Young Homebuyer Makes $25K In A Month But Is 60 Days Behind On A $519K Mortgage — Dave Ramsey Says, 'The Borrower's Slave To The Lender'

Core Insights - A young investor faced significant financial difficulties after entering a rental property deal, leading to ongoing losses and an unaffordable mortgage [1][2][4] Financial Situation - The property is associated with a $519,000 conventional mortgage, resulting in a monthly loss of approximately $1,500, with the investor being 60 days delinquent [2][5] - The estimated selling price of the property has dropped to around $500,000 after failing to attract buyers at a higher listing price of $540,000 [2][4] Investment Background - The deal originated from a house-flipping company, where the investor was encouraged to participate without fully understanding the financial risks involved [3][4] - The down payment was covered, but all mortgage and related debts were placed solely in the investor's name [3] Income vs. Cash Flow - Despite strong income, with the investor earning about $25,000 in one month, the funds were allocated to credit card debts rather than addressing the mortgage [5][6] - The investor expressed doubts about the ability to catch up on mortgage payments due to the financial strain [6] Complications - The situation is complicated by tenants still residing in the property, with lease agreements affecting potential solutions [7] - A short sale is suggested as the only viable option, allowing the lender to accept less than the owed mortgage amount [8]