Q: Dissolving church that owes mortgage. Are we still liable if holder calls mortgage and sells for more than is owed?
Church is incorporated and registered as religious corporation.yes, we are looking to dissolve and realize this requires court proceedings. The membership is next to nothing. Pastors health is seriously diminishing. The mortgage is paid monthly and is being held by the original owner of the building, we are already 3 months behind and are worried if they see we announce the church is closing they will immediately call in what is owed. We dont want to make anything off the building and are happy to give it back. It's worth well over 100 thousand and we only owe another 14000. If they take it back and sell it, are we still liable to give them that 14000 even though we are broke and dissolving? Or are we only liable for the difference if they couldn't get that much?
A: This is actually a little more complex than you make it. Is church a registered religious corporation? Are you looking to dissolve the corporation? It may require a court proceeding.
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