The Ramsey Show - App - How Do I Get a Home Mortgage? (Hour 3)

Episode Date: November 12, 2018

The show about you

Live from the headquarters of Ramsey Solutions, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of the choice. I'm Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. That's 888-825-5225. Ashley starts off this hour in Indianapolis.

Hi, Ashley. Hi, how are you? Better than I deserve. How are you? I'm doing okay. A little stressed out. Are you there? Yes, ma'am.

Go ahead. Okay, sorry. So my husband and I, we've been married over 10 years next year, and we kind of started off in debt. And it's just kind of gotten out of hand to the point that we actually went and spoke with an attorney about four or five months ago to see about filing bankruptcy. And so since then, that was our intention. He advised us to stop making payments. Well, my husband, I actually read your Total Money Makeover book about a year ago, and my husband finally started listening to your show.

And we decided, you know, maybe we shouldn't file bankruptcy. Maybe we should just try and start, you know, knocking this out on our own. But all of our payments are so far behind now. We're kind of at a point where we don't know what to do and kind of how to proceed from here. And we've also got a car that we have on lease, and we pay more on it than we do our mortgage. It's $620 a month, and so we've contemplated just telling them to come get it and just using that money to pay off this debt. So that's kind of where we're at.

What do you guys make a year? About between a $120,000 and $130,000. Okay. The beginning of the year, he had about two months where he had to take a leave of absence from work. And how much debt do you have? Total of cars, student loans, credit cards, about $147,000. Okay. And how much of that is student loans? $50,000. Okay. And how much of that is

car? $22,000 to $23,000. And the other car you also have on a lease in addition to that, right? Right. Okay. So you in addition to that, right? Right. Okay. So you have two car payments, right? Right. Okay.

And so that's $77,000 of the $147,000. What's the rest of it's credit card debt? $20,000 of it is medical debt. Okay. And then credit cards. Correct. And a credit cards. Correct. And a couple of smaller, like, unsecured loans. Yeah, but you got credit cards of, like, 50 grand, right?

Right, yeah. Okay. Okay. And how long have you guys been married? It'll be 10 years next July. Okay. All right. Well, bankruptcy is an absolute last resort.

It's in the same category as divorce. Sometimes good people go through it, but we never suggest it for anybody that we love. We want them to avoid it if at all possible, right? Right. Okay. And so that's what I'm going to suggest for you guys. You make a lot of money. You're disorganized, and you've been spending like you're in Congress.

Right. Bankruptcy is not going to fix any of that. You're going to have to get organized and stop spending. Mm-hmm. Have you cut up your credit cards? We have, yes. Every one of them? Every one of them. When?

Oh, I don't know, about six or seven months ago. Okay, that's good. And you've stopped paying on those? We have. The majority of those have already been sent to collections. Right. So we have a ton of stuff in collections. Excellent.

All right. Well, what I would want to do if I filed bankruptcy, and I did do that 30 years ago, but what I would want to do is know that i'd done everything possible to avoid it just like if you were going to go through a divorce you'd want to say i did everything possible to not have that happen and because it's not something to enter into lightly and so if i were in by the way student loans are not bankruptable so you're still going to have that when you come out if you file bankruptcy. Oh, and by the way, you don't get to keep these cars in bankruptcy unless you pay the payment.

Right. Are you current with both cars? We are not, actually. We are a little bit behind. Okay. All right. The first thing I want you guys to do is sit down tonight and do the every dollar budget. We actually just had him download

that like three or four nights ago good but now you got to do it right okay and here's what you take care of first food then is your house current um we are set up on a payment plan this month we'll get us completely current on that and how much is your house payment um normally it's 613 dollars okay and so you're getting ready to be current on that you had you is your house payment um normally it's 613 okay and so you're getting ready to be current on that yeah you did a uh you did a rework on your mortgage good very right okay and um so your house and food and lights and water and car payments all get current this month. Okay. If nothing else gets paid. Okay. Food, lights and water, house and transportation.

