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Mortgage woes fodder for campaign attack in Henderson

  • K.M. Cannon/Las Vegas Review-Journal

    Henderson City Councilwoman Gerri Schroder recites the pledge of allegiance at a ground-breaking ceremony at Wells Park on Thursday. Schroder, who is running for a second term, has come under attack from political opponent Tom Wagner for defaulting on her home loan. » Buy this photo

By Scott Wyland
LAS VEGAS REVIEW-JOURNAL
Posted: Mar. 31, 2011 | 7:18 p.m.
Updated: Apr. 1, 2011 | 7:29 a.m.

A Henderson city councilwoman who has defaulted on her home mortgage is taking criticism from a political opponent who contends her financial problems show she is ill-suited to handle the public's money.

Tom Wagner, a City Council candidate, sent a mailer this week bashing one-term incumbent Gerri Schroder for not making a house payment in six months.

It's common for candidates to use their rivals' financial troubles against them, but it does appear to be a new campaign twist to slam an opponent for falling behind on a home loan in the bad economy, a situation in which tens of thousands of Nevadans are mired.

Schroder and Wagner are among five candidates vying for the nonpartisan Ward 1 seat to represent eastern Henderson. If no one gets more than 50 percent of the vote in Tuesday's primary, the top two finishers will square off in the June 7 general election.

In the mailer, Wagner lays out in detail the notice of default that Schroder recently received. Wagner contends Schroder and her husband both have jobs and should not renege on their financial obligations.

"Do you honor your commitments?" the flier states. "Most hardworking men and women do."

Schroder called Wagner's criticisms "a personal attack on my family."

They are among the countless people ensnared in bad economic circumstances, she said. "It's ridiculous. If he's saying that about me, he's saying that about everybody who's going through this."

Her financial hardship has little to do with her day-to-day duties as a councilwoman, such as resolving neighborhood disputes, she said. On the city's budget matters, she defers to the finance director and other experts, she added.

HOW IT HAPPENED

Schroder said she fell behind on her $1,600-per-month house payments last year after her husband had an extended period of unemployment. He lost his job as a warehouse manager for System Supplies in August 2009 when the company went under, she said.

His jobless benefits ran out in March 2010, leaving them with nothing but her $42,000 salary as councilwoman to support their family, she said. He since has gotten a job installing campaign signs, but it's seasonal work that pays a fraction of what his old job did, she said.

They are working on loan modification with the bank, which has suspended foreclosure proceedings, Schroder said. They are current on all their other bills, she said.

Wagner argues that he is raising a legitimate issue.

"I don't think it's negative on our part," Wagner said. "It's informing the public. When you're an elected official and you're responsible for the government's money, you're fiscally responsible for your home."

The Schroders bought their home in 1999 for about $135,000 and refinanced it in 2005 for $168,000, Wagner said. So they are different from the families who bought houses during the overheated boom and wound up underwater on their mortgages when the market collapsed, he said.

Wagner said he took a second mortgage on the Henderson house he moved out of after his divorce and is finding a way to pay it.

Nevada led the nation most of last year in foreclosure activity. In 2010, there were about 165,000 foreclosure filings and almost 35,000 foreclosure sales in the state.

NEW CAMPAIGN APPROACH

A political analyst said he couldn't recall a candidate assailing another for teetering on foreclosure.

Given the prolonged recession and depressed housing market, it was bound to happen, said David Damore, political science professor at the University of Nevada, Las Vegas.

In municipal races, which lack juicy issues, a challenger is more apt to dig up personal dirt to discredit an incumbent, Damore said. But Wagner's tactic could backfire because so many people are struggling to stay in their homes, he said.

"A lot of people are going to empathize with her," Damore said.

Still, Wagner is turning Schroder's slogan against her, in which she declares, "Honesty and integrity do matter."

Wagner's mailer is the latest volley in what is becoming a heated skirmish. Schroder recently mailed fliers calling Wagner a "carpetbagger" because he moved into Ward 1 in January, just in time to enter the race against her.

In that mailer, she contends that he and Clark County Commissioner Steve Sisolak seek to consolidate police and fire services in the entire valley, a move she argues would put the public at risk.

Both Wagner and Sisolak say that her statement is false and that they oppose merging the services.

Wagner said he began leasing a house in Ward 1 after he divorced.

He moved out of the house he owned in north Henderson because he didn't need a place that big, he said. He rented it to two men.

