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Mortgage Cramdowns: A Disaster in the Making

see Sajinnc-


The ONLY exception to cramdown is a homeowner after the credit card company sponsored bankruptcy update . Any owner of any other asset with secured debt can get a cram down on a plan filing


A cramdown option may ulimately be in everyone's best interest - the lender takes a lesser hit on the loan vs. foreclosure , the homeowner keeps the house with a supportable liability structure ( a lower price paid for the asset) , neighborhoods remain more stable , and the govt has to deal with fewer foreclosed assets as part of GSE support