Foreclosure Vs. Renting
If he buys a foreclosure property, Darrell's house payment would be equal to renting an apartment. Should he buy?
QUESTION: Darrell lives in Washington, DC. The cost of living is high, and he’s getting married later this year. He makes $43,000 and has $15,000 in debt. He wants to rent an apartment at $900 a month. He has the chance to get a foreclosure property for $115,000, and the payments would be about equal to the rent. Should he do it?
ANSWER: I would beg you not to do this deal. Get out of debt, have an emergency fund and be married for a year before doing this. It takes a year of being married to know how you want to do things together. You have to get to know each other and love each other. Don’t take on financial stress early on in your marriage. You’ve got plenty of time to be a homeowner, so take your time.