im havin a hard time payin house payment. has anyone ever traded their home?

Question

i knew someone who had done this along time ago. my house is large and so is the yard. i still need 4 bedrooms and alot smaller yard.

Answer 1

The problem is "who you gonna trade with?" Why not just list it with a good Realtor before it's too late?

Answer 2

You can trade homes but that would require finding someone willing to trade with you and you would need approval from your mortgage lender to get them paid off and reopen your loan using your new home as collateral. It gets complicated.
Your best bet is to attempt to sell your current home and purchase another.
If you owe more than the home is currently worth, look into doitn a "short sale". A short sale is where you sell the hoem for less than what you owe on it because the market no longer supports the value. You need lender approval for such a thing and they typically only approve it in cases of hardship.

Answer 3

When you say you knew someone who traded their property, I wonder if you are not referring to a 1031 Exchange. If this is what you are thinking of, I'm not sure how it would benefit you in this case:

A 1031 Exchange, also known as a Like-Kind Exchange, is a way of structuring a sale of certain kinds of property so that the seller’s profit or gain is not currently taxed. Instead, the property that is sold is replaced with another “like kind” property. If the transaction is properly structured, the seller’s profit or gain is deferred to a future date.

Section 1031 of the Internal Revenue Code, 26 U.S.C. § 1031, provides:

"No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment."
The sale of the relinquished property and the acquisition of the replacement property do not have to be simultaneous. A non-simultaneous exchange is sometimes called a Starker Tax Deferred Exchange (named for an investor who challenged and won a case against the IRS). See Starker v. United States, 602 F.2d 1341, 79-2 U.S. Tax Cas. (CCH) paragr. 9541, 44 A.F.T.R.2d 79-5525 (9th Cir. 1979).[1] For a non-simultaneous exchange, the taxpayer must use a Qualified Intermediary, follow guidelines of the Internal Revenue Service, and use the proceeds of the sale to buy more qualifying, like-kind, investment or business property. The replacement property must be “identified” within 45 days after the sale of the old property and the acquisition of the replacement property must be completed within 180 days of the sale of the old property.

Section 1031 is most often used in connection with sales of real property. Some exchanges of personal property can qualify under Section 1031. Exchanges of shares of corporate stock in different companies will not qualify. Also not qualifying are exchanges of partnership interests in different partnerships and exchanges of livestock of different sexes. However, as of 2002 IRS ruling (see Tenants in common 1031 exchange), Tenants in Common (TIC) exchanges are allowed. For real property exchanges under Section 1031, any property that is considered "real property" under the law of the state where the property is located will be considered "like-kind" so long as both the old and the new property are held by the owner for investment, or for active use in a trade or business, or for the production of income.

In order to obtain full benefit, the replacement property must be of equal or greater value, and all of the proceeds from the relinquished property must be used to acquire the replacement property. The taxpayer cannot receive the proceeds of the sale of the old property; doing so will disqualify the exchange for the portion of the sale proceeds that the taxpayer received. For this reason, exchanges (particularly non-simultaneous changes) are typically structured so that the taxpayer's interest in the relinquished property is assigned to a Qualified Intermediary prior to the close of the sale. In this way, the taxpayer does not have access to or control over the funds when the sale of the old property closes.

At the close of the relinquished property sale, the proceeds are sent by the closing agent (typically a title company, escrow company, or closing attorney) to the Qualified Intermediary, who holds the funds until such time as the transaction for the acquisition of the replacement property is ready to close. Then the proceeds from the sale of the relinquished property are deposited by the Qualified Intermediary to purchase the replacement property. After the acquisition of the replacement property closes, the Qualifying Intermediary delivers the property to the taxpayer, all without the taxpayer ever having "constructive receipt" of the funds.

The prevailing idea behind the 1031 Exchange is that since the taxpayer is merely exchanging one property for another property(ies) of “like-kind” there is nothing received by the taxpayer that can be used to pay taxes. In addition, the taxpayer has a continuity of investment by replacing the old property. All gain is still locked up in the exchanged property and so no gain or loss is "recognized" or claimed for income tax purposes.

Answer 4

There is no such thing as trading homes. You either buy a home or rent a home.

Why would someone allow you to live in a home, where they ae still on the mortgage and they are responsible for all the repairs?

Answer 5

If you have enough equity in your home it would be possible to take a smaller property for your equity, payments could be worked out between traders. Value of lot and location will have a lot to do with trade. Lots luck!

Answer 6

trade it in for what? lots of people right now are having trouble meeting their mortgage obligations. it means you probably shouldn't have qualified for a loan in the first place. it's not the best time to sell a home, and if your credit is bad because of this experience, you'll have trouble getting another mortgage loan.

it doesn't matter what you want/need. what matters is what you can afford to pay. you may have to go back to renting.

Answer 7

I've never heard of anyone doing that but if you are having a hard time paying your mortgage then now is the best time to call your mortagage co. and tell them and maybe they can work something out with you

Answer 8

Don't do anything you may be sorry for later.
Be absolutely sure that you get some Legal advice from a reputable Attorney because if you do anything on your own that you're not sure of, it may end up costing you a huge loss.
You may be happy with some good advice & suggestions so that you make a good decision for your concern.
Good luck!! to you.

Answer 9

You can't "trade" a mortgage loan. You'd need to sell the property to pay off the loan.

Answer 10

if you still need a house that big, chances are you're stuck with the house - it's probably gone down in value - can't tell what kind of equity you might have if any.