i feel kindda stupid but you are right... i never looked at it in the land way. i've built a few houses, and sell them before any maintenance is required... after buying, renovating, and basically breaking even on an old house that needed maintenance I said never again. reno's cost twice as much and never add what you pay to the value of the property... after that I built new, lived it in, sold it before it needed work.
so...what’s her total monthly payment? 70k at 10.25% in 14 years is about $800/month. Has she priced rentals in the area? With a couple kids on Board-Depending on the market-she could end up paying more to rent.
I was thinking the same thing. It’s probably “falling apart” only because she just doesn’t want to live there anymore. I would stay there and treat it like rent until she gets closer to what it’s worth. She knew what she was buying when she bought it to begin with
If it's on wheels, or arrived on wheels, it's going to depreciate to zero. In fact at some point, you'll probably have to pay somebody to take it away.
Even owing 70k it is probably better to repair it and pay on it until she is not upside down. Live with the cards you were dealt. Her parents are there and the kids stay somewhat adjusted. Rent will probably be higher.
I love to listen to The Dave Ramsey Show, because I make so much less than most of these callers on the show, I am still so much better off than they are. Every time I'm around my family, I tell them to listen to the Dave Ramsey Show. Math and money can be a lot of fun!
eilm lilm It is fun, isn't it?! When I sit down to revisit/tweak my budget once a week or so it feels like meditation. I've never understood the people that say they don't like thinking about money/personal finances/budgeting/etc.....its like a natural high🥰
Sir We Are About to Die I still have debt, nothing compared to a lot of these callers, but debt nonetheless. Yet it's still like meditation for me🤷🏼♀️ It gives me peace seeing my money do as it's told rather than occasionally looking at the bank statements in horror. I think it has more to do with the frame of mind than debt-ridden vs debt-free.
I’m surprised they didn’t talk about her budget. Depending on what area she’s in-it might be equivalent or cheaper than renting. The gross cost of a roof over their heads is important in this situation.
HelloGorgeous1 , Dave explains the answer to his opinion on this in another video. He says that it’s not financially a good idea to be paying twenty years on something that’s going down in value. That’s why he’s explaining in this video how to get out of this mess as quickly as possible. In twenty years she would have paid $150,000 or more on a $70,000 loan after interest for a home that would then be completely valueless. It’s best to get out now and put those funds in real estate that gains equity.
The issue isn't the cost of the home vs renting. It's actually that she doesn't own the land and the mobile home loses value as it deteriorates. She's better off trying to get out of it NOW and take a hit while paying off everything she owes. Than to let the interest keep compounding and wasting money she could save over the next 5-10 years. By then if she's smart she could be debt free and have a down payment saved up for a proper home.
At this point-It’s not an asset. In her current situation-she doesn’t have $900 a month in her budget that she could be saving. She will EITHER pay $900 to live in the trailer OR she pays $1200+ to live in a rental.
torresWAV I am really interested in muddling through this. If the cost of renting is more than the cost of her current payments-how is it better for her? As Dave said-she’s going to owe the $ either way-she has negative equity-there’s no $ in the property. She’s going to have a housing cost either way. If it’s $1200 to rent-she’s going to have $300 LESS per month to pay down her other debts. How does that make sense in her current situation? Unless Dave is suggesting she live there till they repo it and use that $ to save for apartment and pay debt. But I’ve seen this movie before-it requires a lot of discipline and a firm plan to actually put that money aside.
@ 8:00"Pause.....And in the mean time I can pay off my credit cards" this women is going to make it because of her attitude! Great job with the RN. Keep it up!
I’m cheering for her too. Single mother with 3 kids, trying to do the best she can and it must feel like the world is caving in on her. For her sake, and those kids, I hope it works out for her
why isn´t it possible to sell the thing and have the buyer move it to another place? sure its bigger than a travel trailer but per definition it should still be movable.
She'd still owe the difference, no matter what she sold it for, like Dave said. She could sell it for 20k, but the difference would be 50k she'd still owe, unless like Dave said, she calls the mortgagers and offers them less as a settlement offer.
