CA Congresswoman Gets Loan Modification AFTER Foreclosure On Sacramento Home, Investor Gets Settlement
Rep. Laura Richardson (D - Long Beach) bought a home in Sacramento, California in early 2007 for $535,000 and it went into foreclosure in early 2008. A real estate investor purchased this home on the courthouse steps for $388,000. Washington Mutual then rescinded that sale due to a "mistake" that the sale took place despite their promise of a 60-day hold on foreclosure proceedings.
Uh oh. What happened next?
- The real estate investor filed a lawsuit against the lender.
- The lender refunded the full purchase price PLUS an additional $100,000 as a settlement to the investor.
- The lender gave the previous owner a loan modification.
As a side note, Richardson has already defaulted on three of her homes...plus her Sacramento home "at one time was declared a public nuisance by the city because of its rundown condition." It was also noted that "a Sacramento neighbor, upset with the conditions of the congresswoman's property, paid a gardener to tend to the lawn a number of times."
Wow. I wonder if this will be one of those loan modifications that eventually turn into another foreclosure.
I'm glad the real estate investor seems to have had a happy ending...perhaps the $100,000 settlement exceeded their estimated net proceeds had they simply "flipped" that home! :)
Source: L.A. Times
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