YOU ARE CREATED TO PROSPER PT. 2
Spiritually Sound, But Many Churches Literally Bankrupt
Posted Dec 23, 08 12:16 PM CST in US
(Newser) – In trying times, many turn to the church to ease anxieties, but even houses of God haven’t been spared the wrath of recession, the Wall Street Journal reports. A church building boom begun in the 1990s has left many congregations overextended, and with the economic slowdown taking a sizable bite out of donations, many are turning to Chapter 11 bankruptcy.
Long considered good credit risks, carrying little or no debt and a reliable income, the nation’s 335,000 churches are facing foreclosures at rates lenders haven’t seen before. “There have been too many churches with a ‘build it and they will come’ attitude,” one lender said. “They had glory in their eyes that wasn’t backed up with adequate business plans and cash flow.”
It is vitally important that we stop thinking that the prosperity message is for the purpose of getting rich quick, and leaving the work of God to fend for itself. When churches are filing for bankruptcy this should alarm us.
Ok, let do some math. If the church worldwide were to spread what we have among the body of church we would then see the principal of the fishes and loaves at work. What I mean by that is once everything was evenly distributed there would be much still left over. Jesus told to the disciples to gather up the fragments. I believe the same thing would happen in this day and time.
When the world sees a church in financial trouble, this is a bad testimony. How can we then win them if we are messed up?
Historically, churches were wary of debt, and many old-line congregations have owned their buildings free and clear for decades. But borrowing by churches became more common in the 1990s, reaching $28 billion nationwide in 2006, including mortgages, construction loans and church bonds, according to Lambert, Edwards & Associates, a consulting business in Grand Rapids, Mich. New companies and nonprofit organizations focused on church lending sprang up, as did real estate investment trusts and other bundles of church loans, which were sold to investors.
They bundled church loans and sold them to investors and we wonder why these financial "powerhouses" are facing bankruptcy and many homeowners (and apparently churches too) are facing foreclosure. Since when did church loans become big business in the eyes of the financially savvy? Already, 254 churches have been foreclosed on and the numbers of foreclosures are predicted to increase with at least 25% of all churches holding mortgages on their properties. I wonder how many of these church loans are toxic, subprime or adjustable rate mortgages? It is definitely a sign of the times when religious congregations are being evicted from their churches
Pt. 3 will be later.
Posted Dec 23, 08 12:16 PM CST in US
(Newser) – In trying times, many turn to the church to ease anxieties, but even houses of God haven’t been spared the wrath of recession, the Wall Street Journal reports. A church building boom begun in the 1990s has left many congregations overextended, and with the economic slowdown taking a sizable bite out of donations, many are turning to Chapter 11 bankruptcy.
Long considered good credit risks, carrying little or no debt and a reliable income, the nation’s 335,000 churches are facing foreclosures at rates lenders haven’t seen before. “There have been too many churches with a ‘build it and they will come’ attitude,” one lender said. “They had glory in their eyes that wasn’t backed up with adequate business plans and cash flow.”
It is vitally important that we stop thinking that the prosperity message is for the purpose of getting rich quick, and leaving the work of God to fend for itself. When churches are filing for bankruptcy this should alarm us.
Ok, let do some math. If the church worldwide were to spread what we have among the body of church we would then see the principal of the fishes and loaves at work. What I mean by that is once everything was evenly distributed there would be much still left over. Jesus told to the disciples to gather up the fragments. I believe the same thing would happen in this day and time.
When the world sees a church in financial trouble, this is a bad testimony. How can we then win them if we are messed up?
Historically, churches were wary of debt, and many old-line congregations have owned their buildings free and clear for decades. But borrowing by churches became more common in the 1990s, reaching $28 billion nationwide in 2006, including mortgages, construction loans and church bonds, according to Lambert, Edwards & Associates, a consulting business in Grand Rapids, Mich. New companies and nonprofit organizations focused on church lending sprang up, as did real estate investment trusts and other bundles of church loans, which were sold to investors.
They bundled church loans and sold them to investors and we wonder why these financial "powerhouses" are facing bankruptcy and many homeowners (and apparently churches too) are facing foreclosure. Since when did church loans become big business in the eyes of the financially savvy? Already, 254 churches have been foreclosed on and the numbers of foreclosures are predicted to increase with at least 25% of all churches holding mortgages on their properties. I wonder how many of these church loans are toxic, subprime or adjustable rate mortgages? It is definitely a sign of the times when religious congregations are being evicted from their churches
Pt. 3 will be later.
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