The Escrow AdvisorJune 2017 | Issue Eighty Eight

What to Watch for thisMonth:

• Customary Fees• Moving Milestones• SD County Utilities• Frequently Asked FIRPTA Questions

AND MORE...

This year marks the seventh year since the influx in bankruptcy declarations in 2010, therefore millions of Ameri-cans will see bankruptcies begin to fall off their credit report.

Over the next five years, about 6 mil-lion Americans will have their bank-ruptcies disappear, possibly sending a flood of more homebuyers into the housing market, according to an ar-ticle by AnnaMaria Andriotis for The Wall Street Journal.

This chart, which uses data from the U.S. Bankruptcy Courts analyzed by HousingWire, shows Chapter 7 non-business bankruptcies peaked in 2010 during the housing crisis then decreased over the next few years be-fore leveling off in late 2015 to 2016.

In 2010, the number of Chapter 7 bankruptcies, the most common type of bankruptcies which do not involve a plan of repayment and instead liq-uidate the filer’s assets, increased to nearly 1.14 million. Of those, nonbusi-ness Chapter 7 filings made up about 1.1 million, according to the U.S. Bank-ruptcy Courts.

For comparison, the number of Continued on Page Four

DISAPPEARINGBANKRUPTCIES COULD START NEW WAVE OF HOMEBUYING

By the job’s nature, realtors deal with sensi-tive client data every single day. When you’re dealing with information like client names, addresses, social security numbers, and fi-nancial information, you don’t want to play around. If you don’t want to find yourself tied up in an expensive lawsuit that could cost you your business, it’s crucial to make sure your clients’ secure data remains that way—secure.

ENCRYPT YOUR DATA.

Any time you send unencrypted information through the internet, you’re just asking cy-bercriminals to come sniffing around. If you are storing or transmitting sensitive custom-er data, then you should be encrypting that data—no exceptions.

INSTALL—AND REGULARLY UPDATE—FIREWALLS AND MALWARE PROTECTION.

Make sure your system always has data leak prevention software installed, and always keep those tools up to date. If you run a dig-ital security program that hasn’t been up-dated in a year, that essentially means that

you’re protected against the threats that were prominent a year ago.

Malware is constantly evolving. Hackers are constantly developing new ways to get around digital security measures, so you need to make sure that your network is pro-tected with the newest defenses. If your dig-ital security provider releases a patch, make sure that you’ve installed it on your network

within the next day or so.

MONITOR YOUR WEBSITE FOR MALWARE.

Malware is often transmitted through web-sites rather than via email. Particularly if customers process payments through your website, make sure that your website hasn’t been compromised. Monitor your site regu-larly, checking for potential anomalies. If you don’t have the capability to do this yourself, then consider hiring a third-party website malware monitoring service. These firms keep your website and customers protected from malware and will notify you when it de-tects that your site has been compromised.

Continued on Page Four

HOW TO KEEP YOUR REAL ESTATE CLIENTS’ PERSONAL INFORMATION SECURE

The Escrow Advisor • Page Two June 2017 • Issue Eighty Eight

SAN DIEGO COUNTY FARMERS’ MARKETS

MONDAY Escondido – Welk Village 3-7

TUESDAYCoronado 2:30-6Escondido 2:30-6Mira Mesa 2:30-6Otay Ranch 4-7Pacific Beach 2-7UCSD/La Jolla 10-2

WEDNESDAYCarlsbad 3-6 Encinitas 5-8

Ocean Beach 4-7People’s Produce 5-8Santee 3-6

THURSDAYCarmel Valley 2:30-7Chula Vista 3-6El Cajon 3-6Valley Center 3-7Linda Vista 3-7 North Park 3-7Oceanside CFM 9-1UTC 3-7Valley Center 2-6

FRIDAY Imperial Beach 12-6Kearny Mesa 11-1:30La Mesa 2-6Rancho Bernardo 9-1

SATURDAYCity Heights 9-1Del Mar 1-4Golden Hill 9:30-1:30Little Italy 8-2Pacific Beach 8-12Poway 8-1Ramona 9-1Rancho Penasquitos 10-1Scripps Ranch 9-1:30Vista 8-1

