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 contemporary townhome provides a smart layout with a convenient downstairs bedroom with walk-in closet and full-sized bathroom, along with the two-bay garage on the first floor. Upstairs is the main living area on the second level, which showcases an open layout among the gourmet kitchen and great room which leads onto a balcony. At the top level are two more bedrooms, including the spacious master suite, each of which enjoys an en-suite bathroom and walk-in closet.
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 away. 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 outdoo
Perched on a hilltop, our new Skyline Community ushers in crisp ocean breezes and the beauty of a place just down the road from Bressi Ranch in Carlsbad and North County Beaches. Style-savvy and elegant, this two-story 3 bedroom home with upgraded white cabinets, farm house kitchen sink, and professional series appliances, including refrigerator, are an invitation for creating a favorite homemade meal and snuggling in for the holiday season. The second floor laundry room, Smart Home and latest energy effi
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. Within 10 mins from the North County Square shopping center & 5 mins away from the 78 freeway!
Affordable 4 BedHome w/ POOL & OWNED SOLAR! Shadowridge has been regarded as one of California’s more desirable,golf-orientated,master-planned residential developments.It's also among the most affordable SingleFamilyHome Communities closest to Carlsbad in NorthCounty SanDiego.The Shadowridge Community offers first time home buyers the chance to get into a single family home just miles from Carlsbad Beach.You are minutes from the Tri-City area of San Marcos,Vista and Carlsbad. Don't miss this OPPORTUNITY!
NO MELLO-ROOS! This Exquisite Luxurious Contemporary Townhome built by Lennar Homes- where Everything Is Included is a must see! 2 bay attached garage, solar, tankless water heater, all appliances included, WIFI certified with heat mapping, integrated home automation throughout, technology voice-controlled by Amazon Alexa. Views overlooking the Grass/parklike setting with built in BBQ’s, Heated Pool & Spa. Hurry, if you can close in 45 days Lennar to pay $5K in closing costs! VA and FHA approved!
Welcome to this elegant home in the desirable Shadowridge community of Vista, CA that offers three bedrooms, two and one-half baths and a two-car garage. As you enter, you will be greeted by a grand great room that is centered around a fireplace and features plentiful windows that make the room light and bright. The spacious eat-in kitchen offers black appliances, an island, tile backsplash and opens into the family room. Upstairs, you will find three large bedrooms, including a master bed and bathroom.
The final model home for sale at Tides. Large private patio. Highly upgraded with plantation shutters, Laminate Flooring throughout and up the stairs, quartz counter-tops, board and batten, custom tile and more! The furniture, accessories and all the TVs are included. This home is located in a highly desired location, overlooking the green preserve and resort-inspired pool; it feels open with a lot of natural light throughout the day. Tides is also located west of the freeway, .8 miles from the beach.
Brand NEW energy-efficient home! Linen cabinets, gray granite countertops, white subway backsplash, rustic EVP, tile and neutral carpet in upgraded Posh package. Open floorplan, upstairs, secluded master suite, three bedrooms and 2nd floor laundry. Located seven miles from the Pacific Ocean, Wildgrove provides great value in the city of Vista. Known for their energy efficient features, our homes help you live a healthier quieter lifestyle while saving you thousands on your utility bills.. Neighborhoods: Wildgrove Complex Features: , Equipment: Fire Sprinklers,Garage Door Opener Other Fees: 0 Sewer: Sewer Connected Topography: LL
MOTIVATED SELLERS! BRING ALL OFFERS! 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!
Check out the full tour: http://ranchophotos.com/mls/1576-castillo-way/ . Beautiful 4bd/3.5bth, 1977sqft home in brand new community of Avila. This gorgeous home has upgraded features, luxury vinyl flooring throughout & smart home touches. Open concept great room floorpan with stunning kitchen; white shaker cabinets, quartz counter tops, Carrera marble backsplash, pendant lighting at xl island/eat at bar & all stainless steal appliances. Convenient 1 full bd & full bath downstairs.