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What does "crammed down" mean?

Defaults on second-home mortgages are often handled differently than those of primary homes. The mortgage balances, for instance, can be reduced in bankruptcy court -- "crammed down" is the industry term -- to their market values. That can wipe out a good portion of what borrowers owe, which banks hate. As a result, they often require a 50% down payment for second homes.

Preparing Americans for Hyperinflation

Be Proactive in resolving inflated value mortgage properties issues

Borrowers must be proactive in renegotiating loans made during periods of excessive valuations. In todays market non-recourse debt is possible

Nonrecourse debt or a nonrecourse loan is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender/issuer can seize the collateral, but the lender's recovery is limited to the collateral. If the property is insufficient to cover the outstanding loan balance (for example, if real estate prices have dropped), the difference between the value of the collateral and the loan value becomes a loss for the lender.^[1] Thus, non-recourse debt is typically limited to 50% or 60% loan-to-value ratios, so that the property itself provides "overcollateralization" of the loan. The purpose of non-recourse debt is to require lenders to underwrite their loans on a sustainable and prudent basis since the lender is in the first-loss position with these loans, not the borrower.

How To Turn A Potential Default Into A Foreclosure In 10 Easy Steps

(Clutch defeat from the jaws of victory)

Procrastinate. Denial is so comforting. Deal with weak tenants and lease defaults after they have crossed over the tipping point. Playing catch-up with occupancy and collections is much more exciting.
If you have a problem with leasing, tenant retention, marketing, financing or dispositions, go it alone and do not hire the best expert possible. Talk to every person who calls you; waste valuable time.
Do not bother with immersing yourself in your submarket, ignore the competition. Do not sitewalk a competitor's property. Do not perform a market study or learn more about rental rates, CAM charges or the sublease market. If you own multi-family, do not "shop" the market. Ignore the early signs of the market changing. See #2.
Borrow money and lien the property in violation of your loan covenants. A technical default is not the same as a monetary default... ...right?
Ignore the asset value. Do not appraise the property. If you obtain an appraisal, refuse to accept the value opinion of the appraiser. Waste time since time is not on your side. See #2.
Ignore the state of the capital markets. The availability of debt and / or equity and the terms thereof are best dealt with when you have run out of time.
Assume that the current economy will not affect your situation; the market conditions will change for the better before your loan comes due. Rental rates and tenant demand will increase. The major tenant will come out of bankruptcy, cap rates will compress, and the lender will grant an extension without additional equity. Do not consider a sale or joint venture. See #2.
Avoid contacting the lender. Do not inform the lender sooner - better to wait until your options have run out. If the lender contacts you, become aggressive and hostile. Set the stage for an acrimonious negotiation.
Do not produce a viable business plan and a "win-win" written workout strategy. Do not bother with reading the loan documents. Skip the 5 year cash flow projection based upon reality.
Retain a litigator out of the box. Make sure your file is moved from servicing to legal in the shortest time. Do not worry too much about the carve-outs or the personal recourse provisions of your note.

Most importantly, whatever you do, DO NOT hire experts to assist.