“You’re in Such a Mess, I Don’t Even Know Where To Start”

[@mexicanboy92840]

I never understand how some people can say they "outgrew their house". They be having 3 bedrooms home with 1 child and act like they can't walk in there.

[@KL9702.]

For real 😂

[@AlanThomas-hp3fn]

HER DISATIFACTION OUT GROWS THE HOUSE.

[@Ourlittlehomesteadlife]

Truth. We have a family of 7 in a 3 bedroom house. 😂

[@AlanThomas-hp3fn]

@Ourlittlehomesteadlife Grew up in a farm family of 12. Parents' bead room downstairs. Up stairs devided, righ side beds for the boys left side for the girls. Heating system in the basement. Everybody survives just fine

[@Ourlittlehomesteadlife]

@AlanThomas-hp3fn I'd love to have a few more. Even in our small home. ❤️ We have a small homestead. Chickens and a milk cow. Pigs and meat birds in Spring.

[@kokoskokso]

Oh boy, seems like one of those Ramsey videos that makes me grateful for my own situation.

[@ugabuga1361]

Basically dad and mom screwed their kid… bless their hearts. Parents probably not good with money so as to be expected

[@joelfenner9179]

That's most Ramsey videos

[@RoccoRyg]

That's pretty much the only reason I watch this show.

[@miketheyunggod2534]

You’re horrible.

[@lisahinkofer2085]

Amen right. Glad I’m where I’m at. What a mess this is.

[@pegzpat]

Dave is absolutely right when he says theres nothing wrong with renting when you cant afford a house.

[@brucewayne3892]

Nothing wrong with renting if you can't afford to buy. But if you can't afford to buy and have no tangible plan to be able to afford it, you do have a problem

[@JFDSmit-rm6tw]

I've picked that up through the years, he would even tell people to rather rent until they can put down a deposit rather than go into the sale with payments they eventually will not be able to afford.

[@Matt90541]

there is nothing wrong with renting when you CAN afford to buy a house. In fact, depending where you are from renting makes more financial sense than buying.

[@JoelWende]

@@brucewayne3892That’s a very US centric view (which is perfectly ok as it’s a US centric show) but throughout the UK and Europe lifelong rental is a perfectly normal thing.

[@brucewayne3892]

@@JoelWende yeah but Europe is a failing content. So....

[@today7518]

Had neighbors with wife constantly saying they "needed bigger house", and got big, new house...leading right into money issues and divorce.

[@oldgeezer2780]

I sort of sigh when I hear "we outgrew the house." When I was growing up, it was common for families with three or four children to live in a three bedroom house with one bathroom. Kids shared bedrroms. People found a way to get washed up and out in the morning, even if Mom worked, too.

[@mrsh2167]

Growing up, family of 10 across the street, with one shower, and nobody ever smelled

[@ronhall5395]

I grew up in a house of about 2500 sq. Ft. Big for our neighborhood. Eight kids and two parents. No problem with the rooml. You shared your space. One bathroom, now that was a problem. You had to schedule your time in there. I remember being in there taking a dump and my mom or sister in there doing make up. Awkward for sure. Even locking the door to take a shower and Have a sister come barging in. Using a coat hanger, you could unlock the door. Lol. I always just waited or went out behind the barn if I got desperate. Oh, Dad converted a lot of living space into bedrooms. .In the end of my 20 yrs of living there we had 7 bedrooms and two baths. My youngest brother and I still shared a bedroom. It just seemed like a waste of time to move into one of the then empty bedrooms.

[@joannebrauer2688]

Yes, I lived that way.

[@monicastricker3582]

My friend lives in a less than 1000 sq ft house with his wife and two kids. They totally redid it. They love it and it will be paid off in January.

[@noahsgarden7072]

Ashamed to admit this is my favorite type of ramsey content

[@ayo_k32]

I learn the most from these types of situations

[@PInk77W1]

Train Wreck

[@danlc95]

Hey, you like what you like.

[@nailatiylluf]

It might sound silly but hearing this stuff over and over scared me into realizing you have to assume things will go sideways and it’s not your fault if someone else didn’t prepare for it.

[@robertthompson5908]

Same here.

[@diceportz7107]

We out grew our current house. Whaaaaat??I came from a large family, we slept multiple kids to a bed. We made it work because that was the house that my parents had.

[@vickieclark5931]

It's just a justification to spend more money and get a bigger house. Just like when people go into 80k debt for a brand new car. People justify their stupidity.