This is the first time that I’ve ever heard Dave Ramsey advice Repossession as a viable option, not that I’m saying he’s wrong I agree with him it’s just so UNDave Ramsey like
He's recommended for some car owners, and home owners too. It's not ideal, but it is a way to stop the horrible money hemorrhaging for some of these folks.
For real! She's stuck with it, now deal with it! But she doesn't want to and is trying to find the cheapest, easiest alternative for HER, not the situation.
Or take a couple hundred bucks, fix up the mobile home and rent it out till it's paid off. No repo, no foreclosure, no bankruptcy. Move on with your life
She needs to have all contact with lender in writing, no phone calls and keep a ledger of dates, time, names of contact, and what was discussed. If by email print out copies.
Oh & Dave is glossing over an important part when he’s telling her to let it be repossessed: when signing you sign a ton of papers about outside mediation vs going to court. You also sign papers saying you understand your wages will be garnished should you stop paying. It’s scary af.
Brandon Kick I've only been through 1 wage garnishment but it seemed easy enough, on their end anyway lol. In the case of the mobile homes, they have you sign your life away in some very crazy & specific ways. I'm not sure how it plays out for most people or most contracts in the end. Hoping to offer a smaller cash buyout this summer so hopefully I'll never know much more than I do now🤞🏻
You make a excellent point. So, most of these callers made a series of bad decisions to get to where they are. Then they call Dave. In my opinion, post call, its highly unlikely the bad decisions stop. I’m curious how many people significantly turn it around post-Financial Piece University. Even over eaters anonymous acknowledges long term wait loss with their program is in the low single digits. Shockingly, their dismal success rate is respectably high when compared to other mainstream weight loss programs. Again, I’d like to know the success rate of Dave’s program.
Doug Ales I’ve been on the actual live show, not an actual call but the live channel, and people ask basic questions on it. It seems to me Dave’s team tries to really get more viewers with these unique situations instead of getting serious viewers with videos that everyone understands. You don’t see a video where someone just wants to know which debt to pay off first or if the person should sell the car.!
T 25 yeah but mobile homes are better quality than what this lady is saying. There’s no way it’s falling apart unless she and the family have trashed it.
You’re probably right. Was reading up on Mobile/manufactured homes and found some reasonable points supporting their longevity. Caller definitely made a messy situation for herself
That's what happens when you dont do your homework before buying a mobile home... you gotta do your homework and figure out what mobile homes have the most quality in materials and building.
@@mikederucki negligence most likely...though..we don't know what manufacturer..was it new?..was it used? did she do her homework? Was it inspected? Maintenance? Is she saying the whole story? Is it still in "OK" condition and she thinks she can just dump it and turn around and buy a home? It seems someone has gotten the Bankruptcy idea into her head and she thinks it goes away sooner than she thinks. That's one of our problems with handling money as a whole. She knows there's a way to get out of it. Dave is offering a few options. The thing is as soon as she's found a way to clear the debt. She wants to add more by buying a home. I'm sure she'll jump at the first chance she gets to buy to do it without research, proper Saving, etc
The mobile home is not worth $35.000 if it does not come with the land. In this case renting would have been better in the first place. Then at least now she could move on with her life. Mobile homes aways go down in value.
This is surprising. The lender will hold her to the difference. She needs a place to live and it would be better to pay down the difference. I wonder who they bought it from to start with. Why is it falling apart? She should maintain it and rent it out to someone rather than fasten a $50K anvil around her neck with no options anymore. Judgement, wage garnishment, with 3 kids? Bankruptcy here, Dave...
Bad advice. She can rent the mobile home out for the payment normally. They make great rentals. She likely will pay as much in rent with 3 kids. She needs to repair the home. I own 13 mobile homes but most I got for "free" or nearly free from someone who did pay it off and sold the land later and the new owner just wanted it moved. Fixed up they make great rentals and homes to live however that is if you got them for free. People that spend a ton of money on a mobile are nuts. They depreciate fast and nobody can purchase them used except with cash normally. They are just not treated like houses.
