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:
SHORT SALE! Rare 3BR single level ground floor unit is located in the Shadowridge Glen. 3bed, 2 bath with a patio approx 9x22 is the perfect starter home that just needs a little TLC and some updating. Includes a detached 1 car garage. Great location and conveniently close to shopping, schools, restaurants and freeway 78 access.
Located in Vista, this unique two-story home boasts four bedrooms including a first-floor dual-master suite, three and one half bathrooms, a large bonus room with a wet bar including a sink and wine chiller, and 3-bay tandem garage. The gourmet kitchen showcases stylish granite countertops, stainless-steel GEÂ® appliances including refrigerator, an island with a sink and eating bar, and beautiful cabinetry with soft-close hinges. Also included RuckusÂ® Wi-Fi access points throughout the home. See Supplement
COUNTRY CLUB LIVING - Ground floor unit in the Shadowridge Aspens! Open layout. The living room has a large sliding glass door that leads out to an over sized patio. Granite counters, white appliances (fridge Included). The bathroom has traverntine counter top. This home features a stackable washer/dryer conveniently located inside the unit, in laundry room. The master bedroom has a walk in closet. This unit also has a large den with double glass french doors that could work as a second bedroom.
$499,000 - $515,000. Delightful home located in the highly desirable neighborhood of Hacienda Heights! Light and bright open floor plan features formal dining & family room with brick fireplace open to the kitchen. Large master bedroom with dual walk-in closets, large soaking tub and dual vanity. Three additional bedrooms located on the second floor and an optional bedroom/office on entry level. Cozy private patio and low maintenance landscaping. Very low HOA includes park, playground and RV storage.
Welcome to Vista Del Mar, a senior Community with HOA fees of $60.00 Monthly and includes, Club House Pool Sauna Spa Tennis & RV Parking. This immaculate upgraded home boasts an open concept floor plan with a modern flare & very nice views from the patio. Improvements: Driveway Double pain Windows Canned lights LED throughtout New Appliances Quartz counters and much more. This corner lot home sits up high with mountain views & ocean breezes close to guest parking. You will be pleasantly surprised.
Sellers will entertain offers between $699,000 to $750,000. This well cared for single story home is located on a quiet Cul-de-sac in a small enclave of homes in Vista. A spacious & inviting home with neutral paint schemes, Plantation shutters and wood flooring, vaulted ceilings, open floor plan and a combo family room/kitchen area. Bedrooms are big & bright. The master bedroom is large and an en-suite bath with dual vanity sinks, shower stall/tub & a large walk-in closet. See supp below for more info.
Remodeled home w/ NO property taxes! All new Kitchen! Updated Bathrooms! New floors! Double sinks & walk in closet in Master. Very private porch & patio. Slider from Master to yard & patio. Exterior offers a raised planter box, decks, 2 sheds, handicap ramp & more. Located across from guest parking, clubhouse, pool, spa & other amenities. Walk to near by Stater Brother grocery store, pharmacies, CVS, Target, Walmart, Petsmart petstore & vet, dining, & more! Space rent is $873.41.
Price Reduced! Seller Motivated!Rarely available top floor 2 Bedroom Townhome with private attached deck. This home features cathedral ceilings, ceiling fans, laminate wood flooring, fireplace, laundry closet with full size washer/dryer (included), 1 car garage and an open living concept. The common areas are beautifully maintained and pet friendly. Buy now and enjoy your summer by the pool in this well kept Breeze Hill Community!
PRESTIGIOUS CARRIAGE HILLS AREA. SOUTH OF 78. COUNTRY FEEL TO THIS COMMUNITY! THIS IS A MUST SEE HOME AND PROPERTY! IMMACULATE INTERIOR AND EXTERIOR. THE BACK YARD IS FULLY HARD SCAPED AND LANDSCAPED TO THE MAX. PRIVATE BACK YARD!! NEUTRAL COLORS THROUGHOUT. QUIET NEIGHBORHOOD. ONLY A FEW NEIGHBORS ON CUL-DE-SAC. RARE GEM INDEED. SINGLE STORY WITH 2400 SF AND ON A NEARLY 14,000 SF LOT? MATURE TREES AND LANDSCAPING THROUGHOUT THE COMMUNITY! QUIET! OFFICE ADDED IN THE FAMILY ROOM!!
This Vista gem has been beautifully maintained with upgraded engineered hardwood flooring in family room, stairs and 2nd story. Granite countertops/island in kitchen. Office nook. Well thought out eco friendly landscaping in front and back to keep costs and maintenance low. Oversized master bedroom with large walk in closet. His/ Her sinks in master bath. Jack-n-Jill bathroom off second and third bedrooms. Upstairs laundry room. Large two car garage! Top rated San Marcos school district.