I've heard that they did this before the crash, but after they have become smarter in their due diligence and now require credit checks,  background checks, tax returns, etc. 

She did a cash out refi before 2008, then when the market crashed she was underwater and couldn't pay so she did a hardship refi which took $21k out of the payment, but created a 2nd lien on the property for that amount.

Took a hit when the market crashed.

This was in Florida and the market was still crashing.

Apologies if this is convoluted - I've been giving myself a 24 hour crash course, so trying to get up to speed and still gaps in my knowledge. 

Condos tend to be the first ones to crash with a bubble. 

The Venice property took a bit of a hit during the crash years, but never went upside down.

Biggest concern i have right now is when is this market going to roll over...3 years ago i felt we were going to get another crash.

One who leverage heavily before crash had a bitter experience.

But its 30k to put it back together and its only worth 38k to a buy and holder as the market crashed as we know in many of these mid west markets and really has not rebounded.