A new analysis by the Center for Neighborhood Technology (CNT) shows that only two in five American communities — or 39 percent — are affordable for typical households when their transportation costs are considered along with housing costs.

Have you ever considered purchasing a piece of clothing marked with an ”as-is” tag? Customarily those tags indicate some type of flaw in the garment, e.g., a broken zipper, stain, tear, etc.

Buying an “as-is” home does not necessarily mean there is a flaw or problem with the property. What it does mean is that the house is being sold in its current condition and the seller is stating upfront that he/she will not make any repairs to correct defects.

If you’re interested in buying an “as-is” home, it’s recommended that you hire a professional inspector to tour the property before signing any contract. If possible, accompany the inspector as he/she does the examination. An inspector should be able to identify any issues that might not be noticeable to the untrained eye.

Keep in mind that during this inspection phase, the house remains on the market. If another buyer comes along willing to take a chance on the home, you may lose your opportunity to buy.

To remove the risk of losing the house, you may want to have a post-contract inspection clause. Such a clause means that if the home inspection reveals problems that you as the buyer are not willing to take on,  you would then be able to get out of the contract without penalty.

An “as-is” home purchase can be a risky undertaking. If you take too long making a decision, someone else may come along and purchase the home. If you hastily sign a contract and don’t include a home inspection contingency, you may be left owning a home that requires thousands of dollars in repairs. To further protect your interests, you may wish to hire a real estate attorney.

TALK BACK: Have you ever purchased (or considered purchasing) a home as is? What was your experience like? Post your comments below.

Posted by Sharon Walker

Real estate sales are still booming in urban areas across Canada, as buyers get into the market before mortgage interest rates go up. With rates still hovering at near historic lows, it’s a great time to buy. However, it is also creating bidding wars for homes in neighbourhoods across the country, driving prices up and leaving would-be buyers angry and frustrated after they are unable to get the home they want.

Spring is here at last, and like many other homeowners you may be looking for simple do-it-yourself projects to spruce up your home or to increase its value.

FreeRateUpdate.com research shows 30-yr fixed mortgages are available today at 4.875 percent to well-qualified consumers paying a standard .07 to 1 point origination. Today’s rate is slightly higher (+0.125) than what’s been obtainable for most of March.

Harsh weather conditions held back home sales in February — leading to some renewed gloominess by Wall Street analysts.

Buying a home can be the single largest purchase of a lifetime. And in our society, celebrating that purchase is a common and happy occurrence.

Buying a home can be the single largest purchase of a lifetime. And in our society, celebrating that purchase is a common and happy occurrence.

In order to widen its outreach to underwater homeowners, Bank of America (BofA) announced last week that it will be broadening its loan modification program. The lender will offer an “earned principal forgiveness” of up to 30 percent.

The forgiveness would be offered in two stages for subprime and adjustable rate mortgages (ARMs).

First will be an offer of an interest-free forbearance of principal that the homeowner can turn into forgiven principal annually over five years, resulting in a maximum 30 percent decrease in the loan’s principal balance to as low as 100 loan-to-value ratio. Borrowers must remain current on their mortgage payments during those five years.

BofA will contact borrowers it feels meet the criteria of the program. To qualify, homeowners must prove that they have a hardship in making their present mortgage payment, be at least 60 days in arrears and owe a minimum of 120 percent of the loan balance.

President of Bank of America Home Loans Barbara Desoer said:

“In our experience with Home Affordable Modification Program (HAMP) and National Homeownership Retention Program modifications, Bank of America has found that many homeowners who owe considerably more on their mortgages than their homes are worth are reluctant to accept a solution that addresses only the amount of the payment without an accompanying reduction in the balance due on the loan.”

BofA is servicing more than 1 million HAMP-eligible mortgages that are 60 days or more delinquent, a number greater than any other lender active in the program. To date, it has facilitated more than 20,000 permanent modifications under HAMP, with more than 22,000 awaiting permanent status. Bof A reports it has another 240,550 active trial modifications.

Posted by Sharon Walker

McLean, VA — Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.99 percent with an average 0.6 point for the week ending March 25, 2010, up slightly from last week when it averaged 4.96 percent. Last year at this time, the 30-year FRM averaged 4.85 percent.