Biggest equity extractions?

[nick_in_bothell]

I've been keeping my eyes open for the right property. One I'm really interested in has quite the history including getting a NTS in Oct 08 that was apparently put on hold due to the forclosure moritorium.

Sold in 2002 for $400k
Re-finance in June 2007 loan reaches $680k
Quit paying their mortgage in January 2008 ($4980/mo)
Rate change June 2008 pushes payments to ($5021/mo)

Drove bye a couple times this week and I'm pretty confident someone is still living there.

If you assume they're still not paying their mortgage (why would they start now?) they've lived in the house for almost 18 mos rent-free ($80k behind on mortgage) and took out $280k in spending money via the re-fi in 2006.

Anyone else stumble on documented examples of big equity extraction?

Nick