– Pat and Scot are
teetering on the edge. Six kids, facing foreclosure,
and their monthly incomebarely covers
their current expenses.The family isn’t making
mortgage payments.I’m gonna do everything I can
to help them.Scot and Pat have given me
total access to their financesso I can teach them
how to run their householdlike a business.♪ ♪Pat, Scot.
– Yes. – Yes.
– Victor Antonio. Pleasure to meet you.
– Nice to meet you. – Same here.
– Scot, nice meeting you. – Scot.
– It’s a pleasure, man. – All right,
so tell me why I’m here. I got your information. I want to understand. – I mean, simply,
we just need help with our finances, man. We need to get
some things straight. – Okay, I looked
at your paperwork. So tell me,
how did this happen? Why would you miss
a mortgage payment? – So when I started
getting behind on the house, it was a combination
of trying to make ends meet. She hadn’t worked for a while. Saying, “Okay, I’m only
a few months behind.” And then it was six months. Then it’s like, “This thing
is getting out of control.” – So when was the last time
you paid the mortgage? – 2013. – So how many months
have you missed already? – Uh, about 19, 20. – So what’s your mind-set? Do you want to keep the house? – My emotional attachment
for this house has always been
it was my first house. I mean, I grew up in Camden. Camden is changing.
It’s getting better. – How much do you make a year? – $105,000.
– $48,000. – $48,000,
so $155,000. Take taxes out,
that’s 10,000 bucks a month on average, right? What’s happening to the $10,000?
– I have no idea. – Do you have $10,000
worth of expenses? – Evidently.
– Evidently we do. We don’t know where it goes. – My son just had a prom. My daughter is in college. We got engaged. You know, we’re having
an engagement party. We pay a car payment.
We pay car insurance. – That’s your Range Rover,
isn’t it? That’s a nice car. So how much are you
paying on that? – $650.
– $650? Why don’t you get rid
of the Range Rover? Every month you’re
going in the hole 700 bucks. That’s $650 plus the insurance,
and I’m being conservative. – It’s true. – If I can understand simply why you can’t
make that decision, that gives me some insights into what you’re thinking about or what you’re
not thinking about. You got engaged. Congratulations,
by the way. You got that.
– I got that. – So how much are you
paying on that? – Oh, you know,
about $12,000. – You’re over $300,000 in debt, and you want to splurge
on a $12,000 rock? That’s a lot of mortgages
you could have paid. So what’s your
engagement party gonna cost? – $2,500.
– Do you have $2,500? How much do you have
in savings? – Right now?
– Yes. – We’re not saving. – So you have no
emergency reserves. Zero.
– Yeah. – The number one cause
of divorce is what? – Probably money.
– Money. So here’s what
I want you to do. Just turn around.
Just turn around. Imagine having to show
your kids that right there. Any day now,
the bank can take your house, and you and your family
will be out on the street. The fact that you’re still
in this house shocks me. So at this point,
this is officially a takeover, which means
we’re gonna get started. Let’s go in the house, man. – Let’s go.
– Let’s go. Louis V? – I got it, actually,
when I was in Europe. It was only $750.
– It was what? What did you say to me?
– $750. – It was “only”? Did you insert the word “only”? $750?
– I did, I did.