Real Estate, The Economy, and News: Sepulveda Escrow

Showing posts with label Sepulveda Escrow. Show all posts

Thursday, March 24, 2016

BEWARE - You and Your Clients Are a Target For This Real Estate Scam

Cyber-criminals are finding new methods every day to steal personal and financial information. Their techniques range from phishing scams to buffer overflow techniques and brute-force password hacking. Banking institutions have found themselves under attack far more than usual in recent years, and have in turn begun to incorporate stronger security measures in an attempt to block hackers. As a result, many scammers/hackers have moved on to what they believe are "easier targets." focusing on normal people rather than financial institutions, Just last week, the Federal Trade Commission and the National Association of Realtors issued a warning to consumers that they must be hyper-vigilant in order to avoid recent phishing schemes that have been targeting closing costs on real estate transactions.

The National Association of Realtors, along with the Federal Trade Commission, issued their statement warning people to be on the look-out for a specific scheme targeting those involved in a real estate transaction. First, the hackers gain access to the email account of a customer, real estate agent, or escrow officer, and use the information to keep up-to-date on the transaction and determine the closing date. When they have figured out the closing date, the scammer sends an email that has been masked in such a way that they are able to impersonate the escrow company, title company, or real estate agent, telling the customer that the wiring instructions had a last-minute change. If the customer takes the bait, they send their funds to the scammer's account, which can be emptied in minutes.

Sepulveda Escrow utilizes encrypted and secure email when sending documents with sensitive and confidential information. In addition, documents can be returned via email through this secure portal. Sepulveda Escrow has also instituted new procedures to contact Clients directly to confirm details, rather than relying on email or contact through a third party. (Please see end of this blog for some helpful tips.)

It is imperative to know that cyber criminals don't always need to be able to break through firewalls or use high-tech software to get your personal information or access your computer's data. Quite often, hackers use more subtle tricks to gain access. Phishing schemes are one of the most common ways by which they trick potential targets. One example of phishing is when a hacker sends a mass email to a group of people, and makes it look like the email comes from a bank or other online payment platform. The email requests that the recipient verify their login information by following a link. The link leads to a page that closely resembles the actual login page for the financial institution, but when the user inputs their login information, the hacker records the username and password, thereby enabling them to access the account and steal their money.

Another example of phishing is when a hacker contacts a target or a group of targets under the guise of an Official informing them that they have been the victim of a scam. They then tell the recipient that they can help them fix the damage, but first ask for certain sensitive information like Social Security number or bank information, to "verify" what data had been "stolen." While you may look at this and think that the scheme is too obvious to be effective, statistics show that approximately 0.4% of recipients fall prey to such attacks. In other words, if a mass email is sent to 10,000 people, about 40 of them will have their information successfully stolen.

While phishing is historically the easiest and most effective method by which hackers are able to steal personal or financial information, there are several other methods. A buffer overflow attack, used by more sophisticated hackers, involves inputting many lines of code into an online form in order to overload the system and allow the hacker to steal data inputted by previous customers. A brute-force password hack involves a computer program that inputs all kinds of combinations of letters, numbers, and symbols, until the correct password has been found and the hacker has gained access to an email or other kind of online account.

Finally, hackers often package viruses or worms into free online software or as attachments to mass emails. Such viruses can enable the hacker to record keystrokes, thus giving them access to many of your passwords, or enable them to access built-in microphones or webcams on laptops. Simply opening such an email or downloading an infected attachment can lead to a virus being installed on your computer or mobile device. Fortunately, anti-virus software can often help to detect and remove these viruses, but hackers are constantly finding new ways to avoid detection by your anti-virus program. The best way to avoid getting such viruses is to be careful when downloading anything, and to avoid opening any emails that seem suspicious or come from unknown or unreliable sources.

Here are some tips to help you avoid being affected by similar scams. First and foremost, if something doesn't look right or feels even a little bit suspicious, don't hesitate to double-check it. Don't rely too much on emails. Instead, pick up the phone and call your escrow officer or realtor to make sure that everything you have received is correct. Don't open email attachments you aren't expecting. Additionally, you shouldn't trust financial information that has been sent via email, nor should you send any of your own financial information via email, because it usually isn't secure. In general, wiring instructions are sent by fax or encrypted email message. When inputting personal information on a website, check the address for "https," of which the "s" stands for secure, meaning that your information will be better protected.

