Faith

Banks Are Foreclosing on Churches in Record Numbers

New data shows a shocking trend: Banks are foreclosing on religious institutions at an alarming rate. Much like individuals who lose the capability to continue paying their mortgages, churches, too, are feeling the financial crunch. In fact, since 2010, more than two hundred houses of worship have experienced foreclosures.

Banks Are Foreclosing on a Record Number of Churches

Reuters has more about the crisis, which has hit a diversity of churches:

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.

Banks Are Foreclosing on a Record Number of Churches

Photo by Shutterstock

Not surprisingly, the highest proportion of church closures occurred in California, Georgia, Florida and Michigan — the states that were hardest hit by the home foreclosure crisis. Reuters continues, explaining the factors surrounding the record number of incidents:

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.

Then after the financial crash, many churchgoers lost their jobs, donations plunged, and often, so did the value of the church building.

“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,” explains Scott Rolfs, the managing director of Religious and Education finance at Ziegler (an investment bank).

Continue reading about this troubling trend here.

(H/T: Reuters)

Comments (101)

1 2
  • Chuck Stein
    Posted on March 9, 2012 at 9:03pm

    A big bank forecloses on a church & gets the property. NOW . . . what’s the bank going to DO with it? It has to sell it to another church if it’s going to get the most money possible. The list of prospective buyers has to be pretty small. I see the banks losing more (percentage-wise) on the churches than on housing.

    Report Post »  
    • an.atheist
      Posted on March 9, 2012 at 9:23pm

      You lack any understanding of economics.

      an.atheist  
    • djp70124
      Posted on March 9, 2012 at 10:36pm

      You can get anything you want at Alice’s Restaurant,excepting Alice!

      Report Post »  
    • Chuck Stein
      Posted on March 10, 2012 at 2:56am

      @ An.atheist
      I see that your economics understanding has advanced well past my antiquated “law of supply and demand” nonsense. Good for you. Other atheists like Lenin and Mao made similar great leaps forward.

      Report Post »  
    • Gonzo
      Posted on March 10, 2012 at 10:05am

      Chuck is right Atheist, banks now own millions of houses, office buildings, golf courses and now churches and they don’t have buyers. All they can do is sit on them and hope things get better so they can sell them or sell them now for a loss.

      Report Post » Gonzo  
    • Salamander
      Posted on March 10, 2012 at 10:44pm

      They will turn them into Condos, like all the ‘churches’ in Montreal–nothing left but the facade!

      Report Post »  
    • SovereignSoul
      Posted on March 11, 2012 at 1:39pm

      Darn churches need to get a real job and pay their bills, like the rest of us!

      Report Post » SovereignSoul  
  • FANGS
    Posted on March 9, 2012 at 6:34pm

    This is all part of obama the pig’s plan. Obama and the Unions want a Godless America so that no one has a soul. No morals, No Values. America must take back America NOW ! We must have a General call to arms and take out the left.

    Report Post »  
    • an.atheist
      Posted on March 9, 2012 at 6:42pm

      America was founded away from any religion. Christians decided to try and high jack it, and thankfully people are finally standing up to resist it. The founding fathers would be sickened by the attempt of your religions ideology to seize control over all other beliefs.

      an.atheist  
    • Dadwithallthecoolstuff
      Posted on March 10, 2012 at 8:20am

      AN Athiest…please go back to the rock you crawled out from..Your ignorance about the founding of the United States is deafening.The original settlers came here and our Founders came to practice the RELIGION of thier choice.Where do you get off spreading the lie that they came here to escape religion ?..If thats your thing then I am positive those of US who have no place in our lives for you and your kind would gladly pay for the 1 way ticket the hell out of here for you…choose the 3rd world shithole you want to go and I will personally hand you the ticket and drive you to the airport to see that you get on that plane and never return.

      Report Post » Dadwithallthecoolstuff  
    • SovereignSoul
      Posted on March 11, 2012 at 1:46pm

      The founding fathers came here; conquered and enslaved the native inhabitants. I‘m sure that was the ’christian’ thing to do.

      Report Post » SovereignSoul  
  • KingCanon
    Posted on March 9, 2012 at 5:19pm

    Sad, but the truth is many church buildings have
    become a Hotel for Saints and are no longer a
    Hospital for Sinners.

