However, being a mortgagor/debtor under a mortgage doesn't have to be this grim!

USAA gives examples -- "pay off transition expenses, consolidate high-interest credit card debt or buy a reliable, economical car."

What I'm actually asking if you were to wholesale a pre foreclosure does the new buyers cash go straight to the mortgage company to settle the debt or to the seller then he is to settle his existing mortgage?

Because we have 24k in debt or should I wait to pay my debt first?

In this instance, you could collect $50k plus FC costs and any excess proceeds would go to junior lienholders and, once they're paid off, to the previous owner/debtor.

In judgments that require the repayment of a debt, the court may place a lien against the debtor's real property as collateral for the judgment's creditor.judicial foreclosureA type of foreclosure proceeding used in some states that is handled as a civil lawsuit and conducted entirely under the auspices of a court.

I saw too many landlords get plastered when it went bad.. so its either own the rentals with minimum to no debt or be in Notes which we do a lot of and own the debt not be in debt.  or

They are in no position to own and you are in no position to be taking on debt or bad deals for them .

There are ways to invest actively or passively, short term or long term, owning property or just controlling it, being a creditor or a debtor and all of those in various combinations.

@John Morgan, I don't disagree with Dave Ramsey all the way in regards to disliking debt, or you for that matter.