Tips For Buying A Foreclosed Home

Homebuyers in the market for a deal on their dream home need two things: lots of patience and the stomach to do battle with investors. Any home that is in a decent area and priced right is facing keen competition in today's market.

Homebuyers in the market for a foreclosure need those qualities tenfold. Buying a foreclosure is a lengthy process, and, although most investors prefer pre-foreclosure sales and auctions, you will face your share of competition for bank-owned homes.

Let's take a look at some foreclosure-buying options and how to participate.

Buying a Foreclosure at Auction

Homes that are sold at auction, typically carried out at the county courthouse, are those that homeowners have lost because they failed to bring the mortgage current during the reinstatement period.

The lender's representative, known as the trustee, will be on hand to receive the money from the winning bidder, if there is one. The opening bid is typically equal to the loan balance, trustee's fees, accrued interest and other costs incurred by the lender during the foreclosure process.

Can you get a bargain at auction? That depends on how much the homeowner owed before defaulting on the loan. The opening bid must be met or the trustee purchases the property and it then becomes an REO, or "real estate owned" by the lender.

You may have seen foreclosure auction shows on TV. If so, you know it isn't the place for a novice to get a good deal. Most of the bidders are highly experienced flippers and investors offering up fierce competition.

You will also not be able to view the inside of the home or perform inspections. Plus, if you're the winning bidder, you may have to evict the current occupants. Depending on the state in which you live, eviction may be costly and time-consuming.

Finally, many foreclosures have additional liens against them, which you will take on if you purchase the property. Recorded liens are public information; you can search for them at the county clerk's office, the county recorder or the assessor's office. But not all liens are recorded.

One way to ensure you're protected is by purchasing an owner's title insurance policy.

Buying an REO

Purchasing a bank-owned property is much easier than buying a home at auction and much like a conventional purchase.

You'll need a loan preapproval letter from your lender, unless you're paying cash, and the services of a real estate agent.

Most REO properties are vacant and somewhat cleaned up. Although the bank won't supply you with property disclosures as sellers in a conventional transaction are required to, you will be allowed time for inspections.

Many experienced REO buyers perform extreme due diligence, such as checking the city planning office for permits that may be on file for any work the previous owner performed. Have anything that looks the slightest bit suspicious inspected, from the roof to the foundation.

Your buyer's agent should be able to assist you in learning as much as possible about the home's history. And, since real estate brokers are required to hold on to transaction files for a number of years (varying according to state), if the home sold in the past few years, your agent may be able to track down a past disclosure.

Banks typically don't pay for repairs to the property, so you'll need to take on that expense. Ultimately, although it may seem that you're getting a bargain-priced home, once all is said and done, it may be worth it to purchase another home in turnkey condition.

*** For all the real estate tools and the only Realtor you will ever need, visit TulsaHomeGuru.

How To Design A Kid-Friendly Backyard

One of the pleasures of having a home is the space that a backyard provides for activities with family and friends. A backyard can be a great place for kids to burn off energy, explore the outdoors, and simply relax.

When children are small, care should also be taken to ensure their safety. The following are things you can do to design a kid-friendly backyard that is both fun and safe.

Maximize Exercise Space

It's tough these days for children to get enough exercise, but an area dedicated to lawn makes a more kid-friendly backyard. Provide enough space to run around, play tag, or throw a ball. The shrubs around this activity area should be tough, thorn-free, and able to withstand occasional abuse from balls or kids running into the beds.

Plant Fruits and Vegetables

Getting kids to eat their fruits and vegetables can also be a challenge. Why not make eating colorful, nutritious food more interesting by letting children grow their own fruits and vegetables? Tomatoes, potatoes, carrots, raspberries, and blueberries are all easy to grow. When children see fruits and vegetables go from seed to plate, they are more likely to eat them.

Create Interesting Garden Spaces

Is there anyone who hasn't played hide-and-seek? Providing a lawn isn't the only way to ignite a child's sense of play and creativity. Gardens can be divided into "garden rooms." Think of the lawn as the living room of the backyard, but you can also create a cozy nook with a bench surrounded by shrubs. This kind of space might provide a great kid-friendly place to read a book or the perfect hiding place for that next game of hide-and-seek.

Provide Protective Fencing

Designing a kid-friendly backyard is also about safety. When young children are present, it's important to provide protective fencing that not only keeps them from wandering off, but also keeps strangers and stray pets from coming into the backyard.

Provide Guardrails on Decks and Site Walls

Generally, building codes call for guardrails on any raised surface, deck, or wall that is 30 inches above the ground or adjacent surface. Handrails are needed on any staircase with four or more steps. The openings on guardrails and handrails must be sized so that a 4-inch sphere cannot pass through in any direction. This is also true for fence pickets.

