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Internet Domains Open Access To $550 Billion Tax Foreclosure Market

2008-08-06 07:30:00

Internet Domains Open Access To $550 Billion Tax Foreclosure Market

    August 31 is deadline to express interest in Taxforeclosure.com and

                          Taxforeclosures.com URL



    SPARKS, Md., Aug. 6 /EMWNews/ -- While Congress struggles with an

appropriate response to the U.S. mortgage foreclosure crisis, an equally

profound housing problem remains largely hidden: tax foreclosures. In 2007,

$6.6 billion worth of property was in the tax foreclosure market, and an

astounding $558 billion worth was in the pre-foreclosure process. That

translates to 2.1 million homes against which local taxing authorities

placed liens in 2007. Unless redeemed by the owners, these properties will

join the foreclosed market, swelling it nearly one hundred fold. While

times are difficult for distressed property owners and the local

governments that rely on property tax for over 80% of their budgets, the

tax foreclosure market represents a historically unique business

opportunity.



    To facilitate access to this sizable market, Sparks, Maryland based

SC&H Capital is acting as advisors to an ownership group on the sale of

"taxforeclosure.com" and "taxforeclosures.com" uniform resource locators

(URLs) as strategic assets. Joseph Bradley, Vice President of SC&H Capital,

says, "These internet properties have strategic value to an acquiring firm

in the financial services or tax foreclosure market, particularly given

current market conditions and the state of the economic cycle. The owners

of these assets are offering the singular and plural dot-com domain for a

nearly $600 billion market with a high probability of growing substantially

as the effects of the sub-prime and ARM mortgage problems cascade in the

market." Expressions of interest must be made with SC&H Capital by August

31, 2008. Interested parties should contact Bradley at (410) 403-1586 or

via email to [email protected].



    "These direct request URLs are relevant to the marketplace right now,"

says Bradley, "and will be for a long time to come." A "direct request"

domain is one that users type into a browser, locating a content-relevant

site without the aid of a search engine. A direct request URL has inherent

brand strength, as its buyer owns the words that are the gateway to the

target market. Further, because domain names figure prominently in search

engine recognition algorithms, sites using direct request domains appear

higher in the search engine rankings.



    Between 2006 and 2007, the tax foreclosure market grew from $4.5

billion to $6.6 billion. Increasing unemployment and slow growth in

consumer income are not the only factors affecting the ability to pay real

estate debt. "A lack of tax escrow is part of the fallout of the ARM

mortgage issue," says Bradley. "In order to afford payments on a property

that would be otherwise out of reach, thousands of people went into ARMs

inappropriately. Often, these loans were written without the collection of

taxes into an escrow account. This kept monthly payments low, but it also

created a massive tax liability that many were unable to pay." Tax

liabilities hold a primary position over nearly all other debt instruments,

including mortgages.



    "We see a very wide demographic that would search for and find value in

topic-related content, including financial institutions, real estate

investors, attorneys, consultants, wholesale real estate channels and

others," says Bradley.



    A subsidiary of SC&H Group (http://www.scandh.com ), SC&H Capital is a

transaction advisory practice, assisting clients with buying, growing, and

selling businesses. Experience in advising the owners of internet

properties includes the sale of Ratemyprofessor.com to Viacom in 2007.




Contact: Joseph T. Bradley Vice President 910 Ridgebrook Road Sparks, MD 21152 [email protected] (410) 403-1586 (800) 832-3008

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Blake Masterson

Freelance Writer, Journalist and Father of 5

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