Real Estate Information Archive

The crooks are really getting good.

Snopes.com http://www.snopes.com/ says  this is true.  

Link to this scam: http://www.snopes.com/crime/warnings/creditcard.asp

This one is  pretty slick since they provide YOU with all the information, except  the one piece they want.

Note, the callers do not ask for your  card number; they already have it. This information is worth reading.  By understanding how the VISA & MasterCard Telephone Credit Card  Scam works, you'll be better prepared to protect yourself.

One  of our employees was called on Wednesday from 'VISA', and I was called  on Thursday from 'Master Card'. The scam works like this: Caller:  'This is (name), and I'm calling from the Security and Fraud  Department at VISA. My Badge number is 12460. Your card has been  flagged for an unusual purchase pattern, and I'm calling to verify.  This would be on your VISA card which was issued by (name of bank).  Did you purchase an Anti-Telemarketing Device for $497.99 from a  Marketing company based in Arizona ?'

When you say 'No', the  caller continues with, 'Then we will be issuing a credit to your  account. This is a company we have been watching and the charges range  from $297 to $497, just under the $500 purchase pattern that flags  most cards. Before your next statement, the credit will be sent to  (gives you your address), is that correct?'

You say 'yes'. The  caller continues - 'I will be starting a Fraud investigation. If you  have any questions, you should call the 1- 800 number listed on the  back of your card (1-800-VISA) and ask for Security.'

You will  need to refer to this Control Number. The caller then gives you a 6  digit number. 'Do you need me to read it again?'

Here's the  IMPORTANT part on how the scam works. The cal ler then says, 'I need to verify you are in  possession of your card'. He'll ask you to 'turn your card over and  look for some numbers'. There are 7 numbers; the first 4 are part of  your card number, the next 3 are the security Numbers that verify you  are the possessor of the card. These are the numbers you sometimes use  to make Internet purchases to prove you have the card. The caller will  ask you to read the 3 numbers to him. After you tell the caller the 3  numbers, he'll say, 'That is correct, I just needed to verify that the  card has not been lost or stolen, and that you still have your card.  Do you have any other questions?' After you say No, the caller then  thanks you and states, 'Don't hesitate to call back if you do, and  hangs up.

You actually say very little, and they  never ask fo r or tell you the Card number. But after we were called on  Wednesday, we called back within 20 minutes to ask a question. Are we  glad we did! The REAL VISA Security Department told us it was a scam  and in the last 15 minutes a new purchase of $497.99 was charged to  our card.

Long story - short - we made a real fraud report and  closed the VISA account. VISA is reissuing us a new number. What the scammers want is the  3-digit PIN number on the back of the card Don't give it  to them. Instead, tell them you'll call VISA or Master card directly  for verification of their conversation. The real VISA told us that  they will never ask for anything on the card as they already know the  information sin ce they issued the card! If you give the scammers your  3 Digit PIN Number, you think you're receiving a credit. However, by  the time you get your statement you'll see charges for purchases you  didn't make, and by then it's almost too late and/or more difficult to  actually file a fraud report.

What makes this more remarkable  is that on Thursday, I got a call from a 'Jason Richardson of Master  Card' with a word-for-word repeat of the VISA scam. This time I didn't  let him finish. I hung up! We filed a police report, as instructed by  VISA. The police said they are taking several of these reports daily!  They also urged us to tell everybody we know that this scam is  happening. 
  

Energy Auditing Tips:
1 Check the insulation levels through your home.
2 Check for holes or cracks around your walls, ceilings, windows, and electrical outlets.
3 Check for open fireplace dampers
4 Maintain appliances and heating and cooling systems.
5 Look for ways to reduce lighting energy use.

Heating & Cooling Tips:
1 Set your thermostat low in the winter and high in the summer.
2 Clean or replace filters on furnaces once a month or as needed.
3 Turn off kitchen, bath, and other exhaust fans within 20 minutes after you are done cooking or bathing. 
4 when replacing exhaust fans, consider installing high [efficiency, low – noise models.
5 For furnaces, look for high Annual Fuel Utilization Efficiency (AFUE) ratings. The national minimum is 78% AFUE. Look for Energy Star models, some exceed 78% AFUE.

Lighting
1 Compact fluorescent bulbs are four times more energy efficient than incandescent bulbs, provide the same light levels and last about 4-10 times longer.
2 Turn off the lights in any room you’re not using, or consider installing timers, photo cells, or occupancy sensors to reduce the amount of time your lights are on. Instead of brightly lighting an entire room, focus the light where you need it.
3 Use outdoor lights with a photocell unit or a motions sensor so they will turn on only at night or when someone is present.
4 Turn off decorative outdoor natural gas lamps, just eight such lamps burning year-round use as much natural gas as it takes to heat an average-size home during an entire winter.

