ArnoldCountry

Mortgage Cramdowns: A Disaster in the Making

Bankruptcy cramdowns are a good thing but it only assists those in trouble. If you have the ability to repay your mortgage or have sufficient assets, you will not qualify for a Chapter 13 reorg. Cramdowns have been used for years in secured transactions using very strict rules. Bankruptcy judges have been quite fair for decades on this process. It was allowed on principal dwellings until the 2005 bankruptcy reform.