Ministry of Truth writes:
Our leaders have really made a good impression on all of us.
Ministry of Truth | 05.21.08 - 6:19 pm | #

MiTurn writes:
Evidence of a definitive paradigm shift?
MiTurn | 05.21.08 - 6:20 pm | #

Ministry of Truth writes:
Is Haloscan working?
Ministry of Truth | 05.21.08 - 6:20 pm | #

dryfly writes:
Maybe she can be HUD Sec'ty in the next administration - as she clearly understands the system.

dryfly | 05.21.08 - 6:22 pm | #

blogenfreude writes:
But is she representative of the majority of walkaways?
blogenfreude | Homepage | 05.21.08 - 6:24 pm | #

blogenfreude writes:
Thanks - I'm here all week!
blogenfreude | Homepage | 05.21.08 - 6:24 pm | #

Elvis writes:
Yes, of course. It is a sensible decision. At least somebody in Congress is smart.
Elvis | 05.21.08 - 6:25 pm | #

AllenM writes:
Ruthless!!!

I wonder if we can get a good quote from her on the investment decision tree that led her to her ruthless treatment of those generous lenders.

Quite Cavalier of her, I do say!

Someday this war's gonna end...
AllenM | 05.21.08 - 6:26 pm | #

Alec writes:
Why would you need to buy a house in Sacto so soon after being elected to the state house?
Alec | 05.21.08 - 6:29 pm | #

UnLucky writes:
Firsto
UnLucky | 05.21.08 - 6:31 pm | #

MarkS writes:
I, for one, do not believe that she exists.
MarkS | 05.21.08 - 6:39 pm | #

Max writes:
She got quite a deal at the time. The seller was asking $699K. Ended up selling for $535K.

Max
Max | Homepage | 05.21.08 - 6:42 pm | #

barely writes:
Keep an eye out on Kudlow. I'll bet he blames the sell-off on OBAMA!
barely | 05.21.08 - 6:43 pm | #

nades writes:
I think I heard Tanta explode when she read this.... And I live in Cali....

Chief Executive Angelo Mozilo set off an online furore when he misdirected an e-mail characterizing as "disgusting" the way a borrower pleaded for help from the largest U.S. mortgage lender.

http://www.reuters.com/article/ b...G12144520080521



nades | 05.21.08 - 6:52 pm | #

Joe Six Pack writes:
Just goes to show that having an MBA isn't a ticket to personal success. Then again, dumping the house was merely a business decision. It's ok for a politician to weasel out of their obligations, but lord help ya if Joe tries it. That's the hypocracy of this country's financial scam. Joe pays either way.
Joe Six Pack | 05.21.08 - 6:56 pm | #

nades writes:
S&P 500 = 1,390.71

someone nailed it.....


.............
nades | 05.21.08 - 6:59 pm | #

Anonymous writes:
I thought Shiller said that, "Homeownership is thus an extension of self; if one owns a part of a country, one tends to feel at one with that country. Policy makers around the world have long known that, and hence have supported the growth of homeownership."

What does that make the congresswoman?
Anonymous | 05.21.08 - 7:01 pm | #

IdahoSpud writes:
If a congresscritter won't take advantage of all these awesome government/business foreclosure avoidance programs, who will? ;)
IdahoSpud | 05.21.08 - 7:04 pm | #

Bob Dobbs writes:
Fine example of the kind of rep who makes Congress what it is today.
Bob Dobbs | Homepage | 05.21.08 - 7:04 pm | #

Sniglet writes:
Is this really case of "walking away"? For all we know the congress woman can't really afford the payments, and has no other choice than defaulting.
Sniglet | 05.21.08 - 7:15 pm | #

Entropy writes:
And these are the people who manage our country........OMG we are so screwed!
Entropy | 05.21.08 - 7:16 pm | #

Sniglet writes:
One other point is that this might not fit the definition of a walk-away anyway, because this was a second residence. If I understand Tanta's crticisms of the "walk-away" reportage so far, she feels that most of the people going into default are either investors and/or people who simply can't afford the mortgage payments. It looks like this congress woman might not qualify as a walk-away on both counts.
Sniglet | 05.21.08 - 7:18 pm | #

Anonymous writes:
"Why would you need to buy a house in Sacto so soon after being elected to the state house?"

Why wouldn't you? Real estate only goes up in value.
Anonymous | 05.21.08 - 7:28 pm | #

Jas Jain writes:
--
Now she can say, “I feel your pain.”