    We need to understand that these are Laodecian
    times in which we live. Plus, when GOD cleans
    house HE starts at the top and works down. Expect
    more of this in the future!

    Report Post » KingCanon  
  • idarusskie
    Posted on March 9, 2012 at 4:38pm

    I believe the LDS Church opens 250 buildings a day world wide. All paid for. Let the preachers preach for free then they could have a building.

    Report Post »  
  • ldaopines
    Posted on March 9, 2012 at 3:58pm

    We need to be more than holiday congregations and tithe. Churches are the last stand. I’m as guilty as the next person of not regularly attending and tithing, but that’s going to end now.

    Report Post »  
    • db321
      Posted on March 9, 2012 at 5:35pm

      I would be happy if Christians just voted for Godly Principles – not commit your vote just to get Free Obama Care, Welfare, Food Stamps, or Birth Control.

      A Vote the right way you will still have God and entitlements – A vote the other way and you will lose God and Obama will soon take your entitlement away. An Obama 2nd term – You will then be taking King Obama’s money – so don’t expect to keep getting Govt Hand Outs.

      Report Post » db321  
  • LMW
    Posted on March 9, 2012 at 3:56pm

    I’m sure there are a lot of great churches but most have become mired in the idea of being bigger and having more glidder is better. When you have a church that needs more then a few thousand a month to survive and pay their pastor you are no longer serving God but trying to impress man with your wealth and worth. Our church is a poor church as to mans ways as our pastor works full time and also does his duty to God. We support five smaller churches all over the world. We have no fancy building nor glidder, just lots of love of God and each other. We help each other and have been blessed. I had given up on many churches as their worry was more to what people thought of them then to share in Gods bounty that he has given us. I thank God each day for letting me find a church that puts children and others in third world countries before its self and gives to others that have nothing. Bibles are good but rice and meat can do Gods work along with bible studies. A full stomach is a chance to learn of Gods ways and learn with out having the pain of hunger.(Jesus fed the people so they could hear the words) Our pastor makes a trip each year to visit each church to be sure the families come first. We don’t need some multi million dollar orginazation to do our work as we do it ourselves with locally trained people who are part of the villages and work themselves. Believe it or not it does not take a lot to do this as some would have you believe.

    Report Post »  
    • antiepa
      Posted on March 10, 2012 at 8:46am

      Feeding a body’s pleasure entices its participation, but saving its soul’s salvation must always be the primary objective. A favorite Lenten prayer:

      BEHOLD, O good and sweetest Jesus,
      I cast myself upon my knees in Thy sight,
      and with the most fervent desire of my soul
      I pray and beseech Thee
      to impress upon my heart
      lively sentiments of faith,
      hope and charity,
      with true repentance for my sins
      and a most firm desire of amendment:
      whilst with deep affection and grief of soul
      I consider within myself
      and mentally contemplate Thy five most precious Wounds,
      having before mine eyes that which David, the prophet,
      long ago spoke in Thine own person concerning Thee,
      my Jesus: “They have pierced My hands and My feet,
      they have numbered all My bones.”

      Report Post » antiepa  
  • Van Damage
    Posted on March 9, 2012 at 3:52pm

    In case noone has noticed foreclosures are up on every type of building. Houses, commercial buildings and churches. this story is misleading. I sure would like to see the flame of truth on a site that claims to be the the flame of truth. I feel this story is meant to aggitate the masses. So much for clear reporting

    Report Post » Van Damage  
  • howiekwix1
    Posted on March 9, 2012 at 3:39pm

    The demise of the Church was forwarned about back in 2009. Read this article about the POTUS destroying the Gentile Economic system and the Church supported by that system. Good Read: http://www.howieunveilsgodsshield.com/Blog.html?entry=barak-the-gentiles-and-revelations

    Report Post »  
  • Magyar
    Posted on March 9, 2012 at 3:18pm

    FACT: Socialism, Marxism, Fascism cannot flourish with those pesky Christians affirming their trust in Jesus Christ as their Lord and savior–INSTEAD of in the government. So, off with their heads, down with their churches! Need I remind you of the current condition of most of Europe? They moved away from faith and towards a secular existence…. MMMM? Obumler’s regime is trying to force the same result! WAKE UP AMERICA! I pray for all of you.

