Benefits of Using a Court Appointed Receiver
May 6th, 2021
The foreclosure process can be lengthy and often the assets in question are put at risk. To alleviate the distress and devaluation of the disputed assets, the court may take serious measures. They may utilize the services of a court appointed receiver to oversee the property and make decisions that will protect and enhance its value. The goal of the receiver is to preserve and protect what they have been entrusted with. Working with a trusted receiver gives all parties many benefits while working towards a settlement.
Court Appointed Receivers – How they Add Value
When considering options for managing a distressed property, consider these six benefits of a court appointed receiver:
- Protects the Assets: The first and most important duty of a receiver is to protect the assets with which it has been entrusted. They will come in and secure, manage, and stabilize the property to prevent further damage and minimize liabilities for all parties involved.
- Preserves and Adds Value to the Distressed Property: They will follow through with a set of procedures and restrictions to protect the asset’s value. For example, proper accounting procedures may be put in place. They might also develop strategies to increase the value of the property to aid its sale.
- Timely Completion of Court-Ordered Activities: Reducing costs and the time needed to reach a settlement are another benefit of a court appointed receiver. A highly qualified receiver will be able to complete their duties quickly and efficiently.
- Reduces Liability: Each party wants to be protected, and an attorney may draft a petition that includes exculpatory language to alleviate or exempt their client from liability claims. Using a receivership neutralizes the property, especially during an upcoming sale. Because of the impartiality, parties are protected, liabilities reduced, and value maximized.
- Works for the Courts: As noted, liability is a big issue, and parties may feel overwhelmed by the legal process. Receivers lessen these concerns by essentially leveling the playing field. They have complete control of the asset, and involved litigants are put on an even footing. In short, receivers have an objective viewpoint as they oversee the disputed property.
- Increased Opportunity for Settlement: Appointing a receiver indicates the seriousness of the situation to the parties involved. The opposing party may then consider the additional costs and loss of control of the property. These issues alone may lead them to desire a quicker settlement.
Choose Experience and Expertise – Choose The Estes Group
When you need a trusted receiver, you want The Estes Group. We have the experience necessary to ensure distressed properties are cared for properly. We develop strategies to increase the value of the properties and alleviate worry while going through the litigation process. We handle distressed properties in Alabama, Mississippi, Tennessee, and Louisiana. Let’s discuss how we can help with our court appointed receiverships.
Call us at 601-362-9633 or contact us online to discuss your real estate goals with our knowledgeable and experienced investment property brokers. We’ll help with court appointed receiverships to deliver the best return on investment.