Wayne County Prosecutor Kym Worthy's home in northwest Detroit is in foreclosure, and she is in the process of selling it to a mortgage company.
Worthy issued a statement Wednesday about the foreclosure, which said a short sale for the home was pending acceptance.
She said she is negotiating with Countrywide Financial Corp., the mortgage holder.
In a short sale, the lender allows a financially distressed homeowner to sell the home for less than the mortgage due and the bank forgives part of the loan.
"A short sale for my home is pending acceptance by Countrywide, and there is an offer to purchase the property," Worthy said in the statement. "Communications with Countrywide are continuing."
Countrywide officials could not be reached for comment.
Wayne County treasurer records also show Worthy is delinquent on property taxes on the home at about $7,600. Worthy paid $337,500 for the home in 2004, according to Register of Deeds records.
In April, Worthy's financial woes were targeted in anonymous automated telephone calls saying she made $128,000 a year and owed thousands in taxes while sending her child to a pricey private school.
At that time, Worthy admitted she had a federal tax liability secured by a lien on her home. She said the liability came when she cashed in an IRA in 2003 to fund her run for prosecutor and that she was up-to-date on the payments. Worthy also owed 2006 and 2007 taxes on a rental property.
Worthy labeled the calls "a cowardly and vicious smear campaign. ... I will not be bullied and intimidated out of doing my job."
Political consultant Sam Riddle said Wednesday the financial situation may cause Worthy some embarrassment but won't hurt her politically.
"Kym Worthy is no different than the thousands of people in southeast Michigan whose houses are in foreclosure," Riddle said. "The reality is this mortgage foreclosure crisis cuts through all class lines. The prosecutor is a very human being, dealing with a human problem."
Detroit has often been among the leading cities in the number of foreclosures since the market crisis hit.
In 2004, the Free Press reported that records showed Worthy had not paid her county property taxes on time since 2000. During much of that time, she was a judge in the criminal division of the Wayne County Circuit Court. Worthy countered that she paid her bills when she received them.
Contact BEN SCHMITT at 313-223-4296 or firstname.lastname@example.org.
By Ben Schmitt & Joe Swickard, Detroit Free Press Staff Writers