HELOC abuse creates distressed properties Many distressed properties are a result of people who overborrowed at the peak. Many others come from people who borrowed themselves into oblivion. The owner of today’s featured property paid $335,000 on 10/30/1989. I don’t have their original loan data, but they likely put 20% down ($67,000) and borrowed $268,000. On 8/27/1998 they borrowed $287,500 and $35,000 on new first and second mortgages. On 8/11/1999 they borrowed $53,465 on a new stand-alone second. On 10/16/2001 [Read More...]