To initiate the appointment of the Receivership, Property Receiver Services prepares and files the Receivership Petition to gain appointment as Receiver on behalf of the COA/HOA. This Receivership Petition requests the Court appoint Property Receiver Services as Receiver to manage the properties delinquent in the payment of maintenance assessments, conduct necessary repairs to protect and preserve the properties to make them habitable and COA/HOA compliant, provide occupancy for those properties and collect rents from those occupants. All Court filing fees are paid by Property Receiver Services.
The Court then schedules a hearing date for the Receivership Petition. At the hearing, the Judge will review the Receivership Petition and hear evidence that substantiates the financial difficulties facing the COA/HOA. Once approved by the Court, the Order becomes effective immediately.
Once appointed by the Court, Property Receiver Services does a complete inspection, including photos, then creates work orders for the clean-out, repairs, improvements, and replacements, which are reviewed and approved by our Licensed General Contractor. Once the rehab is complete the unit is listed to occupy. Property Receiver Services places vetted and COA/HOA approved individuals into these properties. These individuals are issued an occupancy license, in lieu of a lease, to ensure they comply with all COA/HOA rules and regulations. Property Receiver Services maintains the unit while it is under Receivership and issues quarterly reports to the COA/HOA.
Prior to removing the property from Receivership, Property Receiver Services recovers for the COA/HOA the statutory “Safe Harbor” where applicable or the entire delinquent balance. 100% of what is collected for the COA/HOA is paid to the COA/HOA. Property Receiver Services is paid separately by the First Lien Holder or Purchaser. There is never a cost to the COA/HOA. Property Receiver Services’ properties are often sold to third-party purchasers at the foreclosure auction since they have been rehabbed, maintained and occupied, permitting the COA/HOA to collect the entire delinquent balance, versus the “Safe Harbor” collected when the Lender takes back an abandoned unit.
Property Receiver Services does not function as a Receiver over the operations of the COA/HOA. Property Receiver Services works in conjunction with the Board of Directors, Management Company and COA/HOA to generate income to compensate all parties with outstanding balances. Property Receiver Services submits quarterly reports to the COA/HOA.