Easier Trade-Ins

If houses only could be sold like cars --with trade-ins made easy--the housing market would really boom. Last week Federal Housing Administration Chief Julian H. Zimmerman spelled out the details of a trade-in plan that is expected to become law this year, since it is in all three housing bills now before Congress.

Under the plan, a homeowner who wants to move or trade up can sell his house to a real estate broker or builder for an agreed price. The broker or builder can get an FHA-insured loan equal to this price if he puts an amount equal to 15% of the unpaid mortgage in escrow until a new buyer is found. If no buyer is found within 18 months, the 15% will be applied to reducing the mortgage. The plan thus frees the homeowner for a quick turnover of houses, frees the broker or builder of strain while he holds the house for a good sale.

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