Cut Your Electric Bills with Solar Energy -- Is It For You?

Solar energy panels may warm your water, which can lower your water heating costs, or cut your overall cost of electricity.  Solar panels collect solar radiation from the sun and convert that energy to electricity. At first blush, the panels sound great, but look further--buying them outright would be a pretty big investment for most homeowners, and then there's the leasing option, which cuts upfront costs but has other features.

the City of Los Angeles is starting up its rebate program again tomorrow, which will cover about 30% of the total cost, down from the earlier 50% coverage.  Per a recent Los Angeles Times article, a 5-kilowatt system costs about $35,000--with a 30% rebate, the owner will recoup the cost in 13-15 years.

Leasing agreements account for about half of the California market, and California accounts for about half of the country solar installations.  The lowered rebates, however, have also caused upfront costs for leases to increase to $4000 and $5000, so it's not so attractive for many potential customers. To reduce that upfront cost, leasing companies would have to increase their leasing fees, which will have the total effect of a monthly increase in montly electric bills, not a decrease. Solar panel leasing companies have a less exciting outlook in some cases.

Over time more companies in the business in California selling more panels will eventually make costs lower--already the panels are less expensive than in 2010, but labor costs have not come down from 2010.

Another option are thin-film solar panels which generate half the electricity and cost abouty 10% more than the standard flat panels, but have the advantage of being lighter and being more flexible in shape.

For now, research the sources offering solar panels and program costs. Going Green is good for the environment, but it does have costs attached.

Rebates - City of Long Beach for solar water heat
                City of Los Angeles for solar panels
Southern California Edison also offers a program for its customers for home or business use.
For additional federal tax credits and additional savings, see the information at U.S. Department of Energy.

Saving Water is Saving Money, Also, Its Not Wasting Water

Since we're watching TV ads about honest talk about what goes on in the bathroom, this seemed like another good conversation to have. 

A typical household uses 185 to 300 gallons of water a day and the majority of it goes down the drain from the toilet and the shower. One person alone may use about 80-100 gallons per day.  The toilet can consume about 26% of total daily water usage. Updating your commodes will serve as a conservation effort while also lowering your water bill.

If your toilet flushes 3.5 gallons per flush, one person may use as much as 19.5 gallons per day. But if your toilet flushes 1.6 gallons, that usage may be reduced to 10 gallons per day. Today's toilets use less water, prevent staining and resist clogging better than the older toilets--which saves on plumber's visits--and they are easy to install (although I recommend using a plumber to do it).  Good replacements generally cost from $150 to $300.

Until recently, I was one of many households with pre-1992 appliances, but I have just completed a replacement of a 5 gallon-per-flush toilet with a 1.6 gpf, and a new reduced-flow water faucet, so I know I'll be saving water!  Many older homes have older fixtures which, if replaced, will save a lot of water and reduce water bills. The early 1.6 gpf models were problematic in the 1990s, but those made today are much improved, and are easily found at the large home supply stores, you know the ones.
Toilets made in the 1950's used, on average, seven gallons per flush. Compare that with one that only uses 1.6 gallons per flush and it's a big saving. Multiply by the times a toilet is flushed in a year and the number of toilets in your home and it will save a lot of water.  The chart shows how usage changes depending on type of commode.  (1 gallon = 3.785 liters.)

Handling the Stress of an Unaffordable Mortgage Payment

Whenever I research the latest foreclosure and distressed property statistics, the sheer number of Americans facing the stress of losing their homes amazes me. For the month of June per the MLS, 148 single family homes and condos sold as an REO or short sale property in Long Beach, out of a total of 316 sales for the month.

It is my goal to help as many homeowners I can either stay in their homes or relieve the burden of their mortgages. Knowing that there are so many that need my help is a driving force for me to continue doing what I do.

In fact, I just released another report that I’ve made available on my website today. It explains the CDPE designation and lists 10 options that homeowners can take advantage of to relieve the stress that comes with owing their mortgage lenders more money than they can afford to pay.

The report also draws a contrast between short sales and foreclosures. Unfortunately, there’s a growing trend of “strategic defaulters” who think it’s smart to let their home go into foreclosure. As any one who follows this blog knows, there is nothing strategic about foreclosure; it’s one of the most long-lasting, negative financial challenges you can go through. A short sale seller who can legitimately show a hardship will avoid the post-foreclosure consequences.  Just recently signed into law in California was SB 458 which took effect immediately and which "extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans," so that no first mortgages (signed into law earlier) and now no junior liens can be pursued later if the lender agreed to the short sale. This makes it even more worth it to examine the possibility of pursuing a short sale.
I’m excited about acting as a resource for more homeowners who have questions about what they should do. As always, if you know homeowners who may need my help, have them contact me immediately! Together, we can put them back on the path to financial stability.

Good News for Short Sale Sellers and Junior Mortgages (and How Jerry Brown Used to Look)

Finally, short sale sellers in California and the Long Beach/Los Angeles County area have more protection against deficieincy judgments.  Senate Bill 458 was signed into law on July 15th by Gov. Jerry Brown, effective immediately. This was previously turned down by former Governor Schwarzeneggar, but is now made part of the protections of SB 931 which was passed into law as of 1/1/2011.

This means that if you have a second loan on your principal residence and the holder of the junior lien agrees to a short sale, there is no "deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units", per the California Association of Realtors. Additionally, this law does not appy in situations of fraud or waste (deliberate damage), it applies to residences, and does not apply to corporate owners, LLCs, and a few other exceptions. Previously, the protection was against first mortgages only, but is now extended to the seconds and other junior mortgages.