Update: Congresswoman denies foreclosure report

Update: California Rep. Laura Richardson today denied a published report that her $535,000 Sacramento home had slipped into foreclosure, saying she had renegotiated her loan to keep the home.

The house "... is not in foreclosure and has NOT been seized by the bank," Richardson, a Democrat from Long Beach, said in a statement. "I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement -- with no special provisions." (Richardson's entire statement is at the bottom of this article).

Earlier, Capitol Weekly reported that Richardson walked away from the mortgage on her $535,000 Sacramento home, letting the house slip into foreclosure and disrepair less than two years after she bought it with no money down.

"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," the publication reported.

Richardson declined to comment for the Capitol Weekly story. Her office issued a written statement Wednesday afternoon.

Capitol Weekly, citing tax records at the Sacramento County assessor's office, reports "... 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."

In addition to 100% financing on the home itself, the report quotes the woman who sold the house to Richardson as saying she also gave Richardson $15,000 toward closing costs.

The weekly reports that Richardson's residence quickly became an eyesore, angering neighbors. The report says she recused herself on two key House votes on government efforts to address the foreclosure crisis.

Richardson's statement, however, said she did not recuse herself from those votes, and was instead absent from the House.

Click below to read the entire Richardson statement.

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.

Comments

[Susan I]

Boy, I bet we won't be hearing about his one in the MSM news. First, she is a democrat, second, she is a congresswoman, third, she is black, and fourth, because it would reiterate the fact that some people are losing their homes because they just stop paying, and that it their fault! Not the governments!!!

I am so sick of hearing about the "mortgage crisis" when most are people that just want a bail out, and others are the ones who got caught up in the "flip this house" craze. These people thought they could flip their house and make some quick money. Why should the government bail them out?!?!?!

[Westsider]

It is absolutely disgusting that this "representative" has shafted the banks and contributed to the blight of a neighborhood. Hopefully her political adversaries are taking note.

[Tax Payers, pay the bill]

She is learning quick. When you are in Congress, you don't pay for anything.

[Cal]

We are going to find out that GWB pulled all the equity out of the White House with a subprime refi from Countrywide and will be walkig away in January. Just wait, it's coming.

[RonB]

And to think that a week or so ago, there was a report stating that it is urban lore that people are walking away from their home loans.

[Margaret]

Just the kind of personal responsibility and fiscal prudence we need in Sacramento!

[Freddy]

What a scammer. Politicians are all criminals at heart especially Democrats.

[JLF]

No one wishes such a problem on anyone else and the lady has my sympathy - to a point. But the question remains as how her consituants can trust their representtive to use good judgement and common sense in representing them if she makes such a bad call in her private life. Just because you have a high income (relatively speaking) as a congresswoman does not mean you don't have to manage you rmoney and make good choices. Do you suppose she wishes she was still renting?

[john]

she should be newly un elected

[Windfall]

Your fine, upstanding citizen legislator used this transaction to steal $15,000 from the seller.

But it's O.K.

She's not a Republican.

[Chris]

I feel I speak for all totally ignorant people when I say I am shocked that a congressperson could do something unethical!

[Tombstone Realty]

Well on the one hand, it was kind of her to recuse herself from housing related votes.

But I guess the next question is did she buy another property (unless she's in an apartment now), before letting the one in Sacramento foreclose?

Could this be grounds for some kind of fraud case?

[Joe]

She's a deadbeat she should be removed from her seat in congress...a typical Democrat...thinks it's beneath her to pay her bills...stick it to some other poor shlub...

[Corruption]

A corrupt demoncat? Nooooo, I don't believe you for a second. Ooops, back to reality now, sorry I was yawning. A corrupt idiot democrat trying to get into some heavy graft before she was established in Washington. Unfortunately, all of the people that voted for her probably encourage this behavior (look at any other indicted dems and continued support by the electorate).

[Donald]

Why am I not surprised that she is a democrat?

[Ron]

Wow, there's some fiscal responsibility for you. She obviously is a democrat.

[Danno]

Gee, most people wait till they get to congress before becoming worthless.

[F. Meglin]

Don't surprise me none, most dems in congress are corrupt as... their destiny.

[Timmy J]

Typical Democrat. Do as I say, not as I do. But somehow - no doubt - it is all GWB's fault.

[Typical]

Hmmmm.... no mention of her party affiliation. It must mean she's a democrat. They never forget to put the "R" in front of a republican when they screw up.

[SRW]

The gov't is the cause for this housing mess, when they forced lenders to accept people with out any credit. The wolves are guarding the hen house and in this case one of them is taking a 600000 ride. She should be kicked out.

[Dave Xeriatis]

She is a typical political hack. and does not deserve to have a seat in Congress. We have enough problems without having deadbeats as as our lawmakers. Whatta travesty!

[rck]

Why blame her? A $535,000 house with NO DOWN PAYMENT, and then no payments for two years... what a deal! As soon as Obama gets elected he and the Democratic controlled Congress will enact legislation to see to it that us working stiffs will bail her, and those like her, out. Free homes for all of those on the dole, or in Congress. New social programs for the oppressed in this nation. A windfall tax on the oil companies, and who do you suppose will pay for that tax???? Could it be those of us buying gas to get to work??? I have heard that Pelosi and company is seeking a windfall tax on OUR retirement program profits, that will help EQUALIZE incomes and improve the standard of living for illegal immigrants and other less fortunate minorities?

OH YES... CHANGE IS COMING! POCKET CHANGE FOR THOSE THAT WORK AND PAY THE BILLS! THE TIME FOR ANOTHER TEA PARTY IS UPON US!!

[David Reynolds]

How did she come to owe 40,000 dollars more than the original loan? Either way, sounds like she made the right move. Always a plus when we got a representative with good economic since.

[Wil NC USA]

This is why our country is going to turn into a cesspool. THESE are our elected leaders behaving this way?

I am sure some dimwhit nutball will try to "excuse" her behavior or blame it on someone else. SHe is a crook. PERIOD.

[james]

Interesting...

take it from the man!

if she is stupid and didn't know what she was doing, should not be in congress
if she is smart and was going for the quick flip, and when it went sideways, she walked... then she should pay up.

how about garnishing her wages to pay off mortgage??