[@dudeorduuude5211]

Agreed. My husband and I live in a 1 bedroom condo, with a baby on the way. We don't have enough yet for a down-payment for a house. We will make it work.

[@mamamoney3746]

I have 9 kids and we built a 960 sq foot home in cash and lived there until we sold and used the sale to buy double the sq foot - 969 was tight but not horrible. They didn’t need the space that’s an excuse !

[@aanfimova]

Don’t be! Sometimes you learn way more hearing what’s NOT to do 😉

[@Josh-lp2ng]

@@mamamoney374611 people in under 1000 square feet sounds pretty uncomfortable to me!

[@Elizabeth_lowkeyluxuries]

Anytime a parent comes to you with a "deal", have a talk with an attorney before you do anything.

[@ryanyoung9202]

🤣🤣🤣🤣

[@diegoflores3967]

Lmfao America 😂

[@levioneill5388]

Sorry you had bad parents

[@cassieblack1776]

Literally! It’s crazy the parents agreed to this. Or allowed this.

[@StefaniaP880]

​@@diegoflores3967 not only in the us, be serious. Speaking as an european

[@wildfire4175]

I refuse to be house poor. I'll live in an RV before I go broke for a house

[@victorkreitner754]

Even worse striking deals with family members. A sure way to be hearing about it 24/7 when something goes wrong. I want to strike out and learn on my own with no family involved. My old man always told me no free lunches in the world, well there's no free lunches when it comes to family wheeling and dealing. It always ends in a disaster and with someone getting hurt.

[@crowtservo]

My uncle has a friend whose wife kicked him out. He took his RV to my uncle’s house and pays him $200 a month for “rent”. Has his RV hooked up to my uncle’s electricity and water/sewer.

[@davidmercado2329]

I also refused to that after hearing horror histories in Dave Ramsey show and also listening to Warren buffets talk about the margin of safety concept

[@tonytoni1150]

@@crowtservo that’s crazy 😂 That electric bill is gonna be thru the roof lol

[@parler8698]

Same

[@cutehumor]

The parents are using their son for their retirement income. reverse screw

[@jimmymcgill6778]

How did they screw him?

[@cutehumor]

@@Netizen_101 relisten to the phone call, he doesn't "own" the home. The home is still in his parent's name. He is renting the home from the parents. All this 'home equity" stuff hasn't happened yet. The reverse screw: The parents are getting their son to pay off their mortgage. The parents probably know the son's income is not high enough to qualify for a home loan.

[@TitoMolina604]

​@@cutehumorson could've said no.

[@garykeith1048]

@@TitoMolina604 The son sounds like a clueless idiot. He doesn't seem to realize you don't own a car or a house unless your name is on the title. He doesn't seem to know the basics of buying a house or financing a house. I real sorry for his wife marrying such a clueless financial illiterate.

[@ericdevaux991]

@@TitoMolina604 It is really really really hard for a lot of people to say "no" to their parents. Especially if the parents are at all manipulative. It's called "adult child abuse"

[@robertthompson5908]

1) should have gotten out of debt before trying to upgrade their house. 2) shouldn’t have tried to buy a house they couldn’t afford 3) shouldn’t have gotten into a deal with their relatives.

[@cathy7824]

Can't pay his bills so he buys a bigger house

[@jimj2388]

this happens all the time

[@josephmorales8368]

Parents knowing that is just awful

[@raccuia1]

They have to have their cake and eat it too. Ya got a smaller house. Nah, that's not good enough because it will look bad.

[@Loljjkb]

People need to work on their self worth and insecurities. Buying these house when you know you can’t afford is solely because they have bruised ego and insecurity.

[@colbyallen5750]

Also “family” so it “will just work out.” As someone who did a hard money deal on a house with parents that fell through, it doesn’t always work.

[@garykeith1048]

The guy is not even close to buying the house. He needs to get his vocabulary and thought processes in line with reality. He seems to be totally clueless about real estate and financing a home purchase. He needs to disengage from his parents, act like a grown man, and buy a house from an outsider. This nonsense of depending on the parents to purchase a home needs to go.

[@Poooridge123]

Bro said he made 75k a year and his take home is 72k? The IRS has questions

[@BearsRule777]

I'm confused as well. The caller has no idea what "take home" pay is.

[@justinschexnayder8485]

Prob just paying state tax

[@eguevara4803]

@@justinschexnayder8485Texas has no State tax

[@someonethirsty1957]

Could have a bunch of kids.

