Hi Virgillyke,

Banks are not like car dealerships and do not take trade ins. There is a program where you can exchange homes in a like for like manner (single family home for single family home) but that usually involves investors trading houses with like values for each other. It has to do with depreciation and tax implications. Unfortunately if you desire to buy that house in Phoenix you need to sell your home first then put the offer on the home here. Banks will not accept offers on foreclosed homes with a contingency to sell an existing home, too risky for the bank.

Hope this information is helpful! Let me know if I can do anything else for you.

The first thing you need to know is that it is extremely hard to do, between 2 regular sales that is. If the other property is a short sale or foreclosure it is impossible. Banks are not in the real estate business and they want to get rid of the properties, not acquire new ones.

Even between 2 regular sales you will need to find a "prospect" who wants your house (locations, size, design, layout, etc...) and so it happens to precisely own the kind of house you want. You will also have to agree to all the other terms. It happens, but the chances are fairly low.

Carlos J. Ramirez, PC, ABR, CNE
Associate Broker, HomeSmart -
http://www.SmartAZRealty.com

Great Idea.....It will just never happen. Never say never, However......NEVER.

Banks are not interested in anyway of trading homes, only selling them.
You would have a very difficult time placing an offer on the 395K home contingent on you selling the 170K home, and getting it accepted

Now if it were not a bank owned home, and Owner vs. Owner, you would have a chance.

Not feasible.
Wish I a had better news for you, just think of all the free time you will have not remodeling a home.

Good Luck
Patrick