3/26/2006
Advice from Nashville's leading Financial Aid Advisor Dave Ramsey
Dave Says
By Dave Ramsey
Author of:
Financial Peace and
The Total Money Makeover
"If church mortgage defaults, who is liable?"
Dear Dave,
I attend a small church with about 100 members. There is a $97,000 mortgage at 8.75 percent on the building, and the note was signed only by the pastor. Are the members liable in the event of default?
Charlene via email
Dear Charlene,
Unless you signed the note, you are not liable. If the pastor signed the note personally or on behalf of the congregation it would actually depend on the wording in the note as to who is liable in case of default.
But this whole situation is kind of silly and I’ll tell you why. If everybody in the congregation gave an extra $83 a month in their tithe – that only about $20 more every Sunday – you could have this mortgage knocked out in a year! There’s absolutely no reason for this church to be in debt 12 months from now.
This is a prime example of what happens when a church adopts the same mentality as the rest of the world. The Bible itself warns us that borrower is slave to the lender, Charlene.
- Dave
More About Dave
Dave Says Articles
Dave Ramsey History
Dave Ramsey.com
