Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/12/2012 (4 years ago)

Catholic Online (www.catholic.org)

Banks have lost patience with lenders for religious facilities

Banks are now foreclosing on more and more U.S. churches in record numbers. Lenders are increasingly losing patience with religious facilities that have defaulted on their mortgages. The recent church foreclosures represent a new wave of distressed property seizures triggered by the 2008 financial crash. As a result, more banks have become unwilling to grant struggling religious organizations forbearance.

Church foreclosures have hit all denominations across America, with the small to medium size houses of worship being affected the worst. Many of these institutions have ended up being purchased by other churches.

Church foreclosures have hit all denominations across America, with the small to medium size houses of worship being affected the worst. Many of these institutions have ended up being purchased by other churches.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/12/2012 (4 years ago)

Published in Business & Economics

Keywords: Churches, foreclosure, financial bust of 2008, forebearances


LOS ANGELES, CA (Catholic Online) - Since 2010, 270 churches have been sold after defaulting on their loans. According to the real estate information company CoStar Group, 90 percent of those sales coming after a lender-triggered foreclosure.

In 2011, 138 churches were sold by banks alone. This is an annual record, and there is no sign that these religious foreclosures are abating. In contrast, there were only 24 church foreclosures in 2008, with only a handful in the decade before.

Church foreclosures have hit all denominations across America, with the small to medium size houses of worship being affected the worst. Many of these institutions have ended up being purchased by other churches.

The highest percentage has occurred in some of the states hardest hit by the home foreclosure crisis such as California, Georgia, Florida and Michigan.

"Churches are among the final institutions to get foreclosed upon because banks have not wanted to look like they are being heavy handed with the churches," Scott Rolfs, managing director of Religious and Education finance at the investment bank Ziegler says.

Church defaults are different from residential foreclosures. Most of the loans for churches are not 30-year mortgages, but rather commercial loans that typically mature after five years when the full balance becomes due immediately.

It is common practice for banks to refinance such loans when they come due - but these institutions have become increasingly reluctant to do so due to pressure from regulators to clean up their balance sheets, Rolfs says.

"A lot of these loans were given when the properties were evaluated at a certain level in 2005 or 2006," Rolfs says. "Banks have had to reappraise the value of these properties, whether it's a church or a commercial office building. Values have gone down, so the loans cannot continue in the same form."

The factors behind church foreclosures will sound familiar to many private homeowners evicted from their properties in recent years.

During the property boom, many churches took out additional loans to refurbish or enlarge, often with major lenders or with the Evangelical Christian Credit Union, which was particularly aggressive in lending to religious institutions.

After the 2009 financial crash, many churchgoers lost their jobs, donations plunged - frequently along with the value of the church building.

.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for May 2016
Universal:
Respect for Women: That in every country of the world, women may be honored and respected and that their essential contribution to society may be highly esteemed.
Evangelization: Holy Rosary: That families, communities, and groups may pray the Holy Rosary for evangelization and peace.



Comments


More Business & Economics

Censorship in America is alive and well. You'll be surprised to see who you can thank! Watch

Image of Obama and Zuckerberg work closely. It's not clear on what.

By David Drudge (CALIFORNIA NETWORK)

Freedom of the press may be the most important fundamental right in a free society. This is why censorship, particularly on social networks such as Facebook, is particularly onerous. LOS ANGELES, CA (California Network) - Freedom of the press is enshrined in the First ... continue reading


Facebook censor scandal - What is Zuckerberg up to? Watch

Image of Facebook censorship scandal prompts Zuckerberg to move (Pinterest).

By Kenya Sinclair (CALIFORNIA NETWORK)

Mark Zuckerberg is set to hold a meeting on Wednesday with Glenn Beck and Dana Perino to talk Facebook's censorship scandal. LOS ANGELES, CA (Catholic Online) - Recently a Gizmodo report accused Facebook of suppressing conservative news in the "trending" section.The ... continue reading


YES, bosses should let their employees power nap. So why don't they? Watch

Image of Studies show a short nap at work and increase productivity, alertness, memory, and cognition.