[@tnolan3176]

@@someonethirsty1957 He said they have one kid ! So his first house was a 3 bedroom how did they out grow it !

[@robloxvids2233]

The son is basically a reverse mortgage company now. But with no legal recourse. Ridiculous. People please don't "help your parents out" by buying their home from them. Tell them to put it on the open market and get the best deal. And you live wherever the FLIP you want. I don't trust your parents.

[@thomasdalton1508]

They should have legal recourse, just secondary to the bank that has the mortgage. If the parents don't have any other assets, they might be judgment proof after the house is foreclosed on, though.

[@tywebbgolfenthusiast8950]

I bought my parents house. Paid appraised value for 5 acres of land with a house my dad built himself. We’ve been here for 17 years and couldn’t be happier.

[@samb202]

No this would have been a great deal if they looked into seller finance a bit. Dave is wrong about the due on sale clause. Check out Pace Morby.

[@FortuneSeek3rz]

They have nowhere to go to pay off the 30k. Wife doesn't work, two kids, energy bill just went up trying to heat and cool the bigger home. Dude needs a raise very soon.

[@andidede3653]

He needs a wake up to reality moment before a raise.

[@bryandelcid4065]

Parents taking advantage of the housing situation and decided to make profit off their kid. Sad. He should’ve stuck with his previous house and said “no thank you, go hustle someone else.”

[@UsernameUnkwn21]

Just bc he is their kid they should take a bath and have nothing to retire on?? He said he needed a bigger home , they are selling him their bigger home below market, he could have stayed in his little house and built on

[@jimroscovius]

​@@UsernameUnkwn21No, they aren't selling it to him. If they were, his name would be on the mortgage. They're just renting it to him. Bad deal all around.

[@mikemcconeghy4658]

If your name is not on the loan, then you can't call the mortgage company to ask about it.

[@Fishouta]

Dave, the 90k left on the mortgage does not tell you what the mortgage payment is. You were thinking 90k re-amortized. The mortgage payment could easily be 2k and that is what they are asking in rent to own.

[@logdon17]

Seriously, how does he not understand current balance means nothing for the monthly payment unless the loan is recast.....

[@Fishouta]

@@logdon17 Ugh. These podcasts are getting like....ugh

[@kivekkulat5114]

Just to clarify even in this scenario where the mortgage payment is $2000 the parents are making money it’s just in the form of paying down the balance on mortgage rather then cash in hand.

[@CecileEdwards]

My best friend came from a family of 10 children and they lived in a little house. It had three small bedrooms and of course her parents took the one bedroom so that left two bedrooms for the kids, but they managed one bathroom.and they grew up to be the nicest greatest people most of them are educated and they’re just kind wonderful people her and I are still friends for 61 years she’s just a joy to be around just wonderful and so are all the other kids and her family not kids anymore. I just wish more people could be like that.

[@BrianShannon241]

The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.

[@LucasSmith715]

Money invested is far better than money saved , when you invest it gives you the opportunity to increase your financial worth.

[@KaylaAlexis.]

It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.

[@Francesjean432]

The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn't depend on government paycheck, especially with the current economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.

[@EmilyNora234]

Many individuals report success in investing in stocks, forex, and cryptocurrency (Bitcoin), yet I continue to struggle. Can somebody help me out or advise me on what to do?

[@MaryBegay350]

Even with the right technique and assets some investors would still make more than others. As an investor, you should've known that by now that nothing beats experience and that's final. Personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to $35k, withdraw my profit right before the correction and now I'm buying again.

[@kendrapratt2098]

Dude can’t even explain what kinda situation they have going on here 😆 1:46 Dave’s face cracked me up 😆

[@TheSecondWitness]

Exactly. It's like pulling teeth getting information out of this guy. He just babbles on and on, is super unclear, and I don't think he even knows what he's saying.

[@robertjetski8736]

What about 3:15 when Dave learns how much savings they got?😣

[@garykeith1048]

@@TheSecondWitness I feel sorry for his wife marrying this jerk.

[@garys.1415]

Correct me if I’m wrong but the original loan was for 300k+. The parents are locked in at whatever that payment is. So, the mortgage payment could be $2k and the majority of it is going to equity on the $90k remaining.

[@JhamEntertainment]

People are in such a frenzy to buy a house, they will do anything to technically “own” one right now.

[@TimGreen-co3vp]

and truthfully, you never own it until it is paid off. Just like your fancy car, motorcycle, boat, etc.

[@FreeAgent797]

Even if its paid off, you never truly own it. You still have to pay property taxes, or they'll rip that property right from under you.