    Report Post »  
  • Dave.the.Blaze
    Posted on March 9, 2012 at 3:12pm

    As Captain Crunch notes below, the economy and lack of support by church goers has impacted churches heavily. As a Catholic I’m more in tune with it, but I’ve seen a few churches close and congregations combined around here. That never happened when I was a kid.

    Report Post » Dave.the.Blaze  
  • Arcangel Michael
    Posted on March 9, 2012 at 3:00pm

    Jesus, I trust in You

    http://thedivinemercy.org/message/devotions/chaplethistory.php

    http://www.youtube.com/watch?v=AySdEJx50Z0&feature=related

    Report Post » Arcangel Michael  
  • TH30PH1LUS
    Posted on March 9, 2012 at 2:58pm

    Meanwhile Obama is using your hard earned money to build mosques: http://www.washingtontimes.com/news/2010/aug/10/tax-dollars-to-build-mosques/

    Report Post » TH30PH1LUS  
  • DUGinFLA
    Posted on March 9, 2012 at 2:40pm

    And I forget what the number is number and % wise of Mosques that have opened in the US since 9/11. It’s some incredible number. I‘m sure the banks won’t foreclose on them. Just sayin’…..

    Report Post » DUGinFLA  
    • lynn4
      Posted on March 9, 2012 at 2:49pm

      increase of 73% since 9?11

      Report Post »  
    • Dave.the.Blaze
      Posted on March 9, 2012 at 3:00pm

      I’d guess that American Muslims are unlikely to build mosques unless they know they have a more or less guaranteed parish. At least where I live, I’ve seen quite a few Christian ministers start small churches only to see them fail or at least become smaller.

      Report Post » Dave.the.Blaze  
  • JGraham III
    Posted on March 9, 2012 at 2:27pm

    I have mixed feelings on this one. On one hand why does a bank want a church building, as it is rather singular in its usage. On the other, why on God’s green earth is a church running to the System to finance a building that the early Church would have not needed nor wanted? A building is a building. It is just as easy if not easier to rent a large building to use on occasion and meet in people’s homes for most other needs. Far too often a large fancy building (replete with heated jaccuzi for a baptismal font) is a burden on the congregation’s funds, especially since the economy has taken a landslide. The Church in America has been far too busy trying to look and act like the world for the last 50 years instead of heeding the words of the Lord, “wherefore come out from among them and be ye separate, saith the Lord, and touch not the unclean thing and I will receive you.”
    If you consider that the duty of the Church is to not only spread the Gospel, but to care for the widows and the orphans as James declares, them large monthly payments for a building loan is a violation of that as it takes huge sums from the collections and pays interest to Babylon as it were. Just thinking things over…

    Report Post »  
  • ChildofJesus
    Posted on March 9, 2012 at 2:26pm

    Home church might be come back, the early church thrived with meeting in houses and places outside.

    Report Post »  
    • This_Individual
      Posted on March 9, 2012 at 2:41pm

      I would highly recommend it.

      Report Post »  
    • Captain Crunch
      Posted on March 9, 2012 at 2:47pm

      Home churches have been around for a long time and are gaining popularity, at least where I live. Less expensive, more personal, and how the first believers did it. Banks are not at fault here. Two things are happening: the economy is bad and many people don’t tithe.

      Report Post »  
    • JD2020
      Posted on March 9, 2012 at 3:02pm

      Many HOA covenants and city ordinances have restrictions on bible study/big meetings in private homes. Remember the bible study group that was fined for meeting in their own home?

      http://www.theblaze.com/stories/california-city-fines-couple-for-holding-bible-study-in-their-home/

      Report Post » JD2020  
    • TheLiberalsAreComing
      Posted on March 9, 2012 at 3:19pm

      Until Obama finds a way to outlaw religious practice in the home.
      Nothing will stop King Hussein Obama I unless he’s voted out!

      Report Post »  
    • ChildofJesus
      Posted on March 9, 2012 at 4:44pm

      Christians even in the underground church have always found ways to meet. Even Jesus himself spoke out in the open places and houses.

      Report Post »  
    • pamela kay
      Posted on March 9, 2012 at 5:28pm

      CHILDOFJESUS; don’t you remember the story where the Gov was cracking down on Bible studies conducted in homes. Do you think they will allow home churches? They don’t even want to allow churches to conduct in schools etc. I bet they won’t foreclose on any other religeious buildings. What about that Mosque that was behind on payments? The one that threw a fit about the location near ground zero.