Don't Plant Poisonous Plants

Babies and toddlers are always putting things in their mouths. Leaves, bark, colorful flowers, and berries can all look very enticing to curious, young children. Before planting any plant in your backyard, do a little research. Look the plant up in a plant encyclopedia or online and see if it is poisonous. Some very common plants are poisonous: daffodils, daphne, foxgloves, and rhododendrons, just to name a few.

Don't Allow Unrestricted Access to Pools and Water Features

Babies and small children can drown in a surprisingly small amount of water. Therefore, it's important to supervise children around swimming pools, hot tubs, fountains, and water features. These water-based amenities can provide hours of enjoyment, but their location and access to them should be carefully planned to prevent accidental drowning. Provide locked doors or gates where appropriate to prevent small children from playing in water unsupervised.

Designing a kid-friendly backyard involves finding ways to inspire creativity and play within a safe environment. It's as easy as that. Now go outside and play!

*** For all the real estate tools and the only Realtor you will ever need, visit TulsaHomeGuru.

Is Your Garden Really Green? Creating an Eco-Friendly Landscape Design

You may have the greenest lawn on the block, but is your garden really "green," meaning ecologically friendly? Often the answer is a resounding "NO."

Just the fact that you have a lawn at all can be an indicator that your landscape is not as green as it could be. Lawns generally need more water and fertilizers than other plantings. Plus, they need to be mowed approximately once per week in the summertime, and if you don't have an electric or reel mower, you're burning fossil fuels every time you mow.

What are some ways you can create a garden that is really green? How can you create an eco-friendly landscape design?

Be Water-Wise

When it comes to an eco-friendly landscape, being water-wise means not only reducing the amount of water you use, but also managing stormwater - water that falls during a rainstorm, on site. Stormwater often gets directed to a pipe as soon as possible and then directed to a river, pond, or sewer. But, it is possible to capture it, store it, and redistribute it to be used again. For example, direct the downspout from your rain gutters to a rain barrel and then use the captured water to irrigate your landscape.

Reduce Impervious Surfaces

Another way to create an eco-friendly landscape design is to reduce the amount of impervious surfaces on your property. Impervious surfaces are areas like concrete, asphalt, and stone pavers where water cannot penetrate the surface. The water that used to soak into the soil has to go somewhere. When water can't infiltrate the soil surface, it causes problems downstream and has detrimental effects on rivers and streams. Pervious concrete and asphalt have come on the market and offer an alternative to impervious surfaces.

Use Drought-Tolerant Plants

This tip is related to being water-wise. If you want to create an eco-friendly landscape design, use drought tolerant plants.

Go Native

Native plants are well-adapted to live in the area in which you live. Plus, they typically will provide a food source or some sort of ecological input that supports local insect and animal species.

Build and Protect the Soil

In most suburban and urban areas, the soil is terribly depleted of minerals and nutrients. By amending the soil with organic fertilizers, cover crops, and compost, you can support an eco-friendly landscape design and help protect the soil structure. This creates a more nutrient-rich soil in which your plants can grow.

Grow Your Own Food

From farming methods to transporting food, we rely on fossil fuels to feed everyone in the United States. You can do your part to reduce the use of fossil fuels, reduce food miles, and provide nutrient-rich vegetables to your family by growing your own food. You can grow a surprising amount of food in a small space, and wouldn't it be nice if you could simply walk out your back door and harvest some lettuce for dinner?

Get to Know Beneficial Insects

Many gardeners mistakenly think all insects are bad. If they don't recognize a particular insect, they go get the sprayer and shoot the insect with a chemical pesticide until it dies. This is one of the worst things you can do. Why? There are many insects in the garden that help keep the "bad bugs" in check.

Have you ever noticed a rose bush covered in ladybugs? They're probably there because they're eating the aphids. If you look closely you'll see them. However, if you see the ladybugs, mistakenly think they are hurting your roses, and decide to kill them with pesticides, you're actually creating more work for yourself. The next time the aphids come, and they will, there will not be ladybugs there to defend your roses. You have just inherited the ladybugs' job. To create an eco-friendly landscape design, you must understand your ecosystem. That means getting to know the beneficial insects in your garden and learning how to support them in their work of defending your garden.

These are just a few of the many ways in which you can create an eco-friendly landscape design. The bottom line is that you must work with nature, not against it.

*** For all the real estate tools and the only Realtor you will ever need, visit TulsaHomeGuru.