[@garykeith1048]

You either own it with the deed in your name or you don't. Basic real estate 101.

[@TimGreen-co3vp]

@@FreeAgent797 Well that is true. However, I think it is easier to pay taxes when you do not owe any money on it.

[@tiriza5158]

Also if one of the parents ends up in a nursing home… they’ll take the house.

[@ronaldlindeman6136]

Or, the kids (adult children) will be encouraged to help the parents for as long as they can.

[@kbanghart]

​@@ronaldlindeman6136what's wrong with helping?

[@kbanghart]

Who will take the house?

[@tiriza5158]

@@kbanghart Medicaid reimbursement lien A Medicaid lien on a home must eventually be satisfied. Typically, a Medicaid lien is placed on real property when an individual is receiving benefits through the Medicaid program during his or her lifetime and still owns a primary residence. Even when the home is exempt, it can become subject to a lien when the Medicaid recipient passes away.

[@impalamama7302]

@@kbanghart The state. As part of Obacare or during his administration a Federal law was implemented that required every state to put into place programs to seize assets of any person whose long term care whether at a facility or in the home was paid for by any state Medicaid funds. A surviving spouse may live there until their death, but then it is taken by the state. just as with taxes, somes states are more confiscatory than others. But they take any real estate at very least until amount paid by state is satistifed.

[@BrendaColin-v7g]

They should cut their losses and go rent something cheaper until they raise enough money for another mortgage. The parents can sell their home to someone else

[@matthewmchenry9331]

Missed opportunity to find out how many cars these people dont own.

[@TrazimDollare1982]

John would have asked if the callers Parents are safe

[@Times397]

💯

[@Steve-lk1eb]

Lmao

[@bryandelcid4065]

“Dude, I know ya’ll made a mess out of this but are your parents safe right now?”

[@TrazimDollare1982]

@@bryandelcid4065 Lol

[@Times397]

@@bryandelcid4065 “it’s important you get them in touch with a good pastor, uncle, cousin, or a true friend who can walk with them through this…”

[@Coffee4commonsense]

I’m wondering if the parents have a reverse mortgage on this house and didn’t bother telling their daughter and son-in-law this.

[@nightreader1264]

Property taxes are brutal in Texas!

[@llcross04]

Yep, I deal with it every year!

[@arielsea9087]

Try Connecticut

[@silviaquesada2499]

try New Jersey and Eastern Massachusetts

[@jaengen]

Hilarious. Guess what folks? They are A LOT lower in California. Surprise!

[@JustinCase780]

Caller: Need your advice. Show: You're an idiot that has screwed up everything. Audiance: Yeaa!...I feel better about me!!!

[@cesaravegah3787]

Well, yes, the callers however get valuable advice and sometimes they actually start the process of improving their lives so Is not entirely a "Jerry Springfield" kind of show.

[@wittenberg5]

LOL! That's the gig in a nutshell!

[@ShaeJ_Shae]

USDA offers $0 down payment mortgages. There’s also programs to help w/ down payment assistance. Find a builder who pays closing costs as well.

[@GDuncan8002]

In rural areas yes.

[@GAFB1122]

Rule of thumb... if you cannot easily explain it to a layman then stop what your doing, take a step back and consider other options. The more complicated and creative it is tells me you most likely can't afford it anyway.

[@getinthespace7715]

Exactly. If the deal takes more than 10 seconds to explain something is wrong. Step back, turn around, walk away.

[@kennedyjefferson]

Thats an excellent rule of thumb. I'm gonna use that. Thanks!

[@mike112079]

Haha Awesome!! 🙌🏾🙌🏾. Most of it is them trying to word/phrase it better so it doesn’t sound dumb!

[@PoyTroy]

I like this, if you can explain it to a 4yr old in 5 seconds. Then it’s not so simple

[@wavelength123]

One of the few videos he actually explains to the caller instead of repeating his sayings

[@JoeyNYSDnomad]

Buying things you can't afford. Pressured by parents that are not economically sound.

[@Loljjkb]

With their income they can’t afford that mortgage. How is it hard to figure it out? It’s simple math

[@scotttracy9333]

They needed a bigger house and thought this would be a good way to clear their debt and get a house on the cheap, paying $2k a month while bringing in $6k a month Sounds good in theory doesn't it ?

[@getinthespace7715]

​@scotttracy9333 , I think the parents talked them into this... The guy sounded like he just walked blindly into this "deal" the parents setup. My guess is they bought a new place and this one sat on the market and wouldn't sell, or they just figured it would be easier to offload it on the kids.

