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:
Vista CA 92084
$134,990
2
Beds
2
Baths
1,344
SqFt
Status
Active
MLS #
180034202
Property Type
Manufactured On Land
55 Plus with second person age 45. $301.00 Per Month for HOA Fees, includes TV, Water and Trash. 2/2 with extra TV, dining, or office area. Seller will replace new roof when you are in Escrow. This roof is no longer made in Vista. Solar Heated Community Pool and Spa, Clubhouse, Laundry, Festive Events. Sellers will replace roof when you are in Escrow. This roof is no longer installed in our area. Neighborhoods: Vista Cascade Other Fees: 0 Sewer: Sewer Connected Topography: LL Bed 2 Dimension: 12x14 Dining Room Dimen: 12x12 Family Room Dim: 12x15 Kitchen Dim: 12x16 Living Room Dim: 24x16 Master Bedroom Dim: 24x16 Guest House Est. SQFT: 0
986 Lupine Hills Drive Unit 88 Vista, CA 92081
$300,000
3
Beds
2
Baths
1,325
SqFt
Status
Active Under Contract
MLS #
170047259
Property Type
Condominium
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. Neighborhoods: Shadowridge Other Fees: 32 Sewer: Sewer Connected Topography: LL
718 Sycamore Ave Unit 20 Vista, CA 92083
$162,500
3
Beds
2
Baths
1,350
SqFt
Status
Active
MLS #
180028654
Property Type
Manufactured On Land
Beautiful newer home w/ many upgrades! Trex factory front porch. 9? ceilings & high windows. Island Kitchen w/ stainless steel appliances, under cabinet lights, & extra pantry cabinets. Solar tube. Lever door handles. Walk in closets. Extra storage cabinets in Master Bathroom & Kitchen convey. Recently installed retaining wall, concrete patio, 2nd storage shed, low rise steps to back yard, & privacy lattice on carport. Orange tree & cherimoya tree plus raised gardening area. Walk to nearby shops, Rx, etc. Neighborhoods: Grandview Terrace Complex Features: ,,, Equipment: Dryer, Range/Oven, Washer Other Fees: 0 Sewer: Sewer Connected Topography: LL Bed 2 Dimension: 13x10 Bed 3 Dimension: 13x10 Dining Room Dimen: 13x8 Extra Room 1 Dim: 8x6 Family Room Dim: 0 Kitchen Dim: 13x10 Living Room Dim: 20x13 Master Bedroom Dim: 13x13
1330 Krug Ct. Vista, CA 92081
$600,000
4
Beds
2.5
Baths
2,192
SqFt
Status
Active
MLS #
180029110
Property Type
Single Family Residence
An opportunity to live in Brock Manor, a stately development in the Shadowridge community. Master bedroom downstairs. This home is located on an interior corner of a cul-de-sac, it does not back up to a busy street. Vaulted ceilings. Partially curved staircase with wood banister. Separate tub and shower in the master bath. Newer refrigerator. New Water Heater! Brick Fireplace in family room. Private backyard with patio, overhang, fruit trees. Neighborhoods: Shadowridge Equipment: Range/Oven Other Fees: 0 Sewer: Sewer Connected Topography: LL
771 Las Palmas Dr Vista, CA 92081
$569,999
3
Beds
2
Baths
1,616
SqFt
Status
Active
MLS #
180035447
Property Type
Single Family Residence
A view is priceless! Recently updated, 3BR, 2BA, single story Vista home featuring custom fireplace, open concept floor plan, custom paint, new flooring, updated landscaping & a new patio cover. Two car attached garage. Light & bright. Awesome views and a fenced yard. Move-in Ready. Close to shopping and freeways. No HOA?s. Walking distance to a local elementary school. Sellers will entertainers from $529999-$569999 Neighborhoods: Vista Equipment: Garage Door Opener, Range/Oven Other Fees: 0 Sewer: Sewer Connected, Public Sewer Topography: GSL Bed 2 Dimension: 12x10 Bed 3 Dimension: 13x10 Breakfast Area Dim: 14x12 Dining Room Dimen: 10x10 Family Room Dim: 0 Kitchen Dim: 10x12 Living Room Dim: 23x12 Master Bedroom Dim: 12x16
1613 Magnolia Circle Vista, CA 92081
$600,000
4
Beds
2.5
Baths
2,150
SqFt
Status
Active Under Contract
MLS #
PW18154859
Property Type
Single Family Residence
Beautiful View Home on Cul-de-Sac in Gated Community- 4 Bedroom, 2 1/2 Bath Two Story -Moncado Springs Gated Community. This Highly Upgraded Home features Living Room w/ Special lighting & Wood Shutters. New Air Conditioner recently installed w/ Nest System. Open concept Dining Room, Kitchen, Family Room area w/ Wood Shutters on all windows. Beautiful Kitchen has Custom Pendant lighting over Large Island w/ Granite Counters, Tile Floors & Walk in Pantry. 1/2 Guest Bathroom is located between the Living Room and Dining Room. Direct Access on the First Floor to the Large Two Car Garage with Custom Floor Lining. Family Room has Custom Lighting, Fireplace and Direct Door that leads out to Backyard. Upstairs the Master Bedroom features Custom Built in TV Cabinet with Dresser Drawers, Wood Shutters and attached Master Bathroom with Dual Sinks, Separate Bathtub and Shower, and Walk in Closet. Three additional bedrooms are upstairs w/ Two bedrooms on Separate Hallway w/ Full Bath Tub/Shower combo -two sinks. Washer & Dryer is located upstairs w/ cabinets and counter. Backyard has Beautiful View with Custom flagstone walkways, Patio Cover, Lemon Tree and Beautiful Landscaping w/ New Installed Sod Grass Area great for Entertaining & Children's Play Area. H.O.A. includes Community Center, Pool, Playground, Walking Trails, Security Gates & Beautiful Landscaping on every Street. Plenty of Parking in Community. Close access to Shopping, Freeways and Community Areas.
