Landlord question

[Tyco Bronye]

I have a friend here in Minneapolis who purchased a triplex in 2007 by a college to rent out. They had it about 2 years then let it go into foreclosure because the house was worth less than the amount owed on the mortgage in other words "underwater" . I can't understand it because the rents never changed, only the selling price of the house. If you never intend on selling the house why would you care what the house is currently worth on the market?

Yes I understand equity and that he couldn't get equity loans but he had no intention of doing this. His only response it "it's underwater"

Is there something I'm missing?

He's a guy that wanted to be rich through land lording. Now a foreclosure took him out of the real estate game entirely or so he thinks. It seems like that bubble bursting in 2008 would have been a good thing for him because he could have bought his next rental house for less money.

Any thoughts on this?