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Open House

Energy-Saving Tips; Avoiding Foreclosure; Allergy-Proofing the Home

Aired April 29, 2006 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

BETTY NGUYEN, CNN ANCHOR: And speaking of severe weather, take a look at this tape coming in to CNN from our affiliate out of Dallas, WFAA Television, this is an airport hangar in Gainesville, Texas. You see obviously it sustained a lot of damage from the storms that blew through overnight.
Maybe we can get another shot of some of the planes. I mean, it was just incredible to see these planes just tossed about. There's a tight shot of it. But there is more than just those three you see there. There's a whole handful of them on the tarmac just on top of each other. Just an indication of how strong the storms are when they roll through.

Let's get more on the storms and what kind of damage they did to Texas and where they're headed with CNN's Bonnie Schneider.

Bonnie, what's the latest on these storms?

BONNIE SCHNEIDER, CNN METEOROLOGIST: Well, right now, Betty, as we look in the Dallas area, what we can see in our radar picture is that the storms have pushed past the Dallas region. However, other parts of Texas unfortunately still affected by these powerful storms. A tornado watch continues for the afternoon and we have several tornado warnings north of Houston.

This watch, though, extends all the way into Louisiana. This is exactly what we had in the forecast yesterday. The same weather system that was working its way through West Texas and Central Texas, now it's working through East Texas and into Louisiana, especially here towards the Houston area, right in the corner there of southeast Texas. That's where we're really getting some very powerful storms.

As we zoom into the region, I'll show you, these are not only strong thunderstorms but they're producing hail and powerful wind -- Betty.

NGUYEN: All right, Bonnie. Of course, we'll have more on this at the top of the hour. Stay tuned to CNN.

GERRI WILLIS, HOST: It is spring time, otherwise known as the height of the allergy season. But your allergies might be about more than just flowers and trees. You may be surprised to know knocking out your outdoor allergies starts with the inside of your home.

Good morning, everyone. I'm Gerri Willis. Welcome to OPEN HOUSE. We're going show you step by step, exactly how to get rid of allergens and toxins in your home.

But first, it's not even May and already Americans are already paying through the roof at the pump. In many parts of the country, the average gallon of gas is over $3. And a month before Memorial Day weekend, the traditional start of the summer driving season, there appears to be no relief in sight.

(BEGIN VIDEOTAPE)

WILLIS (voice-over): Three dollars a gallon. Lots of drivers are seeing that and worse as gas prices have started to climb towards record levels, making the pain at the pump worse, oil companies are making record profits.

So where are your three bucks going? A dollar sixty-five is going crude oil. Oil prices have been climbing toward record levels because of instability in oil-producing countries like Iran, Venezuela and Nigeria. Fifty-six cents on average is going to the government through state and local taxes. Twelve cents goes to distribution and marketing. The further you live from refineries, the more you're going pay to get your gas. And 66 cents goes to refining and profits.

Right now oil companies are switching to summer gas formulas that are more expensive to produce and passing the costs on to you. And how about those profits? Exxon Mobil's latest profit was less than Wall Street expected, but the world's biggest oil company still earned over $8 billion in the first three months of the year. That's around $29 for every American or about 10 gallons of $3 gas.

(END VIDEOTAPE)

WILLIS: OK. So I know you're not going stop driving, but what can you do to save money at the pump? Here with some help is Bill Prindle, he is deputy director with the American Council for an Energy-Efficient Economy.

Bill, welcome.

BILL PRINDLE, AMER. COUN. ENERGY-EFFICIENT ECONOMY: Good morning.

WILLIS: All right. So this week the president comes out and he says pretty much what we need to do is conserve gas, stop driving so much. But, Bill, this is the start of the travel season. People are driving to see grandparents, kids, they're going on vacation. What is your advice to people who want to save some money on gas?

