Congresswoman’s Home in Foreclosure
One of the more interesting tales of foreclosure is that of a Congresswoman’s — Laura Richardson — home in California. Capitol Weekly reports on this high profile foreclosure:
While her campaign heated up, Richardson’s house slipped into default. Richardson fell behind on her mortgage payments as she loaned her Congressional campaign $60,000 – money that has begun to be paid back to Richardson personally from her campaign account, according to records from the Center for Responsive Politics. …
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. …
While Richardson walked away from her bank loan, she has begun to pay herself back for the money she personally invested in her initial race. Records show that Richardson spent $587,000 out of her Congressional campaign committee since declaring her Congressional candidacy through March of this year. Of those expenditures, Richardson has spent $18,000 of that money to begin repaying herself for the money Richardson loaned to her campaign.
It is worth noting that the home in foreclosure is actually a second home, and not a primary residence. And the decision to walk away may have been more of a financial planning move than anything else. After all, Richardson only bought the second home in Sacramento to have a place when she was attending Assembly meetings. After being elected to the U.S. Congress, there is no need to keep a home in Sacramento in addition to the home she has in her Laguna Beach district.
Interestingly, the Congresswoman has recused herself from voting on legislation that has to do with help for those facing foreclosure. This is probably a good move, since she would benefit from such legislation.
As foreclosures move up the economic food chain, Richardson’s story may become a more common tale.
Tags: Laura Richardson, Laura Richardson foreclosure, home mortgage loan, mortgage loan blog,
foreclosure, financial planning
