Evangelical Christian CU Seeks to Foreclose on Property Tied to Lehman Bankruptcy
The $1 billion Evangelical Christian Credit Union of Brea, Calif., plans to argue at a May 19 hearing in U.S. Bankruptcy Court in New York that it should be allowed to foreclose on a $6.6 million matured loan secured by a parcel of 22 acres in Riverside, Calif., owned by the Life Church of God in Christ.
The credit union wants the court to allow it to foreclose both the church’s ownership interest and Lehman’s subordinate mortgage.
The hearing is on what is called a lift stay motion, and the goal is to move the process that has been bogged down by the drawn out bankruptcy of the financial giant Lehman Brothers.
The credit contends that the property has been appraised at $2.38 million and therefore the Lehman mortgage has no value.