Thinking of updating? Go Green!

by Dan Krell
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If you are thinking of updating your home- think green. As we are increasingly becoming environmentally conscious, home buyers are as well. As the cost of energy continues to increase, home buyers are increasingly becoming aware of energy saving devices within homes, including Energy Star rated products and environmentally friendly materials.

Most of us are familiar with the Energy Star logo on appliances; however, Energy Star ratings or recommendations can also be found on windows, lighting fixtures/light bulbs, HVAC equipment, hot water heaters and insulation. Home improvement recommendations from Energy Star can save a home owner up to 31% in energy costs! Do you think that saving on energy costs would be a selling point to a potential homebuyer? You bet it would!

Energy Star (energystar.gov) is a jointly sponsored program through the United States Department of Energy and the United States Environmental Protection Agency. The program began in 1992 by voluntarily labeling energy efficient items. Although computers and monitors were the first items to be labeled, the Energy Star logo is now seen on household, office, and commercial items from fifty categories. On the website, Energy Star provides assessment tools for homeowners in determining the efficiency of their homes as well helping understand what needs improvement.

To make the home more appealing to home buyers, the first items that a home owner thinks of replacing are the kitchen appliances and the washer/dryer. Although high efficiency appliances typically cost more, Energy Star states that the money saved on energy costs will more than offset the cost of an energy star rated appliance. Because Energy Star rated appliances use up to 50% less energy than standard appliances, it is estimated that the equivalent of 1.7 million acres of trees would be planted if ten percent of American households use Energy Star rated appliances.

Additionally, if your furnace is more than ten years old, Energy Star recommends that a newer high efficiency furnace be installed. Recommended efficiency ratings by Energy Star are 90% Annual Fuel Utilization Efficiency (AFUE) for a gas furnace and a minimal Seasonal Energy Efficiency Ratio (SEER) of 13 for central air conditioning units. However, if your ductwork leaks it reduces the HVAC efficiency, so it is recommended that leaking duct work be sealed. Additionally, adding a programmable thermostat may save an additional $150 a year.

As your hot water heater uses about one third of a home’s energy costs, replacing it to a more efficient model can reduce the overall energy bill. Hot water heater efficiency is rated by Energy Factor (EF). Depending on the size of the hot water heater, the recommended EF can vary. Newer tankless models heat water as you need it and thereby can save you even more.

Other ways to make your home greener and energy efficient, besides using high efficiency and Energy Star rated appliances and systems, include: sealing air leaks around windows and in basements/attics; ensuring that your home is properly insulated in the walls, attic, and basement; and replacing light bulbs to energy efficient bulbs. Although not all appliances are Energy Star rated, the Department if Energy has a guide to making your home energy efficient at: www1.eere.energy.gov/consumer/tips/index.html.

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of February 11, 2008. Copyright © 2008 Dan Krell.

Foreclosure Assistance

by Dan Krell

It is common to experience financial problems at any given time in one’s life. There are many reasons people experience financial problems. If it isn’t being surprised by loss of employment, illness, or divorce it may be due to lack of financial planning. Whatever the reason, experiencing a financial crisis, including foreclosure, is an unsettling process for anyone.

A site that is becoming more frequent in any neighborhood is the home going through the foreclosure process. The owner may still be in the home or they may have vacated months earlier leaving an empty shell to deteriorate in the ensuing months.

At first, you may not notice anything different in the home, but as time progresses it hard to not notice. You may notice your neighbor withdrawing and evading anyone coming to the door. The house numbers may disappear in an attempt to confuse those trying to identify the home. The lawn may be neglected and become overgrown with grass and weeds. The home itself may noticeably fall in disrepair as well.

Many people facing foreclosure tend to be in denial and believe that nothing is wrong and go about their lives thinking that they will not lose their home. Denial is a common defense mechanism that serves to lessen the severity of emotional pain that one may endure. However, it is not useful when facing foreclosure. Denial is a slippery slope such that people may not confront the challenges they face, and in this case-lose their home.

If you are falling behind in your mortgage, you may want to consult a bankruptcy attorney. As foreclosure is a manifestation of a larger financial problem, reorganizing your debts may help save your home.

If you find that you can no longer afford your mortgage, selling your home may be an option; however, as home prices have dropped you will have to determine if this is practical. If you can prove that your home has lost value, a common tactic is to ask the lender for a short sale, which is essentially asking them to take less than what is owed.

If you do not pay your mortgage, the mortgage company will be trying to contact you; it is important to communicate with the mortgage company so as to determine if they can assist through such measures as forbearance. You may be able to renegotiate the terms of your loan, or even have your late payments forgiven in an attempt to remedy the situation.

If you continue to not pay, you will receive a notice of default through certified mail. After receiving the notice, you may have an opportunity to reinstate your loan by paying the past due amount including late fees.

At this point, if you do not take action, the mortgage company will initiate the foreclosure process. Once the foreclosure process starts, your options are limited; the time from the initiation of the process to the foreclosure sale can be quite fast.

The foreclosure process is not pleasant, and can impact those involved with long lasting financial and psychological scars. If you know that you may be facing a foreclosure, it is important to be proactive. If you need assistance, the Maryland Attorney General offers information to those in foreclosure on the web at: www.oag.state.md.us/Consumer/foreclose.htm.

This column is not intended to provide nor should it be relied upon for legal and financial advice.This article was originally published in the Montgomery County Sentinel the week of April 2, 2007. Copyright (c) 2007 Dan Krell.