[THIMMESCH]

It's Bush's fault!!!

Am I first?

[James]

So are you saying that there is another swindling crook in congress with no ethics, no sense of responsibility, and no scruples? She is just one of many swindling crooks in congress.

[Mike Hunt]

It does not matter what she does in her personal life. She is a Democrat. Therefore she is excused from all normal cultural taboos.

[Dave]

Why is it that I have to read half a story to find out that this woman is a Democrat? Had she have been Republican, the headline would have been: Report: Republican California Congresswoman walked away from $578K mortgage. Why is this always the case?

[Grace]

Democrats : no personal responsibility - no accountability. Walk away and let the government take care of it.

It's how they live. It's how they govern. Here's your proof.

[John Waynesworld]

Maybe she needed the money for food.

[MOJO3]

How tragically sad. And to think...she purchased such an expensive house with absolutely NO MONEY DOWN! Pretell...what in the world was she thinking about?

To add insult to injury...the article also stated the maintenance on her property wasn't up to par. Speaks volumes about this lady--a congresswoman at that! Geeeeeeeeeeeeeeeeeeeze! :(

[Patrick C.]

She is just another Democrat looking for a free ride from honest taxpayers and homeowners.

[Mark Smith]

Unless she made a lot more than a Congressman, she almost certainly used a stated income or no-doc loan. I would be extremely interested to see her closing docs and find out if this elected representative committed mortgage fraud by overstating her income.

[Wow]

And these morons run the country...

[average joe]

another do as i say not as i do liberal... yup got to love them elitists

[Mark]

Being a Democrat of course she isn't held to the same standards as any other normal, responsible American.
Since the current Democrat congress has been in charge and their approval numbers have reached a record low, things have only seemed to get worse.
How do we respond? by wanting to elect more of the same.
What is wrong with people???

[Lou Voren]

I am not at all surprised. Congress is inherently irresponsible. Why are we not surprised with this?

I am sure that this Congresswoman also supports government bail-outs for people who were too stupid to read the loan agreements before they entered into the transaction.

[Jimmy]

It just proves you don't have to be too smart or too honest to be elected in California. This cheat probably got a neg am loan because she couldn't afford the mortgage otherwise. This person deserves no sympathy. She had nothing to lose except whatever good name she had, but, hey, who cares - this is California - home of the fruits and nuts.

[Paul]

She must be dumb, did get enough payola from lobbyists to pay off the mortgage. She should have borrowed some $$$ from that other Dem that had all cash stashed in his freezer!

[Russ]

George Bush Did it! George Bush did it! It's all Bush's fault. Sheesh, where has personal responsibility gone to in this Country?

[Stan_DC]

I'm impressed, they mentioned she was a democrat in the third paragraph! Fortunately someone so inept with finances as she is not playing with our tax dollars. Oh wait, OH OH OH S***, she IS playing with our money! Wonder how the dems are going to spin this one!

[Scott]

So... I forget, what does $535,000.00 buy you in Sacramento, California?

What she in a dive before her "rise" to congress and given the option, she "moved up" so something government provided as part of her "position"?

There are so many other questions this story does NOT ask... I mean, where is she NOW? I know I couldn't walk away from my house and just go on living the good life while ducking my house payments.

What's the REST of the story?

Scammer? Sounds like it. Cheater? Almost certainly. Unethical? She's a Politician now, it's expected.

Candidate for office removal? Without a doubt !!!

S

[Eagle1]

Let us all hear how this is Bush's fault. This is a typical situation where idividuals are not willing to accept responsibility for their poor choices in live and expect someone else to fit the bill. Liberal Democrats are the reason for the current problems. Get refine or drill for oil in our own back yard. Keep depending on these liberals while they rule on high and we get the scraps. Can anyone spell USSR. That's where we are going.

[Dave G]

You people are very stupid. Don't you know that she is an elected official and she has special privileges that we average citizens could never understand?

She and her superior colleagues are far superior the rest of us and she is far too busy worrying about the NFL tape scandal or whether Karl Rove sent telepathic messages to spy on the Governor of Alabama.

Of course she should not be required to pay her mortgage. She's in Congress.

How dare you idiots question her.

You people are just down right DUM. D-U-M! DUM!

[Doug]

WaMu should do a judicial foreclosure. Would cost some legal fees but they would surely win and then could collect any deficient balance from the Honorable Congresswoman.

[Schratboy]

What! A bum legislator? 99% of these elected so-called leaders are reprobates and thugs.

[Darren]

Yes, of course she is a Democrat. Everyone knows Republicans have never done anything sleazy or unethical !!!

Geeez, give it a rest, people. Doesn't it ever get at all tiring to you to cherrypick every piece of news that supports your narrow view of the world while discounting or ignoring everything that does not?

[Gilc]

I'm sure it's President Bush's fault. It's gotta be, it cannot possibly be her fault. Nope. I'm sure the evil genius Bush had something to do with it. Yes sir. He's a crafty one he is.

[Mmm... donuts]

All these little childish comments that just jump immediately to partisan politics are really unfortunate and damaging. They A) increase hate, B) deteriorate the civility of discourse, and C) do not contribute in a constructive way to the discourse on this housing blog.

[Fred Epson]

Great qualifications. Stiff the taxpayer and then have them elect you to office. Guess Long Beach should have done its homework before pulling the lever...... or maybe it was hanging chad ........ use the old stand by Bush did it.

The next few years are going to be very painful. Hang on to your wallet its already starting.

[joe observer]

I find it interesting that the story held off till paragraph 3 that she was a democrat. Had she been a republican, that would have been mentioned in paragraph 1, if not the headline.

[Jason C]

She is a democrat is anyone really shocked? The only thing shocking is that it is being reported at all!! I am so glad this shining example of fiscal responsibility will be voting on how OUR tax money is spent. I will say just par for the course for any politician. How many time have the founders rolled over in their graves by now? Can we get a government redo?

[Glubber]

What do you expect? And this will promptly be BURIED by the good little people at the LA Times, who are proud members of the Joseph Goebbels-like propaganda wing of the Democrat party.

I fell out of my floor when Lanny Davis admitted on FoxNews that the media is very liberal elite and biased. That he now understands how republicans felt all those years.