PRINDLE: Well, before you leave, tune up. Make sure your car is in top-running order. Make sure the air filter and oil filter are changed. And make sure the tires are inflated properly. And then once you leave, we advise people to drive smart. Stay close to the speed limit.

If we each would simply stay with the speed limits, we'd reduce our gasoline consumption by about 10 percent.

WILLIS: That's a big number, I have to tell you. You know, you can also empty your trunk. That's one thing people don't think about, they carry a lot of extra weight in their car and they spend a lot of gas doing it. But I want you to also talk here about hybrids. A lot of talk about hybrids out there, but a report this week shows Americans, they don't care. They're still buying as many six- and eight-cylinder cars, those are the big gas guzzlers, as they were in the past. What is it going take for Americans to decide, hey, I have got to drive a smarter car?

PRINDLE: Well, I think gas prices will probably go higher still at some point, but the good news is that there are better choices even for the non-hybrid car types. If we each, for example, just chose the most fuel-efficient car in the class that we're looking at, we could reduce the gasoline usage by about 20 percent just by doing that.

WILLIS: That's a very big difference. Let's do talk about hybrids for just a second. I know people out there have seen all the research that shows that the extra money you pay for a hybrid, it takes a long time to make that up. Do you still think the money is worth it and what can you tell us about the fact that, look, not all hybrids are created equal, right?

PRINDLE: Right. Hybrid technology can be used to increase acceleration and performance. And we're seeing that in some of the hybrids. And it can also be used to increase fuel economy. So you really need to look at the fuel economy rating for the car if that's your concern.

WILLIS: And what's a good number there?

PRINDLE: What's a good number for fuel economy?

WILLIS: Yes.

PRINDLE: Well, my Prius is rated at 55 miles to the gallon. I get 45 to 50.

WILLIS: Bill, you are green, green, green. That's great.

PRINDLE: Well, I think I'm pretty smart, too, because not only am I saving gasoline, but the federal government has instituted tax credits for hybrids.

WILLIS: Right.

PRINDLE: Yes. And so for this year and the next four years you'll be able to get some kind of a tax break for most hybrids.

WILLIS: As much as $3,100. It's not nothing. It's actually pretty attractive, of course. It remains to be seen how long those are going to be in place.

Let's talk about home for just a second because we talked about cars and driving this summer. A lot of people are going to be doing that, but the way people live in their homes right now, their homes are energy guzzlers. You've got the computer, the home PC. You're plugging in your cell phone, your laptop. What can people do to reduce their electricity usage this summer?

PRINDLE: Right. Well, we're approaching air-conditioning season. So that means you need to tune-up just like you tune-up your car. You need to tune-up your air-conditioning system. We advise people to bring in a professional. Make sure the unit is running properly. Make sure the air filters are cleaned or replaced. Make sure that the air ducts are not leaking. We found that 20 percent or more of the air that comes out of the air-conditioning unit often gets lost through duct leakage. So just sealing your ducts can save a huge amount.

WILLIS: Well, that's a great advice. You know, one thing I think people don't realize is that those flat-paneled screen TVs, those suck up a lot of energy.

PRINDLE: Yes. Some of the biggest ones can use more energy than a refrigerator. So that's a challenge. Unfortunately, we don't have any federal standards or even federal test procedures to know how much energy a TV uses. So that's an area where the federal government needs to do a little more work.

WILLIS: Right, that's right. And we appreciate you being with us today, Bill. Thank you so much.

PRINDLE: You're most welcome.

WILLIS: It's not just high gas prices that are putting a dent in commuters' budgets. High home prices in the suburbs closest to many big cities have many commuters moving even further away.

Bob Franken has the story.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Every morning at 5:00, five days a week, Ron and Maxine Thomas get on the train, crowded with the other bleary-eyed commuters, for the hour-and- a-half ride into Washington, D.C. Every day after work they take the train 66 miles back, not to the suburbs of Virginia or Maryland, but on to the next state, West Virginia, to a 5,300 square foot house these government workers couldn't possibly afford closer in.

