One Bidder, $10.5 Million: A Lexington Church Loses Its 20-Acre Campus to Its Bank at Auction

• Imani Baptist Church in Lexington, Kentucky, lost its property at a court-ordered auction.
• Central Bank, the lender and sole bidder, bought it for $10.5 million.
• The property, appraised at $12 million, covers more than 20 acres and includes a café and exercise rooms.
• The congregation of several hundred had worshipped there since 2008.

A Kentucky church’s home has been sold at auction to its lender after years of legal wrangling. WTVQ reported that the Imani Baptist Church property in Lexington sold for $10.5 million, and that it was unclear where the congregation would go.

The auction was conducted by Fayette County Master Commissioner James Frazier, and Central Bank was the sole bidder. The property, appraised at $12 million, covers more than 20 acres and includes a café and exercise rooms. The congregation of several hundred people had worshipped there since 2008.

The sale followed years of disputes between the church and the bank. Imani Baptist argued that it had been harmed by a poorly structured financing arrangement; Central Bank said it wanted to end its involvement because the church was in default. The report said no plans for the property had been announced.

Pastor Willis Polk said he chose “to vacate immediately” after the auction.

Church borrowing carries the same risks as any mortgage: if payments stop, the lender can take the property, and at a forced sale the price may fall below the appraised value. Jamaican congregations taking loans to build or buy should make sure the repayments fit their realistic income, not their hoped-for growth, and should understand every term of the loan before signing. It is also wise to keep a reserve for lean years, and to talk to the lender early if payments become difficult, before a dispute reaches court. A forced sale rarely achieves the best price for anyone. In Lexington, the property went for $1.5 million less than its appraisal. For lenders and investors, church properties sold at foreclosure can be large and well built, but finding a new use or buyer may take time.

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