Due to the collapse of subprime lending practices and "bad" loans that were automatically serviced by more reputable commercial banks, the US real estate market has suffered greatly. Our incumbent President Obama came into office with Congress having already introduced the “bailout” as a partial solution to saving major US companies and, by extension, industries. The housing market has suffered an astronomical amount of foreclosures during this economic crisis. As a result, distressed property purchases present options for homebuyers that they might not otherwise experience, if the market had held most appraised home values/prices. A buyer with $150,000 in cash has the ability to purchase a distressed property for well below market value, which in this type of market is much lower than it was 4 years ago, as long as the foreclosure amount owed by the "seller" is less than the market value. In other words, a buyer purchasing a distressed property would be wise to offer a contract price higher than the amount of the defaulted mortgage loan to cover the bank owner's investment in the property. So, my first recommendation would be to find a suitable property with these types of purchase characteristics: The value of the distressed property is greater than the foreclosed loan amount. Then, I would make an offer on the house to cover the amount of the defaulted bank loan to close the sale. If the distressed property purchase were to be made with prospective buyers with good credit, I would acquire a loan from a reputable, long-established commercial bank. A low-interest, fixed-rate loan product would be ideal. However, if the only option was a variable home loan, I would look for one with a fixed interest rate for at least five years and make sure that... mid-paper ......ves, etc.4 Use a portion of $150,000 to acquire additional “green” financing/incentives or partner with green home improvement programs/networks.5 Use the remaining $150,000 and surplus funds to make your home greener through energy efficiency, first by improving the bathrooms and the kitchen (for the rooms that add the highest resale value), then heating, plumbing and electrical systems. This plan provides for maximum personal enjoyment, adding green value that saves on energy costs and takes into account environmental friendliness (social responsibility) by using materials that will last (less in upgrades and repairs over time of home ownership). If the owner does not personally occupy the home, I would recommend listing the Green home for sale, offering long-term savings to any new buyer. However, if I worked this hard to go green, I would find myself ensconced in a once-distressed new home turned green.!