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:
Great horse property with main house plus a Granny house. The possibilities are endless with this property. Currently there are Tenants in both homes. There is a large horse stable (holds approx. 25 horses), large riding/ training arena. Plenty of space for your RVs and gardening. This secluded property is perfect for the horse family.. Neighborhoods: North County Equipment: Dryer Other Fees: 0 Sewer: Septic Installed, Sewer Available Topography: LL Guest House Est. SQFT: 1300
Back on the market and priced to sell! Beautifully maintained 1976 Madison with 2 beds/2 baths & approx 1344' sqft. This home is MOVE-IN READY and located in one of the most desirable 55+ communities in North County. Great open floor plan with oversized living room and separate family/TV room, each bedroom has an ensuite bathroom, kitchen has plenty of cabinetry and updated appliances. Green Valley is a short 7 mi drive to the North County's beautiful beaches , very close to shopping and near hwy 78.. Neighborhoods: Green Valley MHP Complex Features: ,,,,, Equipment: Dryer, Range/Oven, Shed(s), Washer Other Fees: 852 Sewer: Sewer Connected Topography: LL
Located in the gated community of Hidden Meadows, this spacious home offers 5 bedrooms, 3 full bathrooms on a half acre lot! One bedroom, bathroom, Laundry and Office room placed on the 1st floor, 2nd floor includes Loft/Family area. Home also includes a massive Kitchen, 3 car Garage and huge backyard for entertainment. Located in San Marcos Unified School District. 10 mins from the North County Square shopping center! Priced below market value! Short sale pending with bank appraisal in mid $700k range!. Neighborhoods: Hidden Meadows Equipment: Dryer, Washer Other Fees: 0 Sewer: Sewer Connected
Nestled on the Carlsbad San Marcos border - Perched on a hilltop, our new Skyline Community ushers in crisp ocean breezes and the beauty of a place just down the road from Bressi Ranch in Carlsbad and North County Beaches. Style-savvy and elegant, this two-story 4 bedroom home with 2.5 baths has the space you need. Southwest facing and an end unit. Tons of windows and light. Perfect for starting out or downsizing. Two story traditional floorplan features gourmet kitchen including 36” gas range, farm house sink and quartz counters. This gated community is conveniently nestled on the border of San Marcos and Carlsbad and falls within San Marcos High boundaries. Pool, club room, and playground are ready for fun. Smart Home features throughout such as front door Smart lock, Smart garage door opener, front door SkyBell video doorbell, Smart thermostats, Z-Wave Smart light switch, Echo Dot, whole house Wi-Fi and more. This home is projected to be completed in November for your buyer
Fabulous 2 Bed, 2 Bath manufactured home in Santiago Estates. Highly desired community in North County! Nicely remodeled and well maintained by current owner. Light & Bright with ceiling fans in each room! Open den or home office space! New Roof in 2018, Beautiful Energy Efficient Bamboo Flooring and newer subflooring throughout! Newer oven, dishwasher, AC! Unique brick fireplace/Stove Heater in Living Room. Spacious front and back yards with fruit trees and tropicals! Newer outdoor patio carpeting! Covered patio area in backyard! Potters bench & roomy shed. Park features clubhouse & community Pool, close to 78 Freeway, Costco, Home Depot and Grocery/Shops/Restaurants close by!. Neighborhoods: Santiago Estates Equipment: Shed(s) Other Fees: 882 Sewer: Sewer Connected Topography: LL Frontage: Open Space
Desirable 55+ in Vista Del Mar – Land Owned. Light & Bright spacious 2 Bdrm 2 Bath + Den home. Large Master Suite w/ walk in closet. Cathedral Ceilings. Brick Fireplace. Freshly Painted Interior/Exterior, New Vinyl Plank Flooring & Carpet. Private Patio Yard. Low maintenance landscape w/Rose Garden, automated Sprinkler System. NEW Roof & Gutters, Fixtures & Plumbing in kitchen & bathrooms, Support Piers & Leveling under house. Additional st. parking accessible from back yard on low traffic no exit road. Vista Del Mar Complex Features: Include Pool/Spa, Clubhouse w/activities, Pickleball Courts & RV Parking. LOW $84 HOA! Equipment: Garage Door Opener, Range/Oven, Microwave, Refrigerator. Seller will provide Termite Clearance. Friendly community conveniently located near restaurants, shopping, medical facilities & beaches. Attached 2 Car Garage.. Neighborhoods: Vista Del Mar Complex Features: ,,,,, Equipment: Garage Door Opener, Range/Oven Other Fees: 0 Sewer: Sewer Connected Topography: LL
MOVE IN READY home that is in a highly desirable 55+ community. About 6 miles to the ocean and sits on a rare and spacious elevated lot. Features include recent updates to the interior paint, flooring and more! Big bright open windows provide planty of living space with its large kitchen and living room. Covered carport, wheel chair access, and a outdoor storage shed. Yard features several fruit trees and rose bushes. Community pool, spa,a nd clubhouse with easy freeway access and close to all amenities.. Neighborhoods: Green Valley Complex Features: ,,, Other Fees: 900 Sewer: Sewer Connected Topography: LL
This beautiful home with tons of natural light is ready for you to make updates and call it your own! Enjoy breezes on the large covered patio, and bbqs in the backyard. Newer dual pane vinyl low E windows, vinyl siding, copper piping, updated electrical and HVAC. Easy freeway access! Community features a pool and spa, BBQ area, clubhouse, and community events. Monthly space rent includes water, trash and sewer.
