Receivership services

Denny Heck — Thu, 05 Jun 2008 13:37:00 GMT

Have you ever heard this term? You may have in the past several months with the shift in the economy and the rise in foreclosed and defunct properties.

In these uncertain economic times, especially in Michigan, Lenders often find themselves in a position where the appointment of a Receiver is either necessary to preserve the present "value" of floundering financial investment or an absolute to keep a investment up and running, while trying to both protect the assets and improve upon and prepare for potential sale. This practice is becoming more common place to protect the lenders collateral.

In the unfortunate event that a project funded by a mortgage company or bank has exhausted all efforts and should fail, it may be necessary to completely remove the borrower's control; review and implement sound business practices and improve upon business operations. A Court Appointed Receiver is able to alleviate the lender of the day to day operations nightmares of keeping the business up and running. The Receiver will review all operations and procedures, recommend improvements or changes and protect the value of the lenders interest. The lender is consistently kept apprised of the key elements of the investment.

Just a few things a Receiver would do:

REVIEW:

operations
accounting
budget and expenditures
maintenance needs and issues
marketing plans
personnel and contractor relations
legal documents relating to real estate and/or association

PROPOSE:

operation adjustments
working budget
additional or revised maintenance needs and issues
working marketing plan
personnel and contractor changes, additions or dismissals
legal and accounting needs

EXECUTE:

oversight and guidance for proposed operations
bookkeeping, legal and accounting services
approved budget
timely and detailed reporting to investor(s)
market and sell to re-coup investor(s) interest
launch newly revised, operational development

A Receiver is a very important aspect in maintaining the integrity of the business operation.

Need more information? Contact Denny Heck (231) 313-7244.

Denny Heck - Blog

Receivership services