Though a lot of attention is paid to foreclosures and vacant homes in cities, suburbs can have high rates of both. With 3,000 foreclosed properties in Ramsey County last year and horror stories of rundown homes affecting area neighborhoods, a new foreclosure program is taking aim at the county's suburbs. 25 foreclosed houses in Maplewood MN and Little Canada are going to get some work done, a face lift, and the chance to be a home again.
First time home buyers do not want to deal with homes that have a lot of problems or need a lot of fixing up. Especially since there are many perfectly good homes on the market without damage. The Ramsey County HRA has been working to find a model to make these suburban homes more marketable. A $350,000 federal grant, plus another $1.3 million in federal stimulus dollars, is about to make that happen. The funds will be used by Ramsey County to rehab rundown homes, with the investment balanced against the price a first-time home buyer would be willing to pay.
The county will work with a developer or other intermediary to help them locate and purchase a home. The developer will hold the title to the property, but the county will hold the mortgage.
The county will pay for the repairs to make the home more marketable to first-time home buyers. In the case of the Larpenteur Avenue rambler, that meant upgrades to the plumbing, electrical and heating and cooling systems, as well as new carpets, freshly painted walls and a newly sided garage.