RON THOMAS, GOVERNMENT WORKER: There were plenty of houses you could get, but not this house. You could get a three bedroom with maybe 2,000 square feet and it was still very expensive.

FRANKEN: They are part of a significant outward migration. Statistics show that more than 40 percent of the nation's fastest- growing counties are these suburbs of suburbs.

MAXINE THOMAS, COMMUTER: People leave the doors unlocked so it's certainly safer I think, than being closer in.

FRANKEN: They moved with their kids to Harpers Ferry West Virginia, where abolitionist John Brown fought and died.

(on camera): There's so much history here, behind me, Civil War battlefields. Just around the corner, General Stonewall Jackson had his headquarters. That was then. This is now.

(voice-over): Town houses and McMansions are sprouting up in place of the trees that were cleared for them. Within a few yards of the Appalachian Trail there are driveways. The once sparse population here in Jefferson County is up by 20,000 in the last decade, 15,000 more are expected in the next.

But the mayor of Harpers Ferry points out they defeat their purpose.

MAYOR JIM ADDY, HARPERS FERRY: Increased demand for housing causes prices to rise and also the demand for better services.

FRANKEN: That means higher taxes for a lifestyle that's physically taxing even for those who don't have to drive.

UNIDENTIFIED FEMALE: You have to stay up and run errands and do sports and whatever they need to do, so you're in bed by 10:30, 11:00, and then you're up at 3:00, it's exhausting.

FRANKEN: They used to call this a whistle stop. Now it's an exurb and this is not the end of the line. There are more even further out.

Bob Franken, CNN, Harpers Ferry, West Virginia.

(END VIDEOTAPE)

WILLIS: Now that's a commute. Coming up on OPEN HOUSE, allergy season is in full swing. Could it be your home, though, that's making you sick?

And up next, falling home prices have led to record foreclosures. We'll tell you what to do when you have more home than you can pay for.

But first your "Tip of the Day."

(BEGIN VIDEOTAPE)

WILLIS (voice-over): Planning a remodel project, know the prices of items like lighting fixtures, faucets and knobs, you can buy them on your own for less and have a contractor do the installation and no last-minute changes or additions. That will add to the total cost and put your project behind schedule.

Remember, most projects do go over budget, set aside 10 to 20 percent of the total cost for any unexpected expenses. And that's your "Tip of the Day."

(END VIDEOTAPE) (COMMERCIAL BREAK)

WILLIS: OK. Foreclosures are typically rare in a healthy market, but a study released this week by RealtyTrek shows a 70 percent increase in foreclosures from last year. That's a scary jump and it could mean trouble for the whole market.

But the ultimate goal is to protect your investment and keep your equity growing. I'm joined by Brian Montgomery, he is assistant secretary of housing at the Department of Housing and Urban Development.

Brian, welcome.

BRIAN MONTGOMERY, FED. HOUSING COMMISSIONER: Thank you for having me.

WILLIS: I think that foreclosure is like the nightmare dream of every homeowner. What would happen to me if the bank started foreclosing on me if I couldn't make the payments on my house? Tell us a little bit about the process. How quickly does it typically take for a bank to foreclose on a consumer?

MONTGOMERY: Well, a lender will obviously follow your payment history and let's say you are perhaps paying later than you were, you're still making your payments, but you're paying later or you miss a payment.

Certainly a bank will contact you at that point. But generally speaking, they won't to begin moving toward foreclosure until you're at least three or four payments behind.

WILLIS: So if I miss one payment I'm probably OK, but any more than two or three and then I'm really in trouble. Once the process starts, how quickly does it take until you're on the street?

MONTGOMERY: It certainly varies by state and it will certainly vary if you have an FHA home. For example, FHA requires at least a six-month period unless...

WILLIS: Tell our viewers what FHA is because they probably don't know.

