[quote=spdrun]I wouldn’t use that as a blanket statement. Something like “do not take on more debt if you’re above 50% debt-to-value” would be more appropriate. Prices dropping by more than 50% would be pretty unlikely.[/quote]
Theoretically their house had it’s highest value (according to zillow – and I know that’s suspect) in 2005 at $1.1 million. They sold at almost the low – $550,000. It’s funny money, I know, but still hard to believe. If he hadn’t touched the equity but lost his business and sold, he could have cleared at least $400,000 and then bought a flipper – clearly he had the skills. Just such a shame for those kids.
