Tuesday, Jan. 06, 2009

Rescue Mission may be foreclosure victim

Pastor hopes to buy property

Two facilities that help the poor in Los Baños could be left without a home.

The property where the Los Baños Rescue Mission and the Salvation Army are currently located has been in foreclosure since August, according to records at the Merced County Recorder’s office.

The buildings at 1231 Fourth St. were issued a Notice of Default on Aug. 27, according to public records. As of Aug. 22 the amount owed on the property to prevent it from being sold off was $68,548. The property, which is owned by Victory Outreach church, has been rented to the Salvation Army since September of 2007 and the rescue mission since this past July.

A representative from PLM Lender Services in Campbell said her client, University Investors of San Jose, by law could have sold the property in November. She said the property not being sold indicates the lender may be working out a deal with Victory Outreach.

The Rev. Steve Hammond, who heads both the Salvation Army and rescue mission, said he is currently in negotiations with the lender. Hammond said he was not made aware of the foreclosure until he received a notice a couple months ago.

“We’re doing what we can do to keep it going,” Hammond said of his attempts to keep his organizations at the Fourth Street address.

He said he’s hoping the city will soon zones an area where homeless services can be placed within city limits. Having a permanent location will allow the rescue mission to apply for grants. Hammond said he’s hoping to receive enough money in grant funding to buy the property.

Hammond does not have a backup plan if the mission and Salvation Army cannot remain on Fourth Street.

“It’s in the back of our minds but we haven’t searched for another location. We don’t know where we can go as of yet,” Hammond said. “There are so many different scenarios: If we can’t buy it, who will? Will they let us stay?”

More information on this story will be available in Friday’s edition of the Enterprise.

Enterprise staff writer Corey Pride can be reached at 388-6563 or cpride@losbanosenterprise.com