Keep Tabs on Energy Bills This Fall

September 29, 2008

Keep Tabs on Energy Bills This Fall 

When the leaves start falling, you know that the heating bills are about to start rising. But keeping your home warm and cozy on chilly autumn nights doesn't have to break the bank.

The U.S. Department of Energy offers these simple tips and relatively inexpensive home improvements that will help ensure cold gusts stay out and your furnace doesn't have to work harder than it should.

1. Plug air leaks with caulking, sealing, or weather stripping. Save 10 percent ($190 per year) or more on energy bills. Focus on windows, doors, outlets or switch plates on exterior walls.

2. Properly maintain the heating system. Heating accounts for half the average family's energy bill (approximately $950 per year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost (about $75-100 for most service calls) will pay back in better performance all year long.

3. Install a programmable thermostat. Programming the thermostat from 72ºF to 65ºF for eight hours a day while no one is home, or everyone is tucked in bed, will cut the heating bill up to 10 percent ($90 per year), paying for a basic unit in less than a year.

4. Seal and insulate heating ducts. A system can lose up to 60 percent of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces.

5. Insulate, insulate, insulate. Adequate insulation in the attic, ceilings, exterior and basement walls, floors, and crawlspaces can save up to 30 percent on home energy bills ($630 per year). Focus on the attic. (Heat rises.) Most homes should have between R-30 and R-49 insulation in the attic. Learn more at www.eere.energy.gov/consumer. 

6. Close fireplace dampers when not in use. When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55ºF.

7. Let the sun shine in. Open curtains on south facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.

8. Stay out of hot water. Water heating accounts for 15 percent of household energy use. Reduce water heating costs by lowering the water heater’s thermostat setting. Each 10ºF reduction can save between 3-5 percent in energy costs. Also insulate the hot water heater and hot water pipes.

9. Install storm windows over single-pane windows or replace them with Energy Star qualified windows. Storm windows reduce heat loss by 25 to 50 percent, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy. Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can’t afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present.

10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30 percent ($600 per year) with Energy Star labeled products. Use compact fluorescent light bulbs (CFLs) in place of comparable incandescent bulbs. Find retailers at www.energystar.gov.

These and other improvements that impact the energy efficiency of a home can save home owners money in the short term and serve as a selling point to potential buyers later. Be sure to save receipts, documentation, and manufacturer’s information.

Not sure where to begin? Try the Department of Energy's online energy audit tool atwww.hes.lbl.gov. 

Source: U.S. Department of Energy

The Economic Bailout

I know you dint ask, but im sharing....forgive the spelling and slang.....


We are all worried about the state of our economy right now. 

With Housing prices plummeting, stocks dropping, banks closing, 

unemployment rising, 401k's dissappearing - we all should be!

Ya the economy is in the toilet, But on the upside it looks like our gov't is going to throw us taxpayers 

under the bus and end up saving the day.

 

Something had to give.

I think its totally necessary.

Buyers need to be able to buy and sellers need to be able to sell.

Folks need to be able to renegotiate their loans.

Loan officers need to be prosecuted.

Homeowners need to get real about what they can and can't afford.

And the economy needs to go back to a happy place.

Proposed $700 billion plan moves forward

Proposed $700 billion plan moves forward
A proposed rescue plan that was initially submitted by the U.S. Dept. of the Treasury last Friday and received numerous edits and additions throughout the week appears to have made significant progress today, with members of both parties announcing they have reached general agreement to move forward with a $700 billion federal rescue plan.

If the plan announced today is approved, it would allow the U.S. Dept. of the Treasury to purchase troubled residential and commercial mortgage-related assets, including mortgage-backed securities and loans – up to $700 billion, which would promote stability in the U.S. financial markets.

