Major homebuilders have embarked on aggressive marketing campaigns they hope will help them compete with thousands of foreclosed homes flooding the market in cities like Phoenix.

The companies are using warnings about unknown repairs, limited selection and haggling with banks to draw in buyers who might be tempted by cheap foreclosures.

An Arizona State University report says more than 4 percent of the homes in the Phoenix area were lost to foreclosure last year. Statewide, foreclosures topped 70,000.

That means there's inventory available and not much room for new home sales.

Lennar is fighting back with a "Buying a New Home vs. a Foreclosed Home" web page that lays out the benefits of new construction. PulteGroup Inc., Shea Homes and Phoenix-area builder Fulton Homes have similar programs.