Buyer of Rep. Laura Richardson’s house: She “walked away”

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The Wall Street Journal quotes the buyer of U.S. Rep. Laura Richardson’s Sacramento house as saying she walked away from the house, and can have it back if she wants it -- for the same price she paid for it in 2007.

Richardson (pictured) has denied a published report that her house went into foreclosure, saying she worked with her lender to renegotiate her mortgage.

But James York, the Sacramento broker listed on public documents as the new buyer of the home, tells the Journal’s ‘Developments’ blog the congresswoman walked away from the mortgage: ‘She’s walked away from the property,’ he said. ‘I would be happy to resell her the home for the $535,000.’

That would represent a tidy profit for York, who reportedly bought the Richardson house at auction for $388,000.

Richardson’s office has not answered questions about the Sacramento home. In a statement Wednesday, the Democrat from Long Beach said the house ‘is not in foreclosure’ and that she had reached an agreement with her lender on a loan modification.

Photo Credit: L.A. Times

Read the entire Richardson statement by clicking below.

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.