1781 Countryside Dr. Vista, CA 92081
$598,800
3
Beds
2.5
Baths
1,749
SqFt
Status
Active
MLS #
180037462
Property Type
Single Family Residence
Spectacular Falcon Hill Home in Shadow Ridge. Nov. appraisal of $620,000 BEFORE recent upgrades. Perfect artificial lawn never needs watering/mowing. Granite counter tops throughout home. Wood floors, vaulted ceilings and new windows give the home a very bright and airy feel. Excellent location: By schools, shopping, Shadowridge Country Club. Also easy access to 78, I-5, and I-15. No Mello-Roos. Low HOA. SOLAR-- attached options. Agent and Buyer to verify all information prior to closing. Neighborhoods: Falcon Hill Equipment: Dryer,Garage Door Opener, Range/Oven, Washer Other Fees: 0 Sewer: Sewer Connected Topography: LL Bed 2 Dimension: 10x15 Bed 3 Dimension: 10x12 Dining Room Dimen: 9x10 Family Room Dim: 13x17 Kitchen Dim: 10x13 Living Room Dim: 17x18 Master Bedroom Dim: 15x17
1120 Brioso Court Vista, CA 92081
$579,000
3
Beds
2.5
Baths
1,835
SqFt
Status
Active
MLS #
SW18163913
Property Type
Single Family Residence
Back on the market. Beautiful two story home in desired ShadowRidge Community. This home shows pride of ownership with modern upgrades and sits on an elevated lot to to provide the feel of having no rear neighbors. Covered patio to enjoy the outdoors and open floor plan to entertain friends and family. Manicured landscaping all around with gated dog run on side yard for your pets. This home has a community pool at the end of the street that makes it extremely convenient to cool off in the summer. Custom paint throughout and Epoxy Floors in the garage. Bring your offers seller will entertain paint credit.
825 Arbor Glen Lane Vista, CA 92081
$665,000
3
Beds
2.5
Baths
2,693
SqFt
Status
Active
MLS #
180038284
Property Type
Single Family Residence
Gorgeous home in a quaint neighborhood of Vista. This home features bright natural light, hardwood floors, an extra large loft which could be separated in half for a 4th bedroom, and a spacious backyard with a fire pit and no one behind you. The family room is open to the kitchen with a large island and granite counter tops, perfect for easy cooking, entertaining and family gatherings. Serene walking trails nearby, easy access to HWY 78 and No Mello Roos. Neighborhoods: Amberwoods Complex Features: , Equipment: Range/Oven Other Fees: 0 Sewer: Sewer Available,Sewer Connected,Public Sewer Topography: LL
859 Sycamore Ave Vista, CA 92081
$599,000
5
Beds
4
Baths
2,362
SqFt
Status
Active
MLS #
180038764
Property Type
Single Family Residence
The house needs TLC, and it is located in a very nice area of Vista! Over 0.5 acre lot! This single family home has 5 bedrooms, 4 baths, 2-car garage, with laundry area, fireplace, living & family rooms. Great location, close to Highway 78 access, Parks, Schools, Shopping, and much more. Accepting back-up offers. Neighborhoods: Sycamore Other Fees: 0 Sewer: Sewer Connected Topography: LL Bed 2 Dimension: 15x14 Bed 3 Dimension: 15x12 Bed 4 Dimension: 15x15 Bed 5 Dimension: 15x15 Dining Room Dimen: 15x12 Family Room Dim: 15x15 Kitchen Dim: 15x12 Living Room Dim: 15x15 Master Bedroom Dim: 20x20
718 Sycamore Unit 145 Vista, CA 92083
$100,000
2
Beds
2
Baths
1,040
SqFt
Status
Active
MLS #
180039935
Property Type
Manufactured On Land
Updated 2 bedroom - 2 bath mobile home with a wonderful outside yard that includes a gorgeous covered side porch, brick patio with wood trellis cover and a nice size fenced garden area perfect for a pet or a amazing place to relax! Some of the numerous upgrades done in the last 2-3 years include: dual pane windows and slider, re-sealed roof, wood laminate flooring, interior and exterior painting, curtains and the amazing outdoor space. There are also 2 sheds on the property for lots of extra storage. Neighborhoods: Grand View Terrace Complex Features: ,, Equipment: Dryer, Shed(s), Washer Other Fees: 798.6 Sewer: Sewer Connected Topography: LL Bed 2 Dimension: 9x11 Dining Room Dimen: 9x10 Family Room Dim: N/A Kitchen Dim: 9x12 Living Room Dim: 14x19 Master Bedroom Dim: 11x12
2140 Redwood Vista, CA 92081
$599,900
3
Beds
2.5
Baths
1,665
SqFt
Status
Active Under Contract
MLS #
OC18173199
Property Type
Single Family Residence
Stunning 2 Story Ocean View Home is tastefully upgraded throughout in highly desirable Sea Vista tract in Shadowridge. Impressive interior with expansive ceilings, light and bright open floor plan. New wood like flooring in living room & kitchen, granite counters in kitchen and all 3 bathrooms, tumbled stone tile floors in bathrooms. Kitchen has all new appliances: range, overhead microwave, dishwasher, Delta faucet, and garbage disposal. Fireplace in living room and designer electric heater Fireplace with dark wood mantle in kitchen. Large Master bedroom offers distant panoramic unobstructed ocean view as property backs up to a preserve. Master bedroom has spacious walk in closet. Low Association fee of $75 per month includes Pool and Spa located in Rancho Montecito gated community and maintenance of the common areas. Conveniently located near schools, parks, shopping restaurants, walking trails.