Glossary

Receivership

In one sentence

A court-appointed receiver taking control of a property to preserve its value during a loan default or dispute.

The longer version

When a borrower cannot or will not manage a distressed property, a lender may seek a receiver to collect rents, maintain the asset, and sometimes sell it. Receivership is a remedy, invoked when softer options fail.

The receivership file, the order, the reports, the accounting, becomes part of the loan's record and feeds any eventual foreclosure or sale.

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