Has Her Home Been Seized Or Not? Richardson Denies Published Report On Foreclosure

Freshman Democratic Rep. Laura Richardson (Calif.) is denying a report in the publication Capitol Weekly that a home she owns Sacramento has been seized and sold.

Capitol Weekly, however, says differently, and the publication quotes a Sacramento real-estate broker who says he bought the house at a May 7 auction:

"But  financial records on file with the county show that Richardson does not own the home. The house was sold on May 7 at a public foreclosure auction for $388,001.

That auction originally had been scheduled for April 7, but was delayed a month, said James York, a Sacramento real estate broker who purchased the house from the trustee, the California Reconveyance Company. That transaction was officially recorded on May 9, and the deed transfer and sale were recorded on May 19.

'It was a foreclosure auction. I took possession of the house as of May 7,' said York, who has conducted numerous similar purchases, according to county records."

Capitol Weekly is also providing documents that is says back up York's claim. You can view those records here.

Yet Richardson, who was elected in a special election last August to replace the late Rep. Juanita Millender-McDonald (D-Calif.), has flat-out denied the Capitol Weekly report, issuing this statement on Wednesday (via the L.A. Times blog):

"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."

Richardson, who won a wide tough battle to claim the McDonald seat, lent herself $75,000 for her campaign and allegedly stopped paying the Sacramento home. Her principal residence is in Long Beach.

So to summarize, Richardson's statement is  either less than completely candid or the Capitol Weekly report is inaccurate. We'll see how this plays out in coming days.