase in his debt over five years. When you contrast this with the National Debt over the same time period, the is ONLY a 10% increase! Yet Deakin wants to lecture the Congressman about spending? I guess Jim knows how to better manage our country’s finances.
Yet, JUST WHO does Jim Deakin blame for HIS financial difficulties? In his first press release to Fox10 here is what Jim says: “Small businesses have been struggling because of the burdensome taxation and regulation implemented by both of my opponents.” What? How did taxation and regulation cause Jim to borrow and spend so much? He then says, “HUD amendments enacted by my opponents and the repeal of the Glass-Steagall Act allows greedy bankers to create the derivatives market resulting in the crisis we have all experienced since 2008.” SO THE ‘GREEDY BANKERS’ made him do it!?
No, Mr. Deakin looks for sympathy as he seeks to walk away from his obligations. His home is in foreclosure, NOT because of the economy; BUT due to his irresponsible borrowing!
One thing is for certain; Jim understands and shares the Democrats’ HUGE appetite for debt! Clearly he borrows and spends money like, well like “like a drunken sailor”; or rather “like a drunken Congress” to coin a phrase! IS ANYONE beginning to question Jim Deakin’s claims of being conservative?
This begs the question; will Jim Deakin add insult to injury and avail himself of Obama’s government programs to get “Free Money” with subsidized interest and a lower monthly payments, defer part of the principle balance, partial loan forgiveness, or some other taxpayer subsidy? Is this what Deakin means when he calls himself an “individualist”? Is THIS why Jim let his mortgage get so far behind in the first place? Does the term “Huckster” come to mind? ‘Inquiring minds’ want to know.