Banks are foreclosing on America’s churches in record numbers as lenders increasingly lose patience with religious facilities that have defaulted on their mortgages, according to new data. 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. 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.
I have actually done quite a few of these inspections which quite frankly have been profitable for me…however one needs to be really keen in knowing what they are inspecting; you will find much of the repairs are performed by the parishioners whose repairs are questionable at best. Having certifications and licenses in multiple fields is all but a must.
I typically find grading and roofing issues are prevalent followed by exterior veneer issues.
Religious institution is also affected by the financial crisis. The fact that churches foreclosure is increasing in number particularly in United States. A sad news for the community. Here is a church mortgage foreclosures news :Mortgage crisis in the house of the Lord . Banks are imposing legal processes in times of loan default. The need for foreclosure of the church property to pay its loan debt. Mortgage at its best and nobody is exempted. You have the financial obligation in every loan you applied for.
I don’t believe churches or people or anyone has an ethical duty to pay their mortgage in the U.S.
The U.S. government (lead by Barney Frank) illegally entered the free market, guaranteed loans that no local bank in their right mind would ever make, and created the entire housing bubble. Once they did that, and forced poor working families to pay double for their homes, those families are no longer ethically obligated to make their mortgage payments. I wrote this opinion and posted it on this message board in 2009 and almost no one agreed with me then. I still stand by it.
Then you do not understand a Christian’s responsibility. :roll:
Would you like to lend a couple hundred thousand please?
My two cents:
People who enter into legal agreements to purchase homes or churches have a moral and legal responsibility to make the payments,
no matter WHAT price they agreed upon at the time of closing.
I disagree because Americans have to live somewhere. It’s not like the government came in and artificially raised the price of all purple-painted homes. They raised the price of ALL homes giving people no other choice but to pay inflated prices for a product that, in the free market, would have been about 1/2 as much.
The Federal government used it’s monopoly to artificially inflate home prices on ALL homes, giving families few options and forcing them to overpay for housing above and beyond what the free market would have required.
I’d agree that those families are responsible for those mortgage payments ONLY IF the Federal government returns the difference to them for the overpayment of the homes in the first place with the bubble they caused with their monopolistic intervention.
That is twisted Nick.
Yes the government caused the inflation.
But those legally binding contracts need to be honored or defaulted.
That is what clears the system.
What? Show me where the government raised the prices of homes.
The market was on fire without the government touching prices,
I’d agree that they (The Barney Franks, and Chris Dodds) artificially “dropped or reduced” requirements for home ownership,
forcing the banks and loan granters to push the “home ownership is a right for everyone” mantra
thereby granting anyone with a pulse the ability to qualify, all the while knowing that these individuals
may not be able to actually AFFORD to own a home.
The bet was that the government would back up the loans, suckers that they are.
there certainly were a passel of people in the pipeline greasing the skids towards the closing table on a lot of these.
i.e. from the realtors steering them to a mortgager, to the banks that made the loans, etc…
they were ALL complicit in the runup.
Only one cent may be valid. It is not illegal to not pay your mortgage. You simple have to return the collateral. Unfortunately, the banks have been playing fast and loose with said collateral, so now you also have to pay them the difference between what it was worth and what it is worth now.
Interestingly enough, when you do that with a stock, you take the loss.
Different rules for those who have the money,eh?
and, just as I suspected:
As People are broke, so are Churches. Churches rely almost 100% on voluntarily giving. I am surprised this hasn’t happened sooner. It would be interesting to compare these figures to commercial real estate, (which is how its classified) and watch the trends.
The federal government inserted itself into the free market, guaranteed loans, and made money for homes artificially cheap and easy to get. That drove up the cost of housing across the country for everyone. Even people paying cash had to pay double what the real, free market (absent of government intervention) would require to buy a home. Since the government artificially used their monopoly (and our tax money) to raise housing prices… the families that are being foreclosed on should only be foreclosed on if they government returns the difference to them. Otherwise, those homeowners are not ethically bound to pay those mortgage payments IMHO.
If the federal government sticks its nose into anything and causes unintended consequences, they should reimburse the victims.
Unethical is unethical and compounding it only make it worse.
No one made people sign on the dotted line.
Prosecute the fraud the bankers committed.
YES THEY DID! That’s what a monopoly does, it ties up a free market so that we have no other choice but to sign on the dotted line. That’s exactly what a monopoly does. It removes choice. Were families given a choice to buy homes at normal, free market prices? Nope. They had to pay double. Barney Frank should hang.
Nobody made them buy.
In fact people tried to game the system until it stopped working.
Flip this house is no more.
The right thing to do is prosecute the banksters for fraud and let the home owner and bank fail/default.
In my opinion a major contributing factor to all this was people flipping houses left and right like it was the stock market. This continued to inflate prices until it got to absurdity…once it started to unravel they all started bailing out fast…and crash. Unfortunately…the middle class has been effected the most and a lot of people lost the shirts off their backs…was the government to blame some ?..yes…but I hate to say it but the free market did a lot of it also…and the greed of man…and that includes the major banks…which now are buying these houses back at 35% of market value…I wonder who comes out smelling like a rose ? …not the middle class family that is now renting instead and is actually paying more for rent now on a monthly basis then what their mortgage would be if they somehow could have had a relative bid against the evil banks during the sheriff sale on their foreclosed homes. Just sayin. My 2 cents worth.
They flipped houses because money was cheap and easy to get and there was always another sucker to buy until there wasn’t.
Place the blame where it belongs… Government.