Be very careful when opening attachments or downloading anything from an email, no matter who sent it to you. Just because you recognize the email address, doesn't mean that the message actually came from the person you associate with that email address. It's possible that a scammer could have hacked a friend's email, or could have disguised their email to appear as if the message came from a friend's email address. Proceed with caution. Being aware and cautious can save you a lot of hassle in the long run.

Biggest Tip: Following up on the phone after sending an email may seem burdensome, but we at Sepulveda Escrow find that it is always worthwhile to go the extra mile to avoid financial losses and potential lawsuits.

***************************************************************************************************
Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

***************************************************************************************************

Tuesday, May 19, 2015

Downtown Properties Undergoing Revitalization

8/29/14 - Over the last several years, many of downtown Los Angeles' old buildings have been revitalized by investors looking to breathe some life back into the surrounding community, to produce better job opportunities as well as new shops, apartments, and restaurants. One of the largest of such projects to be undertaken involves the former May Co. department store on Broadway, more well known as the “Broadway Trade Center.” A recent article by Roger Vincent of the L.A. Times discusses the implications that this renovation may have on continued development of the downtown area.

Seemingly following the same approach used on New York's Chelsea Market, these investors are looking to bring the old, run-down building back to its former glory. The renovation of such a large building could provide space for new apartments, office buildings, shops, and markets, all of which could be put to good use in the populous downtown area.

With over 1 million square feet of space to fill, Waterbridge Capital and real estate developer Jack Jangana, who acquired the six-story building for about $130 million, are looking for tenants in the realm of technology. While they may also want to devote the first few floors to retail uses, such as restaurants and stores, the rental of upstairs space to a major technology company could draw in “creative” jobs historically present mainly in the Santa Monica and Hollywood areas.

Such introduction of creative and technology-based companies could lead to the addition of new, well-paying jobs to an area currently being filled with new homes and restaurants. According to Vincent, even the addition of technology companies to the Broadway Trade Center may not be enough to fill its enormous potential. Such other possibilities include a grocery store, roof garden, or post office, among a plethora of other ways to fill retail space in the massive building. While it may take as long as 24 months for planned renovations to be completed, this project by New York investors holds great potential to benefit downtown Los Angeles and the surrounding community.

***************************************************************************************************

Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

***************************************************************************************************

Rush Hour: A Thing of the Past?

8/4/14 - Don't you hate sitting in rush hour traffic on the 405 and 101 freeways, spending hours a week staring at brake lights and bumpers? Wouldn't life be so much easier if there were a bus or train able to bypass all of that congestion? Up until recently, the San Fernando Valley was a “no fly zone” when it came to light rails, a form of public transportation designed in a such a way that, since it has its own system of rails, it doesn't have to deal with the gridlock on surrounding freeways. An article by Laura Nelson of the L.A. Times discusses Governor Jerry Brown's reversal of a bill that, since the early 1990s, has prevented the development of a light rail in the San Fernando Valley.

Although Brown's signature has overturned the so-called “Robbins Bill,” Nelson states that this is only the first step on a long road to the development of a Valley light rail. The Valley, which contains only two of Los Angeles' 80 commuter rail stations, needs something more than buses to lessen traffic and convince drivers to choose more environmentally-friendly transportation options. According to this article, officials are looking into the costs and level of difficulty that would be present in attempting to connect the Valley's already existing Orange Line bus system, which is very similar to a “light rail” with the Red Line and Gold Line of other areas.

The possibility of a light rail, while exciting, is also not likely to bear fruit for quite a while. For such an immense project to be undertaken, according to Nelson, over half of Metro's directors would need to agree to the request for a light rail. While the Orange Line was a clever way to get around the restrictions against light rails, its use of a separate road and avoidance of traffic congestion has attracted so many new customers that it is seen by many as “overcrowded and inefficient.”

A light rail, while beneficial to its users, could also have a dramatic impact on drivers of the 405 and 101 freeways. With a high speed, zero congestion transportation option available, many commuters may choose public transportation, thus reducing gridlock on the freeways. The light rail, now a possibility, may still take years to approve, and years more to develop. Thus, the best option at present, especially for those living in the San Fernando Valley, seems to be such transportation options as the Orange Line, which is about as close as we will get to a light rail at the moment.

