From: washed_phenom@hotmail.com (Washed Phenom)
Newsgroups: misc.invest.real-estate
Subject: "Trading" houses?
Date: 28 Oct 2004 14:00:51 -0700

Hello,

I currently have my house on the market, and a contigent offer has
been made at approximately 95% of the asking price (which is around
~250K).  My mortgage on the house was highly leveraged (zero down,
interest only), because I wanted to maintain some degree of mobility
over the next five years.  A change in my relationship status has
motivated the immediate sale of the house.

The facts in front of me are:

1.  I'm essentially paying high rent on a place that is now too large
for just me, and gaining no equity.

2.  The potential buyers' house is 2/3 the price of mine, and I could
easily qualify and afford a standard 30 year fixed-rate mortgage if I
bought it.

3.  Although it isn't ideal, I think I could reasonably live in their
house for at least two years, and maybe longer.

4.  Perhaps most importantly, their contingent offer is the only offer
I've received on my house in four months.  With the market supposedly
heading for a downturn, my chances of getting offers might actually
drop from this already dismal rate.

Question:  Is this a good scenario for a "trade"?  Buy their place for
the simple benefit of flipping the deal and knocking my debt load down
by 1/3 and getting out from under the ARM?

Comments welcome.

Wp