Court Appointed Receivership Services for Distressed Properties

A Lender’s interest in residential and commercial properties includes confirmation that an asset is managed efficiently. Sometimes, it becomes apparent that the borrower is not handling things properly, and bankruptcy may be the likely outcome. When this happens, interested parties need to take action to secure and stabilize the property. To avoid bankruptcy proceedings and the liquidation of assets, a court appointed receiver takes over.

Choose a company with the experience to step in to protect, preserve, and enhance distressed properties. The Estes Group can step in under a court appointed receivership and take over the day-to-day operations. We handle receiverships in Alabama, Mississippi, Tennessee and Louisiana. We complete an extensive assessment and look for opportunities to add value to the property. Additionally, we provide detailed monthly reports and operate transparently for all parties involved.

Understand the Basics of Court Appointed Receiverships

If you have been in the field of real estate investing for some time, it’s important to know how to work through the process of a distressed or mismanaged property. Understanding the basics of receiverships prepares you for the inevitable:

1. Definition of Receivership: When two parties who have an interest in a property experience legal trouble, the court steps in to ensure the assets are protected for whoever wins the litigation. Involved parties can include borrowers, mortgage companies, and investing partners. The court appointed receiver is a third party, neutral organization charged with looking out for the best interest of the property.
2. Typical Duties of Court Appointed Receivers: The duties vary but generally include day-to-day operations of collecting rents, managing maintenance, and renovation projects. They will also ensure the building(s) has the appropriate amount of insurance coverage and figure out ways to run the property better to increase the health of the asset. They may be able to bring new profitability.
3. When to Use a Receivership: Sometimes, a bank hires a company as a receiver when a property is about to go into foreclosure, and the borrower needs their control removed. It is also a good idea to use a receiver to replace an old management staff member with more competent management to save your distressed assets. Other times, the court will have to appoint a receivership.

Experienced Court Appointed Receiver for Your Properties

Work with an experienced receivership company that can help preserve your investment, when you contact The Estes Group. Often, your distressed property has non-paying tenants, has poorly written leases, or needs renovation. We offer almost a decade of experience and are capable of ascertaining the financial and facility needs of your assets. Then we create a strategy to maximize cash flow.

Choose a property management company that can deal with business disputes and dissolutions, enforce judgments, handle estate and portfolio liquidations, or deal with partition sales. We cover the entire scope required for the vital role of the receiver. Give us a call, and let’s discuss your needs.

Find out more about how court appointed receiverships work. Call us at 601-362-9633 or contact us online to discuss your real estate goals.