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ForeclosuresDaily.Com Fights To Survive

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By SHANNON BEHNKEN

sbehnken@tampatrib.com

Published: October 17, 2008

TAMPA - A Largo company that made millions by helping investors cash in on Florida's foreclosure boom is struggling to stay open.

ForeclosuresDaily.com has laid off all employees except for the five owners, and is moving out of its 10,000 square-foot office on Belcher Road, said Mike Kane, CEO of ForeclosuresDaily.com.

Kane said the credit crunch has made it difficult for consumers to get loans to buy homes and for the company to obtain loans for business expenses.

The office appeared mostly vacant Tuesday; the door was open but lights were off. Only the company's executives were there for a meeting about the future. Kane said they decided not to file for bankruptcy and to instead move to a smaller office and try to hang on until business improves.

ForeclosuresDaily sells information on foreclosures and offers classes on how to invest in such homes.

Just last year the company was thriving. Inc. Magazine ranked it No. 35 on a list of America's fastest-growing private companies. Its annual revenue grew from $366,000 when it opened in 2004 to $14.4 million in 2007. It had 55 employees at that time.

No other Bay area company made it on the top 100 list.

More than a half-dozen former employees have told the Tribune they were let go and not paid for completed work. Some said checks had bounced. Kane said the company plans to pay employees it owes.

"They will get paid," he said.

Reporter Stephen Thompson contributed to this report. Reporter Shannon Behnken can be reached at (813) 259-7804.

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