COMMENTARY:

.  Although the rescue plan is not yet finalized, lawmakers and the Treasury would appear to agree on provisions that would provide assistance to many homeowners facing foreclosure. Earlier this week, the National Association of REALTORS® announced the creation of a Presidential Advisory Group to address this critical issue. Five California REALTORS® (NAR) were appointed to the 20-person Presidential Advisory Group. Both C.A.R.’s and NAR’s Leadership Teams are in close contact with elected officials and other key leaders in Washington to ensure that interests of the real estate industry are represented.
^.  One of Congress’ primary goals as this proposal moves forward is to minimize the financial impact of this rescue on the U.S. taxpayers. The current proposal would allow the Treasury not only to sell the acquired mortgage assets at a later date, but also to acquire an equity stake in the companies that participate in the program. The stocks could be sold at a later date, which could enable Congress to recoup some – if not all – of the $700 billion.

(source: CAR)

How Much Is $700 Billion Anyway?

How Much Is $700 Billion Anyway? 

The proposed financial bailout package being considered by lawmakers will come at a cost of as much as $700 billion. 

To put it in perspective, using numbers from the U.S. Census, the $700 billion is equal to:

• About $2,300 per American
• About $6,000 per U.S. household
• About 85 percent of the New York State economy
• The combined economies of all U.S. states beginning with the letter "A": Alabama, Alaska, Arizona, and Arkansas; plus Oklahoma.

The tally for all the various rescue measures launched by U.S. authorities this year runs to about $1.8 trillion. The $1.8 trillion is equal to:

• About $6,000 per American
• About $15,500 per U.S. household

Source: Reuters News (09/21/2008)

GREEN TIP OF THE WEEK: RECYCLING NO-NOS

GREEN TIP OF THE WEEK: RECYCLING NO-NOS
Here are five things that, according to earth911.org, will contaminate or thwart paper mills' attempts to recycle paper and cardboard:

- Oil and water don't mix. That large pizza box with the oil imprint will become recycled paper with an oil stain.
- Did your napkin or paper towel blot up a water spill or nail polish remover? It could have been the latter, and, for this reason, napkins and paper towels are not recyclable.
- Plastic linings added to paper products; a perfect example is paper cups.
- Wet newspapers.
- Pressure-sensitive adhesives, such as sticky notes, postage stamps, and address labels.

Prices are rising faster than your income

Prices are rising faster than your income. Here are a few tips to help you control spending:Use coupons at the grocery store, but only on items you would buy anyway.

• Save on gas by planning your errands so you only need one trip.
• Buy in bulk and bring your lunch to work.
• Don't buy lottery tickets. The money is better spent on savings, paying down debt and food.
• Call your utilities providers and ensure you are paying their lowest rates. Get on their budget plans.

GREEN TIP OF THE WEEK: REMOVE LIGHT BULBS FROM THE VENDING MACHINES

GREEN TIP OF THE WEEK: REMOVE LIGHT BULBS FROM THE VENDING MACHINES
You can save approximately $100 annually simply by removing the light bulbs in your office vending machines.

Help Pass Senate Bill 1738—The PROTECT Our Children Act

Help Pass Senate Bill 1738—The PROTECT Our Children Act

Hundreds of thousands of children are victims of sexual abuse each year. Due to the sheer lack of resources, law enforcement is unable to follow up on the majority of leads they have.

The PROTECT Our Children Act will: 

• Authorize over $320 million over the next five years in desperately needed funding for law enforcement to investigate child exploitation.
• Mandate that child rescue be a top priority for law enforcement receiving federal funding.
• Allocate funds for high-tech computer software that can track down Internet predators.

Act Now!
Your U.S. senators will be voting on the bill soon, so it is crucial you contact them immediately.
Go to www.senate.gov to find contact information for the senators in your state. Search for your senator by name or state by clicking on the arrow from either dropdown menu. Contact information is provided here. To send an e-mail, click on "Web Form" below his or her name, and e-mail your letter to make a difference! 

Call Your Senators
If you choose to contact your senators by phone, be sure to tell them, "Vote yes on Senate Bill 1738—The PROTECT Our Children Act."

Write to Your Senators
If you choose to write a letter, fax, telegram or e-mail, you may use the following sample letter—and modify it how you see fit.

Dear Senator:

I know that you believe, like I do, that we must do everything possible to protect children from sexual predators. That is why I am asking for your help.

