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.