A Bankruptcy Cram Down is when the mortgage interest rate or principle can be modified in a bankruptcy. Instead of contacting the mortgage company for a modification or workout of the mortgage, a Chapter 13 is filed and modifications are made to the mortgage principle to reflect the actual value of the home or the interest rate and monthly payment is altered to a normal interest rate.

For years we have been able to avoid second mortgages on a home if the second mortgage has no equity. In 2009 our president introduced a change to the bankruptcy code that will allow bankruptcy judges to alter first mortgages as well. Although we will have to see exactly how this will work Cramdowns will allow the bankruptcy court to allow persons to alter predatory mortgages into mortgages that can be paid with reasonable rates.

Kentucky Mortgage Foreclosures Foreclosure Real Estate

Kentucky Real Estate Kentucky Mortgage Foreclosures

THIS IS AN ADVERTISEMENT