OCEANSIDE, Calif. – In another sign of the region’s economic downturn, Evangelical Christian CU, known for its financing of churches throughout the country, was forced to foreclose on and take ownership of one of the churches it finances, Ambassador Family Church.
The credit union, which has more than 1,700 ministries among its members, foreclosed on the church property last week and plans to sell it over the next two weeks, according to Jac La Tour, spokesman for the $1.2 billion credit union.
“It’s really rare for us,” said La Tour of the church foreclosure. “The loan losses here are minuscule and this credit union works with the ministries when they take the loan out to make sure it’s the right thing to do and that they can afford to repay the loan.”
Evangelical Christian reported just 0.13% loan losses for 2007, less than a fourth of the industry average. The credit union reported strong net income of $16.9 million for 2007, and $4.6 million for the first quarter of 2008.
The Ambassador Family Church appears to owe more than $5 million on the property, which includes a seven-year-old church with a capacity of more than 1,000, and a hillside church campus. The assessed value of the property was $5.6 million in January.
The credit union’s La Tour declined to confirm the debt, saying it was a confidential matter with one its members.
A press release issued recently noted rising construction costs for the campus, declining membership and the pastor’s recent divorce as contributing to the church’s troubled finances. Church officials could not be reached for comment.
Credit union representatives are negotiating with church officials on an accommodation, said La Tour. “Right now, we’ve been in discussions and negotiations with the church regarding a month-to-month rental option,” he told The Credit Union Journal yesterday.
The property, he said, eventually will be sold, preferably to another church.
