Large institutional investment firms, who have been on a buying spree since the downtrend of the market, have slowed down purchasing distressed homes.

With the mortgage rates still being at the low end of the range, and the real estate home pricing stabilizing, there are not as many underpriced homes to be had, as there has been in the past, that can be snatched up on the courthouse steps.

Some of the larger institutional investment firms are now faced with a huge backlog of homes that they still need to rehab and rent. This huge backlog of work and inventory is cutting into their bottom line. Some of them have now turned from an all cash transaction and are turning to financing the deal to keep them going.

Some of the smaller investors who are willing to purchase some of the larger institutional investors properties have been a relief to the institutional investors by helping them lighten their load. This will keep some of the institutional investors out of their hot seat because they have not shown their financial backers the financial gain that was forecasted by them in the past.

The huge buyer pool in this current market is now made up of the small to midsize investors. They are many times holding and renting to the individual “rent-to-own buyer” for the single family home market.

Sure, the institutional investment firm will still be standing at the courthouse steps to purchase homes, but you will not see them as often as you have in the past.