I guess Rep. Diane Watson’s “American Housing Rescue and Foreclosure Prevention Act of 2008” and the “Neighborhood Stabilization Act of 2008,” key pieces of legislation passed by the House with bipartisan support to help Americans who are struggling with the housing and credit crises and in danger of losing their homes, was too little too late for her colleague and my former boss (Yeah, I jumped that train last year for those that think they know about who and where I be at) Rep. Laura Richardson (D-CA).
The Daily Breeze reports that Laura made only a few payments on the Sacramento house she bought in 2007, failed to pay property taxes, defaulted on the mortgage, and lost the house to foreclosure. The Daily Breeze reports that Richardson’s lender, Washington Mutual, took a loss of nearly $200,000 when it sold the house at a public auction on May 7.
“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.
And I’ll add that I am only too happy to report this story, lol. Oh, the stories I can tell, but I am saving it for the book—well the book and “Operation: Making a List and Checking it Twice,” lol.