What authority do foreclosure receivers have?

A foreclosure receiver is an individual or a company that is court appointed who protects the interests of the lender in connection with a commercial foreclosure. The receiver has the authority to maintain the property making sure it is not damaged by the owner or others and runs the business.  While commercial property owners don’t normally destroy the inside of their property like residential owners do when facing foreclosure, they may not maintain the property, pay building maintenance people or employee salaries during a foreclosure.  The receiver prevents this from happening by taking control of the business and the property making sure the lender does not suffer additional losses and that everything runs smoothly until the property is sold.  After the property is sold, the court will dismiss the receiver. 

The receiver has authority to do the following:  

• Hire vendors and other maintenance people to maintain the building and the grounds
• Prevent damage to the property
• Handle day to day business decisions to run the company and the property
• Advise tenants about the receivership
• Respond to tenants regarding repair requests and other matters
• Enter into tenant leases and collect all rents
• Pay all bills including utility bills
• Pay taxes and insurance
• Hire a real estate broker to sell the property  

If you are facing commercial foreclosure, you should hire a commercial foreclosure defense attorney for advice. The attorney can help you negotiate with your lender and the receiver. A receivership is complex, and the attorney can advise you of your rights. The attorney is an expert at commercial foreclosure laws and can represent you in court.