Karen,

At this point it is not a common thing but there was one posted on this site on 9/25/08. Should things continue as they are, we would expect this arrangement to become more prevelent. We would not ever expect it to become a major means of real property exchange.

Good luck,
The Eckler team"

Even though it's a "trade", it still an actual sell on both sides. Both sides sell their homes to each other & get new mortgages. An example is when your'e waiting on your home to sell to remove a contingency on your contract to buy. A builder may buy your home to "trade" his large mortgage for your smaller mortgage. It definately works if both sides are willing to give equally.

Homes sellers have to consider many things in this market. But buyer beware. Make sure you use and attorney or Realtor to assit you with the details.
Some banks are not allowing buyers to assume the sellers mortgatge. They make them buyer refinance and then the buyer is out of luck.
Protect yourself.