The Dallas Morning News reports that many homeowners who are otherwise financially healthy are finding themselves in a nasty financial predicament that may lead to foreclosure. Their life circumstances have changed and they need to quickly sell their home and downgrade to something more affordable or move to another city for a job.
But as we all know many homeowners are facing foreclosure because of the slumping real estate market which makes finding a home buyer kind of like finding a needle in a haystack. But many homeowners aren’t just waiting around for the foreclosure axe to fall; they’re swapping their homes with others.
How House Swapping Works
Two “buyers” basically purchase each other’s homes on the same day. They each bring their own financing and pay off the other homeowner’s mortgage completely.
This arrangement may benefit those who have decent credit; but are on the verge of a foreclosure because:
- their mortgage is about to reset.
- the mortgage has already reset or c) the need to sell their home because they must move for a job or other necessity.
In these cases house swapping could help a homeowner with decent credit avoid a foreclosure by finding someone to swap homes with.
For those whose credit is less than stellar, house swapping may not be ideal because of the increasingly stringent requirements for getting loans. If your credit is sub par and you are facing an inevitable foreclosure because you can no longer afford your home; but can’t sell it because of the housing market, speak with a bankruptcy attorney about your bankruptcy options.