[@scotttracy9333]

@@getinthespace7715 Yes. The bigger question is, where will the parents live ? If they continue living there, then the parents now have someone to pay their mortgage. That's a good deal for them

[@adamseidel9780]

They absolutely can afford the mortgage, this is very reasonable and a good deal

[@jimmymcgill6778]

Simple math, they can afford it. More then likely, it's the same payment as their old house.

[@marcenelj]

$2k mortgage payment on a $6k monthly take-home pay income is not bad at all these days.. what in the world is Dave thinking? Is he aware of what's been going on in the housing market lately?

[@joesmith3590]

The thing is it may be tough at first but the kids can go to school and the wife can then work. Now you can afford it. If they wait until the kids are grown they are unlikely able to afford it. They can pick up 1-2k extra work until the kids are grown also.

[@aorg9793]

The average USA single detached home is $397K. Using Ramsey's 25% over 15 years rule, a household would need to be grossing at least $130K a year for the average single detached home. The percentile for those USA households making at least $130K a year is the 75th percentile. So, according to Ramsey logic, only a quarter of US households can afford the average house.

[@Tashas_Travels]

Not when you have 2 kids who need food, clothes, shoes that get smaller every few months and every year and a wife who doesn't work.

[@dobia4486]

They're fine, it doesn't cost $4k a month to feed 3 people when you don't have to pay a babysitter

[@marcenelj]

@Tashas_Travels the wife who doesn't is maybe a plus.. Day care cost is averaging 2k a month.. unless the wife can go to work and net 4k a month.. enough to cover daycare and some leftover.

[@jornada.del.muerto]

How I love Dave Ramsey and his whole team. They're really helping people. Unlike the other finance "gurus" (aka scammers) on KZbin who claim to teach people how to "become a millionaire in 3 days" type of get-rich-quick schemes selling $500 monthly classes

[@enricopallazzo3244]

Dave is being overly dramatic here. If they just get like 4-6 roommates they will be fine.

[@f.w.1318]

Can’t have roommates when you have a family wife, etc..

[@enricopallazzo3244]

@@f.w.1318 I know, I wasn’t being serious. They’re screwed.

[@f.w.1318]

@@enricopallazzo3244 LOL yep, I just saw your profile pic, L Nielsen was a classic, dude was funny as hell.

[@enricopallazzo3244]

@@f.w.1318 The best

[@ChaosAOE]

I chuckled for a good few minutes at this comment lol. Mostly because I could definitely see a tiktok bro recommending this path 😆

[@raymondmadowo9424]

Hi Dave. I discovered your channel a few days ago, and boy, have I been helped. The five-step process just opened my eyes. I'm from Nairobi Kenya. I need your every dollar app, but it's not available here. How can I access it coz I really need to straighten out my debt situation. Many thanks for the great work that you and your team are doing.

[@JFDSmit-rm6tw]

Generally, subtract one "bedroom" from the count (except for a 1 bedroom, obviously) for a storage room if there is no dedicated storage in the house or on the yard, or even a garage. Suddenly less struggle to find a place to rent for the furniture and equipment.

[@Lon1001]

It's not necessarily a bad deal for any of the parties involved, it's just that the paperwork is totally lacking and jeopardizes the caller's financial future. Probably should have used lawyers to structure the transfer of ownership and payments to satisfy all the interests on this property.

[@karmasutra4774]

They can still fix it

[@kensmart1976]

Dave is exactly right. The risk is huge. I get they want to own the house but get a mortgage and get your name on the house.

[@CJ2023Incognito]

3:03 I heard the exactly what Dave initially heard about the 60 & 30k. Lol

[@evans4751]

Renting a property would be cheaper for this couple.

[@md-yc4sx]

always love how the last 2 minutes is just straight roasting without a response from the caller

[@3rddegreeburns494]

Everyone is missing the point. He got to post all those pictures on Facebook, showing his new big house & how he's living the dream. That's worth going into bankruptcy...right? SMH.

[@margaretsnewtoylynnparks5336]

BUT my FRIENDs have a BIG house. My HOUSE is BIGGER than yours! Wife should get part time job/full time job! (To Help)! ! !

[@UnblockedOne2]

that's similar to what happened to a "former" neighbor of mine. She was living with her elderly mother. The mother died & she wasn't able to assume the loan. Haven't seen her since. & now I have new neighbors.

