Posted at: 08/12/2009 6:52 PM
By: Dan Conradt

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New Program to Deal with Foreclosure

(ABC 6 NEWS) -- We've heard a lot in recent years about the foreclosure crisis.

But tonight, we have a different take on the crisis, as one county in our area launches a program to reverse the foreclosure trend.

And it could become a pattern for other counties to follow.

"It is a lot like our own little economic recovery program," says Jon Ford.

Freeborn County's own foreclosure recovery program comes in the form of 610,000 dollars in funding from the Greater Minnesota Housing Fund to the Albert Lea HRA.

"The funding will be used to acquire, rehabilitate and then resell foreclosed homes off of the open market," Ford says.

At a time when Freeborn County has one of the highest foreclosure rates in the state…

"Over the last three years there's been over 300 foreclosures," says Ford.

"We want to keep the focus there, because that's where we can provide down payment closing cost assistance, only to first time home buyers," Ford says.

... Who are also people who are not currently paying property taxes.

"A good tax base helps keep your taxes down," says Ellen Kehr.

Before the HRA homes go on the market, they'll be fixed-up -- by local contractors using stable mortgages from local lenders.

"Who I notice like everybody else right now have struggled to find work in some cases. A lot of the problems with the economy started with the foreclosure crisis itself," Ford says.

And once the renovated homes have been sold, proceeds from the sale will be used to do it all over again, with an eye toward making Albert Lea a healthier city.

"And hopefully the revolving fund will continue to revolve, it won't go away, you put the money in there, then you take the money out and do another home. It takes a lot of aspects to make a healthy community. One of the top priorities in housing," Kehr says.

The Albert Lea HRA hopes to buy, renovate and sell 30 foreclosed homes in the first three years of the program.

It will close on its first home at the end of this month.