Bixby Oklahoma Real Estate

News: Funds for the Rural Development Program Are Once Again Available

What does this mean?  100% financing with no PMI!!!

Under the American Recovery and Reinvestment Act of 2009, approximately $10 billion in purchase funds are now available for the Rural Development Single Family Housing Guaranteed Loan Program (SFHGLP).  There are no funds available for refinance loans at this time; however, they do expect to have them available within several weeks.

Beginning Friday, March 27, 2009, the Rural Development program (971) will be re-activated for purchases only.  Refinance transactions will remain unavailable until further notice.

Tulsa County Real Real Estate Financing, Wagoner County Real Estate Financing, Creek County Real Estate Financing, Okfuskee County Real Estate Financing, Okmulgee County Real Estate Financing, Rogers County Real Estate Financing, Craig County Real Estate Financing, Choctaw County Real Estate Financing, Washington County Real Estate Financing, Osage County Real Estate Financing, Pawnee County Real Estate Financing, Cherokee County Real Estate Financing, Muskogee County Real Estate Financing, Nowata County Real Estate Financing

USDA was previously providing Conditional Commitments “subject to receipt of congressionally appropriated funds”. This is not an acceptable Commitment and loans cannot close with this stipulation.

Who owns the chocolate cake under your pretty flower made of butter frosting? Who exactly owns the mineral rights under your house?

What many people fail to realize is that royalty owners tend to be regular folks. In fact, many people who may be descendents of royalty owners may not realize that they have rights to royalties. It is a sad situation and I think the problem will loom larger as royalty holders realize that their rights are being challenged.

Who are the royalty holders? In many cases they are descendants of early landowners who worked hard to win over the land. There are a lot of little old ladies in retirement homes in Texas and Oklahoma who receive royalty checks and depend on them for their livelihood — even though they may be largely ignorant of where exactly that money originates.

Your next-door neighbor in Broken Arrow or Bixby may own the rights to minerals in Pawnee County or Osage County.  Your friend in midtown Tulsa may get income from a trust that owns the royalties under sections of Creek County or Tulsa County.  People throughout Oklahoma depend on the royalty income they receive through the legally binding contracts that are recorded in our county court houses.

If you want to know who the royalty owners are, then go down to the county clerk’s office and read the documents that pertain to your property.  You don’t have to read the abstract.  Documents may be missing from the abstract anyway — that’s why people get title insurance.  If you have questions, consult a qualified attorney.

Don’t just wonder — find out.  You have every right to know who owns the cake under your pretty icing house.

Real estate is like a cake. When you own the entire cake, you own the land in fee simple, essentially from the top of the ground to the center of the earth. When you own land in fee simple, you own the icing and the cake itself.

When someone sells the land and retains the mineral rights, then it is said that they sever the mineral rights. The surface owner effectively owns just the icing on the cake, which effectively means everything “from the grass roots up.” The mineral owner owns everything from “the grass roots” to the center of the earth.

The pretty houses on the surface of land are like flowers on a cake. Since it is not nice to mess up pretty flowers, in Oklahoma a new well cannot be spotted within 200 feet of a house. However, you can build a house close to existing wells.

Despite the fact that surface owners effectively own only the top few feet of land, they really own quite a ways down beyond the “grass roots.” This probably amounts to tens of feet, but not hundreds of feet down.

In Osage County, the landowners own just the surface. The Osage Nation owns all the minerals.

Generally in Oklahoma it is the surface owners who own the coal on the surface of the land and it is usually the surface owners who make agreements to have their properties strip mined for coal. However, the deeper coal zones can contain coal bed methane, a fertile source of natural gas; therefore the mineral owners will own those coal beds.

When you buy a house in Oklahoma, find out whether or not you are purchasing it in fee simple. If you are purchasing a property with mineral rights, your next question is, “What percentage of mineral rights are included?”

If you do not own at least 50% of the mineral rights, then you cannot control what happens to your land. It is incumbant upon all real estate sales representatives to explain this concept to anyone moving into Oklahoma from out of state.

This concept is hugely important and is understood by most native Oklahomans in rural areas. The emerging legal question is whether or not cities have the right to deprive land owners of their right to the minerals they own.

