Bought A House With My Ex-Fiancé And Now It's Going Into Foreclosure

Summary

Summary of "Bought A House With My Ex-Fiancé And Now It's Going Into Foreclosure"

Podcast Information

• Title: The Ramsey Show Highlights
• Host/Author: Ramsey Network
• Description: A quick, daily dose of life and money advice in under ten minutes featuring experts like Dave Ramsey, Rachel Cruze, and others.
• Episode: Bought A House With My Ex-Fiancé And Now It's Going Into Foreclosure
• Release Date: June 10, 2025

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1. Introduction to the Caller’s Situation

The episode centers around a caller who finds themselves in a financial predicament after purchasing a house with their ex-fiancé. The caller outlines the following key points:

• Joint Ownership: Both the caller and their ex-fiancé are on the mortgage and deed of the house.
• Breakup Circumstances: Approximately a year after purchasing the home, personal circumstances led to a breakup, prompting the caller to move out of the house.
• Financial Strain: Post-breakup, the caller has accumulated around $25,000 in debt, primarily from credit cards, loans, and a personal loan for a house-related water softener bill.
• Foreclosure Threat: The house is now on the verge of foreclosure, with payments four months behind. Attempts to sell the property have been unsuccessful despite being a brand-new house.

Notable Quote:

“I bought a house with somebody I wasn't married to. After about a year of having the house, I needed to move out due to some circumstances when we broke up. And now the house is going to go into foreclosure.” ([00:08])

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2. Assessment of the Financial Situation

Joint Responsibility: Dave Ramsey emphasizes the legal obligations that come with joint mortgage and deed ownership. He points out that both parties are equally responsible for the $465,000 mortgage.

Challenges in Selling the House:

• Pricing Issues: The caller's real estate agent attributes the lack of interest to overpricing compared to new communities in the area offering lower prices and attractive interest rates.
• Short Sale Pursuit: The caller is currently working with the mortgage company to explore the possibility of a short sale, although bank approval is uncertain.

Notable Quote:

“That's going to be your best bet is just trying to sell this thing asap. Even if you're lower. Even if you have to lower the price and instead of going through a short sale or worst case, that foreclosure.” ([02:54])

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3. Financial Recommendations and Strategies

Immediate Actions:

• Stop Investing: Dave Ramsey advises the caller to halt all investments, including contributions to their 401(k), to prioritize paying off the mortgage and debts.
• Budgeting: Rachel Cruze reinforces the need to create a strict budget, eliminating non-essential expenses to allocate maximum funds toward catching up on mortgage payments.
• Increase Income: The caller is encouraged to seek additional income sources, such as taking on a second or third job temporarily.

Debt Management:

• Avoid Debt Consolidation: Dave Ramsey warns against taking new loans, especially those labeled as consolidation, relief, or settlement, advising the caller to focus solely on income generation to address the debts.
• Utilize Savings: With $4,000 in savings, the caller is advised to use these funds to help reduce the $12,000 needed to bring the mortgage current.

Notable Quotes:

“You need to act like everything is on fire and you need to work on getting out of this house mess and paying off your debt.” – Dave Ramsey ([05:32])

“You need more income. You may need to get a second job, a third job for a short amount of time.” – Rachel Cruze ([06:55])

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4. Addressing Communication and Partnership Issues

Ex-Partner Cooperation: The breakdown in communication between the caller and their ex-fiancé is highlighted as a significant barrier to resolving the foreclosure issue. Both parties are urged to collaborate despite personal differences.

Potential Solutions:

• Temporary Roommate: Suggesting that the ex-fiancé consider taking in a temporary roommate to generate additional income for mortgage payments.
• Mediation: Rachel Cruze humorously proposes that the Ramsey Show could facilitate a mediation session between the exes to help them work through their financial issues together.

Notable Quotes:

“You guys entered quite the partnership here to then just flee the coop.” – Dave Ramsey ([07:23])

“We could help. You guys need to be adults and sit down and figure this out.” – Rachel Cruze ([07:59])

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5. Long-Term Implications and Final Advice

Financial Consequences: Dave Ramsey underscores the severe impact that foreclosure could have on the caller's financial future, potentially ruining their credit and financial stability.

Call to Action: The caller is encouraged to:

• Create a Budget: Utilize tools like the EveryDollar app to manage finances effectively.
• Seek Professional Help: Consult a real estate attorney to explore all legal options, despite the associated costs.
• Maintain Open Communication: Prioritize transparent and consistent communication with the ex-fiancé to navigate the foreclosure process collaboratively.

Notable Quotes:

“This could wreck your financial life.” – Dave Ramsey ([07:48])

“We're just idiots because we did this. And we've got to figure this out.” – Rachel Cruze ([08:05])

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6. Conclusion

The episode provides a thorough exploration of the complexities involved when personal relationships intersect with significant financial commitments like joint home ownership. The Ramsey Network experts emphasize the importance of communication, strict budgeting, and proactive income generation to mitigate the risks of foreclosure. They also highlight the necessity of handling joint financial obligations responsibly, regardless of personal relationship dynamics.

