Court Receiver Los Angeles | 877.755.9064 | Receivership Specialists

Court Receiver: Los Angeles, CA

When selecting a Receivership Specialists, your court receiver in Los Angeles, California, has offices in eight major metropolitan areas throughout the southwest. In 2001, Receivership Specialists was founded by court receiver and court referee Kevin Singer. Together with his business partner John Rachlin, Receivership Specialists has been appointed by the courts in Southern California, Northern California, Nevada, and Arizona, to more than 471 cases and has transitioned over $1,000,000,000.00 in assets. Receivership Specialists, your court receiver in Los Angeles, California, has led the field of court receivers and court referees in finding solutions and protecting and selling assets.

1. Petitioning the Court for a Court Receiver Often Leads to a Settlement

While on the surface there is no intuitive reason for what often happens as soon as a court receiver is appointed to a case, the simple act of appointing a court receiver sometimes leads to settlement. By petitioning the court to appoint a court receiver, you are letting all parties know that you mean business. The opposing party is put in the position of responding to your action by either settling with you or hiring legal counsel to challenge you. You are also letting the other party know that they run the risk of losing control of the disputed asset. Fear of losing the control of the asset often leads to settlement. In addition, the fear of incurring legal and receiver fees can lead to the opposing party wanting to settle.

2. Court Receivers Can Mediate a Settlement Between Parties

When disputing parties are involved in an action, they have often developed a distrust for each other and need to look to a neutral party to help resolve the conflict. Since a court receiver answers only to the Judge in charge of the case (and not the parties involved in the conflict), the Court Receiver is in a unique position to influence a settlement between the parties. In many cases, a court receiver acts as a mediator between the parties to the action. One advantage a court receive has over a mediator, is the vast scope of knowledge and experience working with the assets in question and the parties and attorneys involved. An experienced court receive is often able to obtain an expedited settlement and save both parties time and money.

3. Court Receivers Protect Your Property

When assets are under the protection of a court receiver, the court receiver will ensure their safety. An experienced court receiver will, for example, prevent the theft of copper wire or piping, electrical wires and panels, heating units, air conditioning unites, and building materials. Court receivers will also make sure the property is safe from the dumping of hazardous waste. City and county inspectors may issue costly citations if a property is not maintained or managed properly. An experienced court receiver will ensure the property is not subjected to such actions. Having the right court receiver protects your property’s structure and value.

4. Court Receivers Bring a Fresh Approach to Management

One of the first actions of a court receiver once appointed to manage a property, is to strip the opposing party of their management and control of the asset. When this happens, the court receiver will retain new management. This brings a fresh perspective and approach which often leads an increase in efficiency and profitability. The court issued order may direct the court receiver to conduct an analysis of the asset’s current management. An experience court receiver, like Kevin Singer of Receivership Specialists, will have the resources to perform the duties as directed by the court order.

5. Court Receivers Can Increase an Asset’s Value

It can take anywhere from 90 to 180 days to reach a trust deed sale following the recording of a Notice of Default by the lender. During this time, an experienced court receiver will take the necessary action to increase the value of the property. Since most investors base their offers on the condition of a property at the time of auction, an experienced court receiver will be instrumental at improving the condition of the property and increasing the value of the asset. When the asset is a business, an experienced court receiver will often be instrumental at stabilizing business operations, streamlinging business practices, and increasing the business’ revenue stream.

6. Court Receivers Can Determine an Asset’s Highest and Best Use

Part of being an experienced court receiver includes having relationships with appraisers, real estate brokers, management companies, city officials, contractors, inspectors, and other industry professionals who can assist the court receiver in determining the “highest and best use” of an asset. The condition of the property, the condition of surrounding properties, and other factors can impact the value of the lender’s investment. An experienced court receiver, when in the best interest of the client, may develop a strategy to reposition the asset to maximize the client’s investment.

7. Appointing a Court Receiver Avoids Foreclosure Liability

When a lender forecloses on a property, the legal title and the legal responsibility for all debts and liabilities is transfered to the lender. Without the help of an experienced court receiver, the lender may become the target of general liability claims, tenant claims, code enforcement citations, and EPA citations. Following the sale of the property, by the lender, there is still the potential of future legal claims by the new owners. As long as the property is in receivership, the borrower remains on title as the legal owner, helping the lender to avoid legal liability.

8. Avoid Lender Liability and Stigma of REO Sale

The sale of a property as an REO (Real Estate Owned) property can bring much lower offers and lead to a much lower sales price as compared to the sale of a property that is sold in a more conventional manner. When approved by the presiding judge and included in the court order, a receiver may be given the authority to sell the property. When this happens, the lender needn’t take legal possession of the property nor assume any liability for its sale. The court receiver will sign all sales documents in the name of the borrower and the name of the lender will not stigmatized by the negativity associated with an REO sale.

9. Maintain Property and Liability Insurance

Often times, when a property is in distress, the owner of the property (the borrower) fails to maintain the the property’s structure and liability insurance. When this happens, the lender’s collateral is put at risk. The lender usually has the right to put “forced insurance” in place in order to protect the investment. This type of insurance is limited in coverage and can be expensive. An experienced court receiver will be able to research the status of a property’s insurance and ensure that proper insurance coverage is in place.

10. Bring in Investors to Resolve Litigation

Most lenders would prefer for their loans to be reinstated, paid off, or sold, rather than have to engage in foreclosure litigation or deal with a defaulted loan. An experienced court receiver, without offering specific guarantees, will often be able to provide credibility and and transparency to potential investors. Many investors are aware that experienced court receivers handle large numbers of lender’s notes and borrower’s distressed properties. As a result, these investors look to the court receiver for a better understanding of the property and more trustworthy information than might be provided from the borrower. An experienced court receiver is able to bring about the most beneficial resolution to potential litigation.

Singer, Kevin A. (2011). Benefits of Appointing a Receiver, http://www.receivershipspecialists.com/court-receivers-benefits-of-appointing-a-receiver (accessed February 21, 2012)