Misty Williams of the East Valley Tribune covered house swaps last summer. I remember because I was quote in her article.
I still don’t understand how your mortgage holder would look upon this. You just gave away his collateral! He might frown on that.
Do the home swappers agree to keep ownership and pay the mortgage of their old house? I don’t get it.
{ 2 comments… read them below or add one }
Shailesh Ghimire 10.25.07 at 9:12 am
Most mortgages have a due on sale clause. So, if you transfer title you’re selling right? So, technically if you’re not paying back the mortgage you’re in violation. I don’t know of any lender that would allow this - if they found out. I’m assuming all this is going on without the lenders knowledge. Another creative term is “mortgage wrapping”.
John Wake - Realtor 10.25.07 at 9:35 am
Okay, so they could wrap each others mortgage, which could work as long as the lender doesn’t find out about it.
Most loans today aren’t supposed to be wrapped are they?