Churches Become Latest Foreclosure Victims
March 12, 2012
Churches are being foreclosed upon in record numbers, as more churches fall behind on their mortgage payments and banks lose their patience, according to the CoStar Group.
More banks say they are no longer granting forbearance to struggling churches, and it’s time for these religious organizations to meet their mortgage obligations or face foreclosure.
According to CoStar Group, in 2011, 138 churches were sold by banks — a record amount. For comparison, in 2008, there were only 24 foreclosure sales of churches.
CoStar Group reports that the number of churches facing foreclosure does not appear to be subsiding. Small to medium sized churches seem to be most affected by the foreclosure crisis. The highest number of foreclosed churches are in California, Georgia, Florida, and Michigan — also some of the hardest hit states in the residential foreclosure crisis, too.
"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 Ziegler, told Reuters News.
Source: “Banks Foreclosing on U.S. Churches in Record Numbers,” Reuters News (March 8, 2012)
Updated: November 23, 2020