Receivership Services

What is a Receiver?

The Receiver is a court-appointed party commonly used in real estate foreclosures and business disputes to manage property during the pendency of the underlying action. Parties may stipulate to the use of a Receiver or, if the appointment is contested, a hearing will be held to determine the necessity for and qualifications of a Receiver. Once appointed, the Receiver becomes an officer of the court and enjoys a degree of quasi-judicial immunity. Though the plaintiff or his counsel typically choose the Receiver, neither the plaintiff nor the defendant - who may have stipulated to the Receiver's appointment - has any direct input in how the Receiver operates. The Receiver is in complete control of the receivership estate and answerable only to the court that made the appointment. The Receiver’s main purpose is to take possession of and to manage the receivership property’s assets.

Monthly financial reports are submitted to the court and both parties, and regular progress reports are provided to both the plaintiff and defendant. Special requests for the court's approval are made when necessary, such as capital expenditures and lease cancellations. At the conclusion of the receivership, a final receivership report is submitted to the court and the litigant parties for approval to discharge the Receiver.

What Causes Receivership?

Generally, receiverships accrue from business disputes or real estate foreclosures. On occasion, Receivers are appointed to oversee assets in a divorce proceeding. In criminal proceedings in which assets (usually a business) are jeopardized, a Judge will appoint a Receiver. In certain situations, impatient creditors can petition the court to establish a receivership.

Receivership Services

Nationwide Asset Management Group, in addition to its consulting and commercial management services, provides receivership services. Nationwide has a solid history of working as a Receiver with institutional owners of distressed properties. Nationwide has acted as Receiver for 115 properties in 32 states. In addition, M. Neal Eckard, CHA, has acted as a personal Receiver on multiple occasions. Nationwide grants complimentary receivership services when contracted as the management firm. In selecting Nationwide, lenders obtain the following complete receivership services:

  • Takeover Services: As Receiver, Nationwide’s management team appears at commercial properties with an order to take immediate possession of all real and personal assets. These assets include securing cash on property and seizing all accounts. Nationwide provides a detailed FF&E inventory and provides the courts with this information. Importantly, Nationwide stabilizes the employees for efficient takeover. Additionally, Nationwide sends notification of receivership status to franchisor, all vendors, lessees and other interested parties.
  • Post-Takeover Services: Nationwide’s management team understands that the asset’s financial welfare depends on sound operations. As Receiver, Nationwide’s ongoing duties include but are not limited to: protecting the franchise; dealing with any outstanding state and local sales and occupancy taxes; handling any pre-takeover lawsuits, claims or outstanding insurance matters; obtaining control of any deposits from utilities and/or governmental entities; and managing pre-takeover vendors and lease-holders.
  • Reporting: Nationwide, as Receiver, prepares a monthly Receiver’s report as directed by the court and issues a final accounting to the court after foreclosure.
  • Ongoing Court Appearances: As Receiver, Nationwide provides testimony for any ongoing legal issues, including but not limited to: borrower’s contesting appointment of receiver; borrower’s failure to comply with order or performance or other illegal acts; and borrower’s filing for bankruptcy.
  • Other Services: As a consulting and commercial management firm, Nationwide’s management team realizes issues may require services on a case-by-case basis. The management specialists are available to discuss special needs particular to your property.