By Marshall Connolly (CALIFORNIA NETWORK)

There's something to be said for the afternoon siesta, after all. Or at least a power nap, according to one sleep expert from the University of Adelaide. Research shows that a ten-to-fifteen-minute nap in the afternoon improves performance. LOS ANGELES, CA (California ... continue reading


191 THOUSAND mining jobs lost since September '14 Watch

Image of With less coal, the US will need to turn to other countries (Pinterest).

By Kenya Sinclair (CALIFORNIA NETWORK)

Coal provides a cheap and efficient source of power - and the United States has lost 191,000 miners to provide this commodity. LOS ANGELES, CA (Catholic Online) - According to the <a href=http://www.bls.gov/news.release/pdf/empsit.pdf>Bureau of Labor ... continue reading


Obama brags in face of economic failure Watch

Image of The Obama administration claims the economy is thriving - but what is REALLY going on (TPNN)?

By Kenya Sinclair (CALIFORNIA NETWORK)

We all know "that guy." You know the one - the guy who is obsessed with conspiracy theories and who swears the government is out to get us. Well, according to newly released economic data, "that guy" might be (partially) right. LOS ANGELES, CA (Catholic Online) - U.S. ... continue reading


Yes, there's definitely something wrong with millennials, and here's what it is! Watch

Image of As far as millennials are concerned, the American dream is just that -- you have to be asleep to believe it.

By Marshall Connolly (CALIFORNIA NETWORK)

Across the country, the news is shocking. Over half of the millennials think socialism might be a good thing. Most of them believe the American dream is a myth, and public perception is that something is wrong with them. Why do they just want "free stuff?" LOS ANGELES, ... continue reading


Billionaire Soros warns China is near economic collapse Watch

Image of China's economy may be heading for trouble.

By Marshall Connolly (CALIFORNIA NETWORK)

Billionaire George Soros is sounding the alarm, China is about to go down and the rest of the world could follow. According to Soros, there is a major resemblance between China now and the United States in 2007-2008 just before the U.S. economy entered the Great ... continue reading


IRS issues dire warning before Panama Papers crackdown begins Watch

Image of The Panama Papers detail the tax evasion schemes of thousands of wealthy people around the world.

By Marshall Connolly (CALIFORNIA NETWORK)

The IRS has issued a warning to the rich who have been hiding money offshore - come clean now, before we catch you ourselves. The warning follows the leak of over 11 million pages of documents that detail the private, often hidden financial moves of wealthy people ... continue reading


Obama's Saudi masters order him not to sign 9/11 bill Watch

Image of It's not about the victims, it's about the Saudis.

By David Drudge (CALIFORNIA NETWORK)

Saudi Arabia is about to escalate their economic war with the United States should Congress pass a law that will allow victims of the 9/11  terrorist attacks to sue foreign states. The Obama administration opposes the bill and is lobbying against it. LOS ANGELES, ... continue reading


You won't believe how California's rich spend their money! Watch

Image of Top 1 percent pays nearly half of all California taxes (istockphoto).

By Kenya Sinclair (CALIFORNIA NETWORK)

When you think of California, images of sandy beaches, sun-kissed skin and Hollywood stars flash through your mind - and you're not wrong! California's rich enjoy all the sunny state has to offer - but at what cost? LOS ANGELES, CA (Catholic Online) - According to ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, First Peter 1:10-16
10 This salvation was the subject of the search and investigation of the ... Read More

Psalm, Psalms 98:1, 2-3, 3-4
1 [Psalm] Sing a new song to Yahweh, for he has performed wonders, his ... Read More

Gospel, Mark 10:28-31
28 Peter took this up. 'Look,' he said to him, 'we have left everything ... Read More

Saint of the Day

Saint of the Day for May 24th, 2016 Image

St. David I of Scotland
May 24: David, the youngest son of Scotland's virtuous ... Read More