House swapping ...Does anyone know how that works?... if you trade your home with someone who's mortgage is paid off how does that work? Do you know of a good book or website that explains this?
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Lovely
ANSWERS: 2
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They are still responsible for their mortgage, and you are still responsible for yours. Both parties will have to qualify for financing on their respective new homes. Neither mortgage is "paid off" unless financing is obtained under the new owners name, and a new mortgage is established.
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A house "swap" is just that, if BOTH are free-and-clear. Closing costs will still apply but will be minimal (~2% of the sale price). If one or both still have mortgages, then you must pay off the loans as you would with any other sale and purchase. A Realtor will be happy to assist you with this transaction, however, many can be commissioned as a "facilitator" for a flat fee or 1% of the sale price. Good luck.
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