Kentucky
CramDowns Mortgage Foreclosure Cram Down Modifications
Click here for your free
Bankruptcy Cramdown Modification & Foreclosure
Manual.
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.
Mortgage modifications can not currently be done on a
residential first mortgage by filing a Chapter 13
bankruptcy. Mortgage cramdowns and modifications can
be done on commercial and vacation home first mortgages.
For years we have been able to avoid second
mortgages on a home if the second mortgage has no equity. The
mortgage modification program introduced in 2009 has largely
failed with only 80% (750,000 of 4 million homeowners getting
home mortgages). Of the 750,000 modifications the bank did to
their own mortgages 97% of the homeowners went to more expensive
mortgages. Cramdowns allow the bankruptcy court to
alter predatory mortgages into mortgages that
can be paid with reasonable principle and interest rates.
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