Move My Realty - Real Estate News

Receivers Take on Foreclosure Hassles

Some banks tired of the headaches involved with foreclosures are turning properties over to receivers, which for steep fees keep the banks’ names off the properties, pay all the costs and taxes, and handle the maintenance.

It’s hard to track down exactly how frequently this is happening, but membership in the California Receivers Forum, a trade group, has gone from 300 in 2007 to 550 today.

Beyond not having to deal with the minutia of property management, the advantage for the banks is avoiding local and state governments that increasingly are fining owners and managers of properties for code violations. In some areas, the fees are a punishing $1,000 per day.

Also, in the case of a newly developed property, avoiding taking title on a property allows banks to avoid liability for construction defects and injuries on unsecured construction sites.

Source: The Wall Street Journal, David A. Graham (07/29/2009)

Article from realtor.org