The Ghost of Snapped Shot

Or, welcome to my low-maintenance heck.

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Congressional Class Act

It used to be that people who committed fraud were barred from the hallowed halls of the Congress. Sadly, under the leadership of Nancy Pelosi's Democratic party, such is no longer the case:

As the real estate market softened in 2007, the new owner of a three-bedroom, 1,600-square-foot house in Sacramento's Curtis Park neighborhood ran into trouble. The house that was purchased for $535,000 in January had lost equity. The owner fell behind in her payments, and eventually, the bank seized the home.

What makes this story different from the thousands like it is that the owner of this house was a member of Congress.

The story of the foreclosure of Long Beach Democrat Laura Richardson's Sacramento home is a tale of a real estate market gone sour. It is also an illustration of how far many candidates will go to seek elected office, even if it means quite literally mortgaging their own financial future.

While being elevated to Congress in a 2007 special election, Richardson apparently stopped making payments on her new Sacramento home, and eventually walked away from it, leaving nearly $600,000 in unpaid loans and fees.


There's nothing wrong with going into debt to run for Congress, but when one uses that as a blatant excuse to walk away from another loan commitment, we're entering the territory of the criminal. Ms. Richardson signed a loan document with her bank promising that she would pay back the amount given to her towards the purchase of her home in full. That document does not guarantee that her home will increase in value, and it does not contain an exit clause allowing her to walk away scot free if the current value of the home drops below what she was loaned.

It should be noted that serious financial trouble like this is generally considered to immediately disqualify one from obtaining any security clearance issued by the Federal government, at least for we evil contractor types. And for good reason, too—Once you've gotten yourself into a serious financial mess, it's that much easier for a foreign agent to step in and offer to "help" in exchange for classified information.

I'd hope that our Congress is taking steps to ensure that Ms. Richardson won't have access to any information that could compromise our national security. Unfortunately, given the way Democrats have behaved over the past 20 years (think Barney Frank, a still-standing member of the House Financial Services Comittee), I'm sure I'll be swiftly disappointed.

h/t Dawnsblood

Update: PGR88 says it best: "The headline is very misleading no one being “immune” from crisis implies that this congresswoman was helpless. Quite the contrary - she basically funded her campaign race using a mortgage intended for a home."

If only we could all live by the rules that Democrats make up for themselves...

More commentary over at Michelle's place. We had it first, though! ;)

  #YeOldeDominion


Comments:

#1 captainfish 22-May-2008
Brian, how can this be fraud when the fed government will cover those loans for her.

no need to fear.. congress is here

thankfully, now she has learned the greatest democrat lessons available to new congressmen..... how to screw the little people to pay for their high lifestyles.

she will end up using her paycheck to repay the loan or buy new home or use her campaign funds to repay the loan or buy new home. She will then also create some pork project that will gain her much moolah from her contributors.
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