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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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What are the requirements to get a cram down on my mortgage

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What are the requirements to get a "cram down" on my mortgage during a bankruptcy hearing?

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open forum. Do you understand and accept these provisions as well as's disclaimer?

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Customer: replied 6 years ago.

A Chapter 13 bankruptcy may also be used to strip away a 2nd mortgage if the first mortgage equals or exceeds the value of the property. This is sometimes referred to as a cramdown. The wholly unsecured 2nd mortgage is treated in a chapter 13 plan as an unsecured creditor
Customer: replied 6 years ago.
my mortgage is 161k and includes the 5k second which was used for closing costs and is owned by the same bank. My homestead condo is only worth 40k and we would like to keep it if they would lower the ballance closer to the market. Is there any likelihood of them doing that during bankruptcy?
No. The bankruptcy court does not have the power to reduce the principal amount of the mortgage. The result would be that the 2nd mortgage would be stripped but you would be left with the first mortgage
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