Redlining is a term that describes the unethical if not illegal practice where lenders red line a neighborhood or community, making it very difficult for buyers to purchase in these afflicted areas.
I have recently heard from a couple of direct lenders, Countrywide Home Loans and Bank of America, that most if not all of San Diego County real estate is in the red zone.
Qualifying for current red zone status simply means that the subject property is located in a declining market area. The impact of this colorization is significant to both the San Diego real estate market as a whole and to first time home buyers in particular.
How this version of redlining works creates a no-win situation for buyers putting down less than 5 percent.
Even if a buyer has negotiated a bargain purchase price, say 10 percent under market value, the appraiser will automatically deduct another 5 percent from the contract price to determine a value. In other words, a borrower cannot get away with putting less than 5 percent down.
I spoke with Brian Brady a couple of weeks ago about this matter. I had been told by a representative from a large direct lender that San Marcos, CA was in a red zone, and would be subject to different lending standards. Brian bristled at the thought of redlining, declaring it an illegal practice unless an entire region were painted red.
Well, it seems that most, if not all of San Diego County real estate, is swimming in blood.
One of our agents is struggling with a couple seeking to buy their first home in the Shadowridge area of Vista, CA. The buyer is an automobile service manager in nearby Carlsbad and his wife is an attorney. They are conservative in lifestyle, and can afford payments on a $417,000 home. However, they are short on down payment. And with current lending guidelines and the unavoidable prospect of buying in a red zone, they can no longer qualify for the 100 percent loan Countrywide Home Loans had promised.
And what makes this particular case so interesting is that the home is a foreclosure held by Countrywide as an REO (real estate owned). Any reasonable person would think that Countrywide Home Loans would jump through hoops to get this liability off their books especially with buyers like these.
Wouldn’t reasonable minds agree?
Listed below are all current listings of homes for sale in Shadowridge area of Vista:
Calling all developers Investors are you looking for a high traffic location close to freeway access & shops? This property is zoned C-2! Excellent corner lot with great visibility and tons of potential just south of the 78 freeway in the up and coming town of Vista! The lot contains two APN #s totaling to just over 2 Acres. Visit city website or office to verify property use, topography, zoning, and characteristics.
BACK ON THE MARKET. Pending cancellation of current contract. Highly sought after Sea Vista home in Shadowridge. Hugh curb appeal This home is move-in ready with new paint throughout and immaculate. Large living room with vaulted ceilings, open to the second floor. 2nd story loft, perfect for an office or bonus room. Very bright open kitchen. The amazing master suite also has vaulted ceilings and a view of the ocean. Community pool, spa and clubhouse. Close to all schools, shopping and freeways. Low taxes
This townhome has a smart layout with a convenient downstairs bedroom with walk-in closet and full-sized bathroom, along with the two-bay garage on the first floor. Upstairs is the main living area on the second level, which showcases an open layout among the gourmet kitchen and great room which leads onto a balcony. At the top level are two more bedrooms, including the spacious master suite, each of which enjoys an en-suite bathroom and walk-in closet. Beautiful upgraded flooring- pool View!
Back into market due to contingency failure. A beautiful house located in a pretty, quiet, scenic gated community. The 4 bedroom, 3 bath 2 story house is newly painted. Tile and carpet floor downstairs and carpet upstairs. House is maintained in excellent condition. Upstairs has 4 bedrooms and a laundry room. Lots of closet space. Master bedroom has a walk in closet. Recessed lighting through out the house. Double Pane windows. Water filter for the whole house in the garage. Newly installed central air co
A great place to retire in Vista Del Mar! Where you own the land, this is a corner lot with an ocean view on a clear day. This home is kept up meticulously and it shows pride of ownership. Turn key ready, newly painted and new laminate flooring throughout home. Fairly new A/C and tankless water heater (2012) Third bedroom addition has sitting area that can be used for multi-generational living with private entrance and additional parking space. 55+ Senior community RV Parking included in HOA fee
Nestled in the prestiguous Quail Ranch community, this elegantly appointed single story estate features roughly 3,200 sqft of open living space. Welcome home to your own private resort-like oasis, perfect for hosting parties or intimate family dinners. Some of the many recent upgrades include a Tesla Solar system with battery back up, new flooring throughout and a completely renovated kitchen. Thoughtfully laid out floor plan with a private and secluded master bedroom. Enjoy country living yet city close! Neighborhoods: Quail Ranch Equipment: Garage Door Opener, Water Filtration Other Fees: 0 Sewer: Sewer Connected Topography: GSL
A TOUCH OF CLASS...AS YOU ENTER THIS GORGEOUS 3 Bed, (2)up, (1) Down, 3 Bath TOWN/HOME. GRAND VAULTED ENTRY INTO A LARGE VAULTED LIVING ROOM WITH A COZY FIRE PLACE, ACCESS TO LARGE PRIVATE PATIO FROM LV & DINNING RM. PATIO LEADS YOU TO A PRIVATE...2 CAR GARAGE WHICH ALLOWS YOU SAFE/SECURE PRIVATE ENTRY INTO THE UNIT. UPGRADED THROUGHOUT THIS SPACIOUS 1,336 SQFT UNIT. NEW EVERYTHING, REMODELED KITCHEN / BATHROOMS, NEW FLOORS, NEW CARPET, NEW PAINT. BEST LOOKING UNIT IN THE COMPLEX.
Simply stunning and made for the most persnickety buyers! Gorgeous kitchen dressed with quartz counters, professional grade appliances including fridge and farmhouse apron sink. Raised panel, Thermafoil cabinets throughout. High ceilings both upstairs and down with generous loft and open rail stair case. Full laundry room with brand new washer/ dryer included. Window coverings too! Located on West San Marcos Blvd, enjoy living in the middle of it all. Two miles to Bressi Ranch, short drive to beach and co
Any Age community w/ amenities, conveniently located near Costco, TriCity Medical, Carlsbad Mall & movie theater, beaches, highways 78 + 5, & more! 3 bedroom split floor plan with open concept Kitchen & Living area. Remodeled Kitchen & Bathrooms. Vaulted ceiling & modern feel throughout. Skylight in Kitchen provides natural light. Walk in closet in Master Suite. 2 storage sheds outside. Located across from guest parking.
BRAND NEW CARPET JUST INSTALLED HOME SHOWS VERY WELL. 2 BED ROOM 2 BATH HOME IN DESIRABLE GREEN VALLEY ADULT COMMUNITY. LARGE COVERED DECK AT FRONT DOOR WITH RAMP FOR EASY ACCESS. EXCEPTIONALY BIG YARD HAS FRUIT TREES.
Amazing Investor / Builder Opportunity for new construction / spec homes in the heart of Vista. This large lot property is one of a kind. With an APPROVED Tentative Map to split this 2.97 Acre parcel into four separate lots. The current property has been reconfigured to a duplex which is currently producing rental income. Consisting of 5 Bedrooms and 3.5 Bathrooms total. Front unit is a 2 bedroom â€“ 1.5 Bathroom â€“ Bedrooms with Jack in Jill bathroom upstairs, main living and kitchen downstairs with a h
Experience a wealth of opportunities that can lead to a lifetime of memories for you and your family at Verano at Skyline, a flourishing new community in Vista. You can enjoy nearly perfect year-round weather as you explore the Southern California beaches less than 10 miles away. For those who enjoy culinary delights, endless dining options can be found just minutes away. When you desire local entertainment, youâ€™ll find Vista is a great place to get together with friends and take in a show. For your out