Online House Trading

NEW -> Contingent Buyer Assistance Program
PANDA said:
http://www.onlinehousetrading.com/Default.aspx

I came across this site and found it to be very interesting. I am wondering if anybody here has ever traded their real estate with another homeowner for a like property in another state before? Irvine Renter, Zovall, or IR2, what do you guys think about this idea? Pros and Cons. Is it perfectly legal to do something like this? I am sort of entertaining the thought of possibly trading out my Georgia property for an Irvine property of similar appraisal, equity, desirability, and age. I wonder how something like this works?
Click to expand...

For ease of use, here is the "Fundamentals of House Trading" page to explain how it works.

I'm not the expert opinion you are seeking, but just looking through it briefly, I actually can't think of one reason this would be a desirable option for today's seller. I can't imagine someone who wants to unload their house today would want to be obligated to purchase their buyer's property. Also as the number of organic sales decreases, I think you will have fewer sellers who are able to utilize this option. Not to mention, I can't imagine the odds of having a successful match-up.
 
Yeah, I took a look at it more closely and it is not as great as i thought as it is not legal for one person to take ownership of another person's mortgage and vice versa. It would be be same as selling my Georgia property home to my tenant. It is an interesting concept though. I guess something like this would work if both parties have no mortgage on their homes and are willing to make the trade.
 
PANDA said:
Yeah, I took a look at it more closely and it is not as great as i thought as it is not legal for one person to take ownership of another person's mortgage and vice versa.
Click to expand...

But it says each party gets a new mortgage.
 
SoCal78 said:
PANDA said:
Yeah, I took a look at it more closely and it is not as great as i thought as it is not legal for one person to take ownership of another person's mortgage and vice versa.
Click to expand...

But it says each party gets a new mortgage.
Click to expand...

Exactly why this "house trading" concept is not that great. I originally thought that equity in the home matters. For example, if I was swapping with a guy in Irvine and he has $150,000 equity with a $350,000 mortgage and I also have equity of $150k in my house with a mortgage of $350,000 and he is interested in my house and I am interested in his, he is willing to take over my mortgage and I am willing to take his it would be a good trade. However, Onlinehousetrading.com's concept is just buying one another's house with a new mortgage. Not very exciting in my opinion.
 
It's not their concept that is not exciting, but how mortgage contracts work that are not exciting. 98% of mortgages are not assumable, therefore the likelihood of your concept happening is about 2%. I know that option ARMs are assumable. Do you want to assume an option ARM? And, think about it for a minute. If we take your scenario above, but you have an interest rate of 4.75%, and the house you want to assume has a rate of 8%, would you want to make that trade? Wouldn't it make more sense to get a new mortgage at a rate 4.75%, since rates are that low right now?
 
graphrix said:
It's not their concept that is not exciting, but how mortgage contracts work that are not exciting. 98% of mortgages are not assumable, therefore the likelihood of your concept happening is about 2%. I know that option ARMs are assumable. Do you want to assume an option ARM? And, think about it for a minute. If we take your scenario above, but you have an interest rate of 4.75%, and the house you want to assume has a rate of 8%, would you want to make that trade? Wouldn't it make more sense to get a new mortgage at a rate 4.75%, since rates are that low right now?
Click to expand...

Agreed. I wouldn't be interested in making the trade if my mortgage rate is 4.75 and the trading party has a 8% mortgage. Both parties will take on a new mortgage at 4.75%, and it would not matter how much equity they have in their house, as long as they both like each other's house. I did notice several Irvine homes listed on the site. Perhaps I should give it a shot?
 
You must log in or register to reply here.
Back
Top