Thursday , 18 July 2019
Breaking News
Home » Business » Banks foreclosing on churches in record numbers

Banks foreclosing on churches in record numbers

Churches are not in good terms with banks as banks are foreclosing churches in a record high numbers as Churches fail to make payments.

The surge in church foreclosures represents a new wave of distressed property seizures triggered by the 2008 financial crash, analysts say, with many banks no longer willing to grant struggling religious organizations forbearance.

Since 2010, 270 churches have been sold after defaulting on their loans, with 90 percent of those sales coming after a lender-triggered foreclosure, according to the real estate information company CoStar Group.

In 2011, 138 churches were sold by banks, an annual record, with no sign that these religious foreclosures are abating, according to CoStar. That compares to just 24 sales in 2008 and only a handful in the decade before.

The church foreclosures have hit all denominations across America, black and white, but with small to medium size houses of worship the worst. Most of these institutions have ended up being purchased by other churches.

The highest percentage have occurred in some of the states hardest hit by the home foreclosure crisis: 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,” said Scott Rolfs, managing director of Religious and Education finance at the investment bank Ziegler.

Church defaults differ from residential foreclosures. Most of the loans in question are not 30-year mortgages but rather commercial loans that typically mature after just five years when the full balance becomes due immediately.

Its common practice for banks to refinance such loans when they come due. But banks have become increasingly reluctant to do that because of pressure from regulators to clean up their balance sheets, said Rolfs.

Related stories:

Alec Baldwin to retire in 2012
Time Magazines Person of the Year 2010: Facebook co-founder Mark Zuckerberg
Florida’s solution to violence: MORE GUNS!!
Play Angry Birds Game
Stunning meteor lights up California sky
Paparazzo killed taking photos of Justin Bieber's car!
Cruise Ship Singer Mystery - Found Dead in Cabin!
U.S. remembers JFK on 50th anniversary of his assassination