My mom's KH was built last year with a loan from WTS. She was talking about a letter to all congregations with loans from WTS. The letter was asking the publishers how much they can pay towards a refinance. Is this correct? Anyone else hear about something like this recently? This is in the U.S.
Is the WTS "refinancing" KH loans?
by doinmypart 21 Replies latest jw friends
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sir82
That doesn't make sense. The WTS stopped charging interest on KH loans about 5 or 6 years ago.
How do your "refinance" a 0% loan?
Maybe they want their money quicker? Pay it off in 5 years instead of 10?
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Diest
I could see them changing the terms of the Loan....Get their money back faster.
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doinmypart
Yeah, I forgot about the zero interest. My mom said "refinance" but could have meant "early pay off". The publishers had to fill out slips of paper telling how much they could pay each month (even though they did this before the loan was taken) and they have to do this annually.
I can't see the WTS reducing the loan payment or "forgiving" the loan altogether for congregations having trouble paying the loan...or would they?
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outsmartthesystem
I recall less than a year ago.....something like this going on at my congregation. I missed that meeting....but all the publishers were putting down "confidential" numbers of how much they could contribute. I didn't pay attention to what it was for.....but now I wish I had
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Gayle
Just wanting to change any terms to get money back asap is an indicator that the WTS is in trouble.
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JakeM2012
The WTBTS after the 2008--201? financial crisis sent out letters to congregations that had a loan. Basically, after eliminating interest charges in 200?, they also indicated that the according to the current congregations financial situation the congregation could lower the monthly payment.
This was the financially "softest" that I have ever seen the "Society" and I was surprised. But at the same time they were advertising selling all the properties in Brooklyn. When it was news worthy that they had plans to build outside of New York City, I personally felt this news went over with the publishers like a lead ballon. I received some funny looks from publishers when they were informed. Kinda like, if Armagedon is sooooo close why move?
The last congregation that I had any contact with wished to add some parking closer to the building for the elderly, repaint, and recarpet the hall. They had 50K. The hall sorely needed it and there were many elderly that needed more appropriate parking. By 2009, the adjacent land cost a rock bottom property cost of 70K.
The completely new regional building committee that was appointed after the death of 5 members in a plane crash in Tennessee, told the congregation that it would cost $150,000 to remodel. So the congregation came up with another $40K from dirt poor publishers for the $150K plus the 70K for the property. The congregation then bought 2 lots adjacent to Kingdom Hall property to put the parking lot on. So total, the congregation had 50K plus the 40K they came up with totalled 90K.
Then the elders informed the congregation that the RBC had "forgotten" replacing the chairs and said they needed 20K more cash. The chairs were nasty, I even privately had a professional non-witness uphostery cleaner come over to give a bid on cleaning the fabric and wanted to pay for this myself. The congregation came up with another 20K. 90K plus 20K.
The hall was "remodeled' meaning new carpet, lights, paint, an addition for a kitchen for pioneering/schools, and a 3rd school. Total cost after the fact was $350K (over twice the original estimate) plus cost of the chairs and the property.
I had discussed with an elder about my concern that the congregation was biting off more than they could chew at $150 K and it was apparent that a significant recession was forthcoming in 2008. He was moving and said nothing to the other elders.
Things may have changed since the last time I got information, but the congregation had requested lowering the payment and was still 5 monthly payments behind at 0% interest.
Evidently, the society felt like a little piece of pie is better than no pie at all. However, being in the construction estimating business, I still have a problem how with all the "volunteer" labor the material cost were $350 K plus what the publishers contributed. I quit counting because I was so mad.
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Kojack57
JakeM2012: I'm confused here, you said kichen for pioneers. The kingdom halls I'm familiar with do not have kitchens and never did.
Kojack
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sir82
Occasionally some KHs used to have kitchens. I don't think they include them any more in the "approved" RBC designs.
In the KH I attend, it's not exactly a "kitchen", but there is a small room with a microwave, sink, refrigerator, and cabinets.
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Yan Bibiyan
And if they didn't pay what is the Borg going to do? Foreclose on them and evict them? Jeez, such luck.
Stupid tools, pubs should just stop paying, the Borg owns it anyway in the end...