“Your son is a complete parasite.” An Ohio woman’s son struggled to improve his credit score for 16 years. Now the family finances are complicated by having a jointly owned house. Dave Ramsey responds.
But Jean from Cincinnati went one step further. In an episode of symbolic offer, She revealed that she decided to help her son (on a temporary basis) by buying him a house outright.
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However, it has been 16 years and his credit remains poor even as his family expands. Meanwhile, Jane has gone through a divorce, and her ex-husband still maintains ownership of the son’s property.
Ramsey was not happy with the chaotic situation. “Your son is a complete parasite,” Lejan said.
Complex, long-term financial arrangements often complicate relationships. Here’s what Ramsey advised Jane to do.
Sixteen years ago, Jan’s son and his wife were raising three children in a one-bedroom apartment. She described it as “bursting at the seams”.
To help, she and her ex-husband purchased a house in their names. They hoped the couple could clean up their credit file and refinance the house in their names within five years. However, that never happened.
Jane’s son now has four children and is still not considered creditworthy enough to qualify for a mortgage — even though the amount owed, according to Jane, is just under $30,000.
Nearly 16% of Americans have a bad FICO credit score of below 579, according to Experian. As a result, this group may face challenges borrowing money for credit cards, mortgages, or personal loans.
The good news is that credit scores can be improved.
Experian claims that most credit building strategies take just a few months (or a few years) to implement. Even serious cases, such as bankruptcies, can be resolved within seven to ten years. This means that Jane’s son had enough time to improve his financial situation, but inexplicably failed to do so.
“Sixteen years, with the balance still in the tank, tells me he wasn’t managing money well.” Symbolic offer said co-host George Kamel.
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Jane is now in her mid-60s while her ex-husband is 70 years old. They both had health problems and never married again.
She said: “The problem now is taking (the property) out of our names, and (my son and daughter-in-law) do not have the credit to enable them to obtain a loan.”
Families now have few good options left. Jane believes she can pay off the remaining balance of her mortgage with her Retirement savingsBut she is not in contact with her ex-husband so she is not sure about his share. She’s also concerned about the tax implications of giving her son the house.
Fortunately, Ramsey doesn’t think the paperwork will be complicated. The bigger issue, in his view, is relational.
Stop enabling it
If Jane decides to pay off the mortgage balance and pass her share on to her son, Ramsay recommends using the consolidated estate tax credit. This is a combination of the gift tax exemption and the estate tax exemption, according to SmartAsset. Through 2025, the consolidated credit exemption is $11.7 million per person.
As for the ex-husband’s share, Ramzi believes that it is easier for everyone to communicate and coordinate to reach an amicable solution, but he believes that the son should deal with the matter if that is not possible.
“Your son deserves chaos because… He is “A mess,” Ramsey said. He also described Jan as an enabler. “When you give a drunkard a drink, the drunkard is very happy with you, but you are not really helping him, you are helping him with his misbehavior which is causing him harm.”
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