[@Wall2000x]

Another stay at home mom. I remember once one of my friend's wife felt their house was too small and wanted a bigger home in a better area. So, my friend went for it. I forget what they were making but the mortgage payments, taxes and insurance were about 40% of their take home income. Then, she wanted a new mini-van to haul the kids around for about $25k. They financed it. There was vacation in Hawaii. Then, there was subtle pressure for him to make more money. When the divorce happened, he was left with a mess of bills and about $800/month to live on. Good thing his new wife makes 200K a year.

[@victorkreitner754]

The look on Ramseys face at 3:15 said it all. If it's too good to be true, especially within the family it usually is. I'd rather be dirt poor than doing financial business with family members. It always ends up slapping you in the face, and creates a friction within relations. Learn to handles your own stuff and keep family out of your affairs.

[@Willyd2758]

Never involve your family in anything monetary unless it’s with a lawyer. Your family will screw you as hard as possible because you trust them.

[@Bonsai-Miata2020]

And we out grew our 2 year old SUV and we needed a full size new Suburban so while I watch the kids and wife can drive to yoga lol

[@bobmarker6812]

What they "need" and what they can afford are two different things.

[@sjaykay9884]

$72,000 a year and the wife stays at home? He doesn’t make enough for that lifestyle. Let’s start there. So no wonder they were able to be tricked into taking that mortgage on. They already live in delusion

[@eriks442]

That's about my salary. My wife stays home with my two boys in So California. $360K mortgage, no car payments, paying down debt, high cost of living and we live quite comfortably. It's all about management.

[@eriks442]

​@@sarahjaynescott545 I didn't force the stay-at-home life on her either. We planned it together long before kids came. That doesn't work for everyone but for us, we feel it's best for our kids. I didn't want my children being raised at a day-care center. With budgets, please don't simply blame the man. It's not a husbands job to do alone. Both partners need to be involved regardless of who the breadwinner is. If the wife isn't an active participant in managing finances then she can't blame the husband when thing go bad.

[@reviewsbygen5591]

We live off $70k as a family of 6 and I also am a sahm. It makes no financial sense for me to work when daycare is $1000 more than what I would be making as a teacher. My husband makes $130k but we live off $70k of it. It’s definitely possible but people need to have their priorities right and don’t be afraid of making kids share a room. With me being home with the kids, it gives me time to meal plan, find free/cheap things to do on the weekend, cook daily, clean the home, budget for everything else, etc.

[@cnh7262]

@@eriks442is too! We make it work , well worth it.

[@TheSonyExperience]

@@sarahjaynescott545whaaaaat

[@deltanine2468]

My tent and bike is paid for. Only bill I have is food. I use the library computer and 8m getting by.

[@spcysos]

His payment is probably the same as the mortgage payment for his $240k house, or at least close, but yes they need to get this in their name asap! The parents are giving them just the payment they have to pay, but will only deduct the principal that is paid on it when they do eventually sell it to them. The real issue is the new mortgage payment they will get for the house will be a t a much higher interest rate than the parents so the payment will skyrocket even further out of reach. Either rent from the parents and pay off the debt Ramsey style then save up for the down payment or get out and rent somewhere else for cheaper and keep chugging along!

[@Markf311]

Assuming an average appreciation rate for a home assessed today at $320k, with a mortgage balance of $90k, his parents are most likely paying $1,000 or less per month for their mortgage yet charging their son's one income family $2,000 a month. Yikes.

[@arh1234]

Jade - looking fabulous today! Kudos on the styling Also of course I appreciate your insights😁

[@codyp8728]

The mortgage payment is based off the original loan amount. 90k left from whatever the OG loan was.

[@CoffeeWithFred]

You guys stop this wanting to buy bigger houses when your income is poverty level ($72k with a family) and you have consumer debt! Pay off debt and increase your income, before even thinking about buying a BIG house.

[@0_1_2]

Thumbs up if you only watch videos with Dave in them and not the other clowns.

[@NadeDogg]

Relax

[@Kaktus965]

@@NadeDogg Nope, he’s right

[@Neoquaker1]

I like Ken Coleman. His daughter Rachel is ok but it's obvious nepotism.

[@Kaktus965]

@@Neoquaker1 She hot tho

[@thinkforyourself9334]

​@@Kaktus965 No she's not.

[@adamseidel9780]

The only problem here is the lack of anything in writing, this is a very reasonable and beneficial mortgage size and setup

[@crowtservo]

I’m 1 minute in, yeah what a mess.

