Tuesday, February 1, 2011

Jerry Johnston's First Family Church facing foreclosure

Posted By on Tue, Feb 1, 2011 at 9:00 AM

click to enlarge The Rev. Jerry Johnston's church is having some financial issues.
  • The Rev. Jerry Johnston's church is having some financial issues.

The Rev. Jerry Johnston's First Family Church is facing foreclosure. The Kansas City Star reported today that Regions Bank wants the Overland Park megachurch to pay more than $14 million in mortgage and other costs or the bank will foreclose on the property, sell it and use the proceeds to pay off the church's debt.

The church issued a statement on its website blaming the foreclosure on the economy and citing a Wall Street Journal report about similar instances at churches across the country. 

"Your church leadership, pastors, elders, deacons, and ministry leaders

have been praying and in a spirit of unity," the statement said. "We are

confident to resolve this situation while all ministries and worship

services continue as scheduled on our campus."

Here are the highlights of the statement:

* FFC remains proactive with the lender in working out a successful financial debt restructuring that will bridge the challenges of the current situation.

* The bank filing was something the Church was expecting, as it is standard Administrative Process required of lenders while working to restructure the debt.

* FFC has demonstrated by internal financial management that it has the capacity to enter into a restructuring with Regions that will repay this debt in full. We are confident that a resolution will be accomplished.

* This development toward First Family Church by Regions is consistent with the Bank's actions since they accelerated the mortgage maturity from 30 years to 5 years recently forcing this situation even while First Family Church was current in its obligations. We recognize banks today are under immense pressure by federal regulators. These are uncertain economic times.

* While FFC continues negotiations with Regions Bank, the mission, ministries, worship services, and Conquest Initiatives will continue without interruption on our campus. We will resolve this matter to the satisfaction of the bank and First Family Church.

* Please continue to pray and rest assured your Elder Board is working diligently to resolve this matter. Church members are encouraged to contact the Elders and Chief Financial Officer of First Family Church at the church office with any questions.


The Star reports that foreclosure could take anywhere from four to six months; the bank sent a letter to the church in September seeking payment. 

"This letter provides notice to you that you failed to pay the obligations within ten days of that maturity date, and the entire amount of the obligations is now due and payable," the letter said, according to the Star.

The Star reported in 2007 that church members were concerned over how money was being spent. The Kansas attorney general investigated the matter but nothing ever came of it. However, the IRS did go after $107,000 in unpaid payroll taxes from 2007, but the church paid those. The church does owe Johnson County $9,867.80 for unpaid taxes in 2010, according to the Star.

Tags: , ,

Comments (13)

Showing 1-13 of 13

Add a comment

 
Subscribe to this thread:
Showing 1-13 of 13

Add a comment

Most Popular Stories

Slideshows

All contents ©2014 Kansas City Pitch LLC
All rights reserved. No part of this service may be reproduced in any form without the express written permission of Kansas City Pitch LLC,
except that an individual may download and/or forward articles via email to a reasonable number of recipients for personal, non-commercial purposes.

All contents © 2012 SouthComm, Inc. 210 12th Ave S. Ste. 100, Nashville, TN 37203. (615) 244-7989.
All rights reserved. No part of this service may be reproduced in any form without the express written permission of SouthComm, Inc.
except that an individual may download and/or forward articles via email to a reasonable number of recipients for personal, non-commercial purposes.
Website powered by Foundation