House swap???? - Posted by michele whitford

Posted by dewCO on August 25, 2000 at 23:38:26:

Either way, the other party is obligated to perform as they have agreed in writing. If one of them “drops out” then the other one has to peform, as they’d be obligated jointly. At such time they can’t perform, then you have to deal with it as the law dictates–eviction under a lease/option.

You might investigate putting it into a trust which is supposed to help give additional “shelter” from the due on sale being called. Thee have been some recent posts on that here, or check www.cal-equity.com for the PACTrust concept.

House swap??? - Posted by michele whitford

Posted by michele whitford on August 24, 2000 at 24:48:33:

Hi everyone this might be kinda long but here goes.We are selling our house to try to buy one particular home that is very unique as far as surrounding go. It appraises at $235,000 but they want $250,000(5 acres is water and supposedly they cant put a value on water so the 5 acres of water is completely left out of the appraisal)They need a place to go and the idea of trading homes was brought up which would be good for both of us because we wouldnt have to find a buyer.As of right now there are no realtors involved we are just trying to get to some common ground and be fair to both parties. Our house is appraised at $162,000 and we owe $110,000, there loan is $220,000.My husband thinks we have too much equity and they dont have enough. Any ideas on how we might make this work aside from the traditional realtor and conventional loan??? Also if we did a simultaneous closing would the costs be cheaper than doing two seperate closings?? Thanks for any input.

Re: House swap??? - Posted by dewCO

Posted by dewCO on August 24, 2000 at 16:43:21:

Proably not any cheaper because you are closing 2 different transactions. A simo. closes twice ont he same proeprty.

Anyway, the $220,000 loan is on the larger property I gather. You negotiate the price and terms just like any other deal. Just because you want to “Swap” doesn’t mean its even straight up. And I think you are correct, you have more equity, so they owe you osme money at closing for the difference you neogtiate, or you carry a second and they make payments to you for the difference. What are you doing with the loan on each property keeping them in place or you each getting new financing?

Re: House swap??? - Posted by michele whitford

Posted by michele whitford on August 24, 2000 at 22:41:23:

we’re pretty new to all this so when we thought about keeping the same loans we thought about the due on sale clause and that scares us a little. I also thought about a l/o for each of us but the other seller has health problems. If something should happen to him before we actually bought the home what would our position be??