Jas
Jas Jain | 05.21.08 - 7:30 pm | #

EBGuy writes:
My favorite politico is Ed "where's my primary residence" Jew, a former SF supervisor. Not only did he get the boot for not occupying his "residence" in the district he represents, he also applied for a real estate loan in Arizona saying he intended to live in a home he planned to buy in Phoenix. If that's not a definition of "everybody's doing it mortgage fraud", I don't know what is. The little white lie that brought a nation to its knees. Sordid details here.
EBGuy | 05.21.08 - 7:43 pm | #

Currently Smoking Cannabis writes:
Raise you hand if you think the social contract is for anyone but suckers anymore.
Currently Smoking Cannabis | 05.21.08 - 7:50 pm | #

Someone writes:
think I heard Tanta explode when she read this.... And I live in Cali....

Chief Executive Angelo Mozilo set off an online furore when he misdirected an e-mail characterizing as "disgusting" the way a borrower pleaded for help from the largest U.S. mortgage lender.

They've already made the "Reply to All" button a pain in the ass to get to due to other foulups. Now they're going to probably do the same thing to the Reply Button. You don't even want to see CFC's fax procedures...
Someone | 05.21.08 - 7:58 pm | #

MiTurn writes:
The reality (or should I say realty) of the fact is that prior to the collapse of the bubble, this knowledge of her "walkaway" would not have made the news.
MiTurn | 05.21.08 - 8:02 pm | #

Emma Anne writes:
LA TImes has updated its story:

"Update: California Rep. Laura Richardson today denied a published report that her $535,000 Sacramento home had slipped into foreclosure, saying she had renegotiated her loan to keep the home.

The house "... is not in foreclosure and has NOT been seized by the bank," Richardson, a Democrat from Long Beach, said in a statement. "I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement -- with no special provisions." "
Emma Anne | 05.21.08 - 8:34 pm | #

Emma Anne writes:
Oops, forgot the URL:

http://latimesblogs.latimes.com/...t- californ.html
Emma Anne | 05.21.08 - 8:36 pm | #

El Cliffo writes:
This story of a Congresswoman who didn't feel like paying her mortgage in Sacramento reminds me of the origin of my handle, El Cliffo. If you look closely at a map of the Sacramento area, you'll see a village called El Cliffo, which holds the distinction of being the locale with the sharpest drop in year-over-year real estate values in California--lovely El Cliffo, CA.
El Cliffo | 05.21.08 - 8:37 pm | #

tj & the bear writes:
Anecdotal: I have a co-worker checking out FCs, and the term "walkaway" appears to be coming up alot in his travels.
tj & the bear | 05.21.08 - 8:38 pm | #

waitinginPNW writes:
"Ruthless treatment of those generous lenders". LOL Love it.
waitinginPNW | 05.21.08 - 9:04 pm | #

Rob Dawg writes:
The house "... is not in foreclosure and has NOT been seized by the bank," Richardson, a Democrat from Long Beach, said in a statement. "I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement -- with no special provisions." "

It will be interesting to see if there is no loan fraud involved with her application. Isn't the $15k cashback at close already a crime? Oh, that's right we all have cafeteria justice here.
Rob Dawg | Homepage | 05.21.08 - 9:08 pm | #

Mike in Long Island writes:
How's the saying go, "Do as I say and not as I do"

I wonder if she sent Mozilo the same form letter the Bailey dude did to get the loan mod she claims she got in the LA Times story referenced above.
Mike in Long Island | 05.21.08 - 10:12 pm | #

mndean writes:
I live only about a mile and a half from Curtis Park, and that's a hell of a lot she paid even if she got a deal. That area is an old inner suburb next to the defunct WP railyards. The houses are nice but small, and it's awfully close to some rough neighborhoods. Considering the square footage, it must have been one of the bigger houses there. I doubt it was a remodel, with only one bath.
mndean | 05.21.08 - 10:33 pm | #

manu06 writes:
Hope she handles the Federal budget better than her own. My guess is that she vote to raise her
salary.
manu06 | 05.21.08 - 10:35 pm | #

FT Woods writes:
Congresswoman denies foreclosure report

Statement from the Congresswoman:

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.
FT Woods | 05.21.08 - 11:04 pm | #

Fast Eddie writes:
She's just a victim like all the Progressives. We should take up a collection to help her out of her distress.
Fast Eddie | 05.21.08 - 11:41 pm | #

Anonymous writes:
Typical dumocrat loser. All republicans are good, all dums are bad and believe in global warming like all the idiots on this lame blog.
Anonymous | 05.21.08 - 11:47 pm | #

