Another way the receivership remedy is utilized is through rents and profit receiverships. A rents and profits receivership is typically used when a bank seeks to foreclose, but the property is worth less than the debt it secures. When the property is underwater a rents and profits receiver can be appointed to preserve the property and collect rents if necessary. A rents and profits receiver like other receivers will perform tasks such as insure the property, pay taxes on the property, make repairs to the property, and bring the property into compliance with all applicable laws. In summary, a rents and profits receiver is another way a receiver can be used to preserve property.
Rents and Profit Receiverships