More people need to use the phrase, Joseph Goebbels-like propaganda wing of the Democrat party to describe our media. Shame them.

I am not calling them nazis, but that they use the same mantra, which is if you tell a lie often enought, people will believe it.

[Jaybee]

The only reason she was elected and sent to Washington was that every one wanted her out of Sacramento.

[ReginaldL]

A sterling paragon of our ruling class! Way to lead by example!

C'mon people, take a moment out of your busy day working and paying for your own homes and help bail her out.

[henry]

What, don't deadbeats need representation too?

[Timothy Lee]

There are HOW many people living in California and THIS IS THE BEST YOU COULD COME UP WITH!!!! This dumb broad now has a say in MY life? WTF!!!! Hey Dems, stop wasting yours & our time blaming everyone else but yourselves for the problems out there...look at your OWN!

[Kurt]

Mark said,

"Being a Democrat of course she isn't held to the same standards as any other normal, responsible American.
Since the current Democrat congress has been in charge and their approval numbers have reached a record low, things have only seemed to get worse.
How do we respond? by wanting to elect more of the same.
What is wrong with people???"

I'll tell you what's wrong with people. Who else are they going to vote for? McCain is no alternative to Obama or Clinton. I have a choice to vote for a Democrat, another Democrat or yet another Democrat with an "R" after his name. There isn't a penny's worth of difference between them. Until the Republican Party dicides to come back to conservatism or there is another party that takes its palce, then there is nothing to elect but "more of the same". I'm going to have to vote for my dad this election. He's not running, but he'd be a damned sight better than anyone who is.

[Section 108]

YOU GUYS ARE MISSING ANOTHER POINT

Because California is a "walk away" from the surrendered home state, RICHARDSON BEARS NO PERSONAL LIABILITY.

When you have no personal liability, you trigger no "income via the cancellation of debt under IRC section 108"

So, not only does Wash Mutual get to give her a $40,000 "in her pocket bribe", she doesn't even have to pay tax on the "relief of the debt obligation to repay".

Thus the $40,000 bribe was tax-free. If it had been a credit card debt and Wash Mutual had relieved the personal debt, she would have paid taxes on the additional $40,000 of income via section 108.

[Russ]

Why would a lending institution loan that much money to anyone without proof of a sufficient income to make the payments and a past history of paying off loans?

Unless there are just a lot of stupid people involved it appears that some sort of fraud has taken place. It wasn't long ago when everyone was jumping for joy over the housing market while people were buying houses far beyond their means. The chickens have come home to roost and the democraps say it is all George Bush's fault.

Bush's only problem has been being not able to stop the democrap onslaught of screwing him up at every chance and then blaming Bush for the results.

Congresses ratings are lower than Bush's and it shows a disgust with government in general. The lady congress woman, and I use the term "lady" loosely, has a typical democrap philosophy of how to conduct ones self in the public arena. She should be jailed to protect the rest of us from stupid thinking.

[DemsHosedUs]

I'm sure she will find a way to become a 'victim' in all this and blame Big Banking. Standard procedure for any Democrat.

[BOB]

YOU GET THE GOVERNMENT YOU DESERVE!!!!!

[orcadrvr]

Remember the House Post Office scandal a few years ago? Congresspeople bouncing checks for years on end, and I can't think of anyone who lost their seat because of it.
This little episode will be no different. She is probably in a "safe" district, where the incumbent always wins, just like most house districts.
"Change"? Forget it.

[Rich Martin]

Sorry to burst your pride ladies & gentlemen, but (the lender) Washington Mutual set the lending guidelines and approved of the appraisal used to justify the loan. Congresswoman Laura Richardson is complying with the terms of her loan AND the consequences of not making the payments. The only thing she is guilty of is a lack of integrity. What else do you expect from a Democrat?

[Tien Kou]

It is obvious that we need to feed the Tree of Liberty.

[PHCDR Herm]

AMEN Darren!

Some people don't understand nuiance or how not to stereotype. It's never totally one party or the other; unfortunately the far left and the far right don't get it.

[Steve]

Why did she stop paying her mortgage? It appears that she is employed. Just because the value of the house fell, she feels that she can walk away and leave the loss with the bank? I hope the financial institutions that holds her mortgage sues her and garnishes her wages for the deficiency after they sell it. These are the people that are perpetuating this housing problem. If everyone just lived up to their contractual obligations, things would improve quickly.

Everyone should find her email at the capitol and let her know what they think of her.

[tealeaf]

from one free-market conservative to the regular LA land bunch:

I would like to apologize for the sh*tstorm from the drudge linkage.

as popeye would say, "this is embarras-king."

[TheLongAndWindedRoad]

1. It is true if she was a Republicain it would have been blasted everywhere. Dems do get special treatment so get over it.
2. It is true that lendors had no standards and should eat this pup and take the loss
3. It is true that the stockholders of the lenders should eat the losses.
4. It is true if you walk away from a loan when you clearly still have the same income that you had before you are a smuck.
5. As we scream victim and want help we sink farther as a nation.

[rws]

What an Idiot/loser/thief...all of the above!! She should be recalled at the least!!! And prosecuted if possible!!

[richardhyoung@gmail.com]

Hey, c'mon. This is what Democraps do. Game the system, a head fake here, an elbow there. Gimmee, gimmee, gimmee. What sleaze. But I'll bet her constituents approve of her.

[Garrett]

I'm sure she has a perfectly good excuse for what is happening....

She thought one of her primary donors was going to pick up the tab?

She thought that by being elected she is above the law?

She thought that by stopping payments the bank would just forget?

She thought if other people are getting away with it why can't she?

Utterly disgusting.

[the bitter renter]

"In June 2006, Laura Richardson won the heavily contested primary election and ultimately went on to win the November general election to the California State Assembly in the 55th District. Her Assembly District includes the cities of Long Beach, Carson, Harbor City, Lakewood, Wilmington and unincorporated areas of Los Angeles."

Way to set a good example for your constituents.

[mike m]

typical loser polititian

[Mike from NYC]

Seems like a lot of you Republicans got your panties in a bunch over this. It appears many of you so-called conservative Republicans are eager to paint Democrats with one big brush as being all the same. The same can be said for you Republicans. I'm sure a lot of fine Republicans have done the same if not worse.

