PORTLAND, Ore. – Portland Mayor Sam Adams on Wednesday said that his default on mortgage payments on two homes won't affect his ability to do his job as mayor.

On Tuesday the mayor admitted he owed $10,317.35 in overdue mortgage payments and late fees for two of three North Portland homes he owns.

One of the homes facing foreclosure is the mayor’s personal residence. The second is a rental unit. A third home Adams owns, a triplex, was not in default.

Mayor Adams blamed legal bills for his financial problems and said he hoped to bring his accounts current before an October deadline. The mayor is currently under investigation by Oregon Attorney General John Kroger for lying about his relationship with an underage legislative intern.

"I've had to put funding together to make some up-front payments for legal fees and I'm behind on some payments for some mortgages," Adams told KGW Wednesday "but I'm getting caught up on those."

Recall leader questions Adams' judgment

Jasun Wurster, who is leading an effort to recall the mayor, said Adams' own financial problems called into question the mayor's fiscal credibility.

"I think it's very indicative of how he handles his personal finances, how one would handle the city's checkbook," said Wurster. "If he's unable to balance his own, can he balance the city's?"

Mayor Adams disagreed: "I will not and have not let that detract from my responsibility as mayor."

Adams 5 months overdue

Multnomah County Division of Assessment & Taxation public records indicate Adams has not made a mortgage payment for five months on either house in default. A notice of default is among the first steps in the foreclosure process.

Poll: Defaults affect your opinion?

Adams said the public had no reason to be concerned about his public money management.

He answered "no" when asked if the defaults reflected on his ability to oversee the multmillion dollar city budget.

"It's a private matter," Adams said of the defaults. "But in my job, there's little that's private."

Adams makes $118,000 a year as mayor of Portland.

The recently-approved 2009-10 city budget, managed by the mayor's office, provided a 3 percent raise for Adams, city commissioners and some non-union City of Portland employees. Adams declined the raise after initially signaling he would accept it.

A look at the mayor’s properties
-- Adams owns three North Portland homes. Two are in default.
-- Adams owes about $134,000 on one defaulted mortgage, with $1,000 monthly mortgage payments. He is behind $5,322 on this property. Its recent worth was assessed at $213,000.
-- Adams owes about $122,000 on the second defaulted mortgage; the monthly payments on this property are approximately $960. He owes about $5,000 in outstanding payments and late fees. The property’s worth is assessed at $134,000.
-- The triplex Adams owns and is current on was recently valued at $348,000.

KGW Reporters Mike Benner, Pat Dooris and Randy Neves contributed.