$200k Down on a House in Foreclosure

[freedomnow7]

This morning I was watching the news (Los Angeles area). There was an event at the Convention Center sponsored by a non-profit that was helping people avoid foreclosure.

A reporter interviewed a lady that was standing in line. She said that she was a widow, and had put down 200k on her house, which is now worth 232k (for those of you that are familiar, she lived in Rancho Cucamonga, about an hour outside of LA).

This has bothered me the whole day. I know that people/banks consider home purchasing an investment, but let's just say her home was purchased for 500k...should the bank be able to just snatch her property if she defaults for whatever reason? And, yes, I know that the banks are in it to make a profit...yes, I know that she's the one who defaulted, but doggone, 200k down on a house and almost being forced to walk away? That just seems wrong!

[Meatstick]

That would not be a very good situation to be facing and although it does suck there is not much any of us can do about it. I myself would never put that kind of money down, she could have used some of that to keep up her payments.

The house we bought is now over 60% underwater and we did not reaffirm but are keeping up the payments. Sometimes you just have to wonder if she was + $200k in equity would she then be calling the bank to give that money back ????