[cs]

The irony here is that she has such disregard for us taxpayers who pay her salary that she can so callously walk away and dump her personal bills on us too.Freeloader, pay your own way; the rest of us have to work ourselves to the bone to pay for our own families. Now you want us to bear your responsibilities too? Low life.

[Paul_inSB]

Jeez! Pete, do we know which right wing blog linked this article?

[Stevend]

As a Republican, I don't care about this one. People make mistakes and now this lady's credit is ruined (as it should be). It is silly that the people elected someone that is so poor with their personal finances, but that's the people's fault, not hers.

If she votes for some sort of law exempting her from her stupidity, however, than that would be ridiculous.

[Laz]

Leave her alone, this was obviously caused by GLOBAL WARMING. And yes, you who say that it is GWB's fault, it is! He is the cause of CLIMATE CHANGE, HURRICANES, TZUNAMMIS etc.

[digitalTexan]

After reading a few hundred comments the pattern was clear. We are fed up with a congress that looks more like a special olympics. Can we please pull together and elect some canidates that are neither republican or democrat, just smart and honest? Please!

[GT]

I blame Bush.

He gets blamed for everything else in the world. Why not this. I'm sure Richardson does for making it so easy for her to defraud the people who trusted her.

.

[Vic Stone]

Something doesn't smell right. She makes around $150K as a US Congressman. She could easily afford a $600K mortgage. I'll bet she's up to her neck in credit card and automobile debt.

The DCCC sure did a poor job of vetting this gal.

[Dan, Reading/USA]

Did anyone mention she is a deadbeat, Democrat? You can bet she is blaming the Banks, Appraisers, Loan Officer's, CEO's, and PRESIDENT BUSH for her financial troubles. Clean house and throw out ALL the incumbents. Especially this irresponsible Democrat. Did I mention that she is a Democrat.

[doug]

Congressional salary per month: $14,108 ($169,300 per year)
Approx Monthly payment on $600,000 mortgage (assume 30yr fix @ 6%): $3600 per month ($43,000 per year)
Lack of any dignity, morals, common sense, and personal responsibility: PRICELESS

[angel]

The Government should bail this one out and that one out. What a joke! Do people know where their tax dollars go and who the government is? I think everone thinks that there is just this big pot of money in Washington D.C. where all this bail out money comes out of. No one takes responsibility for their actions and feels that no matter what kind of mess they get into, the government will get them out of it. Well, guess what? The taxpayers are the government and everytime that the governement bails out anyone, the taxpayer gets a tax increase down the road to pay for the mess. This congresswomen does not belong holding the position that she has. Why should the taxpayers (I mean government) help someone who walks away from responsibility and in essence is a thief.

[Jack Smythe]

Sure she's to blame. But so is the bank. The bank should not have given her such a sub-prime loan with no money down.

The bank got greedy. She got greedy. Everyone loses except perhaps the next person to pick up that property for a good price.

I can't feel sorry for her or the bank. And the taxpayers or government should not bailout anyone.

[I-live-2-ride]

Typical Democrat. They're more than happy to take and spend money that they didn't earn and not worry about ever paying it back... let the tax payers take care of it right? You coniving deadbeat! And how much do you want to bet that she gets reelected? You stupid stupid Demonicrats!

[Karen]

Left wing housing groups like ACORN and LA RAZA got people into houses with 0 down and no income check. The congress gave these extremist groups money to "help low income people achieve home ownership" Now that their "clients" are declaring bankruptcy, Congress is giving these same snake oil salesmen MORE TAX MONEY. $50 million in the housing bill is going to these radicals. It is the most corrupt part of a very corrupt housing bill. Renters and honest homeowners are picking up the tab for delinquents and illegal aliens to stay in their homes.

[Clueless for Clinton]

It seems this illustrious Congresswoman stumped for Hillary Clinton in California and Ohio. What a surprise. I guess those exit polls are correct after all -- Hillary has a lock on the uneducated, uninformed and ignorant voters in the Democratic party.

Here's the article from the New York Times that ran on Feb. 28, 2008: http://www.nytimes.com/2008/02/28/us/politics/
28race.html?fta=y

[Burt Hicks]

To Tien Kou -- Excellent comment!

[Deb]

This is happening all over the US. This is not something that people can't pay, they decide not to. "You know the new thing (It's not my fault)" This woman quit paying on this house, after she took out either a second for $40,000 more or a home equity loan for $40,000 and pocketed that money. This is not a Mortage lender problem, this is a "get what I can get and stiff anyone as the government, the system owes me everything. We saw this during Katrina (No one takes responsibility for their own actions anymore. " It has to be someone elses fault" I for one am disgusted that we let people get away with this.

[Matthew Camp]

Ha! Well, they can't go after her because first mortgages are non-recourse, but still, it just shows how insane this bailout plan is. People talk about it like she is the victim of an earthquake or a tornado - she freaking DECIDED to buy the house, then DECIDED to not pay the mortgage, then DECIDED to walk away! Why in the world does she or anyone else deserve any help at all?????

[Joe Realtor]

Laws don't apply to politicians. Take a look at Eliot Spitzer (Democrat). He violated the Mann Act which was used to put many people in jail such as Chuck Berry, one of the founders of Rock-n-Roll. Like this deadbeat congressionwomen, the press provided special treatment to Spitzer by spinning the issue into a discussion about sex. "It's the Organized Crime, Stupid!". While Spitzer was supposed to be prosecuting the mafia as a U.S.Attorney and then as New York's Attorney General, we see that instead he was doing business with them. The mafia held career ending dirt on Spitzer, and were able to protect all of their vast business interests because of it. How many criminal evidence referrals did Eliot Spitzer destroy in order to protect his associates? Only a Federal Special Prosecutor could unravel the vast corruption associated with Spitzer's abuse of prosecutorial discretion in order to protect his associates' vast illicit business interests.

[Johnny valentine]

Florist walks into a barbershop and gets a haircut. "What's the damage?" he asks. "There'll be no charge this week. Community service." The next morning a dozen roses are delivered to the barber.

A publisher walks into the barbershop and gets a haircut. "What's the damge?" he asks. "There'll be no charge this week. Community service." The next morning a dozen books are delivered on 'How to build your business and be successful.'

A Democrat walks into the barbershop and gets a haircut. "What's the damage?" he asks. "There'll be no charge. Community service." The next morning there are a dozen Democrats in line in front of the barbershop for a free haircut.

[JEFF]

Now I realize why I'm stuck in traffic for an hour to travel just 10 miles down the road. It's because we have idiots like this running our country...

[Milla]

whoa. what happened here? i take a long weekend off to move and come back to find my beloved LA Land blog so unrecognizable. who are these people? where did the regulars go?

[Jay]

Her congressional salary is a minimum of 169,300 per year. I think she probably could have made it work if she wanted to.

[John Shewmaker]

It's not her fault. George Bush lied on her loan application.

[alan]

Someone figure out how to get the story into the mainstream media.....some news channel must have the "balls" to run the story!!

[Chance]

It's called a Real Estate Bubble you idiots! It happens and it didn't ask everyone if they were in the best position before it did. Very few people are simply walking because they want to. Before you make such blatantly mean statements, put yourselves in the shoes of some of these people. People invested in Real Estate and before they knew it, BAM! Their values plummeted.

[TJ]

You know who ultimately owns the debt?
- Our parent's retirement and pension funds.
- Our own retirement funds.
- Our banks, whom many of us are shareholders.

But, who cares? The banks should have never have made those terms! (sarcasm)

Yep. The smart and hard working get screwed again and the dumb will get bailed out. In America Robin Hood steals from the intelligent and distributes to the fools.

[Jeff]

"The greater the number of voters electing a head of government, the lower their average mental level and hence the mental level of the statesmen they elect."

John Stuart Mill, 1859

[Bud]

If Democrats wonder why there are so many pokes at this congress woman - it's due to our frustration with how the government is run and WHO is running it. When all they can talk about is raising taxes and banning any drilling for oil in ANWR and the outer shelf. We hard working citizens are sick of it. When you can look at this corrupt, overspending governmnet and say to yourself "I could do a hell of lot better job than they are" then there is definitely something wrong. When Obama can stand in front of apparently brain dead crowds and talk about raising taxes and is prepared to redistribute our hard earned money to people who really don't want to work and these crowds stand up and cheer - somethings wrong.

Something's wrong and it won't be long before we revolt - we need to get these idiots out of office. We need to have term limits and we need more stringent requirments for anyone wanting to run for public office. We need a better way to oust the criminals and deadbeat government workers from taking any more of our money. It will run out someday!

[Richard Frei]

Ummmm, explain how a representative from the Long Beach area has a home in Sacramento?? Don't you have to have your primary residency in the district you represent? Something ain't right.

[the problemwithcaring]

Milla - run!

Or stay. Pete got linked to Drugde again. This thread isn't to be read by the faint of heart.

I peruse such thread to read hilarious comments, nutball ravings and generally amusing paranoia of the Passionately Uninformed- comic gold, really. Best so far:

"More people need to use the phrase, Joseph Goebbels-like propaganda wing of the Democrat party to describe our media. Shame them.

I am not calling them nazis, but that they use the same mantra, which is if you tell a lie often enought, people will believe it.

Posted by: Glubber"

Lol! "I'm NOT calling them Nazis BUT.." That peterviles has the nerve to block any comments after threads like these, is SUPER funny to me.

[Chap]

People, it is obvious she was trying to make money by building a house or turning it around. Get a grip! Can't blams sombody for a real estate investment opportunity when she had no control over home values.

[NONEOFYOURBUSINIESS]

HA! Typical Repubs... blaming the media for not reporting this story. I am glad she let the house go back to bank. I am i am in the process of letting my house go back also. i want to take advantage of some forclosures in my local market. she is a smart women for doing it.

[RODOLFO]

Well done Laura, the houses need to have REAL prices, prices the regular citizen can pay, the actions like yours are going to help me to buy a house in a rational prize, not crazy or irreal price. Good bless you, the sales person who sell to you was dishonest, push you to much.

[LeftwingHater]

Typical- would somebody please fire every damn elected official that there is in America, I mean it...right now!!!

We will start fresh come Jan 1st

Seriously.

[Pat]

Baaaahhhh Waaaahhhh!!! LOL.....
Can you left coasters hear me laughing all the way from Michigan on this one? I can laugh because Kalifornia is the ONLY State Legislature that is even WORSE than Michigan's (I'll admit, ours is a close second to yours)!

Section 108 has got it right; this "lady" (and I use that term VERY loosely) pocketed $40,000 on this deal and she's not responsible for any of the aftermath... SHAME on her, and SHAME on all of you for electing another "charm" like her...

I have many friends that have moved out of your beautiful state because they got tired of fighting the non-sensical liberalism that is so heavily entrenched in your political "circus". I feel for all of you that so vehemently object to your political environment and yet, I wonder HOW all of you continue to let people like this get into office...?

I hope that all of you with some modicum of common sense will eventually get the will power to take your state back, before all of the illegals you have out there annex it back to Mexico....

[tray]

Whether or not she is a democrat or a republican is besides the point to me. If her constituents voter her in for another term that would be a travesty. That is where the burden should lie.

[shirteesdotnet]

This has absolutely NOTHING to do with being a democrat. I consider myself conservative in my views and all you "republicans" are an embarrassment to your political party as she is to hers.

Your rights are being taken away from you both by the democrats and the republicans. Its time all of you wake up. Try reading Ron Pauls new book and stop listening to your Rush Limbaugh mumbo jumbo. If you dont stand up now to save this republic (thats republic I said, not democracy)... then we will all be forced into FEMA camps, our right to bare arms taken away, and fluoride filling our bodies with mind numbing effects.

Do some research people. Governments arent in business to help you, they are there to control you. Amish people dont have their babies vaccinated and there has never been a case of autism in Amish children.

