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:
WOW, JUST WOW! This property is special from the moment you walk on the premises. If you are looking for horse ranch property with plenty of space around you this is it. There are 2 houses on the property, one is not permitted but in use by family members (3 Bed,2 baths). The other is permitted (2 Bed,2 baths). The horse stable holds approx. 20 horses, all in separate stalls. The office and tack rooms are also part of the stable. There is one HUGE riding arena, and more. Call Mia Worley 760.688.9077 Neighborhoods: Rancho Mar Vista Equipment: Shed(s) Other Fees: 0 Sewer: Septic Installed Topography: LL, Guest House Est. SQFT: 1800
Beautiful community in Shadowridge neighborhood, 4 bedrooms 2.5 baths, private patio, sliding glass doors, vaulted ceilings. Swimming pool and spa, close to shopping centers, schools, churches, golf course and easy access to Hwy 78
Up and coming town of Vista just S of the 78 on corner lot. The property consists of a 2bd, 1 bth detached home built in 1950 with a total square footage of 656 sq ft. The lot contains two APN #s totaling to just over 2 Acres. Are you looking for the convenience close to freeway access & shops? Calling all developers/investors this property is zoned C-2. Visit city website to verify property use, zoning, and characteristics.
Great location with no rear neighbors. Separate Living & Family rooms! The Kitchen was previously updated. Wet bar. Most walls have been painted white. New carpet in Living & Master Bedroom. Double sinks, tub, & step in shower in Master. Two outdoor porches (Front & Back) + enclosed porch. The Back porch is shaded by an avocado tree & feels very peaceful & private. Extra wide carport w/ curved supports. Convenient location close to Costco, TriCity Medical, Carlsbad Mall & movie theater, Beaches, & more!
Don’t miss this move in ready ground floor unit in the highly desired Shadowridge Aspens Community! This recently painted 1-bedroom, 1-bath spacious unit features laminate flooring, updated bathroom, in-unit laundry, private patio and 1 car detached garage. The complex is well maintained and offers a pool, spa and clubhouse. Great location in Shadowridge near parks, walking trails, shopping & easy access to HWY 78.
Beautifully maintained 1973 Cascade with 2 beds/2 baths and approx. 1152' sqft. Roomy living room plus den/office area. Bright kitchen with range top and separate wall oven, & laminate flooring. Laundry area with washer/dryer. Great corner lot with low-maintenance landscaping & large covered patio. Green Valley is close to highways & shopping yet maintains a quiet & peaceful atmosphere. Regular events at the clubhouse such as social events, BBQ's etc., heated pool, spa, billiards, library and more!
Generous Lot size! 2 Bedroom 2 Bath Mobile Home built in 1970 that has had the interior walls completely redone.New Roof, New insulation throughout, drywall throughout the home. Laminate flooring throughout. Newer Slider added to second bedroom leading out to deck which takes you to backyard. Master Bedroom Has a remodeled shower which is handicapped accessible. Newer vanity, toilet & window added to Master. French doors from Master Bedroom lead out to California Room which has been insulated & permitted.
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 and 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 stacked washer/dryer, refrigerator and microwave. Lots of light! Great lot in the park!
Charming townhome in Charlemont features a bedroom and full bathroom on the first floor. Granite kitchen counters, tile and laminate throughout. Master and 3rd bedroom upstairs with their own bathrooms. Large private courtyard leads to the two car garage. Community club house, two pools, two spas recently refinished and new lounge chairs. HOA covers water, sewer, and trash. Minutes from Calavera Lake and nature preserve. Conveniently located off Melrose, just south of Hwy 78.
Welcome to Vista Del Mar a Senior Community with low fees of $70.00 month. This lovely home is upgraded and boasts a two car garage new paint flooring fixtures appliances & new foundation. Nice patio and yard with roses an orange apple trees and a little view. You own the land in this community and you pay your utilities as well.
Wonderful neighborhood in Shadowridge. Backs to Shadowridge golf course & end of cul-de-sac location. Large spacious patio. Home has been refurbished with new kitchen, granite counters, new appliances & new cabinets, fresh paint & wide base, new electrical & ceiling fans. Spacious kitchen with breakfast area. Recessed lighting in kitchen & baths. Mirror closet doors in both bedrooms. Centrally located to shopping, walking trails & golf course. Wonderful place to call home.
