How do I switch homes/mortgages with a family member?

I have a small home at the shore with 29 yrs left on a $207,000 mortgage (est worth $280,000). My Aunt In-Law has a large home (est worth $300-500,000). She wants a small home at the shore - I want a large home. Seems like a match made in heaven but we are unsure of how to go about switching. Due to a recently failed business I have no saving, very bad credit, just enough income to pay my current mortgage, and have already been turned down for refinancing or the possibility of a new mortgage. I would guess since she has lived there all her life she owes little to nothing on her mortgage, and I know her income is basic. Her nest egg is the equity in her home. We thought about having her hold the note on her house with a ';rent to own'; deal but that still leaves our mortgage. A realtor said to sell out right to each other but without the ability for us to get a new mortgage we wouldn't be able to afford her home. She doesn't want to lose her equity either. Any advise?How do I switch homes/mortgages with a family member?
Why don't you just move into each others houses for a while. You can then save up a little of money and get your credit back on track. Then you can purchase each others houses. This may be a little bit a trial period and make sure both of you are happy with the ones homes.





If her home is worth $500K I dont think you will be able to afford that kind of payment so you may have to purchase it for $500K but take a mortgage out for $300k and have her put a lien on your new home for $200k for 5 years until you can start making more and refinance to pay her back.How do I switch homes/mortgages with a family member?
will your aunt carry the note on her place if she has a low note?