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Janelle from Raleigh, North Carolina, says she “did the ultimate no-no” when she bought a house with someone to whom she wasn’t married. After about a year, they broke up and she moved out.
Now, they’re four months behind in mortgage payments, haven’t been able to sell the house and are facing foreclosure.
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She’s also racked up $25,000 in loans and credit card debt. Since she no longer communicates with her ex-fiance, she isn’t sure how to fix her situation, so she called into The Ramsey Show to find out what her options are.
Both Janelle and her ex are on the mortgage and property deed.
“We’re four months behind,” she told the show’s cohosts, and while they’ve been trying to sell the home and recoup their losses, so far they haven’t had any takers — and they still have $465,000 left on the mortgage.
When the romance is dead — but the mortgage lives on
Now, Janelle says they’re “in the process of asking the mortgage company for a short sale to see if that’s even possible.”
“I don’t see a way out of this unless you guys can find a way to sell it before it forecloses,” cohost George Kamel said. “That’s going to be your best bet — just trying to sell this thing ASAP even if you have to lower the price.”
First, however, they need to get caught up on their mortgage payments and try to avoid foreclosure. While her ex tried to float the mortgage for a few months, he’s now stopped making payments. Janelle also stopped paying her share when she moved out because she’s paying rent elsewhere.
But when your name is on the mortgage, that reasoning doesn’t fly.
Janelle brings home about $6,000 a month after taxes, pays about $2,400 in rent and still has money leftover for her expenses, which include putting money into her 401(k). She also has about $4,000 in savings.
“We need to pause all of that,” Kamel advised. “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.”
They’re about $12,000 in arrears on their mortgage, so they need to “both put some skin in the game” to get caught up on payments. That means giving up any expenses that aren’t necessary — including investments — until they’re out of this hole.
If you find yourself in a similar situation, consider going through your budget with a fine-tooth comb to identify any areas where you could cut corners.
One area where you may be overspending is on car insurance premiums. The average annual cost of full coverage car insurance premiums rose by 30% between June 2023 and June 2025.
With tariff uncertainty continuing, rates are expected to increase another 4% to 7%, according to data from Insurify.
The good news? You can reduce your monthly bill by shopping around and comparing rates from reputable insurers near you through OfficialCarInsurance.com.
All you need to do is answer a few questions about your car and driving history, and OfficialCarInsurance.com will sort through their database to find the most affordable rates for you — all in one place. This way, you don’t have to spend hours scouring the internet or fielding calls from agents.
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Get started today and find rates starting at $29/month.
Read more: Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
What to consider before you buy a house together
Buying property with someone you’re not married to — whether a partner, friend or family member — can be rewarding, but it does come with legal and financial risks.
Long before you start searching for a home together, you’ll need to decide on a budget and how much each of you will contribute.
Like with insurance, shopping around and comparing mortgage rates might help reduce the strain on your finances. You can save an average of $80,024 over the lifetime of a 30-year fixed-rate mortgage by shopping around, according to research from LendingTree.
And the process is now easier than ever with Mortgage Research Center. To get started, just enter some basic information about yourself, such as property type and zip code, total cost, desired down payment, and your annual income and credit score.
Then, Mortgage Research Center will connect you to a lender with a customized mortgage offer. You can set up a free, no-obligation consultation with your match to see if they’re a good fit.
If you’re not satisfied with the lender you’re matched with, Mortgage Research Center allows you to continue searching and view other offers.
But you’ll also need to account for expenses above and beyond the mortgage, such as property taxes, homeowners associations (HOA) fees, maintenance costs, utility bills and any other household expenses.
While you’re running these numbers, make sure to take a long look at any home insurance costs. You could save an average of $482 per year by shopping around for home insurance quotes and selecting the lowest possible price for you through OfficialHomeInsurance.com.
Here’s how it works: Enter some basic information about yourself and the property you’d like to insure, and OfficialHomeInsurance.com will comb through over 200 insurers and display the best deals available in your area.
Getting started is completely free and just takes two minutes.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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