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.
This project site consists of approximately 2 acres located to the south of Hacienda Drive and west of Pomelo drive in the City of Vista, California. The property consists of two(2) legal parcels. Access to the site is along Hacienda Drive. The majority of the site is currently unimproved vacant land with a stream and a non-conforming residential property. The site is currently zoned as C-2 which allows for commercial developments.
ACTIVE with a contingent offer. Back up offers are welcome. This stunning single story home sits on over 1 acre and is located in one of the most prestigious gated communities in North County, Quail Ranch. With 3187 Sq Ft of light open living space, this lovely home has been completely renovated with new flooring, a modern kitchen, and paid for Tesla Solar with battery back-up! Enjoy picking fruit from your own private orchard, while still being only 15 minutes from some of San Diego's best beaches!
Tucked away in the exclusive neighborhood of Quail Ranch is this beautiful, single story, 4 bedroom, 3.5 bath, home. Included with the 1.9 acres is a private regulation size lighted tennis court and viewing deck. The mature trees, bubbling fountains, assorted fruit trees and flowering vines welcome you to your own private resort. Each room feels large, yet welcoming, with plantation shutters, a generous use of mirrors, and real wood and stone floors. Come find yourself, in this unforgettable estate.
Clean – Quaint – Quiet – Desirable Charlemont Complex. This condo is surrounded by mature landscape with close to street access. Second level with large private balcony. Lovely sun-drenched balcony off of the kitchen. The kitchen is bright with nice appliances. Vaulted ceilings and cozy fireplace in LR. Beautiful Pergo flooring in living room and bedrooms. Bright newly painted white cabinetry and all new paint throughout.
BUILDERS DEVELOPERS PRICE REDUCED Outstanding development, new home, spec opportunity in prime 3 acre Vista, California location. City approved Rancho Mar Vista re-zone from R-1 to E-1 creating 4 half acre+ lots, including the existing 5 BR / 3.5 BA Spanish style (currently configured with 2 rental units and income producing.) Next door comps for higher end construction make this a very desirable site for prospective home owners. Each lot will also have Accessory Dwelling Unit potential. Call today!
Beautiful Home w/Spacious Living Room, Kitchen/Dining area. 2 Breakfast Bars, New Carpet and Paint thru-out. Spa Tub & Separate Shower in Master Bath. Enjoy the Spacious Private Front Porch w/nice Ocean Breeze. Clubhouse, Pool Tables, BBQs, Spa, Card Room, Full Kitchen, small Library , Banquet Room & onsite RV Parking. Great Location, close to Costco, Shopping, Dinning, Frwy and our Beautiful Beaches/Harbor. Walk to Club House, Pool, etc. Verify Sq/ft at COE
Great location at the top of park! No property taxes! Very private porch and yard w/ lemon tree. Light walls throughout. Walk in closets in both bedrooms. 2 sinks in Master Bathroom. 2 ceiling fans. 3 vehicles fit in driveway. Priced appropriately to allow for cosmetic updates needed. Conveniently located close to highway 78 & walking distance to Stater Brothers, pharmacies, Wallgreens, Walmart, Target, Petsmart, dining, & more!
Perched high on the hill this stunning Spanish Influenced single level offers 3 bedrooms and a den in main house plus a 736 sf Bonus room 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 and gorgeous landscaping complete the ambiance of this home located on one acre in the gated community of Quail's Ranch! See supplement for more details!
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. For those who enjoy culinary delights, endless dining options can be found just minutes away. When you desire local entertainment, youll find Vista is a great place to get together with friends and take in a show. For your outdoor adv
GOLF COURSE location, Welcome to this beautiful, unique and rare to find home. This beautiful home features 4 Bedrooms with 3 Bathrooms, this unique floor plan with master bedroom on 1st floor, with full bath and walk with -in closet. Wake up every morning with golf course views and a beautiful patio to start a fabulous day with beautiful scenery. New and upgraded Kitchen, new floors, new carpet upstairs, freshly painted throughout, new toilet seats and so much more to offer. Enjoy easy access to Golf Cou