U.S. Rep Loses Home to Foreclosure

Even U.S. lawmakers aren’t immune to the foreclosure crisis.

Congresswoman Laura Richardson, a California Democrat, said Friday that her home was foreclosed and auctioned off without her knowledge, despite having reached an agreement with her lender Washington Mutual.

Richardson fell behind in her mortgage payments because she used her money to win the House seat left vacant by the death of Rep. Juanita Millender-McDonald.

Richardson bought the 1,600-square-foot home in Sacramento’s desirable Curtis Park neighborhood for $535,500 in January 2007. It was sold at auction earlier this month to a Sacramento mortgage lender who paid $388,000, according to the Sacramento County Recorder’s Office.

A default notice sent to Richardson in March put her unpaid balance at $578,384. WaMu reused to discuss the case.

Richardson voted in favor of a mortgage debt forgiveness bill, which subsequently became law. She was absent earlier this month for votes on a foreclosure prevention bill, because of her father’s funeral.

Source: The Associated Press, Erica Werner (05/24/08)