Understanding Foreclosure: Receiver Appointed
The judge may appoint a Receiver in the foreclosure case. A Receiver is a person chosen by the court to manage the property during the case. A Receiver is often in charge of maintaining the property and collecting rent for the property during the foreclosure case.
A tenant must be notified of these changes in writing. You can learn if the property has a Receiver from the case records which are held by your county’s circuit clerk.
Within 21 days of being appointed as a Receiver of the property, a Receiver must:
- Try to find out the names and addresses of all tenants in the building.
- Give each tenant written notice of:
- The foreclosure
- The name of the Receiver to contact for repairs
- The name and case number of the foreclosure case
- Post the written notice on the property
Receivers cannot collect rent until they give a tenant this notice. If they don't, a tenant can get an eviction case thrown out of court. A tenant is still held liable for rent, so if no one is collecting rent, or a tenant is unsure about who to pay, it is important to save that rent.
Once the proper notice is given, the Receiver may collect past rent owed after they took over the property. Once the proper notice is given, the Receiver may be able to evict tenants for not paying rent.
The above article provides information about legal issues but is not the same as legal advice. Legal advice is when a lawyer applies the law to your specific situation. The information in this article does not replace the advice or representation of a licensed attorney. Law Center for Better Housing cannot guarantee the accuracy or completeness of the information in this article and is not responsible for any consequences that may result from using it. You should consult with a licensed attorney to ensure the information in this article is appropriate for your specific situation. Using the information in this article does not create a relationship between Law Center for Better Housing and you as your attorney.