Homeowners should be encouraged to attempt to acquire the mineral rights to the land under them, because new technologies are making it much more cost effective to produce oil where heretofore it was not profitable.

In short, try to get more than 50% of the mineral rights if you cannot purchase your property in fee simple (otherwise you could be “pooled” — which is another topic for another blog).

This is a reblog of a blog I posted on Active Rain back in August 2008.

http://TulsaRealEstateWeb.com

http://NortheastOklahomaRealEstate.com

http://BixbyOklahomaRealEstate.com

http://dsolano.homesandland.com

Many of you who have been faithfully reading my blogs have noticed that I occasionally get up on a soap box and banter about a big chocolate cake known as real estate. While most realtors like to stage the pretty flowers that decorate the icing on top of the cake, I remain fascinated by the interface between the various layers of the cake and the icing

It just amazes me how ignorant real estate professionals are about this important topic: the relationship between landowners and the owners of the mineral rights beneath the land. It is not rocket science. It’s an interesting conglomeration of law, history, politics, geology, and genealogy all rolled into one bundle of rights that is much like detective work in unraveling. Unfortunately there are real economic and emotional consequences when these rights are misunderstood; tempers flare when it comes to the exercise of the more dominant rights of the mineral holders over those of the surface owners.

The State of New Mexico is considering a solution to the problem.

A bill is currently being proposed in the New Mexico legislature in an effort to alleviate some of the frustration experienced by surface owners: “Applying to the split estate (severed minerals), New Mexico HB 219 would require a person desiring to buy an oil and gas lease from the severed mineral owner to first give the surface owner notice of the intent to buy a lease from the mineral owner, a mineral ownership report and allow the surface owner 30 days in which to attempt to buy the minerals or buy a lease from the mineral owner.” (Source: “Politics in Action” / by Marshall Lochausen, CPL and President of the American Association of Professional Landmen, Landman 2, March 2009, p.2.)

Would such a solution fly in Oklahoma? Probably not. Why not? Nice idea… Good thinking… Well intentioned… in the spirit of peace and harmony… but impractical from a business standpoint.

Let’s say an oil company has hired geo-physicists, geologists, accountants, lawyers, and engineers to determine that there is a “structure” in a particular geographic area that may be able to produce a bit of oil. They pour thousands of dollars into examining the area and determine that there is interest in a particular oil-producing zone (think of the sweet raspberry filling in our metaphorical chocolate cake). While a homeowner might hire an abstract company to create or update a mineral abstract, an oil company would hire a landman to research the court records and possibly hire an oil & gas title attorney to identify the owners of the minerals and possible leaseholders. Then, especially in the case of a wildcat well or an unexplored area, the hard-working landman spends hours, days, and months tracking down heirs who may not even know they own the minerals. This could amount to thousands of dollars. Do you think the company who paid this money will want to just hand the mineral ownership report to a property owner who had the right all along to purchase the mineral rights themselves but never bothered to spend the money to do it? I don’t think so.

So, here is my advice to prospective landowners. Track down the mineral owners during the period of due diligence when you are considering the purchase of a property. If it takes longer than the traditional ten days, then write into your contract a sufficient number of days to determine whether or not the minerals can be reunited to the surface estate.

If you already own the surface of the chocolate cake and there is no one currently leasing the land under you, then by all means do your research now. Find out who owns the chocolate cake under your house. Identify the mineral owners, buy the rights back, and then lease them out yourself during the next oil boom.

So if you live in Creek County, Okmulgee County, Rogers County, Pawnee County, Okfuskee County, Wagoner County, Nowata County, Washington County, or the outlying parts of Tulsa County, then you will want to think about reuniting the mineral estate to the surface estate, especially if your land is not currently under production.

Of course, if you live in Osage County, then it will not be possible to reunite the split estate, since all the mineral rights belong to the Osage Nation.

If you live in the City of Tulsa, then the problem is a moot point, since the drilling and production of oil is not legal within the city limits (even though there is a lot of oil under the city of Tulsa).

