Evangelical Christian Credit Union, Riverside, Calif., has been granted permission by a federal bankruptcy court to foreclose on a 22-acre property owned by the Life Church of God in Christ where Lehman Brothers had a junior mortgage.
The court gave the credit union permission to foreclose both the church’s ownership interest and Lehman’s subordinate mortgage.
The credit union said it holds a $6.6 million matured loan on the property, which was appraised for $2.38 million. Consequently, the credit union said Lehman’s subordinate mortgage has no value and the court agreed.
The court ruling effectively modifies the so-called automatic stay, allowing the credit union to foreclose both the church’s ownership interest and Lehman’s subordinate mortgage.