[@s5101984]

If he had the money he could "outgrow" the house anytime he wants but he DOESN'T!

[@evanwrenn402]

I don’t understand what the plan is? How are they going to pay the parents for the house? Monthly after the mortgage is paid?

[@littlevuggey93]

6 jobs? I am working 3 jobs and barely have any sleep, life, or cook. And I'm struggling like heck.

[@Jaybird-be1tt]

If you can't afford to gift your children a home. I say don't sale it to them. Looks like wife needs to get an online job.

[@amessina6691]

Parents conned them.

[@a.p.entertainment8660]

Getting worked over like this from your own parents is nasty work. My parents wouldn't have let me do this deal even if I wanted to.

[@michaelduke4500]

It amazes me how people can get into this type of a mess. But hey, common sense isn't as common now.

[@DeeLee-p8c]

Git on da rice n beans yall 😮

[@Comeoffitman]

I bought a house for 12,000 buckaroos in 1977 and sold it and bought a house for 24,000 in 1980 than built a garage with a apartment above it and moved my mom’s brother in and she said she shouldn’t have to make her brother replace the hot water heater because he’s family. What do you suggest?

[@thomasdalton1508]

Why would they switch to renting the house? Unless the rent would be substantially less than the $2k they are paying now, which I doubt, they are much better off getting equity in the house than not. This isn't rocket science...

[@letaloudone]

A seller can do "gift of equity" and that is considered a down payment on the mortgage.

[@oshkoshbegone]

What the heck... it's not that bad. Parents should pay off the house and sign the title over to child with a vendor financing agreement. They don't need a down payment unless the parents want one. This is done all the time without realtors or banks. Typically just a real estate lawyer completes the agreement.

[@alinatamashevich3354]

When the parents OWN it, they can. There is a lien holder who owns it now

[@lisecarolina]

Parents should just pay off their mortgage and then provide a private mortgage to the son. So the son pays the parents but can have the house under his name. The problem with this scenario is that the parents are skipping the step of paying off their mortgage first.

[@Fishouta]

You're assuming parents have cash laying around to pay off the house.

[@jenniferlaughlin9600]

Mom and Dad can give a gift of equity which will cover the Down Payment and closing costs.

[@gayle2276]

They're making payments on a $300,000 plus house. Parents owe just $90,000 and probably just paid approximately $150,000 plus for the house. Parents could rent it to them, still make a profit and they'd be paying a comfortable amount for rent.

[@rudolphteperberry3888]

Just "rent" from the parents until the mortgage is paid off then they "give" it to you and you give them asking price minus £90k in monthly installments. Verbal agreement!

[@NODUMBLONDE1]

Real Estate is in writing. Verbal is worthless.

[@JasonGroom]

It's a $2000 payment because the payment is based on the price they bought it for, not what is left to pay. It was probably a 250,000 dollar mortgage.

[@darthenx2585]

I mean he can just talk to his parents and renegotiate and tell them he just cant afford it. Try and come to a rental peuce agreement or else go rent a small apartment till your out of debt.

[@angooredcow157]

You are essentially renters to a larger house that you cannot afford on your own. Your parents gave you a break. Ask them to lower their monthly rents. Instead of $2,000 a month, reduce it to $1,500 a month. Put the extra $500 into a savings account or mutual fund. Earmark this as a downpayment for the current house that you are living in. This takes discipline and many years to accomplish.

[@bryanortiz4359]

Uhhh, sell the house? If the parents agreed to owner finance the house then they son/daughter have the right to sell and keep the profits.

[@princegill144]

Can we call from Australia?

[@today7518]

Why can't the parents sell the house, and kids get more affordable house?

[@Mr.Boring_Man]

What are the terms? They just gonna pay $2K until they get to the city assessment value of last year. That amount will continue to increase. I hope a contract was atleast signed. This was some sloppy work.

[@trueandika]

Ramsey is milking money from this. He is a genius !

[@iracohen3864]

The chances of getting approved to take on the old mortgage are nil. Pull out of the house, go rent a smaller home or apt for a couple of years, pay off your debt, then start building up a new down payment...and don't keep looking for a big house you can't afford...The old "growing out of a house" often means you saw a big house you liked and justified the expense that you really couldn't afford. But you were foolish to sell your old house considering your 60K debt... It's not hopeless, you just have to reimagine your dream of home ownership

[@deborahmaehs7604]

I could be wrong but based on his income, I don’t think he would qualify for a mortgage on a $300,000 house unless the wife got a job and they both get second jobs. Dave has made many valid points here, some I hadn’t even considered. I think Jade’s idea about renting is probably the only option for the short term until they can increase their income.

