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.
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.
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.
**HUGE PRICE REDUCTION** 1697 Marbella Dr, Vista, CA is a single family home that contains 1,685 sq ft and 6003 sq ft lot, was built in 1989. It contains 3 bedrooms and 2.5 bathrooms. Located in highly desired Portico, at Shadowridge community. Walking distance to Rancho Buena Vista High School. This home is in a prime location with Legoland (15 minute drive), Carlsbad Premium Outlets (20 minute drive), San Diego Zoo Safari Park (25 minute drive), and 40 minutes from SeaWorld San Diego and the San Diego Z
Well Maintained home in Green Valley 55+ community. Space rent $815.50/mo includes trash, sewer & water. Beautiful community with pool, spa & more, close to 78 & shopping! Clean carpet, large living room & family room. Trex porch off the master bedroom. Vinyl fence enclosed part of yard, great for one small pet under 20lbs. Spouse must be 45 or older. Park does not allow rentals. This home feels clean and comes with a stacked washer/dryer, refrigerator and microwave. Lots of light! Great lot in the park!
Charming country home with guest house on usable .58 acres. Located on private cul de sac. Main home is 2,436 esf., 3 bdrms, 2 baths, large living & family room, 2 fireplaces, built in cabinetry & skylights. Plus, 345 sq. ft. permitted sun room with neutral tile. Remodeled kitchen with granite counter tops, stainless appliances. Vinyl windows & doors, energy efficient heat pump & central air. Detached guest house is 576 esf., 1 bedroom, bath, living room & kitchen.
Beautiful Brand New 3 Bed 2 Bath Move-In Ready in a 55+ Community. Home Features Wood-like floors, Skylight in Kitchen, Appliances in Kitchen and island, Lyno in Kitchen and Bathrooms and Carpet throughout. Master Offers Walk-in Closet, His/Her Sinks and Storage. Off the Kitchen is a Large Utility Room with Hanging and Storage. Large covered porch and Beautifully Landscaped Front Area! Great financing for any situation. HURRY! Won't Last!
WELCOME TO VISTA DEL MAR 55+ COMMUNITY. THIS IS A GREAT OPPORTUNITY TO OWN YOUR OWN HOME IN THIS WONDERFUL COMPLEX. LARGE OPEN LIVING ROOM WITH GREAT LIGHTING, WHICH OPENS TO THE DINING ROOM W/ BUILT IN HUTCH. OFF THE KITCHEN IS NOOK AND DEN. MASTER BEDROOM W/WALK IN CLOSET AND SMALL OFFICE SPACE. OTHER FEATURES INCLUDE, INDOOR LAUNDRY, ENCLOSED PATIO, LOTS OF STORAGE, NEWER WINDOWS, CENTRAL AIR AND HEAT, TWO CAR ATTACHED GARAGE. NICE BACKYARD AND PATIO AREA. COOL BREEZES, WALKING DISTANCE TO CLUBHOUSE.
A well-maintained 1975 Mobile Home, 1440 SF, with 2-Bedrooms & 2-Full Baths offers newer: Interior paint, decorative light switches and outlets, laminated floor & tiles on entry and bathrooms with wide moldings throughout, new bathtub faucet & lots of upgrades, large patio with entries on both sides, back-side yard for family entertainment with luscious green hillside on the back, only 5-7 miles from Pacific Ocean and close to Costco, many shopping centers and Hwy 78 & Interstate 5.
With Views overlooking the pool and a park like setting, this Exquisite Luxurious Contemporary Townhome built by Lennar Homes- where Everything Is Included is a must see! 2 car attached garage, solar, tankless water heater, all appliances included, WIFI certified with heat mapping, integrated home automation throughout, technology voice-controlled by Amazon Alexa. Largest floorplan Pool/Park View corner Homesite!
Wonderful Private Home in Green Valley of Vista. Home Features: New Carpet in the Living and Master Bedroom, Newer Kitchen, Two Outdoor Porches, Extra Room of the Living Room, Storage Shed, Appliances Convey, Wet Bar, and much more! Close to everything! Turn-Key and Ready to Go!
Highly desirable Charlemont rare 3 Bedroom end unit! You will love this serene setting with a bright open floor plan. This home features cathedral ceilings, large private patio, cozy fireplace, full size washer & dryer, walk-in master closet and double sinks. Lots of storage, central A/C, plus over-sized two-car garage with private entrance thru patio. Complex includes 2 pools, 2 Jacuzzis and clubhouse. Close to shopping, Saturday Farmers market, Restaurants, Costco, banks, 78 freeway and schools.