According to an article in the Star-Telegram, many Americans facing foreclosure and bankruptcy are calling their congressional representatives for help on financial issues.
The article said:
Rep. Mel Watt is used to dealing with constituents who need help with government agencies. But once Congress passed a $700 billion bailout of the banking system, some people started turning to the Charlotte Democrat for help with the private sector. They've asked him to assist their appeals of rejected loan applications from banks that collected federal bailout money.
Many Americans facing foreclosure and bankruptcy believe that because the government has bailed out several financial institutions, that the state should have some sway over how that money is distributed in the form of loans. But of course it hasn't worked out that way.
Just in case you were wondering or were a little confused about the issue, lawmakers have NO power over the lending decisions of financial institutions. In other words calling your congressman won't have much affect on forcing your mortgage company to modify a toxic mortgage to help you avoid foreclosure .
But calling your congressman regarding legislation to allow mortgage modifications during bankruptcy will help and go a long way in leveling the financial playing field between bankers and ordinary debtors facing foreclosure.