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NY Post: Rep. Israel Gets 93K Bailout From Bank

Israel's congressional opponent, Stephen Labate, says Long Islanders should be outraged by the 'special deal.'

Mortgage holder JPMorgan Chase has bailed out Long Island Rep. Steve Israel from the underwater mortgage on his Dix Hills home by approving a special deal allowing the lawmaker out of nearly $100,000 owed on the property, according to a New York Post report.

Israel, chairman of Democratic Congressional Campaign Committee, is running for reelection for a seventh term in New York's Third Congressional District, which includes Great Neck. 

Israel and his wife, judge Marlene Budd, filed for divorce in 2011. The couple owes $553,000 on the mortgage for the home which was purchased in 2004 for $580,000, according to the Post.

JPMorgan approved a “short sale” of the home for $460,000, according to the report. The deal relieves $93,000 in debt Israel owes the bank.

In the Post report, Rep. Israel's camp said a marital breakup and a depressed housing market were to blame for the bailout.

“They did what everyone else would do: found a potential buyer and had a lawyer negotiate the sale with all parties for a price consistent with comparable homes in the neighborhood,” said Israel spokeswoman Samantha Slater to the Post.

An outspoken advocate for the bank bailouts, Israel is living by a double standard, according to his congessional opponent, Stephen Labate, R-Deer Park.

In a press release Monday, Labate said every Long Island homeowner should be outraged by the unethical behavior of the congressman.

"This is a classic example of politicians getting special treatment and playing by a seperate set of rules," said Labate. "Voters are tired of elitist politicians who use their power of office to garner special deals from the institutions they are charged with regulating."

Republicans have requested a House ethics committee probe bank break for Israel and Long Island realtors are calling the move "irregular," according to the report.

“I don’t understand how he [Israel] is eligible for this program when numerous other homeowners are struggling and are not being given this same opportunity,” said Grace Slezak, owner of Destiny International Realty to the Post.

Israel voted for the law, the Troubled Asset Relied Program, that provided billions of dollars to banks during the Wall Street meltdown in 2008. JPMorgan received $25 billion, which it repaid, with interest, to the government, according to the Post.

Beth Malone October 08, 2012 at 07:58 PM
How insulting to all Americans who have tried to get relief from the TARP Program. I have been in a two year battle with JP MORGAN CHASE who admitted they made numerous errors and foreclosed on my family home in January 2010. In a gesture of "remorse" JP MORGAN has since offered me $40,000.00 for the equity I had in my home. I have written the Senate Banking Committee, our own Senator David Vitter, our AG Buddy Caldwell and no one cares. As Neil Barofsky wrote in his tell all book about what really happened in the Bank bailouts, it was NEVER INTENDED to help homeowners, it "foamed the runway" for the banks. It appears Mr. Israel grabbed Tim Geitner's ear, most of us did not get that priveledge. Middle class hard working Americans who were going through a rough spot and have never asks for a government assistance in their lives, lose their home. Their credit ruined. Their dreams crushed. Mr. Israel apparently has several homes to fall back on, we did not. It makes me sick. I do not understand why the Republican party does not tell the American people that the 60 Billion dollars set aside to help responsible homeowners was a lie. The Independent Foreclosure Review which was supposed to remediate those cases that were "criminally foreclosed" is a sham and the AG's grabbed their 20 billion. I hope you stay the course and expose those politicians like Mr. Israel who got his help. With kindest regards, Beth Malone (225) 937-2123 bmalone1623@yahoo.com
Tom Dewick October 09, 2012 at 01:58 PM
Steve Israel is a Pelosibot.
Numbers lady October 14, 2012 at 07:56 AM
How dare you use your political influence to help you in your troubles when people who truly need assistance cannot get it because they do not have the title of Congressman in front of their name. Shame on you Steve Israel. No wonder our country is in the shape it is in today.

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