Foreclosures high; Hobbit Travel agency Closes down
The US is going through one of the worst downturns. Unemployment is at a record high of 10 per cent. As people lose jobs, even those with very good credit history are faltering on mortgage payments. Hence, foreclosures have become common.
The Federal government has come up with a program to help troubled homeowners. As part of this plan, loans of homeowners are being revised, first on an experimental basis, and then of three months, and then permanently. However, the impact of this program is yet to be felt in many fields.
The downturn has had a very bad effect on the travel and tourism industry also. Travel agencies are closing down. Take, for instance, Hobbit Travel. It closed down before Christmas. The agency owner George Wozniak was in the throes of financial woes even before the agency was shut down. His home in Colorado is on the verge of foreclosure. He has also not been able to pay property taxes. He has also not been able to pay suppliers. It is really evident that 57-year old Wozniak has run into trouble.
He had participated in a Fair last year and he still owes money to some of the suppliers. This was revealed by the Fair’s deputy general manager, Jim Sinclair. He also said that licence will not be issued to Wozniak for the Minnesota get together till the tycoon is able to cough up the money he owes.
The Wozniaks also own a home in Edgcumbe Road. The couple – George and Mary Ann – has not been able to pay taxes on that. In fact, the Wozniaks owe above $79,000 on two lands in Edgcumbe. That includes penalties too. The value of the house is tagged at $2 million.
The late payments will not have any immediate effect. The revenue department of Ramsey County says that forfeiture would not happen till 2014. In Snowmass, Colorado, a home owned by Wozniak is facing foreclosure. According to the bank, the Wozniaks owe $2.6 million in principal. The bank may also sell off the property to pay off the loan.
It may be pointed out that Hobbit Travel announced that it would down the shutters by December 22. The plunging revenues and the slowdown have been blamed for this. Travelers have been left in jeopardy and 50 people lost their jobs because of the closedown. Customers have been given to contact a number to know if bookings have been cancelled.