Last year alone, U.S. law enforcement identified over 300,000 criminals who were trafficking in movies and pictures of young children being raped and tortured. Experts say that one in every three of these criminals has local child victims. Child pornography trafficking over the Internet has given us a trail of evidence that leads straight to their doorsteps, but the vast majority of these children will never be rescued because investigators are overwhelmed, outnumbered and underfunded.

As your constituent, I urge you to do everything in your power to pass the PROTECT Our Children Act (S. 1738, Biden-Hatch). This bipartisan legislation passed the House 415-2, but it is now the victim of petty partisan politics.

Now that we know where these children are and how to protect them, there is no excuse for the Senate to fail to take action this session.

(Your name here)   

Instructions for How to Copy and Paste the Letter
To copy and paste the letter into your senator's web form at www.senate.gov, point your mouse arrow at the beginning of the text that you want to copy. Click your left mouse button and hold it down. While holding the left mouse button, drag your arrow to the end of the text that you want to copy. Release the button. The text should be highlighted. Place your mouse arrow over the highlighted text, click your right mouse button once and let go. A new menu should appear. Select Copy from the drop down menu. When you get to the message form field for your senator at www.senate.gov, point your arrow at the beginning of the message field that you want to copy your text to and right click with your mouse. Click Paste from this menu. Submit your form and help our children!

Source: http://www.oprah.com/article/oprahshow/20080911_tows_predators

GREEN TIP: DOWNLOAD MUSIC

Whenever you can, download your music, instead of purchasing a CD. If you want to recycle your CDs and DVDs, visit the Compact Disc Recycling Center of America at http://www.cdrecyclingcenter.com/ to find the nearest recycling center, or visit http://www.cdrecyclingforfree.com/.  The latter accepts your mailed CDs and DVDs; you pay the postage.

Housing slump means those who buy now could save on taxes

One silver lining in the current housing market is the ability of home buyers to not only purchase a more affordable home, but also ensure lower property tax payments. Under Proposition 13, a measure passed in 1978 that limits property tax increases, the sale price of a home is generally used to set the home’s base value and subsequent property tax assessment. Proposition 13 also ensures that annual assessments will not increase more than 2 percent each year.

Congress weighs reprieve for seller-funded gifts

SEE THE INMAN NEWS ARTICLE HERE...

http://www.inman.com/news/2008/09/10/congress-weighs-reprieve-seller-funded-gifts

Where Is Real Estate Selling The Fastest?

So Where Is Property Selling Fast?

Altos Research, which tracks real estate data all over the country, identified these ZIP codes in which homes for sale spent the fewest days on the market. 

In cases where communities of relatively fast-selling real estate were clustered, the best ZIP Code in the area was chosen.

Overall, expensive homes and big bargains are selling with general ease, says Ken Gold, director of the Center for Real Estate Education and Research at Ohio State University. Meanwhile, homes in middle-income neighborhoods are selling the slowest, he says. 

Here's the list of the Top 10 fastest-selling ZIPs: 

1. Sunnyvale, Calif. 94087: 66 days on market
2. Austin, Tex. 78749: 68 days on market
3. San Diego, Calif. 92131: 70 days on market
4. Plano, Tex. 75075: 75 days on market
5. Portland, Ore. 97202: 77 days on market
6. Houston, Tex. 77094: 77 days on market
7. Wakefield, Mass. 01880: 79 days on market
8. Seattle, Wash. 98117: 86 days on market
9. Littleton, Colo. 80130: 90 days on market
10. Atlanta, Ga. 30340: 91 days on market

Source: Business Week, Prashant Gopal (09/05/2008)

FACING FORECLOSURE? Here are your options...

    

 

FACING FORECLOSURE? Here are your options...

(This may be helpful to you, your family... or a friend)

We have shown homeowners how to not only stop foreclosure...
but how to save hundreds or even thousands of dollars by avoiding the mistakes that others have made.

Know your options so that you can make the right decisions!

