Foreclosures in College Park, Maryland are on the increase. Located in the southern part of the State in Prince George’s County, this city is small with approximately 21,000 residents. It is the city that houses the University of Maryland and is a college community that is closely knit. The University dominates the area and many real estate investors are buying up foreclosures so that they can rent them out to college kids.
College students will oftentimes share a three or four bedroom amongst themselves. However, not all college kids are responsible and some will not pay their rent. There is always one person that will be accountable for the entire house, but the homeowner will suffer some loss if the rent is not paid.
The foreclosure forecast in this small city is not as dim as it is nationwide. Last year February 2008, everyone was looking at foreclosures in College Park, Maryland with trepidation because everything seemed so shaky. However, lately the news is that “home sales are increasing.” The economic activity has shifted a little and has made room for a positive outlook on the real estate market.
In the banking and financial industry, subprime loans are becoming extinct and this puts a damper of people who are having credit problems and cannot afford to even buy a foreclosed property because their credit is not in good standing with the banks. Real estate investors are buying up most of the foreclosures and renting them out to these people who cannot buy it on their own.
The community in College Park, Maryland seems to be more stabilized with the amounts of foreclosures that are there. The closeness of the community adds to their commitment to help each other. However, there are possibilities that exist for first time homebuyers who want to live in this college community setting. Home rates have definitely dropped and you can find a home to fit your budget.
Most of the foreclosures in College Park, Maryland are directly related to real estate investors who have to come up with part of the rent that the college students did not pay. They will find themselves falling back on the mortgage and can’t keep up with the payments. After trying to keep their heads above the water and not seeing anyway ahead, but out, the real estate investor will probably give up this property to be able to maintain the others owned.
