In an "extremely unusual" move, WaMU goes to bat for Rep. Richardson
Just when you thought you were safe from news about U.S. Rep. Laura Richardson, Democrat of Long Beach: The Daily Breeze reports that her lender, Washington Mutual, is trying to help her get her foreclosed house back (That's the house at right, located in Sacramento).
The Breeze's Gene Maddaus: "The real estate broker who bought Rep. Laura Richardson's house at a foreclosure sale last month is accusing her of receiving preferential treatment because her lender has issued a notice to rescind the sale.
Neither Richardson nor WaMu would talk to Maddaus about the situation. Richardson has yet to answer L.A. Land's questions, posed in writing on May 22, about the Sacramento mortgage, and the modification to the mortgage she says she received from WaMu.
Catching up: I must confess I failed to post a story about Richardson's car troubles. Here's how the Long Beach Press-Telegram told it: "In 2005, when she was still on the Long Beach City Council, she left one mechanic in a lurch with an unpaid bill, then later had her badly damaged BMW towed to an auto body shop but didn't pay for any work and abandoned the car there, owners of the businesses said this week. The next day, Richardson began using a city-owned vehicle -- putting almost 31,000 miles on it in about a year -- and continued driving the car five days after she had left the council to serve in the state Assembly, city records show."
In a terrific example of public service journalism, though, the Press-Telegram did manage to get some money for the mechanic. It reports that Richardson paid the 2-year-old, $735 bill after the newspaper called seeking an interview about the unpaid debt.
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo: Associated Press
More: "James York, owner of Red Rock Mortgage, said he would file a lawsuit against Richardson and her lender, Washington Mutual, by the end of the week, and has every intention of keeping the house. 'I'm just amazed they've done this,' York said. 'They never would have done this for anybody else.' "
Maddaus seeks out analysis from foreclosure expert Leo Nordine, who opines that a bank going to bat for a former homeowner in a situation such as this is "extremely unusual." "Unless [the borrower] filed bankruptcy beforehand, they'd never do it."
Newspaper as debt collection agency. I love it.
Now how about "newspaper as judicial watchdog"?
How come local, state, and federal authorities can't seem to decide who has responsibility for investigating her? It's been pointed out numerous times that it is very very likely her mortgage applications were fraudulent. FBI people, hello... you've got that special mortgage fraud unit... heeeeeeellooooooooo.
This just in, via thehill.com: CREW (Citizens for Responsibility and Ethics in Washington) have denounced her behaviour. Ugh... another "strongly worded bunch of words." http://tinyurl.com/56p7oh
Posted by: Duke of Moral Hazard | June 10, 2008 at 11:46 AM
I hope she gets the house back. Then she can pay off the arrears and the mortgage every month while she maintains the fiction of really trying to save the home from foreclosure.
She pimped her homes for money to run for office. Now she can raise that little refi love child.
Posted by: TakeFive | June 10, 2008 at 01:52 PM
What a flake and what is sad she will be a career politician, because that is the only filed where a person with these traits thrives. Get real she is getting preferential treatment if I was Gene I would publically sue Wamu and Richardson until they cave with the media. What a sham
Posted by: Steve | June 10, 2008 at 03:18 PM
She gets the house back and resumes paying the mortgage and catches up the arrears and pays the current owner for her back taxes and penalties he paid and then lives up the the terms of her loan by residing there thus losing her Long Beach seat? Not.
Congratulations also to the Editorial Board for managing to keep the story from actually impacting their agenda.
Posted by: Rob Dawg | June 10, 2008 at 03:47 PM
All those people who "had her back" when you first started posting about this *woman* sure are silent now.
Go figure.
Posted by: E | June 10, 2008 at 07:07 PM
Let me get this right :
WAMU took a $200K+ haircut on the foreclosure.
If the sale can be rescinded, WAMU has a performing loan/asset again.
Either someone at WAMU has a sense of humor and is calling Richardson's bluff or this makes business sense at the Congresswoman's expense.
Maddaus might be having second thoughts on his investment, too.
Losers? The neighbors!
Posted by: Robbie Fields | June 10, 2008 at 10:29 PM
E, as far as Ms. Richardson, nobody "had her back". We were just asking the question "Why her, and not the politicians that are ripping off the taxpayers for millions?" We were also asking, what was the point of hammering her on a blog? We predicted she would easily be re-elected and guess what? She was... Silence is better than an "I told you so"
Posted by: JK | June 10, 2008 at 11:22 PM
Wowwww, someone's back is getting scratched *real* good.
Posted by: Tombstone Realty | June 11, 2008 at 08:46 AM
Well, at least as a result of this lawsuit filed by Mr. York, we might get to see the legal details of the deal between WaMu and "that woman".
Posted by: Mark | June 11, 2008 at 11:59 AM
Another damaged Dem goes to Congress! No wonder this country is so messed up! Michelle Obama is probably "proud" of Ms. Richardson, too!!!
Posted by: Alice B. | June 12, 2008 at 08:16 AM