Rep. Richardson's once-foreclosed house deemed a 'nuisance'

Remember the Sacramento house (pictured) that Long Beach congresswoman Laura Richardson lost to foreclosure and then fought to regain? Local officials in Sacramento say the home, once again owned by the Democratic congresswoman, is in disrepair and is a "public nuisance."

From today's L.A. Times: "This week, in the latest chapter in the housing saga, the Code Enforcement Department in Sacramento declared Richardson's home a 'public nuisance.'"

More: "The city has threatened to fine her as much as $5,000 a month if she doesn't fix it up. Neighbors in the upper-middle-class neighborhood complain that the sprinklers are never turned on and the grass and plants are dead or dying. The gate is broken, and windows are covered with brown paper. 'I would call it an eyesore,' " said Peter Thomsen, a retired bank executive who lives nearby.

Richardson, a Democrat who faces no Republican opposition on the November ballot, rarely answers questions about her personal finances, and this latest story is no exception. The Times: "Asked about the house, Richardson's office released a statement that said: 'Neither Congresswoman Richardson nor her attorney have received any information referring to this matter. Any additional information will be provided at a later date.' "

--Peter Viles
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo Credit: Associated Press

Would you pay $1,300/mo. to lease a car? You already do.

Off topic but irresistible to those following the saga of U.S. Rep. Laura Richardson (pictured), the triple-default and single-foreclosure Democrat of Long Beach: the car she leases for official use is the most expensive lease of any member of the House of Representatives, according to Gene Maddaus of the Daily Breeze.

Maddaus: "When she arrived in Congress last fall, Rep. Laura Richardson sought out a vehicle that would match her newfound status.     She settled on a 2007 Lincoln Town Car - the choice of many representatives who lease their vehicles at taxpayers' expense. But hers was distinct: at $1,300 a month, it was the most expensive car in the House of Representatives."

Please note the phrase "at taxpayers' expense."

Better known for defaulting on three mortgages and losing one house to foreclosure, Richardson is fast gaining a reputation for inventive auto financing. The backstory from Maddaus: " When she was a councilwoman in Long Beach, she crashed her BMW, abandoned it at a body shop, failed to pay a prior repair bill, and then racked up 30,000 miles on a city-owned hybrid in one year - apparently violating a policy against personal use of city cars."

I know, I know, it's not a housing story. But I also know some of you are following the saga of Rep. Richardson's personal and public finances. For my money it's one of the better political stories to come out of the foreclosure crisis.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Hat tips: Uncle Billy via e-mail, with a reminder from LAObserved.
Photo Credit: Rep. Laura Richardson, center, arrives at a fundraiser in Washington, Wednesday, June 25, 2008, via A.P.

Ask the congresswoman: Your questions for U.S. Rep. Laura Richardson

A week ago, I asked readers to submit questions they'd like to pose to U.S. Rep. Laura Richardson, the triple-default Democrat from Long Beach who still hasn't explained details of the loan modification she negotiated with Washington Mutual in hopes of saving a home from foreclosure.

Here are the four reader questions I've submitted to Richardson's office:

Laker asked, "On your Sacramento house, for the benefit of the public and those that are about to lose their home to foreclosure, would you please disclose the agreement you've reached with WAMU on the loan modification?"

RahRahGrl asked, "Have you paid your property taxes (for all properties) in full?"

RZ asked, "How do you respond to constituents who think that your personal woes (house foreclosure, missed payments, etc.) have taken away your credibiility to make good decisions as a congresswoman?"

My Less Than Prime Beef asked, "Is it time yet for another Congressional pay raise?"

I've e-mailed these to Rep. Richardson's office and called also seeking answers.  I'll let you know if I hear back. Relatedly, it appears Richardson still enjoys the support of House leadership. This is from the AP today: "The majority leader of the U.S. House is holding a fundraiser for Southern California Congresswoman Laura Richardson despite reports about Richardson's history of defaulting on home loans and failing to pay off debts."

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo Credit: L.A. Times
 

Ask the congresswoman: Your questions for U.S. Rep. Laura Richardson

I'm overdue for a session of "Ask the blogger," so here goes. Today, something completely different: Instead of your questions for me, I'd like to hear your questions for U.S. Rep. Laura Richardson, the triple-default Democrat from Long Beach.

I sent her office a list of questions in late May (you can see my questions by clicking at the bottom of this post) and haven't heard back, so I'm giving up and turning to you: submit your best (serious) questions for U.S. Rep. Laura Richardson, I'll sort through them and send them along to her congressional office. Fire away.
Photo Credit: U.S. Rep. Laura Richardson, by L.A. Times

Rep. Richardson failed to disclose loan from strip club owner

The latest on the triple-default, single-foreclosure Democratic congresswoman from Long Beach: "Rep. Laura Richardson  initially failed to disclose economic interests -- including a loan from a strip club owner -- when she served on the Long Beach City Council, public records show," the Long Beach Press-Telegram reports.

From the Press-Telegram: the loan in question was for $20,000, in 2000, and came from a family trust controlled by Jerry Westlund, who owns the Fantasy Castle strip club in Signal Hill and 13 other strip clubs in seven states. Two years later, Richardson -- who had not yet disclosed the loan -- voted with the council to place Westlund's father on the city's board of examiners. She eventually disclosed the loan in 2004.