Final Advice:

“Use that to your advantage to catch up and get out of this thing with as little damage as possible.” – Dave Ramsey ([09:08])

Resource Mention: The episode concludes with a promotion for the EveryDollar budgeting app, encouraging listeners to take control of their finances through effective budgeting.

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Key Takeaways:

• Joint ownership of property entails shared financial responsibility, regardless of personal relationships.
• Effective communication between co-owners is crucial in navigating financial crises.
• Prioritizing debt repayment and budgeting can prevent severe financial repercussions like foreclosure.
• Increasing income and reducing expenses are essential strategies in managing and overcoming financial hardships.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Rachel Cruze]

Hi.

[Caller]

I just needed to get some advice. I did the ultimate. No, no. I bought a house with somebody I wasn't married to. After about a year of having the house, I needed to move out due to some circumstances when we broke up. And now the house is going to go into foreclosure. And I'm just trying to figure out what are my options here, what to. I've also accumulated about $25,000 in debt due to these circumstances and trying to figure out how I can get out of this.

[Rachel Cruze]

$25,000 in debt to who?

[Caller]

Credit cards, loans, personal loans. Well, it wasn't a. Well, I guess you can call it a personal loan. It was a water softener bill for the house.

[Dave Ramsey]

That's the circumstances.

[Caller]

That was. That's one of the loans. That was. That's part of my debt.

[Dave Ramsey]

What happened? Are you on the mortgage?

[Caller]

Yes, I'm on the mortgage. We're both on the mortgage.

[Dave Ramsey]

And you're both on the deed?

[Caller]

And we're both on the deed. He's still in the house? I moved out.

[Dave Ramsey]

You moved out and he decided to stop paying?

[Caller]

Yes.

[Rachel Cruze]

But you've been paying.

[Caller]

Well, yeah, we were paying before. When I moved out, he was paying and then now he decided to stop.

[Rachel Cruze]

Paying and he's already in foreclosure or it is in the process of getting there.

[Caller]

It's in the process of getting there. We're four months behind. We have been trying to sell the home but have been unsuccessful with that.

[Rachel Cruze]

Unsuccessful in that no one's even looking at it. Or you've had showings and they're giving you feedback that you can process.

[Caller]

We had showings but no real interest in the house. And it's a brand new house.

[Dave Ramsey]

Are you working with a real estate pro?

[Caller]

Yes.

[Dave Ramsey]

And what is their logic for why nothing's moving here? Is it priced too high?

[Caller]

It was. They feel like it's. Well, it was priced too high, but because there was a new community being built in the area that. That was kind of affecting us as well because they were able to bring their prices down, give low interest rates and that sort of thing.

[Rachel Cruze]

Have you lowered your price?

[Caller]

Yes, as far as we can go. We're now in the process of acting the mortgage company for short sale to see if that's even possible.

[Dave Ramsey]

Do they know that you have the place listed and you're trying to sell it before the foreclosure goes through?

[Caller]

They do. Yes, they do now.

[Dave Ramsey]

Okay. I mean, that's going to be your best bet is just trying to sell this thing asap. Even if you're lower. Even if you have to lower the price and instead of going through a short sale or worst case, that foreclosure.

[Caller]

But even if we. But even if we lower the price, the bank has to approve us going below what we owe on.

[Dave Ramsey]

Yes. What do you guys owe on the mortgage for?

[Caller]

65.

[Dave Ramsey]

And when you moved out, he obviously could not pay that mortgage on his own. Was that the case?

[Caller]

I'm assuming no. Yes. I don't know. He paid it for six months, so.

[Dave Ramsey]

Okay, he was floating it and then could no longer float. What's the communication like with your ex right now?

[George]

Hey, George here in the control booth. And I bet you're wondering what they're gonna say next.

[Dave Ramsey]

Get out of debt.

[George]

Sell the horse.

[Dave Ramsey]

Yada, yada, yada.

[George]

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[Dave Ramsey]

What's the communication like with your ex right now?

[Caller]

We don't communicate unless it has something to do with the. The home.

[Dave Ramsey]

Oh, my goodness.

[Rachel Cruze]

And just one more clarification. Question. You've been paying your half of it. Is that how you guys have been doing this? Splitting the payments and you've been making your payment?

[Caller]

No, I don't pay anything towards the mortgage. I. I moved out. I had to find another place to stay, so I'm paying where I have to live.

[Rachel Cruze]

Okay, but your name is. Is on the. Okay. You understand why I asked that.

[Dave Ramsey]

You have a legal obligation.

[Rachel Cruze]

You are legally obliged to pay that whether you've moved out or not. So.

[Dave Ramsey]

Wow. I don't see a way out of this unless you guys can find a way to sell it before it forecloses. And I don't know that you can or want to float the payments to help get out of this or have the ability to.

[Caller]

No, I don't have the ability to.

