What is a "cram down"?

A cram down is when a bankruptcy judge reduces the amount of a debt in a bankruptcy proceeding, often at the objection of one or more creditors.  Right now, cram downs of mortgages on primary residences are not allowed in federal bankruptcy cases but proposed legislation will make the practice a legal remedy that judges can use to modify mortgages on a primary residences.

If you have filed for bankruptcy contact your attorney and ask him or her how the proposed regulations will affect your case.

 "the first offer they make, may only be designed to lock you into a longer term loan often with teaser rates and negative amortization"

If you want to avoid bankruptcy and modify the mortgage on your primary home, you may be able to ask your lender to change the terms of your original note,  Often they will flatly deny you if you are not at least 60 day behind in payments.  If they are interested in a loan modification , the first offer they make, may only be designed to lock you into a longer term loan often with teaser rates and negative amortization. 

Many loan servicing companies, who collect payment and pass them on to investors often have no incentive to modify loans and also risk being sued by investors if they do.  Before you agree to any modification, have the documents reviewed by a loan modificaiton attorney .

Good info. It's important for people to understand that there is no free lunch and make your choices wisely. Modification has long term consequences.