[John Stelmack Salem, Alabama]

Here is Laura Richardsons contact info:http://www.visi.com/juan/congress/cgi-bin/
newmemberbio.cgi?lang=&member=CA37&site=ctc&
address=&city=&state=CA&zipcode=&plusfour=

[SuGog]

Why the democrat bashing? Are the republicans without sin so they can throw the first stone? It seems all politicians, of every party affiliation, these days have questionable moral values. Extra - marital affairs, funding scams, selling votes the list is endless on both sides of the aisle. Maybe politics in general attract people how are looking for the easy life.

[butterfly mom]

Wow, a realtor was stupid enough to give her $15,000 after watching her walk into this house with no money down? What an idiot! If she has no money for a down payment because she is obviously careless with her money, I wouldn't be betting she will make it her priority to repay a measely 15K loan. Another thing, this is a classic example of congressmen (notice no PC here) getting celebrity status. Probably only 2% of congress is actually QUALIFIED to represent us. Why do we voters and taxpayers tolerate that?

[gerald]

This woman is very intelligent. The law allows you to walk away, so walk away. That will teach stupid lenders not to do 100% financing. That's ridiculous. You reap what you sow.

[Ricky]

As evidenced by many of the posts here - the unloved, the unwashed, the uneducated, and the just plain stupid still look to their Members of Congress to be the oh so special daddy they never had - and frankly, did not deserve.

Your elected leaders are there to do a job - HENCE THE PAYCHECK IDIOTS. They are not there to give you the love or the hug or whatever the Hell it is you did not get from your parents - who I suspect are first cousins.

Your great Republican government has taken your tax money - removed all protections for the consumer against corporate policies which will, be their very design, destroy many American lives. YOUR GREAT REPUBLICAN GODS HAVE DONE MORE TO DESTROY THE AVERAGE AMERICAN THAN ANY TERRORISTS.

And you wish to blame the person who walks away from a home - because, well, WHY DO YOU THINK SO MANY AMERICANS ARE NOW WALKING AWAY FROM THEIR HOMES - because times are just that good.

You continue to elect leaders who will ensure that corporate welfare is enriched while pursuing policies that will penalize the average American family - AND YOU ARE SO STUPID YOU THINK IT IS WRONG FOR SOMEONE WHO HAS EXPERIENCED THIS PROBLEM FIRST-HAND TO BE IN OFFICE.

Seriously - EVEN A STUPID ANIMAL WILL LOOK BACK TO SEE WHO IS HITTING IN THE BACK OF THE HEAD WITH A BOARD.

[JR]

Congress!! What a joke of a word it has become....Not sure if this is even my Country anymore.

[aloanguy]

It would be interesting to find out if there was a tenant in the house. If so and rent was paid, she may have fraudulently bought the home as a "second home" as opposed to an investment property. That is a giant no no.

Can anyone find out if there was an incidence of a tenant and rental income?

It would also be fraud if she represented the new home as a primary residence. Which could be a possibility because 100% financing for second homes was harder to come by than for primary residences.

[Matt]

are there any grown ups left in the world these days? The level of irresponsibility of our leadership is beyond understanding. I think they must be taking stupid pills, or it may be the water in places like DC and Sacramento.....

[J.N.]

Are Republicans really in here whining about this?

She defrauded her lenders and caused debt

Your party defrauded the American people and caused WAR.

Sorry but whining about some made-up double standard between Dems and Reps doesn't change the fact that your party is the most destructive force to this Republic since Communism and the Red Army.

Stop your whining. It's pathetic; even for the GOP.

[Mr.Bill]

I'am not defending her in my comment , but people
jumping on her because of her dealings have to realize
she was just doing what other home buyers were allowed to do..Forget about the black or white issue or party affiliation..She wanted to be a home owner , but got in over her head as the market took a down turn..
Granted she should have tryed to work out the problem
with the lenders but , she's not alone , hundreds of people
have done the same thing..

[The Euge]

Nothing personal, but it should not bother anyone how she votes, after all its the intentions that count, not the actions..

[RE]

A bunch of silly folks ventured into this blog and made it a rather partisan affair.

I understand anybody that walks away. The fact is that the loan was secured by the property and such irresponsible lending should never have taken place.

As to Democrats vs. Republicans, I find those Republicans that are screming so loud rather amusing when this country under this administration is brrowing like never before in history and just about doubles the nation debt in 8 years. Responsibility? Not much!!!

[Frank of CT]

For all of you who need a little help: here is the web address of this fine outstanding congressperson, if you wish to contact her... http://richardson.house.gov/

[California Confederate]

I bought a diesel truck a little over a year ago because it got better mileage than my Toyota and diesel was about 20 cents cheaper than gas at the time. Now diesel is about 30-40 cents more than gas, not to mention all fuel prices have gone up. Now I'm thinking I'd like to have a little cheap commuter car.

Can I just walk away from my truck payments, or do I have to be a black female congresswoman to do that?

I'm sure we all have obligations we'd just like to walk away. So why can she do this but the rest of us can't?

In a the real world Rights and Resonsibilities go together, in the Democrat world, one mans (or womans) rights become anothers responsibility.

[Ziggy]

I'm shocked !!!

SHOCKED, I tell you !!!

"I'm voting for Barack Obama."
"Why?"
"He's the only candidate who can really change this country."
"Change it into what?"
"A country full of hope."
"Hopeful for what?"
"Change."

[Jolski]

This is a no brainer.... she was given faulty intelligence by her mortgage broker. So you see, it is O.K.

[Curious]

She walked away from the home just months after she bought it with NO money invested and only because she started running for congress.

The question is, did she stop taking her tax payer sponsored government living expenses per diem given to all lawmakers from districts 50 miles of Sacramento of roughly $170 a day?

If NOT, then what did she do with that money knowing that she was not paying her obligation house payment with it?

[FreedomCM]

Jeez! Pete, do we know which right wing blog linked this article?

Posted by: Paul_inSB | May 21, 2008 at 01:40 PM

I'm guessing Paul is right. but which one?

[Wickedheart]

The problem is Congressman Richardson has too many scruples. Duke Cunningham would have that house paid for in no time.

[Kyle]

This is what happens when a story is linked to the Drudge Report - A bunch of right-wing morons projecting the failures of their own party on to some meaningless story. These people are screaming and yelling that DEMOCRATS are fiscally irresponsible? Is anyone aware that thanks to tax cuts and the SKYROCKETING federal budget - our national debt is up over 55% since 2001 to over 9 TRILLION dollars?!?!?! We now owe China 400 billion dollars - thanks to George W Bush!!!
Your kids and grandkids are going to be living in a BANKRUPT country because of this and you simpleton right-wingers are pretending that this idiot congresswoman is somehow comparable.
TOTAL DELUSIONAL DENIAL.

[J]

special elections are usually easy wins for the popular party. budding politicians can easily get their start. im sure she bought the property to establish residency in a district she thought she could win. can anyone say hillary? she never intended to live in the home and she no longer needs it.

[WaMu Customer]

First the $40,000 likely was property taxes which are paid out of an escrow fund that is part of the mortage as the bank is responsible for paying the taxes in most states.

There also should be some interest here, somewhere - over two years the interest would be tolling.

But as I pay my WaMu credit card bill, I am not helped by knowing that I am repaying this Congresswoman's loan.

[Old McDonald]

It is called capitalism. Flee risk. Gravitate to easy money. The $15K was for closing costs that were rolled into the loan 100% common in a 100% loan to value deal. The extra 40K she racked up is back payments on the interest and other penalties. Some sucker bank was willing to lend this money on this risky deal so it is all legal as long as the application was truthful. Plenty of folks in Sac Town did this.

An unsound decision on her behalf to buy when the market was going down. Also she at least could have made the effort to do a short sale and settle with the bank as well as keep the house up until the title was out of her name. CLINTON wanted a 90 day freeze on all foreclosures, now you can see what a dumb idea that is. This property would have just sat for 90 days more not helping the neighbors, the bank, the seller or the market. Beware of more dumb ideas from congress. To her credit she did recuse herself from the votes.

[Curious]

Why would a lending institution loan that much money to anyone without proof of a sufficient income to make the payments and a past history of paying off loans?

russ

All Other Legislators Monthly $9,684.01 Annually $116,208

and

Per diem paid to a legislator whose home is within 50 miles of the Capitol building is considered taxable income.

[Mike]

Susan -- L.A. Times is not mainstream media? That's confusing.

[Bob]

Dear Susan -

It's fun to pretend that the "Liberal Media" won't cover stories like this because, as you mention, the Congresswoman is a black democrat. But wait, aren't we reading this in the LOS ANGELES TIMES?!?

Come on, you can do better than that... It won't make the TV news because it isn't a very big story, don't pretend liberal bias is the reason for that.

[Randy 2]

No doubt she will be re-elected over and over again. She will never utter the words "Personal Responsibility." Alas, she is building a great resume to become a mover and shaker in the Democratic party.

[demoncat]

Typical Democrat??

This is ONE person in the state congress..

Because article is featured on the holy-drudge you people point your fingers and say "Typical Democrats, this is what they want to do to the country..." Get a grip people.

Are all republicans homosexuals/pederasts who seek anonymous bathroom sex?

[Arnold Roquerre]

She probably is a lawyer since over half of Congress consists of lawyers. Just more trash in the Congress. More corruption, more snot with legs telling others how to live. Of course she is a "socialists" who knows more taxes will make everything better.

She will have no problem violating her oath of office to defend and protect the Constitution to further more Socialism just like her fellow Dems.

[Mr.g]

Whats truly unbelievable is that a bank would be allowed to give out a mortgage for over half a million dollars with absolutely no down payment.

No wonder there is massive defaulting on mortgages in the U.S.

[SF Guy]

So I guess my taxes are not only paying her salary but they'll be covering her house loan for which she walked away from?

The penalties for this behavior are way - way to light. As for the people getting into this situation LEARN to READ your FREAKING PAPER WORK like the rest of us.

The loan companies need to be held accountable for the bad loan practices also. Who's bright idea was it to give the loan agents the keys to the bank? Most of the offenders have moved on to bar tending - waiter jobs or better yet collections jobs. The Agent had no skin in the game and was only after that paycheck.

Just stupid business practices! Now the Tax payers should pick up the bill?

[hlibor]

G.W.Bush offered the same subprime deal called Iraq,
the underwritering was nonexistant, the middleman, ie
halliburton et al. were available and the costs will be
felt and paid by everybody under 65 years old..( the
fixed retirees don't give a heck.....) but you will....just
wait and see....

[Randy]

Did she blalme George Bush yet? That should get her off the hook.

[Jiggles]

only a jackass, err........... democrat would not be ethically challanged by this scam!

[Laker]

I don't understand what everybody here wants from her.
Leave her alone. If she took the loan and never refinanced it so according to the law, she either has to pay the loan back or give back the keys.
She chose option B, and gave the key. She is 100% fine as she obeyed the law. Now, if you don't like that, change the law.

On anther note, it just proves that people are defaulting and having foreclosures just because the house is no longer worth to keep...lost value, and NOT because they can't afford the payments. THAT IS why no bailout will work. The only bailout that could work is if government will refinance all the loan at 50% of last sale value, then maybe some will be better off keeping them.

[Mr CO2]

Don't blame her,it has to be Global Warming!

[HD4lyf]

If this were a republican, it would be headlines, featured tonight on EVERY "news" show and Olber-dork would be ranting about it for WEEKS! I'm sooo completely burned out on our Gov't and our press that will only take consevatives to task for criminal behavior. By tomorrow she will have supporters blaming Bush and those evil lenders. Most of us have purchesed a home and some of us work in the escrow business....By LAW, she had to sign a document stating that she understood and agreed to her loan conditions. Wher oh where has the personal accountability gone in this once great country? we are so screwed.

[nirad]

if she were a Republican, she would have sold the house to a defense contractor for twice its value.

[Common Sense is Dead!]

It's quite simple! She signed a Promissory Note just like all of us normal law abiding God fearing people in the country. She failed to hold up her side of the deal. I would be in Jail if I did what she did! JAIL Hmmmm?

[nohokev]

Drudgereport happened. Let the hating begin.

[M.E. Forbes]

For digitalTexan: Right on! And the country has an election coming in November. Unless something truly spectacular happens, we'll get: A) a Democrat as President; or, B) a might-as-well-be-a-Democrat (McCain) as President. And likely a Congress dominated by Democrats. Maybe it's time now to "bullet-proof" one's investment portfolio (remember, it's only "rich Republicans" who have these)...