MONTGOMERY: FHA is the Federal Housing Administration which we are there to provide private -- or to provide mortgage insurance, rather, for lower income, moderate income homebuyers to allow them to purchase a home generally at whatever the standard interest rate is at that point.

WILLIS: So are there more protections for people with FHA loans, is that what you're saying?

MONTGOMERY: Absolutely. Absolutely.

WILLIS: OK.

MONTGOMERY: We have one of the best loss mitigation programs around.

WILLIS: All right. Well, let's talk about the experience most people will have and what they can do to prevent even being in that situation. Brian, I think a lot of people out there, they have had mortgages that are adjustable-rate mortgages, interest-only mortgages, they're seeing their rates on their mortgages go up. That means their monthly payment may be through the roof.

If you're in that situation and you're falling behind, what's your next step?

MONTGOMERY: Well, you are absolutely right. In fact, to your point, we have seen reports of close to $2 trillion in adjustable rate and interest-only loans are going to reset through the end of this year and into 2007.

WILLIS: That's a lot. That's a lot. And it's a lot of pain for consumers too. So what step should they take?

MONTGOMERY: Well, if a family is facing the -- that likelihood of their payments going up, they should definitely call their lender. As a matter of fact, even when lenders start inquiring as to why you're late or why you've missed a payment, the worst thing you can do is not respond. Foreclosure is very expensive for lenders.

WILLIS: So don't avoid the phone calls. That is definitely tip number one.

MONTGOMERY: Absolutely.

WILLIS: You have to be proactive and call them.

MONTGOMERY: We -- one of the things -- you're absolutely right. We tell homeowners, certainly respond. You'd be amazed at how many lenders want to work with you, including restructuring your loan, to keep you into house, because foreclosure is expensive for a lender as well.

WILLIS: Well, now this is a very interesting point. When you say they're going to be flexible, but what does that mean as a practical matter? Do I get an extra two weeks, two months, two years? What do we do?

MONTGOMERY: It certainly depends on the lender. They have special forbearance. Perhaps you've had an illness in the family or a short-term loss of income that you're going to overcome in a few months. They may do a loan modification to restructure the loan. There are even certain things at FHA that we can do all leading up to hopefully not foreclosing on a home. That's the last thing that we want to do.

WILLIS: But, Brian, when you say loan modification, what do you mean? Are you going to stretch out the loan over the longer term and make my...

MONTGOMERY: Yes. WILLIS: ... payments lower. And is there any way that I can slowly step up those payments over time?

MONTGOMERY: Yes. There is an amount of different options that lenders can offer you. That's why it's critically important, Gerri, that people respond to lenders and don't ignore the phone calls and the letters in the mail.

WILLIS: All right, Brian. That was a lot of help. Thank you so much for being with us today.

MONTGOMERY: Thank you very much.

WILLIS: Coming up, allergies are enough to drive anybody crazy. They're driving me crazy, but don't let them drive you out of your house. How to allergy-proof your home, that's coming up next on OPEN HOUSE.

But first, your mortgage numbers.

(COMMERCIAL BREAK)

WILLIS: Spring is in full swing and for millions of Americans that means sneezing, sniffling and runny noses. Now if you have allergies like I do, the last place you might want to be is outdoors, but what's making you sick may be inside your house.

Donna Smallin is the author of "Cleaning Plain & Simple." She is here to show us how to rid your house of harmful allergens and toxins.

(BEGIN VIDEOTAPE)

WILLIS: So, Donna, let's start in the bedroom. Let's talk a little bit, though, first about the allergens that you find in the home. What are the most common ones?

DONNA SMALLIN, AUTHOR, "CLEANING PLAIN & SIMPLE": Well, of course, you have dust, we all have a lot of dust, and pet dander, if you've got pets, or human dander as well. And then...

WILLIS: Human dander, what's that?

SMALLIN: We're shedding skin all of the time.

WILLIS: So we can be allergic to ourselves.

SMALLIN: Well, it's possible. And then also the big one is dust mites.

