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Internet Domains Open Access To $550 Billion Tax Foreclosure Market
Aug 06, 2008 (08:08 AM EDT)
SPARKS, Md., Aug. 6 /PRNewswire/ -- 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@example.com.
"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 firstname.lastname@example.org (410) 403-1586 (800) 832-3008
CONTACT: Joseph T. Bradley, Vice President of SC&H Group, +1-410-403-1586, email@example.com+1-800-832-3008,
Web site: http://www.scandh.com/