URLs Providing Access to $550 Billion Tax Foreclosure Market

August 14th, 2008

Tax Foreclosure Market

The US other than the foreclosure homes is also facing the problem of tax foreclosures. It has been observed that about $6.6 billion worth property in 2007 were in the tax foreclosure market. Besides, about $558 billion worth property were in the pre-foreclosure process last year. This is in fact a huge amount. Thus in 2007 about a total of 2.1 million of homes were undergoing the liens of the local taxing authorities. If these properties are not saved by the homeowners, it is soon to become a part of the foreclosed market. This will further degrade the real estate industry. This is a bad time for the local government and the property owners who depend on the property tax for more than 80 percent of their budgets. But the tax foreclosure market opens the door of a good business opportunity.

There was a growth of about $4.5 billion to $6.6 billion in the tax foreclosure market from 2006 to 2007. The main reason behind this inability to pay the real estate debt is the increasing rate of unemployment and a very sluggish growth in the consumer income. In a bid to provide access to the tax foreclosure market, Maryland based SC&H Capital Sparks is providing advices to an ownership group on the sale of URLs (uniform resource locators) as strategic assets.

According to Joseph Bradley, Vice President of SC&H Capital, “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.”

Bradley further said that the lack of tax escrow happens to be a part of the ARM mortgage issue’s fallout. A large number of people in a bid to make payments for their property went with ARM. Although the monthly payments they needed to make were low but their tax liability went such high that it became difficult for them to pay back. A direct request URL according to Bradley has inherent brand strength. As the domain names appear prominent in the search engine recognition algorithms, so sites which use the direct request domains figure a higher position in the search engine rankings. Now a large section will be able to search out the value of topic-related content that includes attorneys, financial institutions, wholesale real estate channels, consultants, etc.