Pastor Battles Babylon in Church Bankruptcy
Benny Perez is not wrestling against flesh and blood—but he is wrestling.
The senior pastor of The Church of South Las Vegas, a 4,000-member charismatic megachurch in Henderson, Nev., is battling a Babylonian system to save its campus from foreclosure.
“This is a spiritual battle. The enemy loves to stop churches by using money. We are one building away from feeding and clothing more people, reaching more youth and children, and helping more prostitutes,” Perez says. “Our church would probably double in another year if we could get the new building up. It’s been a war for three years. This is not about a bank. It is a principality and a power standing between us and the Promised Land.”
Here are the ugly details: The Church of South Las Vegas paid $4.5 million for 3.3 acres of Las Vegas Valley land three years ago. In March, that land appraised for $475,000—a 90 percent decline. The church owes a combined $7.7 million on the property and land. It appraised for $2.3 million. So, like many property owners in Las Vegas—one of the hardest hit real estate markets in the nation—Perez is upside down … $5.4 million upside down.
Perez says the real battle began when the bank wanted to collect $1.8 million in church offerings earmarked for a building project for the fast-growth church. When Perez tried to negotiate with the bank to reduce the principal of the $7.7 million loan in line with actual property values, the bank refused.
After prayer and legal counsel, The Church of South Las Vegas decided a strategic default was the best stewardship move. The church stopped making payments on the loan on May 1. The bank subsequently filed suit against the church on June 17. And in July, the church filed for Chapter 11 bankruptcy in effort to save its campus.
“People are asking if it is biblical to do a strategic default and declare bankruptcy,” Perez says. “Our answer is we will leave that to smarter people. All I know is that for us as a church, it is a stewardship issue. Would you keep throwing thousands of dollars into a black hole? The bank wants to milk our savings and everything we have until we can’t pay anymore. Bankruptcy was a business decision.”
Beyond the mortgage, The Church of South Las Vegas has no debt. By filing for Chapter 11 bankruptcy protection, the church doesn’t have to leave the property—at least for now—because foreclosure is stayed. Perez still hopes to negotiate with the bank. But the reality is that The Church of South Las Vegas could wind up losing its current home.
“Somebody needs to stand up to this and I am standing up,” Perez says. “Other pastors facing foreclosure are calling me asking what they should do. I can’t tell them what to do about the financial situation, but I do tell them not to walk in fear and not to keep throwing money away to these banks. You have rights and hopefully these banks will come to their senses and start working with churches that are helping the communities. This church isn’t a business. This is my life. This is my calling. There are lives at stake.”
(Source: charismamag.com)
