"that is just blatantly wrong .. what if that asset is collateral for their property ... what if the "liquidation" value is far below the original value."
I don't get that, you rarely hear of people using Assets other than property as collateral for property. In any case the bank would still want a mortgage over the property.
It is true that due to the entry and exit cost of property a home owner would sell other assets before selling the home and only sell the home as a last resort. These days mortgages repayments are usually less than renting
