How did neighbor get away with this?

So the other night I heard my parents talking about an old neighbor in my old development we lived in. Shes only around 35-36 years old. She purchased her home during the boom 10 years ago for a little over $775,000. When my parents and other neighbor went on to check the public records online to make sure everything went through for our old house like the deed, mortgage pay off documents online, etc. It's all open to the public. So they looked her name up and it says she paid $775,000 for the home and took out two mortgages one for $620,000 and another for $155,000 when she bought and the mortgages in her name only. We heard he is in the mortgage industry her husband also. A little over 7 months later in July 2006 the home was slapped with a Pre-Foreclosure notice. The house was in pre-foreclosure for a little under 7 years until June 2013 the Pre-Foreclosure was stopped. Around 6 months later, the home was back in Pre-foreclosure again. Plus other records say they her and her husband filed bankruptcy each. Yet, she has a brand new $100,000 Jaguar and her husband drives a new $80,000 Mercedes sedan. What's wrong with the picture? Thank you, just confused when I am 22 and can't even get a car lease by myself when my parents have to cosign to help me or others around my age whose credit isn't so good yet.

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