Archive for July 21st, 2010

Mexican Tourism Company Files for Bankruptcy in U.S. – Bankruptcy Beat – WSJ

A Mexican provider of tourism services at a beachfront hotel in Cozumel filed for Chapter 15 bankruptcy protection Tuesday.

Cozumel Caribe SA blamed its bankruptcy filing on the “drastic” drop in foreign tourists visiting the Hotel Park Royal Cozumel, from where the company operates.

“The recent world recession and crisis in the Mexican tourism sector has brought about a reduction in the flows of cash required to cover the costs and expenses of operating tourism-related businesses,” Agustin Garcia Bolanos Cacho, chairman of Cozumel Caribe’s board of directors, said in court papers.

The crisis Cacho was referring to includes the devalution of the Mexican peso, he said, as well as last year’s H1N1 flu epidemic. Cacho also noted that more tourists were staying home in light of rampant drug violence, the topic of many recent U.S. news reports.

The company said that although it took such emergency steps as reducing its staff and operating costs, negotiating better trade conditions with its suppliers and trying to create new business plans, it found itself strapped for cash when its lenders decided to withhold funds.

According to Bloomberg, Cozumel Caribe reported more than $100 million in debts and assets of more than $10 million in its bankruptcy petition, filed with the Manhattan bankruptcy court.

Mortgage Options While Going Through a Divorce | Loans – Credit – Debt – LoanSafe.org

Homeowners who are going through a divorce have a lot of things that need to be taken care of before they separate. If both husband and wife are on a home mortgage together, than the home and loan issues need to be addressed right away. Even if in your divorce decree it says that the other spouse is to take care of the home and mortgage payments, it is crucial that you realize that this will not remove your liability from the obligation. When you both agreed to the mortgage and signed the loan documents, you both agreed to be held responsible for the repayment of the loan.

To remove one spouses liability from the mortgage, the property will either need to be sold, transferred/deeded or the mortgage refinanced or assumed. One can always choose to keep themselves on the mortgage, but this is a risky position if the other spouse happens to default on the loan. In this article we will briefly help you understand your options during these hard times.

Quitclaim Deed or Interspousal Transfer Grant Deed:

A quitclaim deed is a document that transfers any interest in a property from one person to another another person. A quitclaim deed can be utilized to transfer a home from one spouse to another, but an interspousal transfer deed may be better for this type of situation. But please keep in mind that they both cannot release your mortgage debt obligations on the home. A quit claim deed may prevent an ex’s heirs from claiming his shares after his death which can be avoided through an interspousal transfer deed.

A interspousal transfer grant may be the best option in a divorce situation. This makes it simple to transfer property from one spouse to another and also to change community property into separate property. The process is similar to that of a quit claim deed. You will need to sign these together with a notary and you may want to get the assistance of an attorney to make sure it is filled out correctly.

In the case of a Interspousal transfer deed, you can add your spouse to the deed later by going to your county recorders office and adding them on title.

But please keep in mind, that once you all sign the deed, this does not get rid of your mortgage contract. You are still obligated to pay by law.

Sell the Property

Generally, one of the easiest and most effective ways to get both spouses name off the mortgage and to remove liability from the debt is to sell the home. You can use the sale to help pay off the existing mortgage, and any left over proceeds can be split between both parties. It may be a better option to attempt to sell the home before the divorce is complete to help avoid any future problems over the sale price. Additionally, this benefits both parties because neither will have to worry about the other spouse managing the monthly payments, maintaining the household, or paying property taxes and insurance.

One spouse refinances the home into their name only

Having one spouse refinance the mortgage into their name only is another very effective way to remove one’s liability from the mortgage. During this event, usually the spouse that wants to keep the property will pay off the other spouse’s equity share while refinancing the loan into solely their name. Many professionals suggest signing a quit claim deed to extinguish any rights the other party has to the home.

It is crucial that you make sure the home is only refinanced into one spouses name. This will ensure that the spouse who did not keep the home is safe in the event of a default or foreclosure on the property.

If you divorce is not yet complete and you have already decided who will be keeping the property, its a good idea to include in your divorce decree who will be refinancing the mortgage. This way you can prove that both parties have came to an agreement as to who will be taking over the home and mortgage payments.

One spouse assumes the mortgage

A divorce mortgage assumption is one option that is not brought up all that often. One main reason why is because not all mortgages are assumable, and even if they are, many mortgage lenders tend to be hesitant to do so. Therefore, your only way to find out is to call your lender and see is this option is open.

If the mortgage lender will allow one party to assume the loan, you will begin the process by completing an assumption agreement and a release of liability. The bank will also require your financial documentation to determine whether or not the mortgage can be handled based off one borrower’s income. If you do meet the requirements, you may also have to provide a copy of your divorce decree and quit claim deed. Generally, if the assumption is approved one spouse will receive a release from liability.

For some homeowners going through a divorce an assumption may be a good option (if your loan allows you to do so). While there may be a few fees that come along with this event, they are usually much less than the fees that will come with refinancing the mortgage.

Please contact your local Knoxville divorce attorney today for a free consultation at The McKellar Law Firm, PLLC at (865) 566-0125.

An East Tennessee woman recently rammed her Ford Explorer into a house, injuring an occupant in the process.

CLEVELAND, BRADLEY COUNTY (WRCB) – Cleveland Police say a woman had been drinking, when she crashed her car into an apartment last night.

It happened around 9:30 p.m. Monday off Charwood Trail.

As Channel 3 Eyewitness News was first to report, police say Alisha King was intoxicated when she got behind the wheel with a minor in the car.

She backed up from across the street and rammed into this house, according to authorities.

The residents say they were watching TV when the car plowed through the wall and pinned a 22-year-old under the car. He was taken to the hospital, and the driver was arrested.

If you or a loved one have been the victim of a crime or been injured in an accident, call the personal injury attorneys at The McKellar Law Firm today for your FREE Consultation, at (865) 566-0125.