AP on Rep. Richardson: Delinquent on $8,950 in taxes

The Associated Press tonight reports more details on the tangled personal finances of Rep. Laura Richardson and the Sacramento home she purchased in 2007. Richardson earlier today denied a published report that she had lost the home to foreclosure.

Highlights of the AP report: In addition to having trouble paying her mortgage, Richardson, a Democrat from Long Beach, fell behind on utility payments and taxes: "Records on file at the Sacramento County Tax Collector's Office also show Richardson is delinquent in paying $8,950 in property taxes," the AP reported.

The AP also reports that, according to public records, Richardson's house was in fact sold at a public auction: "The county records show the property was sold to a company called Red Rock Mortgage Inc. of Sacramento for $388,000, although no listing could be found for the company. That sale was officially recorded on Monday, according to the records. ... The Sacramento County Assessor's Office continues to list Richardson as the owner, even though the May 19 document on file at the Recorder's Office states that Red Rock Mortgage bought the home at public auction."

Richardson, in a statement tonight, said the house "is not in foreclosure and has not been seized by the bank." She further said she had worked with her lender on a loan modification, but did not name the lender.

Her office has not responded to requests from L.A. Land for details about the original mortgage and the terms of the loan modification.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com

Comments

[MyLessThanPrimeBeef]

I wonder what is the status of Bernanke's house near or in DC, which he apparently bought only very recently.

[Laker]

I think she is not aware that the NTS auction has occurred. The fact that public records or tax record still show her as the owner is because sometimes it takes time for the ownership to show the transfered name. The fact that she did not pay her property taxes is very typical to "loan owners" that are about to lose their house to foreclosure. I believe, that the property taxes past due will simply put a lien on the property and thus the bank will pay it if it will want to sell it....
So it is pure bank loss.
The funny part here is that the bank took it back for $388,000...Now why do you wonder she let this one go, Who is stupid enough to keep a depreciating asset (liability) that cost you $583,000 or something, and now worth maybe $388,000.....It is probably worth less than that, but that number simply was put so to match the write downs of that specific bank allowances for the quarter. Most likely the bank will put it for sale for $299,000 or similar...
So i think we need to leave her alone, she did the smart thing, now let her work on important legislations in the house....of whores (sorry representatives).

[Pasadena]

In the words of the Grandmaster at CW:

"Disgusting!"

[Brian]

A more complete account:

http://www.presstelegram.com/ci_9341463

[M. Petersen]

If someone is unable to manage their own finances then perhaps they should NOT be making decisions that affect the taxpayers lives.

[Steve]

As I have said many tiimes. all politicians no matter race or gender are liars, whores and thieves, it is that simple and there are no exceptions.

[kosher krab]

"the house is not in foreclosure and has not been seized by the bank" is politician speak for "the house is in foreclosure and is being seized by the bank". Bet she's scramblin' now.

[tealeaf]

Is there really a concern about state tax revenues?

Even with gas prices where they are?

Talk about windfall profits: California must be making out big time on the latter.

[Brad]

Doing the Smart Thing??? How exactly is not paying your taxes and not even knowing that status of the foreclosure proceedings on your property Smart? No wonder CA is in such a fiscal mess.

Yet another pol leading by example, I see. Perhaps Barney Frank & Co. can lend a hand?

[Laker]

Thanks Brian!
"....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 think that she was not allowed to vote for that legislation of eliminating the tax on forgiven debt. She essentially saved herself about $60,000 assuming 30% tax on the $200,000 forgiven debt. From the place I'm coming from, it is called stealing in day light.

Another interesting point here is that Red Rock mortgage is just a 3rd party RE investment company that bought the house from the bank...I guess they think they can flip the house for profit...good luck.

[Larry Jacobson]

SO WHAT!
We all have problems and all you people are printing is this nonsense about Republicans vs Democrats. Why not rally the troops and strap on some balls and boycott the oil companies about these OUTRAGEOUS GAS PRICES?
No one cares. The fact is that gas prices are artifitially high and it is designed by the oil companies. The are getting us immune and because we don't riot there is no incentive for them to back down. THIS WOULD NEVER HAPPEN IN ANY OTHER COUNTRY. They would burn gas stations to the ground as well as Big oil HQ's.

[seattlesnoop]

Larry J:
Please switch to decaf.

[Rob]

"If someone is unable to manage their own finances then perhaps they should NOT be making decisions that affect the taxpayers lives." M. Wrote.

Probably the best synopsis out here...

[Keith]

Guys, I am a resident of Long Beach in the 37th district, Laura Richardson is my rep. I also used to live in the 6th district in Long Beach and she was my council person. So I feel comfortable in saying that Laura Richardson must be replaced. I have found her to be a opportunist and someone who does not sincerely represent the 37th district.

It is time that we hold our representatives accountable for their actions!

[are they crazy]

Be careful what you wish for. When you want man of the street average citizens for your representative, then you get the same folks that drive on the roads or buy houses at inflated prices with exotic loans. People don't want "insiders" as their representatives - why bother having someone who has experience or understands the dynamics of political office when you can have someone off the street. You get what you pay for.

[Lor]

Perhaps the Mortgage Forgiveness Debt Relief Act of 2007 should have only applied to primary residences. People who default on 2nd homes should have to pay income tax on 2nd home debt forgiveness.

[Pasadena]

Geez.... Calm down Larry! People in other countries use public transportation and ride bikes and don't drive converted military assault vehicles to pick up groceries and take the kids to a soccer game. Riots in most places occur because of shortage of food or government sanctioned oppression. Don't think we are near that here. You really want to hurt the oil companies - use your God given right to stop driving.

[RZ]

She needs to pay that property tax ASAP or resign from Congress right away. It is completely unacceptable for an elected official to be a tax cheat.

[BJ]

You need to look at the whole picture Larry; oil companies make approx 3% profit which is an average return for most American businesses large and small.

They are public corporations whose stock is held by tens of millions of investors and institutions. So exactly who would "profit" taxes hurt? Millions of ordinary investors and since all corporations pass on taxes as an overhead cost: the driving public would take it in the shorts again.

The real culprit in the cost of gas (beyond the obvious OPEC price fixing of crude) is onerous Fed, State & local taxes per gal. Prices would immediately decline significantly if govt taxes were suspended.

State govts such as CA require many different blends which also increases refinery and transportation cost. Ironically, none have proved to be especially effective in the long term and some such as MTBE will cost taxpayers billions to cleanup ground water.

http://www.epa.gov/safewater/contaminants/
unregulated/mtbe.htm

So you might want to do a little research as to who is really taking the lion's share of the price per gal at the pump and whom is to blame for the deplorable state of affairs, since it is the govt who makes the policy that for the past 40 years has put us on this path. Better CAFE numbers were delayed by vote dependent Pols as a sop to the UAW. To no avail as the jobs were still lost and we're 20 years behind where we should be in mandated fuel efficiency ratings.

Plus, it's not like we haven't had a warning; one only had to look at the escalating price of gas in Europe since the late 70's.

[affordableHouse]

With Mortgage Forgiveness Debt Relief Act of 2007 and Ms Richardson
For an average American, I'll never be able to afford a house.
We will soon see the Gambling Loss Forgiveness Debt Relief 2100.
Las Vegas is calling!!!!!