My former neighbors purchased their home in 1994 for $278,000 and they just lost it in foreclosure last month!  When I found this out I immediately pulled a title report to see what the heck happened.  Turns out they had mortgaged the heck out of their home over the years but here is the kicker...The property is a 1,500 square foot home and its not in the best condition but some how they managed to take a loan out in October 2007 for $810,000  GO FIGURE!  I have lived on this street for 25 years and I know first hand that the property has NEVER been worth $810,000! Now who knows what the circumstances were for refinancing, sadly I do know that one of the owners has been quite sick which would explain why they had to pull money out.  What I don't understand is how a lender/mortgage broker was able to get a loan approved for that amount of money!

The property is now owned by US Bank and is expected to go on the market in the low $600,000 range.