In March of 2012, 49 state attorneys general and the federal agreement reached a historic settlement with the nation’s five largest loan servicers to provide relief for distressed homeowners. State and federal investigations found that mortgage servicers routinely broke the law by “robo-signing” foreclosure documents without verifying the information. The settlement provides up to $25 billion in financial resources to provide relief for borrowers and direct payments for states.

In Virginia, the settlement means $69 million in funds to assist distressed homeowners and promote homeownership throughout the Commonwealth. The housing industry is advocating that a portion of the funds be directed to the state’s Housing Trust Fund to be used for gap financing. Gap financing could be used by homebuyers who would otherwise qualify for a mortgage but do not have the cash assets to provide a sufficient down payment or pay for closing costs. Buyers could apply to a state administered fund for either a grant or low-interest loan to cover those expenses. The program would be available to low- and moderate-income individuals and families.

In addition to the monetary settlement, mortgage services are also required to comply with a series of servicing reforms aimed at streamlining the short sales process and making it easier for both buyers and sellers. Here is a breakdown of the four major reforms:

1. Short sale standards
   • Requirements must be made publicly available
   • Establishment of a cooperative program
   • 30-day time limit on decisions (clock starts running once offer is submitted and 3rd party approves)
2. End of dual-tracking
3. Single point of contact
4. Creation of loan portals

There is also a strong enforcement mechanism so that the servicers don’t just keep doing business as usual.  Banks can be fined up to $5 million for reported violations.  These changes are not immediate.  NAR estimates that they may take up to 180 days to implement, but they are coming and they are steps that realtors® have been calling for repeatedly. 

Everyone knows how to use Facebook, right?  It’s been around forever now, and who can even remember the time when you didn’t check your Facebook page as your first waking activity everyday.  Well, you may be surprised to know that many, many people, including REALTORS®, misuse their Facebook page on a regular basis and don’t event realize it. 

Surely you can post to your personal profile a listing you have every now and then and hope that you generate some leads for a sale, right?  Wrong!  The Facebook use agreement specifically states that individuals will not use their personal profile pages for commercial gain.  Facebook wants you to use a business page to promote your real estate practice, not your personal page.  Facebook reserves the right to disable any accounts that it deems to be violating the rules.  If you only use your personal page to promote your listings, you run the risk of losing access to your account and having to fight to get it reinstated. 

Aside from being against the official use policies, it’s also not very considerate to bombard your Facebook friends with endless commercial listings in your status updates.  If you friend a colleague, family member, or former client, they may be interested in seeing what’s going on in your life but they probably don’t care about every business deal you have going on.  If your goal is to expand the reach of your business, putting commercial information on your personal Facebook page could have the exact opposite impact.  Facebook gives users the option of either de-friending you or just unsubscribing from your posts so even though you are putting up lots of information, some of your friends may never even see it. 

This can all be avoided by establishing a business page that your friends can like with the full knowledge that it is for business purposes.  You can post information about your listings because it both complies with Facebook’s policies and people know up front exactly what kind of information you will be posting.  In addition to listings, you can post market statistics, analysis of trends, the current interest rates, and any other bits of knowledge that you think are interesting.  This will make your page varied and current, and will drive traffic to your business.

NAR published a great field guide for REALTORS® about how to use Facebook in your business and tips on how to maximize your exposure.  The field guide is regularly updated to reflect the changing technology world.  Refer to it often to make sure you are in compliance and putting your best “face” out there.

Do Property Managers need to be licensed?  Should I pay referral fee to lead generating companies?  Blake Hegeman answers these questions and more.

Legal Hotline FAQs Episode 5: A Regulatory Grab Bag from Virginia Association of Realtors on Vimeo.

REALTOR(R) Foundation Art Show

Every day as professional real estate agent, we work hard to make sure that Homeownership matters and is a part of the American dream.  Did you know that for many, that isn’t always the case!  Unfortunately many in our area need help with down payments for rent, utilities, finding a place quickly when their home has had a fire, and to be truthful, the list goes on and on.