Food, shelter, clothing, transportation. You've got clothing, so you're okay there. Okay? Right. And now the rest of this is a monopoly game that we're behind in. Mm-hmm. But emotionally, when your car is on the line, your lights and water and your food and your shelter is on the line it it rips your guts out at a different level it terrifies you at a different

level absolutely okay but if you got those base things i'm not gonna i'm gonna have a place to live i've got food and water i've got heat and i've got a transportation okay that's our first goal then we can then we can begin to fight through some of these other things. Then we can start to say, all right, what are we going to do to get out of debt? Well, if I woke up in your shoes a long time before I filed bankruptcy, I would sell both of these cars. Okay. Well, my husband actually looked into selling the one, and we had at least through. Yeah, you're upside down. You're upside down. Right.

You have to cover the difference. Right. And I don't know that we would have a way to do that because our credit is absolutely shot. Right. Okay. So that's another reason we thought about just. So we need to find it. Well, I wouldn't.

If you give that back to them, you act like that's something you just do every day. That's a repossession. Right. They're going to sell the car on a repo lot for half of what you can sell it for, and they're going to sue you for the difference. You may be forcing yourself into bankruptcy just tossing those people the keys.

So let's avoid that if we at all possibly can. So the car that you owe $22 on, have you looked up what it's worth? It's worth $30, and the bank wants $38. I thought you owed $22,000. That's the lease. You're talking about the lease one. Right. They want $38,000, and it's worth $30,000, so you're $8,000 off, okay? But you make $130,000. Right. So I'm going

to come up with the $8,000 if I have to save it in my plan after I get all these other things done before I start worrying about paying off credit cards so that i can sell this car instead of them selling it for 15 and coming after you for 23 when you could have only been in the whole eight okay because that's what's going to happen if you toss them the keys right i want to avoid that okay and then the then the second car, the $22,000 debt, what's that car worth? Um, oh, that is the, that is the Traverse. I'm sorry. That's the, that's the same car. I'm sorry. If you, uh, I thought you said you owed 22 on it, on your car. For the lease. The lease is the 22. We only have the one car now. The other

one we turned in on lease. Like the lease was up, we turned it in. Oh, so you don't have 22 on a car. You have 38 on a car. Well, the remaining balance of the lease is the 22 on the car. But the bank said in order for us to... Yeah, that's not what you owe, though. That's just the remaining payments. Okay.

So you're more than $147,000 in debt. Okay, so we get out of the car. That's the next step. Hold on. I'm going to talk to you after this break. You've heard me talk about ID theft for years and how it's only a matter of time before you become a victim. But I ran across some numbers that even surprised me and shows the real nightmare that people go through when they become a victim. Of the 16 million victims of identity theft last year, yes, 16 million, 26% of them had to borrow money from family or friends,

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Visit Zander.com or call 800-356-4282. It's the smartest, most affordable way to protect yourself. All right, we're talking with Ashley. She's behind on everything in Indianapolis. She owes $150-some-odd-thousand on debt, including $38,000 on a lease car, $50,000 on a student loan, $50,000-plus on credit cards, and so on. Behind on everything, we're talking about how to get out of this. And so we said, get you on a budget. Let's get you current on food, shelter, clothing, transportation, and utilities.

First goal then is to work to get the $8,000 and get the car sold. Do you only own one car? Right. You're a one-car family. One-? Right. You're a one-car family. One-car family. Well, my husband is actually currently driving his mom's car, and so we can save up to pay cash for him a vehicle. And then get out of this one.

Okay. Right. So you understand why I'm telling you not to turn it into the dealer? Yes, I understand that. Okay, good, good. All right. And then once we've gotten rid of the car payment then we'll work to start working through these other debts at that point i'm gonna let the

student loans sit there on hardship deferral they're the least active of all your collectors they may bug you but they won't do anything for years in terms of actually getting money from you. The medical collections and the credit card collections are the ones we'll start working on next. And then what you do is, because you're going to be in default on everything at this point, then you're going to just list your debts, smallest to largest, and take your smallest debt and call them and settle with them and make them an offer.

