Fannie Mae and Freddie Mac as well as lenders who said they were going to put a moratorium on foreclosures through the end of the year holidays are apparently proceeding with foreclosure actions anyway.

Brad German, a spokesman for Freddie Mac, says the company is continuing to process the foreclosures so paperwork will be in place by Dec. 15—although home owners won’t receive final notices until after the first of the year.

“Foreclosure is scary as hell,” wrote a Business Week reader, who is going through the process. “They send strange men to your house after dark on Saturday night to hand-deliver copies of documents from a metal lockbox. Every day brings more certified mail. The mailman has to knock and wait for us to sign things—three different certified copies of everything, one to ‘occupant’ and one to my wife and me.”

Source: BusinessWeek.com, Christopher Palmeri (12/04/08)

Housing experts are growing increasingly alarmed that programs to bail out troubled home owners might have the unintended consequence of encouraging people to miss mortgage payments in order to qualify for easier loan terms.

Such initiatives typically require that borrowers be 60 to 90 days late on payments to get a mortgage reworked.

In an attempt to prevent abuses, lenders are scrutinizing home owners’ financial status–by poring over tax records, pay stubs, investment accounts, and bank statements–to determine if they really need a loan modification to avoid foreclosure.

Source: USA Today, Stephanie Armour (12/10/08)

The average U.S. household will pay $2,300 this year on residential energy costs, with heating accounting for almost 45 percent of that total, according to the Alliance to Save Energy, a nonprofit public policy group based in Washington, D.C.

Gas and electric costs are up from last year, the group says. Data from the U.S. Department of Energy’s Energy Information Administration shows that homes heated with natural gas will pay about $30 more compared to last winter, while those heating with electricity will pay about $80 more.

In Pennsylvania, for example, where about 55 percent of residents’ home energy bills are devoted to heating, costs for consumers using natural gas or electricity are projected to increase by about $90 and $125, respectively, compared with last winter’s.

To help consumers cut costs, the Alliance is sharing these tips:

• Turn down the thermostat. In America, lowering it by just 1 degree can reduce heating energy costs by up to 5 percent–between $35 and $70, depending on the fuel used to heat the home.
• Plug leaks. Gaps between windows and doors may be small, but they can collectively add up to big energy losses. Plugging these leaks with caulk or other materials is the first action home owners should take to combat high heating fuel costs. By sealing those leaks and installing proper insulation, especially in the attic and crawl spaces, American households can reduce home heating costs by up to $180-$340 per year, depending on the fuel used.
• Heat people and pets, not empty space. About 80 percent of space is usually not being used at any given time. Closing vents in unoccupied rooms and using small space heaters to heat occupied areas can save a significant amount of energy and money.
• Use a programmable thermostat. It costs about $100, but if used properly, it can save American households up to 10 percent on their home heating bills–up to $90-$170 a year.
• Set the hot water heater at 130 degrees. Use cold water when washing clothes to save more energy and reduce bills for water heating.
• Replace the four most used bulbs with compact fluorescent bulbs. American households can save about $135 over the lifetime of the bulbs.
• Look for the label. When choosing a new heating and cooling system, windows, or appliances, consumers should purchase models with the ENERGY STAR label.
• Save gas on the road. Vehicle fuel economy can be improved with a few simple measures: tuning the engine (4 percent), using the recommended grade of motor oil (1-2 percent), keeping tires properly inflated (up to 3 percent), curbing aggressive driving such as speeding and rapid acceleration and braking (10 percent on average, but possibly as much as 33 percent), and removing unnecessary weight from the trunk (2 percent per 100 pounds). Even better, carpool, take public transportation, ride a bike or walk to really rack up the savings.

To download fact sheets on 2008-09 heating costs for each of the states in the contiguous United States and for the nation as a whole, visit www.ase.org/statefacts. The fact sheets, which you can distribute to customers, alert consumers on how much their home heating bills are likely to rise or fall compared with last winter’s bills, based on fuel costs in their own states.

Source: Alliance to Save Energy