Many custom craft the contract and redline the word doc back and forth until buyer and seller can reach agreement.

Long Beach (a port town, the largest on the West coast), has always been a "rough town" and you need the guidance of a local agent.It is illegal to red line specific areas (ie identify neighborhoods as undesirable). 

That's nuts.The tenant's refusal to pay late fees is an interesting problem -- with OP's tenant so close to moving out, I agree that it's best to make an effort to improve the relationship and not draw a red line.  

Most will redline it for you but will not complete your transaction without reviewing your contract before you present them a deal. 

Is it legal for a bank to redline areas of no lending?  

They will distribute those plans to the other depts for redline review.

For direct mail, does yellow paper with red lines work the best? 

Unfortunately, NYC hasn't seen the same softness in purchase prices relatively to other markets, $1M was the best offer.Deal Update - We should be in contract by the end of the week unless the seller has additional redlines to the contract. 

First, the idea of grading neighborhoods (as another post pointed out) is akin to redlining neighborhoods.

As a lender, depending on what exact space you are in, you have to be careful about expressing thoughts on topics of this sort which can result in a law suit if you are stating that the lender has a lending policy that essentially encourages tip toeing around certain neighborhoods (redlining).