Buyer of Rep. Laura Richardson's house: She "walked away"

The Wall Street Journal quotes the buyer of U.S. Rep. Laura Richardson's Sacramento house as saying she walked away from the house, and can have it back if she wants it -- for the same price she paid for it in 2007.

Richardson (pictured) has denied a published report that her house went into foreclosure, saying she worked with her lender to renegotiate her mortgage.

But James York, the Sacramento broker listed on public documents as the new buyer of the home, tells the Journal's "Developments" blog the congresswoman walked away from the mortgage: 'She’s walked away from the property,' he said. 'I would be happy to resell her the home for the $535,000.'

That would represent a tidy profit for York, who reportedly bought the Richardson house at auction for $388,000.

Richardson's office has not answered questions about the Sacramento home. In a statement Wednesday, the Democrat from Long Beach said the house "is not in foreclosure" and that she had reached an agreement with her lender on a loan modification.

Photo Credit: L.A. Times

Read the entire Richardson statement by clicking below.

CONGRESSWOMAN LAURA RICHARDSON

For Immediate Release
May 21, 2008

The story published in the Capitol Weekly regarding residential property that I own in Sacramento requires clarification.

Within a 12-month period last year (2007-2008), I was a member of Long Beach City Council, the District Director for California Lt. Gov. Cruz Bustamante, a member of the California State Legislature, and, now a member of Congress. While the transitioning has impacted me personally, the residential property in Sacramento California is not in foreclosure and has NOT been seized by the bank.

I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement -- with no special provisions. I fully intend to fulfill all financial obligations of this property.

On two housing bills that were cited by the Capitol Weekly, the allegation is that I recused myself from these votes. I did not. I was absent from Washington, D.C., and my duties in the House of Representatives due to the untimely death of my father and his subsequent funeral in California.

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.

CONGRESSWOMAN LAURA RICHARDSON

For Immediate Release
May 21, 2008

The story published in the Capitol Weekly regarding residential property that I own in Sacramento requires clarification.

Within a 12-month period last year (2007-2008), I was a member of Long Beach City Council, the District Director for California Lt. Gov. Cruz Bustamante, a member of the California State Legislature, and, now a member of Congress. While the transitioning has impacted me personally, the residential property in Sacramento California is not in foreclosure and has NOT been seized by the bank.

I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement -- with no special provisions. I fully intend to fulfill all financial obligations of this property.

On two housing bills that were cited by the Capitol Weekly, the allegation is that I recused myself from these votes. I did not. I was absent from Washington, D.C., and my duties in the House of Representatives due to the untimely death of my father and his subsequent funeral in California.

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.

For Immediate Release
May 21, 2008

The story published in the Capitol Weekly regarding residential property that I own in Sacramento requires clarification.

Within a 12-month period last year (2007-2008), I was a member of Long Beach City Council, the District Director for California Lt. Gov. Cruz Bustamante, a member of the California State Legislature, and, now a member of Congress. While the transitioning has impacted me personally, the residential property in Sacramento California is not in foreclosure and has NOT been seized by the bank.

I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement -- with no special provisions. I fully intend to fulfill all financial obligations of this property.

On two housing bills that were cited by the Capitol Weekly, the allegation is that I recused myself from these votes. I did not. I was absent from Washington, D.C., and my duties in the House of Representatives due to the untimely death of my father and his subsequent funeral in California.

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.

Comments

[Jim Bob]

So Rep. Richardson is just another sleaze-bag deadbeat who welched on a home loan. So what? Californians don't care. The politicians in DC don't care.... in fact they want to reward people like Ms. Richardson with special loan deals that people who actually make payments won't get. Rep. Richardson is a democrat and so will be re-elected by her constituents. So why is your paper making a big deal out of this?

[LA]

Wow. Why would anyone lie about something that's so easily verifiable? Can't wait to hear the next installment on this story...

[Steve]

Gee what a shock a politician who lies and cannot even control her own finances. This is a core problem in Amerca when flakes like this can win a political office. If you cannot control yuor own finances how the hell do you control billions in taxes.

[gary]

yeahhhhhhhh for her...................why not beat up on foolish stock holders that have banking stocks and not knowing they were absolutly falsifying all there accounting and financial records. no way companies like CFC go from $40 to $4 in one year and the clown didnt know. let the mayham begin.

[taracy]

Oh you people need to shut up Politicians are people and things happen in their life also. So what if she did loose a house big deal just because she's a politician doesn't mean that she is invincable if I was her and they asked me questions about my OWN business I would've told them none of your damn business.

[copperpossum]

Not ONE house,not TWO houses,but THREE houses?! Aren't there any investigative journalists in California?
Guess she's of the Leona Helmsley school of 'only little people pay taxes'.
With this manner of financial doofus winning an election,small wonder CA is circling the drain.