But Schroder questioned Wagner's timing and stood firm on labeling him a carpetbagger. His latest attack shows he cares more about trying to win than serving the area where she has lived for 20 years, she said.

"It really has nothing to do with the issues in the city of Henderson," Schroder said.

Contact reporter Scott Wyland at swyland@reviewjournal.com or 702-455-4519.

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  1. mrability Apr. 1, 2011 | 9:37 p.m. Report Abuse

    listen to all the desperate home suckers

  2. Vulcan Logic Apr. 1, 2011 | 9:03 p.m. Report Abuse

    I would like to point out that my property taxes are included in my mortgage. I would like to point out that those property taxes pay the salary of City Employees. I would like to point out that of all of the Municipal Elected Officials in Henderson, Gerri Schroder is the only person who submits receipts for gas reimbursement. I would like to point out that Tom Wagner's cellphone number is on his mailers. I would like to point out that Gerri's is not. I would like to point out that the Campaign Contribution & Expense Report (C&E's for those in the know) show Tom Wagner's expenses listed in a clear and concise manner for signs, mailers, payroll, etc...Whereas Gerri's list one expense (to her campaign manager) for $60,000. I would like to point out that Gerri's husband has worked in the political sign business in the past. I would like to point out that Tom Wagner knocked on my door today even though I (used to, until he left) have a Gerri Schroder yard sign. I would like to point out that ex-politicians get six-figure lobbying jobs after leaving office, and that said six-figure jobs make it easier to pay for mortgages. I would like to point out that it is only logical.

  3. jayded Apr. 1, 2011 | 8:08 p.m. Report Abuse

    JaaaJaaa - It's not that I'm defending these airheads. Quit defending an uncool jerk that thinks his poop smells like tulips just because someone else happens to be having hard times thru no fault of her own. Only a fool laughs at the devil. I'll bet his moral compass isn't so straight that he has room to question others'. If he wants to run on the issues, that's one thing. But for someone that is divorced to gossip and lie about someone else's personal business in a campaign, that is not only pretty childish, it's creepy.

  4. JaaaJaaa Apr. 1, 2011 | 8:06 p.m. Report Abuse

    Yo, dude! Sup? Don't be haten. Be easy.

  5. Jack.Webb Apr. 1, 2011 | 7:50 p.m. Report Abuse

    JJ's arguments are at a junior-high level of sophistication, and at an even lower level of emotional maturity.

  6. JaaaJaaa Apr. 1, 2011 | 7:16 p.m. Report Abuse

    jayded: I never said 'dingbat' didn't deserve to be fired. Re-read my post. In fact, I agree. She certainly did deserve to be fired...she was terrible. But her performance, or the performance of any other 'dingbat', does not give management (or in this case, the city council), the right to not properly fire her. This is something that unions have fought for, and continue to fight for. Wrongful termination....can't do it...it protects workers, no matter how awful their job performance is. Peck deserved to be fired. The city council did not follow the LAW and fire her as they should have. It's their fault. They didn't do their homework. Stop defending these airheads.

  7. JaaaJaaa Apr. 1, 2011 | 7:10 p.m. Report Abuse

    Jack.Webb: You're both guys? Fooled me.

  8. jayded Apr. 1, 2011 | 6:37 p.m. Report Abuse

    @gbigs - ahahahahahahah!!!!! That's a good one. Anyone that stiffs a lender who gave them money in good faith??? LMAO!!!! You're hilarious. First off, the lender did not "give" her money. They loaned it to her. Big difference. And secondly, anyone that has any sympathy for the lenders out there after they got bailed out by OUR TAX DOLLARS only to turn around and hand over that money to their executives in bonuses - they are below the bottom of the pile. Again, nice try, but since she stiffed no one and is simply modifying her loan, you really should worry about your own problems. Who knows, you may have a perfect life now, but something could happen later on down the road that is beyond your control, and you may wind up eating your words.

  9. Jack.Webb Apr. 1, 2011 | 6:29 p.m. Report Abuse

    "JaaaJaaa wrote on April 01, 2011 05:05 PM: Wow. I think jayded and Jack.Webb are getting hot under the collar. Maybe they should date."

    Do you frequently have homoerotic fantasies?

  10. gbigs Apr. 1, 2011 | 6:27 p.m. Report Abuse

    @jayded insist on being a knucklehead? this woman is a deadbeat, dreg, likely tax evader, who knows what else. anyone that stiffs a lender, who gave money in good faith, is on the bottom of the pile.

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