But you have to have the cash to be able to do that. So we've gotten the car out of the way. We've got an extra $620 a month. You're driving a hoopty. In the meantime, while we get this mess cleaned up, and then you can walk through and start making these credit cards offers. So if you have one that you owe $2,000 and you're seven months behind and you offer them a thousand dollars they'll take it okay you'll have to argue with them but they'll take it does that damage your credit yes a lot less than bankruptcy

does okay okay bankruptcy is dropping a hydrogen bomb on your credit this This is dinging it up. Okay, so you're settling every debt in writing one at a time. This is going to be a hassle. This is going to take, this whole process I'm outlining is going to take you two years. Okay? But when you do that, you're going to be 100% debt free. You're going to accept your house. You're going to be clear of all this hassle and stress, and you won't have a bankruptcy on you. You can do it, and I'll show you how. I'll walk with you, okay?

Because I know you guys are scared. You've got to be. Absolutely. And you probably are fighting, because most marriages, when they get in this kind of stuff, I mean, Sharon and I about killed each other, Ashley. Yeah. Well, well actually to be honest with you since once it clicked with my husband we were doing more fighting before but now that he's like oh crap like we got to do something i feel like we both just kind of got on the same page and we're like okay let's figure this out and so okay here's what i want you to do i want you to go to financial peace university which is the nine week class a one-year membership and it sets you up

with every dollar plus as well. I'm going to pay for it because I've been right where you are. I know what it feels like to be scared. Okay. And how old are you two? We are 28. That's how old I was when I filed bankruptcy. Mm-hmm.

You don't have to. You don't have to. Okay. You can make it, and I'll walk with you. And if, while you're going through Financial Peace University, if you're stuck and you don't know what to do, there's plenty of our coaches that we have trained in the Indianapolis area. You can jump online and get you a coach and they'll walk with you and help you fight through this. So here's our order of attack again. Okay. First thing is get current on what we call the four walls, food, shelter, clothing, transportation, and utilities.

And that includes your car. Okay. Get current with everybody there. Let the rest of it sit. Call the student loans. Tell them hardship deferral. The rest of them, don't even take the call because you're not giving them any money this month.

You don't have any money to give them. Okay? Right. The second thing is we're going to save up and get out of this car. Got it? Okay. The third thing is we're going to start working these debts off smallest to largest. And here's the weird thing.

When you make that list of debts, of medical debts and credit card debts and personal debts and stuff, and you make that list, it's about $75,000 worth. And you make that list, you're going to be amazed at $20,000 will clear up a ton of them because a bunch of them are just little mosquitoes buzzing around your head. You've only got a handful of really big ones. Right. And you get rid of all these $79 and $1,279 stuff that's flying around out there. $20,000 is going to clear up so much of this.

And so here's what I just said. You make $130,000. Right. $30,000 gets rid of this car and cleans up so much of your stress, your mind is going to be blown. Only $30,000. And you can do that making $130,000. You can do it really fast. Because you're not going to be doing anything else.

You're not going on vacation. You're taking as many extra hours and extra jobs as you can, and you don't need to see the inside of a restaurant unless you're working there. You're broke. Absolutely. Okay. Let's get on a scorched earth plan where your broke friends think you've joined a cult. Okay.

All right. Sounds good. All right. I'll walk with you, kiddo. You call me back if you're scared and don't know what to do, okay? Absolutely. Thank you so much. I appreciate it. All right, darling. You hold you, kiddo. You call me back if you're scared and don't know what to do, okay? Absolutely. Thank you so much. I appreciate it.

