Democrat Congresswoman Facing Foreclosure

May 26th, 2008 | Tags: Foreclosure Notice

Foreclosures have spared none – today in all likelihood, it is the turn of Democrat Congresswoman to face foreclosure. The fate of Rep. Laura Richardson’s house is hanging as the foreclosure bills pass through Congress. She bought a two-storey house in Sacramento, California, in January 2007 just a few months after winning a seat in the state Assembly for $535,500.

But things started getting sour. Soon after the purchase, bill collectors started knocking. The utility department of the city claimed a lien on the unit for unpaid dues. In December her lender, Washington Mutual sent a default notice claiming that she owed them $18,356 as mortgage dues. In March 2008 her dues to the lender inclusive of all charges increased to $578,384. Her house was sold at a trustee sale auction to Red Rock Mortgage for $388,000. But as yet name changes have not been effected in the assessor’s office.

At that point of time she had moved on from the Legislature to become a member of the Long Beach City Council. From there she filled a vacant congressional position to occupy a seat in Washington. She claimed that her financial woes were related to her frequent changes in job assignments.

The sale was officially recorded last Monday but Richardson claims that the house was not foreclosed upon and had not been seized. She said that a modification had been worked out with her lender, which she intends to fulfill. Richardson’s staff explained that the mortgage on the property had been sold but not the unit itself. Washington Mutual was not available for comments. Richardson said that the foreclosure auction proceeding taken against here were improper and contradicted the written agreement she had made with her lender. She hit back at rumours that she had not paid her dues on the mortgage. She also strong reiterated that she was not getting any special terms because of her position as congresswoman.

The lock box of a real estate agent hung from the door of this vintage house dating back to 1926. The county records confirmed that Richardson was delinquent as regards $8,950 in property taxes.

Congressional records show that Richardson did not cast her vote on 8th May for three bills dealing with foreclosure prevention, as she was not present in Washington. She had to attend her father’s funeral. Richardson stated, “I understand that these homeownership issues are a reflection of what many Americans are going through as they fight to keep their homes and to remain financially stable.”