U.S Churches: Next Victims of Foreclosure

January 27, 2011 / Elizabeth Buckley, Commercial Property Analyst

The entire country is still staggering from commercial and residential real estate properties falls into foreclosure, but it’s not all, recently U.S churches has become victims of property crisis, according to a study. Since 2008, about 200 U.S churches’ properties have been sized by banks and lenders compared to only 8 in 2006.

U.S Churches: Next Victims of Foreclosure

According to a survey by CoStar Group, religious leader were also swept by the real estate property boom and bust like the people attending worship as U.S churches slowly falls into the hands of lenders.

The survey also stated that a number of U.S churches are now struggling to keep their doors open. Rev. Jesse L. Jackson Sr. said that churches are going to be the next victims of the economic crisis.

The report also stated that during the real estate boom, numerous U.S churches built too big or borrowed too much to cater for richer and bigger congregation, but now, most churches are struggling to pay of their mortgages as collections and membership shrink.

Almost all religious denominations suffered as church donations have declined.

In 2008, the oldest black church— Flat Rock Community Church in Georgia needed to close its doors. Last year, one of the largest churches in the country— Ebenezer AME got in trouble with its lenders and needed to cut off expenses to pay the mortgage.

Troubled U.S churches are mostly in states like Michigan, Florida, Georgia, and California. For Atlanta alone, nearly 200 U.S churches are facing definite foreclosures to lenders, according to Reverend Jackson.

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