When it
comes to the foreclosure crisis, it has been more than just homeowners that
have been adversely impacted. For church foreclosures, the numbers are
staggering. Since 2010, there have been over 270 churches who have defaulted.
And, in 2011, we have seen banks sell over 138 churches to satisfy their debt.
Across
the United States, there has been a surge in church foreclosures as lenders
move in and seize church property. Since the 2008 financial meltdown, lenders
have increasingly turned their backs on religious organizations and become
unwilling to work with churches to satisfy their liens. According to records
kept by CoStar,
before the financial crisis of 2008, religious institutions had a default rate
of 24 churches in 2008 and even less in the preceding decade. These numbers
show that every single segment of our society is reeling from the repressions
of the housing market crash.
No One is Safe
The
numbers do not lie, and every religious institution across the board has been
hit with the backlash of the financial crisis of 2008. Small to medium
congregations have seen the brunt of the storm, but larger congregations are
not immune. Oftentimes, struggling churches will have to make the difficult
decision to be bought by other churches. In addition, no state is safe from the
crisis. Large states like Florida and California have seen record numbers of
their churches face foreclosure and be auctioned off.
The Rules of the Game
Churches
are not like single-family home loans. The rules and guidelines governing them
are unique. Typically, a church receives a commercial loan with a maturity date
of five to ten years. In addition, if this is a new construction loan, the
upfront building cost is floated and then locked in once construction has
completed.
But, what
happened with church loans is the same as single-family properties. The values
were based on pre-meltdown prices and once prices dropped, churches found
themselves unable to secure new or restructured loans. Plus, many congregation
members lost their jobs and their financial ability to tithe, which put
additional strain of church coffers.
We Are Here to Help
Indigo
Mortgage was built on the bedrock of Christian principles and stands ready to
assist churches and other religious organizations with all of their building
loan needs. We have recently partnered with a firm headquartered in Florida
that specializes in church building loans. Our rates and terms are competitive,
and we can finance renovations, new buildings, and expansions.
Our company’s motto is: “Because nobody cares more
about your mortgage loan.” And, that
is especially true of the faith we have in our values-based operating
principles that guide our decisions and actions to help provide the appropriate
loan solution for each of our customers.
Please
call one of our loan specialists at 505.836.5700 to discuss your church’s
unique financial situation and discover the many ways we can help.
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