Targeted communities get first dibs to buy foreclosed properties

File this story under "ironic."

Lots of taxpayers bought homes they couldn't afford. So they lost their homes. Cities -- meaning taxpayers -- are now going to buy those foreclosed homes. Sound goofy? It's for real.

The U.S. Department of Housing and Urban Development has announced the launch of a new program called First Look, in which banks will give state and local governments and nonprofit organizations a first shot at buying foreclosed properties.

Under the program, communities will get 48 hours' advance notice to buy the distressed properties at a 1% discount, according to HUD. The program's goal is to boost the $7 billion Neighborhood Stabilization Program which, as part of the Housing and Economic Recovery Act of 2008, provided grants to some local governments to purchase and redevelop distressed properties.