SUNDAYGaslamp District 9-1 Hillcrest 9-2Leucadia 10-2La Jolla 9-1North San Diego 10:30-3:30 Rancho Santa Fe 9:30-2 Solana Beach 1-5

Dates and times are subject to change, for more information visit www.sdfarmbureau.org

San Diego PadresJUNE home Schedule

Friday, June 2 vs. Rockies 7:10 PM

Saturday, June 3 vs. Rockies 1:10 PM

Sunday, June 4 vs. Rockies 1:40 PM

Friday, June 9 vs. Royals 7:10 PM

Saturday, June 10 vs. Royals 1:10 PM

Sunday, June 11 vs. Royals 1:40 PM

Monday, June 12 vs. Reds 7:10 PM

Tuesday, June 13 vs. Reds 7:10 PM

Wednesday, June 14 vs. Reds 12:40 PM

Friday, June 23 vs. Tigers 7:10 PM

Saturday, June 24 vs. Tigers 7:10 PM

Sunday, June 25 vs. Tigers 1:40 PM

Tuesday, June 27 vs. Braves 7:10 PM

Wednesday, June 28 vs. Braves 7:10 PM

Thursday, June 29 vs. Braves 6:10 PM

Friday, June 30 vs. Dodgers 7:10 PM

The Escrow Advisor • Page Three June 2017 • Issue Eighty Eight

San Diego County ActivitiesCalendar of Events June 2017

Contact your Account Executive to obtain a monthly Calendar of Events in San Diego County

1st - Li Huai, A Solo Show: You Fascinate Me! – Artist Li Huai will demonstrate Chinese calligraphy as a part of her artistic background and current teaching. Sparks Gallery, 530 6th Ave., San Diego. 6:30 pm (http://sparksgallery.com/)

1st – New Kids On The Block, Paula Abdul & Boyz II Men – Viejas Arena, 5500 Canyon Crest Dr, San Diego, 7:30pm (https://as.sdsu.edu/viejas_arena/)

1st – UC San Diego Gospel Choir – the UC San Diego Gospel Choir com-bines hundreds of voices to fill the auditorium with the uplifting sound of African American spirituals, Blues, traditional songs and Gospel. Man-deville Auditorium, 9500 Gilman Dr., La Jolla, 8pm. (http://mandeville.ucsd.edu/)

1st thru 3rd – “Snow White and the Seven Dwarfs” Auditions – Tryouts for the North Park Recreation Center’s August production of this Disney Classic. North Park Recreation Center, 4044 Idaho St., San Diego, CA 92104. Check website for tryout times (http://t3triplethreat.com/)

2nd thru July 20th – Wonderspaces – Playing on all the senses, Won-derspaces transports visitors outside of their everyday lives with the goal to bring people together through shared experience., Civita Park, 7902 Altana Way, San Diego (https://www.wonderspaces.com/)

2nd thru July 5th – San Diego County Fair – Grab your cowboy hat, pull on your boots and ride on over to this year’s San Diego County Fair as we celebrate the legendary rough-and-tumble Wild, Wild West. Del Mar Fair-grounds, 2260 Jimmy Durante Blvd., Del Mar. (http://www.sdfair.com/)

2nd – REO Speedwagon in Concert – Relive the biggest hits in rock as the iconic band REO Speedwagon takes the stage. Harrah’s Resort South-ern California, 777 Harrah’s Rincon Way, Valley Center, 9pm (https://www.harrahssocal.com/)

3rd – Pink Boots Society 10th Anniversary Beer Festival – Celebrat-ing 10 years of assisting, inspiring and encouraging women in the beer industry. Ingram Plaza, Liberty Station, 2751 Dewey Rd, San Diego, 12pm (http://pinkbootssociety.org/)

