[slickrick216]

If you get into financial difficulty and need to remortgage your house technically you would have to pay capital gains on it with this rule.

Which punishes poor people for being poor.

[dnautics]

Mostly middle and lower-middle class people really, though imagine it applying to pawn shop collateralized loans. It would probably be deployed in that fashion in some misguided fashion 'to discourage usury', at which point it will really fuck over the poor.

When you take out a collateralized loan, you still have to pay it back.