Business News
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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