4th – Jazz A While with the Center Chorale – The Center Chorale and the Champagne Dixie Jazz Band invites you to enjoy a fantastic Jazz evening. Lawrence Welk Greens Event Center, 8860 Lawrence Welk Dr., Escondido, 4pm (http://www.brownpapertickets.com/event/2937502)

6th – Sheryl Crow in Concert – Enjoy an Evening with Grammy Award winning musician Sheryl Crow. Humphreys Concerts by the Bay, 2241 Shelter Island Dr., San Diego, 7:30pm (http://www.humphreysconcerts.com/)

10th – Toast of the Coast Wine Festival – Taste more than 100 award-winning wines from our Wine Competition, highlighting the best wines of the United States and Mexico. Del Mar Fairgrounds, 2260 Jimmy Durante Blvd., Del Mar, 12pm (http://www.sdfair.com/)

10th – 11th Annual Julian Dance and Backcountry BBW – Spend a day in Julian helping raise funds for Veterans, kids, local schools and other charitable organizations in the community. Menghini Winery, 1150 Julian Orchard Drive, Julian, 2pm (http://juliandance.org/)

10th and 11th – 2017 San Diego Festival of the Arts -- Leading inter-national artists from multiple visual arts categories return to San Diego’s downtown Waterfront Park. Waterfront Park, 1600 Pacific Highway, San Diego, beginning at 10am both days (http://www.sdfestivalofthearts.org/)

13th thru 18th – “The Bodyguard” -- “The Bodyguard” is an award-win-ning musical based on the smash hit film, starring Grammy Award nomi-nee and R&B superstar Deborah Cox. San Diego Civic Theatre, 1100 Third Avenue, San Diego, check website for times (http://sandiegotheatres.org/the-bodyguard/)

15th thru 18th – San Diego International Boat Show -- Make your boating dreams a reality at Southern California’s premier summer boating event. Spanish Landing Park, North Harbor Drive, San Diego, check web-site for times (http://www.sandiegointernationalboatshow.com/)

16th thru 18th – San Diego International Beer Festival -- Beer aficio-nados will enjoy hard-to-find specialty craft brews alongside favorites from our local brewing scene at the San Diego International Beer Festival. Del Mar Fairgrounds, 2260 Jimmy Durante Blvd., Del Mar. (http://www.sdfair.com/)

17th – Festival of Yoga San Diego – Celebrate United Nations Interna-tional Day of Yoga. Balboa Park, 1549 El Prado , San Diego, 8am (http://festivalofyogasandiego.org/)

17th – AleSmith Tony Gwynn 5.5K – AleSmith Brewing Company will be hosting a 5.5 kilometer walk/run Father’s Day Weekend to pay tribute to Tony Gwynn. AleSmith Brewing Company, 9990 AleSmith Ct., San Diego, 8am (http://www.tonygwynn5k.org/)

23rd – Brad Paisley in Concert – Join Brad Paisley, the critically ac-claimed singer, songwriter, guitarist and entertainer for an evening of his hits. Mattress Firm Amphitheatre, 2050 Entertainment Cir, Chula Vista, 7pm (http://livemu.sc/2pdUD1B)

24th – Mass Creativity Day 2017 -- Make, share and create art during Mass Creativity Day, a free outdoor arts festival. The New Children’s Mu-seum, 200 West Island Ave., San Diego, 10am (http://bit.ly/2paU47V)

25th – Opera’s Greatest Moments – A brilliant cast of international sing-ers, a full-orchestra, The Center Chorale, and The San Diego North Coast Singers perform selections and scenes from the world’s greatest opera music. California Center for the Arts: Escondido, 340 N. Escondido Blvd., Escondido, 4pm (http://bit.ly/2qwIbhc)

30th – A Night with Chris Thile – Join the host of “A Prairie Home Com-panion,” for an exclusive KPBS event! Music Box, 1337 India St., San Diego, 6pm (http://bit.ly/2paQvPe)

The Escrow Advisor • Page Four June 2017 • Issue Eighty Eight

Chapter 7 bankruptcy filings among non-businesses in 2007 totaled just more than 500,000, data from the U.S. Courts showed.

