LITTLE ROCK — Lt. Gov. Mark Darr knew he was behind on his house payments, he said Friday, but he didn’t know the extent of what he owed.
On Wednesday, Signature Bank of Arkansas filed a lawsuit in Benton County Circuit Court to foreclose on the two-story, 3,119-square-foot house Darr and his wife, Kimberly Anne Darr, own at 4031 Pasofino Loop in Springdale.
The bank claims that the Darrs have missed four monthly payments on two separate loans taken out on May 19, 2008, the day they bought the house.
Payments on the two loans amounted to $1,849 per month, according to promissory notes from Signature Bank, which were included as exhibits with the lawsuit.
The total amount the couple owed as of Wednesday including outstanding principal, accrued interest, fees and expenses on both loans was $285,845, according to the bank. The original amount borrowed was $299,700.
“Kim and I are certainly not wealthy individuals,” Darr said in a prepared statement Friday. “Elected officials feel the hardships of this economy as well, and over the past two years we have certainly felt it. I was aware I was behind, but was not aware of the extent. I am meeting with the lending institution [Friday] and hope to have this matter properly resolved.”
As lieutenant governor, Darr earns $42,219 a year in what is considered a part-time job. Darr, a Republican, was elected to a four-year term as lieutenant governor in November 2010 and took office the next January.
Darr is also a licensed insurance agent. He is a former co-owner of Mad Pizza Co. in Rogers, having sold his interest in the restaurant, said Sarah Beth Lowe, the lieutenant governor’s spokesman. The website markdarr.com indicates he is still an owner of the business.
Lowe said Darr was unavailable for further comment Friday.
Late Thursday afternoon, Darr said he was unaware of the lawsuit until informed of it by a reporter.
When asked Thursday if he had missed four mortgage payments on the house, Darr said, “That’s inaccurate. I guess I need to call them.” Then, when asked if he had missed any mortgage payments, Darr said, “No.”
On Friday, Darr sent a separate statement to a blog saying he hadn’t denied being behind on “any payments.”
Darr told the blog, Talk-Business.net, that he was behind one payment on the house because he had to buy a new air conditioner for a tenant who was living there. The house is in a small part of Springdale that is in Benton County.
Darr told TalkBusiness. net that Signature Bank hadn’t contacted him about the loan matter, so he called the bank Friday.
“We have fixed the issue and hopefully it will be resolved by the end of business today or at the latest Monday,” Darr said in the statement to the blog.
Lowe conf irmed that the statement published at TalkBusiness.net was from Darr. Lowe declined to send the same statement to the
Arkansas Democrat-Gazette
and said questions about the lawsuit should be directed to Darr, who didn’t respond to e-mails and a telephone call.
Niki Cung of Kutak Rock LLP, the law firm that filed the lawsuit on behalf of the bank, said Friday that she couldn’t comment on pending litigation.
According to property records, the house and 0.24-acre lot was appraised last year for $275,800.
Monthly payments were missed in June, July, August and September on the larger loan, which was initially $266,400, according to the lawsuit. Monthly payments were missed in May, June, July and August on the smaller loan, which was initially $33,300, the suit states.
In the event of default on the loans, the bank can ask for all principal and other amounts owed to be paid immediately, the suit states.
“The property should be sold by foreclosure sale as provided by law to satisfy borrowers’ obligations to Signature Bank under the notes and loan documents as set forth above,” according to the lawsuit.
The Darrs are scheduled to participate today in the Alzheimer’s Association Walk to End Alzheimer’s at Arvest Ballpark in Springdale, according to a news release.
Front Section, Pages 1 on 09/22/2012