8 Reasons for CRE Receivers to be Appointed...Even if No Monetary Default Has Occurred

Posted by Charlie Dunlap on Oct 3, 2018 9:25:13 AM

Events such as a downturn in the economy, a dispute among partners, or cash flow problems caused by new market competition, can affect the viability of an income property loan.  These real estate loans may need a “workout” by the lender so that the borrower doesn’t lose its property.  During the loan workout phase, it is critical that the borrower keep in full, open communication with the lender about their cash flow situation and plans to avoid a monetary default.  When a lender is dealing with a responsible, honest borrower, the lender is more likely to work with the borrower to help them get through a rough period. 

With that being said, even if no actual monetary default has occurred, there are a number of events that could precipitate the need for the appointment of an independent receiver.  Some examples of these events are:

Read More

Topics: Receivership, Litigation