Churches and Restaurants Losing Property

On January 25, 2011, The Wall Street Journal reported in "Churches Find End is Nigh" that churches are losing their sanctuaries to foreclosure because their congregations are shrinking in donations due to unemployment, higher utilities rates, and housing crisis, making them unable to pay mortgages. According to the article, since 2008, banks foreclosed nearly 200 religious facilities. Churches face bankruptcy with their financial struggles. Many churches ran into financial troubles when they borrowed to build larger houses of worship without people's contributions to pay. No longer considered safe borrowers with weekly cash flow from tithing, lenders are foreclosing on church buildings and no longer offering them upfront money. On January 20, 2011, The Wall Street Journal reported in "Arby's Put on the Auction Block" that Wendy's/Arby's Group, Inc. plans to put the sandwich chain up for sale. Arby's, known for its roast beef, is having financial troubles stemming from consumers looking for "value" deals and soaring global food prices for meat and sugar. With churches and restaurants losing their spaces, there is trickle down to counties, cities, towns, unable to collect property taxes. Without tax income, a municipality can go bankrupt, or have to depend on neighboring cities for public services, such as fire protection. For example, in cash strapped Vallejo, it may take up to an entire day for the police to respond to a burglary. The amount of a real property's tax bill may be based on the (1) property's taxable assessment and (2) tax rates of the taxing jurisdictions where the property is located. The county assessor assesses property based on market value less any applicable tax exemptions. The market value is based on the sales price for similar real property in the area. When a person bids up the market price in a sale, the person ends up paying more taxes. In California, the property may be assessed when there is a change of ownership. Rinne Legal helps people with bankruptcies, estate planning, and loan modifications in Contra Costa County, Sacramento County and Solano County. Rinne Legal has offices in Walnut Creek, Fairfield, Sacramento and Elk Grove. Contact Rinne Legal for a free consultation. These blog posts are for informational purposes only and not intended nor should be construed as legal advice. These blog posts may be considered attorney advertising in some states. Prior results described on blog posts do not guarantee similar outcomes in future cases. There is no intent to create an attorney-client privilege or relationship with anyone accessing information on this blog. Authors posting on this blog are not obligated to reply to any emails seeking legal advice. The information contained on this blog is not intended to be a solicitation.

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