Whether you have been facing financial difficulties for some time, or you are just in a recent slump because of job loss, injury or other set back, you must educate yourself. Facing foreclosure is an emotionally-charged event. Most owners in situations like yours have intense feelings of fear and anxiety. These confusing thoughts can lead you to emotional, instead of logical, actions and decisions. Making emotional decisions is NEVER a good idea when it comes to your home and your money.

Homeowners who focus solely on saving their home without considering their entire financial picture often end up in even deeper trouble because they fail to look at the short and long term affects of their emotionally charged decisions.

This is likely the first time you have ever faced foreclosure. Well, it’s not our first time and if you let us help you, then together we can help you make logical decisions that will not only stop your current foreclosure, but will also set you up for future financial success.

The Most Common Foreclosure Options
Following are the most common options for people facing foreclosure. Depending on your situation, all of these options may, or may not, be available to you. Everyone's individual situation is different. Call us and we can discuss your options.

1. Reinstate The Loan
2. Forbearance
3. Loan Modification/Renegotiation
4. Mortgage Refinancing
5. Short Sale with Lender Acceptance
6. Sale of the Property To an Investor
7. Deed-in-Lieu of Foreclosure
8. Bankruptcy Filing
9. Nothing

REINSTATE THE LOAN – The most obvious option is to pay the loan current. If foreclosure proceedings have already been filed then the amount needed to get the loan current will not only include back payments, but also late charges and possibly attorney fees. This is the quickest and the most efficient way of ending a foreclosure action.

FORBEARANCE – The lender stops or postpones legal action. Usually granted when you make satisfactory arrangements to bring the overdue mortgage payments current.

LOAN MODIFICATION /RENEGOTIATION – A loan modification seeks to avoid foreclosure by negotiating with the lender to modify the terms of the loan. Loan modifications may include adjusting the interest rate, extending the loan period, or adding the delinquent portion and fees back onto the principal of the loan to be repaid over time.

MORTGAGE REFINANCING – In most cases, once foreclosure has started, you have been through several months of late payments or no payments. These late payments have a devastating effect on your credit rating. In addition, the new mortgage company will easily find out about the current foreclosure action. This most often leads to a denial of the refinance loan application.

* If you are approved you can bet it will be at a VERY high interest rate with higher than normal closing costs etc. This option is normally only for those with excellent credit histories and who have only suffered a temporary setback. If you are seriously considering this option then call us. We have connections with the companies that are most likely to be able to help you. Remember that time is of the essence so don’t waste a lot of valuable time on this option. You could lose your home while waiting on loan approval.

SHORT SALE WITH LENDER APPROVAL - A Short Sale is when your lender will accept a price for your home that is less than what you owe on it. Most people will qualify for a short sale if there has been some kind of financial hardship such as: Job Loss or Loss of Income, Divorce, Medical Issues, Death in the Family, or even an Adjustment in Interest Rate (known as “Payment Shock“). Short Sales have many time sensitive deadlines and you want to give yourself the utmost advantage at this stage by contacting us as soon as possible. In Most cases, the foreclosure timeline starts the day you miss your first payment, or make a partial payment. From this point you only have 90-120 days to take major action to sell your home and prove to your lender that you are suffering a hardship. I will help you prepare a financial package to submit to your lender proving your financial hardship. Once an offer has been submitted, the acceptance of it relies on the lenders discretion. In most cases if a reasonable offer has been submitted, then it is in the lenders best interest to approve the short sale.

Always contact your Lender as soon as you think there might be a problem. You will need to check with your attorney and accountant to make sure that this is the right choice for you. Your Realtor cannot decide what choice you need to make.

SALE OF THE PROPERTY TO AN INVESTOR– If you have been unable to work with your lender, or find another suitable solution in a TIMELY MANNER, it is time to seriously consider selling to an investor. When time is of the essence and you want to avoid foreclosure you should consider selling your property to an investor who offers “a quick closing.” Typically, this will be for less than fair market value, but can be a benefit to you because it is a quick “as is” sale with no real estate commissions. By Law, a Realtor cannot represent an investor on a short sale purchase. “As is” means you would not have to spend any money doing repairs, or spend time putting the house in perfect condition. By selling your house “as is” to an investor, you get a quick sale - allowing you to instantly stop the foreclosure and salvage your credit.