All right, darling. You hold on, and Kelly will pick up, and we'll get you signed up for Financial Peace University. And then if you need one of the coaches or something, somebody will help you with this. You know, that's what our Financial Peace University coordinators do. They're not the coaches, but they coordinate these classes, and people like Ashley are in there, and people that are wealthy are in there. It's amazing. When you go to a Financial Peace University class, and you go through the nine lessons,

and then you've got the one-year membership with all of the lessons online, and the legacy journey online, and the smart money, smart kids online, and you've got audio and video for a whole year. It's a one-year membership. I mean, it gives you everything. It's an incredible bargain. It's the best price on all of our content that we've ever had. And obviously, having it in a digital format allows us to do that.

And then you get to go to the class at your local church. So if you want to know about coordinating the class in your area, becoming a coordinator, we need a ton of coordinators right now. There's a lot of people out there that are doing very well and they want to do better, and there's a lot of people like Ashley that are right on the bubble, and they need somebody in their corner, and that's you and that's me working together. If you want to coordinate a class, you get started by texting the word LEADER to 33789. That's LEADER to 33789.

Colin is in Lexington. Hi, Colin. How are you? Hey, Dave. Thanks for taking my call. Sure. What's up? Hey, we are currently in Baby Step 2.

I had a total of about $143,000 of debt. About $30,000 of that was consumer debt, and we've just about finished paying that off. And we've got about $105,000 of student loans left. We just received a lump sum of money from selling our house. And I know in Baby Step 2, it talks about attacking the little debts first. But I was wondering about tackling the big debt since we got this pile of cash and then hitting those little debts after we have spent all that. Yeah. What is the equity from the home? How much is your check? We've got about $85,000 from that.

Okay. So it doesn't clear the big debt. How many different student loans are there? Oh, there's quite a few. I think there's about 14 total. Okay. And so what would be wrong with working at smallest to largest? Because you can't pay them off either.

You're not going to clear it anyway. Right. You're going to end up with the same amount of debt either way. Okay. I got you. Yeah, I just didn't know if it was like, you know, that would kind of, once we get this lump sum out of the way, then we hit those low ones. Well, it's not a lump sum.

It's 14. Right. And so when you list your debt smallest to largest, some of those 14 will probably come, a lot of them are going to come up. Because 85, that leaves us 50 down into the 105 at a minimum, and that's assuming all student loans are bigger than the consumer. You said there's 30 left in consumer, or you've already paid it off? We pay off all but about $13,000. That's what's left on my car. Okay, so $13,000 and $105,000, right?

Don't you have a student loan that's smaller than $13,000? I do, yes. So you've not been working the debt snowball properly anyway. So you should list your debts smallest to largest, regardless of the category. We don't do it by category. We do it by loans, okay, by actual balance. And it's not by category. Student loans are a category.

They're not a balance. So list your debts smallest to largest and pay them off in that order. That's what I would do. Thanks for the call. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ

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chministries.org In the lobby of Ramsey Solutions, Andy and Rebecca are with us. Hey, guys, how are you? We're great, Dave. How are you? Better than I deserve. Welcome. Where do you live? We live in Enid, Oklahoma. That's where we're stationed, but we're both originally from Meridian, Idaho. Cool. So you're serving? Yes, sir.

Thank you for your service. Air Force pilot. Appreciate it very, very much, especially this week. Obviously, honoring veterans and service folks. So thanks for being here. And here to do your debt-free scream. Yes, sir. Love it. How much have you paid off?

So we've paid off a little over $38,000, and then we additionally cash flowed another $51,000, totaling about $89,000 over the last three years. Okay, cool. Over three years. And your range of income during that time? We started at about 75, and then while I was deployed, we hit about 100. And then now we're back down to 95 just before Matthew was born.

Gotcha. Okay. What do you do, Rebecca? So I'm a physician assistant. Oh, cool. Very good. Very good. So what did you cash flow that was $51,000?

So all of my schooling was, we had a plan to cash flow all of it, and it just didn't work out that way, and so we ended up taking loans, and so we paid off that last $38,000 over the last seven months. Okay, so the, I'm sorry, the $51,000 was cash flowing the school? Correct And then you went into debt? Yeah Oh, okay We were apart from each other for the last two years

before I deployed So just the cost of being apart and setting up two households essentially Yeah, absolutely, cool And now you got your PA Yeah, that's right Very good, and a great degree. Very good. Good for you guys. Very cool.

