|How to swap|
What's the biggest misconception about permanent house trading?
Loans. Despite our extensive articles on how to swap, many users still believe that in order to trade both parties must own their current properties free and clear. The fact is that more then half of the completed trades did involve loans.
How it works? In short, each party signs a contract to purchase their new home with contingency on financing with the same day closing. Since each party is also selling their current residence any current loans will be paid off at closing from the sale proceeds.
Some of the old-timers still believe that trading is only possible with properties owned free and clear, while newbies think that sellers assume each others' debt when trading. Both of these statements couldn't be further from realty. More on this in our How to Swap section