Program Helps People Buy Maple Grove Homes in Foreclosure

When Sam and Martha Vincent started looking for a new home several months ago, they planned to tour a lot of homes to make sure they found the right fit.  What they weren’t planning on was touring foreclosed homes.

“In my mind a foreclosed home is old and beat up and we aren’t looking for a fixer-upper so I didn’t think we would check out any foreclosed homes,” Martha Vincent said. “I was dead wrong.”

The Vincent’s, who are looking to stay within the Maple Grove area, said about half of the homes they’ve looked at so far are foreclosures. “Just about all of the foreclosures are really nice, far from the image I had in my mind. Plus, the prices are decent.”

Now, there is even more incentive for homeowners like the Vincent’s to buy a foreclosed property. Hennepin County has launched as assistance program that gives eligible home buyers $10,000 to be used toward down payment, closing costs or to reduce mortgage principles and fees on a foreclosed home. For those who meet the income limits, the money comes in the form of a loan, which, in most cases, is forgiven after the homeowner lives in the home for five years.

“This program is giving people an opportunity to get a great deal on a home,” Hennepin County Planning Analyst Vicki Lee said. “It’s two-fold: the homeowner gets a deal on a home and in time the program will help stabilize the housing market.”

The program, officially called Neighborhood Stabilization Homebuyer Assistance Program, is federally funded. The program started about a year ago with $1.1 million dollars and according to Lee, more than $900,000 is still available.

The funds are available for foreclosed home in Brooklyn Park, Brooklyn Center, Maple Grove, Rogers and Champlin. According to Maple Grove city staff, there are 250 foreclosed properties in the city- a number that has held steady for the last year.

“Part of the struggle is getting the word out,” Lee said.

The Vincent’s, who are still looking for a home, said they were unaware of the program. “We’ve never heard of it,” Martha Vincent said. “We should really check into it though, I mean, who wouldn’t want a little help buying a house?”

Lee says the county has put up fliers and reached out to lenders to let them know about the funds, but says word of mouth is their biggest promoter right now.

“We’ve had several success stories so far, but we certainly have the opportunity for more,” Lee said. “We’re excited to offer the program and hope more people look into it.”

For information about the Neighborhood Stabilization Homebuyer Assistance Program, including income qualifications, an application and the terms of the loan, check out the Hennepin County website.