How do I switch homes/mortgages with a family member?

Question by ppnj4: How do I switch homes/mortgages with a family member?
I have a small home at the shore with 29 yrs left on a $ 207,000 mortgage (est worth $ 280,000). My Aunt In-Law has a large home (est worth $ 300-500,000). She wants a small home at the shore – I want a large home. Seems like a match made in heaven but we are unsure of how to go about switching. Due to a recently failed business I have no saving, very bad credit, just enough income to pay my current mortgage, and have already been turned down for refinancing or the possibility of a new mortgage. I would guess since she has lived there all her life she owes little to nothing on her mortgage, and I know her income is basic. Her nest egg is the equity in her home. We thought about having her hold the note on her house with a “rent to own” deal but that still leaves our mortgage. A realtor said to sell out right to each other but without the ability for us to get a new mortgage we wouldn’t be able to afford her home. She doesn’t want to lose her equity either. Any advise?

Best answer:

Answer by goz1111
will your aunt carry the note on her place if she has a low note?

Know better? Leave your own answer in the comments!

This entry was posted in Q&A and tagged , , , . Bookmark the permalink.

One Response to How do I switch homes/mortgages with a family member?

  1. GEE-GEE says:

    Why don’t you just move into each others houses for a while. You can then save up a little of money and get your credit back on track. Then you can purchase each others houses. This may be a little bit a trial period and make sure both of you are happy with the ones homes.

    If her home is worth $ 500K I dont think you will be able to afford that kind of payment so you may have to purchase it for $ 500K but take a mortgage out for $ 300k and have her put a lien on your new home for $ 200k for 5 years until you can start making more and refinance to pay her back.

Leave a Reply

Your email address will not be published. Required fields are marked *