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:
Calling all developers Investors are you looking for a high traffic location close to freeway access & shops? This property is zoned C-2! Excellent corner lot with great visibility and tons of potential just south of the 78 freeway in the up and coming town of Vista! The lot contains two APN #s totaling to just over 2 Acres. Visit city website or office to verify property use, topography, zoning, and characteristics.
This tri-level contemporary home 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.
Welcome to this beautiful condo in the tranquil community of Shadowridge! This unit has been tastfully upgraded with new soft close cabinets. The new granite counters in the kitchen and bath has a unique leather finish. You need to see how beautiful it is! Fresh paint, new flooring including tile and carpet means nothing left to do but move in! This charming condo located in the Shadowridge community is ready for a new owner to enjoy. Close to shopping, freeways and golf course! Come experience the beau
BACK ON THE MARKET. PENDING RECEIPT OF CANCELLATION OF CONTRACT. . BUYER COULD NOT PREFORM, Highly sought after Sea Vista home in Shadowridge. Hugh curb appeal This home is move-in ready with new paint throughout and immaculate. Large living room with vaulted ceilings, open to the second floor. 2nd story loft, perfect for an office or bonus room. Very bright open kitchen. The amazing master suite also has vaulted ceilings and a view of the ocean. Community pool, spa and clubhouse. Close to all schools, sh
SHADOWRIDGE A MUST SEE GREAT AREA CLOSE TO SCHOOLS AND SHOPPING CLOSE TO ALL. LARGE BEDROOMS AND AN OPEN FLOOR PLAN. MOVE IN READY 5 MINUETS TO CAMP PENDLETON, CLOSE TO SHOPPING. 4 MILES TO THE BEACH, CLOSE TO Hwy 76, 78, 15, 5. VA Buyers...Welcome! This Unit is priced to sell @ 398,999...listed below market value. Seller will help with closing cost. (2) Master Bedrooms with 3 Total Baths, laundry closet, 2 Car Garage with direct entry, enclosed Patio and Walk in closets.
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.
A beautiful house located in a pretty, quiet, scenic gated community. The 4 bedroom, 3 bath 2 story house is newly painted. The owner is also installing a new central AC system. Tile and carpet floor downstairs and carpet upstairs. House is maintained in excellent condition. There is a walking trail right behind the house accessed thru a gate next to the house. Great view from the backyard and the master bedroom. Upstairs has 4 bedrooms and a laundry room. Lots of closet. Recessed lighting through out the
Beautiful 4 bed, 2.5 bath, 1833 sq. ft. home on private cul-de-sac in the gated Moncado Springs community! This home features new carpet, travertine tile, ceiling fans, plantation shutters, an open kitchen with barstool seating, and a spacious master with an ensuite bathroom and walk-in closet. The association maintains the front yard and has a pool, playground, and a community room! No Mello Roos!!!
Beautiful Hallmark 2BR/2BA Manufactured Home in very well maintained Green Valley Senior Community. Home sits at the back of the park where you can relax on your back porch with a country feel that your will forget you live in the city! Home has many upgrades and is move-in ready. Seller is motivated. Come see this beautiful home for yourself today!
Welcome to your one level destination in sought after gated Quail Ranch on over 1 acre with beautiful pool/spa. Mature landscaping and area for granny flat, RV pkng, or large garden. Area previously used for golf practice. 4th bedroom currently used as office but could be used as 2nd en suite master. Delightful kitchen with granite counters. Travertine flooring and neutral carpet. Lots of natural light! Beautiful wood ceilings in LR and office. 3 grand fireplaces. This is a beautiful place to call home!
Nestled in the prestiguous Quail Ranch community, this elegantly appointed single story estate features roughly 3,200 sqft of open living space. Welcome home to your own private resort-like oasis, perfect for hosting parties or intimate family dinners. Some of the many recent upgrades include a Tesla Solar system with battery back up, new flooring throughout and a completely renovated kitchen. Thoughtfully laid out floor plan with a private and secluded master bedroom. Enjoy country living yet city close!
Solar! This mediterranean-inspired property is located w/in the gated community of Moncado Springs. Luxurious tumbled-edge travertine flooring in a tasteful Versailles pattern, plantation-style shutters and crown molding downstairs. Spacious kitchen with large workspace finished in a warm granite. Cozy vintage brick hearth, large built-in media niche, upstairs laundry and office space. Outside, you'll find resort-style covered patio with slate flooring, low maintenance backyard and a view of the valley.