So what put you on this journey three years ago to get out of debt? Yeah. So the first time that Andy deployed, we had some loans. And I came to him. Our church was offering Financial Peace University. And I said, hey, let's pay this off. And we agreed to do it. And then we had a plan to cash flow all of PA school. And so we worked really hard during his second deployment to just stockpile money as much as we could. And we were on track to do that until my second year of rotations were more expensive than we were anticipating.

And I couldn't put it on hold. And then my car died. And then traveling to see each other after two deployments and being apart for two years, we just really needed to keep our marriage strong. And so after that, we just got intense and pushed forward. Cool. And just before my third deployment, we got exciting news that we were expecting Matthew. All right. And so that gave us our why.

So that last 38,000 in such a short time was after we found out Matthew was going to be joining us. And we got it paid off three days before our sixth anniversary. All right. Just before he was born. Congratulations, you guys. Thank you. Very, very well done. Proud of you.

Again, thank you for your service. Very cool. So you knocked the 38 out in what period of time? Seven months. In seven months. Yeah. Okay. Yeah, just recently.

Okay. Very good. Cool. Cool. Well, congratulations. Proud of you. Thank you. Well done.

Very well done. Great job. Good stuff. We've got a copy of Chris Hogan's book for you, Retire Inspired. That's the next chapter in your story, to be millionaires and outrageously generous as you go along. So what do you tell people the key to getting out of debt is? Dave, just being intentional, having that budget, and just making all your decisions together. We really tried to keep our decisions together and stayed on the same page. And then for me, it was communication.

Because being apart, we were trying to manage those two separate things. Also, making decisions that weren't always fun to make. I decided to go to a state school versus a private school. I was accepted to two. And so you always talk about school choice. And we made together the really hard decision to go to a state school. And then also having a huge why.

I went to Haiti a couple years ago with my mom and a church. And we decided that we wouldn't be able I went to Haiti a couple years ago with my mom and a church, and we decided that we wouldn't be able to be as outrageously generous as we want to be if we were in debt. And so now we have the ability to do that, not only to change our family tree for our son, but also to just give like no one else, like you say. So how many times do you think as a PA somebody's going to ask where you went to school? Never.

Absolutely not. Did you get a substandard education? No, I did not. Okay. No, it was just, it was one of those, I got accepted to a school in New York City, and I wanted it. And that wasn't. Why?

I don't know. I just, I was being immature and choosing a school that would allow us to give because we had already made the decision that we wanted to give. So allowing a school that made that attainable, made that goal attainable, was more important to us than having fun. Okay. All right. So fun was New York? I'm so confused.

I don't know. I guess so. Probably. Okay. All right. But also because of that, you know. I guess so. Probably. But also because of that, I was able to live with my family and my aunt let me live

with her for the two years and so that also helped. So there was a lot of support back in Idaho and it just made way more sense to pick a state school. Yeah, because it wouldn't have been $38,000. No. No, we wouldn't be standing here today.

Absolutely. Plus the cost of living, it would have been ridiculous. And I don't know what you would have gotten for it. Nothing special. That's what I'm trying to figure out. Yeah, we'd have the same degrees, same initials at the end. And then Andy's master's degree, we also cash flowed that in the 51 as well.

Wow. So both of us are done. Well, what's your master's in, Andy? Master's of Business Administration from Nebraska. Did that all online while I was deployed. Hey, I love it. Way to go. Very cool. And the military took care of that one. They helped a little bit. Yeah, okay. All right. Well, good.

Great job, guys. That's a fun story. Thanks, Dave. Fun story. Good to have you all visit. And you brought Matthew with you? We did. We'll get him into the shot to do the debt-free scream. He's five months old. How old is he? Five months. Oh, he's cute.

