Use access key #2 to skip to page content.

Congresswoman Laura Richardson's decision to Walk Away from the House



May 21, 2008 – Comments (7) | RELATED TICKERS: HOV , SKF , CFC

Taken from Mish Shedlock site here:

It is to incredible really. I am short of words...don't they do a credit check before they let these idiots in Congress?

Congresswoman Walks Away

Capital Weekly is telling the story of Congresswoman Laura Richardson's decision to Walk Away.

The story of the foreclosure of Long Beach Democrat Laura Richardson's Sacramento home is a tale of a real estate market gone sour. It is also an illustration of how far many candidates will go to seek elected office, even if it means quite literally mortgaging their own financial future.

While being elevated to Congress in a 2007 special election, Richardson apparently stopped making payments on her new Sacramento home, and eventually walked away from it, leaving nearly $600,000 in unpaid loans and fees.

Tax records at the Sacramento County assessor's office show that in January 2007, Richardson took out a mortgage for the entire sale price of the house -- $535,000. The mortgage amount was equal to the sale price of the home, meaning she was able to buy the house without a down payment, even though the housing market was beginning to turn.

A March 19, 2008 notice of trustee's sale indicates that the unpaid balance of Richardson's loan, which is held by Washington Mutual, is more than $578,000 –$40,000 more than the original mortgage.

The Curtis Park house is not Richardson's primary residence. She also owns a four-bedroom house in Long Beach, in her Congressional district. Real estate records show she purchased that house in 1999 for $135,000. An estimate from puts the current value of that house at $474,000."

The rest is posted on Mish's site: 

7 Comments – Post Your Own

#1) On May 21, 2008 at 11:07 PM, LordZ wrote:

You would think people who are making decisions for others would be able to make good decisions for themselves," she said. "She should have known what she could afford and not afford. In this neighborhood, you just don't do that."

While Richardson walked away from her loan, she bested Oropeza in a June special election, and moved on to Congress. As a member of Congress, Richardson has been asked to vote on legislation pertaining to the spike in foreclosures around the country.

On the biggest pieces of legislation having to do with government bailouts for people whose homes have entered foreclosure, Richardson has recused herself. She did not vote on legislation by Rep. Barney Frank, D-Mass, which would direct $2.7 billion in government funds to help an estimated 500,000 homeowners who are at risk of foreclosure.

Richardson also did not vote on a measure by Rep. Maxine Waters, D-Los Angeles, that would give local governments $15 billion to purchase, rehab and resell foreclosed properties.

While Richardson walked away from her bank loan, she has begun to pay herself back for the money she personally invested in her initial race. Records show that Richardson spent $587,000 out of her Congressional campaign committee since declaring her Congressional candidacy through March of this year. Of those expenditures, Richardson has spent $18,000 of that money to begin repaying herself for the money Richardson loaned to her campaign.

According to documents at the Sacramento County Clerk's office , Richardson first received a default notice in late 2007. By December 2007, less than a year after Richardson purchased the house, she was behind in her payments by more than $18,000.

Three months later, on March 19, a notice was filed with the county that Richardson's property would be sold at auction. According to the documents, the unpaid balance and other charges Richardson owed the bank was $587,384.

Report this comment
#2) On May 21, 2008 at 11:15 PM, LordZ wrote:

How can one loan money from one self than repay one self back from caimpaign funds....

I'm sorry but I dont think its okay for someone in office to get their by spending their own money and than taking money out of a caimpaign contribution to repay oneself for money they spent on their election ???  You should not be allowed to borrow from yourself and than take the money out of  donations.

These same idiots are in charge of allocating billions of wasted dollars in pork projects... Billions of dollars which our government borrows on and forces us to repay in zillions of parasitics taxes and more taxes.... Yet they don't see anything wrong... Because the system is cancerous and prone to corrupting even the most pure.



Report this comment
#3) On May 21, 2008 at 11:16 PM, LordZ wrote:

thats the article.... about this...

Report this comment
#4) On May 21, 2008 at 11:40 PM, makingithappen (< 20) wrote:


Well, not really.  This is America 2008.

Report this comment
#5) On May 21, 2008 at 11:47 PM, abitare (29.77) wrote:

Here is one of the Senior Members of Congress. Democrat Budget Committee Member Doesn't Know the Difference between Treasury Secretary and Federal Reserve Chairman, January 17, 2008

Marcy Kaptur Gets Real Confused:




Report this comment
#6) On May 21, 2008 at 11:56 PM, eskatonic (28.52) wrote:

mish for president 08!

Report this comment
#7) On May 22, 2008 at 12:33 AM, Tastylunch (28.67) wrote:

I'd be dissapointed if a member of congress didn't try this . Some of our best and brightest con artists are in the esteemed body. I'd hate to think I'd actually have to respect some of them. That would make me concerned about the temperature in H-E double toothpicks.

Report this comment

Featured Broker Partners