Investors propping up Arizona real estate

Arizona's real estate market has been inundated with foreclosures in recent months, and consumers are taking advantage by moving into rent-to-own homes.

Thousands of real estate investors have bought up distressed properties in the state for their greatly reduced prices, reported the Arizona Republic. While some experts have accused investors of being responsible for home price inflations in the past, today they're welcome because without investor-owned properties, even fewer homes would be selling. And since a number of consumers lack the credit to qualify for a mortgage, they're moving into investor-owned properties under nontraditional lending agreements, such as rent-to-own deals.

"We try to buy the ugliest home on the block and make it one of the nicest," investor Julie Bieganski told the paper. "We are also open to working out deals for people to rent-to-own our homes. We know it's tough to get financing now."

International buyers - especially from Canada - are also moving into Arizona homes for their greatly reduced price tag, said the paper.

There likely won't be a shortage of distressed Arizona properties for investors to choose from any time soon. RealtyTrac reported that one in every 55 homes in the state received a foreclosure filing in September, the second-highest rate in the nation.  

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