Yeah. So we paid off our debt three days before he was born. That's perfect. Yeah. So he's our debt-free baby. All right. It's Andy and Rebecca and Matthew. Oklahoma City, $38,051 cash flowed in three years.

The $38,000 done in seven months, making 75 to 100, back down to 95. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! I love it! Congratulations, you two.

Very, very well done. Open phones at 888-825-5225. Thanks for being with us. We're glad you're here. We're excited to introduce our brand new gifts for Christmas. This Christmas, we're selling our biggest live event, the Ramsey Smart Conference, on DVD. That's pretty cool. If you didn't know that, that's available.

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888-227-3223. This is the Dave Ramsey Show. We'll be with you. He will be with you. He will not fail you or forsake you. Do not fear or be dismayed. Bernard Molamud said, Without heroes, we are all plain people and don't know how far we can go. This is the Dave Ramsey Show.

We're glad you're here. You're our hero. We know how far we can go because we see how far some of you go. We see what you do. We see the level of sacrifice. We see you live like no one else so that later you can live and give like no one else mandy is with us in columbia hi mandy how are you hi i'm doing good dave how are you doing better than i deserve what's up yes you are sir i am a very excited first time home buyer me and my husband

we are done with baby step three we are out of debt and we've got a 20% down payment on a house that we just ran into a mortgage pre-approval issue. So it was actually pretty, we were kind of excited about it. Our mortgage company wasn't excited at first. We had no credit when we came in because we are so out of debt. They were able to manually underwrite the loan, so we got pre-approved. We found a gorgeous condo that was actually foreclosed on, but you can't tell it from the looks of it. And we put in an offer to later find out that the mortgage, the lender won't do the loan because 75% of the property is commercial, and they won't do a mortgage for something that is more than 25% commercial.

Yeah, that's a normal Fannie Mae guideline. Commercial, you mean? Yeah. It's rentals. The condo's largely rentals. You don't want this condo anyway. Well, this condo, everything on floor one, two, and three are all businesses. The top floor is all residential.

And where we are... The residential has a high percentage of rentals, doesn't it? Yeah, possibly up there. I'm not sure. Yeah. Because 75% of the building is income-producing, not residents. Mm-hmm. That's what they're saying. Yeah.

So this is largely investor-owned property. It's not. Well, no, 75% are businesses. And then the top floor, it could be rentals. It could be owned property. Yeah, but what I'm saying is 75 75 of the square footage of this condominium total is not owner occupied yes so and how many how many floors is this thing four floors oh and two are business three are businesses oh well that's that's it right there

then okay so that you know that that's 75% right there. Three are commercial businesses like retail. Yes. Okay. Yeah, you're not going to get a mortgage on this. Really? Yeah. Not a traditional mortgage. I mean, you might get a credit union or somebody to lend it, but Fannie Mae's not going to do that.

That's what we were wondering about. My husband's a state employee, so there's a state employee credit union here's your problem when you get ready to sell it most people can't get a mortgage to buy it right and so you're set your your uh your exit strategy and everyone exits a piece of real estate whether or not you're alive we don't know but you know you after your death or somebody's got to sell this someday. And this wasn't thought through very well because you're, you know, this developer didn't think it through very well or didn't know the basic guidelines. Because you're not going to have any buyers is what I'm saying. I wouldn't buy it. Wow.

Because I'm sorry to put Debbie Downer here. But do you see the reason? Because you've got no buyers when you get ready to sell it, which means it's not going to go up in value. It would be very difficult to unload, and you're in really good financial shape. You know, I mean, you've got to have somebody that can go get a weird mortgage, not a traditional mortgage. You can't do an FHA, you can't do a Fannie Mae, you can't do a VA. And so this condo project does not qualify for traditional mortgages, which means only people with cash or weird mortgage abilities are your buyers.

And so you just cut your buyers down 90%. That's one of the reasons this got foreclosed on, one of the reasons you're getting a good deal on it. I did not consider that. Your buyer market. Now, if you did buy it, what is it appraised for and what are you buying it for? It's appraised for $235, and we would be buying it for $189. Okay. Yeah, I'd want to buy it 50 cents on the dollar.

