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Capitol Heights is a reflection of the severity of the county's housing crisis, ranking among the top communities in the state facing a large number of foreclosures.

According to a state Department of Housing and Community Development report released earlier this month, "Property Foreclosures in Maryland Second Quarter 2008" Capitol Heights is deemed a foreclosure "hot spot," an area that had more than 49 foreclosures in July. Based on individual ZIP codes, Capitol Heights had the highest number of foreclosures with 222. Following behind were Upper Marlboro with 219 and Fort Washington with 201.

Prince George's County accounted for about one-third of state foreclosure activity, at 32 percent, with Montgomery County at 14.7 percent and Baltimore City at 11.1 percent.

Mary Dade, a housing counseling program manager for Capitol Heights-based nonprofit United Communities Against Poverty, said 70 to 80 percent of clients in Capitol Heights seeking help were not victims of adjustable rate mortgages whose interest rates skyrocketed but had "regular old mortgages."

Dade said these were residents who refinanced their homes but continued to rack up debt. UCAP holds monthly foreclosure counseling workshops to educate residents.

Dade said she can understand why other areas such as Fort Washington and Upper Marlboro with $100,000 incomes were hard hit.

"They bought more house than they could afford," Dade said. "They bought $500,000 to $600,000 homes when their income really can't support more than [$350,000] at the max."

Residents are further impacted by a weak economy and higher cost of living, Dade said.

"Food's higher," Dade said. "Gas is off the charts. Energy. People are just having a hard time trying to live and that fixed income does not go as far as it used to. We've got a lot of societal issues and economic issues impacting on this mortgage crisis."

Lloyd Baskin, manager of the Department of Housing and Community Development's Homeownership Center, said the Capitol Heights area was likely hit hard because lenders targeted black senior homeowners whose home values increased by double-digit percentages in the 1990s and that homeowners, using a home equity line of credit and second mortgages, "cashed out" the equity on their homes.

Baskin said they could not predict how many more foreclosures the area could face.

"Suddenly one life-changing incident, like a family member losing their job or divorce, can cause folks to lose their homes," Baskin said.

Baskin said the county plans to partner with groups such as Coalition For Homeownership Preservation in Prince George's County and Prince George's Community College to hone in on problem areas such as Capitol Heights, Fort Washington and Bowie to give homeowners financial literacy training.

Baskin said programs such as the Prince George's County Mortgage Refinance Program and "Bridge to HOPE," where residents can borrow up to $15,000 to repay after a house is sold or refinanced, are available for families to get back on their feet.

Town of Capitol Heights Town Administrator James Booth said the incorporated town does not have a program in place to help residents in danger of losing their homes.

"We're aware of seeing additional for sale towns in our town, property owners trying to rent their property to recover any losses that may be resulting from the crisis," Booth said.

Booth did not know the number of foreclosures in the incorporated town, nor does the report distinguish between the incorporated and unincorporated areas, but he said the town has been approached before by nonprofit groups such as Maryland Homeowners Preserving Equity to hold foreclosure workshops in the community. He did not have a timeline as to when the town would take up a group on its offer.

E-mail Natalie McGill at nmcgill@gazette.net.