Staging your home is a great way to prepare your home to sale and to make it look alluring to buyers in the Tulsa, Broken Arrow, Claremore Oklahoma areas. Staging your home has become popular during the last decade. Read this article to find out some great ideas on how to get your home ready for potential buyers and get it sold sooner, rather than later.

Within the first minute, people decide if they could live in your home. The problem is that there are so many homes on the market right now, that if yours doesn’t catch their eye immediately, then they have other choices. The struggling housing market is forcing people to take more drastic measures to sell their homes. Many homeowners say they need all the help they can get. With the market not being so good, there are ways you can make your house stand out. Staging your home is the way to make your house stand out in the Tulsa, Broken Arrow, Claremore Oklahoma areas.

The idea of home staging is to highlight your home’s best attributes and positively affect potential buyers. Staging your home isn’t about your own tastes. It is about making the home appealing to the general population. Whether you go at it alone or use a stager, you need to have the attitude that your home is no longer your home.

Following are some tips to consider:

• Take down family pictures. Potential buyers need to picture themselves in your home, not you!
• Staging your rooms to show off their true potential. Clear out clutter or other personal items that will distract buyers.
• Painting the walls yourself is the cheapest upgrading option you have. This will really attract buyers. Try a neutral tone.

Staging your home is a great option to make your home stand out in the Tulsa, Broken Arrow, Claremore Oklahoma areas. Let myself, Debbie Solano, your agent offer you advice about how to make your house more attractive to buyers.

The content of this blog is taken directly from the website of the National Association of Homebuilders (NAHB)

“Frequently Asked Questions About the Home Buyer Tax Credit

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

1. Who is eligible to claim the tax credit?
2. What is the definition of a first-time home buyer?
3. How is the amount of the tax credit determined?
4. Are there any income limits for claiming the tax credit?
5. What is “modified adjusted gross income”?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
9. How do I claim the tax credit? Do I need to complete a form or application?
10. What types of homes will qualify for the tax credit?
11. I read that the tax credit is “refundable.” What does that mean?
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
16. I am not a U.S. citizen. Can I claim the tax credit?
17. Is a tax credit the same as a tax deduction?
18. I bought a home in 2008. Do I qualify for this credit?
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

1. Who is eligible to claim the tax credit?
   First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
2. What is the definition of a first-time home buyer?
   The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. Are there any income limits for claiming the tax credit?
   Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. What is “modified adjusted gross income”?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
7. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
   The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous “credit” was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
9. How do I claim the tax credit? Do I need to complete a form or application?
   Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.
10. What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
11. I read that the tax credit is “refundable.” What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
    Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
    Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
    No. You can claim only one.
16. I am not a U.S. citizen. Can I claim the tax credit?
    Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
17. Is a tax credit the same as a tax deduction?
    No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

18. I bought a home in 2008. Do I qualify for this credit?
    No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

    Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
    Yes. The law allows taxpayers to choose (”elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.”

Source:  National Association of Homebuilders HAHB website

Tulsa Real Estate Values — Credit Scores Determine How Much House You Can Purchase — Why Its Time to Buy a Home in Tulsa, Bixby, Broken Arrow, or Jenks

Across the country the banks are slashing consumers’ credit scores; scores are falling most rapidly in parts of the country where there have been the most housing problems and the highest percentages of credit card debt. If you have not use your credit card you may discover that the bank has closed your inactive account. You may be informed that your credit limit has decreased.

Why does this matter? With a lower credit score, it means that the same family with the same income, the same savings, and the same spending patterns may have less buying power as time passes because the banks are lowering the FICO scores. So if you are thinking of purchasing a home, now is a better time to buy than later will be.

Higher purchasing power coupled with high inventory and our current buyers’ market mean that now is the time to purchase a house.

Why Credit Scores Matter

FICO credit scores are based on a combination of factors which include the payment history and amount owed by consumers. The FICO score can range from 300 at the low end to 850 at the high end. 300 is the worst score and 850 is the best score.

The higher your score, the better your loan rate and the lower your monthly payment.

Let’s assume, for example, that you are purchasing a home in Bixby, Broken Arrow, Jenks, Glenpool, Union, or Tulsa. The real estate listings in Tulsa are full of homes with three-car garages. So let’s say you decide that now is the time to move up to the home of your dreams. You decide to borrow $300,00 for 30 years.