DEED IN LIEU OF FORECLOSURE – is when you voluntary deed title to your property to the lender. You basically give the house back to the bank. The ordinary effect of the taking of a Deed in Lieu is to extinguish the lender's deed of trust and vest the lender with title subject to all other existing liens and encumbrances. In effect, the lender becomes the new owner. The lender is not required to accept the Deed in Lieu and can show his/her refusal by filing a Notice of Non Acceptance with the County Recorder.

BANKRUPTCY – Some homeowners act on their lawyer's advice and file bankruptcy thinking that all their problems are now solved. Bankruptcy does put a hold on everything, yes, but all it buys you is a little time. Sometimes the end result is the property going to auction anyway, and you now have a bankruptcy in addition to the foreclosure on your credit report. Everything depends on where you are at in the foreclosure timeline, and how willing your lender is to work with you.

NOTHING – You may find it odd that Nothing is listed as an option, however one of the most common options taken by homeowners is NOTHING. Don’t fall into the trap of thinking that everything will magically work itself out, because it will not.

You are likely confused by your options and fearful of making a bad decision, but by doing nothing you are making a decision. I would love to tell you that stopping a foreclosure is a simple process and that it requires no special skill or knowledge, but this simply is not the case.

I trust that the overview of foreclosure options will help you start down the path of informed decision making to protect yourself, your family, your home and your bank account! If you would like to discuss any of these options, call me, and I’ll gladly answer your questions.

Time Is Your Enemy!
If your house payments are more than a month or two behind, your lender has probably already started foreclosure proceedings. As time passes thousands of dollars in penalties and legal fees can be added to the balance you owe. And every single day extra interest is added!

 

 

''Making Real Estate Simple''

Barbara Wibe, REALTOR®
Barbarainc@gmail.com
***619-850-4174***

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

 

Not intended as a solicitation if your property is already listed for sale.

EIGHT REASONS TO BUY A HOME!

If you're like most first-time home buyers, you've probably listened to friends', family's and coworkers' advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. 

Here are eight good reasons why you should buy a home:

Pride of Ownership

Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Appreciation

Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its house price index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Mortgage Interest Deductions

Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.

Property Tax Deductions

IRS Publication 530 contains tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. In California, the passage of Proposition 13 in 1978 established the amount of assessed value after property changes hands and limited property tax increases to 2% per year or the rate of inflation, whichever is less.

            PROPOSITION 13

Property taxes in the state of California have been the subject of controversy for as long as the state has assessed taxes. Before Proposition 13 passed in 1978, property taxes could increase dramatically from year to year based on the assessed value of the home. During the seventies, the real estate market experienced dramatic growth and we all witnessed the rapid escalation in the value of our homes. Because assessors were required to keep assessed values current, property taxes were skyrocketing at a substantial rate. However, increases in the assessed value were not made every year thus resulting in a major tax jolt for homeowners every few years. Since the passage of Proposition 13, a couple of things have happened. The property tax rate was set at a 1% cap. This means that the amount in property taxes you have to pay can only be up to 1% of the assessed value of your home. The assessed value of homes cannot exceed the 1975-76 assessed value and can increase based on the Consumer Price Index (CPI) by no more than 2% per year. If a transfer of ownership takes place or improvements are made, the property will be subject to a reassessment at the current market value. The newly assessed value will then increase on a yearly basis not to exceed 2% per year. The decrease in property taxes as a gross percentage of the assessed value of homes has forced local agencies (cities, counties, and other special districts) to find other sources of funding. These local agencies were given more authority to levy local non-ad valorem property taxes as a result of the passage of Proposition 13; however, the “special taxes” must be approved by two-thirds of the voters. Proposition 13 was intended to protect taxpayers from unanticipated increases in property taxes, to provide effective tax relief, and to require voter approval of tax increases.

Capital Gain Exclusion

As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the "over-55" rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit--subject to limitation--free from taxation.

Preferential Tax Treatment

If you receive more profit than the allowable exclusion upon sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

Morgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500.

Equity Loans

Consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home's equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.