Window Tips
1 In a warm-climate, install white window shades, drapes, or blinds to reflect heat away from the house.

(All information contained herein intended as helpful information only. If in doubt about any action, contact a professional.)

Deter – Detect – Defend

DETER
1. Cross shred financial documents and paperwork with personal information before you discard them.
2. Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Give it out only when absolutely necessary or ask to use another identifier.
3. Do not put your wallet on a counter.
4. Don’t give out personal information on the phone, the mail, or the internet unless you are familiar with the person.
5. Never click on the links sent in unsolicited emails; instead, use the web addressed you know. Use firewalls, anti-spyware, and anti-virus software on your home computer; keep them up-to-date. Visit www.OnGuardOnline.gov for more information.
6. Don’t use an obvious password like your birth date, your mother’s maiden name, or the last four digits of your Social Security Number. Use a different password and PIN for each account. Create PINs with a combination of letters and numbers mixed up, then memorize.
7. Keep personal information in a secure place at home, especially if you have roommates, employ outside help, or are having work done in your house, including SSNs, bank account numbers and PIN numbers.
8. Mail deterrents include: Install a locked mailbox at your residence. Remove mail daily after it is delivered. Or, have your mail delivered to a post office box.
9. DO NOT put your SSN on job applications.

DETECT
1. Bills that do not arrive as expected.
2. Unexpected credit cards or account statements.
3. Denials of credit for no apparent reason.
4. Calls or letters about purchases you did not make.

DEFEND
1. Place a “Fraud Alert” on your credit reports and review them carefully. The alert tells creditors to follow certain procedures before they open new accounts in your name or make changes to your existing accounts.
2. The three nationwide consumer reporting companies have toll-free numbers ofr placing an initial 90-day fraud alert, a call tone company is sufficient:

Equifax: 1-800-525-6285
Experian: 1-800-397-3742
TransUnion: 1-800-680-7289

3. A fraud alert will get you free copies of your credit reports. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain.
4. Close any unauthorized accounts. Call the security or fraud departments of each company where an account was opened or changed without your knowledge. Follow up in writing, with copies of supporting documents and the police report file number.
5. Ask for verification that the bad account has been closed and the fraudulent debts discharged.
File a police report with law enforcement officials to help you with creditors who may want proof of the crime.
6. Report the theft to the Federal Trade Commission. Online: ftc.gov/idtheft. Or call them toll free at 1-877-438-4338 (ID-THEFT) Use the ID Theft Affidavit at the ftc.gov/idtheft to support your written statement.

For information on other cities in Orange County Click Here

Investors in second or multiple homes stand to be among the biggest losers from the housing downturn.   That’s because proposed mortgage bailout programs don’t address second homes and investment properties.  Many owners of multiple properties don’t realize that investments they thought would help them build long-term wealth may in fact leave them in bankruptcy and facing a sizeable tax debt.

MAKING SENSE OF THE STORY FOR CONSUMERS

Homeowners who borrowed against the value of their second home, or who financed the purchase of their second home and subsequent homes by pledging their primary home or other properties as security, may be liable for taxes on the difference in value should they sell any of their properties for a price less than the value owed on the mortgage.

Under the Mortgage Forgiveness Debt Relief Act, a homeowner doesn’t have to pay taxes on forgiven debt if the collateral behind the mortgage is owner-occupied.  That provision doesn’t apply to a growing number of homeowners renting out their second home or investment property.  Of some 7.5 million vacation homes, only about 10 percent are considered owner-occupied, according to the NATIONAL ASSOCIATION of REALTORS® (NAR).  Many of these homeowners borrowed against the ever-increasing (or so it seemed) value of these properties to finance improvements or to buy other properties.

There may be a way out for some, one bankruptcy lawyer counsels:  Get a lender to agree that foreclosure “fully satisfies all obligations under the loan.”  That might protect the seller from having to pay taxes on the forgiven debt – although one attorney said, “I sure don’t want to be the one litigating it” in court.

To read the full story in the New York Times, please "click here"

A modest gain in the level of home sales is possible over the next couple of months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast.The Pending Home Sales Index rose 6.3 percent to 88.2 from a reading of 83.0 in March. It's the highest index figure since last October. Lawrence Yun, NAR chief economist, said pending sales contracts have picked up notably in areas undergoing significant price drops. "Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants," he said. "Sharp price reductions are leading to a quicker discovery of price equilibrium points. The West is already seeing year-over-year gains in pending contracts."

To read the complete forcast and pending home sales index at NAR "click here"

The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You’ll need this for income tax purposes and when you sell the home.