If they borrowed all $800K, even at 4.5%, that’s a $4K - $5K monthly mortgage, including taxes and insurance. That’s a mortgage for someone making $200K+.
However, I don’t think that this woman and her family are going to be eligible for the anti-Christ Obama’s program, in that it’s likely that her loan-to-value ratio is way over 105%.
They probably bought the house for 600k, and mortaged it for the “assessed” value of $800 k, pocketing 200k and living the high life for the past couple years, until they spent all the money.
Now they are “victims”. That is they type of scam that has been going on all across the country, thanks to the “community re-investment act” and the “ACORN- Fanny Mae-Freddy mac” scam of bundling up all these mortgages and selling them on world wide bond markets as A-one long term investments that many insurance companies, pension plan management c’s bought into.