She originally bought at 100K, then did a cash out refi for 154K, over 50% increase!!! (at 11% interest, apparently). In all of these sob stories, I have never, NEVER read a story that didn’t involve a cash out refi. If she would have kept the 100K loan, she would have equity, since her home is now worth 120K, and probably a much cheaper note. (even if the interest were the same, 11%, 100K for 30 years is 952, vs the 1450 she is paying now).
I love the part where she said that the appraiser told her the house was worth $154K, but she didn’t believe it, but still took out a loan for the entire appraised value.