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More Investors Working Out Sales of Phoenix Pre Foreclosures

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By : John Cutts    99 or more times read
A rising number of investors are working out sales of Phoenix pre foreclosures to help homeowners avoid foreclosure and at the same time make some money for themselves.

While these investors still buy and resell foreclosed homes in Phoenix, they are now including short sales in their investment portfolios.

According to analysts, of the 78,889 homes that were sold in 2009 in Maricopa County, where Phoenix is the administrative seat, only a few did not pass through the hands of investors. Investors were present in every step of the housing market mechanism, from the acquisition of bank mortgage notes to the sale of properties at homes auctions in Phoenix.

They even enticed households living in rental complexes for multi families to become first time home buyers by showing them they can make their monthly home loan payments with the rent they were currently paying.

With their fierceness in buying and reselling distressed properties, investors were oftentimes seen in a bad light as vultures making money on the misfortune of homeowners. But now, analysts agree that investors helped substantially in the sale of Phoenix pre foreclosures and vacant foreclosures that would have otherwise blighted neighborhoods in the area.

Alan Langston, who operates an information exchange for real estate investors in Arizona, said that without the independent individual investors, Phoenix would have been overwhelmed by vacant abandoned dilapidated foreclosures.

One out-of-state investor with plans to focus on pre foreclosures in Phoenix is Canadian investor and broker Dave Dziedzic. He said he has launched an initiative called Housing Angels, which would help both investors and homeowners in distress.

Under the scheme, investors would buy distressed properties through short sales and then rent them out for a number of years to the same homeowners occupying the properties. After a certain period, the homeowners are given the chance to buy back the properties at affordable prices.

Dziedzic said the scheme is still untested in Arizona and that the lenders could resist the initiative, but they will jumpstart the program by focusing initially on blighted homes that lenders want to get rid of quickly.

Drop bids are also now becoming popular in Phoenix the process by which lenders make a last-minute decision to sell properties already set for auction at a lower price for certain cash-paying investors.

According to Langston, who also heads the Arizona Real Estate Investors Association, sales of Phoenix pre foreclosures have replaced about one-fourth of foreclosure actions by banks in the Phoenix metro area.

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