With a FICO score of 760 to 850 and an APR of 4.734%, your monthly payment would be $1,562. 

With a FICO score of 700 to 759 and an APR of 4.956%, your monthly payment would be $1,602.

With a FICO score of 680 to 699 and an APR of 5.133%, your monthly payment would be $1,635.

With a FICO score of 660 to 679 and an APR of 5.347%, your monthly payment would be $1,675.

With a FICO score of 640 to 659 and an APR of 5.777%, your monthly payment would be $1,756.

With a FICO score of 620 to 639 and an APR of 6.323%, your monthly payment would be $1,861.

These source for these figures came from: Informa Research Services; Fair Isaac’s myfico.com. Of course, these payment amounts will vary from day to day and from bank to bank.

That same exact house will be more expensive for some families because they will be paying more each month on the principal and interest on their loan because they had a poorer credit score. The higher your credit score, the lower will be your monthly payment because you will be able to purchase that house at a lower interest rate.

This is why when people ask me what their monthly payments will be on a house I automatically give them the names and numbers of tried and true mortgage lenders in the Tulsa area. By referring my clients to mortgage bankers, I can then be sure that my buyers are qualified before I show them houses.  Plus, I can concentrate on my job, finding you the perfect home, negotiating a good deal, and guiding you through a smooth transaction.

How to Improve your Credit Score

There are at least eight ways you can improve your credit score:

1. Get current on your loan payments if you’ve been late in the past.
2. Pay down as much debt as possible each month.
3. Establish credit slowly; do not open a lot of new accounts at any one time.
4. Use less than one-third of the credit line available on your credit cards.
5. Do not cancel your credit card accounts; but use them so they stay active.
6. Use the credit score calculator at Credit.com and CreditKarma.com to see how account closures or limit reductions will hurt your score, and how other actions will help it.
7. Dispute mistakes on your credit reports. 
8. Get a a free credit report annually from each of the three credit bureaus at www.annualcreditreport.com.

(Source:  Fair Isaac, USA TODAY research).

Be Prepared for Spring Floods in Tulsa, Oklahoma

It’s a balmy morning in beautiful Tulsa, Oklahoma.  The wind is blowing strong from the south which means that there is a low pressure system moving in from the north, a cold front, if you will.  So enjoy the beautiful day and get ready for some severe weather tonight.  I will be so grateful to get some rain.  Our flowers already look so parched.

If you are new to Tulsa or recently purchased real estate here in Tulsa County, then you need to know a bit about how to deal with our spring torrential rains.  Many of our beautiful new homes in Bixby and new construction in Broken Arrow are situated in low-lying neighborhoods in areas which used to flood perennially.  The new flood maps have recently been revised, and so if you have any questions, you can call the U.S. Army Corps of Engineers.  Call:  (918) 669-7197.

Although the new drainage systems in Tulsa County should carry away excess rain water, it never hurts to be prepared to protect your new real estate, your personal property, your livestock, your pets, and most importantly, your family.  When you purchase real estate in Oklahoma, part of your due diligence is to investigate the flood water, storm runoff, storm sewer backup, or water drainage history of the property. 

Tulsa, Oklahoma has the most sophisticated flood control system in the world.  All the creeks have sensors which will alert you when the water starts to rise; the sirens will go off with a broken series of dashes — as opposed to the continuous siren of the tornado warnings (but that is a different blog).

We don’t really have to worry so much now that we have such wonderful flood control.  That’s why we have so many beautiful recreational lakes for boating, fishing, and swimming.  Before the lakes were built there was regular flooding throughout Northeast Oklahoma.  My friend remembers catching big fish off his front porch in Brookside after heavy rains — but that was before they built Keystone Dam in 1960.

Yet even after the lakes were built our little creeks would overflow and trap people in there homes.   Most of the 14 people who died in the Memorial Day flooding in 1984 were caught in high waters which collected at underpasses.  So don’t drive into high water!  Turn around!  Don’t drown!

