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Las Vegas Real Estate Update-Judicial Mortgage Cramdowns

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Uploaded by on Feb 2, 2009

Veteran Las Vegas real estate agents Kendall Trotter and Steve Hawks discuss some new bankrupcy laws currently being considered by congress, including the power of a judge to not only reduce or wipe out a second mortgage, but also do the same on a first mortgage.

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  • The future consequences are not so bad, if the cramdown can only go down to the market value, and banks are more careful to only lend up to the "future minimum value" they should foresee. The disaster is not from an individual's inability to make payments, it is from the loan being for more than the value of the collateral. And especially less than the fire-sale value of the collateral. No crazy loans = no incentive to walk away later.

  • These Cramdown proposals are a load of crap. Thanks for the education.

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