How are cram downs handled in your jurisdiction?

There have been a lot of conflicting stories regarding the treatment of mortgage cram downs and strip downs in the various bankruptcy courts.

Some attorneys have proposed cram downs on first mortgages and those Chapter 13 Plans have been confirmed.  Other attorneys have only been successful in proposing second mortgage cram downs but unable to do first mortgages.

Still, some attorneys are only able to propose cram downs for rental property while others only propose cram downs on primary residences.

In order to substantiate their success, attorneys I have spoken to refer to either Section 502 of the bankruptcy code or 11 USC 1322(b).

And because of all these variances, much confusion has developed.

I understand that the ability to cram down the first mortgage to the market value on the primary residence has passed the House of Representatives, it failed in the Senate.  However, I have spoken to attorneys who were able to get first mortgage cram downs approved in hardship situations.  (Note: The key word here is: hardship.)

Therefore, to help me with my research, I would sincerely appreciate you taking a moment and let me know how mortgage cram downs are handled in your jurisdiction.  I will accumulate the information and write a future article that contains a summary of my research.  Hopefully, together, we can determine the cause of this confusion and work in the best interest of protecting the debtor.

You can submit your response either by replying to this post or email your response privately to me at

Victoria Ring

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