So this is another one of my little soap box articles.  The following text comes directly from the insert found in this month’s utility bill.  So you can thank the March 2009 CITY Life for the following content.  (CITY Life is a community publication from the City of Tulsa.):

“With spring comes the likelihood of heavy rains and floods.  Here are some tips to help before, during and after a flood.

• First, be alert when storms approach.  Be prepared to move valuables to a higher location and to evacuate immediately, if necessary.
• Prepare a flood response plan covering all details that demand attention after a flood watch or warning is issued.  Writing it down can help you remember things that are important when everyone is in a hurry and excited because a flood is coming.  Put photocipies of inventory records, insurance policies, deeds, automobile titles, wills, telephone numbers, bank and credit card account numbers, and other valuable papers at a location away from your house, such as a safe deposit box.
• If you know a flood is comihng, you should shut off the gas and electricity and move valuable contents of your home to a safe place.  If your’re not sure how to turn off your gas and electricity, call your local utility companies.  Family safety is the most important consideration during a flood.  Waters can rise rapidly, so be prepared to evacuate before the water covers pre-arranged escape route.
• Do not drive through flooded areas.  Most flood deaths occur in cars.  Don’t drive around road barriers; roads or bridges may be washed out.  Do not walk through flowing water.  Currents can be deceptive; six inches of moving water can sweep you off your feet.  Use a pole or stick to check that the ground is still there before you enter standing water. 
• If you’re caught in the house by floodwater, move to the second floor or to the roof.  Take warm clothing, a flashlight, and portable radio with you.  Wait for help.
• Safety is an issue after the flood, too.  Before entering a building, check for structural damage and turn off outside gas lines to your meter.  Let the building air out for several minutes before entering.
• Watch for electrical shorts and live wires while turning off the main power switch.  Stay away from power lines and electrical wires.  The number-two flood killer after drowning is electrocution.  Electricity can travel through water.
• Cover broken windows and holes in the roof or walls to prevent further weather damage.  Proceed with immediate cleanup measures to reduce any health hazards.  Take pictures of items being discarded and show them to the insurance appraiser for verification.  Water for consumption should be boiled vigorously for ten minutes.  Report flooding inside a building as soon as possible to the Mayor’s Action Center at 596-2100.”

I want to add a little bit more for those who live in the country.  Check http://terraserver.microsoft.com to find your elevation contours.  Know which is high ground and which is low ground.  Think about it.  Plan ahead.  Remember your pets and your livestock before the flood waters rise.  Get all the dogs and cats into the house or the barn.  Bring all the cows and the horses to high ground so that they don’t get cut off in some far pasture that you didn’t think would ever flood.  It’s heartbreaking to see animals caught in floodwaters.  If you have any doubts about the roads and bridges, call your local sheriff’s department and ask which roads are open and navigable. 

Also, tell your kids that there are big snakes in the flood waters.  That should keep the kids fom playing in the storm drains.

Good luck and stay safe!

High-Cost Loans Are Included in Obama’s Proposed Foreclosure Prevention Plan

Homeowners with mortgages as large as $729,750 in any area, not just high-cost areas, could see their interest rate temporarily cut to as low as 2 percent under the Obama administration’s $75 billion foreclosure prevention plan.

The Obama administration unveiled details of its plan, called the Housing Affordability and Stability Plan, this week, and analysts say there are a few positive surprises.

The $729,750 mortgage limit that would apply to homes in all markets, not just in high-cost areas, is an unexpected and helpful move, says John Courson, CEO of the Mortgage Bankers Association. “It will allow us to help more borrowers,” he says.

Other details flesh out the main aspects of the plan:

* Eligibility for refinancing incentives is limited to homeowners who are underwater by no more than 5 percent.

* Financial incentives apply only to homeowners whose mortgage is a conforming loan backed either by Fannie Mae or Freddie Mac.

* Lenders participate voluntarily and can receive financial incentives for lowering borrowers’ mortgage burden to no more than 31 percent of their household income. Borrowers can get a financial incentive to participate as well.

* Borrowers who are current can participate, but they must show approaching hardship that could derail their ability to meet payments in the future.

