Jun

Deadbeat Dem Congresswoman Has House Foreclosed

Posted by: Mike's America @ 1:41 pm in Uncategorized | 0 views

Only a Democrat could get away with this!

While Democrats brayed in 2006 that voters should punish Republicans for a “culture of corruption” it appears one of their newest Congresspersons has set yet another bad example.

The meteoric rise of Laura Richardson began when this Long Beach California City Councilwoman won a seat in the California Assembly in 2006 and several months later won a special election for a vacant congressional seat.

On her way to Washington, she left behind three homes, one of which her mother currently lives in, often in default and disrepair. Finally, the $535,000 home she bought in Sacramento was foreclosed and sold at auction, leaving the lender stuck with a loss of approximately $200,000.

While a State Assemblyman for only a few months, Richardson collected $170 a day living expenses tax free. But instead of paying her multiple mortgages, she loaned her campaign for the open congressional seat $60,000.

The Sacramento home was purchased with no money down. On foreclosure, it was revealed that Rep. Richardson had walked away from nearly $600,000 in loans and fees.

Her congressional salary is $169,000 per year. She is now repaying the $60,000 she loaned her campaign with funds from new donations. Yet, not a penny for the lender stupid enough to make her the loan.

In her defense, the Congresswoman issued this statement: “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.”

Oh yeah! Like the rest of us could get away with a scam like this!

And what about the voters in Richardson’s district? It’s a heavily Democrat district which gave Richardson a win of 40% over her Republican challenger in the special election. So, it’s unlikely they will turn her out for being a deadbeat.

After all, Democrats and deadbeats just sort of go together!

Links:

L.A. Times blog
Capitol Weekly

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This entry was posted on Sunday, June 1st, 2008 at 1:41 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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3 comments so far

Indigo Red

Would it be unfair to say that Richardson is the mixed race Black daughter of a LA Teamsters Union single mother, that she got an BA/Political Science from UCLA, an MBA from USC, and studied in Beijing, China?

All that just screams ‘Socialist, victim, and entitled’ to me.

June 1st, 2008 at 3:02 pm

MataHarley

Mike’sA, just a few specifics on Richard’s foreclosed home and “walking away” from the $600K mortgage and loan fees.

Timing is everything as to whether she got away with anything. If it was at sheriff’s auction in 2007, the bank could have, and may have, made her responsible for the lost cash with a lawsuit/judgment/lien. Also, this mortgage debt forgiveness is reflected as income on her personal income taxes for 2008. She will be responsible for state and fed taxes for the loss. These events are not unusual prior to this year.

Laura Richardson landed in DC in Sept 2007… just in time to vote “aye” on the Mortgage Forgiveness Debt Relief Act of 2007. After this bill was signed into law late Dec by the POTUS, (and with some exceptions) the debtor is no longer responsible for taxes for the loss. In the wake of the subprime news, Congress and the WH felt that distressed homeowners should not be hit again with income tax repercussions on top of their loss. However the banks still retain the option to file a judgment against the debtor for the monies lost. Most are not doing so, in my experience.

So Richardson, losing the home in 2007, is not a beneficiary of the Mortgage Forgiveness Debt Relief Act herself. No doubt, much to her chagrin. But she is not necessarily getting away with anything either. Taxes on the $200K can be hefty.

June 2nd, 2008 at 1:21 pm