A cramdown is the alteration of mortgage terms to help a borrower avoid foreclosure. This can involve reducing the interest rate, extending the loan term, or reducing the principal balance. The changes are made without the lender's consent and are often initiated by bankruptcy courts.

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What Is a Cramdown

Question 38

Multiple Choice

What is a cramdown?

A) Altering mortgage terms in an attempt to keep borrowers from foreclosure
B) Sending your banker lots of cakes and cookies
C) Shoving money at your banker
D) All of the choices are correct.

Correct Answer: