Is possible to owe $500,000 for a home when you paid $125,000 back in 2004?

[Anonymous]

Is possible to owe $500,000 for a home when you paid $125,000 back in 2004?

I saw a gofund me account on this TikTok Creater asking money for to save his childhood home. I did some basic research and he paid $125,000 for it back in 2004.
NOW he has a gofund me account and is on TIKTOK asking for $500,000 to save his home or it will be going into Foreclosure .. How is this possible ?

[Anonymous]

Yes, they could have taken out a home equity loan or reverse mortgage. Home equity loan is most likely the answer if the person is telling the truth about the amount owed.

[Anonymous]

Yes, perfectly possible. They might have renovated it and combined with the normal appreciation they could have been able to borrow against the equity. That said it is ridiculous to set up a go fund me to finance someone’s poor financial choices. 500k is a lot to ask for.

[Anonymous]

Sure if they took out equity. This is how people lose their homes.

[Anonymous]

Anonymous wrote:Yes, perfectly possible. They might have renovated it and combined with the normal appreciation they could have been able to borrow against the equity. That said it is ridiculous to set up a go fund me to finance someone’s poor financial choices. 500k is a lot to ask for.

people already donated like $40,000....

[Anonymous]

A guy died of old age in my town in 2007 with a 625k mortgage on a home he bought for 14k in 1955. I saw the bank selling it and kinda shocked. He just kept cashing out equity

[Anonymous]

Scammers scam fools.

[Anonymous]

My ILs do 🙄 poor money management for sure

[Anonymous]

Really poor money management, gambler likely. Sheesh.

[Anonymous]

Home equity lines.

Tax liens.

[Anonymous]

I have a friend who bought her home 27 years ago for $250,000. They should be in the sweet spot now of paying down the last of the principal. They've taken out a second, refinanced several times and taken out more. They now owe $600,000. The house has gone way up in value so they can do this but when does it end? They are in their 60s.

Lots of people got burned in 2008 doing this and got foreclosed when they couldn't afford their huge mortgages after layoffs.

[Anonymous]

They keep refinancing. Several people I know did this... they are heavily in debt.

[Anonymous]

also possible its all a scam.

[Anonymous]

If they’re in Maryland, you can look up the refinancings in the land records. You need a free account. It won’t show interest rates but it will show the loan amount.

[Anonymous]

My neighborhood is full of old homes that have increased a lot in value, and people do cash out refis to pay for renovations. As long as everything is within reason, it seems perfectly acceptable/normal to me and probably the best way to access credit for a renovation if you’re going to use it. People’s incomes go up too and sometimes they would rather renovate and have a bigger mortgage than sell and move.