@Missy - That's a good idea. Her ex - if he has any custody - might object. Typically both parents/guardians need to agree to a change in kids' location. Just saying...
SunshineLaw Fan my guess is if he’s not concerned with his kids living in a mobile home that’s falling apart then he’s not too concerned if they move....
Thought she was getting a “ free” house make no mistake about that, otherwise she would have given up the mobile home without hesitation in the divorce.
On her parent's property so no rent for her - use cash, get it fixed up to live half way decently, pay off the debt then and only then can you move - I wouldn't forclose
@@lesliek7776 you're right...some "park model" mobile homes are not meant to be moved with ease. On another note in some states one that is hired to repossess cars, trucks, rv's etc... are not allowed on private property or at minimum require permission...this could get complicated
She'll still owe LOTS of money that she doesn't want to pay. She doesn't get that she fu××d up and has to take it on the chin her mistake. THAT'S the point of this call.
I'm trying to figure out how she is making so little monthly. Even as a new grad in Texas they usually pay pretty well from what I've researched. Maybe she must be in a really small town.
Huh, I didn't think there was any real difference between foreclosure and repossession - I assumed that foreclosure is basically just a repossession which happens to apply to real estate. Apparently, according to what just googled, the main difference is that repossession is a lot faster since a repo can just be done immediately while foreclosure requires a whole legal process. I guess that explains why that distinction matters here, as the mobile home could just be taken at any time if payments are missed.
They owe 2 mortgages ?? EX husband should have been stuck with one of those mortgages in the divorce ??? Did I missed something ?? Don't blame this mess on it being a mobile home....stupid people live in all kinds of houses 🙄
One mortgage is held by her parents who own the land that the mobile home sits on (as part of their [stationary/normal house] home, which is also on the property). The caller in this video only has one mortgage on the mobile home itself.
She should sell it to the parents who own the land - then the parents make it a rental. Once the land is paid off, they can sell the mobile home and the land it sits on.
@Brandon Kick That is true Brandon but in my case We've had a long standing relationship with BECU for 29 years and I complained at the members annual meeting and within a month they refinanced my loan as an R.V. and we got 4.5% financing and they paid for the appraisal.. and then 14 months later we paid it off.. So there are ways around it. If the financial entity is willing help.. Like lawyers would say: "It Just Depends"
No, you don't have to sell the land with it, but she doesn't own the land, so she couldn't sell it with the home if she wanted to; her parents own the land.
Waiting for that other viewer who has high regard of his mobile home to comment... There’s no such thing as baby step “2-and-3”. “That’s not a foreclosure, that’s a reposession” That is why, kids, living in a mobile home has too much cons.
@John Lester it's the push towards minimal living, no one really needs that much room to hoard stuff they dont need, in asia there are rooms smaller than that. These off grid tiny house has the ability to be completely self sustaining
@John Lester it's doable for a big family you should watch some of the tiny house nations shows. If you teach your children to grow up living a minimal lifestyle then they understand that you dont need a lot to grow
Depending on how she does it couldn’t she just rent it depending on the area and shape of if her payments are around 800 and she can just charge 900 and keep it and pay the 100 towards the debt ?
I think in the beginning, she said the land was legally only supposed to have one property. So renting hers (the 2nd and likely illegal property) would probably become an issue. Plus, the parents may not want renters on their property.
Why does the ex-husband deserve to be dragged back into this? She took it in the divorce, it's on her parent's property, and she was and is still living there. If she gets repo'd, eventually she will have to go through the stress of all the legal battles. All the letters, the collectors hounding her, the summons, the eventual threats to garnish wages. That's not something a single mother and nurse should go through. She could end up killing someone on the job due to medical error. Either live there or go into bankruptcy.
She took it, now take it! Single mother or not; these were her and her husband's choices and she got STUCK, just like the men do when divorces go down. No boo-hooing for a single mother who's trying to skirt her responsibilities!