And who owns it? Mortgage company? A bank, yeah. Let them finance it. What do you mean by that? Well, they can carry the paper. They're a bank. They can make the mortgage.

Owner financing. At 50 cents on the dollar. Otherwise, I'd walk. Okay. Listen, you're going to give somebody a bargain when you go out the back side you might as well get a bargain going in the front side how would i phrase that when tell them that there are no buyers for stuff that has no financing and so i talked to my financial coach and he says since we can't get financing, that nobody's going to be able to get financing. And so this thing just went down in value.

I'm only willing to pay 50 cents on the dollar. So what is that, $130,000, $120,000, okay? And I want you to carry the note on a 15-year fixed rate, four percent loan no closing costs okay and if they don't do it and they won't do it because they're stupid then walk just be ready to walk be ready to walk away emotionally because i listen i the set the first home i ever bought i got a deal on it because it was ugly as sin i mean this thing was ugly to the bone ugly it sat up on a hill with a front opening garage door and i was walking across in front of the garage door and an ice storm one night and i fell all the way to the street because it was straight off this freaking cliff and it was you ever seen one of those ugly houses perched up on a hill

that should not have been built that way you know i'm talking about yep yes i do and i got a deal on that house because it was so ugly and you know what when i sold it they got a deal on that house because it was so ugly it's the same thing you know what i'm saying I did it on my very first home ever 30-something years ago. And that's exactly what you're going to get into here. It's kind of like if you buy a flood car. You ever see these cars that have been flooded in the hurricanes or whatever, and you can buy them with a flood title? You ever heard of that?

Yeah, I've heard of that. Yeah, it's the same thing. You can get a deal on it going in, but when you get ready to sell it, it's got a flood title. You're going to give somebody a deal. So you've got to drive the wheels off of it, you know, and keep it. And you need to get a bargain on it, buying it, because you're going to be stuck in it otherwise. So that's the way I would look at this.

I'd look at it as an opportunity to get a serious bargain on this, because I'm going to give up a serious bargain going out, and I'd make them finance it. They're a bank. It's what they do. They're stuck in it. They can turn it into payments, or they can sit sit on it and i'll go look for something else um but i'm perfectly good from a consumer this is this something you're excited about i'm throwing a wet blanket on your sweet little condo deal that you loved i understand all that but i'm just trying to help you i don't want

i don't want you to get call me back three years from now and go, I'm just completely stuck. So there you go. Hey, good question. Thank you for joining us. It's an interesting discussion. Sometimes something's a bargain for all the wrong reasons. And then, you know, if you get ready to sell that item, it's going to be a bargain for all the wrong reasons. You can think of a lot of things that are that way, that there's a way to get into it. There's a way to get a deal on something.

But then when you get ready to sell it someday, you're going to be offering it at a serious deal. That's how this works. So that's what we're talking about. And, again, like a flood car is fine. If you're buying a flood car as, for instance, a work truck, and you're going to run the wheels off the thing, you're running a heat and air company or you're a plumber or something like that, and you're going to run the wheels off of it and you can buy it 50 cents on the dollar, I mean, it may give you some problems from the flood.

But if you have it checked out and it's all working and everything, that's fine. You just got to deal on the truck. But you got to run it into the ground because when you get ready to sell it, nobody's going to want it because it's got a flood title on it. Very difficult to move that salvage title. And that's what you're looking at. It's been totaled by the flood already. I get that it's mechanically sound.

I get that this condo is fine. But it's the marketplace on the back end that you've got to keep in consideration. That puts this hour of the Dave Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus.

Hey guys, this is Blake Thompson, Chief Production Officer for The Dave Ramsey Show. Here's a tip. To keep from missing Dave's classic facial expressions to some of those calls, make sure you watch him live. Just visit DaveRamsey.com slash show each day from 2 to 5 p.m. Eastern. Enjoy.