WILLIS: Dust mites. Now I read somewhere that there are 2 million dust mites in the average bed. Can you believe that?

SMALLIN: That doesn't surprise me at all. Yes. And we don't think about that and really the simplest cure for it is to wash the linens on a regular basis in very, very hot water.

WILLIS: OK. Let's do some laundry.

So, Donna, we talked about the bedroom being a breeding ground for dust, but so is the living room.

SMALLIN: Oh, sure, throughout the whole house.

WILLIS: One of my big questions is always, it seems like I'm only moving the dust around. I'm not really getting rid of it. It's sort of flying up in the air.

SMALLIN: I use a microfiber cloth. I love these because it's an electrostatic.

WILLIS: It's wet.

SMALLIN: Yes, well, I wet it because if you dampen the cloth first and I wring it out, practically dry, really, then you won't be stirring up all of the dust into the air as you are dusting.

WILLIS: That's great.

SMALLIN: Everything just collects right on the cloth.

WILLIS: And you don't move that dust around. Because that's really bad for people who do have allergens.

SMALLIN: Sure. And you should wear a mask so you can protect yourself from inhaling the dust.

WILLIS: This is the pet allergen problem in my household. My husband is allergic to dogs. Is there anything we can do to reduce pet dander so that maybe he could live with one?

SMALLIN: You frequently bathe your dog, at least once a week, and do vacuuming three times a week, and also try to keep your animal off the furniture, if you can. If you can't, then you need to vacuum the furniture regularly as well.

WILLIS: So, Donna, some people react to toxins in household cleaners the same way they react to allergens.

SMALLIN: Yes. You can be allergic to cleaning supplies. I like our homemade solutions. There are lot of things you can find in the pantry like vinegar, baking soda, peroxide, that you can use in cleaning. And in the bathroom, one of my favorites is vinegar.

If you want to clean your toilets, this is the best way, pour about a cup in the toilet bowl and then let it sit overnight and in the morning all you have to do is brush and flush.

WILLIS: So you have a great natural idea, a natural solution really for cleaning a cutting board.

SMALLIN: Mm-hmm. Yes, you can use a mixture of hydrogen peroxide and vinegar. And what you do is first spray the surface with a mist of vinegar and then follow it with a mist of hydrogen peroxide. You let that sit just for a couple of minutes. Wipe it down with a paper towel. And what I like about that is you just throw the paper towel and the germs right away.

WILLIS: What about lemons?

SMALLIN: Lemons are great. They're a natural sanitizer and they smell good. So that's always nice in the kitchen.

Cut the lemon, and I sometimes use old lemons for this. Just throw them in the garbage disposal and let it run. It really smells nice and it cleans it out good.

WILLIS: Great advice, Donna, thank you.

SMALLIN: Oh, thank you, Gerri.

WILLIS: I'll be back in a few minutes with my final tip.

SCHNEIDER: Severe weather is tearing through Texas at this hour. We'll have that. We have new pictures coming in plus your complete forecast. That's all coming up next on CNN.

(COMMERCIAL BREAK)

WILLIS: Hurricane season is just a few weeks away and insurers are already hedging their bets. Some East Coast residents have been notified that their homeowner's policies won't be renewed. Now if you find yourself without coverage, don't panic, there is plenty of competition in the insurance industry. Some states have hundreds of insurers that you may not even know about. Make sure you check the Internet. You can get quotes from direct sellers and Web sites like insweb.com or insure.com. It can't hurt to see what the smaller guys are offering before you go to a larger insurer. And remember, you will still have to buy your flood insurance from the government. Check out floodsmart.gov for more information.

We want to hear from you. Send us your comments or questions to openhouse@cnn.com. And you will find more on today's guests and topics on our Web site, cnn.com/openhouse.

Thanks for watching OPEN HOUSE. We will see you here next week. The day's top stories are next on "CNN SATURDAY." Have a great weekend.

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