It is not only businesses and individuals who are being squeezed by the difficult economy, but churches as well. Generally the lending market to churches is a good one. They have a steady cash flow from tithing members, and feel a moral obligation to pay off their debts. But Churches are run by people. The people running the churches get caught up in expansionary bubbles as much as any one else.
Residential and commercial real-estate owners aren't the only ones losing their properties to foreclosure. The past few years have seen a rapid acceleration in the number of churches losing their sanctuaries because they can't pay the mortgage.
Just as homeowners borrowed too much or built too big during boom times, many churches did the same and now are struggling as their congregations shrink and collections fall owing to rising unemployment and a weak economy.
In many cases, churches ran into trouble after borrowing to build bigger houses of worship needed to accommodate growing congregations in once-booming housing markets. from Shelly Banjo, Churches find End is Nigh, Wall Street Journal.