***************************************************************************************************

Sale Price vs. Mortgage Rate: Which Would You Prefer?

7/31/14 - Which is worth more: a lower price on a home, or lower monthly mortgage payments? An article by Kenneth Harney of L.A. Times takes a shot at answering this question. What with slowing sales, price erosion, and rising of mortgage rates, realtors and home sellers are looking for better and newer ways to stimulate the housing market.

A relatively new topic for home resale, it appears that a strategy called “interest rate buy-down” has become more prevalent in the housing market of recent years. This method, as described in detail by Harney, involves the seller making a cash payment to the buyer's lender in order to lower the buyer's interest rate and thus reduce the size of monthly mortgage payments. In this way, both sides win.

Since the buy-down lowers the monthly payments, the buyer is able to afford a higher sale price on their dream home. Since the buyer pays more than they would have previously paid, the seller has the capital necessary to pay off the lender. The more a seller buys off, the lower the monthly payments are and the higher the sale price a buyer can afford. An extra positive for the seller: the money they pay for the interest rate buy-down is a deductible expense under IRS rules!

While buy-downs may be the way of the future for some, other buyers prefer a lower sales price than lower mortgage rates. Furthermore, according to Harney, a buy-down of half a percent of the mortgage price could cost the seller two percent or more, thus lowering net income and making the scenario less than ideal.

Basically, although an interest rate buy-down isn't the best choice for all sellers and buyers, it certainly should be available for those who want it. While a mortgage buy-down may mean a higher sale price, the lower interest rates and monthly payments can definitely make the trade-off worthwhile. That being said, if interest rate buy-downs sound interesting to you, look into it and talk to your local loan officer to find out more!

***************************************************************************************************

Unemployment Rates: Going Down?

7/28/14 - A main indication of a recovering economy is a lowering of unemployment rates, and, according to an article by Jim Puzzanghera of the L.A. Times, the American economy may be seeing precisely that trend. According to current statistics, Puzzanghera states, the number of people filing for first-time unemployment benefits is at its lowest since February 2006.

Of course, this only measures first-time claims for unemployment benefits, not continuing claims nor claims from individuals laid off more than once in the term. Thus, all that these statistics really measure is how many individuals have been laid off for the first time and have filed for unemployment benefits. That being said, Puzzanghera also presents statistics to show that the total number of individuals receiving unemployment benefits has dropped to 2.5 million, the lowest since June 2007.

These numbers, however, can also be skewed, as they measure only individuals receiving benefits, not necessarily the number of individuals actually unemployed. The Labor Department doesn't count individuals who are still unemployed but whose benefits have run out, nor does it count individuals who have quit the job search altogether.

While it is true that statistics can be warped, so as to present the data in a more favorable way, it seems that even when such changes have been accounted for, the number of jobless individuals has indeed been going down in recent weeks. The numbers are looking up for the labor force and the American economy, and this may just be the beginning of our ascent from the seemingly bottomless pit into which we were dropped when the Great Recession first hit.

***************************************************************************************************

Southern California, Attracting Investors

7/18/14 - While it is common knowledge that China, as a country, controls a large portion of American debt, it may come as a surprise that Chinese citizens, individually, are having their own significant effect on the American economy. According to an article by Tim Logan, of the L.A. Times, there has recently been a dramatic influx of Chinese investment in Southern Californian real estate.

While this interest has been mostly focused in such areas as Los Angeles, San Francisco, Irvine, and the San Gabriel Valley, statistics show that real estate sales to foreign investors have reached $92 billion, approximately 7% of total national sales — quite a hefty sum given the considerable crash in real estate sales that has accompanied the Great Recession.

According to the sources quoted in the article, there are a few explanations for this drastic increase in foreign investment. From California's coastal location and moderate climate to its world-class universities and global renown, such investors view the Californian market as a safer bet than the currently “overheated” Chinese market.

This interest in California, as well as the United States in general, is helping to improve the real estate market, especially in areas that have historically been popular with foreign buyers. Investors are looking for real estate in Los Angeles, Irvine, and San Francisco — cities they know.

Since this trend of foreign investment first began, businesses have been changing their game plan. Real estate companies have been opening offices in other countries, expanding their outreach, and incorporating design elements in new buildings popular with a more “international clientele.”

