What is a Receiver for a Default Property?

[Danielle Watson]

Hi all! I am a newbie here...My name is Danielle Watson, Director of Communications and Client Relations for David M. Frank, Court Appointed Receiver, a Commercial Real Estate Receivership and Property Management Company.

The Receivership process, usually initiated by the bank is to handle the day-to-day operations of their asset until the trustee sale or the creditor is able to reorganize under chapter 11.

The Receiver works with banks/lenders, loan servicing companies, and brokers and lawyers who have a working relationship with asset portfolio managers at banking institutions who have a default commercial property portfolio.

[Danielle Watson]

Thanks for the Welcome Mr. Perkins! Receivers can also be the middleman for a property that will go into default and therefore while they are appointed as a Receiver can assist in the liquidation of the asset for the lender. The Receiver is able to work with the broker of their choice to get the best value for the property, therefore actually finding investors. Sometimes the bank will sit on a profitable building and keep the Receiver in place until the market is better. We have been known to stay appointed on some commercial buildings for a few years.