Thursday, May 22, 2008

More on the Foreclosed Congresswoman

As mentioned in the comments yesterday Congresswoman Laura Richardson denied foreclosure reports stating "the residential property in Sacramento California is not in foreclosure and has NOT been seized by the bank." Hmmm, perhaps she has a different definition of foreclosure given the latest reports.
According to the WSJ:
The Sacramento home of Rep. Laura Richardson was sold in a public auction two weeks ago for $388,000. The Southern California Democrat bought the house for $535,000 with no money down in January 2007 and owed nearly $575,000 to Washington Mutual when the mortgage was sold earlier this month at a significant loss to Red Rock Mortgage Inc.

Additional details from a recent L.A. Land post from the L.A. Times:
They took a beating," James York, the Sacramento real estate broker who said he bought Richardson's house at a foreclosure auction, told the Daily Breeze.

The Daily Breeze report is based on public documents the newspaper published on its website, and an interview with York. It is at odds with Richardson's statement yesterday, in which the Long Beach Democrat said she had worked out a loan modification with her lender, and would "fulfill all financial obligations" on the property.

The Daily Breeze: "Rep. Laura Richardson lost her Sacramento home in a foreclosure auction two weeks ago, and left behind nearly $9,000 in unpaid property taxes. Richardson, D-Long Beach, appears to have made only a few payments on the house, which she bought in January 2007 for $535,000."

The newspaper's report -- that the house was foreclosed and an auction took place -- appears to conflict with Richardson's statement that the house "is not in foreclosure." (see the entire statement at the bottom of this post). Richardson's office has not responded to a request from L.A. Land for additional information about her mortgage and loan modification. The Daily Breeze reports she declined to be interviewed about the controversy.

The newspaper's report also calls into question Richardson's statement that she had worked out a loan modification with her lender and would fulfill all financial obligations related to the property. The Daily Breeze reports that the house sold for only $388,000, far below the $574,000 that Richardson owed on the property. Further, the Daily Breeze reports that the new owner, York, "assumed responsibility for Richardson's unpaid property tax bill of $8,950.79."

"Tell Laura I'd be happy to have her pay my property tax," he told the newspaper.

Richardson: Delinquent on $8,950 in taxes

Notice of Trustee's Sale

One of Richardson's first votes upon arriving in Congress last fall was on the Mortgage Forgiveness Debt Relief Act of 2007. The bill helped homeowners by preventing the federal government from charging income tax on debt forgiven in a foreclosure, such as the $200,000 forgiven in Richardson's foreclosure.
Joining 385 of her colleagues, Richardson voted aye.

I just don't get it. Why would she lie about something that could be so easily verified? Will she next say that she didn't realize her home was sold in a public auction two weeks ago? I guess we'll find out...

(Disabled due to annoying AARP commercials)


Anonymous said...

Let me be murst to say that she is shameless and worthless and will fit in nicely on crapitol hill.

Akubi said...

As this commenter noted Richardson "technically" wasn't lying:

1) House is not presently in foreclosure. Someone bought it at auction.
2) House never went to bank. Someone bought it at auction.

3) if a "loan modification" == jingle mail, then she has been completely truthful.

Really, absolutely horrid. She could have been in the spotlight if she were forthcoming...

But, she is probably trying to hide other issues... oops... welcome to the bad spotlight.

Posted by: david Valentine | May 22, 2008 at 02:18 PM

Anonymous said...

Did I hear right that she is up for re-election in '08? Of course the way people in your state are she'll probably win because she is the victim in all this. Bring the pain!

Anonymous said...

BTW, Okies aren't any wiser with the way they vote, just messed up in different ways. :)

Anonymous said...

Fark pic

Anonymous said...

another fark

Akubi said...

Hi Edgar,
Nice finds!
Yes, apparently she is up for re-election. People in SoCal are out to lunch so I can't speak for them.

Ogg the Caveman said...

I can just imagine if one of Casey's houses had been bought at auction. He'd probably have crowed about how he "stopped foreclosure".