Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/12/2012 (2 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 (2 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'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for November 2014
Lonely people:
That all who suffer loneliness may experience the closeness of God and the support of others.
Mentors of seminarians and religious: That young seminarians and religious may have wise and well-formed mentors.



Comments


More Business & Economics

Is Apple about to hit $1 trillion? Not if Google has anything to say about it Watch

Image of While Apple dominates the smartphone market, some suspect that its heavy reliance on products will lead to its downfall to companies who offer more services and software.

By Catholic Online (NEWS CONSORTIUM)

Silicon Valley tech giant Apple may one day be worth more than a trillion. Just for a second think about how massive that is. LOS ANGELES, CA (Catholic Online) - The maker of mac computers, iPods, iPhones and more is already worth more than $670 billion, and has a $260 ... continue reading


Feet on the desk - more and more Americans simply don't want to work anymore Watch

Image of Pew Research says that 39 percent of 16 to 24-year-olds don't want to work, up a substantial amount from 29 percent in 2000.

By Catholic Online (NEWS CONSORTIUM)

Nearly four in 10 Americans, or 92 million, are not in the labor force. Many are unemployed for no fault of their own. Many others have simply stopped looking for work. Why? The reasons are complex. LOS ANGELES, CA (Catholic Online) - The largest group of people ... continue reading


REAL INCOME INEQUITY: 85 richest people now have as much money as poorest 3.5 billion Watch

Image of Billionaire investor Warren Buffett remarked more than three years ago that

By Catholic Online (NEWS CONSORTIUM)

The very rich and the very poor just grew further apart. According to Oxfam, the broadening chasm between wealth and poverty has grown so wide that the 85 richest billionaires on the planet, such as Carlos Slim, Bill Gates and Mark Zuckerberg now have as much ... continue reading


Jaded with politics? It's because America has become a plutocracy -- but Catholic Social Doctrine has the fix Watch

Image of It's money, not votes that really makes the difference in a plutocracy.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

As Americans head to the polls this election day, they are extraordinarily jaded. Fed up with campaigns, elections, and the lack of change and benefit to them as individuals, most Americans feel dissatisfied and angry. Notably, the solution to this problem will not be ... continue reading


SURVEY: Singapore best country to do business with, for ninth year in a row Watch

Image of The World Bank ranked Singapore tops for the ninth year in a row.

By Catholic Online (NEWS CONSORTIUM)

Conservative and strict - there are heavy penalties for littering, as well as being wildly prosperous, the feisty Asian nation of Singapore has been ranked as the single best nation to do business with, according to the World Bank. The bank ranked Singapore ... continue reading


Is it a sign of impending collapse? Financial savant Warren Buffett loses two billion in stock market Watch

Image of Warren Buffett recently lost $2 billion from investments in Coke and IBM, which have led some to believe that a stock market slowdown might be imminent.

By Catholic Online (NEWS CONSORTIUM)

Warren Buffett, the man known for focusing on long-term investment performance as apposed to making the quick buck, has lost $2 million in investments. LOS ANGELES, CA (Catholic Online) - Buffett owned Berkshire Hathaway investment house has large investments in ... continue reading


Christmas shopping in October? Apparently it's becoming a big deal Watch

Image of Shoppers are already out, despite the fact Halloween hasn't even arrived.

By Catholic Online (NEWS CONSORTIUM)

Shoppers are starting early with October 5 being declared by retailers as "Stock Up Saturday." Consumers are already Christmas shopping which means more of the revenue available to retailers will be harvested earlier in the shopping season. For retailers that choose to ... continue reading


List of Top 20 World Brands - Apple tops Google as world's leading brand for second time in row Watch

Image of The Apple Watch has enjoyed success in numerous fashion circles, featured on the cover of Vogue, among others.

By Catholic Online (NEWS CONSORTIUM)

Apple has topped Google as the world's most valuable brand for the second year in a row. The two companies are the only brands to be valued at more than $100 billion, according to the annual Best Global Brands report. LOS ANGELES, CA (Catholic Online) - ... continue reading


Here they come! China passes U.S. economy based on purchase power Watch

Image of Under President Obama's administration, China may surpass the U.S. economy.

By Catholic Online (NEWS CONSORTIUM)

The International Monetary Fund (IMF) has reported that China has overtaken the United States and is now the world's largest economy, at least based on purchasing power parity (PPP). LOS ANGELES, CA (Catholic Online) - The IMF said that by the end of 2014, China ... continue reading


Rosie the Riveter would cry: Record 55,553,000 women not participating in U.S. workforce Watch

Image of The strides made by women in the workplace sadly isn't reflected in recent job statistics.

By Catholic Online (NEWS CONSORTIUM)

The strides made by women in the workplace seems to have gone up in smoke across the United States. The determined visage of Rosie the Riveter during World War II to women taking the place of men in hard industry - declaring "We can do it!" would certainly shed ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

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

Daily Readings

Reading 1, Ezekiel 34:11-12, 15-17
11 "For the Lord Yahweh says this: Look, I myself ... Read More

Psalm, Psalms 23:1-2, 2-3, 5, 6
1 [Psalm Of David] Yahweh is my shepherd, I lack ... Read More

Gospel, Matthew 25:31-46
31 'When the Son of man comes in his glory, escorted ... Read More

Reading 2, First Corinthians 15:20-26, 28
20 In fact, however, Christ has been raised from the ... Read More

Saint of the Day

Saint of the Day for November 23rd, 2014 Image

Bl. Miguel Pro
November 23: Born on January 13, 1891 in Guadalupe, Mexico, Miguel Agustin ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter