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 Washington Mutual then rescinded that sale due to a "mistake" that the sale took place despite their promise of a 60-day hold on foreclosure proceedings.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
BOB & LEILANI SOUZA
Real Estate Investment Specialists
Southwest Placer County, CA
Bob Souza - 925.513.3400 - bob@souzarealty.com
Leilani Souza - 916.408.5500 - leilani@souzarealty.com
FORECLOSURES : TRUSTEE'S SALE AUCTIONS : INVESTMENTS
LOTS AND LAND : PROPERTY MANAGEMENT : RENTALS
Roseville : Rocklin : Lincoln : Loomis : Granite Bay
Auburn : Newcastle : Penryn : Meadow Vista
SEARCH CALIFORNIA FORECLOSURES FOR FREE:
Copyright © 2002-2012 Souza Realty | All Rights Reserved | DRE #01262541
I guess the investor is very happy with the $100K...I would!
Rebecca, I would sure think so, too...that's almost a 25% return on their investment...WOO-HOO! :)
Leilani
Bob and Leilani - I don't know if it was this particular politician, but there was another case where a house went to "short-sale" by a politicain, and then was sold by that buyer, back to the politician. There are some really bazaar things going on.
Myrl, the scams that have surfaced in recent years are almost unbelievable...who said criminal minds weren't creative! :)
I heard that if a home that got foreclosed on ever transferred ownership back to the person that defaulted, all of the negative credit would "come back" as active on their credit report. I don't know how that same rule applies to short sales, though.
Anyway, thanks for stopping by to comment...it's always great to see you! :)
Leilani