      Report Post » pamela kay  
    • ChildofJesus
      Posted on March 9, 2012 at 5:47pm

      Wasn‘t a member then so I’m sorry ^No, but I do know that secret is the key. Knowing what time of night to come, and following a drill to get out should athorities SP? Come by.

      Report Post »  
  • This_Individual
    Posted on March 9, 2012 at 2:19pm

    It looks lik those “evil bankers” have it out for them Christians.

    Report Post »  
    • an.atheist
      Posted on March 9, 2012 at 2:55pm

      Instead of saying “evil banks” maybe you should start saying “evil churches”. You believe God has a plan for everything right? Maybe these churches are the ones who are the evil ones.

      Report Post » an.atheist  
    • Faith1029
      Posted on March 9, 2012 at 3:03pm

      AN.ATHEIST: “Instead of saying “evil banks” maybe you should start saying “evil churches”. You believe God has a plan for everything right? Maybe these churches are the ones who are the evil ones.”

      The Apostle Paul said of those who do not love the truth in the last days. He said that God would send a “deluding influence” upon them “so that they will believe what is false, in order that all may be judged who did not believe the truth, but took pleasure in wickedness.” That‘s precisely what we’re witnessing in the earth today.

      Report Post »  
    • Walkabout
      Posted on March 9, 2012 at 3:28pm

      I think church going will change. Some people for some of the time will attend virtual churches. I believe they already are. Later they would transition to a bricks & mortar church. Some pastors will have a flock that they interact with online. Some people travel a lot due to business. The internet is a boon to them. Everything does not have to be bricks & mortar

      My guess is that some weaker churches went. Well, people will try again. They will reform a church or join another congregation.

      I’ve seen a church building sold & eventually it became a mosque. Maybe that will happen to ‘an.atheist’. He’ll say ya the church is gone & then wake up days later to hear the call to prayer coming from the old church building.

      Be careful what you wish for ‘an.atheist’.

      Report Post »  
    • an.atheist
      Posted on March 9, 2012 at 3:29pm

      That is such an open ended statement. You could interpret that in almost any way. In my eyes the Church are the ones who are the deluding influence.

      Report Post » an.atheist  
    • This_Individual
      Posted on March 9, 2012 at 3:33pm

      AN.ATHEIST, I am not Christian, so your assumption that I would say that God has a plan for everything is incorrect. What I do believe in, is the right of people of all religions, faiths, and beliefs to live in peace without being limited in their practice (as long as its peaceful and does not assume to make laws limiting the freedoms of others).

      Report Post »  
    • SovereignSoul
      Posted on March 11, 2012 at 1:55pm

      @THIS_INDIVIDUAL You said “What I do believe in, is the right of people of all religions, faiths, and beliefs to live in peace without being limited in their practice (as long as its peaceful and does not assume to make laws limiting the freedoms of others).

      Are there any religions that fit this bill?

      Report Post » SovereignSoul  
  • SquidVetOhio
    Posted on March 9, 2012 at 2:18pm

    The banks know there’ll be no bail out for them! Better forclose now and try to recoup some money.

    Report Post » SquidVetOhio  
  • Just in time
    Posted on March 9, 2012 at 2:16pm

    If you remove religion, then the masses will depend more and more on the Govt. Guess who said that.

    Report Post »  
  • Brooke Lorren
    Posted on March 9, 2012 at 2:10pm

    I’m glad that my church is debt-free. We’re saving for an expansion, and won’t buy it until we can afford it.

    Report Post »  
  • SpankDaMonkey
    Posted on March 9, 2012 at 2:09pm

    .
    One would think President Jesus Obama would step-in and bailout his Fathers Houses…..

    That was a Joke…..

    Report Post » SpankDaMonkey  
  • Silversmith
    Posted on March 9, 2012 at 2:09pm

    More info on this would help clarify what we are seeing here. Are they being foreclosed upon in a greater percentage than other types of foreclosures? My skepticism has risen in all things I read these days.

    Silversmith

    Report Post » Silversmith  
    • lukerw
      Posted on March 9, 2012 at 2:18pm

      If you were Rich… how many Churches would you buy… and what would you do with them? How can their Value be equal, or greater, than their Mortgage?

      Report Post » lukerw  
    • CharlesMartel
      Posted on March 10, 2012 at 4:10pm

      Many old churches are located on prime real estate.

