Financing your swimming pool

[bobyoe]

I just would be sooooo nervous to finance 125% of my home's value. Just me maybe.
Boby

[GTakacs]

I just would be sooooo nervous to finance 125% of my home's value. Just me maybe.
Boby

Why? It actually gives you a better chance of holding onto the house if you can't make the payments. The bank that financed the 3rd lien that is 25% over the value would get nothing if they foreclosed, so they'd be more inclined to let you miss a few payments and make it up later than sell off your house.

I'm not condoning maxing out credit cards or foreclosing on houses, but I think borrowing more on a house than it's worth is just fine. What is the worst that can happen?