Editor’s note: The NATIONAL ASSOCIATION OF REALTORS ® has a detailed breakdown of the provisions in the plan at REALTOR.org .

COLDWELL BANKER® NAMES GRAND-PRIZE WINNERS OF NATIONAL
“MY HOME: THE AMERICAN DREAM” CONTEST

PARSIPPANY, N.J., (Mar. 2, 2009) ––Coldwell Banker Real Estate LLC, in collaboration with Scholastic, the global children’s publishing, education and media company, today announced the three grand-prize winners in the fourth consecutive My Home: The American Dream contest. Fausto Rojas, a second-grade student from Downey, Calif., Alyssa Menko, a fourth-grade student from Kulpmont, Pa., and Emily Williams, a seventh-grade student from Vandalia, Ohio, will each be awarded $2,000 for their contest submissions. Also being recognized as the “classroom” winner for their exceptional group effort and receiving a $2,000 prize is Melissa Lanin’s first grade class from Lafayette Regional School in Franconia, N.H.; and additionally, the teachers of the three grand prize-winning students and the winning class will each receive a new digital video camera for their classrooms valued at approximately $600.

The Coldwell Banker® organization, together with Scholastic, invited students in kindergarten through eighth grade to share their personal stories– through images and words – about what makes their house a home. Over 2,000 submissions were judged on excellence in creativity, originality and overall quality. A grand prize winner was selected from each of the three grade categories (grades K-2, 3-5 and 6-8) and seven runners-up were selected from the overall participant pool. This year’s runners-up, consisting of six individual students and one classroom, will each receive a $500 prize.

“We are moved by the creativity and thoughtfulness of the students who entered this year’s My Home: The American Dream contest,” said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. “I congratulate each of our winners and runners-up and thank them for providing inspiration for all of us at Coldwell Banker as we continue to help families achieve the ‘American Dream’ of home ownership.”

“Scholastic was delighted to work with Coldwell Banker for the fourth year of this successful contest,” says Jennifer Prescott, editorial director of custom media. “The quality and variety of entries impressed our team of judges, and participating students built valuable communication skills, both visual and verbal.”

Kindergarten to Grade Two
Fausto Rojas, Second Grade, Downey, Calif.

Fausto Rojas, a 7-year-old second grader from Rio Hondo School, won for his creative drawing of his family and house accompanied by an original poem comparing a “house” to a “home.”

Grades Three to Five
Alyssa Menko, Fourth Grade, Kulpmont, Pa.

Alyssa Menko, a 9-year-old fourth grader from Mt. Carmel School, won for her personalized scrapbook submission titled, “A Celebration of Home.” The album was an impressive compilation of photos and accessories brought to life by incorporating poems and words such as “family,” “love” and “memories.”

Grades Six to Eight
Emily Williams, Seventh Grade, Vandalia, Ohio

Emily Williams, a 12-year-old seventh grader from St. Christopher School, won for her “What H.O.M.E Really Is” album collage. The collage describes how “a home is nothing tangible” by giving personal meaning to each of the letters in the word home.

Classroom
Melissa Lanin, First Grade, Franconia, N.H.

Melissa Lanin’s first grade class from Lafayette Regional School won in the “Classroom” category for its original DVD submissions. Each student wrote about what makes their house a home and provided illustrations. The essays and drawings were then brought to life in individual videos narrated by each of the children.

For more information on this year’s contest visit www.coldwellbanker.com/AmericanDream. Video of the winning entries can be viewed on the Coldwell Banker YouTube channel, http://www.youtube.com/user/cbankervideo.

Runners-Up

Name
Grade
School
City/State
Darla Erato’s Sixth Grade Class

6
St. Josephat Parish School
Milwaukee, Wis.
Cameron Ruby Kays
4
Scholls Heights Elementary
Beaverton, Ore.
Mackenzie Kework
5
Hawk Ridge Elementary
Charlotte, N.C.
Hannah Klenke
6
St. Charles Borromeo
Kettering, Ohio
George Nicholis
4
Center Street School
Williston Park, N.Y.
Austin Pippen
7
Bell Middle School
Golden, Colo.
Jayden Woodard
K
Leith Walker Elementary
Baltimore, Md.