After hitting the peak in 2010, bankruptcies once again be-gan to slowly decrease. In 2016, Chapter 7 non-business bankruptcies slipped to 473,673 filings.

Now, seven years later, these bankruptcies will begin to fall off, improving the credit score for millions of Americans, and enabling them to once again consider homeownership.

Credit scores reached a record high this Spring and the share of Americans in the riskiest borrower category hit an all-time low, according to the WSJ article. As bankruptcies continue to fall off credit reports, credit scores will continue to improve, and more consumers could begin to enter the housing mar-ket.

This will create even more competition in an already tight market. Home prices continue to increase as inventory levels drop. And experts say don’t expect it to let up anytime soon.

And Hispanic homeownership could also see an increase over the next few years as President Donald Trump and his administration seek to “dismantle” the Dodd-Frank Wall Street Reform Act, which could give lenders more freedom to originate loans outside traditional qualified mortgages. They could then, perhaps, extend more lines of credit to the His-panic population.

U.S. citizenship applications are also on the rise, and immi-grants who are not citizens hold a homeownership rate of 39.3%, according to the latest data from the U.S. Census Bu-reau in its 2013 Current Population Survey. However, once these immigrants become citizens, that number nearly dou-bles to a homeownership rate of 69.7%.

And don’t forget first-time homebuyers. The most recent re-port from Ellie Mae shows where there is available inventory, Millennials are ready and willing to buy a home.

Overall, homeownership rates could boom over the next few years. That is, if struggling inventory levels can keep up.

www.housingwire.com

DISAPPEARING BANKRUPTCIES COULD START NEW WAVE OFHOMEBUYING (cont.)

HOW TO KEEP YOUR REAL ESTATE CLIENTS’ PERSONAL INFORMATION SECURE (cont.)IF YOU KEEP PHYSICAL COPIES OF INFORMATION, STORE THEM IN A SECURE LOCATION.

As the world has become more digitally connected and awareness has grown regarding cybercrime, many firms begin to neglect the securi-ty of their physical data. If possible, avoid creating a hard copy of any document that contains sensitive information. If this is impossible, then keep those documents in a secure location. Shred paper documents containing sensitive data unless it is absolutely necessary to keep them. Keep those documents you must have under physical lock and key.

DEVELOP A PLAN FOR IF A BREACH OCCURS.

Even if you’ve done everything right and put all the proper security pro-tocols in place, there’s always the chance that a cybercriminal could find his way through your defenses, causing a breach. In the event that such a breach happens, you and your staff need to be prepared to respond.

In addition to holding regular training sessions to ensure that your team is fully aware of the preventative measures you have already installed, run your team through drills of what to do in the event of a breach. Assign each task that needs to be completed to a specific team or individual so that you can be certain it’s being taken care of. Know which countermeasures you have in place, as well as who is responsible for it.

DON’T KEEP SENSITIVE CLIENT DATA ANY LONGER THAN NECES-SARY

While it may be more convenient to simply file away your clients’ secure data in case you need to reference it again in the future, once the immediate need is gone, it may be wiser to just get rid of it. Real estate and mortgage brokers can be a very tempting target for cybercriminals, because they deal in particularly valuable information. Sometimes, it’s necessary for you to keep sensitive data about your clients, but if you only keep the information it is absolutely vital for you to have, then it is easier to focus your efforts on protecting that data.

If you want to build a relationship of trust with your clients, one of the first things you need to be able to demonstrate is that you can keep their data safe. The instant that data is breached, you lose all credibility, which will strongly affect both current and future client relationships. In the end, putting in the effort and investment now will keep your busi-ness running smoothly in the future.

www.realtytimes.com

VICKI FOREMAN | SD COUNTY ESCROWBRANCH MANAGER/ESCROW OFFICER

9988 HIBERT STREET, SUITE 150 | SAN DIEGO, CA 92131

P: 858.386.4538 | F: 858.224.1449 | VFOREMAN@SDCOUNTYESCROW.COM