Legal way to swap condo units in the same building? (fees, financing)
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I just recently closed on a condo unit. Another owner in the same building is gearing up to sell their unit for just about the same price as what I bought mine for. Is there an easy and legal way to swap units and still keep my mortgage rate?
No. You bought the property, signed the mortgage for that specific property. You will have to sell your property, but his property, get a new mortgage, etc. etc. etc.
Easier and legal, yes. The financing will be somewhat difficult. As JKGourmet noted, it won't be a swap, it'll be a purchase and sale like any other. Given that you know the seller, go talk to them. If they're gearing up, they migth be able to avoid realtor fees, staging fees, etc, and you might get it for a good price. It'd be the same as buying any other condo while selling yours.
well the unit is owned by the original developer and he is swilling to swap for 10k cash. We are guessing my unit is worth 10k less. So in that scenario, I would be on the hook for closing costs of selling my unit to the developer and buying his unit? He would also be on the hook for the same? But we avoid realtor fees.. do I have that right?
The sell to eachother would work, but some downside to it: The County/State would get "Excise" or "Tax" stamps. Different parts of County have different costs. Factor in your specific areas cost.
You would also be taking on a new mortgage which may have terms not as good as present.... or... at worst... your condo may no longer qualify for you to get a traditional mortgage. For instance, if since you purchased your unit & now, one entity came to own over 10% of the units... that would be a problem for financing. If that didn't occur, and you're an owner occupant, you should be fine.
You would want your lender to confirm that the condo is considered "Warrantable" which is lender talk for fact that Fannie Mae/Freddie Mac would allow financing in that condo complex.
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