It’s conceivable for someone to buy a house, say in 2002 for $500K with 0% down. House value goes up to $1m in 2007. Refi with 125% cash out. Stash the roughly $700K that they cashed out somewhere. Filed for bankruptcy. Heck, they don’t even have to wait for the bk record to go away. That’s plenty of cash to perhaps scoop up a similar house during the downturn. Now, 7 years later, bk record went away – continue to step two (refi cash out)….