[Dave Ramsey]

What. What are you making right now? What's your income?

[Caller]

About 112.

[Dave Ramsey]

And where's all that money going?

[Caller]

That's a good income to my expenses.

[Dave Ramsey]

What's your rent?

[Caller]

2400.

[Dave Ramsey]

Okay. And what else? Because you're bringing home probably what, eight grand?

[Caller]

No, probably about six.

[Dave Ramsey]

Okay.

[Caller]

I mean, well, after tax, I guess you're saying after taxes. After tax is about 6.

[Dave Ramsey]

Okay. Are you doing any investing right now?

[Caller]

Yes. I mean, I invest in, you know, my 401k and stuff like that.

[Dave Ramsey]

Yeah, we need to pause all of that. You need to act like everything is on fire and you need to work on getting out of this house mess and paying off your debt. So we're not saving.

[Rachel Cruze]

Right.

[Dave Ramsey]

Do you have any savings?

[Caller]

Yeah, I have a. I have some in savings.

[Dave Ramsey]

How much?

[Caller]

I have about 4 in savings.

[Dave Ramsey]

4000. And what is what's owed to get current on the mortgage?

[Caller]

About 12,000.

[Dave Ramsey]

Okay. And he doesn't have anything saved?

[Caller]

I would assume not. I can't say for sure.

[Dave Ramsey]

I would do some homework and find out where you're at in the foreclosure process and find out how much time you have to at least try to get current on payments so that you can get out of the foreclosure process and have time to then sell.

[Caller]

Okay.

[Dave Ramsey]

And that might mean you both put some skin in the game and go, all right, I'm going to put in three grand a month and we're going to get caught up on these payments, which means you need to get rid of all of the expenses in your life. Anything that isn't food, utility, shelter, transportation must go right now, including investing.

[Caller]

Okay, well, do you. Well, I have these credit cards that have, like, high interest rates. Do you suggest taking a loan from the 4.1k? No paying it off.

[Dave Ramsey]

No more debt. If it has the word loan in it. If it has the word consolidation or relief or settlement, run far away. Your income is the solution here.

[Rachel Cruze]

You. Which means you need more income. You may need to get a second job, a third job for a short amount of time. You gotta get these house payments current so that again, to George's point, you have time to sell this house. You don't want to go through foreclosure.

[Dave Ramsey]

Can he get a temporary roommate, a friend of his, to live in the house too, and pay rent to help get above water?

[Caller]

I don't know. That's what I mean. Like I said, we don't have communication. I would suggest that. That that's what he do.

[Dave Ramsey]

You're gonna need to start communicating. You guys entered quite the partnership here to then just flee the coop.

[Rachel Cruze]

I get that you guys don't love each other and you don't like, but you need each other right now. And that really is awful. I get it. But you guys have got to partner up on this thing to get out of this deal.

[Dave Ramsey]

You're on the hook for $465,000.

[Caller]

Yeah, I know. I know.

[Dave Ramsey]

And this could wreck your financial life.

[Rachel Cruze]

This is where I could get him on the phone. I think Ramsey show needs to go the next level and get this dude on the phone and we. We mediate this deal.

[Dave Ramsey]

Oh, my goodness.

[Rachel Cruze]

That would be.

[Dave Ramsey]

That could be a new show.

[Rachel Cruze]

Show that people need to see. I'm telling you, we could help. You guys need to be adults and sit down and figure this out.

[George]

There's no more.

[Rachel Cruze]

There's no more blame here. There's no more. You did this. You said this. This is. We're idiots because we did this. And we've got to figure this out. And then we learn and we lick our wounds and we move on from each other. But this is going to make this breakup 10x worse. Am I right, George?

[Dave Ramsey]

Yeah.

[Rachel Cruze]

Play this out.

[Dave Ramsey]

Well, there's just. You're. You're kind of stuck right now until you guys figure out the next move. And there's sort of the abc. The best option is to sell it for the most you can get for it. And then you're probably gonna lose money on this deal. I assume no one's walking away with cash at the end of this.

[Caller]

Exactly. We accepted that.

[Rachel Cruze]

I'm afraid that this guy, he's just mailed it in. At this point. He's given up and he's just gonna let everything just burn down.

[Dave Ramsey]

Is he gainfully employed?

[Caller]

As far as I know of, yes.

[Dave Ramsey]

How would she know?

[Rachel Cruze]

They don't talk.

[Dave Ramsey]

I think you need to. You need to have a come to Jesus meeting and say, I gotta know everything about what's going on in your life. And you're gonna know everything that's going on in my life until this is all over. But we need to make a game plan.

[Caller]

Yes. Okay.

[Dave Ramsey]

I'm so sorry. You can talk to a real estate attorney and dig into that, but that's gonna cost you too. But I really hope this doesn't end in foreclosure. And you have an amazing income. Use that to your advantage to catch up and get out of this thing with as little damage as possible. Create your free everydollar budget today. The simplest way to budget for your life.