Cramdowns on Mortgages in Bankruptcy

Are you one of the many homeowners in need of mortgage bailout for your home? Is the amount  owed on your home more than the home is worth?  You may be in need of a cramdown. 

The term “Cramdown” simply means modifying the loan so that the Bankrupt person can afford to make the new lower payments. 

Cramdown is a word used in the Bankruptcy law. Cramdown allows bankruptcy courts to adjust SOME loans.   Part of the process is convincing the court that a proposed cramdown  is fair and equitable even though some creditors may protest. Judges right now have the power to cramdown second mortgages,  second homes, boats, cars, furniture and most other large priced items. 

Cramdowns on first mortgages on a consumer’s primary homes  are not yet allowed.  However, pending legislation may soon allow cramdown of first mortgages. Until then our Mortgage Modification Program is working.  A cramdown, set by a judge in court, will force the lender to take losses because of decrease in the  principal and/or interest rate.  The new cramdown legislation, if approved, will assist homeowners by allowing the bankruptcy courts to modify first mortgage. This will stop foreclosure and allow the homeowner to stay in their home at a payment that they can afford.  

The new law will be outstanding for homeowners that are in danger of losing their homes and really bad for creditors who hold the title to the mortgage. This economic stimulus recuperation package will become an important item in getting America back on its feet. It will save citizens from losing their homes and help every one get a new start on life in today’s economy.

Sign up for a free consultation and start your cramdown today.