Court Clears Way For Evangelical Christian CU To Foreclose On Church
RIVERSIDE, Calif. – Evangelical Christian CU was given permission by a federal bankruptcy court to foreclose on a 22-acre property owned by the Life Church of God in Christ, where Lehman Brothers had a junior mortgage.
The court gave the credit union permission to foreclose both the church’s ownership interest and Lehman’s subordinate mortgage.
The credit union said it holds a $6.6 million matured loan on the property, which was appraised for $2.38 million. Consequently, the credit union said Lehman’s subordinate mortgage has no value, to which the court agreed.
The court ruling effectively modifies an automatic stay, allowing the credit union to foreclose both the church’s ownership interest and Lehman’s subordinate mortgage.