Monday, 06 February 2012 19:05

Finding Foreclosure Homes

Written by  Dave Ramsey
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Question: We’ll be completely out of debt in September and looking to buy a home in the next year or two. We’re thinking of buying a repo home. Do you have any suggestions on where to find these?


Answer: One way is to buy the home from the owners before the sale happens. It’s better for them because they realize some money and it stops the foreclosure. It’s better for you, too, because you won’t find yourself in a bidding war later on the courthouse steps!

You can also find listings in your local newspaper under the legal notices section, and if you live in a metropolitan area it’s not hard to find a legal newspaper that lists incorporations, real estate transactions and foreclosures.

Question: I’ve never heard you discuss at what point it’s advisable to let someone else make and manage your investments. Also, is there a point at which it’s good to go with a fee-only financial planner?

Answer: I think it’s always a good idea to do it yourself. And to be honest, I never recommend fee-only planners.

Don’t just turn everything over to someone else – no matter how many letters they have after their name – and let them manage it all or make all the decisions for you. You’re the one who made the money, so you should take care of your own stuff. In lots of cases people looking for this kind of help have a greater net worth than the bozos dishing out advice and wanting to “handle” it all.

None of this stuff, investing, personal finance, or saving, is rocket science. You need to be in control of your money. Now, can you have counselors in your life? You bet! Everyone needs the benefit of people around them who have wisdom and experience.

But it’s never a good idea to just blindly trust someone. If you do, you might end up like an old, washed up boxer – no money and no teeth!

Question: My husband and I both work, and we just bought a great house for $150,000. He makes $50,000 a year, and I make about $30,000. We’ve been getting lots of different mortgage life insurance offers in the mail. They say they will pay off the house if one of us dies. Do you think we should take advantage of this?

Answer: No! These kinds of offers are terrible unless you’re uninsurable, because most mortgage life insurance policies are a lot more expensive than term life insurance.

You and your husband both need about eight to 10 times your annual incomes wrapped up in good, level term policies. Forget that overpriced stuff.
These will take care of you both, and the house, for a lot less if something unthinkable happens.

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