[jjav]

> 1) they got a million dollar windfall

You're looking at it stricly as if housing was a investment to be cashed out, as opposed to a place to settle down and live life.

There is no windfall. They got kicked out of their home by being forced to sell it.

Is the $1M a lot? Well, they are now homeless. If the property values rose so much that they got the million, all other properties rose as well and being now homeless they still need to buy a new home. It'll have to be much smaller or maybe there's nothing affordable available anymore so they have to uproot life (jobs, schools, friends, family, doctors) and move to a much cheaper city.

Very cruel, and all because some richer people want to move in and take over? That's the kind of abuse that leads to things like Prop13.

> #3 cash-out refinance continuously

This is completely unrealistic. You can't pay a recurring cost by going farther into debt every year if you can never pay it back.