MH Park in Receivership . . . - Posted by Reif

import · May 12, 1999, 7:52pm

Posted by Irwin on May 13, 1999 at 07:16:44:

The receivership is an activity within a state court (as opposed to a federal bankruptcy court) foreclosure proceeding. Reliable information on the status of the proceeding can usually be obtained from the attorney handling the case. A deal might be made with the owner, as in any forclosure, but you would have to negotiate a settlement with the lender. You might consider having an attorney go after this information for you because s/he’ll know what questions to ask.

import · May 12, 1999, 7:52pm

Posted by Reif on May 12, 1999 at 19:52:58:

Found a mobile home park today that might be a candidate for a rehab.

About 25% of the spaces vacant, a lot of older run down homes.

Called the management company number on the sign, it was disconnected!?

I got a number from one of the residents. The manager told me it was in ‘receivership’ and gave me the name/number of the broker handling it. I asked him what was going on, he would only say “A lot,” but for specifics, I’d have to ask the receiver.

Before I call the receiver, I need to know - what kind of event precipitates receivership? I didn’t want to call and sound like a newbie (even if I am).

If anyone has anything to ask or not ask about this property, I’d apreciate the help.

Thanks,

Reif

import · May 12, 1999, 9:19pm

Re: MH Park in Receivership . . . - Posted by DougO(NM)

Posted by DougO(NM) on May 12, 1999 at 21:19:50:

It usually means that the property has been placed with a party for the purpose of preserving the propery of a debtor pending an action against them, or applying the property in satisfaction of a creditors claim , whenever there is a danget that in the absence of such an appointment, the property will removed, lost or injured. What typically happens is that a debtor will stop paying on a mortgage, then milk the property rents, and of course not do any maintenance. Then they will file bankruptcy, drag it out, etc. That is why most mortages, and especially for income type property has a “receiver clause”

Here endeth the lesson.

The most important question to ask them is what would be required to take over the property ? What would they have to have ?

Doug

import · May 12, 1999, 9:30pm

Re: MH Park in Receivership . . . - Posted by Reif

Posted by Reif on May 12, 1999 at 21:30:25:

Thanks Doug.

So is it kind of like a foreclosure, and, oh by the way the lender gets the rents during the process?

And at this point in the process can a deal still be struck, or is the process too far down the road, or is it imposible to tell?

In other words, at what point relative to foreclosure is this process, or is it a different animal?

Thanks,

Reif