Who benefits from bailout?

Re “Toxic-loan plan never got rolling,” Nov. 13

Treasury Secretary Henry M. Paulson says that our house is a toxic asset.

We bought it at the height of the market, and we owe more than it is worth. My husband lost his job of 26 years in July. We have tried contacting our congressman without success. We also have contacted our mortgage companies in order to hopefully have our mortgage modified. No luck there because we are current with our loan. Does this mean we should opt for foreclosure to get their attention?

Who will this financial windfall benefit if it isn’t helping hardworking people in the middle class to keep their homes?

Karen E. Van Cleve

Granada Hills

In order to buy toxic loans, mostly mortgages, the Treasury would have been required to value the underlying properties. Because the mortgage holder couldn’t get any more for that asset in foreclosure than the property would be worth, isn’t it obvious that helping the property owner would be a better bet than buying the asset at present value, having the bank write off the loss and the owner get evicted?

Of course, Paulson wouldn’t want that obvious fact to come to light. He wants to make sure all the taxpayer money goes directly to his pals on Wall Street.

Lester Ostroy

Redondo Beach