But did you know that we do have a way to help, and for years we have.  It is your Fredericksburg REALTOR® Foundation!  We have been serving our 5 counties for over 10 years.  We have provided financial support to a very long list of non-profit organizations including, American Red Cross, Homes for our Troops, CVHC, Habitat for Humanity, Ronald McDonald House in Richmond, Christmas in April, and the Hope House, just to name a few .  If it is housing related – we probably have supported them quietly in the background.  In 2010, we received a grant from NAR that launched the Hands Up for Educators Program.  It was a huge success, but we need to refocus, regroup and re-engage!

That leads us to now!  On May 12, 2012 we will be hosting our first annual Regional High School Art Show.  The Art show will be held at the Expo Center!  The space has been generously donated- which is amazing and we are extremely thankful!   It seems that the students understand the importance of giving back to our communities and are willing to donate their hard work so that we can sell the pieces to continue to support housing related issues.

This is a huge undertaking; we are very nervous and excited as this crosses into so many facets.  It involves local students who care, the Expo Center who has donated the facility, the Foundation members who are working to make this a successful event and most of all, those who will benefit from the success of the art show.  But now we need you!  Your REALTOR® Foundation Needs Sponsors to support the event and we are hoping that we can count on you!  We offer several levels of sponsorship that will let the community know that you care.   We also need your help on the day of the art show.   If you can, please help your Foundation by contacting me for sponsorship information, or just click the link to download an application.   The community needs your support!

ART SHOW SPONSORSHIP PACKAGE
Thank you,

Drew Fristoe

Dfristoe@cbeva.com

On December 14, 2011, FAAR was recognized by the Rappahanock Area Community Services Board for spreading some holiday cheer. Executive Director, Ron Branscome,of RACSB, presented FAAR with an award for serving families for over a decade. FAAR members have adopted approximately 30 needy families each year in the Fredericksburg area from an organization called Project LINK, run through the RACSB, which helps mothers struggling with substance abuse. Carloads of dolls, playpens, bicycles, and more pile into the office and are dispersed to the many families that are served through this program. Marie Smith, who organizes the event each year, is quoted in the Freelance Star as saying “It’s been like this in the good times and the bad. They [REALTORS®] always come through.”

Pictured left to right:

FAAR CEO, Pat Breme; Pamela Wharton; FAAR 2012 President, Chip Taylor; Marie Smith, Project Link Direcctor, Glenda Knight,: and Denise Smith.

The recent changes made to Virginia’s Agency Law mandates that all licensees renewing after July 1, 2012 take a 3 hour course on the Agency changes. This is a one-time only requirement which applies to all active licensees renewing or reinstating their license. This 3 hour course is in addition to the 16 hours of continuing education. If a licensee renews his license on inactive status and applies to activate his license, the licensee must complete the course on Agency before the Board will activate his license during this time period. The Real Estate Career Academy (RECA), will begin hosting this course in June. *Please note, agents whose licenses expire before July 1, must wait until after July 1 to take this course. If your license expires after July 1, you may take an approved course anytime within your renewal cycle. Questions? Contact DPOR at 804-367-0406

 There are still 10 openings in the following time slots 9:30, 9;45, 10:30 to 11:15

Location:  FAAR Building  2050 Gord W. Shelton Blvd., Fredericksburg, VA 22408

The Tri-County/City Soil and Water Conservation District is hosting a class in March on forestry   and real estate.  This class includes DPOR approved continuing education credits and focuses on the valuable real estate commodity that raw forest land is becoming in Virginia.  Class participants will learn about the value of forest land, what forest land buyers and sellers are looking for, and how real estate professionals can educate themselves about this growing sector of the market.  For more information or to register for this class, please click here to view the official flier. 

*Please note this class is not sponsored by RECA.  It is run specifically by the local Soil and Water Conservation District. 

How do you see your association?  This was a question FAAR members and staff were tasked to consider during last week’s two day Strategic Planning session.  If FAAR was a super hero what would his/her super power be?  The responses were somewhat comical.

Every few years FAAR reviews it’s strategic plan to ensure the association operates with clear goals and objectives while working to meet expectations of members.  The discussion was lively as action items were evaluated and plans were made for the future.  With this two-day planning session completed the work is off to a good start.  Next FAAR’s executive committee will evaluate the plan and make final adjustments before the entire Board of Directors approves the plan.

The hearing set for this evening at the Spotsylvania Board of Supervisors regarding the Ni Village project has been postponed until Tuesday, October 11th at 6:30pm.