How an Energy Efficient Home Can Help You Avoid Foreclosure

Because buildings account for at least 38% of carbon dioxide emissions in a country, it is important to have them retrofitted. This way, property owners get to cut on utility bills which tend to pile up and even lead to foreclosure. As a bonus, energy efficient homes contribute to energy conservation, as well as the addressing of the important issues such as global climate change.

According to recent real estate analysis, homeowners with energy-efficient homes meeting set standards have exhibited significantly lower rates of delinquency and default (at least 11%) than other typical homeowners. This analysis was conducted while taking into account variables such as location and incomes, seeing as most new homes are built in sprawling locations where the high costs of transportation tend to contribute to higher rates of foreclosure. It is for this reason that industry experts suggest the implementation of financing tools which would enable homeowners to make affordable energy-efficient improvements to their homes.

One such program is the recently shut down American PACE - Property Assessed Clean Energy program, which was aimed at enabling homeowners to include the costs arising from energy efficient improvements such as furnaces and insulation in their property tax bills. This way, they would be able to pay off these costs over a period of ten to twenty years. While the Federal Housing Finance Agency felt that the PACE programs posed unusual and difficult risk management challenges for lenders, proponents feel that so long as the energy efficient improvements are done correctly, borrowers will end up becoming more financially stable and can therefore escape foreclosure.

An effective strategy for improving the energy efficiency of your home is by first targeting the walls, windows, doors and attic which serve as your home's "envelope". Next, focus on the energy efficiency of systems such as heating, lighting, cooling, as well as appliances. You may thereafter consider the implementation of clean energy generation solutions such as solar energy or even geothermal energy. Until programs such as PACE are implemented, homeowners may consider the following tips to make their homes more energy efficient, and thus avoid foreclosure.

• Properly insulate your walls and attic
• Upgrade or replace windows
• Plant shade trees and shrubs around your home
• Replace older furnaces with high-efficiency systems
• Improve the hot water system efficiency
• Replace incandescent light bulbs with compact fluorescent lamps
• Unplug unused refrigerators and appliances
• Take advantage of tax incentives for home improvement
• Undergo a home energy audit

Joan One is a freelance journalist and creative writer who immensely enjoys writing and researching into any topic under the Sun. She specializes in writing "green" eco-friendly topics aimed at enabling environmentally conscious readers to find simple ways to reduce their carbon footprint and help save our planet.