Trading houses? Similar value but big difference in what's owed.

[Aloma Murray]

We are exploring some options currently and I wanted to put this out there to see if any of you have any insight.

We are interested in trading houses with someone who's house is probably similar in appraised value. She owes very little on her mortgage as she's lived there for 30 years.

Our house value according to Zillow (since we haven't had appraisals done yet): $620k built 2000, does not need any major work. We owe $349k

Her house value according to Zillow (since we haven't had appraisals done yet): $754k needs major work (we are ok with the work, it comes with the land we want as well and that has huge value to us) She owes around 60k (I think)

My question is more about how to go about the legal piece of this.

What are some options to make sure both parties are covered legally?

Are there any major reasons not to do this?