Nestled on the Carlsbad San Marcos border West facing homesite takes full advantage of coastal breeze. Our largest floorplan offers tremendous living space where everyone can gather for fun. Ground floor Jr. Master is perfect for guest room, home office or hobby space. Located just miles from the beach, your new home is a perfect base for an active lifestyle. Kitchen includes quartz counters and satin white cabinets. Breakfast nook is large enough to accommodate the dining table of your dreams. Smart Home features throughout such as front door Smart lock, Smart garage door opener, front door SkyBell video doorbell, Smart thermostats, Z-Wave Smart light switch, Echo Show/Echo Dot, whole house Wi-Fi and more. This home is projected to be completed in late September.
Turnkey Mobile, Prime location with Views to enjoy with refreshing ocean breeze. Sits on a rare and elevated lot, Very bright with New Carpet throughout, Beautiful Front Porch to relax and enjoy Peaceful nature. 55+ Community, Deck off the Master bedroom to your Private backyard, with raised garden beds to grow your own organic vegetables, and trees, Spacious 10x22 Shed with Electricity. Close to the beaches, Shopping Mall, Freeways. Community Pool, Spa, and Clubhouse, Private Covered Carport. Wood siding. Neighborhoods: Green Valley Other Fees: 0 Sewer: Sewer Connected
Perched high on the hill this stunning Spanish Influenced single level offers 3 bedrooms and a den in main house plus a detached 736 sf Bonus room/guest house with full bath! Pleasing architecture with courtyard, arches, tile porch, beamed ceilings, crown molding, shutters, an abundance of windows! Recent kitchen remodel with custom finishes and SS appliances! Lovely patios & gorgeous landscaping complete the ambiance of this home located on one acre in the gated community of Quail's Ranch! 4 car garage! Exclusive Quails Ranch! Beautiful gated community of custom homes in the convenient Shadowridge area of Vista! This Spanish architecture inspired home offers a versatile floor plan. Enter through iron gates to a lovely courtyard with a fountain! Double doors lead you into the open foyer! to the left of the foyer is the secondary bedroom wing offering two bedrooms and two baths plus laundry. Off the foyer are double doors that lead into a Den complete with built in desk and book shelves. The Living Room is a large great room that could be a Dining room and Living room combo...the focal point is the impressive fireplace! The beamed vaulted ceilings and the French doors leading to the veranda add to the ambiance or the Spanish architecture. The Remodeled kitchen is the home center and stunning! Slab quartz counters, Kitchenaide appliances including double ovens, gas cook top, warming oven, refrigerator! Beautiful views! Kitchen overlooks the Family room and a built-in Entertainment center! Off to the side of the FR is a large DR or Rec area. The master suite features corner FP, and a bath with a beautiful tile vanity and separate tub and shower. A generous walk in closet completes the bath area. The bonus room/fourth bedroom/man cave is a detached 736 SF suite with full bath. There is an area where a kitchenette could be added to make this a guest house. The grounds are breathtaking with a fantasy of color, mature trees, fruit trees, and several patio areas ideal...