Expat writes:
Ok, so maybe she did NOT walk away. Which makes her stupid. In any case, since she is a member of Congress, we should waterboard her anyway just to make sure we get the real story.
Expat | 05.21.08 - 11:56 pm | #

DCRogers writes:
She might not be so bright, but someone on her staff is damn good, and sorted this thing out pronto; and wrote a damn nice memo to boot.
DCRogers | 05.22.08 - 12:02 am | #

Alpha writes:
Is it me or do all politicians appear to be scumbags?
Alpha | 05.22.08 - 12:06 am | #

frank d writes:
The Capitol Weekly story includes a copy of the notice of Trustee's sale. She might have cleared it up, but she was in arrears

http://www.capitolweekly.net/fs/ ...Cx4qkjhxlldwn8k
frank d | 05.22.08 - 1:26 am | #

anon916 writes:
This is the first reported member of U.S. Congress 'Walking Away'. This isn't a subprime foreclosure story. We'll start hearing more these seemingly well-to-do folks once the spike of Alt-A (Liar Loan) people start getting their loan resets next year. At least she recused herself from the bailout vote.
anon916 | 05.22.08 - 1:52 am | #

rent_to_own writes:
'Isn't the $15k cashback at close already a crime?'

That is becoming an ever increasingly common question, with an ever increasingly clear answer - if everyone is involved in a fraud, then no one is interested in being charged with fraud. And to a major extent, America post 2001 was nothing but a giant fraud run for the benefit of those who understood what financial engineering really meant - fees in their pocket, the ultimate cash back at closing.

A strange belief exists that there is some independent agency charged with running things. There isn't. We elected the government that is in charge of monitoring and enforcing the laws under which the companies function, the companies that form the economy of this country, which we all participate in.

Then some of us scream about government interference and government incompetence, of which plenty exists, and then wonder where the government is when we want it.

Without recognizing that this is the result from decades of rhetoric about how government is nothing but a sinkhole of money, attracting only those incapable of succeeding in private enterprise.

The entire mortgage industry, however, not being part of government, was able to live out its free market fantasies - and 15,000 cashback? A small price to pay to keep the wheels of the free market humming.

Why complain about technical infractions? - because as has been noted in the past, you too have occasionally violated a driving regulation or two, as have we all. It is only getting caught that brings a penalty, not actually doing it. And if you don't have to worry about getting caught, or at least can justify getting caught as an abuse of governmental power, and not an actual crime, since everyone does it.

The current system of 'credit' in America is deeply distorted and corrupt. And those who retain a major amount of their assets in that system (a certain cabinet capitalist comes to mind with particular clarity) have no interest in watching it be destroyed in the name of something as laughable as 'the law.'

Grow up - the milk is spilled, and very few are going to be punished in anything but show trials. Which may fulfill some peoples' needs for feeling better about having made the proper choices, but are not really an improvement. Burning witches (whether legal or illegal) to purge the body politic never is.

The fraud began long before the lender actually signed the paperwork - it is what allows financial engineering to spread its wondrous magic to everyone except the greater fool. And guess what? Anyone who did not participate in the debt economy being having debt just might be the greatest fool. Welcome to America.

If it comforts you, reality does have a way of righting distorted self-images. It is just that the process is generally very painful, and often, people will go to great lengths to avoid even beginning that process.
rent_to_own | 05.22.08 - 6:00 am | #

Gee writes:
There must have been a bug in her computer program.
Gee | 05.22.08 - 6:48 am | #

eh writes:
She could probably use the exercise.
eh | 05.22.08 - 7:29 am | #

Mike in Long Island writes:
I must be hallucinating. I know I read comments on this thread last night. Is this haloscan punishing me?
Mike in Long Island | 05.22.08 - 8:11 am | #

Mike in Long Island writes:
Ah. Now I can see comments after having made a post. Thanks haloscan
Mike in Long Island | 05.22.08 - 8:12 am | #

jim a writes:
"I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement -- with no special provisions." Doesn't this constitute a violation of ethics rules? After all, she is accepting a benefit from a party that has an interest in legislation (the bailout bill) before congress. Somebody has to make gosh-darned sure that she is getting the same deal as ALL the other FBs from the lender.
jim a | 05.22.08 - 8:52 am | #

Russ writes:
A Congress Critter walking away from financial responsibility is not exactly news.
Russ | 05.22.08 - 10:09 am | #

jim a writes:
Okay, as it turns out, she was wise enough to recuse herself from voting on Frank's bailout bill.
jim a | 05.22.08 - 10:15 am | #

FT Woods writes:
She didn't recuse herself. She was at her father's funeral.
FT Woods | 05.22.08 - 6:08 pm | #