Although this article mainly discusses Chinese investment in Californian real estate, it also mentions how California's weather, economic stability, and fame have been attracting investors from all over the globe: from Europe, Russia, and even Latin America. In concluding the article, Logan states that although this new interest of wealthy investors is helping to improve the market and drive up prices in select areas, foreign investment will have little effect on the average American home-buyer in an average American neighborhood.

***************************************************************************************************

Lowering Interest Rates: A Continuing Trend?

7/14/14 - Interest rates are a large part of measuring an economy's strength, stability, and ability to recover. For the average American, there is no ideal interest rate; it all depends on one's status. For older Americans, relying on the interest accrued from a pension fund or savings account, low interest rates can be devastating, helping very little to increase their principal investment. On the other hand, low interest rates can mean lower mortgage rates, more affordable loans, and improvement of the stock market. In his article, Tom Petruno of the Los Angeles Times investigates interest rates, their effect on the economy, and predictions of future changes.

In most countries, the interest rates are controlled by a main federal banking organization: the Federal Reserve, the European Central Bank, or the Bank of Japan, to name just a few. These organizations command changes in the short-term interest rate, and as of recently, have been holding them as low as possible, in an attempt to stimulate economic growth in the form of real estate, corporate loans, and stock market investment.

Although the Federal Reserve publicly predicts interest rates to be up to 2.5% by 2016, several members of the policy committee remain skeptical as to the magnitude of this rate increase. While they disagree as to the amount, they seem to concur as to one main idea: America of the post-Great Recession era will take quite a while to regain its previous economic stature. Of the many sources Petruno cites in this article, one message stands out: don't rely on a return to “normal” interest rates, for the economy still has a ways to go.

While central banks control short-term interest rates, such long-term rates as on bonds are affected more by the principle of supply and demand. As demand for bonds decreases, the banks offer higher interest rates as an incentive to increase demand, and as demand increases, banks have more leeway to lower interest rates without affecting sales too drastically. Thus, the interest rates on bonds have been falling lower and lower due to increased consumer demand for such “safer” investments.

According to Petruno, even though interest rates have been at all-time lows, inflation could reverse this trend. As prices and wages increase, long-term interest rates could be driven up markedly by bond investors. According to the Federal Reserve, the current national inflation rate is at target levels, around 2%. While some analysts believe that the inflation rate will continue to increase, in the long run, it appears to remain steady, especially given that wages aren't increasing along with the costs of goods and services. Due to high unemployment, and a dramatic shift to more part-time work, the current rise in prices is predicted to decrease, given that lower wages can't fuel a sustained increase in costs.

In concluding the article, Petruno brings up the following point: while the funneling of money into central banks has not, as of yet, triggered a dramatic improvement in the national economy, such an improvement due to this money could have negative consequences, namely high inflation. It seems like the solution to fixing the American economy relies mainly on time and patience. Interest rates are slowly climbing, and the economy appears to be healing, albeit slowly. Thus, all we can really do is watch and wait.

***************************************************************************************************

The Economy: Looking Up?

7/7/14 - Looking around, seeing homes facing foreclosure, businesses having to shut their doors, and unemployment rates through the roof, one might think that the American economy is struggling as much as ever. However, according to a recent article by Don Lee of the Los Angeles Times, things may not be quite as bad as they seem.

Sure, America may have a 6% average unemployment rate and recent college graduates may have trouble finding work, but, compared to most other countries, we seem to be doing well. The average income of an American citizen far exceeds that of a Chinese citizen, and even with the recession taking its tolls, the United States leads the world in labor force growth. More and more individuals enter the workforce every day, and with them comes the promise of increased production, and effectively, economic stimulation.

Lee's statistics show that while job opportunities have decreased dramatically in such middle-of-the-road fields as manufacturing and construction, employment has risen markedly in positions of both unskilled labor (restaurants, retail outlets) and highly skilled work (computer design, healthcare). In summation, Lee implies that one of the greatest factors in assisting the American economy back to its future glory is the ever-continuing addition of young adults, recent college graduates, into the labor force. It is those young adults who innovate, who expand the diversity of the workforce, who invest in capital such as real estate, and thus, it makes sense that these individuals are the “missing ingredient” in America's future economic recovery.

***************************************************************************************************