[@Chad-qe6yv]

How can they tell the parents are making a profit only knowing there is $90k remaining on the mortgage?

[@siva47931]

6:15 Seems Dave and Jade don't understand amortization schedules

[@bryandelcid4065]

Some details were left out. We don’t know if it’s 2k a month for 30 years or 15 years bc if it’s 30 years then they’re charging them interest but if it’s for 15 then no interest is probably being charged since that’s approximately how long it will take to pay 340k in full on a 2k per month schedule.

[@jimmymcgill6778]

And they sold them it for 340, not 90 anyway.

[@whosaidthat9265]

What amortization? They aren’t paying the mortgage company. Your point is moot unless you are talking to the parents

[@thomasdalton1508]

Yes, they don't seem to know how a mortgage works... The payment isn't based on the outstanding balance...

[@thomasdalton1508]

​@@whosaidthat9265 Click the timestamp. It's when Dave gets confused on how you have a $2k payment on a $90k mortgage. He doesn't seem to understand that the payment is based on the amount the mortgage started at, not the current balance.

[@ChrisBoulas]

They essentially bought the home under what's called Subject To or "Subto" for short. The deed to the home isn't tied to the mortgage. So the debt stays in the parents name but the son gets the deed. Contracts are typically written with a clause that protects the parents in that they can reclaim their asset if he defaults on his payments back to them.

[@LaBrendis]

Just because is family doesn't mean anything. I know it sounds terrible. But is true! 🥴

[@daveavemian5940]

Good ole dave ramsey giving nonsensical advice. 2k mortgage in todays market is very reasonable. Mortgages that are 25% of take home pay DON'T EXIST. Why won't someone call Dave out on this?

[@stephaniem4565]

This is so true

[@romeoj30]

Unfortunately, with Biden and congress spending and covid etc. the average is moving closer to 50% when you exclude family help, life insurance, gifts etc. So much salary is getting eaten up by just about everything else that is a monthly bill. These days it cost money just waking up.

[@catherinewilke5583]

I usually agree with DR but Jade is the voice of reason here. Yes it’s a mess. This caller should move out and rent an apartment. Let the parents pay their own house. Work the baby steps from an apartment. DR is trying to make them stay committed to the bad decision. I say reverse it. I made the mistake of buying the family home from my mom for market value. She said she would come back and help clean it out. News flash, she didn’t. I really couldn’t afford it, so I ended up selling at a loss and having to clean the home. Never gain. Mom laughed all the way to the bank.

[@Kaktus965]

She was just nurturing you in her own way 😊

[@autumsoul23]

😭 Dave should be in every high school math curriculum.

[@versiec]

The parents can gift a portion of their equity to them to purchase the home and they can use that towards their down payment and closing costs It’s called “gift of equity”

[@JasonGroom]

Sometimes they can be so dense. You have a $2000 payment because it isn't a $90,000 mortgage. It is a mortgage for much more that has $90,000 left. Just because I pay down my loan that doesn't make the monthly payment go down unless I refinance it back out to 15 or 30 years again.

[@queen.kristal8395]

Parents are ridiculous why didn’t they just gift him the house and transfer the mortgage ?if it’s only $90k he could have easily paid that off parents care more about money than the child .

[@xsgtxbigboy1655]

Ur one entitled person lmao lose 250k in equity? Not everyone has 5 mil to retire on they shouldn’t have to lose 250k

[@queen.kristal8395]

@@xsgtxbigboy1655 well sell it to someone else then

[@thomasdalton1508]

They care about money because they need money. They need a roof over their heads and food on their table, just like everyone else. I'm guessing this house is pretty much their only asset. They can't just give it away.

[@queen.kristal8395]

@@thomasdalton1508 well just sell it to someone else then don’t screw your son over

[@thomasdalton1508]

@@queen.kristal8395 They're not screwing him over. They've sold the house to him at below market value and are providing him with financing with no down payment that he probably couldn't get from a bank. I don't know what interest they are charging, but $2,000 a month on a $340,000 suggests it isn't very high. And they'll probably be much more forgiving than the bank if he misses a payment. They are giving him a great deal. They just need to speak to a lawyer if they haven't already and get the title sorted out. They need to get a secondary charge over the property so no-one other than the bank that already has a charge can get it before them.

[@laserwizard2]

Dave doss not mince words. He deals in Realville