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:
**PRICED TO SELL** 1697 Marbella Dr, Vista, CA is a single family home that contains 1,685 sq ft and 6003 sq ft lot, was built in 1989. It contains 3 bedrooms and 2.5 bathrooms. Located in highly desired Portico, at Shadowridge community. Walking distance to Rancho Buena Vista High School. This home is in a prime location with Legoland (15 minute drive), Carlsbad Premium Outlets (20 minute drive), San Diego Zoo Safari Park (25 minute drive), and 40 minutes from SeaWorld San Diego and the San Diego Zoo. Do
Beautiful Brand New 3 Bed 2 Bath Move-In Ready in a 55+ Community. Home Features Wood-like floors, Skylight in Kitchen, Appliances in Kitchen and island, Lyno in Kitchen and Bathrooms and Carpet throughout. Master Offers Walk-in Closet, His/Her Sinks and Storage. Off the Kitchen is a Large Utility Room with Hanging and Storage. Large covered porch and Beautifully Landscaped Front Area! Great financing for any situation. HURRY! Won't Last!
WELCOME TO VISTA DEL MAR 55+ COMMUNITY. THIS IS A GREAT OPPORTUNITY TO OWN YOUR OWN HOME IN THIS WONDERFUL COMPLEX. LARGE OPEN LIVING ROOM WITH GREAT LIGHTING, WHICH OPENS TO THE DINING ROOM W/ BUILT IN HUTCH. OFF THE KITCHEN IS NOOK AND DEN. MASTER BEDROOM W/WALK IN CLOSET AND SMALL OFFICE SPACE. OTHER FEATURES INCLUDE, INDOOR LAUNDRY, ENCLOSED PATIO, LOTS OF STORAGE, NEWER WINDOWS, CENTRAL AIR AND HEAT, TWO CAR ATTACHED GARAGE. NICE BACKYARD AND PATIO AREA. COOL BREEZES, WALKING DISTANCE TO CLUBHOUSE.
Wonderful Private Home in Green Valley of Vista. Home Features: New Carpet in the Living and Master Bedroom, Newer Kitchen, Two Outdoor Porches, Extra Room of the Living Room, Storage Shed, Appliances Convey, Wet Bar, and much more! Close to everything! Turn-Key and Ready to Go!
$849K to $899K! Includes private guest quarters! Magnificent 2 story custom-built home with exceptional architecture & distinctive design. Situated on a half acre. Very private lot with electric gate. Beautiful large open floor plan w/ formal entry, wrap around stair case, vaulted cathedral ceilings & Travertine flooring. Uniquely sunken living room has surround sound & an interior pillar. Main house: 1 bedroom & full bath downstairs. Three additional bedrooms upstairs & 2 baths. Apartment 1 bed/full bath
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 the hillside in a quiet cul-de-sac of Green Valley Mobile Home Park sits this gem! This nicely maintained 1997 Baron home is approximately 1280' est sqft with 2 bedrooms & 2 baths plus den/office area. Large lot consists of mature citrus trees and otherwise easy maintenance landscape. One of the great features of this home is the oversized covered porch that has views for days!!...and because the lot sits on the hillside the units are tiered which gives a private feel.
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 amazing two-story home in the desirable community of Shadowridge Greens is ready to move in. Upgrades include newly painted walls, fresh carpet, and pull-down stairs for easy access to the attic. Energy upgrades include two-year-old central air unit and dual pane windows and sliders; 2 solar fans (house and garage); 3 solar tubes. The two year old furnace is certified by SDGE for premiere installation. The two-car garage has additional space and comes with a workbench and multiple upper cabinets for
MOTIVATED! Land Owned Active Vista Del Mar 55+ Park! Spacious 1704 S.F. 2 Bedroom 2 Bath + Den. On A Permanent Foundation-Has a 433! Fresh Paint - New Vinyl Wood Flooring and New Carpet! 17 X 13 Master Suite with Walk in Closet! Brick Fireplace-Seller will provide Termite Clearance - 2 Car Attached Garage! Guest Parking close by! Low $70 per month HOA fees includes Common Area Clubhouse, Pool & Tennis Courts! Great North S.D. Area Located near Shopping, Easy Freeway Access & just minutes to the Beach!
Let See-1 Story Home, End of the Street, No Through Traffic, With Acres of Open Space Behind The Home, Bamboo Floors Throughout. French Doors off Master to Private Deck in Back Yard...Too Good to be True? Great Community Pool Spa, BBQ's and Children's Play Ground.
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