I've read real estate investment books that advocated getting interest only loans and refinancing every few years (to take out the equity), but that assumes the

I've read real estate investment books that advocated getting interest only loans and refinancing every few years (to take out the equity), but that assumes the value keeps going up. In this situation it didn't. But should the bank take responsibility for the market price of her home going down - by taking a loss on a loan and re-valuing the price of the house? No. She wouldn't be complaining if her house was now worth a million.