Change the Law: Returning mortgage principal reduction power to bankruptcy judges

Posted by ft Editorial Staff | Apr 10, 2012 | Change The Law, Real Estate | 1

In order to force lenders to take serious steps towards meaningful loan modifications for insolvent negative equity homeowners, lenders must have competition to do so in the form of judicial cramdowns in bankruptcy (as they did before 2006). The return of hundreds of thousands of California homeowners to solvency is a social and economic good voluntarily accomplished by the lender or involuntarily imposed on them by the bankruptcy courts.

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Cramdowns, cramdowns, cramdowns

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ft Editorial Staff

is the production staff comprised of legal editor Fred Crane, writer-editors Connor P. Wallmark, Carrie B. Reyes, Amy Platero, David Swistock, consulting instructor Summer Goralik, graphic designer Mary LaRochelle, video instructor Bill Mansfield and video editors John Rojas, Quinn Stevenson and Jose Melendez Avila.

1 Comment

monica chandler on May 7, 2014 at 11:56 am

Can you do a cramdown on 6 properties if five are rentals and one is owner occupied,or do you have to do chapter 11? Also their is a revocable trust involved?
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