It gets more complicated: Westlund tells the newspaper that the 60-month loan, at 15.5% interest, was made to Richardson and her then-husband, Long Beach Police Chief Anthony Batts, but Batts strongly disputes that, and the newspaper reports that only Richardson's name is on public records of the loan.

Here's where it really gets interesting: "Westlund said he asked to be paid back in about 2005 when Long Beach police began showing up with frequency to investigate his Fantasy Ranch strip club, which was on South Street in Long Beach."

Richardson declined to talk to her hometown paper for the story.

Analysis: Wild stuff, huh? I'm not the sharpest knife in the drawer, but I'm not entirely convinced this $20,000 was viewed as a loan when the money originally changed hands, if you catch my drift.

I know it's far afield from home values in the San Fernando Valley, but this woman does represent a good part of Los Angeles County in Congress, and she has become a poster child for financial irresponsibility at a time when Congress is weighing who is responsible for the mortgage mess. Exactly what would it take for the Republican Party to field a competitive candidate against her?

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Hat tips: Uncle Billy, Dr. Housing Bubble and others, via e-mail.
Photo credit: L.A. Times

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."

For Rep. Laura Richardson, an easy victory

From the Daily Breeze: "South Bay Rep. Laura Richardson waltzed to an easy victory Tuesday in her 37th Congressional District race despite revelations in recent weeks of the congresswoman's financial struggles.

More: "With all 333 precincts reporting, Richardson (D-Long Beach), had an overwhelming 75% of the vote. Her two opponents, Cypress College professor Peter Mathews and community newspaper publisher Lee Davis had 17%  and 8%, respectively."

For those interested in hearing from Richardson about her financial travails, she called into the John & Ken radio show this week and received a good grilling. It's about halfway through this audio clip.

I still haven't heard details about the three loan modifications, details that would help determine whether she received favorable treatment from lenders. For the record, she has said she did not receive special treatment.

Hat tip: Take Five via e-mail
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com

Richardson's opponent calls her "a national embarassment"

One of Rep. Laura Richardson's opponents in Tuesday's Democratic primary called her "a national embarrassment" on Sunday, arguing Richardson's personal financial troubles have undercut her ability to fight for her district.

"When you have someone representing you in Congress with this sort of national embarrassment, it makes it very hard for her to lobby for this district," said Lee Davis, a community activist running against Richardson.

Davis was citing Richardon's recently publicized history of multiple mortgage defaults on multiple properties -- eight defaults on three houses, and one foreclosure.

Richardson has not responded to repeated requests from L.A. Land for details about the defaults, or her negotiations to modify mortgage loans. She also declined to be interviewed for an article published in Saturday's Los Angeles Times.

"If she doesn't care about herself and being responsible, do you think that's a person who's going to care about her constituents?" Davis asked. "I think there is something very, very wrong with it. She makes $169,000, that's enough to pay her mortgages. ... This goes to her character."

Davis continued, "She's a person who will do or say anything to win. There are credibility issues, there are integrity issues. ... We just don't need a representative who doesn't respond to the press or the people. Are we to continue to elect someone who is negligent in her finances, negligent in paying her bills, negligent in responding to the people she represents? Do we need two more years of that? Laura needs to go."

On Saturday, Richardson's other Democratic opponent, Peter Mathews, accused her of "a pattern of financial irresponsibility."

Photo Credit:  Lee Davis for Congress
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com

Richardson opponent cites a "pattern of financial irresponsibility"

A journalist I respect suggested to me that, if I was going to devote space to the various financial travails of Rep. Laura Richardson, it is only fair that I give her Democratic opponents a chance to comment on her behavior. She is, after all, on the ballot Tuesday in California's 37th Congressional District.

Today Peter Mathews, a college professor challenging Richardson in Tuesday's Democratic primary, accused her of "a pattern of financial irresponsibility," citing published reports Richardson has defaulted at least seven times on three homes, including a default that led to foreclosure on a house in Sacramento this spring.

"It just seems to me she has not been financially responsible, and I'm wondering how she can be responsible for a federal budget when she can't balance your own budget," Mathews told me.

"She's not an average working American. She's making almost $170,000 a year," Mathews continued. "And most Americans don't own three homes. We need a congressman who can focus on the Iraq war, the economy, the environment and universal health care, which I support. A congressman should not be diverted by personal financial problems. It leaves her vulnerable to influence from the outside, especially from special interest groups."

He continued: "I wish her well as a private citizen, an individual. Everyone has faults and failings, but in this case it's a public official who has to be responsible to the public."

Richardson has not responded to repeated requests for comment from L.A. Land and declined to be interviewed for an article published in today's Los Angeles Times.

Mathews is a professor of political science at Cypress College and a community organizer. You can view his campaign Web site here. The other Democrat in Tuesday's primary, Lee Davis, did not immediately return a call for comment Saturday morning.

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

Rep. Richardson: "It ain't been easy"

Those of you waiting to hear from U.S. Rep. Laura Richardson about her various defaults and unpaid bills will have to make do with this, a short video in which she thanks her supporters for electing her to Congress last year.

Highlights, to my untrained ear:
-- "I just want to say that I know it ain't been easy, but sometimes you gotta do what you gotta do to get it done." (Applause)
-- "Above all, you keep your word, until the end."

Relatedly, my colleague Steve Lopez has picked up the thread on this story. Maybe he'll have better luck than yours truly getting a call returned by Richardson's office, him being practically a movie star and all.

Hat tip: Harvey Korman fan, via comments
Photo Credit: L.A. Times