Unfortunately, homeowners are the only ones suffering from the threat of foreclosure. Many businesses and non-profit organizations have been hit by the mortgage crisis as well. As the economy continues to challenge all property owners, even houses for worship and practice aren’t safe from the grips of foreclosure.
Guided Into Debt
A recent study reports that more churches are going into default and foreclosure than ever before. Since 2010, 270 churches around the United States have been sold at auction or shut down due to foreclosure proceedings. Compared to the 24 bank sales in 2008, these numbers shine a grim light on the current state of the mortgage industry.
The study also reported that church foreclosures have hit nearly all denominations and religious organizations around the country, spanning the entire demographic map. Small and rural churches appear to be hit the worst, most of which ended up being bought by other church organizations. The study revealed that the biggest culprit in church foreclosures isn’t original mortgages, but bad loans that were taken out in effort to keep the doors open when finances became tight. Ballooning mortgage payments, high interest rates on poor loan terms and continued economic turmoil have left many churches without the ability to repay their debts.