Churches are facing foreclosure today as they could not rise
above the temptation of taking easy loans during the boom years. They
wanted to give a new look to their houses of prayer and accommodate
growing members of their congregations.

The bad loans are affecting not only the churches but also the
lenders who did the aggressive lending. The Evangelical Christian Credit
Union had expanded its loans from $225 million to over $1 billion
during the last ten years. Their loan numbers have increased to 7.4%
from 3.6% in one year. Till 2007 it had a clean record without having a
single foreclosure in it portfolio.

The evangelical churches are financed by Ministry Investment Partners
Co. It buys loans from Evangelical Christian Credit Union. It noted
that 13.3% of the loans it held were not performing – it being a spike
of 1.9% from one year previously. The Church Mortgage and Loan Co sought
bankruptcy protection after one third of its loans were in the
foreclosure zone in 2008.

While the lenders either battle or fade the credit lifeline of the
churches are snapping. The value of the properties owned by the churches
have sharply tumbled – with some being less than the loan due amount.
This is making refinancing impossible. The times are without precedent.

Even the wealthiest and famous churches have not been unscathed by
the times. According to a research conducted by Barna Group, half the
churches of the country have been negatively impacted by the economic
downturn. One church out of six is cutting down on their staff.

One of the wealthiest churches in USA is the Episcopal Church. It has
suffered a loss of 1 billion in 2008 according to the Kirk Hadaway of
Congregational Research for the Episcopal Church.

The non-denominational churches are suffering the most. During the
past ten years these churches have been growing the fastest. The
churches tried to attract the young by offering various kinds of
activities and organizing events. They started to construct centres
having health clubs, conference rooms, sports fields as well as cafes.
These houses of God with a dash of modern new looks were located in the
middle of busy commercial centres, beside important thoroughfares and
have little similarity with the churches with steeples that adorn New
England’s countryside. The Churches tried to play many roles and fill up
the cultural gaps.