      The banks might be motivated to foreclose for sale of the land, not the buildings. Many of those churches in financial trouble have older, more expensive to maintain, buildings that would be removed.

      Report Post » CharlesMartel  
  • mike_trivisonno
    Posted on March 9, 2012 at 1:58pm

    Who needs churches when Federally funded mosque construction has mushroomed.

    There is no Jihad. Go back to sleep. Dhimmitude is good. Go back to sleep.

    Islam is peace.

    Report Post » mike_trivisonno  
    • lukerw
      Posted on March 9, 2012 at 2:08pm

      Why would a Bank foreclose upon a Church? — It makes no sense, as who wants to buy a Church… except… as part of a Political Agenda!

      You are Right!

      Report Post » lukerw  
    • Locked
      Posted on March 9, 2012 at 2:47pm

      “Why would a Bank foreclose upon a Church?”

      Because the church took their money and used their building as collateral?

      There’s a reason the Bible warns about moneylenders.

      Report Post »  
    • mike_trivisonno
      Posted on March 10, 2012 at 7:16am

      The muslims, who do not approve of Western style banking, has infiltrated financial institutions and have infected them with Sharia, manipulated them to advance Islam, and have used them as tools of their Jihad to destroy non-muslims.

      Our banking system and our financial institutions are utterly abhorrent to the muslims. They have done as much as they can to usurp them and turn them into the tools of Jihad.

      The churches thought they were dealing with the known quantity of traditional Western financial institutions, which have served us nicely for centuries, when in actuality they are the targets of financial jihad.

      Just as the Jihad speeds through our political body, it also speeds through our financial institutions.

      Report Post » mike_trivisonno  
    • rappini
      Posted on March 10, 2012 at 2:22pm

      Everything I learned about Islam I learned on 911.

      Report Post » rappini  
  • Snowleopard {gallery of cat folks}
    Posted on March 9, 2012 at 1:57pm

    Another move by Obama and his thugs; I imagine that those churches supporting his ‘social justice’ farce are left alone.

    Report Post » Snowleopard {gallery of cat folks}  
    • Dave.the.Blaze
      Posted on March 9, 2012 at 2:04pm

      The banks who hold the property notes are foreclosing on these churches, not the Obama administration. You may want to reread the article above.

      Report Post » Dave.the.Blaze  
    • Dave.the.Blaze
      Posted on March 9, 2012 at 2:11pm

      I hope the banks allow both these churches and homeowners to stay in their places during the foreclosure process. I know people have a knee-jerk reaction of “if you can’t pay then get out,” but it does communities no good to have vacant buildings and homes.

      Report Post » Dave.the.Blaze  
    • Snowleopard {gallery of cat folks}
      Posted on March 9, 2012 at 2:19pm

      @Dave – given the continuous methodology of threats and intimidation for coersion purposes of Obama upon the banks/combined with his offensive against faiths that will not bend to his whims I can honestly see the admin pressuring the banks to be ruthless on the churches or “suffer the consequences.’

      Report Post » Snowleopard {gallery of cat folks}  
    • JP4JOY
      Posted on March 9, 2012 at 2:21pm

      DAVE
      Do you think the banks won‘t do the government’s bidding? So much stuff is happening “behind the curtain” why wouldn’t this just be another page in the agenda?

      Report Post » JP4JOY  
    • Dave.the.Blaze
      Posted on March 9, 2012 at 2:38pm

      JP & Snowleopard, I would argue that churches shouldn’t be treated any differently than homeowners. There have been millions of foreclosures, so it’s natural some churches would be caught up in it. Still, I would like to see people remain and perhaps rework their mortgages as opposed to having vacant buildings.

      Report Post » Dave.the.Blaze  
    • USACommoner
      Posted on March 9, 2012 at 3:34pm

      Dave, go stick your head back in the sand. Everything will be better tomorrow…I’ll bet your life, liberty, and pursuit of happiness on it.

      Report Post » USACommoner  
    • mike_trivisonno
      Posted on March 10, 2012 at 7:18am

      “… I imagine that those churches supporting his ‘social justice’ farce are left alone…..”

      Indeed, all of the mosques (garrisons) are left alone to quietly stockpile weapons and train soldiers.

      Report Post » mike_trivisonno  
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