[Craig]

Democrat says it all.

[Rodell Minor]

Very telling how many above are turning it into a partisan issue. GREED IS THE PROBLEM PEOPLE...and greed doesn't have a party, tho I'd have to say, if it did. It would be REPUBLICAN.

Human beings are their own worst enemies and their GREED IS EATING THE WORLD. Blaming the situation on this or that group is a fear-based rationale that only brings more of the same.

GWB just recently stepped into the whole gas pricing fray with his calls to not blame the gas industry. GEEZUZ! His whole family is part of the problem.

[czfinfan]

I wonder how she's going to vote when the bill (which she could co-sponsor) to bail out all those people who foreclosed on their homes hits the floor of the Legislature. Man, this whole thing is a big cabal !

[frank copasso]

YOU PEOPLE MAKE ME LAUGH. THESE KINDS OF PEOPLE ARE THE ONLY TYPES THAT THE CORP-MILITARY-GOV-MEDIA COMPLEX GIVES THE ORDINARY CITIZENS A "CHOICE" OF. ITS HARD TO ELECT THE GOOD POLITICIAN FOR THE COMMON GOOD OF THE ELECTORATE WHEN "THEY' have CONTROL of the BALLOT BOX and the MEDIA. I certainly dont have the answer on how to fix the system except to pull the lever for whichever name you dont recognize on the ballot

[Happy Renter]

"The report says she recused herself on two key house votes on government efforts to address the foreclosure crisis."

- This may be true of the more recent votes, but she definitely did vote in favor of the Mortgage Forgiveness Debt Relief Act of 2007: http://www.govtrack.us/congress/
vote.xpd?vote=h2007-948

The vote on the MFDRA07 took place on October 4, 2007 and she received a notice of default on December 13, 2007, which means she was likely behind on her payments when she voted for the MFDRA07.

[jack lacks]

Sacramento is a section eight nightmare full of illegals, criminals, welfare recipients and sex offenders. When things get bad the free loaders walk away from their homes and values fall over 50% is some areas. Most of the good hard working folks in Sacramento get screwed over, thanks to the elected officials who have tuned Sacramento into a welfare city. So did the congresswomen make a good financial decision? Yes, I would think so because 8 out of 10 homes for sale are in short sales or REO (Real Estate Owned).

Don't believe me go to Megan's Law, Reality Track, Census Report or just call the Sacramento's local police department and ask for a crime report for the past 12 months. You will be amazed!

[Jim]

Typical Democrat!

[IToldu2CashOut]

Seems like there are a lot of idiots on this thread again. Must have got linked to drudge. Blah blah democrats blab blah. Normally this is an interesting blog. leave it to the conservatives to come on and take out all the insightful commentary and replace it with partisan mongering.

[JohnB]

Apparently they are speachless

[Jim]

What outstanding Democrat leadership. Walk away from your responsibilities and beg for a handout from the government.

Classic. This country is so screwed by some of these whackos. This will be a trend. Don't pay your bills, blame it on corporations and cry to the government (in this case she cries to herself) that she didn't know.

And this is the type of person being elected to Congress.

WOW are we in a world of hurt for leadership right now

[Chris]

I suggest ya'll write to her and tell her to resign:

http://richardson.house.gov/IMA/issue_subscribe.htm

I can't, I'm from Oregon.

[Marcy]

What a slug. California voters obviously won't be shown up by the New York electorate in choosing disreputable characters to represent them. Who'd a thunk it?

[JC]

Feel free to give her office a call and tell them what you think. Local # in Torrance is (310) 538-1190

[roy]

Hey "D...."
do you ever get tired manufacturing excuses for you Democratic pals.

[Guy Incognito]

I wonder if we'll hear about how many republican reps let their homes go into foreclosure.

[Scott]

Here is part of the problem. Someone here in the comments gives their "sympathy" to the woman! How backwards is that? What about the neighbors that had to endure what she did to the neighborhood? What about the seller that paid $15,000.00 for costs? and finally, what about the bank, WaMu for the defaulted loan and all the costs that go along with that??? The problem with our society is way to much APATHY! This woman is part of the PROBLEM instead of being a part of the SOLUTION! There are a lot of "sheeple" out there that think the government should bail out people like this and their bad home loans. For Shame.

[Brad]

It's Bush's fault. It's the Republicans' fault. It's McCain's fault. It's the pro-lifers' fault. It's the gunowners' fault. It's Halliburton's fault. It's Scooter Libby's fault. It's everyone's fault BUT the greedy, get-rich-quick-without-responsibility BUYER's fault.

[elsiemason@yahoo.com]

This is what happens when you keep sending the same
people back to Washington, D.C. They belive they are above the Law. It's the best Congress and Senate money can buy.

[honkskillet]

Here is what happened, with a no money down loan it essentially becomes the borrower's option whether she want's to sell the house and pay off the remainder of here dept (which she would have done if the house's value was greater than that dept) or walk away and leave the bank holding the bag. Obviously the market has tanked. She no doubt figured out that if she sold the house the price she would get would not cover what she owed the bank. This probably the only logical thing she has done since she took office (fair assumption since she is a DEM). I blame the BANK in this case. They should have required money down (making it much less likely that walking away would make financial sense) or demanded more collateral. What really cheeses me is that now legislators are bailing them out.

What is more interesting regarding our congresswomen here is that her current dept to the bank is 40k more than the sales price of the house. Plus, she seller agreed to cover 15k of the closing. Correct me if I am wrong but his means that she was pocketing money on this deal. This is either fraud or corruption. Either way she need to see jail time.

[E]

She didn't recuse her votes but rather was ABSENT from the house?

Can't even do her damn job....pathetic.

She needs to go on a diet also.

[David]

Ever notice -- when one person makes a bad investment, it's his responsibility. When a million people make a bad investment, it's the TAXPAYERS' responsibility. That is, it's the responsibility of the the taxpayers who didn't get suckered into "I can't believe it's true" loans.

Sheesh I'm sick of hearing people whine about their foreclosures -- these were the SAME people who, 2 years ago, were calling me stupid for not signing up for one of these Get-Rich-Quick loans.