Once a property is fully foreclosed by a bank or lender and listed for sale, it is commonly referred to as a REO (Real Estate Owned) listing. Most bank owned properties are listed with local real estate agents. Good buys are available. They require research, preparation, patience & persistence. Buying a bank owned home isn’t easy and it’s not without risk. The list below should be useful if you decide to take advantage of today’s unique REO buying opportunities:

1. Choose a real estate agent who is familiar with REO practices to help you navigate the process, confirm property values, and negotiate terms. (My contact info is at the top of this page.)

2. Get pre-approved by a qualified lender. The banks have already been burned — why would they consider your offer without written lender approval or proof of funds?

3. It’s “buyer beware,” folks. Most bank owned homes are exempt from typical seller disclosures and are sold “as is.” Don’t expect banks to pay for repairs or upgrades, although it never hurts to ask. Lenders will allow you to get all the inspections you want, at your expense, and your agent can use the results for negotiating terms with the bank. If substantial work needs to be done, have a licensed contractor take a look before you write your offer or have your agent negotiate an inspection contingency.

4. Making an offer: Your agent should find out if there are any existing inspection reports on file, what work (if any) the bank will agree to, and if the bank requires a special purchase agreement form or other special requirements. (Many banks will only respond to offers written on their own forms; CountryWide requires buyers to be pre-approved by CountryWide, even if you’re going to use another lender.)

5. Pricing your offer: Most REO properties are priced to sell and will likely sell within 15% of the list price. I’ve seen better properties command a bidding war, selling for more than asking price. If you lowball your offer, don’t be surprised if the bank doesn’t respond at all.

6. Once you know what you want and can afford, be prepared to write several offers before you get one accepted. Asset management companies, the third party hired by lenders to liquidate foreclosed properties, are typically overwhelmed and routinely take longer than expected to respond. Unlike traditional sellers, lenders do not review files or consider offers on weekends and holidays.

7. Financing: For qualified buyer and investors, exploring financing options with the REO lender may produce a better-than-market interest rate, reduced down payment amount, or other financially favorable outcome. (You’ll still need a prequalification letter from any lender just to get to the bargaining table.)

8. REO sales are void of emotion for the seller. They make their own rules. Decisions don’t have to makes sense to anyone but the bank. If you (and your agent) understand this basic principle, you might just be a good candidate to buy a bank owned home.

Thanks to Michelle Brown of Financial Title for the original list.

While venture capitalists are pouring money into Silicon Valley green-tech companies, cities in other states are making bold moves to build green communities.

On May 4, 2007, a class EF5 tornado, nearly two miles wide, destroyed 95% of Greensburg, KS. Left with a blank slate and true the the nature of their self-sufficient image, the community made a committment to rebuild as a model 21st century “green” rural American town.

According to ABCNews.go.com, “Since just a few days after the tornado, the small farming town has made ambitious plans for rebuilding green, from a wind farm at the electric plant to green homes and businesses.” The plan calls for mixing urban amenities with a rural setting.

All city-owned buildings will be built to meet LEED Platinum standards and homeowners are being given big incentives to rebuild green. I hope that they will be utilizing tornado-resistent technologies, as well.

The non-profit group created to support Greensburg’s Green intitiative has launched a One Million $5 Donations Campaign to show that a million small things make for big change. You, too, can donate to help them out.

Besides you, the government, and insurance companies, others have come in to help.

In a prime example of integrative learning, architecture students at Kansas State University have designed eco-friendly and weather resistant cubes that help make the city sustainable.  These 10′x10′x10′ modular structures have different educational and functional aspects, like public showers and toilets using recycled rain water and recycling bins with an interactive learning system. KU students are also designing a fine arts center.

Maxon, a District Energy and Green Power developer, is developing the “Energy Master Plan” for the City Of Greensburg in close cooperation with the National Renewable Energy Laboratory and the EPA.

Thanks to Maxon Energy for the photo used above. Before and after satellite photos are also enlightening.

Compared to Greensburg’s committments, Santa Clara County’s change-out-your-lightbulbs campaign seems a bit feeble (although each person should be doing this, and other small steps, too!).

All this stuff we hear about living green. There are so many things that we can do that are easy. Here’s a behind-the-scenes tube about our stuff.

Why watch it? Well, from its extraction through sale, use and disposal, all the stuff in our lives affects communities at home and abroad, yet most of this is hidden from view. The Story of Stuff is a 20-minute, fast-paced, fact-filled look at the underside of our production and consumption patterns. The Story of Stuff exposes the connections between a huge number of environmental and social issues, and calls us together to create a more sustainable and just world.

It’ll teach you something, it’ll make you laugh, and it just may change the way you look at all the stuff in your life forever. (description from dotSUB.com)

So, you want to refinish the floors or that dresser (with potential!) you found at a garage sale. Forget the noxious odors and health risks associated with paint strippers.

aMAIZEing^TM Biobased Solvent & Stripper is a 100% bio-based solvent and stripper, derived from corn and soybeans. It and similar products made by SoyClean and  Molecular Tech Coatings Inc.’s EFS-2500 removes adhesives, paint from concrete, masonry, wood, metal and other surfaces.

aMAIZEing can also be used to remove graffiti from concrete if your place gets tagged on a regular basis. Or it could be time to move.