Even with the slumping economy and falling home values, the actual cost of buying a home still seems steep–especially with celebrities’ homes!  I’ve heard of a few that slashed the selling price by 60%, and the new price was still $3,000,000.  Now that’s obviously not the norm, but some homes may have this same theme—they’re out of your range even with lowered prices.  With this in mind, buying a foreclosed home is absolutely a good idea.  But you have to walk in knowing what you’re doing and what to expect.

A foreclosed home presents a great opportunity.  The previous owner was unfortunately unable to keep up on the mortgage, leaving it available for you at a considerably lower cost.  You have three different windows of time to attempt to purchase a foreclosed home, and depending on your level of homeownership experience and any advisors you have available to help you, one option will work better than the other two for you.

Pre-Foreclosure

Pre-foreclosure may offer the best chance for the greatest price discount, but it’s also the toughest time to get your offer noticed and accepted.  In this case, you would be dealing directly with the current owner, attempting to help them ease through the foreclosure process with a buyer on board and hang onto the equity that has been built into the home.

The problem is that the owner is experiencing a rough financial and emotional time—it’s unlikely they’ll want to talk to yet another person that wants to take their home away from them.  They may be desperately searching for a way to keep the home, or simply too angry and frustrated to be bothered by you.

If you do manage to get an offer in, know that you’ll be competing with experienced investors that typically buy foreclosed homes in order to fix them up and resell them for a profit.  If you’ve done all your research and have the right help, don’t be afraid to hop in.  If you’re buying your first home or are even a little unsure of your negotiating skills, you should stay away from this period.

Auction

Inexperienced homeowners may also want to avoid auction.  The main issue here is that you’re taking a big risk.  You need to make sure you are aware of the home’s true value, and that can be tough—you’re not allowed to inspect the home before you buy it.  You must pay the full price in cash, and you accept the home in as-is condition along with any judgments or liens currently held on it.

Again, if your research determines that you can get the best price on a particular home during auction, you’re encouraged to do so.  If you’re not already fully experienced with foreclosures, make sure you consult with an agent who can guide you through the process.

After Foreclosure

This can be the best option for first-time homebuyers; the process is the most similar to buying a regular home.  The price will still be discounted, and you may even have some wiggle room for negotiation yet since the bank is the new owner and it is hoping to sell the home as quickly as possible.  You can mortgage the house now through the bank, and all of those nasty liens and judgments have been removed.  Be aware of the need for some home repairs, though.  Generally, if the previous homeowners were unable to meet their monthly payments, chances are high that necessary repairs were neglected due to financial reasons.

On a final note, be sure to dig deep to find the right foreclosed home.  If you’re a first-time homebuyer scared away from pre-foreclosure and auction purchases, you may want to search for hidden foreclosures.  A perfect example is a new home that was in the process of being built (not necessarily by the home’s intended owner), may or may not have been fully completed before the loan money was spent, and there weren’t any buyers.  These may not be listed as foreclosures, but they can be found and purchased at discounted prices just to get them off the market.

Nobody enjoys being in debt, but in everyday life, it’s unavoidable.  We need houses and cars, and sometimes we have no choice but to use our credit cards in emergencies.  It can seem as though you’ll never get out, but it really is possible to become debt-free.  The starting question is which debt to pay off first.

The easiest way to pay off debt is to take small steps.  Unless your debt has reached the point where you’re in immediate danger of losing things like your home and your credit is taking serious hits with each passing day, you don’t need a debt consolidation or elimination service.  The average person can successfully become debt-free on their own—and why pay someone to do something you can do yourself?

Take a look at your bills.  Pick out the one with the lowest balance and the one with the highest interest rate.  From here, it’s your choice where to start.  If you pay off the smallest debt first, you can then easily take the same payment and simply roll it into your payment for the next smallest.  This is called the “snowball method” and while it may be a slow process, it is definitely effective.

If the one with the highest interest rate will cancel out your attempts to pay off the smallest balance first, you may want to pay this one off first instead.  Otherwise, interest might accrue at such a rate that you’ll be left with the exact same amount of debt even by time the smallest one is gone.  If you focus your efforts here, then you can safely move onto the smallest debt, or even the one with the next highest interest rate.

No matter which place you decide to begin, you’re going to need a plan of attack, and you must stick to it.  Even if you do choose a debt counseling service to help you, this process is going to take time.  The sooner you begin, the sooner you can be out of debt.

A word of caution: Do not trust a service that asks you to pay them upfront, proposes that they can eliminate your debt within a too-short period of time (such as only one or two months), insists that they set you up with a new social security number, or makes other questionable promises.  A legitimate service cannot legally do anything more than you can do on your own.  Do not be ashamed if you do need the advice or helping hand; just be sure that you are not in danger of being scammed.  You’ll be worse off than when you started.

We all know that it’s important to protect our environment, but sometimes it might seem like a chore, not to mention expensive.  These tips will prove to you that there are inexpensive ways to go green.  You may have to shell out in the beginning, but the cost saved over time can be significant, and therefore, worth the investment.

• Here’s an obvious one.  Recycle!  Nowadays, most cities and towns offer recycling service.  (If not, don’t be afraid to take action and get one started.)  It won’t take any extra time to toss that plastic bottle into a separate bin next to the garbage can.
• Put your car on hiatus and walk, bike, or even rollerblade to work.  You’ll save money on gas, significantly reduce emissions (because you won’t be emitting any!), and get a great workout!
• Maybe you’re like me; you’d love to walk or bike to work, but your commute is just too darn far.  You’d have to start an hour ago to get there by tomorrow morning.  Don’t forget about carpooling.  Many of us did it as kids as someone else’s mom picked us up for school; you can carpool to work, too.  Perhaps someone in your office lives near you.  Offer to drive together and split the cost of gas.  You can also search online—your area may offer a ride-share program.
• This one is really simple, and it will actually save you money: unplug your appliances, computers, etc. after using them.  Believe it or not, simple household items like your toaster still draw electricity just by being plugged in.  So take that extra two seconds to pull the plug so you’re not paying for unused voltage.
• Invest in fluorescent or other energy-saving light bulbs.  They may cost more initially, but they last significantly longer, saving you money in the long run and reducing the amount of wasted electricity.
• Turn down the heat in the winter and turn up the temperature in the summer—or don’t use your air conditioner at all if the weather is bearable enough.  Even a few degrees can make a difference in your energy usage and the cost of your bill.  Open the windows and turn on the fans in summer, and pull out the comfy blankets and sweaters in winter.
• Insulate your water heater and pipes.  They’ll lose less heat, and that means they won’t have to work as hard (read: use as much energy) to stay hot.
• Wash your clothes in cold water.  It will save energy since the water doesn’t need to be heated, and you’ll still be able to take a hot shower at the same time!  And you don’t have to worry about your clothes not getting a clean.  While I personally still use regular laundry detergent with no problems, some brands make detergent designed specifically to work well in cold water.
• Shop for groceries at your local farmer’s market instead of the local supermarket.  Not only will your produce be fresh (and tastier), they didn’t waste any fuel or cause any emissions through being transported from another part of the state or country.
• Get all your business done online.  Pay your bills on the respective company’s website, or even through your bank’s website, and request electronic statements instead of paper ones.

This is just the beginning.  Take some time to consider your daily routine—what else can you modify to go green and save money?