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.
Located in the gated community of Hidden Meadows, this spacious home offers 5 bedrooms, 3 full bathrooms on a half acre lot! One bedroom, bathroom, Laundry and Office room placed on the 1st floor, 2nd floor includes Loft/Family area. Home also includes a massive Kitchen, 3 car Garage and huge backyard for entertainment. Located in San Marcos Unified School District. 10 mins from the North County Square shopping center! Priced below market value! Short sale pending with bank appraisal in mid $700k range!. Neighborhoods: Hidden Meadows Equipment: Dryer, Washer Other Fees: 0 Sewer: Sewer Connected
Beautiful new 3 Bedroom, 2 Bathroom Home in Grandview Terrace a 55/35 park. Home features vinyl and carpet throughout, stunning wood cabinets, new refrigerator, stove, range and dishwasher. Separate enclosed large utility room with washer/dryer hookups. Spacious living area perfect for entertaining. Perfectly designed split floor plan allowing master on opposite side from bedrooms 1 and 2. Grandview Mobile Home Park Community includes Clubhouse/Recreation Room, Pool, RV/Boat Parking, Spa/Hot Tub. Near Restaurants, Stores, Minutes to Beach, Garden Parks and more.
MOVE IN READY home that is in a highly desirable 55+ community. About 6 miles to the ocean and sits on a rare and spacious elevated lot. Features include recent updates to the interior paint, flooring and more! Big bright open windows provide planty of living space with its large kitchen and living room. Covered carport, wheel chair access, and a outdoor storage shed. Yard features several fruit trees and rose bushes. Community pool, spa,a nd clubhouse with easy freeway access and close to all amenities. Complex Features: ,,, Other Fees: 900 Sewer: Sewer Connected Topography: LL
This delightful home in a 55+ park has been cared for and upgraded for comfortable living. Seller will add a BRAND NEW CENTRAL AIR UNIT with accepted offer. Large living room and dining area with hutch. Circular kitchen with breakfast bar. Spacious family room with Solatube. Light and bright home with custom painted walls, upgraded interior doors including stylish glass closet doors in master. Master also has a classy Casablanca fan with remote plus bath has awesome walk-in shower with bench seat. Insulated added sunroom with laminate flooring.Private fenced yard + Two storage sheds [Supplement]: New 30 year roof installed 6 years ago. Forced air heater approx. 7 years old. Newer garbage disposal and kitchen faucet. Newer carpet and dual pane windows in the master bedroom. Second bedroom has mirrored closet doors and ceiling fan. Washer/Dryer and Fridge included. Outdoor sensor lights installed. Irrigation installed to beautiful rose garden located in front of the home. Water spigots installed for easier landscape care. Quality backyard fencing never needs paint. California Room was rebuilt with new leveling struts underneath, real windows with tinting and insulation on the roof. Front and back porches to enjoy delightful breezes. Community clubhouse and pool. Located just minutes to the beach, shopping and freeways.
Welcome to the magical Hope Ranch. This sprawling hilltop property consists of one newer main house and three additional cottages perfect for a family compound, income properties, potential rehab/assisted living facility farmland or anything you can imagine. The main house, with 4 bedrooms, 3 bathrooms and roughly 2400 square feet, was constructed in 2014 in the center of the surrounding out-buildings. [Supplement]: The cottages are filled with an abundance of beauty and character you must see to believe. Potential uses for this property include: horse ranch and equestrian estate, farming including avocado, tropical fruit trees or planting your own orchard while having locations for your farmhands to stay on the property! Step outside and within minutes you are in Downtown Vista Village to experience some of the best shopping, family fun and dining experiences in North County. Highway 78 is conveniently located less than a minute away from the home offering easy access to San Diego and Los Angeles. Some things cannot be put into words, you must come see it for yourself, come view and make this your home today!
Great Opportunity! Affordable and only a few miles to the Beach with shopping nearby in Beautiful Vista, California! Located in a private setting with a huge deck adjacent to the master bedroom this home has incredible potential with your own personal updates. Space rent is Only 815.50/month includes trash, sewer & water.Pets under 20lbs welcome. Stacked washer/dryer, refrigerator included.This home is bigger than most in the complex with over 1400 sq feet with an open floor plan and large kitchen. Complex Features: , Other Fees: 815 Sewer: Public Sewer Topography: GSL
Single Story home located in Vista Del Mar senior community, has a recorded 433A. This home is in move-in condition with 2 bedrooms, 2 baths and brand new carpet. Comes with a refrigerator, washer and dryer. Home has A/C, covered rear patio deck adds pleasant outdoor relaxing or dining experience. Open, bright floor plan with vaulted ceilings. Bathrooms have upgrades & newer windows in master bedroom. This 55+ community has a large pool, spa, clubhouse, tennis courts, RV parking, game & gym rooms, pool tables, card room, low HOA fees! Bring your VA, FHA, Conventional and of course your cash buyers!
One bedroom and full bath in downstairs. Highly upgraded 4 bedroom home with no HOA. The amenities include complete interior paint, new appliances, 3 car garage w/massive custom cabinets, extensive stone flooring, hard wood flooring, rich custom wood details, new bathroom vanities and fixtures, ceiling fans throughout, AC, recessed lighting, spacious covered patio, new landscaping including an impressive slope design with water feature.
Downsizing? Looking for a Second or Vacation Home? Well cared for 2 Bedroom in Desirable Grandview Terrace Mobile Estates Park! Great North San Diego 'Climate Wonderland'! Spacious Corner Lot With Fruit Trees (Orange & Pomegranate) & Room to Garden! Owner Has Recently done some Upgrading - Some Front Windows replaced - Newer Laminate Wood Floors - Newer Stove - Newer Hot Water Heater - Roof Sealed - Leveled & has 2 Earthquake Bracing systems. Square Footage does not include Light & Bright 21 X 8 California Room for Extra Living Space! 2 Sheds - Low $812 Per Month Space Rent includes Water! Enjoy the Pool - Library - Pool Tables! Conveniently Located near Shopping - Restaurants & Freeway Access!
Entertaining all offers. Price drop to $65,000. This home is priced for quick sale. Needs TLC. It features a Large Master Bedroom with bathtub in Master bathroom. Main bathroom with shower. 2nd bedroom and bonus room. 2 sheds. Great mobile home park community with pool, spa and recreation room. Location has no neighbors behind. Rent is currently $858.50 a month, includes water sewer and trash services. Must qualify with Green Valley Mobile home park office before move in.